International Marketing (M3)

CIA 3A

International marketing mix

Submitted to,
Prof. Jogi Mathew
Assistant Professor

Done by,
1920579: Roshan Joseph Jimmy
1920618: Layeq Salimi
1920620: Chandan Perla
1920672: Shrikaran Beecharaju
1920676: Manish Kumar

SCHOOL OF BUSINESS AND MANAGEMENT

BENGALURU, INDIA
AUGUST 2021
 Introduction To ITC Hotels:

ITC Hotels is India's one of the largest hotel chain with over 100 hotels based out of Gurugram,
Haryana. It is a part of the ITC Limited group of companies. ITC Hotels is regularly voted
amongst the best employers in Asia in the hospitality sector. It has a franchise agreement to
operate most of its hotels as part of The Luxury Collection of Marriott International. ITC
Limited entered the hotel business on 18 October 1975 with the opening of a hotel in Chennai,
which was renamed as “Welcome Hotel” by ITC Hotels, Cathedral Road, Chennai.

ITC Hotels has hosted many visiting royalty and world leaders, including George W. Bush,
Vladimir Putin, and Barack Obama. The hotel chain works on a philosophy of "Responsible
Luxury and each hotel in the chain has a “Leadership in Energy and Environmental Design”
Platinum rating.

Originally incorporated as Rama Hotels Pvt Ltd in 1972 and renamed Vishwarama Hotels in
1973, The Vazir Sultan Tobacco Co Ltd. bought Vishwarama Hotels in 1980-1981 and soon
after, in 1982, the first luxury hotel for the new chain opened in Bangalore. In 1984, ITC Ltd.
bought the entire equity capital from VST. In 1985 the Indian government awarded the Hotel
that would later become the ITC Gardenia a five star rating. The company name was changed
from ITC Ltd. to ITC Hotels in 1986.
The group today operates under several distinct brands:
 ITC Hotels, which has 14 hotels
 Welcome hotel by ITC Hotels, which has 20+ hotels
 Fortune Hotels, which has 35+ hotels
 Welcome Heritage, which has 50+ hotels
Each hotel celebrates the rich culture and history of the destination through distinctive
architecture, arts, crafts and rituals. Additionally, the design and architecture optimizes the
interaction with natural elements such as sunlight and air for the wellbeing of our guests and
associates.

A leading destination for holistic health and wellness, each hotel offers a range of
comprehensive services that enhance every aspect of the stay - from luxurious treatments at
Kaya Kalp – The Spa to an array of beauty services at Salon Di Wills to indoor air quality
initiatives to a comprehensive Sleeep program developed through research on the science of
sleep and more.

With sustainability being the bedrock of all operations, ITC Hotels is one of the first, largest,
and greenest hotel chains in the world to receive the coveted LEED Platinum Certification for
all hotels. Harnessing renewable energy, recycling water, treating solid waste, sourcing
consumables locally, eco-sensitive architecture & design protocols being the measures in the
journey for a brighter tomorrow.

Statistics And Facts Of The Hospitality Industry In The United Kingdom

The hospitality industry in the United Kingdom is largely represented by the country's hotels,
pubs, restaurants and leisure companies, and produces around 4% of UK GDP.

There are over 207,000 eating venues in England, and around 25% of these are fast-food
outlets. According to the British Beer and Pub Association, around 8.5 billion pints of beer
were sold, with 7.4 billion 175ml glasses of wine, and 1.2 billion pints of cider in the UK in
2018. Beer has 54 pence of duty per pint. There are around 2530 breweries in the UK.

In a September 2015 report, for the British Hospitality Association, the UK industry paid
around £41bn in tax; around half of this is VAT. The tax paid in 2014 was around £7bn higher
than that paid in 2010. Overseas visitor spending in the UK (not including international
students) is reckoned to be around £22bn.
The UK tourist industry is the 8th largest tourism destination in the world. “VisitBritain” is
responsible for tourists to the UK. In 2014 there were around 30m overseas visitors to the UK.
In 2015 the UK hospitality industry employed around 2.9m people – around 9% of the UK
workforce. By employment, it is the UK's fourth-largest industry.

The most jobs in the industry are found in London (around 500,000) and South East England
(around 400,000); 18% of workers in the UK industry are in London. There are around 1.5m
restaurant workers, and around 0.5m work in hotels. Around 25% of the hospitality workforce
comes from the EU, making up around 25% of chefs and around 75% of waiting staff.

Hospitality industry in the United Kingdom is not one of the larger industries, by GDP, in the
UK. The former Hotel and Catering Industry Training Board became the Hospitality Training
Foundation, which ultimately became People 1st on 19 May 2004; it is the industry's sector
skills council. In 2002 around eighty National Training Organisations became around twenty
SSCs. The Council for Hospitality Management Education has an international outlook.

The Stonegate Pub Company is the largest pub group in the UK, after it bought Ei Group in
March 2020 for £3 billion. It is UK's largest hotel and restaurant group, owning Premier Inn,
Brewers Fayre and Beefeater. Premier Inn was developed and expanded in the 2000s largely
during the leadership of Alan C. Parker, the chief executive of Whitbread. Compass Group, in
Chertsey in Surrey, is the largest contract foodservice company in the world.

Marketing Mix Of ITC Hotels In The United Kingdom

1. Product:
Make the company products to satisfy the needs and wants of the target market if company
products are beneficial and really great for customers they'll take interest and will share it. The
tourism being a service sold to the customers, tourist experience is the product, which is
intangible, and non-storable. The quality of the tourist experience as a product is directly
proportional to the quality of the service a tourism business provides. The product must be
designed to highlight its features and to satisfy the tourist’s needs. If the product is branded,
the customers find it more reliable.
ITC Hotels must provide different features in their hotel like suite rooms and bathroom,
comfortable double bed with duvet, remote control TV desk area, irons, hairdryer and free cot
for hire. They also offer spacious family rooms at discount prices. Customer’s satisfaction is
very important when it comes to hotel services.

ITC is a renowned brand in India and taking Indian culture to an international stage would add
a unique USP to the current service and enhance the customer experience. It’s important for
ITC to do a proper analysis of the likings of their target customers and then make cultural
changes accordingly.

2. Price:
The price of the product provided by the ITC Hotels should perfect to the current economic
position. Product prices may have to be both decreased or increased depending on the market
circumstances, by raising the price of the product the company might lose customers, falling
the products price severely also is terrible at times, it reduces the trade name loyalty.

ITC can follow a demand and supply structure in their pricing strategies and price their products
on a seasonal basis for both tourists and business travellers. This will ensure a constant flow of
revenue into the organization which will also help in relevant brand building in a new market
like the United Kingdom.

Determining the price of the product requires consideration of three key factors −
 Operating costs
 Profit Margins
 Commissions of Intermediaries

The Commonly followed Tourism Product Pricing Policies include:

 Discount Pricing: This strategy calls for reductions to a basic Price of product or
services. It is a form of sales promotion which at times proves to be rewarding for the
customers.
 Variable Pricing: pricing varies with respect to the variation in features of a product.
  Loss Leader Pricing: It is selling few products at prices lower than the actual prices.
It helps to settle the loss by attracting customers to buy more number of products.
 Promotional Pricing: It is selling a product for free with another product with the
objective of promoting the free product. Customer interest is generated to use the free
product thereby increasing the sale.

3. Place:
The buying decision is influenced by the location significantly in the hospitality industry. ITC
must choose a strategic location to run its operations or takeover and remodel hotels in such
sites. The hotel needs to do well with the place mix to attract its target customers to build a
reputed brand. The place is where the tourists visit and stay. The potential of a tourist
destination lies in its attractiveness or aesthetic value, accessibility, and the facilities it provides
to the tourists. The tourists also seek a place highly for the activities it offers, the amenities and
skilled workforce it provides, and its location.

The place is where the tourists visit and stay. The potential of a tourist destination lies in its
attractiveness or aesthetic value, accessibility, and the facilities it provides to the tourists. The
tourists also seek a place highly for the activities it offers, the amenities and skilled workforce
it provides, and its location.

4. Promotion
The Promotion of ITC is intended to inform the customers about the products, create an image
about the product, and position the products in the market. There are various effective ways of
promoting the tourism products:

 Advertising the ITC products on television commercials, newspapers, radio stations,

and websites of the UK by explaining about them detailed manner.
 The Distributing promotional material of ITC such as diaries, brochures, keychains,
wallets, purses, water bottles, pens, or any small gift item designed for promoting the
product needs to be displayed in and around their hotels in the UK.
  ITC needs to focus on Setting Point of Sale displays at various places such as retail
stores, shops, malls, or petrol pumps. And also Conducting programs of sponsorships,
or promoting products by offering them as incentives.
 Promoting tourism products in local fairs, festivals and amusement parks as UK has a
culture of partying. Also, promoting ITC products with their attractive features on the
website of the tourism enterprise.

Strategies Of Penetration Into The UK Market

What is market penetration? Well, its main point is to get into a market with efficiency and
capture a good amount of the market share. This is also done to ensure whether a product or
service would fare well in the market that it is penetrating. If the response is good, they will
proceed with launching the brand along with other marketing strategies and funding from the
board members.

With market penetration, the company or the individual who is selling the product or service
is much more confident in making the sale. Also helps plot out what the growth potential and
the revenue generation would be. The company doing the market penetration should also
implement specific plans to challenge the other products in the market and kind off match or
undercut them.

Here are some of the Tactics that is used in Market Penetration: -

1. Price Adjustment

One example of price adjustment straight off the bat is lowering the price of the product and
even going as far as losing money on the said product in order to increase sales of the said
product. This would in turn make it so that the customers get a feel of the product/service and
then enjoy using the product/service and recommend it to others and in this way would be
able to make a success of word of mouth or through the grapevine.
 2. Augmented Promotion

Companies and the people who run it have a choice of whether the campaigns would be for
the long term or short term. This depends on their budget and vision for the company.
Advertising is the most important and most wonderful tool for the purpose of increasing
brand awareness. This Should be well thought out though else it can lead to some dramatic
results. It must exceed the competition by a lot.

3. Distribution channels.

Now distribution channels are a way of getting the product in front of the customer (or
service). For example, retail stores do this to get customers more into the whole quality of
service and sale. If this is the only distribution channel a store has, the company can move
onto new channels like telemarketing, email marketing, online advertising etc. Since its
highly configurable, they would be able to target the right customers.

4. Improving products

“It does not matter, how much advertising you do on Instagram, If your content is not good,
people will click away” -Every other Instagram guru
This quote can be seen in the light of products and services as well. You can do as much
targeted marketing as you want, but at the end of the day, if the product does not hold any
value or provide any value, people won’t buy it. You would have to improve its quality and
improve its appeal. This in turn with improving the packaging would help in increase of
sales.

5. Upsurge Usage

If the marketing is done in such a way that, in one particular area, the use of that product has
shot up, it would lead to a trend in that area and would in return make it so that people buy it
(as mentioned in price adjustment) through word of mouth or FOMO (Fear of missing out).