Global Marketing

Introduction and Company BackgroundTesco PLC is the too largest British retailer in cost of some(prenominal) planetary sales and ho map servant commercialize shargon with profits that exceed ? 3 billion. Currently, the all last(predicate)iance is the troika largest after Wal-Mart and Carrefour in terms of revenue but save second to Wal-Mart in terms of profits. The party has diversified its merchandise print into clothing, food, financial services, drink, home, car insurance, telecoms and puff upness. Jack Cohen founded Tesco PLC in 1919 in East capital of the coup direct Kingdom and the golf-club has grown over the years and now has a 30.9% foodstuff sh be in the joined Kingdom which authorizes it the largest retailer in the UK (Applegate & Johnsen, 2007, p. 128). The onus fear of the smart set is large format food stores and other(a) toilet facility items. It canvas to its under four banners namely, Extra, Superstore, Metro and Express. This report ana lyses the critical merchandise issues that is veneering Tesco PLC. It ordain explore the globular merchandise strategies macro instructioncosm pursued by the gild and attempt to draw comparisons amid its approach and appropriate abstractive concepts and models. The study leave alone wish wholesomewise evaluate whether the model macrocosm apply by the play a hanker is lock away relevant in the current marting practice or non. The study volition rely on the succeeding(prenominal) methodology in the out air travel.External surroundal outlineTesco Plc ope place in an effort that is dominated by two other companies in the field(a) business surround. Its main competitors ar Wal-Mart and Carrefour who control a spacious old bag of loyal customers. The outdoor(a) environment will be analysed using the STEEPLED model in dedicate to assess the ethics and demographic computes in the analysis.Political FactorsTesco Plc now ope evaluate in atomic number 63, Asia and northerly America and as oft(prenominal)(prenominal) its performance is a function of legislative and semipolitical conditions of every(prenominal) the countries it ope range in including the European Union. The guild is makeed by employment legislations as virtually governments encour season retailers to provide mixed hire out opportunities from low paying un practiced to the well paying high skilled jobs (McLoughlin & Aaker 2010, p. 53). The trading operations of the friendship be therefore highly rude(a) to the political environment. For object less(prenominal)on in Malaysia the government passed legislations that limit the number of stores the ships play along shadower operate in the countrified. Tesco Plc employs the local people especially at the set about and ticker management aims, pays taxes and complies with the local laws to ensure that its operations be not hindered by such(prenominal) factors.Economic FactorsThe economic factors make believe the costs, subscribe, prices and profits of Tesco Plc. High unemployment levels and problematical economic times contracts the ability of ho useholds to purchase products and as such affects the demand required for the ships company to produce such goods (Pradhan 2009, p. 88). The company cannot control such external factors but they apply profound impacts on its performance and the merchandise mix. It is still highly depended on its core business in the United Kingdom and as such any economic slow trim backs in the country can grossly affect it because it is exposed to the risks of food market concentration. It is for this reason that the company is wayed on gro shape upg its presence in the supranational market in fix up to raise its revenue base.Socio-Cultural FactorsThe British customers have progressively developed to a greater extent preference for iodin stop bulk shop because of a variety of genial changes. Tesco Plc has therefore emergenced the amount of non-f ood items in its stores so as to be fitted to take advantage of the opportunity. The company also offers a wide of the mark appreciation of products that cater for the different several(a) needfull of people of the customers. Attitudes, beliefs and kindly conditioning often occurrence(a)ise the go through of goods and services demanded by the consumers (Richter 2012, p. 61). Additionally, the consumers argon increasingly sightly aw atomic number 18 of their health issues which change their attitudes towards food. Tesco Plc has had to adopt its selling mix in order to carry the increased demand for organic products. It was also the first to allow customers to make payments using cheques and cash at the checkout.DemographicsThe demographic changes in the UK population alike aging population and more(prenominal)(prenominal) female workers mean that there is a decline in home meal preparation in the country. The company has increased food supply in its stores in order to replete the needs of such customers. The said(prenominal) approach is replicated in its international stores as it provides the local foods like whale meat in Japan and other foods in Malaysia and South Korea (Cunningham & Harney 2012, p. 90).Technological Factors umpteen products of the company have of the company have been influenced by technology. Technology is therefore a major macro environmental factor that benefits both the company and the customers (Baines et al 2013, p. 77). The customers argon satisfied through and through more personalised and convenient shopping succession the company benefits through the do workation of an efficient supply arrange.Environmental FactorsCompanies atomic number 18 currently facing increased compact to acknowledge their responsibility to the society. The companies are required to operate in a way that benefits the society (Bradley 2005, p. 33). Tesco has been acc apply of selling genetically modified foods to children. The snap of the corporate social responsibility of the company is to admit with regulations and its corporate regime policy.Legal FactorsTesco Plc is required to comply with the different policies and legislations of the countries in which it has operations. For poser in Malaysia it go about restrictions that limit its working out in the country. The company has razeed the prices of most goods to comply with the price policies of different countries in which it has business operations. Internal Environmental AnalysisAlthough Tesco PLC has operations in different countries crosswise the world, its core operations are in the United Kingdom which accounts for over 60% of its sales. This study will use different theoretical models in analysing the external environment of the company. The company perpetually upgrades its ordering system, in- store processes and vendor list to change the capability of its operations. It uses selective information technology to maintain its low priced l eadership approach to supply chain management. The EPRG framework will be used to analyse Tesco PLC foreign marketing involvement. The company has to re-orient itself and align its operations to fit into the different levels of operational activities that a particular market segment requires. The EPRG framework assesses four types of orientation of a firm towards foreign marketing. It is very useful in assisting companies asses and determine their operational strategies as it relates closely to the marketing mix. The strategies chosen by the company for each vari adapted determines its overall operational strategy. The table below shows the EPRG analysis and marketing mix of Tesco PLC.ProductThe products of Tesco PLC are a mix of ethnocentric and regiocentric. The products that the company sells do not fit into all its market segments. Instead it sells products that are suitable for the respective contributions in order to maximise sales (Thoenig & Waldman 2007, p. 111). The inte rnational expansion of the company takes into account the different tastes of the respective market segments. For instance it devoted a very big attention to the needs of the customers while venturing into the central European market as is reflected in the product line (Glowik & Smyczek 2011, p. 117). In the Czech Republic the company concentrated on providing the Czech products through retail shops. The homogeneous goes to chinaware where the local consumers prefer purchase live fish and turtles and other instant noodles unlike in the European market. Tesco PLC had to provide these products to the Chinese market in order to appeal the Chinese customers. The other example is in Tailand where the company had to adapt to the shopping habits of the Thai customers by introducing the fresh market hall to serve the interests of these customers who spent a huge proportion of their income on fresh foods. These new adjustments were introduced by the company to help it penetrate the new markets because some of these provisions are not available in its operations in the United Kingdom. The website of the company is also translated into the languages of the specific market segments to ensure that the prospective and existent customers get the latest information on the products on sale and offers if any. The other aspects of the company like online marketing and sales are consistently available in all the market segments.PromotionTesco PLC uses a mixture of both ethnocentric and polycentric promotional strategy. Although most of its promotional activities are those used in the United Kingdom, it also utilises the needs and characteristics of the particular market in formulating its promotional strategies (Humby et al 2008, p.68). For example Tesco PLC implemented a reinforced plan for addressing parts of its offer to the customers in Thailand. The measures include remerchandising of its clubpack range of bulk products. It particularly targeted the small traders who shop regularly with the company. other example is Poland where the company is launching a turnaround plan to improve its presentation of fresh food and is even introducing new concepts like bistro dine in order to differentiate itself from competitor (Gunn 2009, p. 139). These plans are in some slipway similar to the build better Tesco strategy being used in the United Kingdom but are a bittie adjusted to outdo serve the interests of the local market.PriceTesco PLC pursues a predominantly polycentric pricing approach in its international markets. The company attempts to organise its marketing activities found on the specific countries of operation (Humby et al 2008, p. 198). It treats each country differently and formulates strategies that suit the specific local needs of the consumers. As such the prices of its products qualify across different market segments depending on demand, income levels and demographics. For instance having had a knockout time in Ireland, the com pany launched pricing initiatives aimed at combating discounters and counter the reduce prices offered by its competitors. The company subjugated the prices in the stores particularly those close to the Irish border and has plans of extending the same to the rest of its stores in the country in the long run. The same low pricing strategy was also used by the company in Malaysia in order to attract more customers. In the other markets like England and Poland the prices are a little high because they are sustainable for those market segments. In essence, Tesco PLC tries to ensure that the products and their prices fit into the demands of that particular market segment in question.PeopleThe management orientation of Tesco PLC has segments of both geocentric and polycentric influence. The global expansion of the company has been accompanied by teams that focus on both global and local markets. Its international expansion strategy has mainly been through joint ventures with the local partner firms in order to be sensitive to the needs of the local markets (Maynard 2013, p. 33). The company retains the employees of the partnering firms and continues with the approach of employing the local people because they are well drived to serve the needs of the local consumers. These local staff office are maintained by the company especially in the middle and low management positions because they are better placed to serve the needs of the local market than the foreign expatriates.Place and ProcessThe process of Tesco PLC is a mix of polycentric and geocentric. The company has adopted a global approach in some of its operations as it has designed its value chain in a path that ensures that it minimises its operational costs. For instance when it came apparent that it was critical to reduce the prices of products in its stores in Ireland, Tesco PLC decided to drop its suppliers in the country in preference for lucky ones elsewhere. The management of the company has es tablished its distribution channels to facilitate the forepart of its products across the different officeal and national markets (Zentes et al 2011, p.173). The process of the company also has some elements of polycentric approach because it uses some strategies based on particular countries. For instance in Asia it treats all the countries differently based their product demands are different making it impossible for the company to use the geocentric approach.As such it acquires the products from the local suppliers and uses local marketing channels for serving the needs of that particular market segment. The polycentric approach has helped the company penetrate into difficult markets like Malaysia, China and South Korea as these countries have material political, economic and cultural differences with the United Kingdom (Zentes et al 2011, p. 45). The products of the company are sold in its stores which it rents in the major malls and shopping centres whenever it finds space or builds its own stores in fibers where that is the best option for the market segment. The place can be said to be polycentric because the products are mostly in the big cities where there are some consumers with the ability to buy its products. The polycentric approach enables the company to strategically position itself in the markets in order to reach as many customers as possible.Proactive marketplace ResearchThe uses a polycentric approach in research and new product result because the needs of its customers in the different market segments are very divers(a). In addition to this, some market segments like the American market have big industrial players like Wal-Mart who have a large base of loyal customers making it difficult to venture into such markets with an ethnocentric approach.Proliferation of the BrandThe products of the company are standardised around the world to ensure that they are unadorned and meet the required company standards.TOWS ANALYSIS of Tesco P lcThe TOWS analysis will be used to analyse both the internal and external factors in order to provide a holistic view of the position and direction of the company. The figure below shows a combination of the TOWS analysis that combines the DEEPLETERS analysis with the competitive advantages and EPRG model. intrinsic STRENGTHSO Strong global defect and high brand pictorial matterO Strong core UK marketO Strong and changeless suppuration in AsiaO Financially soundO cast of products to appeal to different consumersINTERNAL WEAKNESESOEthnocentric reliance on the UK marketOStagnant or disallow sales in some developed countriesOHigh price elasticity referable to competition and low costs of customers switching to other brands and loyaltyOResistance to large firms in some countries outside OPPORTUNITIES SOOContinue entering appropriate markets across the globeOContinue building on cost efficient pricing to attract more customersOGo into new markets and buy local retailers to gain market shareWOOExplore ways of reducing their operational costs in order to reduce prices for the consumersOIncrease the efficiency of its business process and supply chainOCapitalise on the opportunities present in the developing world by rise more stores there EXTERNAL THREATS OIncreased competition from other well established brandsOPolitical and legal opposition against expansion in some economiesOContracting consumer expenditures in Europe that reduce the demand for the non-basic goodsOEconomic reforms whitethorn threaten multinationals like the finances and operations of Tesco Plc ST ORemain ahead of its competitors in terms of research and innovation in order to give the customers what they wantOContribute to the society in which it operates to limit the political and legal barriers that inhibit its growthWT OIncrease the awareness of the brand through advertisementOWithdraw from the markets that are not performing well and use the funds to support other operations of the company The above analysis reveals that the company is on the right path as it has enacted mechanisms that will help it capitalise on its strengths and address its weaknesses. For instance the company has closed some of its international businesses that are not performing well like in the United States to reduce on loses. The company has also increased its operations in China and is focused in strengthening its presence in the emerging economies in Asia. Additionally, it is employing more local people and complying with the local regulations to reduce opposition against its operations in some economies.Opportunity IdentificationAnalysis of opportunity identification will be done using the BCG Matrix. The Boston Consulting Group Matrix (BCG) is classical in analysing how companies allocate resources (Maynard 2013, p.81). The matrix splits the products of the company into four categories that determine how much money the company should invest in them. The categories are as fo llows funds cows should be used by the company for profits as much as possible Stars should receive enthronisations so that they become the undermentioned cash cows Dogs have low share of market growth and should be sold as they depress the performance of the company hesitation marks have low share of high growth market and have the potential of becoming necromancers or dogs.The high street shops of the company are the cash cows. Tesco Plc has approximately 30% of market share in this division although the growth of the division has been very slow. The online operations of the company are the champs. The company is the largest online grocer in the United Kingdom. Tesco Plc should make more investments in this orbit to improve its online offering because e-commerce is ripening speedyly. The question marks of the company include video on demand service and blinkbox which face high competition from the big industrial players. The company should decide on the appropriate level of investments needed for turning this division into sentience. The Fresh and Easy operation in the United States was a dog and that is why the company decided to draw out of the country.Positioning/ targetingThe targeting strategy of Tesco Plc includes people of all ages and it offers a wide range of products to meet the demands of the customers. The company focuses on the specifications of products that are close to those of the rival companies in order to try and win customers from such companies. For instance it offers fresh and ingenuous goods because people spend more money buying fresh products. In addition to product specifications, the company also prices its products fairly to attract more customers because households are very sensitive to price.ConclusionThe findings of this study reveal that the strategies being pursued by Tesco Plc in its international expansion are in line with strategic models. The company identifies the opportunities present in the business environm ent and then devises the strategies for exploiting them. It has also adopted entry strategies like joint ventures and acquisitions for expanding into the international market. Such approach has helped the company expand its distribution network and win over the local markets by giving the customers a local approach. The company has also closed down the international businesses that are not doing well in the United States and Japan to reduce on loses and help it focus on other profitable markets. The company mustiness continue to exploit the potential emerging markets and also looks for mechanisms of outdoing its major competitors.ReferencesApplegate, E., & Johnsen, A. (2007). Cases in advertising and marketing management Real situations for tomorrows managers. Lanham Rowman & LittlefieldBaines, P., Fill, C., & Page, K. (2013). Essentials of marketing. Oxford Oxford University Press.Bradley, F. (2005). International marketing strategy. clean York FT/Prentice Hall.Cunningham, J., & Harney, B. (2012). Strategy & strategists. Oxford Oxford University Press.Glowik, M., & Smyczek, S. (2011). International marketing management Strategies, concepts and cases in Europe. Mu?nchen Oldenbourg.Gunn, M. (2009). Trading regime analysis The probability of volatility. Chichester, England Wiley.Humby, C., Hunt, T., & Phillips, T. (2008). Scoring Points How Tesco Continues to Win node Loyalty. London Kogan Page.Maynard, J. (2013). Financial accounting, reporting, and analysis. Oxford Oxford university pressMcLoughlin, D., & Aaker, D. A. (2010). Strategic market management international perspectives. Hoboken, N.J Wiley.Pradhan, S. (2009). Retailing management school text and cases. New Delhi, India Tata Mcgraw-Hill Education Pvt. Ltd.Richter, T. (2012). International marketing mix management Theoretical framework, contingency factors and empirical findings from world-markets. Berlin Logos.Thoenig, J.-C., & Waldman, C. (2007). The marking go-ahead Business success and societ al embedding. Basingstoke England Palgrave Macmillan.Zentes, J., Morschett, D., & Schramm-Klein, H. (2011). Strategic retail management Text and international cases. Wiesbaden Gabler. Appendix Ethnocentric Polycentric Regiocentric Geocentric EthnocentricProliferation of the Brand Promotionproduct Polycentric Price / place/ Proactive Market Research Regiocentric Geocentric People / process globose MarketingFairmont Hotels and Resorts (Fairmont) is operating and competing in the hospitality industry, which has been affected vastly by the impact of global financial crisis, terrorist attacks, globalisation of the hospitality and tourism industry, the misgiving surrounding the sovereign dept of some countries in EU, development of emerging markets, the rapid dissemination of global lifestyles and other economic and political uncertainties in the one-time(prenominal) few years.Fairmont is also affected by technological innovation as well as other broad macro environmental trends. This screen will examine the most recent trends of global macro environmental factors that are believably to have the most significant impact on the hospitality industry and more precisely on Fairmont Hotels and Resorts. First a brief overview of the Fairmont and its position in a current international hospitality market will be given. After this the nature and impact of global macro environmental variables will be explored.Company history Fairmont Hotels and Resorts (Fairmont) is the largest of the brands in the Fairmont Raffles Hotels International group and by combing three intelligible brands the Raffles, Swissotel and Fairmont portfolios and has become a truly global hotel company with 91 hotels worldwide. more than than 65 hotels of Fairmont in Canada, United States, Europe, Asia, Middle East and Africa, and Mexio, Carribean and Bermuda, sit between the upper scale and luxury travel market.They also have one of the largest collections of storied properties in the world with wel l known addresses in the portfolio including The savoy in London, the Fairmont Banff Springs, and New Yorks The Plaza. The average age of the guest is 47, down about 8 years in the last decade. Fairmont hotels target diverse market segments, for example Fairmonts clientele has been split approximately equally between group (above 45%) and transient business (around 55%), and almost evenly between blank and usiness travellers.However, their core customer is the luxury mid-aged traveller. Fairmont hotels are one-of-a-kind properties where sophisticated travellers can discover culturally rich experiences that are veritable to the destination. Situated in some of the most exclusive and pristine areas in the world, Fairmont is committed to responsible tourism and is an industry leader in sustainable hotel management with its award-winning Green Partnership program. What are global macro environmental variables?As Doole and Lowe (2008) state The environments in which international co mpanies must operate is typically characterised by uncertainty and change factors which, taken together, increase the element of risk for international marketing managers. As many authors argue the global macro environmental factors are something beyond the companies influence, and must be hard-boiled as non-controllable variables.The five major global macro environmental factors, as denoted by Lancaster et al. (2002), Kotler et al. 2005) and Reid and Bojanic (2010) among the other authors, marketing managers often examine and which affect all organisation are demographic, economic, political/legal, socio-cultural and technological factors. However, Lancaster et al. (2002) suggest if businesses are able to identify and react to these factors quickly enough they would be able to be part of changes occurring and take market jumper lead position instead of being forced into market followers position or worst case being unable to prosper and stomach as an international business in t he global competition.Yet the macro environmental variables as suggested by mainstream theorists (Lancaster et al. 2002, Kotler et al. 2005, Doole and Lowe 2008, Kotabe and Helsen 2008, Palmer 2008, Reid and Bojanic 2010) needs to be managed through marketing planning process threats must be minimised and opportunities maximised. For Fairmont, as an international hotel the issue to keep in heading is that hospitality industry is in a fast moving environment as well as their product they sell is perishable when contemplateing changes in marketing strategy or tactics.Thus they face more intricate and changing environments where they operate and compete than other industries. In order to survive and prosper, the essential is to take account of, and adapt to, fast changing environmental conditions. To see and take advantage of marketing opportunities while at the same time anticipating any threats to their business. By indentifying environmental trends soon enough, management should be able, at least in part, to anticipate where such trends are leading and what future conditions are likely to result from such changes. (Lancaster et al. 2002, Palmer 2008).Explain how changes in the socio-cultural environment affect marketing decisions The UK population will rebalance by 2015 families will be the most prevalent group, and the retired will have increased in number fastest. One-person households are set to increase fastest into 2015, following(a) the trend witnessed into 2010. emerge markets where social exposure and status are valuable along with the rising income and relatively wealthy middle class. Mainly affect young people who have an above average need for social acceptance, and international travellers, who are exposed to multicultural values.Fairmont target market age group younger than used to be . Embracing social media is a key way to reach customers. We could never have predicted the explosion of social media, Laboy said. And yes, you can have meani ngful customer engagement via Twitter. Hoteliers need to consider mobile tagging as a way to offer promotions to customers, he said. honourable challenges and the Green movement On one hand provides opportunities to connect to customers and employees. On the other hand Western consumers choosing brands look for reassurance that the product has been produced in what they see as a socially responsible manner.On the basis of ensuring products and ingredients came from received source of supply which did not leave to the destruction of the environment and that they are free from child slavery and that the people that make them are able to earn a proper living wage. Consumers globally are becoming better informed through better education and faster and more effective communication. Now firms are increasingly expected to ensure that their demeanour is honorable and in the interests of the global community which makes up their market.However, international marketing executives operatin g across cultures will find themselves facing moral and ethical dilemmas on a daily basis on a wide range of issues. Some of those currently receiving particular attention are bribery and corruption, counterfeiting and piracy. Explain how changes in the economic environments affect marketing decisions The international hotel industry has shown signs of retrieval in the first half of 2010 according to the bi-annual hotel keep an eye on conducted by Hogg Robinson Group (HRG).HRGs interim survey is based on a combination of industry intelligence, actual room nights booked and rates paid by its UK clients during January to June 2010 compared to the same period in 2009. Globally, the hotel industry has shown signs of recovery in the first half of 2010 when compared to the same period in 2009. Although the survey reveals a fragmented global picture, the hotel market in Europe and the US appears to be stabilising, as rates are either flat or only marginally down. The emerging market econ omies of India and China have shown strong upturns in growth over the last six months.Year-on-year economic growth in Q2 2010 was 7. 9% and 10. 3% in India and China respectively and the resurgence in economic activity has helped to prop up room rates. step-up in both economies will begin to ease over the next year as central banks begin to raise interest rates to address inflationary pressures. In contrast though, the Middle East region recorded the highest rate decrease, with forficate digit falls in the UAE, Bahrain, Qatar and Oman. Many western economies are coming to terms with the cipher cuts necessary to reduce sovereign debt levels which will inevitably soften room rate growth. kinetic emerging economies have less need to take fiscal ascesis measures in the current climate and we expect growth to be higher as a result. However, the survey shows that emerging economies have not, as of yet, fully recovered from the effects of the global economic downturn. In the UK, growt h prospects are buoyed by a weak sterling which continues to support tourism and leisure travel. In addition, the ongoing recovery of the banking and finance sector will fetch to corporate demand for rooms.There are, however, significant downside risks to growth in the market emerging from future cuts in public spending Belfast and capital of Red China both suffer from an oversupply of hotels, the latter having experienced massive investment in recent years from major players keen to build a presence in this emerging market. Bangalore, a city reliant on business travel associated with the IT industry and call centres, is a classic example of a market popping as it has seen rates fall as a result of a drop in demand payable to the global recession coupled with significant new hotel openings which have led to a current oversupply of rooms.Services apartments have grown in popularity and some of the IT industry has relocated to other areas in India. The 5 star market achieved a margi nal increase of 1%. Whilst there has doubtless been a trend for corporates to turn to the 4 and even 3 star sectors in the current climate, hoteliers in this sector have held out for rates at the expense of lower occupancy levels, conscious that any significant rate reduction has an adverse effect on service levels as costs are brought in line, resulting in damage to a hotels reputation for quality and standards.Reflecting the need for cost reduction, clients are downgrading between the star ratings as well as continually reviewing their programmes and renegotiating rates where possible. In the 3 and 4 star markets average rates have decreased as suppliers strive to maintain their share of the corporate market. We continue to believe that budget options are not always the cheapest option when the add-on costs are taken into account. Mintel The UK officially exited recession in the fourth draw off of 2009. gross domestic product rose 0. 4%, subsequently increasing 0. % in the first quarter of 2010 then 1. 1% in the second quarter. While fears of a double dip recession have eased somewhat, consumer confidence has remained weak as Britain has entered an age of austerity.Economic growth in Europe system weak relative to other regions Euro zone GDP grew year/on/year by 0. 6% in Q1 2010, compared to growth on 1. 2% in Japan and 2. 7% in the US over the same period (Hogg Robinson Group 2010). Global hotel sales are expected to increase 30-40% in 2011, according to hotel investment services company Jones Lang LaSalle Hotels. 009 was characterised by stock-still liquidity, stalled transactions and drops in hotel performance and values globally, this year signalled a striking improvement, with more opportunities for buyers. The number of hotel sales is forecast to continue to rise comfortably in 2011, reaching a value of $28 billion (? 18 billion) to $30 billion (? 19. 3 billion). ASPAC has seen strong growth this year. However, overbuilding in Abu Dhabi and Dubai are dragging down levels in the Middle East and Africa. Every region except ASPAC saw a rise in September, but a dip in October. ASPAC remained strong in October.ASPAC is one of Whites bright spots. She sees that market growing by 10-12% in 2011. Other areas showing strong growth this year are Sao Paulo, Mexico City and Rio de Janeiro. She sees occupancy will increase by 3-5 %, ADR by 4-5% and overall RevPAR by 6-9%. Looking at specific RevPARs, ASPAC will increase 10-14% Europe, 7-9% the Americas, 6-9% and the Middle East and Asia, 3-6%. VAT Emerging markets Fairmont regional growth is driven by Middle East markets such as the UAE, Egypt and increasingly Saudi Arabia, as well as growing numbers of Gulf travelers that stay at its properties in the United States, Europe and Asia.The Middle East, despite being impacted by the global downturn, still shows resilience over the past year with revenue dropping less than other regions, industry figures showed. Saudi Arabia has a large cri tical mass, huge influx of travelers, the built in demand drivers, and it helps us support our partnerships with our shareholders. It is the worlds top oil exporter, is developing its tourism sector to lower dependence on oil and hosts an estimated 10 million Muslim pilgrims every year. The 14 planned hotels will be all under the Fairmont brand.Fairmont is likely to also add hotels in Qatar, the worlds top exporter of liquefy natural gas, whose economy is booming and hosting World Cup in 12 years time(Walid 2010) Explain how changes in the political/legal environments affect marketing decisions Identify the major trends in the firms technological environments Broadband penetration continues to increase, even amongst the groups already most likely to have access. 200 mph train from London to Frankfurt arriving in 2013 + opening new markets bringing closer international trade In a world moving more and more towards globalization, hotel organizations ill need to make pass more quickl y, operate more productively, offer their employees greater opportunity and huckster their customers enhanced benefits.Those companies that address these issues today will be better ready for the global marketplace of tomorrow. Conclusion Fairmont competes in the strongly competitive hotel and live industry, focusing on the first class and luxury segments of the markets. Fairmont is impacted by change in the overall travel, tourism and hospitality industries as well as broader macro-environmental trends.Bibliographyhttp//www.amadeus.com/amadeus/goldrush2020.htmlhttp//www.arabianbusiness.com/ fairmont-sees-14-more-hotels-in-mideast-by-2014-184514.html