International Marketing and Management

Word Count : 3262

Contents
Part 1: Brand Analysis...............................................................................................................2

1.1. Brand Introduction.......................................................................................................2

1.2. Brand Portfolio............................................................................................................2

1.3. Branding elements.......................................................................................................2

1.4. Brand Equity................................................................................................................3

1.5. Brand Mantra...............................................................................................................5

PART 2: International Market Analysis....................................................................................5

2.1. SLEPT Analysis..............................................................................................................5

2.1.1. Hotel and Resort Industry........................................................................................5

2.1.2. Recreational Vehicle (RV) industry.........................................................................7

2.1.3. Fast food restaurant industry....................................................................................8

PART 3: Strategy for market entry..........................................................................................10

.1. New Market entry......................................................................................................10

.2. Recommended market entry strategy........................................................................12

3.3. Intended points of parity (POP).................................................................................12

3.4. Intended Points of Differentiation (POD).................................................................13

Part 1: Brand Analysis
1.1. Brand Introduction
Tourism industry plays a vital role in the economics of different countries of the world.
Camping in the twenty-first century is strongly marked by new trends in the development of
accommodation in campsites, foremost by new demand that combines wishing to stay in the
outdoors and wanting all the comforts of home. The popularity of glamping, particularly
among the younger generations, is driving the overall transformation of classical camping
into glamping, with numerous implications for the general competitiveness of the sector
(Milohnić, et al., 2019). Glamping is the short for ‘Glamorous Camping’ which is the new
style of camping with all amenities, in many cases resort level facilities, which are not
common with traditional camping.

Furtherspace is one of the growing brand in glamping sector, with currently having
operations in Ireland and Scotland. Furtherspace was founded on 2019, and the company
operate luxury pod accommodations across Scotland and Ireland. They partners with the local
land owners, where the pods designed and manufactured by the company itself is
accommodated. The company enables land owners to start an independent micro-tourism
business, which creates economic development in the regional areas. It was estimated that
these pods can generate £40k per annum of tourism spend into the local economy.
Furtherspace has made greater popularity in the holiday rental platforms and where listed in
the Independent Fab 50 - Ireland’s Best Places to stay in 2021 (Foresight, 2021)

1.2. Brand Portfolio

Furtherspace was established on 2019, only two years before and deployed 50 pods till now
in ten locations across Scotland and Ireland. The company plans to deploy more than 500 pod
units in the coming five years across Ireland and the United Kingdom. The brand is currently
available in Glenarm Castle, Ballycastle, The Dark Hedges, Lough Erne and The Mourne
Region.

1.3. Branding elements

Accordin to American Marketing Association, “a brand is a name, term, sign, symbol or
design or comibiantion of them which is intended to identify the goods or services of one
seller or group of sellers and to differentiate them from those of competitors” (Association,
1960).
The brand elements of Furtherspace is shown in below table:

BRAND LOGO SLOGAN VISSION WEBSITE

NAME

HOME To go https://further.space/
Furtherspace COMFORTS beyond the
IN WILD ordinary and
PLACES let
customers
stay
somewhere
exclusive,
cosy and
stylish with
nature on
your
doorstep.

1.4. Brand Equity

The equity model developed by Kevin Lane Keller is a popular tool used to understand brand
equity. The Keller’s equity model aims at identifying customer perception about a brand.
According to this model, building a brand mainly consists of four steps which are:

1. Establishing proper brand identity

2. Creating proper brand meaning
3. Stimulating positive, accessible brand responses
4. Building brand relationship with customers

The below figure shows the Keller’s brand equity model:

 Figure 1: Keller's Brand Equity Model (Keller, 2001)

The Keller’s Brand Equity Model for furtherspace is shown below:

Luxury Staycations

Peaceful
Trustworthy
Staycations
Unique Locations

Innovative idea
Brand Availability
Competitive prices

Pods

Figure 2: Keller's Brand Equity Model for Furtherspace

1.5. Brand Mantra
The slogan of furtherspace is “HOME COMFORTS IN WILD PLACES” and the vision of
the company is “To go beyond the ordinary and let customers stay somewhere exclusive,
cosy and stylish with nature on your doorstep” (furtherspace, 2021).

The main aim of the brand is to make changes to the way of pod holidays. Most of the people
stay away from camping sites due to the lack of amenities it provide. Those who search for
complete comfort during their holidays or staycations won’t try chose a place where they
have to adjust a lot. This creates the scope of adding luxury to camping, which are commonly
refered as glamping. The brand mantra of furtherspace is to maximise the amenities they can
provide within the limitations of a pod. This creates opportunity for people closer to nature
and the local landowner partnership takes them to places where they have not gone or were
not possible before.

PART 2: International Market Analysis

Glamping is getting more popular day by day, where the global glamping market is expected
to reach $4.8 billion by 2025 (prnewswire, 2019). This rise is popularity for glamping is the
result of rise in demand for wellness tourism which increased the number of travellers trying
to connect with nature without compromising comfort or luxury. This forecasted rise in
demand point towards the successful future of furtherspace. Since furtherspace is expanding
their network throughout Ireland and the United Kingdom, they are also looking for global
expansion. While entering global market, they can also consider some other potential
markets, which are discussed below:

 Hotel and Resort Industry

 RV industry
 Fast food restaurant industry

2.1. SLEPT Analysis

2.1.1. Hotel and Resort Industry
Slept analysis is used to analyse a business environment. SLEPT stands for Social, Legal,
Economic, Political and Technological factors affecting the business. Here the SLEPT
analysis of Furtherspace when they enter the hotel and resorts industry is provided.

Social Factors
Social factors make opportunity for furtherspace. As per many studied, it was found that,
people’s interest on international travelling has increased. Due to the better life circumstance,
the life expectancy of senior citizens has increased, who plays a major role in international
hotel and resorts business. Since the demand for glamping mainly comes from young people,
and also from people who looks for budget staycations. But in case of hotels and resorts
industry, profit margin and brand recognition comparatively very high.

Legal Factors

The legal factors is threat for the company, which also comes with benefits. There are many
laws implemented in order to control and regulate hotels and resorts. One of them is the
innkeeper laws that ensures safety and welfare of the guests and their properties. This
guarantees compensation if any property of the guest gets stolen or gets damaged by the
innkeeper. There are several another laws which changes according to the country or area it
operates. Labour laws are also part of this. Most of these laws are created for the wellbeing of
guests, but some are for raising taxes for the government. The increased taxes and fines act as
threat and others which are made for safety and welfare of guests, creates opportunity as they
improve the hotel services.

Economic Factors

Economic factor makes a great threat for furtherspace to enter the hotel and resorts market at
the current situation. The hotel and resorts industry is one of the mostly affected industries
due to the covid-19 pandemic and the lockdowns associated with it. There is economic
slowdown in many parts of the world which makes people to save money rather than
spending it. Along with this there is travel bans in many parts of the world. Entering into a
new market, especially to the hotel and resorts industry is on high risk category. In addition to
this the fluctuation in international exchange rates also affects the performance of the
company. Thus effective risk analysis and mitigation techniques should be conducted before
entering the market.

Political Factors

Political factors are threat for the company. The major political factors that affect
furtherspace are international relations, terrorism, conflict between nations, political climate
of the operating area etc. If there is no political risks in the operating region, it act as an
opportunity since it attracts more tourists. Along with this travel bans to certain countries or
from certain countries, can result in reduce of potential customers from that countries. All
these factors an affect the company.

Technological Factors

Technology is everywhere. The evolution of technology have changed many aspects of the
hotel and resorts industry. Before technological implementation, hotels and resorts where not
that transparent as most of their information where not available to the public. In the present
scenario, technological factors can make both threat and opportunity for the company,
depends on how they use it. Due to the increased involvement of the internet, people are
getting enough opportunity to choose from wide range of options. Social media also plays
vital role since it provides a platform for people to convey their opinion regarding the
products and services they get from the company. This can improve the reputation of the
hotel or degrade it. Since furtherspace is currently operating on websites only for their
bookings and other services, it will be much easier for them to cope up with the new systems.

2.1.2. Recreational Vehicle (RV) industry

According to the report form Zion market research, it was found that the global Recreational
Vehicle market was valued at around $38.48 billion in 2017 and is expected to reach $64.25
billion by 2024, with a CAGR of 7.6 % from 2017 to 2024 (Intrado, 2019). This shows the
scope of RV industry, where furtherspace can perform better. The SLEPT analysis of
furtherspace regarding Recreational Vehicle industry is shown below:

Social Factors

Recreational Vehicles is getting more attention in United Kingdom due to the increased trend
in road trips. Many are considering traditional travelling and staying at hotels as outdated,
and due to this intention to try for new things, the RV industry is going to see a boom. Thus,
entering the market at the earlier stage will make it an opportunity for furtherspace.

Legal Factors

There are many legal factors regarding the RV industry. Some of them are leasing land,
vehicle registration laws, land ownership laws etc. While entering into the RV industry, these
threats can be turned into opportunities by proper following of rules and regulations. Since
many people are staying away from RV due to the legal complications, making it convenient
can attract more customers, which is opportunity for furtherspace.
Economic Factors

The economic factors is a threat for furtherspace Recreational Vehicle market in the current
scenario. Due to the covid-19 pandemic and lockdowns associated with it, most of the tourist
places are closed. Since most of the potential customers use RV for touring rather than living,
the scope of RV at present condition is low. This makes economic factor a threat fro
furtherspace.

Political Factors

Political factor creates both threat and opportunity for the RV industry. The major political
factors affecting the RV industry is conflict or tension between neighbouring countries,
political stability of specific regions, terrorism etc. Considering the case of Europe, many of
the RV customers travels to neighbouring countries. This makes it opportunity if there are no
issues with the neighbouring countries and will be threat if there is.

Technological Factors

Technological factors are opportunity for the RV industry. Social media plays a major role in
creating trend for RV life. By seeing pictures or videos of people using RV, by interacting
with them and by getting more information about it, all helps people to get more attracted to
RV life. Along with this increased amenities in the RV, using satellite technology is also part
of the technological opportunity. But when there is increased competition in the market,
ineffective management of internet can also make it threat, since people starts to express their
reviews through the same channels.

2.1.3. Fast food restaurant industry

The fast food restaurant industry is always competitive and have great potential for growth. If
furtherspace is entering into RV and hotels and resorts industry, it will be easier and
beneficial if they enter into fast food restaurant industry. The global fast food market is
expected to reach $931.7 billion in 2017, which is rising at a CAGR of 4.6% from 2020 to
2027 (businesswire, 2020).

The SLEPT analysis for furtherspace regarding fast food industry is shown below:

Social Factors
Social factors for fast food industry brings both threat and opportunities. There are several
factors which results in the increased demand for fast food restaurants. The increasing
population and mixed culture increases the demand for more restaurants with different
cuisines. This creates opportunities for this sector. The increased health concern among
people and change in their lifestyle due to covid-19 pandemic is making people to cook at
home and opt for healthier option. This is considered as threat for this sector.

Legal Factors

The legal factors can be considered as creating more opportunity than threat. Since there are
several laws and regulations regarding fast food restaurant industry, complying with all these
laws can eliminate the risk in future and also turns it into opportunity.

Economic Factors

The economic factors regarding fast food restaurants are the economic stability of the country
it operates. Since this industry directly linked to people’s day to day life, factors such as
income of people plays a vital role in this sector. The current scenario of covid-19 pandemic
also creates threat to the sector, since lockdowns compels restaurants to be closed due to
governmental regulations and also reduced number of customers. This can be turned into
opportunity by providing take away and home delivery services.

Political Factors

Political factors also plays both threat and opportunity roles. Since most of the restaurants
depends upon foreign population or tourists, political instability can reduce the business.
Along with this political tensions among different countries can affect the supply chain
network and thus the business. Absence of such political issues can turn it into opportunity
due to increased number of customers and thus increased sales.

Technological Factors

Technological factors have both opportunities and threat for the fast food restaurant industry.
The tech savvy ordering systems have changed the face of many restaurants with more sales
and also caused many to close their restaurants due to increased competition. Due to
increased competition in the online delivery apps, most of the restaurants are forced to reduce
their profit margin which thus act as a threat. This was opportunity for other restaurants who
opt for increased number of sales with low profit margin. The involvement of social media
also makes opportunity and threat in terms of reviews provided by the customers.

PART 3: Strategy for market entry

.1. New Market entry
England

Furtherspace is currently only available in Scotland and Ireland. The company has secured
£500,000 of funding through White rock finance’s Growth finance fund (whiterockfinance,
2021). This fund was planned to be used for growing the operations in UK and Ireland. Since
the company is already present in many many locations of Ireland and Scotland, it is
necessary to start their operations in England, to get more brand attention. Since England is
more open to the global market, entering this market can attract more customers from many
regions such as London, Liverpool, Manchester etc. Entering this market can attract more
customers from major cities of England.

United States of America

USA accounts for the largest number of tourists in United Kingdom. The data is shown
below:
 Figure 3: Inbound travel market for the United Kingdom (Statista, 2020)

From the data, the number of travellers from USA is the largest group in United Kingdom,
which shows the potential benefits of entering the US market. Since most of them have the
likelihood of visiting UK, opening furtherspace in U.S. will helps to improve the brand image
of the company among Americans, which increases brand recognition.

Asian Countries

Glamping is just new to market and the trend is not much affected in Asian market. There are
only few options available in Asian countries for pods. This increases the scope of
furtherspace in the Asian markets. Since countries like India and China have more number of
tourists due to their population, developing a trend for pod staycations can attract large
number of customers.
.2. Recommended market entry strategy
In order to achieve in the new markets, furtherspace have to use an effective and efficient
market entry strategy which is discussed below:

 Direct exporting
Furtherspace is producing their pods by themselves, which helps them to keep their
quality. This system has to be followed in the international market too. When
installing new pods in international locations, which ensures quality of products and
services. Along with pods, the amenities used by the company should also possess
same quality which helps to ensure customer satisfaction.
 Franchising
While entering markets like Asia, it is better do franchising rather than direct
operation. Since furtherspace is already making partnership with local land owners in
Scotland and Ireland, the same process will not be possible in international market.
Thus providing franchising option can reduce the investment of the company and also
reduce the efforts required for daily operations.
 Digital Marketing
Marketing plays a major role in the glamping sector. Since most of the travel
destinations and services are highly influenced by social media, digital marketing can
play vital role in the brand development in international market. Employing digital
marketing tools such as SEO, Email marketing, Google Ad words, retargeting and
most importantly social media marketing can improve the brand awareness among the
potential customers.
 Joint Ventures
While entering international market, it is better to make joint venture program in order
to reduce the risk elements regarding new market. When going for the new market,
there will be many analysis performed before proceeding with the market entry. In
some cases all these analysis and forecasting will not be effective and will result in
business failure. Business failure in some of the locations can affect the overall
operations of the brand which also affects the brand reputation. So in such cases
where there are more risk elements, joint ventures with local brands can make the
company on the safer side.

3.3. Intended points of parity (POP)

 Pod stays
 Online booking service
 Luxury glamping services
 Extra ordinary locations
 Online payment option
 Maximum stay for four people
 Mini kitchenette

3.4. Intended Points of Differentiation (POD)

 Recreational Vehicle availability
 Integrated resorts and hotels with glamping

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