The Marketing Expansion Strategies Marketing Essay

National Day is declares as national holiday, sequences of events are organized, all important as well as private momentum in the city are opened to public that is more appealing and attractive for tourists as most of the people take their families for excursion to celebrate holidays. At this time, tourists also get to support residents and get interconnect with the UAE and thus, it provide great insight into the arts, music, culture and dance of the UAE. Hence, national day in the UAE offers wide opportunities for hotels as large customer segment visits UAE in this period of celebration (National Day Celebration in Dubai ).

Target analysis:

The Emirates Palace is one of the most luxurious hotels of Abu Dhabi and iconic as the five star intent in the hospitality sector of the UAE. The company as adopted the integrated marketing communication strategy in order to develop the market and define the target audience on the following four bases.

Demographical segmentation:

The National Day celebration invites Emirati people, expatriates as well as tourists without any restriction and limitation on the basis of age, gender, social class, ethnic group, professionals and occupation etc. The event is open for all type of age groups and social class and thus, has strong factor of demographical segmentation that fulfill all the requirements of luxury and comfort of the Emirates Palace (GOO, 2008).

Geographical Segmentation:

In terms of geographical segmentation, the National Day events large market segments of population, culture as well as region because there is no restriction on the basis of demographic segments. The customer group includes Emirati people, visitors, guests, tourists and expatriates of all age group (GOO, 2008).

Psychographics Segmentation:

National Day is itself comprises attitude, value for nation, pride, self image etc and hence; it can be celebrate with different strategies and planning of activities and programs.

Positive Market Segmentation:

The Emirates Palace has positive market segmentation as the whole region is in influence of celebration and wants to enjoy the National Day so this is the again high potential market segmentation for the Emirates Palace (GOO, 2008).

Marketing expansion strategies

Ansoff’s” Product Market expansion Grid is considered to be very successful in order to determine risk factors and analyzing business growth opportunities. The product market expansion grid is based on two dimensions i.e. products and markets. These two dimensions is further analyzed and resulted in the following four growth strategies (Product Market Grid). They are:

Market Development

Market Penetration

Product Development

Diversification

Ansoff Matrix

Source: (Product Market Grid)

The Ansoffs’ expansion strategy is very useful in determining growth opportunities as in this grid, current and new products lies in the same dimension while current and new products on other dimension. The market penetration, product development, market development and product development are the four developing strategies which are developed with the two dimensions markets and products, are found to falling out of the grid. According to the Ansoff’s” Product Market expansion Grid, the management first considers and emphasizes on gaining more market share with its existing products in the current markets, this strategy is known as market penetration. Further, the management tries to develop new market for their current product i.e. market development. In this strategy, the company tries to develop new market or new customer segment for existing products (Product Market Grid).

After the expansion of the Market penetration and market development, the management can develop new products of potential interest of their current markets i.e. the management can develop product “product development”. Finally, the company will review in order to develop new products for new markets, this strategy is known as diversification strategy. Diversification strategy deals with the expansion of the products according to the requirement of new markets (Product Market Grid)

As per the analysis of Ansoff’s expansion strategy, the Emirates Palace is found to be focusing on the Market Penetration strategy i.e. the management tries to gain more and more market share with focusing on current market with their current products and services. The Abu Dhabi has wide opportunities in the current market which consists of high number of visitors, guests and tourists. As per the current markets of Abu Dhabi the Emirates Palace is more focusing on the luxury and comfort of their customers rather than making profit. Hence, there are great potential in the Abu Dhabi’s current market with their existing products as well as services (GOO, 2008).

The management of the Emirates Palace needs to analyze the marketing strategies and customers requirements and perceptions and thus, the management can adopt the product development strategies. After deep analyzing the strategies and management policies, it is suggested that the Emirates palace can develop products according to the potential of current market. The management has associate high price list with the services offering to customers, based on their products. The company can modify their products according to the requirements of the customers and can revise price list of the products. The management can also introduce new products and services with targeting middle class customers and tourists. The Emirates Place aims of high standard comforts and luxury which is of very high rates. Therefore, the company can introduce new products and rates with minimizing the cost but without negotiating the quality.

National Day is a day of celebration of all the Emirati’s People which has no limitation of demographic and psychographics segmentation. Therefore, the management of the Emirates Palace can also target to the middle class families, visitors and tourists with developing new products to the existing market.