There are different ways companies can use to enter and operate in foreign markets. Different market entry strategies work for different companies. In some companies, direct export may be the best option, whereas, in other markets, you may have to set up joint ventures, while in others, licensing manufacturing may be the most appropriate. A broad range of factors influence the choice of strategies chosen by different companies, including but not limited to the level of adaptation required by the products and services, tariff rates, transportation, and marketing expenses. In the beginning, the companies have to endure high setup and operational costs, but as time goes by and the business picks, the sales may offset the expenses incurred. The modern hotel sector is very competitive ( Chepkwei, 2021) . Conducting extensive market research to understand your ultimate consumers is vital. The company should have a thorough understanding of its impactful market segments, including demographics, geographic, behavioral, and psychographics, which influence the sales turnover and profits. Consumer power has been increasing over the years, and hotels have to deal with it as it redefines and affects their respective supply chain management models ( Moreno-Perdigón, guzman-Perez & Mesa, 2021) Establishing Dave and busters in Spain requires extensive analysis of all the market entry strategies because hoteliers in different countries use different market segmentation and positioning methods to sell their brands.
Profile of Dave and busters ultimate customers in Spain
Dave and Busters company customers include all individuals looking for restaurant and entertainment services. Foods and drinks offered include burgers, seafood, burgers, pasta, desserts, and chicken. Customers are served throughout the week, with the exception of some branches that do not operate on Sundays. People who want tailored services are also considered; for example, customized buffet services are provided for private parties and special events such as weddings. Games and entertainment services are also available through its Million Dollar Midway that features simulators and interactive games.
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The hotel's services will be targeting customers with different purchasing habits, hobbies and lifestyles; its diverse operations ensure that all customer needs are catered for. It operates for long hours except for the coronavirus pandemic when the hotel and entertainment industry is among the worst hit. Customer profiles are critical for any business to help customers identify target audiences and find new leads.
Customer profiling is very important for the hotel industry. It gives hotel managers a deeper understanding of their customers. With all the data collected when creating ultimate customer profiles, businesses know when, how, where, and what kind of information to communicate to their guests. Businesses understand what their customers prefer and tailor their services to meet customer needs; this increases sales and reduces losses which is a great response rate.
Demographic variables
The demographic variables are age, employment, household income, and race.
The age of a population affects the market financials. Suppose the individuals tend to amass their assets during their years of working and spend it on their retirement. When there is a big number, the demand can be high on the corporate assets and stocks while the other saves for retirement.
When there is increased employment, the demand for products increases because people's spending has increased. (Chawla & Joshi, 2018) There will be an increase in the money that is going around the market place. Also, when the household income is high, the demand for the products in the market because the am household has an extra to spend and spends on the products.
Racial discrimination in the marketplace results in decreased demand for the products decreases because some of the people are discriminated against from getting certain reasons basing on the cultural beliefs of the different races.
3b
B1 was when the household was less, and demand was less compared to the B3 when the demand for the product was high because the household income was high.
When labor increases, the wage rate increases, and in turn, the demand for the product in the market increases, while when the labor decreases in the job market, the rate of wages decreases, and in turn, there is a decrease in the demand of the products in the market.
Market entry strategy
The best market entry strategy Dave & Buster can use in the Spain market is the acquisition strategy. This strategy's advantage is that it is fast in entry, known, and the operations are established easily. When thinking of pursuing the strategy of acquisition, the aspect that is always considered is the restriction that is there in the country that is targeted and, in this case, Spain does not have any restriction preventing Dave & Busters from agreeing on a deal that has benefits or employment in the future of the company's employees. ( Hilmersson, Johanson, Lundberg & Papaioannou, 2021) It is a good strategy for the company because it needs scale in the country and consolidation in this foreign country of its origin. The only disadvantages that the company will face with this strategy are integration with the office at home and high cost, but the benefits are worth a trial.
Product considerations
The consideration that I would make about the product is about the shopping habits and the products' references. By identifying the shopping habit of a product, the product can be tailored to target those habits for its benefit in the behaviors and increase its demand. (Kwak, 2018) The other is the product reference; when a customer is satisfied by a product, they are likely to refer another customer to buy the product, and at last, the demand increases from the referrals.
Positioning theme
Dave & Buster's restaurants give its customers a blend that is best of all the natural ingredients and an elite taste that is of good quality for the buffs of fitness or the persons with their body to be fit; all diets are served catering the satisfaction needed. (Lee, Kim & Won, 2018) In this statement, the restaurant's main benefits have been identified with a point that is compelling on the fitness of the customers and healthy diets for all.
For the young and the old, Dave & Busters is the entertainment brand that delivers the best on a magical and immersive experience because Dave & Busters, and only Dave & Busters can make a connection between you to the world's characters that you desire the most. In this statement, the audience has been mentioned. There is a promise to the audience to satisfy their desires, and it's only the company that can do that.
Advertising Media
The media of advertising that is best for use in television. This is because in any format of an ad, it is influential, and from the past surveys, it shows that the TV adverts have influenced 60% of the purchases on products (Domazet, Đokić, & Milovanov, 2017) . The other advantage of using a TV is that it covers a large audience and not specific audiences. The social media that I will use is the Facebook and Instagram platforms. These platforms have several users of different ages, and the number is large compared to Twitter, whose users are mostly old.
Channels of Distrbution
The channel of distribution that would be appropriate is E-commerce. This is because it dramatically decreases the need to have several storage facilities in different locations, distributors, and brokers connecting with the retailers to sell the products. (Li, 2019) E-commerce digitalizes shipment and storage, managing inventory and direct sales.
Another appropriate channel is wholesalers and retailers. By using this channel, the brand will be in opposition to get feedback from the consumers through the wholesalers and the retailers. They will be able to improve the products in any case they need to satisfy the customer's need and retain them.
References
Chawla, D., & Joshi, H. (2018). The moderating effect of demographic variables on mobile banking adoption: an empirical investigation. Global Business Review , 19 (3_suppl), S90-S113.
Chepkwei, A. (2021). Strategy Implementation In Hospitality Industry: Global Perspective. Journal of Strategic Management , 6 (1), 33-45.
Domazet, I. S., Đokić, I., & Milovanov, O. (2017). The Influence of advertising media on brand awareness. Management: Journal of Sustainable Business and Management Solutions in Emerging Economies , 23 (1), 13-22.
Hilmersson, M., Johanson, M., Lundberg, H., & Papaioannou, S. (2021). Serendipitous opportunities, entry strategy, and knowledge in firms' foreign market entry. International Marketing Review .
Kwak, M. (2018). Optimal line design of new and remanufactured products: A model for maximum profit and market share with environmental consideration. Sustainability , 10 (11), 4283.
Lee, J. L., Kim, Y., & Won, J. (2018). Sports brand positioning: Positioning congruence and consumer perceptions toward brands. International Journal of Sports Marketing and Sponsorship .
Li, M. (2019). Overconfident distribution channels. Production and Operations Management , 28 (6), 1347-1365.
Moreno-Perdigón, M. C., Guzmán-Pérez, B., & Mesa, T. R. (2021). Guest satisfaction in independent and affiliated to chain hotels. International Journal of Hospitality Management , 94 , 102812.
