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By Michel
Bouquier
Going international is a major decision, and one
that depends primarily on a company's CEO. He or she should be open-minded
about international culture. But all too often, heads of companies are
not sufficiently creative or dynamic when confronting the challenge
of going after new international markets.
To cite just one example: The French are especially
inclined to develop international activities in French speaking countries,
virtually regardless of the potential of these new markets for their
specific product or service.
To successfully go international, of course, you
must first be domestically strong. When you have a strong home base,
international activities can reinforce the domestic positioning of your
company.
Going international does not entail becoming a multinational
firm. International activities can be carried on efficiently through
branch offices, joint ventures, franchising, or simply through general
sales agent contracts. And today's new technologies such as e-mail,
the Internet, GDS or Intranet can significantly reduce the cost of the
operation.
Everyone is out to maximize profit, of course, and
to succeed in this a careful procedure must be respected. The rules
of the game must be strictly followed (see Travel Marketing Decisions,
Volume 1, Issue 4).
Because customers care about the end product above
all, decision-makers must first measure the added value of the product
or service they want to promote on the international scene. They must
then evaluate the targeted market-call it the size of the pie-first
with their product or service and then without it. The difference represents
the added value, and serves to gauge the real potential of the move.
Take the U.S. cruise industry as an example. The
leaders of U.S. cruise companies have done an excellent job of making
their pie bigger-their domestic pie, in most cases. They successfully
went after first time cruise customers with a new marketing approach,
and the pie quickly grew bigger. Today, with its enormous berth capacity,
the cruise industry is starting to hit a critical mass, and probably
has no other choice but to look abroad to find new first-time prospects.
What is required? New embarkation locations, new
itineraries, new packages and services matching the needs of international
customers. Toward this end, alliances must be forged with foreign lines
and leisure industry partners. Customer databases must be exchanged
and shared. In short, the cruise lines must follow the lead of the airlines
in going global, because soon the will simply have no other choice.
Hotel guide books, cruise line brochures, joint
marketing activities and advertising would support this new worldwide
strategy. Indeed, the best repeat customers of deluxe hotel chains represent
a rich potential market as cruise line passengers. Recently, the owners
of an international hotel chain discovered the best way to strengthen
their bonds with loyal customers: go on a cruise together. Over eight
full days, hoteliers and clients shared a unique experience. Hotelier
suppliers such as Champagne companies were thrilled to be selected as
partners during the cruise. And the experience was so successful that
it will be repeated every year on a much larger scale. The hotel chain
is planning to showcase its world offer to loyal customers and valuable
potential prospects on one or several cruise ships.
One can easily imagine the marketing link between
international hotel chains, airlines, cruise lines and various suppliers
inside or outside the travel industry. The marketing concept and approaches
of the cruise industry in Europe, which is about 30 years behind the
USA, could easily be revamped and revitalized through such an approach.
Instead of focusing on older, repeat customers among
Europeans with theme cruises that have been promoted for decades, European
cruise lines would become key players in the leisure and travel industry.
To sum up: Going international does not necessarily require a major
investment; but it does require creative thinking to make a bigger pie.
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