A Report on How Edition Hotel May Set Up a Successful Brand in Brazil

INTRODUCTION.

Company background.

Collaboration between Marriot International and hotelier Ian Schrager gave birth to Edition hotel. It was originally launched in 2010 in Waikiki, Hawaii. A property followed it in Istanbul in the year 2011. It is a luxurious hotel with a style that suits the local culture and environment. These hotels are often located in prime locations. These may be cities and beachfront providing guests easy access to local attractions and activities. Their unique and innovative designs make them known internationally. Each one has a unique style and character.

Aim and objective.

Edition hotel aims at creating a new market strategy for its brand. This is a brand aimed at being opened in Brazil. The brand has a slogan, “The new generation of luxury.” Its core values are collaboration, dedication, distinction, passion, innovation, and vision.

The hotel also aims at featuring the best in service, food, beverage, and entertainment, refining customized service with the ideal combination of original designs.

Structure of the report.

We look at some structures it can use to set up a successful brand in Brazil. These include:

• The emerging market in Brazil, including a PESTEL analysis of the factors that would influence the brand.
• An investigation of the key customer profile of the market (both domestic and international).
• Access to whether Instagram would work in Brazil as the chosen digital example. We analyse whether it would still be useful to communicate effectively to the domestic and foreign target markets in this new emerging market for the brand.
• A discussion on how the brand would communicate its key messages to its customers in an online and offline environment, considering the impact of cultural and responsible marketing practices and how this differs from the organization’s home country.
• Generating three recommendations for marketing strategies that would aid the brand’s development into the Brazilian market.
• Finally, a conclusion and summary of the report.

MARKETING ANALYSIS OF BRAZIL.

Expanding your business into new countries requires a thorough understanding of the factors affecting your business (Jones et al., 2014). Expanding into Brazil requires a critical analysis of the country’s emerging markets for Edition Hotel. This report aims to provide structure by analysing the political, economic, social, technical, environmental, and legal factors that may affect the operation of Edition hotels in Brazil by identifying the most important factors in each category and presenting them in a table.

Political factors:

Brazil is a federal presidential democracy. Political instability in Brazil is a major concern for businesses. The country has recently experienced a political crisis that can affect the business environment (Milani & Pinheiro, 2017). The three main political factors that influence the operation of Edition hotels in Brazil are:

• Corruption:

Corruption scandals plague Brazil, and companies operating in Brazil face corruption risks (Amorim, 2010). Edition Hotels must therefore have strict compliance policies to avoid being embroiled in corruption

Scandals. They should familiarize themselves with Brazilian laws to avoid any disputes that may be adverse to them.

• Taxation:

Brazil’s tax system is complex and can affect a hotel’s profitability. Edition Hotel needs to understand Brazilian tax laws and regulations to ensure compliance and avoid unnecessary tax liability. They also need to pay their taxes on time to avoid penalties.

• Labour law:

Brazil has strict labour laws that protect workers’ rights. Edition Hotel must ensure its personnel policies comply with Brazilian labour laws to avoid legal issues.

 Economic factors.

Brazil is South America’s largest economy and one of the fastest-growing economies in the world. Brazil’s economy is diverse, with important sectors such as agriculture, manufacturing, and services. The three main economic factors affecting the operation of Edition hotels in Brazil are:

• Inflation:

Brazil suffers from inflation, which can affect hotel pricing strategies. Edition hotels must have a solid pricing strategy considering inflation and other economic factors. This will ensure that maximum profits are achieved, and customers do not feel pressured by their pricing. This ensures that they avoid losses due to inflation.

• Exchange rate:

Brazil’s currency is highly volatile, and fluctuations can affect a hotel’s profitability (Borges et al., 2018). Edition hotels should implement risk management strategies to mitigate their currency exposure. They should ensure they are well updated on any currency fluctuations to put the risk management strategies into place to conquer it.

• Market saturation:

The Brazilian hotel industry is highly competitive and at risk of market saturation (Sammut-Bonnici & Galea, 2014). Edition Hotels must have a unique selling proposition to stand out. This varies from the peak seasons to the low seasons. Also, good customer service will serve them well since customers will be attracted. Also, strong advertisement to make it well known to the public and international visitors is advisable.

 Social factors.

Brazil is a multicultural nation with diverse social norms and values which will significantly impact Edition hotel setting up a brand (Molina et al., 2022). The country’s population is young, with a significant portion under their 30s. The top three social factors that can affect the operations of Edition Hotels in Brazil are:

• Culture:

Brazil has a vibrant culture, and businesses must understand cultural nuances to succeed (Kotler & Gertner, 2007). Edition Hotels need a marketing strategy that aligns with Brazilian culture. Its staff should also train in this Brazilian culture. Also, entertaining its guests through Brazilian cultural performances would benefit their development.

• Health and Safety:

Brazil’s high crime rate and health risks can affect hotel operations. Edition Hotels must implement robust security measures and health procedures to ensure the safety of its guests. Deployment of trained nutritionists is advisable to ensure customers are served the best meals. Also, they should have a good team of cleaners to ensure their rooms and the environment are clean. To ensure maximum security, CCTV cameras should be deployed and checked often to ensure they function properly. Also, highly trained security personnel should be deployed.

• Lifestyle changes:

Brazilian consumers are becoming more health conscious, increasing demand for healthy food options. Edition Hotels must offer healthy dining options to meet this demand. A balanced diet should be their norm always.

 Technical factors:

Brazil has a growing technology sector and high internet penetration (Lima & Araújo, 2019). The three major technical factors that may affect the operations of Edition Hotels in Brazil are:

• Online Reputation:

Online reputation management is essential in hospitality (da Silva et al., 2022). Edition hotels must implement a solid online reputation management strategy to ensure positive reviews and guest feedback. They also need to give positive feedback to their customers’ requests immediately after they deal with the raised issue. Also, they must always update changes made online for their customers to see them.

• Mobile technology:

Brazilian consumers increasingly use mobile devices for hotel bookings and other services (Balova et al., 2022). Edition Hotel must have a website and mobile application mobile-friendly to keep up with this trend. The website must be easy to navigate through. It should contain all the services rendered so that customers may know what to expect when they enter the hotel. The website must also be well maintained to avoid malfunctioning that would hinder service delivery.

• Social media:

Social media is an important marketing tool in Brazil, and businesses need a social media strategy to engage with their customers (Puthussery, 2020). Editions hotel needs an active social media presence to attract and retain customers. This may include Twitter, Instagram, Facebook, and other social media pages. All information a customer may need about the hotel should be provided on these pages.

 Environmental factors.

Brazil has various environmental issues, such as deforestation, and air and water pollution, that affect hotel operations and reputations. Hotels must comply with Brazilian environmental laws, which impose strict regulations on waste management, energy efficiency, and environmental impact assessment.

• Pollution:

Water and air pollution may be the most ones to consider. All their sewage must be well disposed of or treated before being released into the environment. Also, waste materials must be properly dumped according to Brazilian law.

• Deforestation:

Editions hotels must avoid deforestation as possible as they can. They should also embrace tree planting within their environment.

Legal factors.

Hotels must also consider legal factors such as tax, labour, and property laws, which may differ from their home country. Brazil’s legal system is complex and bureaucratic; navigating it can be a major challenge. Therefore, edition hotels should carefully analyse legal factors, formulate strategies to mitigate potential risks and capitalize on opportunities in the Brazilian market. They must ensure that taxes are paid fully and that their operational licence is current.

KEY CUSTOMER PROFILES.

Edition Hotels is a luxury hotel chain that offers unique and personalized experiences to its guests. The brand plans to open new hotels in Brazil, and understanding the key customer profiles of the Brazilian market is critical to achieving this goal. Considering domestic and foreign tourists, we examine the main customer profiles of Edition Hotels in Brazil.

• Domestic travellers.

Brazilian domestic travellers are an important target market for Edition Hotel. The domestic market includes business travellers, vacationers, or both. Age, income, and education are demographic factors that hotels should consider when targeting domestic travellers. Brazil has a growing middle class and the majority of domestic travellers fall into this category (de Carvalho & Chávez, 2018). As such, the hotel should appeal to middle-aged people whose household income is above $50,000 and has at least a bachelor’s degree.

Regarding psychographic elements, hotels should target people who value luxury and exclusivity. These travellers will likely be discerning, cosmopolitan, and willing to pay for unique experiences. Therefore, the availability of these unique experiences may attract these domestic travellers and hence an advantage to the hotel (George, 2021). We also focus on comfort and personalized service, such as private check-in and butler service. These services are essential to customers as most travellers use them to eliminate all-day fatigue (Stefano et al., 2020).

• Overseas travellers.

International travellers are another important target market for Edition Hotels in Brazil. The international market includes people traveling for leisure or business and may come from different countries (Marcon et al., 2017). Age, income, and country of origin are demographic factors that hotels should consider when targeting foreign travelers (Robinson et al., 2020).

Age-wise, the hotel should target people between 25 and 55. These travellers have higher disposable incomes and are more likely to seek luxury accommodations. Hotels should also appeal to people from countries with high GDP per capita, such as the United States, the United Kingdom, and Canada. These countries have a higher population disposed of than other countries as they have high employment.

Regarding psychographic factors, hotels should appeal to those who value luxury and unique experiences. These travellers will likely be wealthy, cosmopolitan, and willing to pay a premium for personalized services and experiences. They are also tech-savvy and use social media to share their experiences with others. Therefore the hotel network should be high and strong to cater to the many people it hosts. This is essential to ensure that they can easily link up with their family and friends in their home countries.

In summary, Edition Hotel should target two main customer profiles in the Brazilian market.

Domestic and foreign tourists. The domestic traveller should be middle-aged, with a household income above $50,000, and an emphasis on luxury and exclusivity. International travellers must be between the ages of 25 and 55 and from countries with high disposable income and high GDP per capita. They must also be tech-savvy, emphasizing luxury and unique experiences. By targeting these key customer profiles, Edition Hotel can position itself as a luxury brand that offers guests a unique and personalized experience.

DIGITAL MARKETING- INSTAGRAM.

Social media has changed how we interact and communicate and has brought about a major shift in how we operate our businesses. Many businesses use social media to communicate (Agung & Darma, 2019). With over 1 billion monthly active users, Instagram is one of the world’s most popular social media platforms. Instagram has become a popular tool for businesses to promote their products and services, connect with customers, and increase brand awareness (Umami & Darma, 2021). We will analyse whether Instagram can be an effective digital communication strategy for Brazil’s new Edition Hotel brand. We also consider legal, cultural, and other factors that may affect the success of this strategy. Instagram as a digital communication strategy:

It is a visual platform that allows businesses to showcase their products and services to potential customers. The user-friendly platform offers features like Instagram Stories, IGTV, and Reels to help businesses create engaging content for their followers using hashtags and location tagging. It also allows businesses to reach a wider audience and target content to specific demographics. Instagram also offers various advertising options, such as sponsored posts and stories, which can be used to promote Edition hotel’s business to a wider audience.

Effectiveness of communication with domestic and international target markets:

Instagram will be an effective digital communication strategy for Edition Hotel’s new brand in Brazil. First, Brazil has a growing population of active Instagram users, allowing brands to connect with potential customers. Brazil had about 139 million Instagram users in 2021, making her the second-largest user base in the world. With a carefully planned Instagram marketing strategy which may include Instagram stories, IGTV, reels hashtags, location tagging, sponsored posts, and stories, Edition Hotel’s new brand has the potential to reach a large number of domestic customers.

Secondly, Instagram is also an effective tool for reaching international customers. The platform’s global reach allows businesses to target their content to specific countries and regions. This feature is especially useful for companies expanding their business into new markets. Targeted advertising and location tagging will enable Edition Hotel’s new brand to communicate effectively with domestic and international customers.

Legal considerations:

When using Instagram as a digital communication strategy, it is important to consider legal factors that may affect its success. An important legal aspect is a compliance with local advertising laws and regulations. Brazil has strict advertising laws, and businesses must comply with these laws to avoid penalties and legal troubles. For example, Edition hotel must avoid false or misleading claims and disclose sponsored posts or endorsements.

Cultural considerations:

Cultural factors can also influence Instagram’s success as a digital communication strategy. Brazil has a unique culture; companies must understand and respect these cultural differences. For example, Edition hotel should pay attention to the languages they use and ensure that their content is translated correctly. Additionally, the hotel should consider local customs and traditions when creating content for its Instagram profile.

Diploma:

Instagram will be an effective digital communication strategy for Edition Hotel’s new brand in Brazil. The platform will allow Edition hotel to connect with a large and growing user base, both domestically and internationally. However, it is important to consider legal and cultural factors that can affect the success of its strategy. By carefully planning and executing an Instagram marketing strategy that considers these factors, Edition Hotel’s new brand will be able to effectively communicate with potential customers and increase brand awareness in this new emerging market.

COMMUNICATION- ONLINE AND OFFLINE.

Edition Hotels is a Marriott International Group brand that offers luxury accommodations in select locations worldwide. The brand’s distinctive style is characterized by unique architecture and design, contemporary amenities, and a focus on providing an exceptional guest experience. We will examine how Edition hotel brands can communicate key messages to consumers in Brazil, a new market that brands plan to enter. We will also consider the impact of cultural and responsible marketing practices and offers recommendations for marketing communication strategies for brands in new markets.

Communicating important messages in an online environment.

In the digital age, online communication channels which use the internet are essential to building brand awareness and reaching new customers (Leite & Azevedo, 2017). For Edition Hotels, the brand’s website is the primary platform for communicating key messages to potential Brazilian customers. The website should be designed to showcase your brand’s unique style and commitment to an exceptional guest experience. Your website content should be unique to your brand, including architecture and design, luxury amenities, and personalized service. Strengths should be emphasized. The website should also be available in Portuguese, Brazil’s main language, so potential customers can access the information they need in their preferred language.

Edition hotel brands can also use social media platforms like Facebook, Twitter, and Instagram to expand their online presence further. Social media can be a powerful tool for building brand awareness and engaging with potential customers. Edition hotel may use these platforms to share brand information, post photos and videos of hotel amenities, and share guest reviews and testimonials.

Communicating important messages in an offline environment.

Online communication channels are essential, but offline communication channels are also important in the hospitality industry (Meira et al., 2019). For Edition Hotels, offline communication channels are important in increasing brand awareness and reaching potential customers in Brazil (Elliott et al., 2015). Edition hotel can use a variety of offline communication channels, including print advertising, out-of-home advertising, and event sponsorships. Print advertising can be a powerful tool for reaching customers who may not be active online. Edition hotel can advertise in local newspapers and magazines to increase brand awareness and generate interest in your hotel. Outdoor advertising, such as billboards and bus shelters, can also effectively reach potential customers in high-traffic areas (Alon et al., 2020).

Event sponsorship is another effective way to increase brand awareness and drive interest in your hotel. Edition hotel may sponsor local events such as cultural festivals, music concerts, and sporting events to connect with potential customers and build relationships with the local community.

Cultural and Responsible Marketing Practices: Cultural and responsible marketing practices are essential for Edition hotel to expand into new markets. Edition Hotels need to understand and respect the cultural norms and values of the Brazilian market. It should consider local cultural customs and practices when developing its marketing communications strategy.

Additionally, Edition hotel must adopt responsible marketing practices that align with local market values and expectations. For example, brands can incorporate sustainability practices into their marketing communication strategies to appeal to environmentally conscious consumers. Edition hotel may also consider partnering with local organizations to support community initiatives and give back to the community.

Based on the above considerations, here are some recommendations for marketing communication strategies for Edition hotels in Brazil.

Develop a localized website available in Portuguese and optimized for the Brazilian market. The website should showcase the Edition hotel brand’s unique style and commitment to a great guest experience. Use social media platforms like Facebook, Twitter, and Instagram to increase brand awareness and engage with potential customers.

Place print ads in local newspapers and magazines to reach customers who may not be active online.

Reach potential customers in high-traffic areas with outdoor advertising such as billboards and bus stop displays.

Sponsoring local events such as cultural festivals, music concerts, and sporting events.

RECOMMENDATIONS.

Luxury hotel brand Edition Hotels is considering expanding its brand to Brazil. A successful expansion depends on an effective marketing strategy that considers the Brazilian market’s unique factors. This report recommends three marketing strategies to help you develop your brand in the Brazilian market. These recommendations consider political, economic, social, technical, environmental, and legal factors affecting brand expansion.

Recommendation 1: Develop a strong digital marketing strategy

Brazil has many internet users, with over 151 million people accessing the internet regularly (Statistics, 2022). This allows Edition Hotels to develop a strong digital marketing strategy to reach potential customers. The hotel can use social media platforms like Facebook, Instagram, and Twitter to engage with customers and promote its brands. Additionally, the brand should focus on search engine optimization (SEO) to ensure its website ranks high in search results for relevant keywords (Fyall et al., 2019). This helps increase brand awareness and attract potential customers.

To execute this strategy, brands can invest in digital marketing tools and technologies such as Google Ads and social media advertising (Jacobson et al., 2020). These tools help brands target specific demographics and geographies to reach their ideal customer base. Additionally, brands can use data analytics to track the success of their digital marketing campaigns and make adjustments as needed.

Recommendation 2: Emphasizing sustainable practices in marketing activities

Environmental concerns have become increasingly important in recent years, and customers are becoming more aware of companies’ impact on the environment (Marcon, 2017). Edition Hotels can differentiate itself in the Brazilian market by highlighting its commitment to sustainability in its marketing efforts. It may promote using sustainable materials, energy-efficient practices, and waste-reduction efforts (Ritter et al., 2015). This will appeal to environmentally conscious customers and differentiate your brand from competitors.

To implement this strategy, it can work with local environmental groups to promote sustainable practices. Additionally, Edition hotel can create content that educates customers about the importance of sustainability and the impact of their choices (Tien, 2019). This helps build a positive brand image and establish its brand as a leader in sustainable practices.

Recommendation 3: Take advantage of local influencers and cultural events

Brazil is a culturally rich country, with local influencers and cultural events playing an important role in shaping consumer behaviour (Wilke et al., 2019). Edition Hotels can use this by working with local influencers to promote their brand and give their followers an exclusive experience. In addition, it may sponsor cultural events and festivals to increase its visibility and establish itself as part of the local community.

To execute this strategy, Edition hotel can research local influencers and cultural events that match its brand values and target audience. It may offer influencers exclusive experiences and promotions to encourage them to promote their brands. In addition, it may work with Promoters to create unique experiences showcasing its brand offerings.

Edition Hotels can potentially expand its brand into Brazil by implementing effective marketing (Souza, 2022). These strategies should consider unique political, economic, social, technological, environmental, and legal factors affecting brand expansion. Whether developing a strong digital marketing strategy, emphasizing sustainable practices, or leveraging local influencers and cultural events, the report’s recommendations will support the brand’s development in the Brazilian market and position it as a leader in the luxury hospitality industry hence establishing its position.

CONCLUSION

In summary, Edition Hotel’s plan to expand its brand into Brazil is a strategic move that presents great opportunities for the hospitality industry. The way the brand communicates with its customers online and offline is key to its success, as they have demonstrated a commitment to a seamless customer experience (Tien et al., 2019). This includes targeted promotions and the use of social media to reach a wider audience. Key customer profiles that the brand will focus on include domestic and international travellers seeking luxury accommodations, personalized service, and unique experiences.

There are some important considerations regarding new factors that may affect the success of Edition hotel in Brazil. First, the COVID-19 pandemic has dramatically impacted the hospitality industry, with brands facing the ongoing challenges of the pandemic. Therefore Edition hotel should analyse the PESTEL factors for the post-Covid to ensure success. Second, Brazil’s competitive landscape is fierce, with many established luxury hotel brands vying for market share. Edition hotel must differentiate itself through its unique value proposition and superior service. Finally, there is a growing demand for sustainable tourism practices in Brazil, and Edition hotel brands should consider incorporating green initiatives into their operations to appeal to eco-conscious travellers.

Overall, Edition Hotel’s planned expansion into Brazil presents a significant opportunity for the brand to establish a strong presence in the market. Employing a targeted marketing strategy and superior customer service will help the brand differentiate itself from its competitors and appeal to domestic and international travellers seeking a luxurious experience (Mogaji, 2021). Additionally, addressing new factors, such as the ongoing impact of the COVID-19 pandemic and the growing demand for sustainable tourism practices, will help brands achieve long-term success in the Brazilian hospitality industry.

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