RVNXConsultancy

RVNX Consultancy

RVNX Consultancy

Consulting Project Group

MSc Management Consultancy Team 6 *** 2023

INDEX

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 INDEX FOR FIGURES AND TABLES

S. No. Tables Figures

1. Table of Terms Definition The Tipi Company Business
Model Canvas
2. Deliverables of the Project Proposed Sales Model in
International Markets

3. International Market and Entry Feasibility Analysis Framework for

Methodology TTC

4. Marketing Activities Capability Feasibility

5. Product Installation Distributor Strategy

6. Suitable Outsourcers for Tipi Key Distributor Activities

Company
7. Market Evaluation. Subsidiary Strategy

8. Financial Feasibility The Tipi Academy Alterations

9. Recommendations Entrance Strategy Adapted Business Model Canvas

Table 1: Table of Terms definition

Word Meaning
TTC The Tipi Company
USP Unique Selling Point

Table 2:

Deliverable of the project

1. Competitor analysis – desktop competitor analysis of Tentipi
2. Customer insight – survey of a selection of existing customers (both UK and
international) to understand why they buy.
3. Brand – what, if any, changes are recommended to the brand for international
markets (specifically, is “Made in Britain” of value)
4. Proposed sales models for rental and permanent installation sectors

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 5. Product installation - ideas on installation training (for rental sales partners) and
how to manage installations for permanent installations (comparing the ideas with
UK model)
6. Product training & care – Does anything (other than language localisation) need to
be done to the company’s online training portal “The Tipi Academy”, to support
international partners, customers, and consumers?
7. Central v local marketing – what marketing should be done centrally, to support
international growth and what should be done locally and how is funded?
8. Recommendation of country to test international growth.

Table of content

1. Executive Summary
The Purpose of this Report is to deliver an understanding of developing international sales to
The Tipi Company and classify the changes needed for achieving those sales, as well as the
cost of getting those international sales.

This is going to be achieved by the internationalisation of the TTC’s business model and
creating international sales through new market entry. Then the report conducts a customised
analysis on the business activities of TTC and then identifies the areas of adjustment in the
business model. After the identification of the changes needed, guidelines are formulated on
how to create those changes and the end result is decided.

The report identifies the Problems the company faces in acquiring international sales: -
1 Lack of Relevant Marketing and Sales strategies in the international markets.
2 Inadequate International supply Chains
3 Business Model Not Geared for International Sales

Spain is chosen as the Test market to serve as the initial country in which TTC will enter. It is
chosen for pre-existing inquiries and its location on the international shipping lanes as well as
the size of its market.

Suggestions for how to solve the above identified problems are given. A new marketing
strategy regarding the cost distribution between the parent company and the distributor, an
adjustment to the branding of the company, outsourcing product installation, new approaches
to the website architecture and a new three tiered model of sales for the international
markets.

Table 3:

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The Above methodology is developed and utilised to analyse the business model of the
company to serve as a guideline for TTC in how to analyse and identify the changes needed
for new markets. The Spanish market is used to demonstrate the methodology through
things like PESTLE and Feasibility analysis and the competitor analysis.

The new Market entry model for Spain is suggested, in the form of a distributor-based
market entry with various incarnations of the format serving as options for the company to
choose from as the circumstances dictate.

The Client Deliverables are analysed and completed and the information that was asked for
is presented in a different section for each deliverable.

A final Conclusion is given, and the Limitations of the Projects are Acknowledged.

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2. Introduction

The primary objective of this report is to help TTC expand its international sales through
business model innovation. Currently tailored for the UK market, TTC's branding, website
strategy, product installation, and marketing align with the UK audience. To broaden
international sales, the business model must be adjusted to accommodate the specific
demands of international markets. This report identifies key elements of TTC's business
model that require modification to bolster international sales and provides the necessary
adjustments for the international market and the identified pilot market of Spain. The report
also proposes distribution and sales models for the international market. Another critical
aspect essential for achieving increased international sales is the development of distribution
networks and sales models tailored to international contexts, as the biggest hindrance in
TTC's international sales growth lies in TTC’s challenges with logistics networks to supply
international clients. The effectiveness of these networks is as vital as any other factor in
achieving international sales growth. Moreover, to attain substantial growth in international
sales, TTC must develop a comprehensive plan for entering different international markets.
Expanding into multiple international markets requires a well-defined methodology, which
this report provides. By amalgamating these various elements, TTC will be better equipped to
enhance its international sales and achieve successful international expansion. The secondary
objective of this report is to identify and propose a pilot market for TTC to refine its
international business model. The client proposes Spain as the pilot market, so adjustments to
business model elements are made with Spain in mind. The third purpose of this report is to
meet specific client deliverables proposed to the consultancy team.

Figure 1: Current business model

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The Figure 1 is a representation of the present business model utilised by TTC. This business
model is optimised for operating in the UK. This report will use this model as the baseline
from which adjustments to the business model will be suggested to make it more successful
in the international market.

2.1 Company background

TTC is a well-known British company that specialises in creating, producing, and renting
eye-catching tipis that are influenced by Native American customs. Large-scale tipis for
weddings, events, glamping, and classrooms are among their products. Additionally, they
offer tipis to rental companies, providing insightful knowledge and experience in the rental
sector. The brand's dedication to sustainability is seen in its premium British-made items that
are hand-sewn with flame- and water-resistant fabric and distinctive, lab-tested tipi poles. By
using cutting-edge materials and waste management techniques, they lessen their carbon
footprint as they set out on their road to attain Net Zero emissions in May 2023. TTC wants
to grow globally and is looking for a test market for their "international business model." The
company redefines the outdoor experience with exquisite tipis for lifelong memories and a
greener future because to their commitment to excellence, sustainability, and customer
service.

2.2 Problem Breakdown

TTC aims to develop international sales, particularly in Spain, Australia, and Denmark. After
collecting relevant data and conducting focus groups within the industry, we have identified
the following problems that hinder the internationalisation of the TTC company.

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1) Lack of relevant marketing and sales strategies in overseas markets:
TTC's marketing is not adapted for international sales, as the elements that attract customers
are tailored specifically to the UK market. These elements include TTC branding, the
website, and the presentation of the value proposition, which are not conducive to
international sales growth.

2） Inadequate international supply chain:

TTC does not have any overseas distributors, nor has it set up overseas branches to explore
the international market. Consequently, the challenge lies in how to complete product
installations and provide after-sales service in overseas markets.

3） Business model not geared for international sales:

The current business model of TTC is not suitable for exploring overseas markets. In terms of
the sales model, it adopts a direct sales approach in the UK. This model leads to limited
market reach, preventing TTC from reaching a broader base of overseas customers.

2.3 Spain as the pilot market

Regarding Deliverable No. 8, this report presents Spain as the pilot market for translating the
business model to a foreign market. Spain was chosen for three main reasons to serve as the
pilot market. Firstly, it is the recommendation of the director of TTC. Secondly, there have
been prior inquiries regarding the company’s products from the Spanish market. Thirdly,
Spain is one of the biggest event industries in Europe. Additionally, Spain's geographic
location makes it one of the easier markets to establish a logistical network. Considering all
these factors combined, Spain emerges as the perfect test case for the internationalisation of
TTC's business, thus it is the country chosen by this report. The consulting team has
conducted specific adjustments to various business model elements for the Spanish market.
These adjustments serve two purposes: firstly, to help ensure the successful
internationalisation of TTC into the Spanish market, and secondly, to provide an example of
how to adapt business model elements for international markets.

3. Critical business model elements requiring adjustment for international markets

3.1 Branding

Regarding Deliverable No. 3, the following, were our findings.

TTC should insist on the "Made in Britain" value in the international market. This is because
the "Made in Britain" labels enjoy a good reputation worldwide. Consumers often associate
British manufacturing with high quality and advanced technology, and they are willing to pay
a premium for products carrying this brand. Barclays Bank (2021) found that British
exporters can benefit from the price premium of 10 major countries considering their
willingness and ability to pay the premium. These 10 markets are the United States, the Irish
Republic, France, the Netherlands, Germany, South Africa, the United Arab Emirates, India,
China and South Korea. Among them, Indian consumers are willing to pay an average gross
premium of 11.8% for products made in Britain. Followed by the United Arab Emirates, the
United States and China, they are willing to pay 10.9%, 10.4% and 8.8% respectively. The
research also found the "Made in Britain" label can bring 3.5 billion pounds of additional
value to British exporters every year. Among the 3.5 billion extra income for British
exporters in the surveyed market, 1.2 billion came from the United States, 543 million from

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France, and 538 million from Germany. However, for our targeted market, Spain, "Made in
Germany" is the most popular label among Spanish consumers, followed by "Made in Spain,"
and finally "Made in the European Union." Therefore, TTC should still use the "Made in
Britain" title, but it should not be its USP as it is in the UK. Instead, there needs to be a
greater emphasis on the other unique qualities of TTC, such as excellent product design and
quality, strong after-sales service, and a customer-oriented service concept. These qualities
will make customers more willing to pay a premium for TTC products.

3.2 Central and local marketing strategies

Regarding Deliverable No. 7

The Central and Local marketing strategy of the company refers to the marketing approaches
employed in the central market of Britain and the local market where the company aims to
expand. It is crucial that these strategies complement each other, allowing TTC to capitalise
on its strengths in one market to boost sales in the other and vice versa. While the following
strategy is specific to Spain, it can serve as a general guideline for a broader strategy, acting
as a foundation with adaptable details to suit different cultural contexts as needed.

Our proposed marketing strategy for Spain consists of two complementary and synergistic
pillars that will guide the company in utilising their existing resources and networks while
also facilitating growth in the newly entered market.

The Central Marketing Strategy: This pillar focuses on marketing activities and approaches
that the parent company in Britain can undertake to add value to their central market and
create new revenue streams for TTC and its British partners. One approach involves using the
distributor as an intermediary between the markets of Spain and the British partners. This
network will enable the British partners to access the new market and acquire an entirely new
client base. They can offer their services to clients in Spain and utilise the distributor's
facilities to provide services in the new market. This connection between the UK partners and
the new markets will lead to additional revenue streams for them, while also helping the
distributor earn profits on idle inventory. Therefore, the premise of the central marketing
strategy is to advertise the new value proposition to existing partners through the existing
channels, to promote business in the new market entry.

The Local Marketing Strategy: The local marketing strategy is less prescriptive as it largely
depends on the capabilities and preferences of the distributor who will be implementing these
activities. Each regional and national context may require a different set of marketing
activities for promoting the products. However, some recommended activities to be
conducted in Spain include marketing at trade shows and exhibitions. Face-to-face
interactions and personal relationships hold significant importance in Spanish business
culture, as revealed by our cultural analysis (Appendix 5). Therefore, generating networks
and sales leads through such events will be paramount. Another crucial activity involves local
marketing efforts, such as placing ads in trade journals and magazines to target local
businesses. In addition, marketing the brand over social media platforms like Facebook,
Instagram, and TikTok will connect us to potential clients interested in our product and assist
the distributor in generating sales leads. Platforms like LinkedIn, blogs, and review websites
may not have a direct impact on sales, but they play a pivotal role in establishing the
trustworthy nature of the brand. This aspect of the marketing strategy is crucial for creating
brand awareness and identity in the marketplace. Ultimately, it requires a process of learning

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about the local culture and customising the message and the product to make it desirable to
local customers.

Table 4:

Who Finances the Marketing spend in a Manufacturer and Distributor relationship?

Within the marketing section, the client has requested a breakdown of which entity is
responsible for paying for the marketing of the product. Typically, in a manufacturer and
distributor relationship, it is typical for the distributor to pay for marketing in return for an
additional margin. Furthermore, it is also typical for there to be a split of the marketing cost
between manufacturers and the distributor as margins are the most important aspects of the
negotiation. Typically, distributors require a margin between 20% to 35%, and with the
inclusion of marketing, it normally falls at the higher end of the range. Therefore, the Tipi
needs to carefully consider the margin that is necessary to obtain a sufficient profit and base
negotiations of marketing expenses on that. The goal of the company should be to strike the
most lucrative deal with its distributor, and the deal that needs to be agreed upon should be
competitive in relation to the other products. For example, a 25% margin. Once this is agreed
upon, this consulting team recommends the company to opt into the distributor marketing on
behalf of the company to utilise the distributor's competencies in marketing. The company
should always aim to pay half of the marketing spend of the distributor, and the distributor
should pay half of the marketing spend. For example, if the total marketing spend is
equivalent to a 10% margin, this will mean that the total margin that the distributor would get
is 30% as they pay for 5% marketing spend, and the manufacturer would now be responsible
for 5% of the marketing spend. This 5% can either be allocated to the distributor, or the
company can undertake the marketing themselves. However, if the distributor is significantly
more efficient in marketing than the company, the company should consider increasing the

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marketing spend allocated to the distributor or yielding the 5% to the distributor. Another
question asked by TTC director is how the company would recuperate its costs of expansion.
To answer this, the company should not focus on the short-term recovery of the expenditure
through the contract of the distributor and the margins, but the focus should be on
establishing the most sufficient margins that will, with time, slowly recover the entrance
expenditure and the marketing expenditure. Therefore, when entering the Newmarket, the
Company should anticipate the incurring of costs that will be recovered over time, including
the undertaking of the costs of marketing as well. Overall, it is extremely important for the
company to seek professional help when negotiating this contract, as it is paramount to the
success of the expansion.

Incentive Plan:

In addition to this, the company should establish a very comprehensive incentives plan that
will serve to aid the margin agreed upon with the distributor to incentivise the prioritisation
of the company's goods. See full proposed incentive plan in appendix 4.

3.3 Proposed sales model in international markets

Regarding Deliverable No. 4

Figure 2:

TTC should adopt two sales models in international markets: a direct sales model and a three-
tier sales model for rental and permanent installation sectors. The direct sales model involves
the distributor or subsidiary selling directly to the end consumer, such as a tipi rental business
or outdoor solution-seeking company, mirroring TTC's current UK model. The three-tier
sales model (figure 2) was developed based on customer insights, as UK rental clients already
sell their old inventory and want to expand their rental businesses to include this new revenue
stream. In this model, TTC would sell tipis to well-established rental businesses with a good
track record of profitability, knowledge of TTC’s brand, and an excellent understanding of
product installation at wholesale prices, for example a 15% discount. These rental businesses
then sell the tipis to their own network of customers, fostering collaborative growth.

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Internationally, the three-tier sales model would serve as an additional revenue stream and a
means to increase TTC's reach. It would help reach areas where distributors or subsidiaries
face logistical challenges, as selling tipis to business partners allows them to handle product
installation in those areas. Implementing this model would require TTC to meet demand from
all rental businesses, including transportation and identifying suitable partners, which can be
costly for the company. To address this, the consulting team recommends a gradual growth
approach, starting with one exclusive partner and expanding steadily together to learn best
practices for delivery and cost control. The network can then grow strategically in the
intended market to ultimately saturate the international market. Finally, an overall
recommendation for both models is that TTC can use a bonded warehouse to ease the
logistical cost of the three-tier sales model, while also allowing the company to defray the
margin required by distributors for the direct sales model.

3.4 Product installation

Regarding Deliverable No. 5

Outsourcing product installation in international markets is recommended, leading TTC to

outsource this element to the distributor or other professional companies. Harmon's process
strategy matrix indicates that the installation process for TTC is complex, but it does not fall
under the company's core competency, making outsourcing the ideal choice.

Regarding the Spanish market specifically, TTC has two options for outsourcing its product
installation service: either to the distributor or to Spanish professional companies depending
on which distribution strategy is chosen. This preference for outsourcing arises from its
feasibility when compared to establishing TTC’s own product installation team in the Spanish
market. Firstly, TTC can benefit from the expertise and quick delivery offered by the
outsourcing partners for product installation in Spain. Secondly, by outsourcing, TTC can
focus on its core processes rather than diverting resources to supporting functions. Thirdly,
this approach helps mitigate business risks in Spain, especially considering TTC's
unfamiliarity with Spain's labour law and safety regulations, where outsourcing can prevent
potential penalties. Fourthly, outsourcing can lead to reduced costs, including setup,
operational, and recruitment expenses, as these aspects are handled by the outsourcers.
Additionally, TTC can have a more predictable budget, as pricing with the outsourcer is
agreed upon in advance. However, outsourcing also comes with its own set of risks, as
illustrated in Table 5.

Table 5:

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(Wongleedee, 2016, cited in Somjai, 2017).

To address and minimise outsourcing risks, we suggest the following methods:

1. Outsourcer quality assessment:

TTC should establish standard operating procedures (i.e., quality prototype) for selecting
installation providers, emphasising stability and consistency in the installation and
maintenance process. Formal contracts should be adopted to reduce agency risks and ensure
high-quality trade relations, product installation services, and maintenance. At the same time,
short-term contracts can be used to continuously develop new outsourcers, reducing overall
outsourcing risks.

2. Quality management in the installation process:

To ensure high-quality products, TTC should provide technical assistance to outsourcing
service providers in quality control. This can include on-site technical assistance and training
programs. The expertise of Tipi's professional installation and maintenance team in the UK
can be utilised to communicate regularly with outsourcing service providers in Spain, sharing
technical guidance with their employees, inspecting the quality of installation and
maintenance, and confirming adherence to Tipi's standards.

3. Quality inspection and assurance:

Customers' feedback plays a vital role in quality management. TTC receives monthly
feedback through its Customer Relationship Management system, which becomes part of the
evaluation process for service providers. This enables TTC to establish stricter quality
standards for all its service providers (Shen and Chen, 2019).

Our teams also find two suitable outsourcers for Tipi company.

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Table 6:

3.5 Website improvement

The consultancy has carefully analysed several website marketing tactics for TTC's global
marketing. The Centralised Model and the Hybrid Approach were found to be the two main
models because of the investigation.

Centralised Model:
A centralised website with integrated language translation capabilities emerged as one of the
optimal approaches for TTC's international expansion. This strategy is particularly
advantageous for a start-up company seeking global reach. TTC's competitors, such as
Tentickle and Tent Tipi, operate multiple websites for different countries, allowing them to
deliver relevant content, including information on local laws and regulations, to their target
audiences in each nation. However, managing multiple websites for various countries can
strain TTC's limited budget and resources. By centralising its web presence, TTC can
efficiently reach a broader audience without the complexities of maintaining numerous sites.
This centralised strategy prioritises enhanced user-friendliness and a seamless customer
experience, regardless of geographical location.

Hybrid Approach:
Additionally, the consulting firm suggested a hybrid approach that combined aspects of the
centralised model with a tailored approach for the UK market. Tentickle, a competitor, has
been observed to have 10 different country-specific websites that are available in a variety of
languages. Similar to this, Tent Tipi offers six separate language-specific country-specific
websites. By using a segmented strategy, they may deliver information that is customised for
each nation, improving the client experience. TTC can optimise website performance and
accessibility, just like its rivals, by using a similar approach for the UK market and keeping a
core website with cloud computing and content delivery networks (CDNs) for other
international countries. This hybrid model puts TTC in a position for significant global
expansion while assuring cost- and resource-efficiency.

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Conclusion - Embracing the Hybrid Model:
The consultancy concluded that the Hybrid Model is the best website approach for TTC's
global expansion after conducting a thorough analysis. By combining a centralised web
presence with targeted localisation for the UK market and leveraging successful competitor
strategies, TTC can effectively reach its worldwide audience and provide an enhanced user
experience. This strategic decision positions TTC for success in the competitive camping and
outdoor goods market, aligning with best practices observed on successful competitor
websites. Similar to Tentickle and Tent Tipi, TTC's responsive website design will enable it
to reach a global audience, ensuring compatibility with any device.

4. Methodology for international market entry

The six-step framework proposed below is a methodology for TTC to enter international
markets.

4.1 Step One: Strategic Market Identification and Selection

This section entails the identification of suitable markets to enter. Within this step, it involves
the identification of desired markets. These markets are then evaluated against suitability
indicators to judge their suitability for the company's entrance. Options that are found
unsuitable are discarded, while suitable ones are shortlisted for further consideration. Once a
suitable market is identified, the process can move on to step two. The consulting team
determined that certain elements of a market indicate potential international market
suitability. These elements include the availability of distributors within the international
market, as TTC is likely to start by utilising the distributor strategy; a strong and stable
external environment represented by the findings of a PESTEL analysis; an adaptable and
favourable cultural condition, such as an outdoors culture for events, highlighted through a
cultural analysis; stable industry conditions, like industry growth rate; competitive
atmosphere, emphasised by a competitor analysis and a track record of prior international
inquiries to TTC, as the TTC Director has expressed the company's preference for low-risk
markets. TTC should conduct various evaluations and assess the outcomes of those analyses
to determine the suitability of each industry. TTC can fill out table 7, by placing a tick if the
evaluation is deemed positive or if the number of distributors or enquiries are deemed
sufficient. The markets with the most ticks are considered more suitable and can proceed to
the next step. This marks the first layer of evaluation.

Table 7

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4.2 Step Two: The Evaluation of Strategic Options against Organisational Readiness

This section evaluates the company's readiness to adapt its business model for market entry.
It emphasises the significance of examining internal considerations in relation to the target
market and determining whether the organisation can successfully transition to the new
market. To assess the organisation's readiness thoroughly, a feasibility analysis is conducted,
encompassing two crucial internal factors: financial feasibility and capability feasibility.
Financial feasibility involves assessing the organisation's financial ability to expand into the
new market. This evaluation considers the cost of expansion versus the available funds for
such endeavours. On the other hand, capability feasibility evaluates the organisation's ability
to adapt or acquire the necessary capabilities to successfully thrive within the new market.
For instance, it considers whether the organisation can establish logistic networks to support
the Newmarket entry or handle cultural barriers, such as language and geographical
limitations like time zones. The synthesis of the outcomes of these two feasibility criteria
helps answer the question: Is the organisation ready to enter the market identified in step one?
As a result, this evaluation mechanism becomes crucial, as some countries may present
higher feasibility than others.

4.2.1 Feasibility analysis framework for TTC

Figure 3:

4.2.2 Explanation of framework

1) Financial feasibility
In the financial feasibility section, TTC needs to firstly estimate the total costs associated
with specific distribution strategies, as exemplified below:

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Table 8: Estimated cost
Distributor strategy Subsidiary strategy
£100,000 £500,000

After this step, the company needs to assess the funds allocated and available to finance the
distribution strategy. In the case of the example, if the company is willing to spend £350,000
on an entrance strategy, the distributor strategy would receive a tick on the framework.
However, if the company is only willing to spend £70,000, the entire market will be rejected,
as the company wouldn't have the financial capacity to expand into the market. In such cases,
a return to step one is required. This aspect of the framework serves as a mechanism for both
selecting distribution strategies based on cost, and overall market selection. It becomes an
exclusion factor when there are multiple markets, and only a few of them are financially
feasible. Once both assessments are made and both aspects receive a tick, the market and the
strategic entrance option become financially feasible, leading to the final tick at the bottom of
the framework.

2) Capability feasibility
In this section, TTC assesses its ability to adapt or acquire the necessary capabilities to
succeed in the new market. The project team identified the following key capabilities
required for thriving in any new market: Logistical capabilities: The ability to set up an
efficient distribution channel in the new market. Human resource capabilities: Having staff
dedicated to managing the new market, including managers in the case of a subsidiary
strategy. Digital transformation capabilities: The ability to create a specific website or modify
the existing website to suit the new market, including any digital extensions based on the new
market entry. Linguistic capabilities: The ability to integrate the native language(s) of the
Newmarket into communication, advertising, and instructions. Geographical limitations
mitigation capabilities: The ability to overcome limitations caused by geography, such as
dealing with different time zones and lead-times for providing materials and spare parts.
Systems capabilities: having proficient systems for tracking, monitoring, and disseminating
critical performance data of distributors or subsidiaries, including accounting software, CRM
software, and installation process checking systems.

Figure 4:

To complete this section, the company should firstly conduct

an internal inquiry to determine if the capabilities either
already exist, can be developed, or are unattainable. The
framework is then filled with markers representing the status
of each capability, as demonstrated in the key. Markets where
the organisation has the capabilities in existence or the
capabilities are attainable can be approved, while markets
where the company is incapable of acquiring the necessary
capabilities should be rejected. (Note: Only digital
transformation can be unattainable, but a market can still be
approved. However, if even one of the other capabilities is
deemed unattainable, the market should be rejected). This
aspect of the feasibility analysis helps assess the organisation's
readiness for market entry.

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4.3 Step Three: Adaptation of Business Model

In this step, the information from Step 1, such as industry analysis or Pestle Analysis, serve
as the basis for determining the necessary adaptations to the business model to ensure the
success of new market entries. These adaptations can take various forms, as no two markets
are alike. The adjustments to the business model are informed by the external environment.
For example, in the case of Spain, this report recommends adapting the branding of the
company and its marketing activities to gain market share more effectively. This example
illustrates how external factors, such as the culture of Spain and their limited receptiveness to
"Made in Britain" products, shape internal factors like the marketing strategy.

Some of the business model adaptations suggested in this report for the Spanish market are
briefly described below for brevity:

• Adjusting the Marketing Strategy to de-emphasise the "Made in Britain" aspect and instead
focusing on product quality and services.
• Introducing an additional sales model by having the Tipi hiring business also sell permanent
installations.
• Outsourcing the installations of the Tipis to external teams.
• Creating both Local and Central Marketing strategies that synergise with each other.

These adaptations are specifically tailored for the Spanish market. If the company intends to
enter any other market, a separate analysis must be conducted in line with the first and second
steps, and the necessary adaptations for that external environment should be devised and
implemented.

4.4 Step Four: Selection of Distribution Strategy

Step four pertains to the establishment of the way in which TTC gets its products to the final
consumer. The company must determine what strategy they're using to get the product to the
final consumer in any desired market, and this strategy must be able to receive the tipi
component from the head office that establishes the tipis and sends them to new markets to
meet orders. After consultation with TTC, two main strategies were approved for
consideration: a distributor strategy and a subsidiary strategy. The company should select
which strategy is best for the new market based on, firstly, its ability to finance the
distribution strategy, and the feasibility of establishing the distribution strategy in the market
based on factors, such as laws, logistics requirements, geographic location, and the
availability of distributors in the market.

4.4.1 Distributor Strategy:

Figure 5:

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A distributor is an intermediary that exists between the final consumer or another entity in a
supply chain. If the company utilises a distributor strategy to enter in new market, this entails
that the company will establish a relationship with a distributor within the intended market of
entry that will serve as the company's means to trade in the country. This will take the form
of a distributor that already operates within the intended industry sector, and TTC would add
its products to the distributor's portfolio. The key elements or key activities that are consistent
with a distributor are exemplified below.

Figure 6: Key Distributor Activities

The establishment of a distributor in a market can be achieved in two ways. The first of those
ways is the strategic selection of a distributor that provides all the key elements identified.
The advantage of this method is that it requires less logistical capabilities to operate this
distribution strategy as only one distributor handles everything. Additionally, it is easier to
build a strong relationship with a sole distributor than multiple, but the disadvantage may be
the ability to find one distributor that is sufficient in all elements. The second way is the
establishment of a distributor network. This is the establishment of a network that consists of
companies that specialise in the specific elements that are consistent with a distributor. The
advantages of this are that it is easier to find multiple companies that are excellent in specific
elements of what makes up a distributor, and a superior distributor network can be formed.
However, the required logistical capabilities of coordinating all these elements are high, and
it is harder to build stronger relationships with multiple distributors. Regardless of which
strategy is chosen, the holistic relationship that will be established between the manufacturer,
which is the company, and the distributor will be one where the distributor will conduct the
services required to get the product to the customer and the subsequent duties of taking care
of the customer afterwards in return for a margin. The company should select a distribution
strategy based on its logistical capability to coordinate distributors, cost, and availability of
distributors in the new market, and the consideration of what would create the highest quality
and most consistent customer buying experience. Once this decision is made, the most
important aspect of this strategy is the negotiation of a distributor contract. Ultimately, the
agreed-upon margins determine the workability of utilising a distributor in the supply chain.
TTC should hire a professional consultancy to advise in contract negotiations to get the best
deal as normally distributors ask for a margin between 20 and 35%. This margin is extremely
important as it affects the profitability for the company and the incentive of the distributor to
sell the product.

18
4.4.2 Subsidiary strategy

Figure 7:

Another route the company can take is the establishment of a subsidiary in the targeted
market. The subsidiary will serve as the connection between TTC and the final consumer.
The subsidiary will handle all elements identified in figure 6. To establish this strategy, there
is a need to acquire a place of business, establish a bank account, hiring of staff and
undertake the administrative costs of setting up in the new market. The biggest advantage is
that the company can retain all profits of sales, and it does not have to worry about finding
the perfect distributor. However, the biggest downside is that this option is extremely costly
and requires the development of competencies regarding product installation and marketing
that the company is not adapted to.

4.4.3 Recommendations distribution strategy

Table 9

The consulting group reached a recommendation for TTC by considering five primary
factors: the cost of the entrance strategy, the market reach it would provide, the barriers to set
up the logistical network of the strategy, the speculative profit threshold, and the level of
control the company has over the way its product is priced, represented, and marketed. After
careful evaluation, it was found that the distributor strategy is the superior option as it offers
excellent market reach, depending on the distributor chosen. Furthermore, given the cost
sensitivity of TTC at this point in its life, cost considerations are extremely important. Thus,
the distributor strategy offers a feasible cost requirement, while providing an acceptable
profit threshold and an acceptable level of control, depending on the distributor agreement.

4.5 Step Five: Setting Up Appropriate Governance and Personnel

19
TTC should also pay attention to internal management planning when exploring overseas
markets.

First, in personnel appointments, in addition to choosing managers who are proficient in

Spanish and English, we should also pay attention to the scope of responsibilities of
managers and achieve separation of responsibilities. When recruiting overseas market
leaders, TTC can contact local headhunters or senior human resources managers to
recommend suitable candidates. In order to make the newly recruited employees integrate
into TTC more quickly, TTC should train the new employees and let them know the business
process and company culture of Tipi company.

Second, effective communication. This is very important for opening the international
market. If the headquarters knows nothing about the overseas market, then the overseas
market may get out of control. Therefore, TTC needs to hold regular meetings with overseas
markets to understand the operation of overseas markets. For overseas projects, TTC may use
office software such as teams to share documents within the software to ensure that it knows
the accuracy of the project. At the same time, the British headquarters should also inform the
overseas responsible person in time when making decisions about overseas markets, so as to
avoid the problem of information lag mentioned by customers in focus groups.

Third, the company structure. TTC needs to consider what framework structure they should
adopt internally to manage overseas markets. If they open overseas markets in the form of
distributors, they need to design guidelines for managing distributors, so that distributors can
open up larger overseas markets as much as possible while ensuring Tipi company's profits.
In addition, they should appoint the person in charge of docking with the distributor of
subsidiary, so that the situation in overseas markets can be transmitted to the UK in time.

4.6 Step Six: Implementation

Plan Implementation Guidelines

The final step of the methodology is the implementation part. When TTC reaches this stage,
they should put their plans into action. A prerequisite to implementation is establishing and
considering the following elements to ensure successful execution:

Set Goals: The first step is to identify objectives and articulate the benefits of these changes
for the company. The goals involve achieving the suggested changes for desired expansion.

Map Out Risks: Identify potential risks associated with the plan and estimate their likelihood
of occurrence. These risks must be considered moving forward.

Setup Timeline: Establish a realistic timeline for the project, considering the time required
for completion and accounting for unexpected risks.

Schedule Milestones: Establish comprehensive, achievable, discrete, and important

milestones to measure the project's progress.

Assign Tasks: Divide the required work into distinct tasks that align with the milestones and
assign them to the most suitable individuals. Tasks should be neither trivial nor
overwhelming.

20
Allocate Resources: Assess available resources and allocate them to accomplish the tasks at
hand.

By adhering to these guidelines, TTC can effectively implement their strategy and ensure a
successful implementation of international market entry efforts.

5. Client deliverables

5.1 Competitor analysis

Regarding Deliverable No. 1

Tentickle and Tentipi are two companies operating in the event hire and adventure tent
industries, each with distinct business models and marketing strategies. Tentickle,
headquartered in South Africa, employs a decentralised supplier model, establishing
subsidiary companies in various countries to act as local suppliers. These suppliers handle
essential tasks like surveying, tent installation, repairs, and upgrades. Tentickle's marketing
focuses on their innovative, rugged, and adaptable tents, which hold accreditation from
international bodies. They prioritise online marketing through their website, SEO, blogs,
social sharing, and content syndication, guiding potential customers to local suppliers. On the
other hand, Tentipi, a Swedish company, follows a segmented business model based on their
product offerings. For their adventure tent series, they utilise central distributors and
stockists, targeting major markets. Their event tents rely on a more conventional supplier-
based model, with one supplier per country or market. Tentipi's marketing strategy revolves
around creating market demand by sponsoring adventuring activities and cultivating a
community of like-minded customers. The key lessons TTC can learn from Tentickle include
the value of decentralisation and the importance of trusting competent partners to facilitate
global expansion. From Tentipi, TTC can learn the significance of segmentation, tailoring
business models to specific product lines, and the power of market creation to foster healthy
growth in competitive or less developed markets. By adopting these successful strategies,
TTC can enhance its market presence, increase sales, and capitalise on the unique qualities of
its products while expanding its customer base, (see appendix 1, for full competitor analysis).

5.2 Customer insights from focus Group

Regarding Deliverable No. 2

The consultancy group conducted a focus group to gain insight into the minds of the
customers and learn what aspects of the company and the product create value for them. The
consultancy group understood the answers by examining how the company attracts and
retains customers, as well as identifying areas for improvement in the future.

5.2.1 How did they attract Customers:

Both customers were looking to start new businesses in the field of hiring Tipis and wanted to
deal with a company that would grow with them. Another major reason was the company's
ideal location, which allowed easy access for customers. The aftercare and repair services
offered by the company also played a significant role in attracting customers. Lastly, TTC's
market leadership in terms of product quality and stylishness was a compelling factor.

21
5.2.2 How they retain Customers:
The customers expressed that they continue to work with the company due to a long and
fruitful relationship between both organisations, as well as the high quality of their products
and services. TTC's attention to detail and the Cross-hiring services offered were also cited as
reasons for customer loyalty.

5.2.3 What needs to change:

The focus group conducted by the consultancy group identified a few areas where the
company falls short. Customers felt that the company lacks consistency and makes changes
without consulting end users. Another major issue highlighted was the need to redesign or
replace some product lines, such as catering tents. Additionally, customers requested an
increase in the variety and availability of different patches and fabrics for repairs.

Overall, this focus group has revealed the USPs of the company that need to be
communicated to international markets. Essential factors include the product design and the
robust after-sale services offered by the company. The company should also focus on
maintaining its skill in establishing strong and fruitful relationships with customers, as well as
ensuring top-notch product quality.

5.3 The Tipi Academy Alterations

Regarding Deliverable No. 6

The focus group feedback has helped the consulting group to identify important adjustments
that will improve the Tipi Academy's effectiveness and appeal. The following changes are
suggested based on the information gathered:

Figure 8:

22
5.3.1. Immersive Virtual Reality (VR) Features: To provide participants a more interesting
and practical learning experience, incorporate interactive VR aspects into the academy.
Learners can immerse themselves in real-world scenarios associated with the tipi business by
incorporating VR technology, giving them the chance to put their knowledge and abilities to
use in a realistic setting. The use of VR seeks to present a thorough grasp of tipi assembly
and its constituent parts.

5.3.2. Tailored Content for Early Rental Businesses: Reorganise the course materials to better
serve the needs of early rental companies. The academy will place an emphasis on practical
tools and advice tailored to the rental business sector for beginners. By supplying them with
the required information and experience, the objective is to encourage and promote the
expansion of these ventures.

5.3.3. Diversified Scope: Extend the academy's focus to encompass topics unrelated to tipis,
building on the firm leadership's vision. This entails the introduction of courses that address
crucial facets of business administration, like financial management for rental firms. The goal
is to expand the academy's horizons to draw in a larger audience and disseminate useful
information outside of the tipi business.

5.3.4. Advanced and Practical Learning Elements: Update the academy's curriculum to make
it more sophisticated and targeted. The course materials will be specifically designed to meet
the demands of new workers and give them knowledge and abilities that they can

23
immediately use in their businesses. Delivering useful information that participants may use
in actual situations will be the main focus.

The Tipi Academy will experience a transformative makeover by implementing these

improvements, which will bring it into line with the goals and preferences of the focus group.
The academy is dedicated to making sure that it develops into a cutting-edge and useful tool
for early rental companies in the tipi market. The purpose of the programme is to empower
participants and support their success in the cutthroat rental market through the seamless
blending of theory and practise learning.

6. Concluding and recommendations

Figure 9:

6.1 Limitations

In pursuit of accomplishing the goals set by TTC, RVNX had to deal with certain limitations
that must be acknowledged to provide an accurate picture in this report. The acknowledgment
of these limitations is crucial because they may lead to overlooking important factors,
demanding thorough diligence to ensure any oversights are corrected. RVNX faced two
major limitations. Firstly, there was a lack of experience in contract negotiation with
suppliers, which might have resulted in imprecise estimates. To address this, the company
needs to bring in professionals who can guide the negotiation process and train the
management to understand various stakeholders' expectations while maintaining a good profit
margin. The second significant limitation was the difficulty faced in conducting on-the-

24
ground research. This was evident in the focus group, which only included two customer
representatives. Although efforts were made to correct for the small sample size, it was not
entirely effective. Additionally, conducting research in the Spanish market posed challenges
due to a lack of physical access and language barriers. Despite these limitations, this report
should serve as a valuable learning opportunity for TTC, enabling them to successfully adapt
their business model.

25
 7. Appendices

Appendix 1

Competitor Analysis
Competitor: Tentickle

Findings:
Tentickle is a South Africa-based company with distributors in 35 countries. The company focuses
on the event hire industry, targeting event planners, organisers, and creating new spaces for
existing venues. They also offer custom branded tents for company events and marketing.
Tentickle's major advertising avenues include their website, SEO optimisation, content creation on
blogs and directory listings, social sharing, and content syndication. Local level networking
conducted by different distributors and subsidiaries plays a significant role in their marketing
efforts to create and expand local event marketing. Tentickle's major unique selling point (USP)
lies in the innovative nature of their product, its quality, and utility, particularly its ruggedness and
adaptability to different environments. They also emphasise the flexibility of installation and
designing custom-made tents to provide bespoke solutions to users. A key marketing push
highlights that their tents are accredited by multiple international bodies like UKAS, ABCB, TUV,
and are IFR compliant. Their main business model involves creating subsidiary companies in
target nations that serve as distributors for those countries. This entails establishing a company in
the country and appointing a reliable and experienced person to act as Managing Director or
Managing Partner, based on local laws. Adaptations have been made for different countries, such
as having a manager oversee multiple countries or language groups, as seen with Tentickle Latam.
Another modification of this model involves collaboration with existing companies to act as
distributors in specific countries or areas of operations. The duties of the distributors primarily
involve surveying locations and erecting tents, but many also offer value-added activities like
repairs, storage, and tent upgrades. Some non-subsidiary companies may even serve as distributors
to other companies in different market niches. The only exceptions to this distributor business
model are the lines of bespoke and luxury glamping tent products, where the company prefers to
deal directly with campsites and resorts. Their marketing focus in this product line is on
sustainable tourism. There are two major lessons that The TTC can learn from Tentickle. The first
lesson involves the business model focused on decentralising all value-adding activities and
marketing to local distributor, while the core company concentrates on research and development
of new product lines. This flexible expansion and growth model allows each distributor to tailor
their business model to local conditions and networks, but it relies on trustworthy and competent
partners. The second lesson is in marketing strategy. Tentickle has successfully captured attention
online by effectively marketing their company and directing traffic to local distributors, resulting
in increased sales.

Key Learnings:

The Key learnings from this competitor is that a distributor-based business model can be flexible and

26
adaptable as each individual market has their own unique context to shape what activities are needed
to succeed. The flexibility allows the company to grow into disparate markets and make adjustments
without disrupting other markets.
It also showcases that constant innovation and R&D needs to be done to maintain a constant edge
over the competitors. A wider variety of product lines and different price point for a product line also
allow distributors tap into more diverse clients and different sectors like glamping or events hiring.

Competitors: Tentipi.

Findings:

Tentipi is a Swedish company that has been manufacturing Nordic tipis for 25 years. It operates primarily
in the event hiring and adventure tents industries, targeting adventure or hiking stores and the events hiring
industry for their larger offerings. The company's pride lies in the heavy environmental resistance of their
adventure tents, making ruggedness and safety the unique selling points (USPs) of their adventure line. On
the other hand, their event tents are focused on practicality and ease of use, especially in conjunction with
their Tentipi library, which offers advice and guidance to tent hire businesses. This pre- and post-sale
service adds a new dimension to the business, actively creating a market rather than tapping into existing
ones like Tentickle or The Tipi Company. Tentipi's business model differs from other companies as it is
segmented based on product offerings. For the smaller adventure tent series, they utilise central
distributors and stockists. In this model, the company has central distributors for major markets who act as
the point of contact for all retailers. Any adventure or camping supply store interested in stocking and
retailing the adventure tipis can contact these distributors, who will then provide the goods to the shops.
This centralised market structure requires fewer distributors for major markets as most of the marketing
and post-sale services can be performed by retail sellers, reducing the need for an extensive infrastructure.
The Tentipi library serves as a support tool for retailers if they need to develop skills to offer post-sale
services. This model is considered safer than Tentickle's distributor model since all the distributors can be
hand-picked. However, it relies on market demand to push retailers to contact the distributors. Tentipi
creates this demand through sponsoring and participating in adventuring activities, fostering a community
of like-minded customers. Their second model for their Nordic tipis is a more conventional distributor-
based model, where each country or market has its own distributor capable of establishing networks for
selling and hiring event tipis. This model can take the form of local partnerships or the creation of
companies to act as distributors and handle sales and after-sale service. Online resources further support
this model, allowing clients to be more self-sufficient and reducing costs for the company to maintain their
business. The major lessons that The TTC can learn from Tentipi are segmentation and market creation.
Tentipi creates different business models for different product lines, streamlining them to generate greater
sales. This approach allows them to tailor the business models to maximise efficiency for each product
line, rather than using generic models that are less effective. For healthy growth, there needs to be a
constant effort to create and expand the market for their product. Although resource and effort-intensive,
this strategy is crucial for capturing new parts of the market with less competition, especially in saturated
or underdeveloped markets. This dedication to market expansion is crucial for the long-term stability of
the business, even if it requires considerable effort that could be used elsewhere.

Key Learnings:

27
The key learnings here are how to segment the market based on product lines. This is a very important
lessons because different product lines have very different target audience and different channels of
distribution if they are to maximise profit for the company. For example, smaller brand lines like the
small hat Tipis can be spun onto more retail-based models as they are much easier to store for
retailers.

Appendix 2

Feasibility analysis framework for Spain

Appendix 3

Capability feasibility for spain

Based on The Tipi Company's prior experience

Logistical capabilities working with international clients, it is reasonable
to assume that the company can establish an
efficient logistical network between the Manchester
head office and Spain.

The organisation certainly has the right people in

place to manage the market entry into Spain,
Human resource capabilities particularly in the case of the subsidiary strategy. If
this strategy is chosen, it would require the
acquisition of more human resource talent in the
form of a foreign manager in Spain.

28
 Based on the director of the company, there are
inadequate digital transformation capabilities
within the organisation. Currently, all processes are
Digital Transformation
managed and designed by one person, necessitating
capabilities the need for development in this capability.
However, there are no foreseeable hindrances to
attaining this capability.

Although Google Translate allows for seamless

translation between English and Spanish, there is a
need to invest in more capabilities to understand
Linguistic capabilities
some of the nuanced aspects of communication, as
meanings can be lost in translation. Thus, there is a
need for improvement within this aspect.

Regarding the Spanish market, there are not many

Geographical limitations geographic limitations such as time sone
differences, as Spain is only one hour ahead.
mitigation capabilities
Moreover, there are not many barriers in regard to
mobility since Spain is close to the United
Kingdom, making logistical networks easier to
maintain.

Systems TTC can acquire the relevant software to monitor

distributor or subsidiaries, as it is vital to have
Systems that assist in monitoring and tracking key
metrics of distributors or subsidiaries.

Appendix 4

Activities Intended effect

 Training
 Regular
Communication The first element of the incentive plan is the building
 Listening and of personal relationships. Although this element is not

29
 Responding a reward, it is a key aspect of any good incentive
 Recognising structure, as the effort required to build good
Achievements relationships with the distributor ends up incentivising
 Personal the distributor to prioritise or consistently order from
Interactions the manufacturer. Thus, there needs to be a deliberate
Relationship effort to build good relationships. This involves clear
 Support and
building communication of expectations, understanding the
Assistance
direction of the distributor and their targets and
 Regular check ups priorities, and making a conscious effort to help the
 Collaboration on distributor meet those priorities.
Marketing Efforts
 Collaborative
growth
 Consistency and
Reliability

 Establishing
Systems to Report These financial compensations should be for elements
Sales such as achieving sales targets, adhering to branding or
Financial  Tracking of product installation guidelines, and undertaking
incentives Progression training. These financial incentives should be clear
regarding the progression to achieve them, and they
should not be mundane and superficial, as they will
become an activity to get a paycheck.

 Collaboration to
Non- financial Form Incentives The third aspect is the utilisation of non-financial
incentives  Brainstorming to incentives. These non-financial incentives encapsulate
Create Creative and rewards that are focused on providing an experience
Enticing obtaining them. This can be as simple as a competition
Experiences between distributors or the ability for the distributor to
choose a personalised gift from a list of options. Non-
 Creation of
financial incentives are all about creating an immersive
Personalised Gifts
experience that leaves a lasting impression on the
distributors. The company needs to be creative and
involve the distributors in the creation of these
incentives.

 Monitoring of
Product, The fourth step of the incentive plan is the rewarding
Installation, and of Activities or behaviours that enhance distributors
Brand knowledge. Distributors normally prioritise the
Representation products that they know, thus any activities that
Rewarding  Creating enhance the knowledge of the distributor of the
activities and Knowledge- product should be rewarded as well, as this will create
behaviours Building Training a distributor that has advanced knowledge of the
that enhance Sessions and product, which enhances the ability of the distributor to
The Materials market and sell the product.
distributors  Communications
product of Standards in
knowledge Best Practices
 Quizzes

30
  Updates on New
Practices

Appendix 5

Country Cultural Review

Spain is a vibrant and vivacious culture going back thousands of years. It is a
growing economy, more so than its other developed peers and is part of the EU.
But it’s not all sunshine and roses. The inflation has been really severe and there
is a high level of unemployment as well. All these forces have shaped the culture
of modern Spain and lead to transition away from the culture that the common
stereotypes would have you believe. Spanish consumers have been impacted by a
reduction in their real income due to factors of inflation. This has altered their
consuming behaviours. People are spending less money on luxuries and leisure
activities as well as becoming more receptive to price competition. Customers are
buying less amounts but buying more often as it allows them to avail more
schemes and or timed offers. This has made them more price hypersensitive and
more receptive to marketing efforts via price. It has led to a culture of not having
loyalty to any retailers as the people are constantly on the lookout for better deals.
Conversely, they are very difficult to satisfy as they have very high standards and
very high price sensitivity. Covid-19 has pushed the Spanish consumers to make
online purchases and now 77% of them buy some products online. There are
generally the following four type of online users. Suspicious and uncomfortable:
these consumers are generally not very digital-aware and are quite concerned
about exposing their private details on online platforms. This makes them
resistant to turning online buying into their main buying habit. Their
psychological involvement with a brand usually goes through traditional
channels. Digital-savvy and confident: these buyers have easily and seamlessly
adjusted to the rapid shift to online buying and are willing to buy from quality
brands and pay higher prices for their products. Impatient: these consumers are
entirely focused on the “here and now”, as the pandemic has left them feeling
uncertain and dubious about what the future may hold. Those buyers don’t
necessarily need all the information before making a purchase. Receptive and
Spain forward-thinking: these consumers are usually very young and digital-savvy,
ready to ride on the wave of fast-paced changes that the pandemic has brought
about. They happily accept and embrace online buying methods as their main (if
not only) way to purchase products and services. The most widespread and
impactful means of marketing to Spanish customers remains the television with
mass media being the major way that helps people discover new brands, but
digital marketing has been increasing its importance in the market as well with a
70% of people being influenced by it. Radio is also a major force in marketing
channels as over 60% of Spanish people still listen to the radio. In terms of
branding, sustainability and price control are the biggest determinants of people's
purchasing decisions. Due to its more extreme and volatile climate Spanish
people are more conscious of sustainability of products and it impacts their
decision making. On the more corporate side of the ladder, Spain has a huge
(15%) proportion of foreign workers so there is a large market for non-Spanish
speaking or oriented brands and as a major destination for tourism there are

31
 millions of people that are not Spanish at any moment in the country.
In the business sphere, it is a very hierarchical work environment but there is also
a lot of flexibility in how seniors and juniors can behave. As well as the
traditionally long lunch breaks, there has been increasing effort by foreign
educated youngsters that have been pushing the culture towards a more
multinational corporation type. But Spain has some very strict labour and digital
disconnecting laws, so it is important to keep that in mind. Overall, it is a great
opportunity market wise, but it will require dedicated effort to fit the company
and you cannot impose an external way of behaving on them.

Appendix 6: Check List for Spain

Key evaluation considerations Checklist

1. Availability of distributors
2. Previous Enquires
3. Economic conditions (Pestel Analysis)
4. Cultural conditions (Cultural analysis)
4. Industry conditions (Industry analysis)
6. Competitive atmosphere (Competitor analysis)

Appendix: PESTLE ANALYSIS: PESTLE

32
 Factor Description Example/Real Data

 Political Stability: Spain has  The government

experienced political stability in provides several tax
recent years, with no significant shifts breaks to
in government. As a result, the TTC international
corporation would be less vulnerable businesses and has
to the effects of political unrest on its streamlined the
operations. procedure of
 Government Policies: The Spanish incorporating a
government has put in place a company in Spain.
number of initiatives to encourage
international investment and
economic growth. This could render https://nomoretax.eu/
it easier for TTC to establish itself starting-a-business-in-spain-
and flourish in the Spanish market. understanding-the-legal-and-
tax-requirements/
 EU Membership: Spain is an integral
part of the European Union, allowing
it a foothold in a huge market and an https://www.lawants.com/
array of advantages, including free en/starting-business-spain/
movement of products and services.
POLITICAL This might be a significant benefit for
TTC, since it could enable the  Tipi's compliance
company to market its goods and with the EU's
services to a larger audience. common product
safety directive is
simplified when
selling items in the
EU.

https://
commission.europa.eu/
business-economy-euro/
product-safety-and-
requirements/product-
safety/standards-and-risks-
specific-products_en

ECONOMICAL  Economic Growth: The Spanish  By 2030, the Spanish

economy continues to be steadily GDP is estimated to
improving in recent years, and it is reach €1.2 trillion,
likely to develop further in the next and tourism sector is

33
 years. As a result, there will be an expected to generate
increase in the demand for goods and €100 billion in
services. revenue.
 Inflation: In Spain, inflation is
generally low, thus being beneficial
to TTC because it implies the https://economy-
company's costs will not rise as finance.ec.europa.eu/
quickly. Yet, inflation should be system/files/2023-05/
SWD_2023_609_1_EN_autr
monitored because it may rise in the
e_document_travail_service
future.
_part1_v4.pdf
 Unemployment: Because
unemployment in Spain is very high,
it may be difficult for Tipi firm to
locate skilled staff. However, the https://www.mckinsey.com/
government is taking initiatives to industries/travel-logistics-
minimise unemployment, which may and-infrastructure/our-
make it simpler for Tipi to find insights/next-stop-for-
personnel in the future. spanish-tourism-excellence-
sustainability

 The Spanish digital

economy is predicted
to grow at a 15%
annual rate.
https://espanadigital.gob.es/
sites/agendadigital/files/
2022-01/Digital-Spain-
2025.pdf

 Demographic Trends: The Spanish By 2030,

population is ageing, which may  the Spanish
indicate a decline in demand for some population is
goods and services. However, there is predicted to reach
an increasing population of young 47.7 million,
people in Spain, which may  number of people
counteract the reduction in demand aged 65 and over is
SOCIAL from the elderly. expected to increase
 Changing Lifestyles: People in Spain by 25%
are becoming more interested in  The number of
outdoor activities including hiking. people aged 15 to 29
This could be beneficial to TTC is expected to
because it indicates the need for its increase by 10%
products and services is increasing. https://
worldpopulationreview.com/

34
  Cultural Values: Entrepreneurship countries/spain-population
and creativity are often encouraged in
Spanish culture. This might make it
simpler for the TTC to enter and https://www.statista.com/
flourish in the Spanish market. statistics/1231682/
population-of-spain-over-65-
year/

https://www.statista.com/
statistics/271056/age-
distribution-in-spain/

 Tax rebates for new

businesses and grants
for research and
development are
among the policies in
place to encourage
entrepreneurship and
innovation.
https://dobetter.esade.edu/
en/startup-law

TECHNOLOGICAL  Internet Usage:Since the use of the  The average

internet in Spain is significant, TTCis Spaniard spends 6
capable of reaching a big number of hours and 42 minutes
potential clients through online every day online.
channels. https://
 Social Media: In Spain, social media www.thinkspain.com/news-
is widely used, and TTC can utilise it spain/32699/spain-spends-
to engage with potential consumers six-hours-a-day-online-two-
and advertise its products and on-social-media-says-global-
research
services.
 E-commerce:While e-commerce is
developing in Spain, TTC may offer  69% of the Spanish
its products and services online. population uses
social media sites
such as Facebook,
Instagram, and
Twitter.

https://datareportal.com/

35
 reports/digital-2022-spain

LEGAL  Regulations: Businesses in Spain are  Product safety

required to follow a variety of regulations:
restrictions. TTC must follow these It encompasses standards
regulations and ensure that it is in governing the materials used
conformity. in the items, as well as their
 Intellectual Property Rights:Spain has construction and labelling.
stringent intellectual property
regulations. TTC should take care of
https://
its intellectual property, including
administracion.gob.es/
trademarks and patents. pag_Home/en/Tu-espacio-
 Dispute Resolution: The legal system europeo/derechos-
in Spain is firmly established. If TTC obligaciones/empresas/
has a problem involving a customer productos/defectuosos-
or supplier, the dispute can be seguridad
resolved through the legal system.

 E-commerce
regulations: This
covers rules
controlling the online
selling of products
and services, the
security of consumer
data, and the
payment of taxes.

https://
uk.practicallaw.thomsonreut
ers.com/w-013-3726?
transitionType=Default&con
textData=(sc.Default)

 Labor regulations:
This comprises
regulations
regulating employee
hiring, wage
payment, and
working
environment.

36
 https://iclg.com/practice-
areas/employment-and-
labour-laws-and-
regulations/spain

 Environmental
regulations: This
comprises
regulations
governing trash
disposal,
consumption of
energy, and natural
resource
preservation.

https://
uk.practicallaw.thomsonreut
ers.com/0-521-6274?
transitionType=Default&con
textData=(sc.Default)&firstP
age=true

ENVIRONMENTAL  Sustainability: In Spain, there is a  In accordance with

developing market for survey conducted by
environmentally friendly products the Spanish
and services. TTC can promote itself government, 72% of
as a sustainable firm by incorporating Spanish consumers
sustainable materials into its are worried over
products, reducing its environmental sustainability. Spain's
effect, and supporting sustainable government
practises. proposed a proposal
 Climate Change: Spain is one in 2021 to invest
amongst the most affected countries €140 billion in
by climate change. Extreme weather renewable energy by
occurrences including droughts, 2030.
floods, and heat waves have become
more common in the country. The https://
impact of climate change is also www.investinspain.org/
wreaking havoc on the country's content/icex-invest/en/
economy and environment. Solar sustainability.html

37
 panels, energy-efficient appliances,
and water-saving gadgets are
examples of products and services  The Spanish
that TTC might produce to assist government has
reduce the consequences of climate established a goal of
change. cutting greenhouse
gas emissions by
55% by 2030.
https://www.reuters.com/
business/environment/spain-
set-more-ambitious-2030-
emissions-reduction-target-
source-says-2023-05-23/

Appendix: Industry Analysis:

Industry Research: Spanish Event Market

The event industry in Spain is rapidly expanding, with an estimated value of €11.7 billion in
2022 and a projected increase to €13.2 billion by 2027. The country's strong tourism
economy, a growing number of corporate events, and the expanding demand for MICE
(meetings, incentives, conferences, and exhibits) events are driving this rise.

https://www.creagroupevents.com/en-US/agenda/spain-leads-the-events-market-in-
europe

https://www.digitaljournal.com/pr/news/imarc/spain-events-market-poised-for-growth-
forecast-indicates-5-80-compound-annual-growth-rate-during-2023-2028

The Spanish event market is divided into three major categories:

1. Corporate events: Conferences, trade exhibitions, and product debuts are examples of
such events. The corporate events market dominates the Spanish event market,
representing 40% of its overall value of the market.

https://www.alliedmarketresearch.com/events-industry-market

2. Mice events: Mice events are the second most important section of the Spanish event
market, representing for 30% of overall market value Meetings, incentives, conferences, and
exhibitions are examples of such events

https://hotelfriend.com/blogpost/mice-for-hoteliers

38
https://mitmagazine.co.uk/News/The-Spanish-MICE-industry-mobilises-to-return-to-safe-
events

3. Leisure events: Concerts, festivals, and sporting events are examples of such events. The
leisure events market in Spain is the least significant category, making up 30% of the overall
market value.

https://www.eif.org/what_we_do/guarantees/cultural_creative_sectors_guarantee_facility/
ccs-market-analysis-europe.pdf

Although the market is focused on big cities like as Madrid, Barcelona, and Valencia, there is
an increasing demand for events in other parts of Spain such as Andalusia and the Canary
Islands. The event market in Spain is competitive, with renowned event organisers as well
as specialised firms catering to certain groups.

https://www.statista.com/outlook/dmo/eservices/event-tickets/spain

Additional Considerations:

- Seasonal demand exists in the Spanish event market, with peak times occurring
throughout the spring and summer months.
- Price-sensitive consumers in this sector desire value for money.
- Technology is important, with digital technologies increasingly being employed for event
promotion and management.

https://www.expertmarketresearch.com/reports/spain-events-market

Competitive Landscape:
Key players in the Spanish event market include:

1. Fira de Barcelona: Fira de Barcelona is a public business that manages and owns
a variety of Barcelona exposition and conference centres. Every year, the company
organises over 300 events, drawing more than three million guests.
2. Gran Via Events: A private company that specialises in corporate event planning
in Madrid. The organisation has over 100 skilled professionals on staff and provides
an extensive selection of event services.
3. Ifema Madrid: Ifema Madrid is a privately held company that owns and runs a
variety of Madrid exhibition and conference centres. Every year, the firm organises
over 700 events, bringing over 5 million guests.

39
4. Grupo Eventur: Grupo Eventur is a private firm in Spain that specialises in the
organisation of leisure events. The company employs more than 50 skilled
professionals and provides a comprehensive range of event services.
5. Meeting Ways: A private company that organises Mice events in Spain. The
company employs more than 30 skilled individuals and provides a comprehensive
range of event-related services.

https://www.businesswire.com/news/home/20220330005518/en/1135.4-Bn-Events-Market-
by-Type-Revenue-Source-Organizer-and-Age-Group---Global-Forecast-to-2028---
ResearchAndMarkets.com

https://www.businesswire.com/news/home/20230703696127/en/Spain-Data-Center-Market-
Report-2023-A-2.68-Billion-Market-by-2028---Investment-Analysis-Growth-Opportunities---
ResearchAndMarkets.com

Competing Effectively:

To be successful in the Spanish event market, TTC must:

- Gain a comprehensive awareness of market categories, customer demands, and

preferences.
- Provide a distinct value proposition that distinguishes TTC from competition.
- Concentrate on providing great customer service, innovation, or sustainability.

TTC may position itself for success and growth in this growing industry by aligning its
strategy with the dynamics of the Spanish event market and efficiently answering consumer
requests.

40