BUSINESS STRATEGIC MARKETING

This strategic marketing report explores market analysis, entry strategies, market segmentation, and competitive advantage for Dorothy Perkins in Denmark. It covers PESTEL analysis, market-entry modes, target market evaluation, and Porter's generic strategies.

BUSINESS STRATEGIC MARKETING
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Table of contents
Introduction......................................................................................................................................3
1. Recommend a product or a service and a country and provide a macro-environmental
analysis (PESTEL) explaining the possible opportunities as well as threats your client could face
within the market of your recommended country and provide possible solutions..........................4
2. Critically assess three modes of the market-entry that could be suitable to your client. Out
the three options, make a recommendation with justification as to the most appropriate one........9
Task 3.............................................................................................................................................11
Applying the concepts of market segmentation and targeting critically evaluate the potential
target market of client....................................................................................................................11
The total population of Denmark...............................................................................................12
4 Appling porter’s generic strategy, explain how a client could gain competitive advantage by
adopting one of the generic strategies in recommended market....................................................14
Conclusion.....................................................................................................................................16
Reference:......................................................................................................................................17
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Introduction
Strategic marketing is a process of researching and investing the target market for an
organization to grow and run flawlessly. It requires thinking outside of box capacity or creativity,
which takes ample amount of time and energy to complete. If followed carefully an organization
can never stay behind in the competitive and ever-changing market. It provides some strategic
advantages to an organization so that an organization may have an upper hand in this ever-
changing competitive market. It carefully evaluates the possible threats, its own possible
weaknesses, and strength and come up with new plains for long-term plains of operations on an
organization.
From the following brief a complete and overall image of strategic marketing is given. It shows
an overall macro market and possible product and services that can be beneficial to the
organization. It also shows the process of accessing the possible market in a country. A
competitive market needs a strategic advantage it also shows the methods to achieve a strategic
advantage.
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1. Recommend a product or a service and a country and provide a macro-
environmental analysis (PESTEL) explaining the possible opportunities as well as
threats your client could face within the market of your recommended country and
provide possible solutions.
Each business company needs to expand in different country to make their business global. The
marketing consultant of Ashanti Marketing Solutions has prepared this given report. The client
Dorothy Parkins wants to expand their business in Denmark; this is why they have asked for
help. In order to achieve or reach towards a standard goal in the market of Denmark, there are
few factors and models, which will give the strategies to achieve it. The Macro-environment
analysis is one of them (Bouwman et al., 2017). The full form of the word PESTEL stands for:
 P- Political
 E- Economical
 S- Social
 T- Technological
 E- Environmental
 L-Legal
Figure 1: The macro-environmental factors (PESTEL factors)
(Source: Bouwman et al., 2017)
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Political factors In the competitive enhance of productivity in
the sector of private and public a political
agreement is made on the package of
competitiveness. The country Denmark has a
very strong export sector. This is the major
reason; the rate of GDP growth improves every
year, even after the recovery of the Euro zone
crisis (Bharwani and Mathews, 2017). The
growth of GDP is expected to grow on the
large scale of higher margin with the expected
passage of time, as per as the entire region is
on a verge to recover a political crisis situation.
Keeping all this political factors in mind the
brand Dorothy Perkins in Denmark.
Economical factor Denmark has the Danish economy that is
usually considered as modern and prosperous,
the total cost revenue goal of the country is
$353.1 billion in the year of 2017, with the
CARG of 1.9% in the coming five years. Now
there is the brand named Dorothy Perkins, who
wants to expand in Denmark. For several years
the countries cost increased faster than the
other countries (Lysons and Farrington, 2016).
In order to make the growth and improve the
growth of the productivity, the government
planned to start the reform from 2020. The
economical growth of Denmark is very fast
and developing, this is why the brand Dorothy
Perkins can expand to this country.
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*Social factors The general people in the society of Denmark
are generally characterized by the fulfillment
of the general needs of the social needs in the
maintained in the circle of few of the close
friends and family (Rahman et al., 2017). Most
of the people in the country give the major
focus to lead a comfortable lifestyle, this is
why they choose to have higher housing
standard for them. The economical growth of
Denmark is very fast and developing, this is
why the brand Dorothy Perkins can expand to
this country On the other hand there is a clear
picture of a comfortable lifestyle. This is why
the brand Dorothy Perkins has the huge
prospect t develop there.
Environmental factors In the year of 1992 Denmark was the first
country in EU to introduce the factor of Tax on
CO2. The ministry of climate and energy of
Denmark worked for the purpose of reduction
of greenhouse gas; it was not only in Denmark,
but worldwide as well (Brooks, et al., 2014).
As per as Dorothy Perkins wants to expand
their business in Denmark, it need to focus on
the factor of weather of the country. The
weather is pretty much suitable for the purpose
of logistic and storage. The for the sake of the
continuous rain and heavy fog makes an
impact on the transport of the path of airways
and roadways.
Technological Factors Denmark is one of the technologically
advanced companies so far. They have some
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noticeable rankings in the world such as clean
tech innovation, best energy system, life
science, energy, world’s best education system,
most advanced IT country, global creativity
index, and world’s most contended scientists
and so on (Allen, 2016). Denmark’s digital
infrastructure and high IT penetration made it
the best country for the new media IT. In the
sector of bioengineering and enzyme research
Denmark plays a major role in it as well. This
is why if the brand Dorothy Perkins decides to
expand in Denmark it is going to get the best
technological advancement to run their
business.
Legal Factors In the country Denmark has the highest civil
and criminal court for the sake of the
administration. The entire court laws may
disputes in various legal areas such as
administrative, civil, labor and constitutional
laws while keeping the criminal justice in
mind. The court of revision and indictment
handles and complaints about the procedure
and the justice of disqualification as well. It
explains that the legal systems of the country
are quite sorted then it will be easier to expand
the business in Denmark.
Table 1: PESTLE analysis
(Source: Created by the Learner)
Though the factors such as the Political factors, Economical factor, Social factors, Technological
Factors and legal factors are quite suitable for the brand Dorothy Perkins. The environmental
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factor is the only thing, which can be a major threat towards the business. This is why Denmark
can be a good place to expand the business if the company can manage the factor of environment
(Lieberman and Montgomery, 2018).
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2. Critically assess three modes of the market-entry that could be suitable to your
client. Out the three options, make a recommendation with justification as to the
most appropriate one.
There is different kind of ways to entre in one foreign market. These kinds of decisions have a
significant effect on the result of the brand. There are few modes to enter the foreign market. As
the brand named Dorothy Perkin want to entre in the foreign market, so here three modes to enter
in a foreign country.
Exporting:
The term exporting stands to explain the way when a brand tries to sale their domestic product in
another country. This particular way is usually considered as the traditional and well established
way to reach towards a foreign market. Since exporting has nothing to do with the factor of
producing the material in the particular company where they want to expand their business, so it
has no investment in the production of the country (Kruesi and Zámborský, 2016). In the case of
exporting, it only requires coordination among four people, they are mentioned below.
 Importer
 Exporter
 Government
 Transport provider
Dorothy Perkins is considers itself to be a developing brand. For this reason exporting can be a
good option as the entry mode in a new country. They just have to keep a single thing in mind
that is the weather in Denmark can be a burden to them.
Licensing:
Licensing gives a company the particular permission to use its property in the purpose of their
business. This mode is very important for Dorothy Perkins, because they obviously need space
and property and resources of the country to expand their business. In order to have the License
to grow business the company Dorothy Perkins needs to pay certain amount of money, so that
through this they will be able to use the resources they want to.
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The reason after this is, such investments are there to be making in order to make the brand
successful. The major power of licensing is to provide a large amount of ROI. Hence, Because of
the factor of licensing it produces and markets the product, potential returns directly from the
marketing and activities (Turban et al., 2017).
Foreign Direct Investment:
Foreign Direct Investment or FDI basically states about the factor of direct ownership of the
targeted country. It involves various kinds of things such as the facts of technology, personnel
which includes the capital. Foreign Direct Investment is basically the combination of the factor
through the acquisition of the strong establishment of a new enterprise in a new business
organization and includes the existing entity as well.
Foreign Direct Investment makes a business organization free in various factors, such as the
control of the operational systems and gives them an opportunity to know their customers in a
more potential way. The entire process of FDI needs a lot of commitment for the business, as per
as the brand named Dorothy Perkin want to do that, this is why this mode of entry is also very
important for them.
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Task 3
Applying the concepts of market segmentation and targeting critically evaluate the
potential target market of client.
To enter into a market, an organization needs to understand the segmented parts of that market.
There can be different ways to market segmentation but mostly it is based on age, sex, religion
and others jointly called as demographic segmentation. A segmented market helps in better
understanding of possible consumers. A right approach is always required by a particular
organization so that they can capture the market as fast as possible. The business objectives and
stakeholder’s interest should always be taken into consideration. To protect the interest of
stakeholders and the organization the segmentation of market should qualify some key criteria.
Some of those criteria are a group should be recognizable and relevant, they should be clearly
and truthfully defined yet must be recognizable from one another so that each of the consumer
can be identified, they should be easily accessible and consumer should be constant over time.
For example, in a garment industry in United Kingdom, shirts are more famous among men
compared to women so an industry will automatically come up with better ways to sell new and
innovative shirts and target the men to buy those (Degn et al., 2015).
After understanding the market segments, a garment industry should target critically evaluated
groups to whom an organization wants to sell its product. Acadia is a United Kingdom based
company, which has created different brands over time. Some of them are Burton, Dorothy
Perkins, Evans, MissSelfidge, Top man, Top shop and others. It has its footprints in most of the
country Denmark being one of them where it has stablished its Topshop brand and want to
penetrate with Dorothy Perkins. (Moutinho and Vargas-Sanchez, 2018)
Denmark has a population a little over 5million in 2018 out of which 2.88 million are male and
2.9 million females. Acadia group’s Dorothy Perkins that specializes in women’s clothing. Since
the women population is higher than the male, it is a very good potential market for Acadia
Company to expand its business in this country (Banerjee, 2017).
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The total population of Denmark
Figure 2: Population of Denmark
(Source: Banerjee, 2017)
The number of immigrants is fairly high in this country who are mostly familiar with this brand.
Dorothy Perkins sells fashionable cloths which are widely famous among the youngsters and
middle ages indivisibles. Denmark has a strong currency to afford the goods imported from
different countries. Gross domestic product of kingdom of Denmark is over 300 million which
states that it is developed country. To do a business in a developed country comes with its own
risk and rewords. A widely famous brand always invests in its goodwill in a developed country a
company cannot risk to destroy its brand name the company has to be very careful to do busing.
Any new company going to do a business in a new country need to go for executive PR
campaign the company cannot depend on advertisement to do signified commercial venture.
Since this is a developed country, there are various other clothing brand available such as Wood,
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armoire d’homme, Rascals, Soul land and others. Therefore, in order to stay ahead of others
Dorothy Perkins needs to come up with new discounts and offers. For example,Soulland sells it’s
last out of season cloths in very less price in order to clear the stock with minimum profit
margin. Dorothy Perkins needs to come up with better and innovative ideas to maintain it’s brand
name and sell its clothing line efficiently. Soul land was formed in 2002, which is relatively new
compared to any other companies in the Denmark this company ever since than this company
has grown a lot. Soul land’s effortless combination of high fashion, classic menswear, skate ware
and street wear helped than gain a huge chunk of the market. To stay in the business, they
recently added painted t-shirts in their selling products along with many others. To stay in the
business Dorothy Perkins needs to come up with some similar and more innovative ideas. And
always stay careful with the brand name. Dorothy Perkins should learn from their other similar
brand history and should never repeat the same mistake for example, Live’s in 2009 decided to
stay with the same type of cloths when it’s compotators were experimenting and expanding their
products. They did not realize that being innovative is always helpful to business (Dietrich,
Rundle-Thieleand Kubacki, 2016).
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4 Appling porter’s generic strategy, explain how a client could gain competitive advantage
by adopting one of the generic strategies in recommended market.
A companies’ position compared with its competitive partners from the same industry shows
their portion of profit. There can be only two types of competitive advantages as per porter
generic they are low cost or differentiation. Two basic competitive advantages, which a
company tries to achieve, lead them to three different generic strategies they are, cost leadership,
differentiation and focus. These strategies have two different focus they are cost focus and
differentiation focus (Moon et al., 2014).
Figure 3: Porters’ generic strategy
(Source: Moon et al., 2014)
Cost leadership
In cost leadership company try to reduce the cost of the product by reducing expensive material,
less wastage, skilled workers, efficiency in production, better technology and many others. Any
company receiving low cost product to sell will have a strategic advantage in selling the product
and will be considered as above average among its computations. Achieving lower cost does not
always mean there is a strategic advantage they also need to make sure that their product is
selling near their competitor’s product.
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If Dorothy Perkins achieves this objective before penetration into the Denmark’s they will have
an upper hand in the market. Having a lower cost product to sell in the market always helps in
fixing the price of the product. If the brand started giving a lower price product in the market
than they will start losing their “Giffen” effect. Sometimes a brand doesn’t follow the normal
demand and supply chain giffengoods and services challenges the law of marginal utility in
every economy throughout history (Adner et al., 2016).
Differentiations
In this strategy, a company always tries to maintain and conceive its uniqueness despite being in
an oligopoly market. A company always tries to uniquely position itself in order to satisfy the
needs of the consumer. For example, a person wants to buy a car he or she may go for Jaguar,
Bentley, Land Rover and many other’s but he or she decided to go for Land Rover. The reason
being it has been proven to be reliable and luxuries. Same way the company need to give its
consumer a “reason “why they want to take that brand despite the availability of other brand in
the market (Fallesen, 2016).
Dorothy Perkins is not the only female cloth selling company there are other companies which
sell cloths. Dorothy Perkins needs to give the consumer of Denmark why their cloth is better
than others. The reasons like which famous celebrity uses their brand or how comfortable and
fashionable their brand is and many others. They should always carefully evaluate their strategies
towards advertisement because advertisement performs a very important key role in the sales of a
clothing line product.
Focus- There is a very small and narrow scope in terms of competition in an oligopoly market
stated by Potter’s in generic strategy. The focus of the group in a company should always be in
two basic variants. They are, cost focus & differentiation in the same market or both.
DorothyPerkins should make its research on what part it should focus its business. They should
carefully evaluate their strength and weakness before entering to the market. They should always
do their research on what methods are required to be applied in and which approach needs to be
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taken before entering. They should higher skilled sales man and workers so that their goals and
desire can be converted into reality (van Lierop and El-Geneidy, 2017)
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Conclusion
The business company needs to expand in different country to make their business global. In the
competitive enhance of productivity in the sector of private and public a political agreement is
made on the package of competitiveness. The country Denmark has a very strong export sector.
The economical growth of Denmark is very fast and developing, this is why the brand Dorothy
Perkins can expand to this country. The economical growth of Denmark is very fast and
developing, this is why the brand Dorothy Perkins can expand to this country. This particular
way is usually considered as the traditional and well established way to reach towards a foreign
market. In order to have the License to grow business the company Dorothy Perkins needs to pay
certain amount of money, so that through this they will be able to use the resources they want to.
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