Global Consumer and Marketplace

This report provides a critical evaluation of Bentley Motors and its presence in different markets. It also proposes strategies for entering a new market, specifically Japan. The report discusses the needs and characteristics of the target market and provides recommendations for Bentley Motors. The strategies of direct exporting and joint venture are compared, and the rationale for the recommended strategies is explained.

Global Consumer and
Marketplace
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Table of Contents
INTRODUCTION...........................................................................................................................3
Section 1: Critical evaluation of the organisation...........................................................................3
About the organisation and its presence in different markets................................................3
Why is Bentley Motors currently strong in the market..........................................................3
Relationship with customers...................................................................................................4
Analysis of Bentley Motors using theories............................................................................4
Information in the public domain...........................................................................................5
Section 2 : Proposal of strategies to enter a new market.................................................................5
Strategies to use when entering a new market........................................................................5
Needs and Characteristics of the target market......................................................................5
Difference in the needs and characteristics of target market from customers in current market6
Recommendations..................................................................................................................6
Comparison of alternative strategies......................................................................................7
Rationale.................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
The global marketplace involves all the customers or possible customers for a particular
product or service in the different geographic areas of the world that are considered together
(Czarnecka and Schivinski, 2019). It is important because organisations get an access to a large
base of customers across the world which not only leads to an increase in their overall
profitability but also brand awareness. Also, companies get a chance to establish long-term
relationships with other companies in different geographic regions. Organisation chosen for this
report is Bentley Motors, a British manufacturer of luxury cars. The company was founded in the
year 1919 by W.O. Bentley and H.M. Bentley. The report explains the communication mix,
relationship marketing strategies etc. Lastly recommendations regarding how to understand and
satisfy the needs of target market are also provided.
Section 1: Critical evaluation of the organisation
About the organisation and its presence in different markets
Bentley Motors is an international manufacturer of luxury cars that is headquartered in
United Kingdom. The company is about a 100 years old and was founded in the year 1919. the
company offers a wide range of products that range from used to new cars, trucks, vans wagons
and SUVs. The company is known for its luxury cars that are hand built and made in England.
All cars are popular for their modern style and design that is primarily inspired by the heritage of
cars and and exceptional attention to details (Stubbe, 2019). The company has operations in
different geographic regions across various parts of the world. The respective company, Bentley
Motors was acquired by Rolls Royce in the year 1931 and later by Volkswagen group in the year
1988. Each car that is manufactured by Bentley is handcrafted with great skills and an eye for
detail (Bentley Motors Limited Story, 2020). Not only this, the company believes in providing the
most seamless and luxury experience to its customers. This is one of the reasons why the
company keeps innovating its products, especially with its vintage cars in order to satisfy the
needs of customers.
Why is Bentley Motors currently strong in the market
Due to consistent innovation of the products as well as services, the company has been
able to maintain its strong position in the market and also gain a competitive advantage against
competitors. The products that are provided by the company are manufactured by taking into
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account even the smallest details. The communication mix of Bentley Motors comprises of the
different ways that the company uses in order to promote itself and its products in the market.
The company uses various innovative marketing schemes to advertise its cars. The company
believes in standing out from the competitors as well as maintaining the strong image of its
brand. Bentley does not aggressively promote its brand (De Mooij, 2019). But in order to
advertise its products, it uses various promotional media like sponsoring events, associations and
movie promotions. It does not use any mass media channels like radio, television etc. The
company also conducts various relationship marketing campaigns in order to retain its customers
for a longer period of time. Therefore, these are some of the reasons why Bentley Motors is
currently holds a strong position in the market and stands out from the competitors.
Relationship with customers
Bentley Motors shares a strong and long-term relationship with its customers. It has a
separate team that is responsible for addressing the any issues or feedbacks raised the customers.
It is extremely important for an organisation to build and maintain long term relationships with
their customers. This is because they can significantly contribute to the overall success as well as
profitability of the firm (Swammy, Thompson and Loh, 2019). Bentley keeps on innovating its
products by implementing advances in mobile technology in order to provide a luxurious and
seamless experience to the customers. Apart from this, the company also offers various features
wherein the customers can personalise their cars. Exceeding the expectations of the customers is
also one of the reasons why Bentley Motors has been able to maintain strong and lasting
relationships with the customers (Gonzalez-Fuentes, 2019). The company also has separate
pages on various social media platforms like Instagram and Facebook, wherein it engages with
the customers and understand their needs as satisfy the same in an effective manner. Positive and
strong relationships with the customers has helped Bentley in maintaining a strong position in the
market. Also, the customers are loyal to the brand which is why it is difficult for the competitors
to attract them.
Analysis of Bentley Motors using theories
Porter's Five Forces Model
Threat of New Entrants – This is a weak force because Bentley Motors is already a well
established company within the market and any new entrant will require a considerable amount
of investment to build a strong brand image.
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Bargaining Power of Suppliers – This is a weak force because there are a lot of
suppliers in the industry and the company can easily opt for another supplier.
Bargaining Power of Buyers – This is a strong force because buyers possess the power
to shift to the competitors if they are not satisfied with the products and services that are offered
by Bentley Motors.
Threat of Substitute Products – This is a strong force because the competitors of
Bentley can offer products that are more innovative and unique.
Rivalry among Competitors – This is a strong force because Bentley Motors operates in
a highly competitive and dynamic environment. And there are a lot of brands that can affect the
overall performance of the company.
Information in the public domain
Therefore, the degree of competition within the auto mobile industry is very high and
Bentley Motors is required to adopt the most relevant marketing strategy in order to enhance its
overall performance as well as profitability in the Japanese market.
Section 2 : Proposal of strategies to enter a new market
Strategies to use when entering a new market
There are many strategies that an organisation can use when entering a new country for
the first time. In context of Bentley Motors, the company is considering to expand its business
operations in Japan (Grier, Thomas and Johnson, 2019). For that, the company is using the
strategy of direct exporting wherein it will directly sell its products within the Japanese market.
This will be done either through different intermediaries like foreign retailers or distributors in
that market. There are many advantages of adopting the direct exporting strategy because there
are high chances that the company can make increased profits because the intermediaries that
are involved in the process are eliminated. Apart from this, the overall control regarding different
expenses is within the hands of the company (Gurel-Atay and Kahle, 2019). As an alternative,
the company can also opt for a joint venture wherein it can sign an agreement with another
company in order to operate collectively.
Needs and Characteristics of the target market
The target market of Bentley Motors is Japan wherein the needs as well as characteristics
of the consumers are different from the consumers within the existing markets. Customers within
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the Japanese market are more inclined towards the brand orientation and lay an increased focus
on the quality as well as prices of the products. Most of the Japanese companies offer products
that are safe and secure, therefore this is another characteristic of the customers within the
Japanese market. They consider safety to be one of the most important aspects. Customers in
Japan often complain of even a slightest defect in a product. This shows that they have a keen
eye for detail. Also, they like innovative and unique products, so if Bentley offers such products
there is a high chance for it to attract a greater number of customers. Luxury is one of the major
needs of the Japanese market as the customers desire such products and services.
Difference in the needs and characteristics of target market from customers in current market
The current needs and characteristics of the existing market is that the customers seek
luxury in the products that they purchase. Not only this, the home market of the company, the
United Kingdom continues to perform strongly (Haeder, Weimer and Mukamel, 2019). The
characteristics as well as needs of the customers within the existing market are known to Bentley
motors and thus, the company implements various strategies in order to retain them. On the other
hand, the customers in the Japanese market look for products that are highly innovative and offer
unique features. They also want products that are manufactured using high quality material and
are fresh. Japanese people are also conscious about brands and do not prefer buying products that
are offered by a random brand. They are also conscious about safety as well as security and do
not risk their money at any cost.
Recommendations
It is recommended that before entering the Japanese market, Bentley Motors should
conduct a market research. This is because it will help the company in understanding the needs
as well as characteristics of the customers. Not only this, the company will also get useful
insights about the purchase behaviour of the customers as well as their expectations from a
luxury car brand. Since Japanese customers look out for innovation in the products, it is
recommended that Bentley Motors should incorporate new features within the models that it
would launch in the respective market (Laroche and Teng, 2019). Moreover, the company is
recommended to opt for joint venture as an alternative strategy to enter the new country. This is
because it will not only help it in attracting a greater number of customers but also contribute to
its overall profitability in a significant way. Lastly, the company is also recommended to keep
the customers engaged by posting regular updates on different social media platforms.
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Comparison of alternative strategies
Bentley Motors is implementing the strategy of direct exporting wherein it will sell its
products either through various intermediaries or sell the products through distributors. There are
many merits of implementing this strategy, one of them being that the company will gain a better
knowledge about the target market. Not only this, Bentley Motors will have a complete control
on the products and will earn attractive returns (Minielly, Hrincu and Illes, 2020). This will
further lead to the company gaining an enhanced expertise and knowledge of operating
internationally. As an alternative strategy, the company can consider forming a joint venture.
This will contribute to the overall capacity of the company and also provide an access to various
resources like finance and technology. Also, risks as well as profits are shared by both firms due
to which no negative impact is caused to the overall performance of individual firms (12
Advantages and Disadvantages of a Joint Venture, 2019). Lastly, the company will be able to
develop networks and relationships.
Rationale
The recommended strategies for Bentley Motors are direct exporting as well as joint
venture. Both these strategies can influence the overall performance as well as profitability of the
firm in a positive way. This is because the company will get an opportunity to understand the
needs as well as expectations of the customers in en effective way (Steenkamp, 2019). Also, if
the company decides to opt for a joint venture, the risks as well as profits will be shared by both
the firms. This will reduce any threats that the company might had to go otherwise if it had opted
for any other strategy. As far as customers are concerned, they will get an opportunity to
purchase products from a brand that is unique and operates internationally. Therefore, it can be
said that the overall impact will be positive and the company will be able to attract a greater
number of potential customers.
CONCLUSION
From the above report, it can be concluded that in order to enter a new country or market,
an organisation can adopt various strategies like joint venture, direct exporting etc. Also, the
needs as well as characteristics of the customers within a particular market differ from those in
the new markets. Thus, it is important to understand the needs as expectations in depth so that
they can be addresses in an effective manner.
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REFERENCES
Books & Journals
Czarnecka, B. and Schivinski, B., 2019. Do consumers acculturated to global consumer culture
buy more impulsively? The moderating role of attitudes towards and beliefs about
advertising. Journal of Global Marketing. 32(4). pp.219-238.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Gonzalez-Fuentes, M., 2019. Millennials’ national and global identities as drivers of materialism
and consumer ethnocentrism. The Journal of Social Psychology. 159(2). pp.170-189.
Grier, S. A., Thomas, K. D. and Johnson, G. D., 2019. Re-imagining the marketplace:
Addressing race in academic marketing research. Consumption Markets & Culture.
22(1). pp.91-100.
Gurel-Atay, E. and Kahle, L. R. Eds., 2019. Consumer Social Values. Routledge.
Haeder, S. F., Weimer, D. and Mukamel, D. B., 2019. A consumer-centric approach to network
adequacy: access to four specialties in California’s Marketplace. Health Affairs. 38(11).
pp.1918-1926.
Laroche, M. and Teng, L., 2019. Understanding the global consumer culture: Views from eastern
and western scholars, an introduction to the special issue. Journal of business research.
103. pp.219-221.
Minielly, N., Hrincu, V. and Illes, J., 2020. A view on incidental findings and adverse events
associated with neurowearables in the consumer marketplace.Ethical Dimensions of
Commercial and DIY Neurotechnologies. 3. p.267.
Steenkamp, J. B. E., 2019. Global versus local consumer culture: Theory, measurement, and
future research directions. Journal of International Marketing. 27(1). pp.1-19.
Stubbe, B., 2019. The Future of the US-EU Covered Agreement: How to Drag an Absurdly
Federalist Regulatory System into the Global Reinsurance Marketplace. Minn. J. Int'l
L.. 28. p.217.
Swammy, S., Thompson, R. and Loh, M., 2019. Crypto Uncovered: The Evolution of Bitcoin
and the Crypto Currency Marketplace. Springer.
Online
12 Advantages and Disadvantages of a Joint Venture. 2019. [Online]. Available
through:<https://businesstown.com/12-advantages-and-disadvantages-of-a-joint-
venture/>.
Bentley Motors Limited Story. 2020. [Online]. Available
through:<https://successstory.com/companies/bentley>.
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