Global Marketing Strategies and Techniques

This assignment delves into the realm of global marketing, covering various strategies, techniques, and success stories. It includes a review of key literature on international marketing, globalization, and competition, as well as an analysis of Porter's generic competitive strategies. The assignment also touches upon market selection processes, segmentation, targeting, and positioning (STP) methods, and the importance of knowledge management, brand orientation, and global marketing strategy in performance. It concludes with a review of relevant online resources, providing students with a comprehensive understanding of global marketing principles and practices.

GLOBAL MARKETING

TABLE OF CONTENTS
1.0 Introduction to report........................................................................................................2
2.1 Summaries from assignment 2........................................................................................2
3.0 Screening of selected markets .........................................................................................2
3.1 Stages of Process of Market Selection ............................................................................3
3.1.1 Reason Behind Market Selection .................................................................................4
3.2 Objectives.........................................................................................................................4
4.0 Appropriate market strategies as new organization..........................................................5
4.1 Alternative selection of target market and positioning.....................................................7
4.2 Process used for market selection.....................................................................................9
4.3Positioning for selected markets as manufacturing industry ..........................................10
4.5 Alternative generic strategies ........................................................................................10
5. Recommendations ...........................................................................................................11
5.1 Mode of Entry in Market ...............................................................................................12
5.2 Targeting the market.......................................................................................................12
5.3 Strategy of positioning...................................................................................................12
5.4 Generic strategy..............................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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1.0 Introduction to report
Global marketing is wide term that describes the promotion of business at international
level and also includes the expansion of products (Douglas and Craig, 2011). In this scenario,
Analysis of BHP Billiton is to determine opportunities for firm to expand its business in
international market. Screening of markets is taken in to consideration for the selection of
appropriate market. Various strategies of market selection are considered which helps the firm to
determine the target customers. At last, market segmentation, targeting, positioning, strategies
are also defined which are suitable for firm to expand its business operations.
TASK 2
2.1 Summaries from assignment 2
From analysis of report, it has been summarized that it focuses on analysing the
opportunity for the company to enter new foreign market. In this, BHP Billiton company is taken
in to consideration, which is dealer of coal in Melbourne, Australia. Market analysis of coal
industry of Thailand determines that coal power energy is a significant source and its demand
will continuous rise in demand in the future. Data analysis has determined in year 2036 as
compared to year 2014 (Matanda and Ewing, 2012). There is a continuous rise in market size and
rates of growth in Thailand.
Reports of United nations and foreign trade barriers has determined that there is a
continuous rise in population and it influences demand of coal power energy in Thailand.
Analysis of BHP organization provides an understanding that it is market leader of commodity
items like iron ore, LPG, Coal and diamonds. Prices of coal is determined by the tariff and duties
which are imposed by ministry of petroleum and energy in country. Analysis of internal and
external environment has determined the situation of BHP in international market. Application of
models has provided a completed understanding of stakeholder that provides impact on the
operations of BHP Billiton such as competitors, consumers, government and suppliers. It is
considered that the company has the threat with its competitors, which they will resolve through
introduction of new strategies.
3.0 Screening of selected markets
Marketing at global level involves various activities, which determines the opportunities
for the firms to enter in to new market. It is considered significant for the firms to targets
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appropriate markets by considering market constraints- demand and supply that are in the
market. For the expansion of marketing and business operations, BHP Billiton has to analyse the
characteristics of market (Cheng, Kotler and Lee, 2011.). Analysis of competitive situation is
which determines that the entity can expand its business in Thailand as there is continuous rise in
demand and it has threat of only two competitors. Various approaches are considered by the
firm, which determines the application of selected market in which it will introduce the products.
In the coal industry, USA is considered as biggest exporter of coal energy to Thailand but data
are considered which defines that there is a continuous rise in the demand of coal as it will be
used as a major resource for the development of energy. BHP will have to incremental approach
for the selection of market in which it requires fewer resources. It is also suitable for entity as it
provides an experience of entering in to different markets.
3.1 Stages of Process of Market Selection
From the analysis, it has been determined that firm has to use an appropriate process of selection
of appropriate market. There are five steps of process which are mentioned below
Stages Description
Stage 1 Domestic legislations and
preferences of management
It mainly involves the
recognition of basic
legislations of government and
should understand the
preference of management for
selection of appropriate
market.
Stage 2 Assessment of initial entry It involves the identification of
challenges which are to be
faced in new market. BHP
Billiton at this stage will
analyse the market threats and
challenges such as threat of
competitors, High bargaining
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power of suppliers etc. It will
select the market in which
they face low risk.
Stage 3 Competitive analysis At this stage, competitors
policies and practices are
analysed by firm and decisions
must be taken on the basis
appropriate evaluation. It also
involves analysis of rise in
market demand of products.
Stage 4 Market Responsiveness For the market selection , firm
should analyse the future
demand of products and
growth of economy of
country. There is high demand
of coal in Thailand in future
which has been notified by
government as it is a main
source of developing Coal
power energy.
Stage 5 Analysis of Internal trade off At this BHP Billiton will have
to analyse the financial and
non-financial resources which
they to compromise to enter in
to new market. BHP has
selected the market of
Thailand as it requires low
investment in comparison to
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other countries.
 Domestic legislations and preferences of management: In this stage, before the
selection of appropriate market, managers of BHP will analyse the legislations and rules
framed by government of Australia and analyse the impact, which they provide on
expansion of business in other markets. Figure has determined that there is positive
impact of legislations as under TAFTA 94% of the goods in Australia are tax-free and
duties on the coal and other products (Julian, Rezaei and Amin, 2014).
 Assessment of initial entry: At initial stage, it is significant for the firm to identify the
challenges which they face while selection and entering in to new market. In this
scenario, some challenges are analysed which are faced by BHP Billiton while taking
entry in to new markets such as policies of government, threats of competitors and
suppliers bargaining power which impact the business of firm (Fletcher and Crawford,
2014). In Thailand, conditions are favourable for BHP Billiton and they have an
opportunity to introduce their business.
 Competitive analysis: For the selection of market, BHP will analyse the situation of
market environment and demand of products of competitors. USA is a greater competitor
of BHP Billiton which is considered as biggest exporter of coal in Thailand (Armstrong,
Kotler, Harker and Brennan, 2015).
 Market Responsiveness: During selection of targets markets, BHP has determined that
there is great responsiveness of market. Data analysis has determined that requirement of
coal in Thailand will increase in the future. Government also has planned to construct
three power plant by the year 2024 which will regulate from coal.
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 Analysis of Internal trade off: For the selection of appropriate markets, it is significant
for BHP Billiton to analyse the risk and funds which they have to sacrifice for the
achievement of profit in market.
3.1.1 Reason Behind Market Selection
For the expansion in coal industry, Thailand is considered as suitable market for BHP
Billiton as there is continuous rise in demand of coal in market. Analysis of market shows that
there are some competitors of firm like Rio and Bantu. Firm has threat from USA which is an old
and biggest supplier of coal to Thailand. The main reason behind the selection is rise in demand
of energy which will grow 2.67 % annually (Berthon, Pitt, Plangger and Shapiro. 2012). Reports
of government have determined that power generation will grow by 10000 MW. Thus, the
demand of coal will automatically rise as it is major source of production of energy.
3.2 Objectives
Firm is global leader regulating its business its main aim is to become an appropriate firm
of choice for its stakeholders, business partners and host communities. They want to achieve the
profitability without harming the people, competitors and host countries (Griffith and Hoppner,
2013). Their objective is to achieve the market share by continuing its international operations in
host countries and own the assets at low cost. They have developed SMART objectiveness which
are described below:
 Specific: It is objective of BHP to increase its global market share by 10 percent as
compared to its competitors.
 Measurable: Aim of increasing share of 10% is appropriate and measurable in numerical
terms.
 Achievable: The target is achievable if appropriate marketing plan will be developed by
managers of firm.
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 Realistic: This component define that target must be real and existing in nature. The aim
of rise in market share by 10% is appropriate should be achieved by firm.
 Time bound: Firm will achieve its defined objective in a Span of years which is
appropriate and measurable.
4.0 Appropriate market strategies as new organization.
There some strategies which are suitable for BHP Billiton to enter in to international
market of Thailand as new supplier of coal which are mentioned above:
Competitive advantage: It is considered as an advantage achieved over rivals by offering high
perceived value to customers as compared to competitors (Armstrong, Kotler, Harker and
Brennan, 2011). It will be exercised by BHP Billiton as it provides high quality of coal at
competitive prices.
Analysis of modes of entries in foreign market has determined that the firm is export based entry
in to market of Thailand. Firm will communicate its USP to prospective one that are operating in
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Illustration 1: SMART objectives
(Source 1: Griffith and Hoppner, 2013)

foreign market to convert them in to customer. By doing so it will easily enter in to foreign
market.
Market entry
strategy
Examples Advantage Disadvantage Justification
Exporting Exporting coal to
small companies
in Thailand
It basically
involves low
investments
which is suitable
for firm to
achieve a
competitive edge
on competitors.
Have to provide
the products at
lowest possible
prices at less
profitability.
No establishment
of plant as they
will only export
coal. Low
investment is
needed in
exporting coal,
less tariff and
duties.
Licensing Allowing firms to
sell their products
like diamonds and
iron ore under
their name.
Increasing brand
reputation and
increase in
profitability.
No brand image
as they are
exporting their
goods to other
company.
Less tariff under
the free trade
agreement
(TAFTA). Low
investment they
only export there
coal to other
company.
Joint venture Creating joint
venture with other
firms like Banpu,
Rio etc.
1. Achievement
of market share
and probability.
2.Reduced
competition.
3.Low
investments
Share the
profitability.
No separate
functionality.
Require to
establish plant by
making
agreement with
other country for
a specific period.
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 Exporting: It is an alternative strategy for the firm which is suitable for the firm if they
want to enter at lowest level in retailing of coal (Douglas and Craig, 2011). It basically
involves low investments which is suitable for firm to achieve a competitive edge on
competitors.
 Licensing: This is suitable for BHP Billiton if they will allow other firms to sell their
products like diamonds and iron ore under their name. It is suitable strategy which
involves movement of process of technology from home country to host country.
 Joint venture: For the expansion of business in international market, BHP Billiton has
opportunity to utilize strategy of creating joint venture with other firm existing in market
of Thailand.
4.1 Alternative selection of target market and positioning
For the expansion of business operations in Thailand, BHP Billiton will target the low
profitability firms to achieve the appropriate demand of coal. It will also target the Small-scale
enterprises or private firms which provides the energy to government (Gillespie and Hennessey,
2010). Analysis of strategies has determined that firm will use low cost leadership for targeting
specified companies.
Geographical segmentation strategy: It is a strategy in which the prices of products will differ in
geographical areas of country. It is suitable for BHP Billiton for attracting the firms existing in
Thailand and provide appropriate quality of coal at competitive prices.
 Competitive positioning strategy: In this, Firm will use strategies used by competitors
and it will determine its quality of products to customers by comparing it with quality of
competitors (Positioning Strategy, 2017).
 Price Positioning strategy: It is most suitable strategy in which the firm will position its
product by determining difference in prices of products as compared to competitors. It
will provide coal at low prices.
Option Target Market Positioning Strategy Marketing Mix
1 Small scale industries
in coal industry like
Rio, Banpu
Competitive
positioning strategy
Product: Coal, iron
ore.
Price: These are
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decided as per the
rate prevailing in
market and
government duties.
Place: Bangkok,
Thailand
Promotion: Exporting
coal at low prices,
joint venture with
power energy
industries.
2 Geographical areas
like northern Thailand
Price Positioning
strategy
Product: Coal, iron
ore and diamond
Price: These are
decided as per the
rate prevailing in
market and
government duties.
Place: Northern
region, Thailand.
Promotion: Increasing
joint venture,
exporting goods to
small scale industries.
Preferred Strategy Geographical pricing Price Positioning
strategy
Product: Coal, iron
ore and diamond
Price: Limited
pricing strategy
Place: Northern
region, Thailand.
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Promotion: Increasing
venture through
exporting Coal to
other companies.
4.2 Process used for market selection
 Segmentation: Most appropriate process which includes distribution of market on the
basis sections. Firm has used the strategy of Geographical segmentation in which they
will differentiate prices of products in different geographical areas of country.
 Targeting: At this stage, firm will target the geographical in which there is no supply of
rivals like Rio, Banpu. It will attract the small private firms which supply energy to
government of Thailand at lowest level (Slater, Hult and Olson, 2010). It will use the
direct exporting strategy in which it will coal to targeted firms.
 Positioning: Another step of market selection process in which BHP Billiton will use
low cost leadership strategies in which it will focus on geographical areas where they can
easily grow and achieve the market share.
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4.3Positioning for selected markets as manufacturing industry
Analysis has described that if BHP will be considered as organization based on
manufacturing products then it will use the differentiation strategy. It will position its business
through developing products which differ from rivals. It will create a joint venture Small scale
industry which supplier of coal in Thailand. Acquisition of other firms is also suitable option for
firm to position its business at high level.
4.5 Alternative generic strategies
In this scenario, porter” generic strategies which are described below:
 Cost leadership strategy: This is an appropriate strategy based on providing products at
lowest possible prices. Effective strategy for BHP Billiton as there are some competitors
which affect the business. At initial stage, firm will supply its coal and other products at
low prices to achieve the market share.
 Differentiation strategy: Most effective strategy based on creation of extremely
differentiated goods and services to develop the demand position the business (Ko and
et.al., 2012). It will appropriate for firm if they will change the system of product
delivering or either by decreeing prices in some areas. For example: Firm will
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Illustration 2: Market selection process
Source 2: (What is the STP Process, 2017)

differentiate their business by providing products at low prices in some areas and change
the method of delivering the products. It will take benefit of brand image in some areas.
 Focus strategy: This is a strategy which combines both the other strategies such as: cost
leadership and Differentiation. Basically, it is based on serving few segments and areas of
market.
 Cost focus: In this, firm will focus on exploitation of cost of products in some
geographical areas or segments of market in Thailand (Naidoo, 2010). It will also focus
on the segments which are poorly or not served by the competitor firms.
 Focus on differentiation: It is an appropriate plan in which company will focus on
exploitation of specific requirements of customers or buyers. For example: providing
service of shipping in overseas country.
Analysis of strategies, have determined that low cost leadership strategy will be suitable
for BHP Billiton to position its business in Thailand.
Cost focus strategy: above analysis provides an understanding that BHP should apply
this strategy for expansion of business in Thailand. As new market entry, it wills suitable for firm
to focus on prices of products of competitors and should also provide its products at low prices.
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Illustration 3: Porter's generic strategies
(Source 3: Porter's Generic Competitive Strategies, 2017)

As there are no restrictions of government and less tariff is charged of export of coal under free
trade agreement.
5. Recommendations
5.1 Mode of Entry in Market
BHP Billiton will enter in coal industry of Thailand on the basis of export in which it will
supply its products to firms in Thailand at lowest possible prices. It also has opportunities as it
provides products at competitive prices. It will increase the marketing of products between the
targeted firms and achieve the objectives of the organization.
5.2 Targeting the market
From the above analysis, it has been determined that the firm has targeted the small firms
which are exiting in market. It will also create relationship with large scale organization for
analysing their strategies of attracting the customers. (Adams, 2011). It is also considered that
BHP has opportunity of growth and there is a continuous rise in demand of coal in the future.
5.3 Strategy of positioning
Most beneficial strategy which is used BHP will be Competitive positioning strategy in
managers will use the same strategy of marketing their products which are used competitors.
They will promote their sales be determining the difference in the quality of products (Czinkota
and Ronkainen, 2013). It will provide benefit to the organization and help in achieving the target
customers.
5.4 Generic strategy
Most suitable strategy for BHP Billiton would be one which includes both low cost
leadership and differentiation of products through prices and quality. They will focus on
providing appropriate products at lowest possible prices. Low cost strategy will benefit the firm
as it has they are taking new entry in to market (Porter's Generic Competitive Strategies, 2017).
Differentiating focus will help the for targeting specific segments of country in which there is no
supply of competitors’ products. In international business context, firm will select the strategy of
price positioning strategy which is suitable for the firm as new entry. It will target the
geographical areas of Thailand in which they will supply coal to small firms who develops
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power energy and supply to government. It will products like coal and iron ore top targeted firms
and retailer in the northern region. They will make a joint venture with other firms in the
Thailand. As an international business firm they will formulate a business plan with other
company and share equal profitability. For the expansion of business in China they have
opportunities as there is an agreement between china and Australia which provides benefits to
the organization. Research has defined that BHP has done venture with other companies Four
Mills in China named as:Wuhan, Maanshan , Tangsha, and Jiangsu Shagang group.. Further, it
can be said that firm will use appropriate focusing strategy in which it will concentrate on both
the factors' cost and differentiation of products.
CONCLUSION
In this report, it has been concluded that marketing plays a significant role in expansion
of business at global level. Analysis of various strategies have defined the opportunities for firm
dealing in mining and coal industry to expand its business. Research of BHP Billiton has defined
that the company has an objective to expand its operations in overseas market. Application of
market selection strategies have determined that firms will achieve its desired position if they
target small firms and use geographical segmentation to target customers. At last, it is also
analysed that firm will enter in to the market as an exporter of coal and use the generic strategy
to increase its marketing and achieved target market.
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REFERENCES
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Cheng, H., Kotler, P. & Lee, N., (2011.) Social marketing for public health: global trends and
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Czinkota, M.R. & Ronkainen, I.A., (2013). International marketing. Cengage Learning.
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Porter's Generic Competitive Strategies, 2017, [Online]. Available through
:<http://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-strategies/
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Positioning Strategy, 2017, [Online]. Available through
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What is the STP Process? 2017, [Online]. Available through
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