Strategic Marketing for Bristol Cars Limited in Argentina

This report provides a detailed explanation of strategic marketing and its importance for Bristol Cars Limited in Argentina. It includes an analysis of the microenvironment, market entry modes, market segmentation, and marketing strategies.

Individual
Management Report

EXECUTIVE SUMMARY
This is the report which mainly provides detail explanation about the meaning and
concept of strategic marketing. Along with this is the report consist of importance of strategic
marketing which leads towards the business operations in an effective manner. It is the
marketing strategy which assist in developing effective action plan which help in attaining
organisational goals and objectives positively. In this report, Bristol Cars Limited is chosen as
the base company which mainly deals in manufacturing in automotive sector. After examining
their current market profitability, company decides to launch “Driverless car” within the market
of Argentina. It is the report categorised into is various parts which includes an analysis of micro
environmental factor so that management team of the company will be able to identify their
threats and opportunities in Argentina. Apart from this, there are various entry options used by
managers of Bristol Cars Limited such as Joint venture, Merger & Acquisition and many more.
There is a section which includes market segmentation and targeting which is used by Bristol
Cars Limited so that they can provide these services and products at the market of Argentina. At
last different marketing strategies are included in this report which assist in attaining competitive
advantage at new marketplace.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
PESTLE..................................................................................................................................5
Market entry mode...............................................................................................................11
Market Segmentation............................................................................................................13
Porter's generic strategy........................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCE.................................................................................................................................17

INTRODUCTION
Strategic marketing is define as a set of various activities which is performed by
organisation in order to differentiate itself at the marketplace. With the assistance of this,
company will be able to create value of the goods and services provided by them to their
customers. Along with this, strategic marketing assist in examining the requirements and
demands of their target market so that they can make effective decisions which assist in
enhancing their success rate (Adelino, Schoar and Severino, 2012). In the present report, Bristol
Cars Limited is chosen as the base company which is a United Kingdom based automotive
vehicle company. They perform various business operations which is accompanying with
manufacturing & trading of luxury cars which is hand-built. Management team of Bristol Cars
Limited decides to expand their business functions by introducing “Driverless car” within the
market of Argentina. In this report discussion has been made on an analysis of various threats &
opportunities available at the marketplace of Argentina. This is done with the help of PESTLE
analyses of the country. Apart from this, various entry modes are going to be examined in this
report which will assist them in different ways.
MAIN BODY
It has been identified that Bristol Cars Limited is a automotive company which is based
in UK and decides to do a business expansion so that they can grab various opportunities
available at the marketplace. For this, managers of the company should chose Argentina as it is
the country which have wide range of scope in the sector of automotive. In the present context,
company wants to make business expansion with the help of new and innovative technology
which should be Driverless cars. In such types of cars, driver just need to enter the destination
and provide command according to their requirements. In addition to this, it also includes
charging facility where driver need to charge it rather than filling the fuel in it. But it is also
required for the company to examine and analyse the macro environmental elements which
highly affects the business functions in both positive and negative manner. For this, managers of
Bristol Cars Limited use PESTLE framework (Ang, Benischke and Doh, 2015).
It has been said that Bristol Cars Limited going to launch Driverless cars in the
marketplace of Argentina. This will assist them in order to enhance their current market share
and grab ample number of opportunities available at the competitive marketplace. Apart from

Argentina, there are 3 other countries where they can expand their business functions. They can
expand their business functions in Japan, Indonesia and Mauritius. Before expanding their
operations managers need to identify their current environment so that they can develop effective
strategies, policies and plans. It has been analysed that all these countries have strong economic
system which assist them in order to perform their activities in an effective manner.
PESTLE
It is define as an effective framework which mainly focuses on all the external elements
which affects the business functions of an organisation. With the assistance of this, Bristol Cars
Limited will be able to identify different threats & opportunities available at the marketplace of
Argentina. All these factors must be consider while developing business policies and strategies to
perform their business functions. PESTLE analysis is conducted by the management team which
are as follows:
Political factor:- There are various types of variables included in political factor which is
associated with the governmental rules and regulations. Some of these factors includes labour
law, taxation policy, political stability or instability in the overseas market, trade restrictions,
environmental law and many more (Brenes, Montoya and Ciravegna, L., 2014). Political
environment of the country must have governmental stability, effective taxation policy,
transparency among political framework as well as effective foreign trade regulations. If all these
elements present within a country iy will develop positive response for the whole organisation.
assist In context of Argentina, it has been analysed that it is considered as one of the richest &
wealthiest nation within South America. Reason is that it has large number of mineral &
agricultural resources. Apart from this, it has also been said that Government of Mauricio Macri
contribute their share in order to enhance the regulatory framework as well as to facilitate
different business organisations (Argentina. 2018). It is the action which create various types of
opportunities for their entrepreneurs & investors.

Opportunity: Government of the country support new, innovative as well as creative
business organisation, therefore they will support Bristol Cars Limited in various ways. This as a
result act as an opportunity for the company as they financially assist their innovation.
Threat and possible solution: Government of Argentina focuses on enhancing the
regulatory structure so that they can ensure that governmental intervention is very high in context
of business creation. This as a result develop various issues for Bristol Cars Limited as it is
necessary for them to take permission from the government and for this they need to hire
effective and potential legal advisor.
Economic factor:- It is the factor which includes economic growth pattern, inflation rate,
foreign exchange rate, interest rate and many more. Apart from all these elements there are
various factors which need to be included in economic condition of the country which consist of
unemployment rate, inflation rate, disposable income, flow of money within the country and
many more. All these variables have positive impact on the performance of business functions. It
is required for the company to examine their economic factor before doing business expansions
at international marketplace. In the context of present report, economic system of Argentina is
enhancing and improving on a continuous basis (Brouthers, 2013). Government decides to
improve their infrastructure so that they can attract large number of investors towards their
country. Along with this, automotive industry within Argentina have very strong appearance

reason behind this is that government of the country motivate and encourage international
companies to perform their business functions within any hurdles.
Opportunity:One of the biggest opportunity for Bristol Cars Limited is that company is
getting various opportunities while they do business expansion in Argentina. Reason behind this
is that infrastructure of the country is very high which assist in attracting large number of
customers towards their organisation. Along with this, it has also been said that company is
providing Driverless cars to their customers which needs High-Tech technology which is very
costly for the company.
Threat and possible solution: Apart from this, major threat which is faced by Bristol
Cars Limited is that there is rise in the inflation rate of which is approx 26.9%. In order to
overcome this situation, Bristol Cars Limited use high quality material which is required for
performing their business functions. It is the country which is rich in resources assist in doing
business operations in a positive manner.

Social factors:- It includes dispositions and shared convictions of individuals which
incorporate variables like age conveyance, vocation frames of mind and so on. It is define as the
factor which includes different perception of individuals, change in lifestyle, values, culture,
attitude and many more. All these factors together modify the requirements and needs of
consumers present at the marketplace. In the present context the number of inhabitants in
Argentina is persistently rising which is 43.6 million which results in expanding joblessness rate
that is around 8.467% of absolute work power (D. Banker Mashruwala and Tripathy, 2014).
Opportunity: One of the serious issues looked by Argentina is that it has a maturing
populace that demonstrates to be an open door for Bristol Cars Limited. As matured individuals
may confront issue while driving a vehicle. Subsequently Driverless vehicle will help them in
this issue.
Threat and possible solution: Significant danger that might be looked by organization
is consistently expanding joblessness rate which has direct negative effect upon per capita salary
of a people live in the public eye. It is considered as a risk for Bristol vehicles, their innovation is
driverless vehicle which is of costly in nature. One of the answers for defeat from the risk is
about thought of such innovations and apparatuses which results in generally decrement of
operational expense

Technological factor:- It incorporates elements like mechanical headways, development
of new innovation and so on that influence’s tasks of firm. In the present context of Argentina, it
has been analysed that government of the country started investing more funds for identifying
new and innovative technologies, providing funds to the R&D teams so that business
organisations carry out their functions in an effective manner. With the improvement in economy
of Argentina the vehicle generation and its deal is relied upon to develop (De Villa, Rajwani and
Lawton, 2015). The legislature of Argentina is progressively engaged toward reinforcing the car
area and R&D limit by pulling in financial specialists from remote so as to improve the
foundation and mechanical offices of nation.
Opportunity: The vehicle deal or creation is low from most recent multiyear, Bristol Cars
Limited has a chance to manage over market with its new Driverless vehicle innovation. Since
there is less challenge present in showcase due in delayed down of creation.
Threat and possible solution: The possibility of Bristol Cars Limited to bring "Driverless
vehicle" is novel and new to advertise which may require greater venture all things considered
innovation is absent in Argentina which make it harder to produce such vehicle on pre assessed
spending plan. For guaranteeing its legitimate execution of undertaking Bristol Cars Limited can

take its specialized specialists with them to Argentina which may define plan according to the
condition present before organization. Aside from this they can likewise direct its workforce to
work in a way that help in accomplishing the longing objective.
Legal factor:- These are those factors which impacts upon the working of an
organisation due to some special rules and regulations made by the government for some specific
business or industry impacting negatively or positively on the performance of an organisation. It
is define as the factor which includes different elements such as rules, regulations, legal
formations and many more which assist the business entity in order to perform their functionality
in a positive manner. The possibility of favourable and non-favourable impacts, both are possible
(Malshe, 2013).
Opportunity: As government is supporting financial specialists and representatives to
bring their assets or contribute their cash toward the improvement of nation it is an open door for
Bristol Cars Limited. As they don't need to pursue severe or extensive lawful systems for setting
up business which is simpler to deal with their activities and it additionally brought about less
cost.
Threat and possible solution: One of the biggest threats for the company is that there are
ample number of regulations developed by the government which as a result create lot of
mistake within the organisation. In order to reduce such complicity within Bristol Cars Limited,
company need to hire legal advisor within their organisation.
Environmental factor:- At the end of PESTLE analysis environmental factor is included
which includes change in climate, weather, current environment situation and many more. In the

present context of Argentina, it has been analysed that all the resources are overexploited by the
individuals living within the country (Zalengera and et. al., 2014). along with this, rise in the
population affect the rural areas as it destroy the natural beauty of the country which create
negative impact on the nature.
Opportunity:One of the main opportunity for Bristol Cars Limited is that they are going
to introduce “Driverless car” in the marketplace of Argentina which can be run through
electricity. This will assist in reducing air pollution which attract large number of customers
towards their organisation.
Threat and possible solution:Due to raise in negative impact on the environment,
government of the country develop new rules and regulations which need to be follows by each
and every organisation. This as a result creates threat for the organisation. In order to overcome
such type of threat R&D department of Bristol Cars Limited must assess all the environmental
standard which is developed by the government of Argentina and have to follow them while
producing goods and services at the marketplace.
Market entry mode
It is define as a decision which is taken by organisations into to enter into international
market area with new products and services. In context of Bristol Cars Limited, managers

decides to expand their business functions at the market of Argentina with the help of Driverless
Cars (PANDEY, 2017). It is one of the most unique and creative technology therefore company
have wide range of scope. There are some specific types of modes which is used by organisation
are as follows:
 Merger & acquisition:- Merger refers to the process of combining or joining two or
more business entities, mainly working within similar level. But on the other hand,
acquisition is define as the process where a business organisation completely takes over
the other firm. One of the biggest advantages for Bristol Cars Limited is that company
will create more profitability and value at the marketplace. This is because, two or more
companies work together which will assist in gathering resources, funds and skilled staff
to beat the competition at the marketplace.
On the other hand, main disadvantage of selecting Merger & Acquisition is that
sometimes it creates negative image of the company as other company might not have
positive image at the marketplace. For example, if Bristol car limited merger which other
company who have not skilled workforce might affect the business operations in a
negative manner (Srdjevic, Bajcetic and Srdjevic, 2012).
 Joint Venture:- It is define as one of the most crucial factors where an agreement
between two or more companies take place and decides to pool various resources in order
to commence new project. In case, if Bristol Cars Limited use this strategy as a entry
mode it will provide various benefits to the companies. This as a result provide various
opportunities to the companies at the competitive marketplace.
Along with the advantages, there are some disadvantage of using this mode as it
requires acceptance and approval from their partners before taking any kind of action
which is associated with business organisation. This as a result create conflicts and
disputes among partners which is time consuming and confusing (Tansey, Spillane and
Meng, 2014).
 Strategic Alliance:- It is define as a legal contract among two or more than two
independent firms in order to cooperate in the process of sale, development of goods and
services and in manufacturing products. It is a tool used by organisations which doesn't
focus on developing new entity rather than including collaboration of two or more

entities in order to attain their common objective which is separated from each other after
completing their task.
With the help of above stated report, it has been said that there are various options
available in front of Bristol Cars Limited. Managers of the company use strategic alliance as it is
one of the most appropriate strategy as the major aim behind this is that they develop a
partnership with some other well-established automotive organisation for a particular period of
time frame. Main benefit of this approach is that management team of Bristol Cars Limited will
acquire resources with the help of their alliance partner which assist in reduces the overall cost of
the company.
Market Segmentation
Market Segmentation define as an effective marketing concept which assist in
categorising the market area into various small subsets on different basis. This basis includes
taste, culture, preference, demand and requirements of customers. With the assistance of
segmentation, organisations will be able to reach their customers who have similar kind of needs
and elements. In the present context of Bristol Cars Limited, managers of the company decide to
made business expansion in the market area of Argentina. Therefore, it is required to examine
the needs of market, customers and then segment it accordingly. Company decides to launch new
and innovative products which is Driverless Cars where their target customers are those
individuals who have high income level (Ülengin and et. al., 2014). Therefore, Bristol Cars
Limited segmented their customers based on demography.
Demographic Segmentation is done by companies so that they can attract right type of
people in order to sell their products. Along with this, market is divided on the basis of gender,
age, religion, income, nationality, size of family and many more. This is the type of segmentation
used by managers of Bristol Cars Limited so that they can divide their customers according to
their income level. For launching new cars at the marketplace of Argentina, it is required to `
identify individuals who have high level of income and have buying power of customers.
Target Market:
Target market define as a group of individuals, people and customers to which products
as well as services is aimed. It refers to the market area where organisation wants to sell their
goods and services to the customers. In order to launch new car, which is Driverless Car,
managers target high income level of customer so that they can gain positive response from

customers. Capable and potential customer for the chosen company is high class people who can
afford such type of luxury driverless car (Wedel and Kamakura, 2012).
Segmentation of a market is done in two categories which includes for consumers and for
industry. In case of consumer, segmentation is based on needs, wants, usage, benefits and many
more. It includes demographics where age, level of income, gender, size of family is considered.
On the other hand, psychographics includes segmentation based on lifestyle, values, culture and
attitude of individuals.
In case of industry, segmentation is based on size, needs, wants and sector where they
deal. In context of demographics, size, location, current suppliers, technology used are includes.
On the other hand, in case of psychographics, characteristics of decision maker is considers
while segmenting the target market.
Porter's generic strategy
In order to establish and to achieve sustainability in an effective manner at the new
marketplace it is quite important for Bristol Cars Limited to develop effective strategies.
Therefore, to attain the sustainability as well as competitive advantage it is required by the
management team to adopt Porter's generic strategy. In context of Bristol Cars Limited, this
model is going to be discussed as follows:
Cost leadership:- According to this strategy, it is suggested to the management team of
the company that whether they offer low price products and to ensure broad market share within
average price that is high demand of products. This as a result assist in maintaining the price of
product low. For example, if managers of Bristol Cars Limited use this strategy it will assist in
attracting large number of customers towards their product which is “Driverless car” at
affordable price (Wilkinson, 2013). And for this, managers need to focus and control their
internal process. With the assistance of this, company will be able to reduce their production cost
and beat the competition available at the marketplace. But it has also been said that it is new and
upgraded technology which requires expensive manufacturing process. Therefore, managers will
not be able to provide low cost products to their customers.
Differentiation leadership:- It refers to the strategy which suggest a business
organisation to target large number of market share in order to gain competitive advantage by
differentiating themselves within the industry. This means developing new and unique goods and

services at the marketplace. With the assistance of this, Bristol Cars Limited sell their Driverless
Cars at high and premium cost as it is having unique features in it.
Focus Strategy:- According to this strategy, managers need to target niche market as
well as within this segmentation they must try to attain differentiation or cost advantage. In the
context of cost advantage managers must target narrow market and segment and then provide
goods and services within low cost. But in context of differentiation, managers must focus in
order to offer products with unique elements and feature and having no competition available.
But it is required in differentiation focus that there must be strong brand image and loyalty
within customers. It is necessary for an organization to make sure that the goods offer by them
remain unique so that they can beat the competition. For instance, managers of Bristol Cars
Limited might apply this type of strategy so that they can fulfil differential requirement of
consumer in Argentina (Wilson and Gilligan, 2012). This will assist them in order to attain trust
within the market which as a result provide competitive advantage to them. But on the other
hand, Bristol Car Limited, try to focus on each and every market and they attract high income
people for this. Therefore, it is considered as one of the best strategies for the company.
With the help of above-mentioned PESTLE analysis model, it has been concluded that all
these strategies play very essential role. All the above-mentioned strategies assist in attaining
competitive advantages at the marketplace. In case of Bristol Cars Limited, one of the most
effective and appropriate strategy is Differentiation leadership. This will assist them in order to
introduce new and innovative car which is Driverless car within the marketplace of Argentina.
With the assistance of this strategy, organisation will cover its cost by selling their new products
(Zalengera and et. al., 2014).
CONCLUSION
As per the above stated report, it has been analysed that strategic marketing is one of the
most essential and crucial factors within a business organisation. With the help of this an
effective strategic plan is going to be developed by the management team of the company which
assist in attaining organisational goals and objectives. It will become easy for them to perform
their business functions in an effective manner at the competitive marketplace. Along with this,
PESTLE analysis assist in identifying various opportunities as well as threats available at the
current market area. This will assist them in order to examine the current market position so that
they can done their business functionality in an appropriate manner. Apart from all this, Porter's

generic strategy help in entering new marketplace with the assistance of an effective strategy. All
these things will assist in identifying the position of market and develop the services according to
the requirements of customers.

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