Market Study for New Product Offering

Running Head: MARKET STUDY FOR NEW PRODUCT OFFERING
Market study for new product offering
Name of the Student
Name of the University
Author’s Note

1MARKET STUDY FOR NEW PRODUCT OFFERING
Executive Summary
The very sole purpose of this report is to evaluate each of the available alternative option and
select the best marketing strategy with regard to the assistance of the marketing advisor
addressed as the 'Ashanti Marketing Solutions (AMS)'. It is a marketing advisor that provides
market related guidelines and advices to the start-up firms. Taking into consideration the market
issue as of which of the product segment to be targeted and which product is required to be
introduced, the advisory firm Ashanti Marketing Solutions (AMS) make efforts by
recommending the Chinese company named as Tianjin FAW. It is one of the leading company
within the region of the china, it is an automobile company. The advisory company proposed to
bring the automobile segment of Xiali Luxury Sports Utility Automobile within the region of
the UK. However, before suggesting so a proper evaluation of the international market was
undertaken in regard to the business prospects available for the automobile company. A through
audit was undertaken by the advisory firm. The various market risks were thoroughly evaluated
from each of the various possible perspectives. By means of the Tianjin FAW's activity in
Britain, various marketing activities were studied and evaluated in terms of the corporate
environment.

2MARKET STUDY FOR NEW PRODUCT OFFERING
Table of Contents
Introduction...............................................................................................................................................3
Tianjin FAW PESTLE Model:.................................................................................................................4
Modes of market entry:...........................................................................................................................11
Market segmentation and target buyers:...............................................................................................14
Discussion.................................................................................................................................................16
Porter's Generic Strategies-....................................................................................................................16
Focus strategy-..........................................................................................................................................18
Conclusion................................................................................................................................................19

3MARKET STUDY FOR NEW PRODUCT OFFERING
Introduction
The report findings include the strategic marketing standards which are accepted by
corporate marketing, and which helps in setting the structures equipped for upgrading their
general income and return on investment (ROI). The firm carried on the business activities in
accordance to a leading and reputed Chinese Automobile Company within the region. The
business firm makes use of innovation and development to be successful in penetrating within
the Great Britain automobile sector. To penetrate the market and to cope up with the present
market pattern Tianjin wandered into a sport utility vehicle as it set to present.
The plan is to bring about a new innovative product that will be known as the Xiali
Luxury Sports Utility Car within the region of the UK market in the year of 2018 -2019
budgetary year. To meet the marketing targets the and the various objectives, the firm needs to
know different market operation tasks, regulation and marketing forms preceding the starting
function. To penetrate the market, there is a need for an adequate amount of market-related
information’s for which the firm takes the help of a marketing advisory firm addressed as the
Ashanti Marketing Solutions (AMS).
The use of the marketing tools such as the PESTEL analysis tool will be undertaken, the
study of the various market segment will be undertaken to find out the most suitable segment of
the market to introduce the business. Finally, the use of the PORTER’s generic methodology will
be used in order to undertake survey as of which one may be suitable for the organisation to
acquire competitive advantage.
However, the business surrounding of the automobile based Tianjin FAW company was
audited with the application of the PESTEL analysis. This marketing model helps in evaluating

4MARKET STUDY FOR NEW PRODUCT OFFERING
the political, economic, social, technological, environmental and legal aspects of the business
environment in the UK. However, the various threat and opportunities that lie in the hand of the
company are also being evaluated. Making use of Porter's Generic strategic theory, the
researcher undertakes measures to investigate the effect of marketing strategies on the launching
activity of Tianjin FAW within the region of the UK market (Faw 2017).
Tianjin FAW PESTLE Model:
Within the region of the UK market, the PESTLE analysis outlays the various facts which
may exude from the external forces around a business activity particularly while operating
abroad. This model is primarily used for evaluating the political, economic, social, technological,
environmental and legal aspects of the business environment in the UK. Besides, it also outlays
the various macro-environmental factors regarding the business unit that supports its present
areas of locations. However, the PESTLE analysis regarding the Tianjin’s FAW within the
region of Great Britain is carried out as:
Political-
2016 United Kingdom European Union membership referendum is one of the key facts
for the occurrence of the favourable market within the region of the UK market. The political
conditions of the region are stable as introduced by the Brexit referendum. Because of the impact
of Brexit Union membership referendum, it has created a great impact over the global economy
in regard to trade as well as upon the business relationship with Britain. Thus, Tianjin’s FAW
needs to understand its various existing risk and other political issues before investing in the UK
automobile sector. The company, Tianjin’s FAW, has its headquartered in China that operates in
100 nations, and the automobile business firm also intends to penetrate the UK automobile
market sector (Browne, M., 1985).

5MARKET STUDY FOR NEW PRODUCT OFFERING
However, it is a matter of concern regarding the various ongoing political campaigns and
the political issues within the region of Great Britain that may bring about huge uncertainties
upon the automobile industry. AT present situation the European countries are facing a lot of
political issues. Thus, making the entry of new business prone towards the economic and
political threats.
However, the uncertain consequences emerging out from the EU may empower the UK
to present new fiscal policies, trade tariffs and taxes capable of affecting the Tianjin's dispatch in
the UK market. It is because of the import policies, rules, and regulations the purchasing activity
by the consumers will be adversely affected. The inauguration of the new product category of the
automobile company Tianjin FAW and cost may increment when British strategy policies are
more grounded.
Economic –
In terms of the economic factors the pricing of the new product segment and that of the
business activities of the automobile business firm Tianjin FAW will be adversely affected
because of the changes in the economic aspects. The aspects are that of the economic conditions
of the country whether poor or healthy in terms of money, state of the recession, and that of the
depression (Smallbusiness.chron.com, 2019). The economic growth potential of the country is
also another factor to be taken into consideration. The employment factor and the job growth
potential that exists within the region of the UK market are some of the key aspects that are
required to be taken care of before formulating business in the new regions of the country. In
terms of the national boundary unemployment rates affect buyer trust in a numerous ways,
including the desire to purchase things. They fail to possess a particular commodity because of
the low income factor (Schaub, 2016).