Strategic Marketing for Brake Bros Ltd

This study explores the strategic marketing plan for Brake Bros Ltd, a UK-based company planning to enter the Australian market. It analyzes the macro factors that create opportunities and threats, discusses market entry options, and explores market segmentation and targeting strategies.

STRATEGIC MARKETING

EXECUTIVE SUMMARY
Companies always makes effective marketing plan that may help business in gaining profit
and sustaining in market for longer duration. Strategic planning is helpful in expanding business
in new market successfully. Study describes how macro such as political, economic factors
create opportunities ad threats to the Brake Bros Ltd. Advantage and disadvantage of franchise,
licensing market entry modes are explained in this study. Market segmentation and targeting
strategies for the Brake Bros Ltd are described in this report.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
PESTLE ANALYSES.....................................................................................................................1
MARKET ENTRY OPTIONS........................................................................................................2
MARKET SEGMENTATION AND TARGETING.......................................................................4
PORTER’S GENERIC STRATEGY..............................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic marketing can be described as process of selecting the best marketing tactics in
order to meet organizational goal. It ensures that marketing efforts of company always gives
positive result to business unit (Balsmeier, Manso and Fleming, 2016). Present study is based on
Brake Bros Ltd is the private company of UK. It supplies food, drinks to wide range consumers.
Recently company is planning to enter into Australian market in order to raise its profitability. It
has planned to offer seafood to the Australian population. Current assignment will analyses the
macro factors that can create opportunities or threats for business unit. It will explain various
market entry options for an enterprise and suitability of these options will be described. In
addition, report will explain porter’s generic strategy and will give justification for one particular
strategy that may aid business to get established into new market
PESTLE ANALYSES
This is the tool which helps in analysing the actual situation of external market and help in
identifying the position of firm to operate in the external market (Maumbe, Cheng and Fernando,
2016).
Political factor: Australia is the developed nation and condition of political parties are
stable. Government encourage new business and trade agreement of country are very effective.
Hence it would create opportunity for Brake Bros Ltd to establish itself in this market
successfully. But current food policies of government influence the mind of consumers and
restrict the companies to use certain kind of raw material while cooking food. This can create
threat to the because it will have to make changes in its production process. In this condition
Brake Bros Ltd will have to first understand policies of government according it has to use raw
material so that it can run operations successfully in the new market (Hamdan, 2017).
Economic factor: Economic condition of Australia is sound; people have employment
opportunities. Hence they have capacity to go to such restaurants and food clubs. This will help
Brake Bros Ltd in attracting more consumers hence it will be opportunity for Brake Bros Ltd. On
other hand increasing tax rate can affect overall profitability of the firm which may create threat
the business. In such condition Brake Bros Ltd will have to manage its operational cost in such
manner so that it can generate reasonable amount of profit after paying all the taxes.
Social factor: People of Australia like to have highly hygiene food and they are ready to
spend high prices for the same. Hence this is opportunity for Brake Bros Ltd and it can generate
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more sales. Apart from this, changes in values, preferences make changes in actual choice of
consumers that may be threat to the Brake Bros Ltd hence company has to conduct research to
know more about trends and preferences of Australian consumers (Balsmeier, Manso and
Fleming, 2016).
Technological factor: New technologies help in improving the production process and
reduces wastage as well this is beneficial in order to control over cost. But implementation of
new technologies is quite risk and costly hence it is threat to the firm. In this condition Brake
Bros Ltd will have to manage other expenses in properly manner so that it can get funds to
implement new technologies and can make balance between profit and cost.
Legal factor: Brake Bros Ltd will have to ensure that it follows all the laws carefully.
Otherwise it may affect its sustainability in the Australian market.
Environmental factor: Brake Bros Ltd will have to ensure performing such activities that are
eco-friendly, it has to control over wastage of raw material. By this way firm will be able to raise
its brand image. If it fails to take care environment, then firms overall performance and
acceptability in new market will be affected badly (Omsa, Abdullah, and Jamali, 2017).
MARKET ENTRY OPTIONS
Each company aims to serve in international market hence implements some strategies to
deliver goods in the new market. These market entry modes are helpful for firms to generate
revenues and gain global brand presence. There are various options are available for Brake Bros
Ltd to enter into Australian market successfully (Fozer and et.al., 2017). Description of these
modes are explained as below:
Licensing
This is the method that gives permission to local parties to take support of brand name of
company in order to sell products in the local market. Licensing agreement is made between both
parties and the company gets royalty in this agreement. This is considered as simple and quick
process of running business in foreign market. Enterprise transfer the rights to other business to
use trademark (Perera, 2017).
Advantage
 This is the most profitable method because Brake Bros Ltd can get high return over its
investments. It requires little capital and against this investment Brake Bros Ltd can get
royalty as well.
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 Risk is very low in this mode because there is government intervention hence chances of
legal mistakes are very low hence licensor can invest its capital easily (Bismark and
et.al., 2018).
 In the licensing option Brake Bros Ltd will give license to the company which is
operating in that market hence being a local firm licensee has great knowledge about that
market. Hence firm can understands needs of Australian people and can serve them
products accordingly. This can support Brake Bros Ltd in offering satisfactory goods to
the local people which may aid in gaining competitive advantage and retaining
consumers for longer duration (Adner, Ruiz-Aliseda and Zemsky, 2016).
Disadvantage
 If selection of licensee is not done in appropriate manner then it can create problem for
the Brake Bros Ltd, as firm will not be able to sale its seafood in Australian market in
effective manner which will create situation of failure for the enterprise.
 In this licensing agreement Brake Bros Ltd will have to share some necessary
information with other local brand which can enhance risk of revealing the secrets of
business (Omsa, Abdullah, and Jamali, 2017).
 If records and payment details are not being recorded systematically then clashes can take
place between Brake Bros Ltd and licensee.
Franchising
This is the market entry mode or the rapid expansion technique for the company in which
franchiser gives permission to franchisee to use brand name. By using this technique firm can
setup its business in the new market successfully.
Advantage
 The major benefit of using franchising system is that entry cost is very low, Brake Bros
Ltd would be able to establish its branch in the Australian market at affordable rates.
 Risk of failure is very low because company cross check the firm to which it is going to
give franchise for the brand (Hales and Mclarney, 2017).
Disadvantage
 Major drawback of using this entry method is that Brake Bros Ltd will have to share its
profit with the other firm. As franchisee is running the actual operations in the foreign
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market hence there is need to share profit and loss of business. Hence overall profitability
of Brake Bros Ltd gets reduced.
 Controlling cost of franchising is very high (Hamdan, 2017).
 There is high chance of conflicts between both franchisee and franchisor.
Merger and acquisition (M&A)
This is another market entry mode in which two separate firms come in legal agreement
to work together. Both these entities get combined and form a one large organisation. There is
possibilities that one enterprise take over other or work with mutual agreement.
Advantage
 Merger and acquisition is helpful in increasing market share of Brake Bros Ltd to great
extent because assets of both these companies are being shared to run a business
smoothly and top generate more profit. M&A supports entity in gaining competitive
advantage (Balsmeier, Manso and Fleming, 2016).
 It is beneficial because merger helps in enhancing competencies and getting more
resources to work efficiently. Apart from this, Brake Bros Ltd can get suggestions from
experts of other firm
Disadvantage
 M&A can create cultural clashes in business unit because working pattern and believes of
both companies are different hence it can create conflicts between the staff members.
 This entry mode can create problem of duplication of duties, it might possible that two
persons perform the same duties which may enhances cost of business unit (Hofer and
Baba, 2018).
From the above discussion it is analysed that Brake Bros Ltd should take support of
franchising entry method, as it will give benefit to the organisation in managing funds and capital
investment in this technique is very low. Firm can get staffing leverage in this method hence it
can run business in Australian market successfully and can generate more revenues in this
country.
MARKET SEGMENTATION AND TARGETING
Segmentation
Each consumer has different needs and enterprise has to treat them differently in order to
make them satisfied (Huber, 2019). The process of dividing group of people on the bases of their
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specific characteristics is called as market segmentation. This is considered as essential tool that
supports organisation to personalise the campaigns of marketing. It aids in implementing
appropriate strategies to make the person ready to buy products and services of company. There
are various kinds of segmentation strategies that can be used by Brake Bros Ltd to satisfy the
customers.
Geographic segmentation
This type of segmentation is done on the bases of geographic boundaries. Taste, needs,
preferences are much more depends up to the geographic location. Climate of particular place
decides whether selling of particular product will be good or not (Maumbe, Cheng and Fernando,
2016).
Demographic segmentation
This is another kind of strategy in which firm divides group of people on the bases of age,
gender, income, marital status etc. Marketers generally adopts this kind of segmentation method
because age, race, gender mostly affects their buying behaviour. For example, young people like
to go to restaurants and like to have such kind of food items which are offered by Brake Bros Ltd
whereas old people have less interest in such items (Ayden, Demirbag and Tatoglu, 2018). Apart
from this, professional women or working women like to go to such places to enjoy some quality
time with friends and families. Hence Brake Bros Ltd has to make its marketing campaign
according to the needs of particular persons, that would be better in order to gaining attention of
potential consumers. All these demographic elements influence the behaviour of person to great
extent.
Psychographic segmentation
This is the type of segmentation strategy in which companies considers personality,
lifestyle of group of people to divide the audience. Lifestyle, attitude of persons affects the
purchasing behaviour of people/ For example if the person has lavish lifestyle then individual
will prefer to get luxurious services in restaurants and same places. But if individual has normal
lifestyle then person will consider to buy such items that have value for money (Bismark and
et.al., 2018).
Brake Bros Ltd will take support of psychographic and demographic segmentation
strategies. This would be better for marketers to selects the right persons and offer them services
according to their requirements. Hence Brake Bros Ltd will offer food items to people on the
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bases of their choice and preferences. This would be better for the marketer because it is very
easy to measure requirements of different group of people. Apart from this, demographic
segmentation is cost effective method because many details are available online and offline
about food preferences of different group of people hence Brake Bros Ltd will get benefit of
offering satisfactory goods which will make them loyal and positive (Omsa, Abdullah, and
Jamali, 2017).
Targeting
Targeting is the method or strategy to concentrate on such consumers to whom firms
plans to sell its products. Every customer has specific needs and they prefer to spend their money
on such items that can satisfy their need. Brake Bros Ltd is planning to sell seafood in the
Australian market. For that there is essential to right target consumers those who like to have
seafood (Balsmeier, Manso and Fleming, 2016).
Differentiated targeting strategy is the method of targeting two or more different
segment’s people. Firm can design products and can promote products in such manner that can
gain attention of large number of audience. Concentrated targeting strategy is another method of
reaching to end users in which enterprise can target only on specific group of people and design
marketing mix strategies accordingly. Concentrated strategy can be described as well-defined
tactic which supports to meet needs of specific market segment. Undifferentiated marketing is
another kind of targeting tactic in which company concentrates on one particular product for all
range of consumers (Hofer and Baba, 2018). There is no differentiation between various
segments. Firm believes that one common product can meet the needs of all kind of buyers.
Brake Bros Ltd should take assistance of differentiated targeting strategy, it has to makes
its marketing strategies in such manner that can attract particular group of people and can meet
their needs. Brake Bros Ltd will offer seafood to Australian population and it will target young
women and men both. Young people of Australia like to go to restaurants and like to have such
kind of seafood. Hence targeting these people would be beneficial for the organisation and it will
be able to generate profit in the foreign market (Ayden, Demirbag and Tatoglu, 2018).
PORTER’S GENERIC STRATEGY
This is considered as essential tool or can be defined as business strategies that supports
organisation in raising its positon in the market and gaining competitive advantage as well.
Cost leadership
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This is the type of strategy in which organisation tries to reduce its production cost. There
is need to utilise resources well and to manage it properly in order to minimise wastage so that
cost advantage can be received by business unit (Fozer and et.al., 2017). By being low cost
producer Brake Bros Ltd can attract new buyers and can sell maximum products in the market.
This strategy is beneficial for the business those which are running their operations at large scale
and offering some kind of standard items to wide range of customers. Such kinds of products are
easily acceptable in market hence most of the people prefer to buy such high quality cheaper
products. Brake Bros Ltd will have to develop close cooperation between all necessary
departments so that confusion can be minimised and resources can be utilised in best manner.
This strategy would be beneficial for Brake Bros Ltd in order to raise productivity and to manage
operations in the foreign market as well (Bismark and et.al., 2018).
Differentiation focus
This is the type of tactic in which organization always focuses on focused market. It
ensures to serve unique products to buyers by paying attention on niche market. This tactic is
beneficial in raising brand loyalty and create high competition in the market.
It is analyzed that Brake Bros Ltd has to take assistance of differentiation. This would be
best tactic for…in order to establish its business in Australian market. Demand of seafood is very
high in that place and enterprise can make its food products very exclusive for this market. This
would be better in attracting more consumers and gaining competitive advantage in the market.
Good research will help the company in knowing more about particular buyers which will
support in servicing them according to their preferences. Hence implementing this strategy will
support organization in gaining competitive advantage in the market. This is another kind of
tactic in which organisation always tries to offer valuable products and services to consumers. If
entity goes with this option, then Brake Bros Ltd will have to ensure offering such seafood that
are completely different from other competitors. But here is necessary to have adequate
knowledge about what consumers wants and what are there preferences. Here organisation uses
niche marketing so that uniqueness can attract particular group of people. Brake Bros Ltd can
charge higher from the Australian popular as it is going to offer them luxurious food which can
make them satisfied (Hamdan, 2017).
Cost focus
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This is the kind of tactic in which business concentrates less of cost advantage. It will sell
basic products to buyers which can be acceptable by number of consumers. Organization can pay
attention on niche market by understanding the specific dynamics. In this entity always have to
ensure to keep prices of its products low so that enterprise can attract more buyers and can
satisfy their needs.
Differentiation
This is another great strategy in which company pays attention on such market where
product demand is high that means broad market is being concentrated by business unit. In this,
entity also ensures to offer some unique goods to the consumers so that they take more interest in
company’s items rather than other competitors. There is need to conduct great research before
targeting any market and implement some innovative ideas so that Brake Bros Ltd can meet the
specific need of customers. There is need to implement effective marketing strategies so that
consumers can get to know about unique features of consumers and buy its products frequently.
But there is need to be flexible and adaptable in changing situations. As external environment
gets changed any time hence Brake Bros Ltd will have to ensure to make necessary changes in
strategies so that it can create competition in market otherwise it may lose its position in the
market.
CONCLUSION
Study can be summarised as companies have to face huge competition in market, in order to
sustain in such competitive market there is need to make effective strategic plan that may help
firms in sustaining in market for longer duration. Franchise is the great tool that always help
firms in establishing firm in the foreign market successfully. Though it has some limitation as
well but this is suitable option for the small size companies as it requires limited capital
investment. Before entering into Foreign market there is need to have proper analyses of macro
factors so that proper strategies can be built by company to deal with threats.
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REFERENCES
Books and Journals
Adner, R., Ruiz-Aliseda, F. and Zemsky, P., 2016. Breaking Trade-Offs: When is Dominating
from the Middle a Winning Generic Strategy?. In Academy of Management
Proceedings (Vol. 2016, No. 1, p. 16580). Briarcliff Manor, NY 10510: Academy of
Management.
Ayden, Y., Demirbag, M. and Tatoglu, E., 2018. Market Entry Strategies of Turkish MNEs.
In Turkish Multinationals (pp. 127-168). Palgrave Macmillan, Cham.
Balsmeier, B., Manso, G. and Fleming, L., 2016. Escaping competition and competency traps:
Identifying how innovative search strategy enables market entry. Working Paper,
University of California at Berkeley.
Bismark, O. and et.al., 2018. Utilizing Mckinsey 7s Model, SWOT Analysis, PESTLE and
Balance Scorecard to Foster Efficient Implementation of Organizational Strategy.
Evidence from The Community Hospital Group-Ghana Limited. International Journal of
Research in Business, Economics and Management. pp.94-113.
Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production. 147. pp.75-85.
Hales, G. and Mclarney, C., 2017. Uber's Competitive Advantage vis-à-vis Porter's Generic
Strategies. IUP Journal of Management Research. 16(4).
Hamdan, A. L., 2017. Porter’s Strategies in Healthcare. In Strategic Thinking in a Hospital
Setting (pp. 9-15). Springer, Cham.
Hofer, K. M. and Baba, A., 2018. Market Entry Strategies, Innovation and Performance of SMEs
in the Service Sector. In Key Success Factors of SME Internationalisation: A Cross-
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Huber, K., 2019. Market Entry Strategy of a Small Finnish Company for the German Market:
Hotel Stallbacken and Grännas Bed & Breakfast.
Maumbe, N. J., Cheng, Y. and Fernando, K., 2016. The Market Entry Strategy for Japan, South
Africa, and Spain.
Omsa, S., Abdullah, I. H. and Jamali, H., 2017. Five Competitive Forces Model and the
Implementation of Porter’s Generic Strategies to Gain Firm Performances.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
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