Strategic Marketing for Chily's Bottles Ltd

This report discusses the strategic marketing strategies for Chily's Bottles Ltd, a UK-based company planning to launch its new product, Bamboo Bottle, in Africa. It covers the PESTEL analysis, market entry routes, market segmentation, targeting, and positioning for the successful operation of the business. The report also highlights the opportunities and threats in the selected nation and provides insights into the competitive advantages gained from the market.

Strategic Marketing

EXECUTIVE SUMMERY
Strategic marketing is an activity of effective running of the business of the company in
term of making good plan of action which are crucial for the adequate suitability of the
organisation in a specific and particular sector. Chily's Bottles Ltd Bottles Ltd is an UK based
company which operate its business retain sector and manufacture bottle products. This report
will cover the information about marketing strategies which are crucial for the new product of
the respective which this firm want to launch in to new market. To analyse the threat and
opportunities, the firm use PESTEL analysis and to find out the target audiences in context of
specific product, the company use STP model of marketing. For gaining competitive advantages
form market place, the firm can porter's generic model and in which diversification is effective
strategy for gaining rival benefits.

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................3
PESTEL analysis of the company including major opportunities and threats that the company
could face in selected nation.......................................................................................................3
Explanation of main market entry routes....................................................................................5
Explanation of market segmentation and targeting in terms of targeting its customers
effectively....................................................................................................................................6
Explanation of Porter's generic strategies...................................................................................7
CONCLUSION................................................................................................................................9
REFERNCES...................................................................................................................................9
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INTRODUCTION
Strategic marking is a process and activity of planning, developing and applying tactics to
accomplish and gain competitive benefits from the selected market. It can be an act of using
different marketing strategies to resolve the issues and problems which are arising in the business
of the company. It assist in developing products and services with best profit marketing potential
(Aghazadeh, 2015). It also help in identifying the areas which are affected by organisational
growth and assists in creating an organisational plan to cater to consumer needs. This assignment
is based on Chily's Bottles Ltd which is an active organisation that was established in 2010 in
London UK. The major aim and objective of the company is implement different marketing
strategies to resolve the issues which are occurred in the firm. This assignment will discuss about
the PESTEL analysis, market entry modes, concept of STP and Porter's generic strategy for the
effective operations of the firm and gaining completive advantages from the market.
MAIN BODY
Chily's Bottles Ltd is an UK based company which operating its business in retail sector
in term of offering its different kind of bottles products. For instant, now the management of the
company want to expand its business with its new product which is “Bamboo Bottle” in Africa.
PESTEL analysis of the company including major opportunities and threats that the company
could face in selected nation
PESTEL analysis of Chily's Bottles Ltd Bottles Ltd.
It is a structure and tool which is used by the companies to determine and monitor the
macro environmental factor that affect the business of the company positively as well as
negatively. It can be a process and activity of finding out the impact of external factors upon the
business of the company or identify the area which is impacted by them in term of favourably
and unfavourably manner.
Political factor- It indicates to those factors that are all about how and to what level a
government intervenes in the economy or a specific sector (Baker and Hart, 2016). It consist
government stability and instability, corruption level, taxation policy, trade regulations, foreign
trade policy and labour law etc. In Africa, the political environment is clouded by corruption,
mismanagement, political intolerance etc. So it can create negative impact upon the business of
Chily's Bottles Ltd because due to corruption and mismanagement, the firm can establish and run
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its business in legal and structured way. So it affect the image of the company in negative term.
But the taxation policies in this nation is medium range which can be beneficial to the respective
company to operate its business with new product at this location. So it, can be analyse that
within this factor the company have major threat in context of its business.
Economical factor- It is another factor of this analysis which involve inflation and
deflation rate, growth rate, currency rate, exchange rate, unemployment trends, labour costs and
monetary policies etc. In Africa, the currency rate and exchange rate is low so it not possible for
any business to operate and stay in demand (Banerjee, 2017). So when the management of
Chily's Bottles Ltd operate its business with its new product “Bamboo Bottle” then it will not
provide opportunities to this firm in term of business growth and development. In Africa, the
unemployment rate of they nation is high which can be used by the respective company as an
opportunity. Within this factor, the level of threat is high in comparison to opportunity for
Chily's Bottles Ltd.
Social factor- It is the next component of PESTEL analysis which consist several
elements like culture, values, beliefs, lifestyle, needs, taste and preferences of the customers.
When the changes are occurred in needs and demands of consumers then this factor affect the
business of the company favourably as well as unfavourably, In Africa, unemployment rate is
high so the social mobility and economic growth are affected by poor and inadequate
infrastructure. These all things help in providing an growth opportunity to Chily's Bottles Ltd to
operate its business in this nation in term of proving employment and fulfilling the need of local
people to improve their lifestyle. This nation also have natural resource which can be a growth
opportunity for the business of “Bamboo Bottle”.
Technological factor- It include basic infrastructure level, technology incentives,
legislations regarding technology, communication infrastructure and access to new technology
etc. Africa is one of the most technologically advanced country so it has lots of options for the
growth and development of the companies which are running and want to start operations
(Chernev, 2018). The management of Chily's Bottles Ltd also take the advantages of it when it
operate its business in this nation with the help of its new product “Bamboo Bottle”. So the firm
can use the technological resources in its production process to improve it and use it also in
offering its products to its potential customers. So this factor help in providing various
opportunities to the business of the respective company for its business operations.
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Environmental factor- This factor consider different component like climate change,
weather, waste management, recycling, environmental law, pollution act and others. In Africa,
the country faces some environmental challenges like water pollution, land degradation, solid
waste pollution and deforestation etc. The management of Chily's Bottles Ltd Operate its
business at that place by producing “Bamboo Bottle” so it will not affect the environment of this
country in negative manner (Cwalina, Falkowski and Newman, 2015). So this factor also provide
a business opportunity to the respective firm. Because Bamboo is a natural resource so that waste
of it will not harm the environment and will not generate air, water and other kind of pollution.
Legal factor-This factor consist the laws and legislations which are developed by the
national authorities of the countries for effective running of the business of the companies which
are operating in different sectors. It include discrimination law, employment law, consumer
protection law, health and safety law, intellectual property law and others legislations. In Africa,
the government encourages Foreign direct investment in all sectors of the economy. So there are
some restrictions and limitations on foreign shareholders. This factor generate threat and
opportunity to Chily's Bottles Ltd in adequate form like when the company operate its business
in this nation with its new product Bamboo Bottle” then if it effectively follow The Employment
Equity Act 1998 within its workplace then it favourably affect the company. Because the
government of this nation formulate it so that the employee can get equal opportunities and fair
treatment in the firm. So by following law and legislations of the national authorities of Africa in
effective manner, the respective company can operate its business appropriately.
So from the overall analysis of the nation in context of new product of Chily's Bottles
Ltd, it can be analysed that it provide various opportunities for the establishment and operation
of the business of the company with its new product “ Bamboo Bottle”.
Explanation of main market entry routes
In current era of marketplace, the term globalisation has been influencing majority of the
organisation in terms of expanding and enlarging market division to new geographical regions
without facing any kind of trade barriers (French and Gordon, 2019). However, there are
different types of market entry modes which Chilly's Bottles Ltd can imply for improving the
sales performance of its new product i.e. Bamboo bottles within Africa marketplace. Some of its
are discussed below:
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Strategic Alliances: Under this type of market entry mode, it is refer to an agreement
which between two or more companies or parties with an aim of accomplishing pre determined
goal and objective in an effective manner. Moreover, it contains three type of strategic alliances
i.e. joint venture, equity strategic alliance, non–equity strategic alliances (Lidstone and
MacLennan, 2017). However, Chilly Bottles Ltd can make partnership with other company in
Africa who operate in same industry. This is because it allow them to understand and reach
consumer faster as the partnership firm is already well familiarised with the Africa market.
Additionally, strategic alliance contains low cost in entry and exit process which can benefit
Chilly Bottles Ltd to enhance its market share inside Africa marketplace.
Mergers and Acquisitions: These are two different aspects for market entry mode.
Hence, in the perspective of merger, it is refer to the combination of two organisation to form as
one firm whereas acquisition is link with those process in which an establishment is taken over
by the other. In regard of Chilly Bottles Ltd, with the application of M&A, it provide enormous
new opportunities in Africa industry as well as it contains less expense to practice this procedure
for expanding market size.
FDI: It is a kind of investment which take place in the form of controlling ownership of
business in one country with an entity based within another geographical region. The foremost
advantage which Chilly Bottles Ltd can acquire with the adoption of FDI is that there will be a
reduction in overall cost of production and can easily access to required resources in an
expeditious mode.
Henceforth, Chilly Bottles can apply Merger & Acquisition mode for enlarging its market
division into Africa region with an innovative product i.e. Bamboo bottles. However, company
can acquire the benefit of tax redemption by Africa government and also can diversity its
portfolio in an impressive or effective manner (McDONALD, 2016). Hence, with the practice of
M&A, Chilly Bottles Ltd can gain competitive advantage with its Bamboo bottles within Africa
in a stipulated time duration in an innovative style.
Explanation of market segmentation and targeting in terms of targeting its customers effectively
STP analysis
It is an activity and process of analysing the market on the basis of segmentation,
targeting and positioning. By applying this model and concept, the management of an
organisation can add value and improves its marketing effectiveness and efficiency as well as it
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performance. The administration of Chily's Bottles Ltd can adopt and apply this model or
approach in its business in context of its new product which is Bamboo Bottle. This model
consist three component like segmentation, targeting and positioning. The brief explanation of
them in context of the respective company as below:
Segmentation- It is the process of segregating a market into smaller groups with similar
product needs or identifiable characteristics for the purpose of choosing effective target markets.
In Chily's Bottles Ltd, the management of the company can make segmentation on the basis of
geographic, demographic and behavioural basis (Moutinho and Vargas-Sanchez, 2018). In
African market, the management can segmented its market in term of density and select urban
market for its new product. The firm choose 20-40 age group of customer and offer it to both
male and female consumer. In demographic term the company segregate it on the basis of
income and offer it to average, above average and high earners. On the basis of behavioural, the
management can segregate it, in term of regular user. This kind of segmentation can be
beneficial for the company because it will be help in developing the business of the company in
term of maximising sales, productivity and profitability.
Targeting- It is an activity of proactive selection of a suitable market segment which help
in increasing the sales and profitability rate of the firm. In Chily's Bottles Ltd, the management
of the company can target 20-40 age group people, average, above average and upper class
people and regular user. The firm can also target gym instructor, health conscious people and
others who are more focus on these kind of products which are crucial fro heath as well as
environment. The company launch Bamboo Bottles which are effective to make the water pure
and fresh. So these target audiences of the company can be main user of this product which are
also help in maximising the sales and profitability of the company in new market like Africa.
Positioning- It is the process of establishing a position in the specific market with the
help of effective features and characteristics of the products. In Chily's Bottles Ltd, the
management of the company can build an effective position in the market because the company
manufacture a recycling product which is environmental friendly and help in making the water
pure and fresh (Muangkhot and Ussahawanitchakit, 2015). So by offering this new product with
a reasonable pricing strategy the respective firm can make an effective position in the particular
sector in which it operating its business. The management of Chily's Bottles Ltd can offer this
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product to it product by online mode and also provide this on the retail stores so it can be easy in
reach of them.
Explanation of Porter's generic strategies
Porter's Generic Model
The model of Porter's generic model was developed by Michael Porter in 1980 to
uncover the ways through which organisations maintain and keep long term advantages over
their rivals. This generic model is formulated to gain competitive advantages form the market so
that firm can sustain and survive in the marketplace till long term period (Paley, 2017). This
model consist strategies like cost leadership, differentiation, cost focus and differentiation focus.
So by using this conception, the management of Chily's Bottles Ltd can also gain competitive
advantages when it launch its new product “ Bamboo Bottle” in African market. The brief
description of this model is as beneath in context of respective company.
Source: Porter's Generic Model,(2016).
Cost leadership- It is the first strategy of this model which can be beneficial for gaining
competitive advantages from the market. Within it, if the management of an organisation adopt
this strategy then they make only focus on the cost and pricing strategy which are suitable for the
company to launch the product in the market and able to provide competitive benefits. In Chily's
Bottles Ltd, if the administration of this use this plan of action in its business in term of gaining
competitive edge in that marketing in which it is going to operate. For earning rivals benefits, the
firm can adopt low pricing strategy, discount pricing strategy and others which are effective for
the customers as well as organisation. Cost leadership permits a competitive advantage by
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Illustration: Porter's Generic Model

manipulating production cost which does it in two essential manners like charging lower prices
to maximise market share and minimising costs to maximise profits. The respective company
want to launch Bamboo Bottles in African market and these natural resource are available in this
nation in high quantity. So they are available to the company in less cost and the production cos
will not be high which will help in gaining rivals benefits to the firm.
Differentiation- This strategy calls fro the development and growth of a product and
service that provides unique attributes that are valued by consumers and that customers perceive
to be better than or different form the products of the competition (Thrassou, Vrontis and
Bresciani, 2018). The uniqueness of the goods help in adding value and allow the company to
make change in its pricing strategies. There are several components which can be crucial and
consider within this strategy in term of gaining competitive benefits like superior and effective
quality, features, durability, reliability, branding, wide distribution crosswise all major channels
and effective promotion etc. In Chily's Bottles Ltd, the firm is going to operate its business in to
African market with its new product which is unique because it is Bamboo bottle and have
effective features of pure and fresh water. This product is environmental friendly and will not
affect the health in negative manner. So it will help in providing competitive benefits to the
company. Due to effective features and quality of the product, the management of the company
can make changes in its prices in term of low and high which will also good for earning
competitive edge.
Cost focus- It is the plan of action in which the company can gain competitive
advantages by only making focus and concentration on cost (Vellas, 2016). If the management of
Chily's Bottles Ltd adopt this strategy then the firm can only make fluctuation and modifications
in its pricing strategies in term of low and high. For example, the respective organisation can
make change in the prices of the product by analysing the level of competition of the market in
which it is going to operate. If the competition is high, the firm can use low pricing strategies.
Differentiation focus- It is last strategy of this model in which the management of the
company can concentrate either cost or product for gaining rival's benefits. In Chily's Bottles Ltd
to gain the competitive benefit from the market, the firm can only focus on cost or product. If the
company adopt cost then it can make differentiation in the pricing strategies which are used by
the company to its Bamboo bottle product. If the firm focus on product then it can make
improvement in its features, attributes etc. to gain rivals advantages.
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From the above information, it can be summarise that the management of Chily's Bottles
Ltd can make adopt diversification strategy because with the help of it, the firm can make change
in its cost either its products to gain competitive advantages (West, Ford and Ibrahim, 2015). It
will also help in sustaining and surviving the business of the organisation in long term.
Diversification can be selected by the firm because it is crucial for the company in term of
making growth and development of business of the firm.
CONCLUSION
As per preceding defined information it can be conclude that effective marketing
strategies help in effective running of the business in appropriate and adequate manner. By
adopting different marketing strategies the company can operate its business in more efficient
way. These plan of action like PESTEL analysis, STP analysis and Porter's generic also also help
in gaining competitive advantages form the market. So that company can sustain and survive in
the market long term.
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REFERENCES
Books & Journals
Aghazadeh, H., 2015. Strategic marketing management: Achieving superior business
performance through intelligent marketing strategy. Procedia-Social and Behavioral
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Baker, M. J. and Hart, S. eds., 2016. The marketing book. Routledge.
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Implications for marketing theory and practice. In Greener Marketing (pp. 16-40).
Routledge.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Cwalina, W., Falkowski, A. and Newman, B. I., 2015. Political marketing: Theoretical and
strategic foundations: theoretical and strategic foundations. Routledge.
French, J. and Gordon, R., 2019. Strategic Social Marketing: For Behaviour and Social Change.
SAGE Publications Limited.
Lidstone, J. and MacLennan, J., 2017. Marketing planning for the pharmaceutical industry.
Routledge.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
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Paley, N., 2017. How to Develop a Strategic Marketing Plan: A step-by-step guide. Routledge.
Thrassou, A., Vrontis, D. and Bresciani, S., 2018. The agile innovation pendulum: A strategic
marketing multicultural model for family businesses. International Studies of
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Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
West, D. C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
Online
PESTLE Analysis of Africa. 2020. [Online]. Available Through:
<https://pestleanalysis.com/pestle-analysis-of-south-africa/>.
Segmentation, Targeting and Positioning (STP) Model. 2020. [Online]. Available Through:
<https://www.mindtools.com/pages/article/stp-model.htm>.
Porter's Generic Competitive Strategies. 2016. [Online]. Available Through:
<https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-
strategies/>.
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