Strategic Marketing

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Strategic Marketing

Executive Summary: Marketing is the process of buying and selling of good and services
by understanding the needs and wants of customers in order to generate more sales and profit.
This could be done by providing best packaging, timely delivering and also ensuring best quality
of products or services so as to achieve reputation within the market. This report covers PESTEL
analysis that provide macroeconomic framework of achieving sustainable competitive advantage
by identifying various threats that client face within the market. This report also comprises of
various modes such as merger and acquisition, strategic alliances and joint venture that provide
vast growth opportunities and also aids in diversification and expansion of a firm. This report
also covers Porter generic strategy which comprises of various strategies in order to determine
the attractiveness and profitability of an industry.

Table of content
Contents
Contents...........................................................................................................................................1
PESTEL ANALYSIS..................................................................................................................2
Various market entry modes........................................................................................................5
Market Segmentation and Targeting...........................................................................................7
Porter’s Generic strategy.............................................................................................................8
CONCLUSION................................................................................................................................9
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INTRODUCTION
Marketing is defined as the process of planning and executing the conception, pricing,
promotion, and distribution of goods and services in order to satisfy individual and
organisational objectives (Agyapong, Ellis and Domeher, 2016). In other words, it is the entire
process of satisfying the needs of customers and the main focus is to make them feel delighted.
Marketing strategy has a broad meaning to prepare a strategy so as to gain competitive advantage
by providing valuable services to their clients. This report is based on Rowlinson Knitwear
which deals with manufacturer of garments suitable for corporate wear and school wear that
emphasises on expanding its operations in USA with more variety of traditional and casual wear
so as to gain large number of customers across the globe. This report comprises of PESTEL
analysis which aids in ascertaining the various external factors so as to identify the strength and
weaknesses of a firm and it also includes various modes of market entry across the globe. This
report also covers segmentation and targeting special segments of customers within the market
(Zghidi and Zaiem, 2017). It also includes Porter Generic strategy so as to gain competitive
position in different segments of market.
PESTEL ANALYSIS
This analysis provides the framework that aids the macro environmentalist to scan the
external factors and assessing the resources which provide assistance in decision making of a
firm and also help in gaining a significant position within the market (Andaleeb, 2016). In other
words, it comprises of various elements such as political, economic, social, technological,
environmental and legal as they are regarded as the essential determinants of strategic
development in an economy. Rowlinson Knitwear produce garment for school wear and
corporate wear by focussing mainly on quality so as to satisfy large group of individuals. The
concerned firm expand its operation in USA by providing traditional and casual wear so as to
generate more sales across the globe. In the context of Rowlinson Knitwear, the various elements
of PESTEL analysis are presents as follows:
Political Factors: This includes various aspects such as corruption, taxation policies,
labour laws, foreign trade and many more. USA is considered as the second largest democracy
across the globe and it is considered as the political stable country (Bang, Joshi and Singh, 2016).
President is regarded as the head of the country and is elected for four years term. USA has
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strong ruling party and is ranked as 16th corruption perception index. The current political power
within the confine of America provide growth opportunities to its business enterprise, in addition
to that it brings threats on respective organisation which are as follows:
Opportunities: The stability of ruling party in USA provide greatest advantage to a
business as the rules and policies are regarded as same through every period and the management
of Rowlinson Knitwear can effectively use this to prepare a long term plan regarding the sales
and operation of a business. This help the management to prepare a stable policy and maintain
proper rules and regulations of a business.
Threats: With such a great scope, Rowlinson Knitwear faces a disadvantage in
performing its functions within USA. The threats faced by the company is limited design options
available as it does not provide traditional and casual wear which affect the financial sources of
business. In order to overcome this threat, the senior management of Rowlinson Knitwear make
an appropriate planning to expand the business operation and launch new products such as casual
wear to reach large group of users across the globe.
Economic factors: This element consist of various elements such as employment laws,
economic laws, corruption, interest rates and deal with financial and monetary aspects within the
country. USA is regarded as the largest economy in the world in terms of GDP ( Hales and
Mclarney, 2017). Foreign Direct Investment is considered as the great source of investment
attraction from different parts of the country.
Opportunities: FDI provide great opportunity to invest in development of the country
which help the respective firm to increase its sale and profit and also provide good source of
income from different parts of countries around the world. Availability of cheap labour also help
the corporation to outsource its operation in country like America.
Threats: The arise of Brexit and US- China trade war has created an imaginable chaos
and also affect the adversities of the economy. This led to increase in prices of products or
services which create a negative impact on large group of individuals.
Social elements: This factor is related to society and culture of respective region. The social
factor constituent of various elements such as buying behaviour, change in trends and lifestyle,
satisfaction from products, taste and preferences of customers and so on. Being the developed
nation, USA is considered as the highest literacy rate and highly populous country in the world.
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It is a diverse culture and is considered as the hub of new innovation and fashion (Hollender,
Zapkau and Schwens, 2017).
Opportunities: With such a diverse in culture and ideologies, business like Rowlinson
Knitwear has develop co design process and large potential market in USA in order to reach
large number of customers. Also, this generate more sales and thus increase the profitability of a
business enterprise.
Threats: There are large number of competitors present in the market which posses a
greater threat to a company. To overcome the threat, the respective firm can deal with wide range
of garments and also ensure quality products to their customers at a reasonable cost so as to gain
maximum satisfaction.
Technological elements: this comprises of various aspects such as innovation, research and
development, rate of obsolescence and so on. USA is considered as technological advanced
country in the world (Thrassou, Vrontis and Bresciani, 2018). The innovation of technology
provide greater aspect of growth to a business and contribute to more sales and profit.
Opportunities: The emerging trends of technology help the organisation to promote
introduction of online shopping and also help in signify the working process. This provides a
greater ease of convenience among the group of customers and also ensure timely delivery of
goods or services across the globe.
Threats: The advancement of technology has been adopted because of greater
competition in the market as lot of investment is done which led to greater risk of threat of
obsolescence.
Environmental factors: this include elements such as climate, weather, geography, wildlife and
many more. USA is enriched with diverse geography and wildlife and also faces toughest
weather in the world which create a negative impact on its business operation and usual life of an
individual (Josephson, Johnson and Mariadoss, 2016). The opportunities and threats in relation to
Rowlinson Knitwear are presented as follows:
Opportunities: the environment conditions provide greater opportunities to business like
Rowlinson Knitwear to overcome the crises. This provide assistance to a firm to build a positive
reputation in an around the world and thus increase future aspects of business.
Threats: The management of respective could reduce the use of plastic bags and also
reduce the carbon footprints in order to achieve sustainable objectives in a long run. By looking
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an increase in awareness, the government take necessary steps to provide protection towards the
environment that help in sustainable development of country.
Legal factors: this comprises of various elements such as copyright, patent laws and it is
regarded as the last element of PESTEL analysis. Every state in USA has its own legal structure,
rules and regulation and also provide strong intellectual rights to every business enterprise (Kim,
Lee and Kim, 2016).
Opportunities: the legal factors provide greater opportunities to every business
association to frame its own guidelines and also ensure proper criteria of working procedure
within an organisation. As it provides certain rights such as Consumer Product Safety
Commission, to provide safety emphasises to their clients and also provide proper working
environment to their employees in a respective firm.
Threats: The law and regulation of country are considered as rigid which affect the
business operation within the confines of America. Thus, this result an increase in overall cost of
the company. To overcome this situation, the concerned firm should focus on providing strong
intellectual rights to their business partners by emphasises on safety within the market.
Various market entry modes
There are various modes of market entry such as merger and acquisition, joint venture,
strategic alliances and so on which provide growth opportunities to a firm and also aids in
generating more sales and profitability of a business enterprise. This also help in enhancing the
brand image within the market so as to attract large number of potential users. In the context of
Rowlinson Knitwear, various modes of market entry are presented as follows:
Merger and Acquisition: This is regarded as one of the most important mode of market
entry across the globe. As it provides vast growth opportunities to a business and also provide
expansion of business in different parts of the world (Kotler, P and et.al., 2017). Merger is
understood as the combination of two or more companies in order to expand its operations into
new segments and also help the company to accelerates its market share. Acquisition is one when
one company acquires the other company’s share which help company to increase their source of
revenue stream. In the context of Rowlinson Knitwear, the merits and demerits are given
beneath:
Advantages: It provide greater economies of scale and also result in diversification and
provide a way to enter into a foreign market. Also, it provides an assistance in gaining new
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technology which results a cost efficient to a business. This help in achieving greater financial
resources and skilled labour and result in eliminating the competition within the confines of
America.
Disadvantages: this could result in diseconomies of scale in case of large number of
individuals as due to merger, there is reduction of employment opportunities. Also, this also led
to decline in competition which results in substantial increase in prices of product or services as
customer would not have various options to choose from as they have to acquire goods or
services at increased prices.
Strategic Alliances: Strategic Alliance is better understood as the agreement between two
companies by pooling their resources in order to achieve common goals of business enterprise.
The main reason behind a company to enter into strategic alliance is that to expand its operations
into new market, or to improve product line and so on. The forming of strategic alliance is that it
provides an assistance to business to achieve growth quickly and efficiently. Also, it ensures
mutual sharing of resources so as to gain significant position within the market. With reference
to Rowlinson Knitwear, the merits and demerits are given as follows:
Advantages: One of the greatest advantages is that it enhances the productive capacity in
order to extend the supply chain of a business. Also, it provides greater economies of scale by
decreasing risk and cost that provide greater growth opportunities in the market. Strategic
Alliance is useful in case of competitive advantage through the development of new products or
technologies.
Disadvantages: The most important drawback is that it could lead to trade secrets by
sharing of knowledge and skills. Also, lack of communication results in wrong decisions which
affect the business operations and its credibility in the market. Another major drawback is that
due to difference in work culture and language barrier result in arise of conflict between the staff
and management of companies.
Joint Venture: It is defined as the business entity which is formed of two or more companies
that pool their resources by sharing a common goal (Laufs, Bembom, and Schwens, 2016). This is
considered as another method to enter into market by expansion of operations in order to large
segment of new market. Joint venture ensures sharing of profit and losses among the partners and
create synergies. In the context of Rowlinson Knitwear, the advantages and disadvantages are
given as follows:
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Advantages: Joint venture provide a great opportunity to ensure to create a business
network across the globe. It also helps in sharing of new business ideas and knowledge which
ensure a wide success in a business. It also results in decreasing the burden of cost of advertising
and marketing on one party.
Disadvantages: Due to lack of proper communication strategy, the objectives of business
are not clear among the group of individuals as it results in poor coordination between the
employees and management of a company.
It has been analysed that merger and acquisition is considered an appropriate mode of
market entry. This provide various growth opportunities to a business like Rowlinson Knitwear
as it expands its operation in America so as to reach large number of customer segments in the
market. This also help in gaining a significant position by using latest technology and financial
resources and skilled labour.
Market Segmentation and Targeting
With respect to marketing field, Targeted marketing is regarded as beneficial to both
users and marketers as it involves the consideration of three major activities that are discussed as
segmenting the market, targeting the market and positioning the offering.
Segmentation: It is defined as the process of segmenting a heterogenous market into several sub
markets as different group of individuals have different preferences as they differ in their buying
behaviour and also it is based on the fact that the market is regarded as heterogenous rather than
homogenous (Schuetz and Schrefl, 2017). In other words, segmentation identifies and priorities
group of customers with common characteristics so as to target the most profitable group as it
starts with identification of common characteristics of common group of individuals by
analysing their frequency and monetary characteristics. There are various group of customers
such as children, women, the elderly and ethnic minorities have made them attractive market
segments. The focus is not only designed to profitable segments but also to better understand the
needs and wants of consumers in the market.
Targeting: The targeting decision identifies the people or organisation in a product-
market towards which an organisation directs its positioning strategy. One of the major
challenges of management is to select the best target market. It consists of identifying and
analysing the segments in a product market and also emphasises on designing and implementing
a positioning strategy for each target market. When the target market has been identified, the
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business would meet the criteria of elements of marketing mix such as product, price, place and
promotion. Rowlinson Knitwear could direct their offerings at a specified segment of customers
instead of using a scatter approach. As a company’s product sales grow, it may expand its target
market in United States of America in order to increase its revenue stream and profitable
opportunities within the market. A target market share similar characteristics such as geography,
buying power and income and it also monitor that taste and preferences of customers across the
globe. In a respective firm the targeted customers are children’s or men for uniform and formal
wear as it aids in contributing more sales and profitability of a business enterprise.
Positioning: It is defined as an art of creating a distinct image of product in the mind of
clients. As positioning creates a brand identity and value proposition to the target audience and
also create product differentiation in the mind of prospective buyers (Sahaf, 2019). Marketers
prepare an appropriate strategy through use of various methods of promotion in order to gain a
greater market share across the globe. The positioning strategy of Rowlinson Knitwear is to
provide excellent quality of goods and also ensure fast delivery to their customers especially
children’s. It also helps in building effective reputation of product among the group of
individuals and increase the profitability of a business enterprise.
Porter’s Generic strategy
Porter Generic strategy provide the framework of achieving competitive position by
determining the level of profitability and attractiveness in order to achieve superior returns. In
other words, it consists of various elements such as cost leadership, differentiation and focus
strategy in order to identify chosen market scope. The firm could focus on differentiated
products at a reasonable price in order to gain maximum customer satisfaction from different
parts of the country. With reference to Rowlinson Knitwear, the three strategies of Porter’s
generic are described as follows:
Cost leadership strategy: this strategy emphasises on providing the products or services at a
lower cost in several segments of an industry (Paluchová, 2017). As the main motive of firm is to
earn higher profit as compared to its competitors within the market as it also helps them to
achieve maximum market share. One of the effective ways to achieve cost advantage is that to
reduce the overall cost of production and also ensure optimum utilisation of resources and
vertical integration decision which help in achieving the competitive advantage across the globe.
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Also, the firm has access to capital in order to make an important investment in production assets
which is considered its major inner strength.
Differentiation strategy: this strategy emphasises on development of new product or
services that focus on unique attributes and adds value to their customers within the market (Lin
and Renpu, 2019). This allow the corporation to charge a premium price as it provides
differentiated product or services to their customers in different parts of the country. There is risk
associated with this strategy that include imitation by competitors and also change in trends and
preferences of different group of clients within the market. With reference to Rowlinson
Knitwear, the firm has highly skilled team and develop the position reputation by ensuring
quality specifications.
Focus strategy: This strategy emphasises on combining cost advantage and
differentiation in order to achieve a competitive position across the globe. The business
enterprise that are using this strategy emphasises on high degree of customer loyalty and this
results in generating more sales and profitability. Firm that emphasises on focus strategy are able
to develop broader market segments by satisfying the needs and wants of consumers in the
market. the main objective of a firm is to serve their potential user by offering unique services in
order to build a strong brand loyalty amongst them.
It has been analysed that cost leadership is considered as an appropriate strategy. In the
context of Rowlinson Knitwear, it provides its product at a reasonable price in order to gain
maximum customer satisfaction across the globe (Nurmi and Niemelä, 2018). The respective firm
could achieve greater profit by reducing the cost of production that results in generating more
sales and thus increase the profitability of a business enterprise. Therefore, it allows the firm to
increase the positive reputation in an around the globe and aids in gaining market share by
expanding its operation in different parts of the country especially America.
CONCLUSION
From the above furnished information, it can be summarised that the business environment
in which company carry out its operation is regarded as dynamic. The main focus of marketer is
to satisfy the needs and desires to customers in order to generate more sales and profits across
the globe. It has been analysed that PESTEL analysis help macroeconomist to monitor various
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external factors and also aids in assessing the resources of a firm. Segmenting and targeting the
market is very important to determine the various needs of market and potential users that differ
in their behaviour and buying decisions. It has also been concluded that Porter generic strategy is
essential to achieve competitive advantage by providing product differentiation to its customers.
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