Strategic Marketing: Analysis and Recommendations for Rowlinson Knitwear

This report provides a strategic analysis and recommendations for Rowlinson Knitwear, including a macro-environmental analysis, market-entry modes, market segmentation and targeting, and Porter's generic strategies.

Strategic Marketing

Contents
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Recommend a product or service and a country and provide a macro-environmental analysis
(PESTEL) explaining the possible opportunities as well as threats...................................................3
Critically assess three modes of market-entry that could be suitable to your client. Out the three
options, make a recommendation with justification as to the most appropriate one..........................5
Description of market segmentation and targeting in form of targeting its consumer appropriately..6
Explanation of Porter’s generic strategies..........................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES..................................................................................................................................11

INTRODUCTION
Strategic management helps in planning, implementing and evaluating strategies
which may help in improving them. It helps in attaining the goals of the business which
results in gaining competitive advantage over the rival firm. The introduction of strategic
management in business helps in improving the quality of goods and services which results in
improve in profit margins (Moutinho and Vargas-Sanchez, 2018). It also helps in identifying
the affected areas which are impacted by organisational development and help in planning a
way to fulfil the wants and demand of the customers. The report is on Rowlinson Knitwear
which is a manufacturing company and known for manufacturing premium garments. Under
the report the company will use some marketing plan to solve the issues and problem going
around. The report will cover macro environment analysis, market route, STP analysis and
Portor’s generic strategy for effective business activities of firm. It will help Rowlinson
Knitwear in improving its efficiency.
MAIN BODY
Recommend a product or service and a country and provide a macro-environmental analysis
(PESTEL) explaining the possible opportunities as well as threats
Rowlinson Knitwear is a manufacturing company which commenced in 1935. This
company is known for producing and selling garments for independent retailers of school and
corporate wear. Now the company is planning to invest in Asian market in a new type of
product for the company which will be Formal Shoes.
PESTLE Analysis: Under this the company will focus on the external factors which
can bring deviation in the actual set goal. The company try to analyse the external factors and
the focus is on turning those factors in company favour so that long term objective can be met
without any delay. Rowlinson Knitwear has analysed PESTLE Environment so that they can
get benefitted by it. They are as follows:
Political factors: It mainly focuses on the political party and their regulations in the
economy. Rowlinson Knitwear needs to do thorough study of the government of the Asian
country where they are planning to start their operation. It includes government stability and
instability, the level of corruption and tax rates which can affect the company operation
directly. The political factors may benefit the company and it can also be a problematic factor

if it is against the company. Stable government is an ideal situation for a company but if
instability is their chances of risk is more.
Economical factors: This is another factor which can affect the company plans. It
includes the exchange rates, Inflation, unemployment trend, currency rates. The main reason
behind doing business in Asian country for the company is that the cost of labour is
comparatively less. Inflation rates may play a major role so company need to analyse
economical factors. Proper analysis may give them higher profits. Change in the economic
factors like inflation rates and exchange rates may affect the company positively or
negatively.
Social factors: Arguably the most important factor for the company is the social
factor. Company need to understand the trend, culture, belief, value and life standard of the
country and accordingly they should pitch the products to them. They need to make sure that
the products are according to the taste and preference of the Asian market. It is very
important to connect with the society in which the business is established. It will result in
positive publicity and higher growth.
Technological factors: Many Asian countries are not technological advance country
which may be a problem for Rowlinson Knitwear. It is very important to keep on doing
innovation and adopt the latest technology. The firm can use social media tools to get the
market share which will result in increase customers and revenue for the company (Dogu and
Albayrak, 2018).
Legal factors: These are the regulations and legislation which are formed by the
national authority which may result in running the business effectively without any problem
so that they can focus in their goal. In Asia the government always encourage the foreign
direct investment so that they can get more foreign exchange and it also helps in boosting the
economy of the country. It affect Rowlinson Knitwear in many ways as whatever they are
doing need to be legal and accordingly to the rules for the country. If the company follows all
the laws and rules of the government their will be no problem from the govt. Side and they
will even promote the company when required.
Environmental factor: The company has some obligation towards the environment as
well where they are doing their business. They are looking to start a formal shoe business at
the same time they need to make sure the material used and the process used is not affecting
the environment at all (Percy, 2018). This factor includes various factors like climate change,

recycling, waste management, weather, pollution act etc. Rowlinson Knitwear will not get
affected by this factor as they are following all the measures which can result in eco friendly
practice’s. But the introduction of COVID 19 has played a spoil sport for the company as all
the operation has stopped and it is acting as a huddle on companies planning.
After analysing all the factor it can be said that if the company take care of the above
mentioned element they can really do well with their new product ‘formal shoes’. The
customer base is potentially huge and if they keep all the factors in mind the chances of
growth is huge.
Critically assess three modes of market-entry that could be suitable to your client. Out the
three options, make a recommendation with justification as to the most appropriate one.
The current market scenario depends upon globalisation. If a company want to do
well they should know how to globalise. It gives new market to the company and with that it
gives rise to new opportunities. Rowlinson Knitwear has options to use various modes of
market entry to enter into the Asian market with their new product which is Formal shoes
(Rowlinson Knitwear, 2020). The ultimate focus of the company is to get more and more
profit. Three best modes that Rowlinson Knitwear can adapt are:
Strategic Alliance: Under this mode of entry, 2 or more companies comes into an
agreement so that they can work together to achieve the predetermined goal or objectives in
the most effective manner. There are 3 types of strategic alliance namely: joint ventures,
equity strategic alliance and non equity strategic alliance. Rowlinson Knitwear can think of
doing partnership with existing market player and then do business. The benefit of doing that
is the goodwill of the company will be more-established and they do not need to work on
making reputation in new market. Existing partner can help the company as they will be
having all the knowledge about the market. The cost will be comparatively low and they can
exit the market easily when required. The problem with this is they have to share their profit
and they will be under a shadow of another company.
Merger and acquisitions: This is another way to enter into a new foreign market. It
also helps the company in many ways. Within merger two organisations merge with each
other forming a bigger enterprise whereas acquisition means when one organisation takes
over another organisation. Herein, Rowlinson Knitwear it is a good option as it gives the
company to extract the Asian countries but at the same time it will be more costly as
acquiring a whole established firm need funds and it may result in increase expenditure of the

company. So a company is taking huge risk and if it does not go well, it may result in huge
losses in a foreign market (Sahaf, 2019).
Foreign Direct Investment: It can be done when company is looking for complete
ownership of the business. They don’t want intervention of any other company. It is very
expensive in nature. Rowlinson Knitwear need to do complete study about the Asian market
and then they need to target a country where they want to do their business. Doing FDI means
entering into a foreign market without any name. Company need to earn goodwill first, make
a name in the market and then only they can think of profit. Company had to do thorough
research and the risk factor is at highest level if the company opt for FDI.
So from the all three option the most suitable option for Rowlinson Knitwear is
Merger and Acquisition. The company can go for it as the product is new (formal shoe) so
they cant take risk by doing FDI. Merger will help the company to use the name of a existing
player and they can do their business based on other company reputation and gradually they
can build the market based on the quality of the shoes they are offering (Cotterill, 2019). The
people of Asia will accept the product more if they know about the company before. Merger
and acquisitions will help in doing that. So it is the best option out of the 3 and it may result
in achieving the set objectives of the business.
Description of market segmentation and targeting in form of targeting its consumer
appropriately
It is important for an organisation to decide their market segment as well as target in
effective manner to whom they want to sell their products and services. For this purpose,
Rowlinson Knitwear will implement STP model which stands for segmentation, targeting and
positioning(Hunt, 2018). Moreover, it is the process of determining market on the basis of 3
elements of STP model which play important role in targeting and segmenting customers.
With the assistance of this approach management of respective company will able to segment
customers, positioned and target them for their new product i.e., “Formal shoes”. Explanation
of this in relation of Rowlinson knitwear are discussed below:-
Segmentation–In this factor company divide market within small sections with
similar offerings required as well as identifiable characteristics with the aim of choosing
proper target market. In relation of Rowlinson Knitwear management of company can
classified segment by considering basis of geographic, behavioural as well as demographic.
Within Asian market, management of respective company classify market in form of density

as well as professional people for their new products. Respective company can select 20 to 45
year age group consumer and provide to both male as well as female target audience. In
addition to this, within demographic form the company can divide it on the basis of income
as well as provide it to every level people i.e., upper, upper middle and middle class. Along
with this, on the basis of behavioural factor if company segment it will form those people
who prefer to wear formal shoes. This segment will be advantageous for company because it
will provide assistance in enhancing productivity, sales, profitability and many more.
Targeting–This procedure is related to selecting effective or appropriate market
segment which provide assistance in profitability as well as sales maximisation of business
firm(Ducange, Pecori and Mezzina, 2018). In relation of Rowlinson Knitwear, management
division of company will target people from 20 to 45 years age group of upper, upper-middle
as well as middle class and individual also who wear Formal shoes while going office or
college. Because it is important of men’s and women’s both wear formal shoes because
footwear gives first impression in-front of other people. In addition to this, within this term
Rowlinson Knitwear targeting school, college as well as office going people. Although,
company will launch “Formal Shoes” which are suitable for them in enhancing their
customer base because mostly people prefer to wear formal shoes while going college as well
as business purpose. Thus, these potential customers of business firm are main users of such
products which company offering and it will also provide assistance in enhancing sales as
well as profitability of company within market area like Asia.
Positioning–It is an act of setting position within specific market area with the
assistance of effective characteristics as well as features of products and services. In relation
of Rowlinson Knitwear administration division of company will able to get proper position
within market area as the business firm is offering goods according to the requirement of
customers and it will also help them in fulfilling their present as well as potential customers
demand in better manner(French and Gordon, 2019).Thus, by offering this new product at
affordable price Rowlinson Knitwear will able to build strong position within specific
market. Along with this respective company will be able to use social media as an
promotional tool for promoting their new product as well as creating awareness related to the
product which they want to offer customers. Moreover, management department of
respective business firm will able to offers its product through online source by utilisation of
mobile application. So that, business firm will able to attract customers towards their offering
in effective manner as well as able to enhance sale.

Thus, with the assistance of STP model Rowlinson Knitwear will able to segment as
well as target their customers in more effective manner and also able to fulfil their needs in
appropriate manner.
Explanation of Porter’s generic strategies
Porter’s generic model was formulated by Michael Porter in 1980 for uncovering the
ways through which an organisation will able to gain competitive advantages in long term
within competitive market area. Respective model was developed for gaining competitive
advantages from market place so that company will able to sustain as well as survive within
specific market area in long term. Porter’ s generic strategies include action such as cost
leadership, differentiation leadership, cost focus as well as differentiation focus. Through
implementation of respective concept business firm will able to gain competitive advantages
while launching new product in Asian market. Explanation of this strategy in relation of
Rowlinson Knitwear are mention below :-
Cost leadership –It is foremost strategy of Porter’s generic model and play important
role in gaining competitive advantages from market area. In relation of Rowlinson Knitwear
management of company adopting this strategy while bringing new product which provide
assistance in gaining competitive market advantages in that company is operating. For this
company management utilise low pricing, competitive pricing, discount strategy and many
more(Adams, Freitas and Fontana, 2019). These strategies are advantageous for business firm
because due to this customer gain product at price which is affordable and they will able to
retain with company for long term. In addition to this, cost leadership is competitive
advantage by impacting fabricating cost which does it in two compelling manners like by
charge lower cost to boost piece of the overall industry and limiting expense to expanding
benefit . The separate organization need to dispatch Traditional Wear in Asian market on the
grounds that the interest of these sorts of fabrics is high in this locale. So winning benefit,
improving profitability will simple for the organization. Aside from this, the firm likewise
make improvement in its client base and holding them till long haul by offering merchandise
and ventures according to their necessities and wants.
Differentiation – As per this strategy company have to bring something innovative as
well as attractive in market area for fulfilling customers needs and wants in effective manner.
In addition to this, there are several factors which can be important as well as have to be
consider within action plan like premium quality, durability, reliability, branding, wide

distribution at global level all important tools as well as effective publicity. In Rowlinson
Knitwear, the company is going to run it’s expand its business in Asian market with it new
their products i.e., formal shoes. This product is beneficial because it is able to provide
effective satisfaction to consumer’s needs as well as demands so it will provide assistance in
fulfilling firm need to gain competitive advantages.
Cost Focus –It is another strategy in that company ear advantages of rivalry market
by concentrating on pricing strategy of firm. If respective company use cost leadership plan
then they will able to make modification and fluctuation within their pricing strategy in form
of changing low as well as higher them. For example, Rowlinson Knitwear over competition
level within market area in that company is operating or conducting their operations.
Moreover, if rivalry is high then company utilising low pricing, discount strategy and many
more for attracting customers.
Differentiation focus –It is largest strategy of respective model in that company focus on cost
of product for gaining competitive advantages. If respective organisation adopt this strategy
then their market will focus on only creating changes within their pricing strategy as well as
innovation in their offerings for gaining competitive advantages(Galli, 2020). Thus, if
company focus on product then they will implement modification in their commodity.
Whereas, if company is focusing on cost then it will implement modification within their
pricing strategy through utilisation of other strategies of its new product. it tends to be
dissected that the organization of Rowlinson Knitwear can receive broadening evaluating
procedure it help with increasing serious advantages by making change in estimating
methodologies or by making alteration in item. It will likewise help with making a viable
situation in to commercial center and continuing or enduring the matter of the organization
specifically showcase till long haul length. It will likewise basic for association to make
advancement and development in the matter of Rowlinson Knitwear during the hour of
business extension.
CONCLUSION
After going through overall discussion it has been summarised that, for an business
firm it is important to design their strategies in effective and good manner because it play
important role in growth as well as development of venture. Because with the assistance of
good action plan business firm get aware about the factors or elements which have impact on

business association in positive as well as negative manner. In addition to this, suitable action
plan also provide assistance to business firm in gaining competitive advantages as well as
benefits of suitable specific marketplace position. Moreover, by using suitable strategies
such as PESTEL analysis, STP analysis as well as Porter’s generic strategies are essential for
organisation because it provide assistance in developing company, increasing profitability
and market share.

REFERENCES
Books and journals
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from promise, to neglect, to prominence, to fragment (to promise?). Journal of Marketing
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French, J. and Gordon, R., 2019. Strategic Social Marketing: For Behaviour and Social
Change. SAGE Publications Limited.
Adams, P., Freitas, I.M.B. and Fontana, R., 2019. Strategic orientation, innovation
performance and the moderating influence of marketing management. Journal of Business
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literature. In Start-Ups and SMEs: Concepts, Methodologies, Tools, and Applications (pp.
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Percy, L., 2018. Strategic integrated marketing communications. Routledge.
Sahaf, M.A., 2019. Strategic marketing: making decisions for strategic advantage. PHI
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Cotterill, R.W., 2019. Competitive strategy analysis for agricultural marketing cooperatives.
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Online
Rowlinson Knitwear. 2020. [Online]. Available Through: <
https://www.linkedin.com/company/rowlinson-knitwear-limited>