Marketing Strategies and Market Entry

The assignment requires discussing different ways for a firm to enter into a new market, including licensing, direct exporting, franchising, partnering, and piggy-banking. It also covers Porters generic strategies, which refer to the source where an organization survives in a large competitive marketplace along with effective scope of the market.

STRATEGIC MARKETING

EXECUTIVE SUMMARY
Strategic marketing refers to determination of one or more than one sustainable
competitive benefit that company has in market it provides and also resources al;location in order
to be exploit them. This assignment explain regarding introduce new and innovative cars with
attractive features in Brazil in order to expand business in large market. The main motive of this
organisation is to attract large number of people which like to drive most. Before conduct
business, it is necessary to analyse internal as well as external factors. It will be helpful in
introduce any new service and goods at market place. Firm can successful launch particular new
goods and services in market of Brazil. In order to present the findings, this report has attempted
numerous strategies of market entry such as joint venture, acquisition etc. along with optimised
the Potter's generic model, market segmentation etc.

Table of Contents
INTRODUCTION...........................................................................................................................1
PESTLE analysis.........................................................................................................................1
Market entry strategies................................................................................................................3
Market segmentation...................................................................................................................5
Porters generic strategy...............................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Marketing strategy refers to forward looking and long term approach to the approach
with fundamental aim to attain sustainable competitive benefit. Companies use the strategic
marketing in order to develop better plan for fulfil requirements while enhancing growth and
profit level. It is helpful in develop effective marketing plan to accomplish consumer needs,
maximise profit and make improvement in performance of firm. This report is based on Dacia
Duster that is compact sport utility vehicle (SUV) developed jointly through French Renault
producer in particular market like Iran, Mexico, Egypt, UAE etc. However there seems to be a
growing opportunity for this car in the Brazilian auto market. Therefore, as part of this report
macro- environment analysis of Brazil will be conducted to assess the organisation’s
opportunities and threats which are important for an organisation trying to expand it
internationalisation operations (Baker, 2014). Also three entry modes will also be assessed with
the aim of recommending one which might be suitable for the organisation to go into the
Brazilian market. Market segmentation process leading to the selection of a prioritised segment
will also be carried out. Finally Porter’s generic strategies will also be analysed on the chosen
organisation to select which on might be appropriate be embarked on by the organisation to gain
competitive advantage.
PESTLE analysis
Dacia is car producer firm that take its name from historic region which constitutes more
of the existing day Brazil. This firm was establish in year 1966 and also has been subsidiary of
French Car Producer Renault company since 1999. It is largest exporter and top firm in terms of
revenue. Its target people are middle class of people in order to gaining more competitive
benefit. It is helpful in get positive result. At market place, this company has large number of
competitors. Dacia organization can expand its business in Brazil country because under this the
political stability is goods and there is no expansion of this company. So, it is a main reason to
expand business in Brazil country. Regarding this, it is essential for Dacia organisation to
analyse its all macro economic environment that includes political, economic, social,
technological, legal and environmental factors. PESTLE Analyse is an effective tool that used
through marketers in order to measure and also monitor external environment components that
develop negative affect on business (Bar‐Isaac, Caruana and Cuñat, 2010). There is no control of
firm on all these factors. Before launching new product at market place, it is a responsibility of
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organisation to analyse its external environment in an effective manner. It will be helpful in
provide advantage to firm and product will be launch in successful manner.
Political: Dacia Duster has sell their cars in all over the world through this they are able
to get global presence with high profitability. Company has located in Brazil where government
has develop strategies in order to provide opportunities to several company. Firm has face strong
tax policies for exporting product outstations resulted overall profits has reduce. Inbound
investors has affect Dacia Duster business activities. Government of Brazil has develop
regulation for globalization and motivate enterprises to sell their goods and services to another
nation through this they are able to get higher exchange currency of different country. Political
party has develop their reputation in another nation so that international trade has been done
easily and economy of the nation has get high growth as compare to before. Brazil is ranked 79
from entire nations in corruption due to this transparency index has dropped by 43 in the year of
2014 to 38 in 2015. Its negatively effected Brazilian citizen. Advantages: Dacia Duster organisation is a brand which manage the political relations
with all work as well as country by considering decisions political. Disadvantages: Modifications in the laws of industry licensing as well as having an
easily entry within the foreign companies which raise competitions within UK.
Economical: There are several economical factor are available which are effect
organisation negatively as well as positively. Some are interest rate, taxation policies, exchange
charges, inflation, per person income capabilities, foreign trade and many more. All these factor
of Brazil has affected Dacia Duster performance in long run. Management of the company has
focus on economical growth opportunities to for this they implemented six sigma strategies, lean
production etc. Through this, they are able to produce goods at economic of scale and offer
product to their clients at lower cost as compare to their competitors at market place. Some other
economical elements which affect Dacia Duster is strong technical capabilities or skills of
employees, effective infrastructure, competitive workers cost model, highly mobile work forces,
adaptive technological investment authorities and many more. Brazil has higher GDP rate in
2010 and that is continuously drop due to rise population. Higher FDI inflows has develop
potential growth in ling run. In rescission time unemployment should be rise from 4.5% to 12 %. Advantages: In this developing country, United Kingdom is having a strong economical
conditions.
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 Disadvantages: Increasing in manufacturing of products price will raise a financial
burden on organisations.
Technological: In present working environment, in auto- mobile industry each one
manufacturing company has run their technical centre so that they develop new as well as
innovative feature in their existing product and services through this firm are able to achieve
competitive benefits as compare to competitors effectively and get high market share. Decia has
their own R & D department which are continuously trying to enhance their quality of product
resulted rise customer's satisfaction and brand value. By suing technologies, decia has increase
their employees performance, productivity thus help organisation better utilisation of available
resources resulted achieve economic of scale appropriate. Brazil has spend approx 1.16 as well
as 1.21 % of total GDP in their research and development. As compare to US, Russia Brazil has
poor technological infrastructure and investment but government of the nation has push the
development of technology. Advantages: It will help in using latest technology which raise productivity and sales of
company. Disadvantages: It decline the requirements of employees workforce which may increase
economy unemployment.
Environmental: Government of Brazil has create rule and regulation to protect nature
environment. It is a all firms obligation to implemented these entire policies at their
manufacturing unit so that they effectively run their whole business activities appropriately.
Management of Dacia Duster has focus on small cars quality so that through this they reduce
heavy vehicle on road resulted decrease all kinds of pollution like sound, air, water etc. It also
help to cut down traffic on roads of Brazil and any other country where they are sell their cars.
Brazil government has develop environmental policies in order to stop emission as well as
deforestation through this they save natural environment of the nation. Advantages: Dacia Duster organisation has capitalised into sustainability. Disadvantages: Organisation ignores the hazardous waste from supply chain.
Legal: Government of Brazil has develop laws related to production firm so that it is a
management of Dacia Duster responsibility to work accordingly for avoid legal issues. Strike is a
common issue in this industry which are affected organisation performance negatively. It is a
legal obligation for Dacia Duster to provide equal opportunities to all candidate, balanced salary
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as well as other benefits to all employees and make medical insurance for each one. Legislation
has very from state to state in Brazil and total 33 % of GDP amount has came through taxes. Advantages: They are having an positive market image as well as it concentrate on some
laws like as data protection act, minimum wage act etc. Disadvantages: Dacia Duster is not performing a ethical and legal way as it avoid laws
of government as due to that it will not survive within a market.
Social culture: Dacia Duster has implemented their ethical responsibility at their work
place in order to protect employees as well as clients right related to firm and its product. Some
social cultural factors are lifestyle, living standard, per person income, saving habits, disposable
income and many more. Dacia Duster has analysis these factor before manufacturing cars
through this they are able to achieve goals and objective in limited period of time appropriately.
Company has organise various events for charity and get positive brand image in front of clients
resulted get higher customer's satisfaction in long run. In Brazil approx 20 % of total population
has came under poverty line. There are number of individual are high class and wealthy but also
their there are lots of person are get minimum income. Advantages: It is an changing environment, customers wants and needs are changing on
regular basis. Disadvantages: It is important for organisation to satisfy social responsibilities towards
society.
In order to face high competition at market place, there is a requirement to determine
main threats as well as opportunities which are concerned to Dacia firm. The possible threats and
opportunities which consumers face with in market given below as above:
Opportunities- Dacia is care manufacturer and it conduct its business in many different
countries. In this, consumers face problems related to its high cost cars. So, there is an effective
opportunity for Dacia firm to reduce cost of its cars. It can also extend its servicing as well as
distribution network in order to enhance market penetration. Through this, more consumers will
be attracted towards firm and its profit level can be enhanced in an effective manner.
Threats- At market place, there are large number of rivals of Dacia Duster organisation
like Tata motors, Nissan, Ford, Honda etc. So, there is a requirement to this firm to introduce the
innovative features at competitive market which leads to be differentiation in goods (Crane,
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Kawashima and Kawasaki, 2016). The people wants new features in products so Dacia firm
needs to develop something to attract new consumers as comparison to other strong competitors.
Market entry strategies
It is a planned strategy of delivering products at a new targeted market in a profitable
manner. There are various ways for a firm through which it can enter into a new market. It
includes licensing, direct exporting, franchising, partnering, Piggy-banking and more. All
strategies have own procedure and aims which are mostly affected by tariff rates, cost of
marketing and transportation, degree of adaption and more. Generally companies focuses on
taking their business in new market area in order to increase sales performance and gain
profitability. For this process, industry like Dacia Duster Company needs to adopt more
strategies as single technique cannot help in accomplishing the same. In this context like direct
marketing used to sell products in a single market while at international level, there is a
requirement to merge with other firms or set up a joint venture (Fulgoni and Lella, 2014). Thus,
in context with this association, managers use following three main strategies for entering into
foreign marketplace:-
Acquisition: It is also known as expansion strategy as well as most powerful also in driving
globalization. This method is most beneficial in increasing market power, acquisition of
technology, minimising risks, optimum utilisation of resources and more. But the major
drawbacks of this kind of policy is that if firm is newly established then employers may not have
gained much experience and expertise for managing entire unit. Advantage: The biggest advantage of this method is tax benefit. In addition to this, by
merging with other firms, an enterprise can get more power and control over the markets. Disadvantage: If implementation of merger or acquisition dealing are becoming delay
then it would rise costs.
Joint Venture: It is a particular form of partnership in which two firms make an agreement to
export products or services in common marketplace. In this process, both companies collaborated
and makes a new association. It would help them in sharing all risks and profitability with each
other in equal ratio. Employers of these firms have equal contribution and control over proper
rights (Hollensen, 2013). The main advantage of this kind of strategy is that it financially
increase strengths of both companies. But various problems are also arise in such situation like
conflicts due to different perception of employers.
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 Advantages: It provides various opportunities like gaining new sights and expertise as
well as access better resources. Disadvantage: Flexibility can be restricted as well as clash of cultures can be occurred.
Exporting: This strategy helps a firm in mapping out where and how to sell and deliver
commodities in new market area. It defines various ways through which a firm can get advantage
in delivering high services to customers. In addition to this, it provides various methods like
direct export, indirect export, partnership and alliances etc. Advantages: This method helps a company in grabbing market opportunities, expanding
business, greater production and more.
 Disadvantages: In overseas and foreign market a firm may loss control in business
activities as well as follow various type of laws.
Market segmentation
The procedure of market segmentation can be termed as the process where whole
individual exists in the certain market eliminated and segregated into numerous classification,
units and teams (Kapferer and Bastien, 2012). The work is being performed accordingly with
numerous characteristics and features based on the people. This can be defined as marvellous
concept that may often executed in the marketing and business functioning in the recent market.
Entire organisation need to aim over the decision making process in regard of foundation and
manufacturing of fresh commodities in the business segments in Brazil. Hence, this can
coherently be affirmed that this is an efficient methods and techniques which can utilised for
ingression into unknown selling and market of services to their determined consumers in the
marketing environment.
Dacia Duster is subsidiaries of Renault which is formulating and developing certain
analysis that can assist in demonstrating efficient judgements in relation to accurate
segmentation. This can be categorised which has a extensive alternative number that exists and
can be implemented while eliminating the entire market of organisation. For analysing the
present condition of UK current market of Dacia Duster, this can be suggested for referring the
organisation for making STP model use in relation of performing work and task. The structure
consist of three major components such as targetting, positioning, segmentation which are
explained below:
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Segmentation: This can initially explain as the market segmentation techniques for
performing efficient separation of certain units into mass units on the basis of certain grounds.
This can help in understanding determined consumer and also aims over the evaluation of their
demands and requirement (Lorenzo-Romero and Constantinides, 2013). With instance,
performing segmentation on the grounds of distinct elements such as age, gender, standard of
living, age etc. that are linked with the psycho-graphics segmented into numerous attitudes,
values and interest etc. This is fundamental for Dacia Group to seek and discover their potential
buyers for determining and classifying the entire markets into different small booms. The
appropriate markets of Brazil which should be eliminating potential consumer for categorising
and dividing commodities which are associated within entire markets. Whole market should be
eliminated for their creative and unique services which are based on features and their traits of an
individual. In regard of this, middle and high class people are targetted for products and other
commodities of Dacia Duster. Beside this, a person around the age of 20 – 45 years including
families, business persons and entrepreneurs are focused for selling their products and services
within the UK (Morgan, Katsikeas and Vorhies, 2012). Hence, on the numerous grounds and
distinct factors, the company is implementing their strategies and approaches which can be
attained efficiently.
Targetting: In this phase, the company should set their aiming expertise and determined
consumer who are presenting their distinct deliverables and interest. Dacia Group also need to
manage and assess more suitable consumer and strategies for their services and product
promotion. The certain elimination and segmentation can aid them in setting clients perspective
in more adequate manner. New cars and other products of brand is performed and introduced to
those individual who are majorly make purchase decision from the referred organisation. In
regard to this, company need to aim over the main market targetting mainly focusing over
extensive consumer number. Also, they can manage and aims over middle, upper and lower class
of people for buying their commodities that can deploy in the large marketing environment of
Brazil.
Positioning: It is the final elements that is utilised for presenting and outlining the
existing marketing orientation and large market entity management in the marketplace. Dacia
Duster is more poplar and leading organisation i.e. functioned and led through the manager who
place their brand recognition at the location where major consumer number are attaining
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attention through this, Hence, it is convenient for organisation to cater in market with their
innovative and unique services in disciplined manner (Nath, Nachiappan and Ramanathan,
2010). Hence, organisation has unique and better recognition among their consumer as the cars
of Dacia Duster has its own reputation.
Henceforth, numerous consumers are aiming through organisation but they are certainly
aiming those consumer who are willing to purchase their brand products. Hence, these
organisation are making their deployment in business where organisation is attracting their
consumer using authentic methods and marketing techniques in more significant manner. The
company can identify and aim their services and products in easier manner through the assistance
of this.
Porters generic strategy
Porters generic strategies refer that source where an organisation survive in the large
competitive market place along with effective scope of market. There are four strategies such as
cost leadership, cost focus, differentiation and differentiation focus. Dacia Duster is formulating
and evaluating its market scope in Brazil with the help of using mainly two types of competitive
advantages by lowering the costs rather than competition and through this differentiation they are
evaluating and measuring the dimensions by customers for getting higher rate (Oly Ndubisi,
2012). This type of strategy is related to the point in which business scope of related activities
such as narrow and broad and on the other hand, the business desire to differentiate such
products in better manner. Such are described as under:
Cost-leadership Strategy: This is that plan that can be determined as very effectively
which help in achieving high competitive benefits so this will assist in offer lower rate of specific
marketing which gaining attention of large number of customers of Brazil. Dacia Duster can
enhancing their income and profits by depreciating the cost while delivery products. Along with
this, they required to developing effective strategies and policies that should be associated with
relevant pricing which help in capturing entire market area in Brazil. This is stated that they need
to support for increasing market share by providing low price clothes so entire citizens are afford
this and also purchasing the best appropriate level of satisfaction of their desired customers. Strengths: Key impact of this strategy to Dacia Duster is which emphasise over the
efficiency making organisation well positioned among the competitor.
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 Drawbacks: Requirement of higher volume of products and services sales is major
drawback of this strategy that company might unable to follow.
Differentiation Strategy: It is another plan of action where firm can producing various
types of products and services in better manner. This will assist in developing and maintaining
good image as comparing to their rivals. Dacia Duster facing various challenges within large
market place of Brazil. Therefore, this is required for company is to introduce attractive goods
which has better quality, feature, affordable rate for gaining attention of large number of
customers. This will help in satisfying different people at high level (Pagani and Otto, 2013).
Along with this, it is necessary for firm which maintain accurate researches, innovation and
betterment so this will assist in identifying data and information for interconnected with such
goods and also analysing required needs of common people of Brazil effectively. Strengths: This can assist Dacia Duster at the specific niche of marketing assisting in
operations of program operation strategy. This is also assisting in gaining raving
consumer base. Drawbacks: This is a unique strategy among other which lead to bold and numerous
consumer base of Dacia Duster leading to succession of business plan in market.
Focus Strategy: This is the final but not least policy that are mainly determined in the
niche market place. In this situation, company need to analyse current trends, satisfy all
customers needs and demand which should be focused while operating business in Brazil . Dacia
duster required to concentrate on rendering quality based services and goods who living in
different areas. In addition to this, they divided entire market place according to attributes of
specific products (Pagani and Otto, 2013). They concentrate on obesity which are suffer from
people. Strengths: Key advantage of this approach to Dacia Duster is that this allows the
company to charge high cost beside those organisation who follow differentiation
strategy.
 Drawbacks: Main weakness of this procedure is limited available demand within a
certain niche that can cause issues.
This can be evaluated and suggested that Dacia Duster organisation need to enforce with
differentiate strategy or policy so it can be set for completely different from image among other
competitors exist in Brazil. It will help them in gaining attention of large number of customers so
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they can gain advantages for surviving at the market place that can launch new product for their
desired buyers. Hence, the organisation is opting differentiation strategy that can help them in
emerging in market according to the requirement of company and demands of consumer. This
can assist Dacia Duster in framing, managing, structuring and maintaining numerous products
and services for Brazil accordingly.
CONCLUSION
It can be affirm from the above discussed report that Marketing strategy refers to forward
looking and long term approach to the approach with fundamental aim to attain sustainable
competitive benefit. PESTLE Analyse is an effective tool that used through marketers in order to
measure and also monitor external environment components that develop negative affect on
business. In order to face high competition at market place, there is a requirement to determine
main threats as well as opportunities. Market entry strategies is a planned strategy of delivering
products at a new targeted market in a profitable manner. There are various ways for a firm
through which it can enter into a new market. It includes licensing, direct exporting, franchising,
partnering, Piggy-banking and more. Porters generic strategies refer that source where an
organisation survive in the large competitive market place along with effective scope of market.
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Lorenzo-Romero, C. and Constantinides, E., 2013. Social Media as Marketing Strategy: All
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