Strategic Marketing - OYO

STRATEGIC
MARKETING

EXECUTIVE SUMMARY
This report explains about strategic marketing and its contribution improving the
performance and quality of services provided by the company. It is considered as the way
through which organisation normally differentiate themselves from their respective competitors.
This can be done effectively by providing value added services to its customers. Current report is
based on Oyo group, which is offering hospitality services that is hotels in India and its periphery
countries. This company is now expanding its business in Durban, South Africa with new
restaurants.
The analysis of macro environment is included under which all the factors like political,
economic, social technological, legal and environment are mentioned along with opportunities
and threats. This analysis help company to determine various opportunities that support them in
expanding business in new country and also keep them safe from threats that may affect their
operations.
Along with this, different modes of market entry such as direct investment, strategic
alliance, joint ventures are explained. Thus, according to the company joint ventures is best
suitable mode of market entry as it will help the organization in expanding its business in new
country.
It further discusses about market segmentation, which will help the company in finding
out its potential customers. Here, customers for the company are targeted on income basis
(demographic).
Lastly, with the help of porter's generic strategy OYO group can focus on different
elements while expanding its business like cost leadership strategy , cost differentiation strategy,
cost focus and differentiation focus. In this assignment, Oyo group have chosen cost leadership
strategy in which they planned to provide their services at nominal price with high quality.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................5
TASK...............................................................................................................................................5
Overview of the company......................................................................................................5
Macro environmental analysis................................................................................................5
Modes of market entry............................................................................................................8
Concept of market segmentation, targeting..........................................................................10
Porter's generic strategy........................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic marketing is a way that assists an organisation to effectively differentiate itself
from major competitors in similar industry. These kind of activities assist in providing
consistently better services to customers as compared to other rivalries (What is Strategic
Marketing, 2018). The strategy can be developed for market expansion, product development
and customer relationship planning that aid in maximising business profit opportunities. This
report is based on OYO group, which is offering services in hospitality industry i.e. hotels. Now
this company wants to expand their business/market in South Africa. For the implementation of
these ideas, organisation needs to analyse market condition of the particular country as well as
requirement of those services. Therefore, this report is going to cover macro environmental
factors that can affect business operations. For further, it considers mode of market entry that
will determine best possible option for business expansion. This report also includes description
about market segmentation and targeted market for expansion. Further discussion about new
porter's generic strategies is evaluated which helps firm in its future success.
TASK
Overview of the company
OYO group is a hospitality company which was founded in the year of 2013 by Ritesh
agarwal. Main objectives of this organisation is to provide budgeted hotels for family and
individual's who wants better services on an average cost. Through average cost strategy, OYO
group has grown with over estimated 8500 hotels in around 230 cities in numerous countries
(Oyo, 2018). Now the organisation is planning to expand their business operations. For this, Oyo
group is expanding its business by opening hotel along with the restaurant services in South
Africa on the ground of Durban. For this expansion, firm needs to make a strategic planning in
order to establish their business in Durban, South Africa.
Macro environmental analysis
PESTLE analysis is a part of macro environment which is helpful in analysing market on
the basis of few factors that have influence over business (Zalengera, 2014). In context to Oyo
group, the company is expanding its business by opening Oyo hotels with value added service
that is restaurant facility in Durban, South Africa. With the help of PESTLE analysis, Oyo group
can evaluate relevant understanding over their new business in South Africa. Therefore, PESTLE