Strategic Marketing for Ashanti Marketing Solutions: Entry into the US Market with Web Designing Service

The report discusses the strategic marketing plan for Ashanti Marketing Solutions to enter the US market with their new web designing service. It includes the recommended product and country, PESTLE analysis, market segmentation, and Porter's generic strategy. The report concludes that a strategic alliance is the best mode of entry for AMS to enter the US market.

STRATEGIC MARKETING

EXECUTIVE SUMMARTY
The report has been summarized that for Ashanti Marketing solution company wen design
service and United state country is best to enter. Further, the report has been also concluded that
high interest rate, competition level and customer preferences are threat for AMS using the
PESTLE analysis. They need to effectively plan their strategy before entering. In addition, the
report has been concluded the strategic alliance is one of the best modes of entry for AMS
company to enter US market. Further, the report has also summarized the target and potential
customer of AMS such as small, medium and large business client.
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Table of Contents
EXECUTIVE SUMMARTY...........................................................................................................1
Introduction......................................................................................................................................3
Recommended product or service and country to enter to Ashanti Marketing Solutions...........3
Macro-environment analysis of country using PESTLE model..................................................4
Three mode of market entry and recommendation on best mode to AMS..................................5
Market Segmentation...................................................................................................................7
Porters generic strategy................................................................................................................8
conclusion......................................................................................................................................10
REFERENCES..............................................................................................................................11
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Introduction
Strategic marketing refers to the plans of action which the company used in order to accomplish
the goal of the organisation in effective as well as efficient manner. with the assistance of that
organisation is able to develop and maintain the competitive advantages in the domestic as well
as international marketplace. the present report is based Ashanti Marketing solution company
which is based in the uk which is willing to enter in the new marketplace. the report will examine
the external environment of the organisation in order to acquire in the market. along with that
the report will shade a light on marketing entry option, market segmentation, porters generic
strategy in context of the organisation.
Recommended product or service and country to enter to Ashanti Marketing Solutions
Ashanti Marketing solution is an UK based marketing firm that provides various
promotional, advertisement and marketing services to its local customer with the aim of gaining
competitive advantage. Now, the company wants to enter new country with its new product in
order to gain large international customer base, expanding business, market share as well as the
profitability of company (Thomas and et.al., 2021). The following new service and country is
recommended to AMS company:
New Product or Service: Web designing service is a new service that is recommended to
AMS company to launch in the new country. Under this new service, it is recommended to
company that they should include development of websites, branding, content, visuals and search
engine optimization. It is because the demand of web designing service in the market in high and
every business whether small or large need website to manage its business. Hence, with this new
service, the company able to enhance its profitability.
New Country: The country recommended to AMS company to enter is United State with
its new web-designing service. It is because economy of US is highly developed and is third
largest country by nominal GDP (Thomas and et.al., 2021). The business customer of US highly
used the websites and web designing services offer by different companies. Due to the low
competitor’s firm that provide the same service in US market, entering the US market for
Ashanti marketing solution with its unique and best service helps the company to enhance their
customer base as well as the market share. Hence, it is recommended to AMS company that they
should enter US market.
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Macro-environment analysis of country using PESTLE model
Understanding the new market such as United States is very important for AMS company
because of the various macro-environmental changes. The PESTLE model can be used to
analyse the macro-environment of US country and identify the opportunity and threat available
to AMS company. PESTLE analysis are as follows:
Political Factor: This is the first factor of analysis which indicate the political
background of country and how the government tends to influence the business environment and
economy (Christodoulou and Cullinane, 2019). For example, the fair political system of US and
high foreign direct investment, it is an opportunity for AMS to enter this market and also gain
highly competitive advantage. However, high rule and regulations government intervention has
been imposed by US government to restrict entry of foreign companies.
Economic Factor: This is second factor of this analysis which state the interest rates,
inflation rates, foreign exchange and economic growth patter of country. For example, the
economic of US is stable and faster growing with strong GDP is an opportunity for company
market share and gaining high profit with high demand (Thomas and et.al., 2021). However, the
economic recession causes rise in the inflation rate which ultimately became threat for AMS to
change their price of services.
Socio-culture Factor: The social factor of analysis indicates the cultural trend,
demographic, attitude and behaviour of society towards the business. For example, high
population, advance people and high customer preferences towards technology is a threat for
AMS. It is because people of US always purchase the products of company through its website
or online shopping channels. However, it is important for the company to understand the demand
of web designing service in US market otherwise it is not suitable for AMS to enter US market.
Technological Factor: The technological factor includes the innovation and creativity.
The businesses or firm of US uses advance technology in order to operate its business at both
online as well as offline mode. Hence, it is an opportunity for AMS while on the other hand it is
costly for company to invest in technology (Christodoulou and Cullinane, 2019). This is a threat
for company.
Legal Factor: The legal or policies of country affects the business to large extent such as
consumer law, safety standards, labour law etc. In US, the government has imposed strict
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consumer, labour and safety law for the business which is an both opportunity and threat for
company based on their action.
Environmental Factor: This factor indicates the surrounding environment of country
where business operates such as climate, whether change pollution etc. US is third largest
country in world and its geographic diversity it is an opportunity for AMS company to enter this
market. It is important for AMS company that they should research about the level of pollution
of US along with its eco-friendly nature before entering market. Otherwise entering this market
will become threat for company. Low natural disaster level of US is also an opportunity for AMS
to enter US market with its new product (Capobianco and et.al., 2021).
Threat the company will face and solution they need to adopt:
The various threat has been identified from the above PESTLE analysis that will be face by
Ashanti marketing solution is economic recession, high price of service due to high inflation rate,
compliance of legal rules and regulations, change customer preference etc. In order to avoid this
threat, AMS company first need to prepare an effective plan before entering the market.
Government intervention is a threat for AMS which they can avoid by following the all the
governmental rules and make strong brand image of company in the eye of US government.
They need to understand the customer taste and preference as well as the competitor’s level that
are providing the same service to business customers. In order to deal with this threat, the
company should manage its cash flow in such a way that they need not to borrow the money
from US banks. Hence, it is important for AMS to introduce its web designing service at low
cost at initial stage to attract the customer. Further, spreading the features and information about
the company new service through social media site is also one of the solutions to avoid this
threat.
Three mode of market entry and recommendation on best mode to AMS
The three main mode of market entry that have to be analyse and understand by Ashanti
marketing solution company along with its advantage and disadvantage are as follows:
Strategic Alliance: This is a partnership between two independent companies to undertake
a mutually single business with the aim of serving large customer base. Under this mode,
Ashanti marketing solution need to align with the local web designing service provide of US in
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order to enter the US market (Chi and et.al., 2019). This is somehow similar to joint venture but
there is no legal agreement.
Advantage:
 It helps the company such as AMS to concentrate on activities which match their
capabilities. This is also beneficial for company to use local resources of US without any
difficulty.
 This helps the company to facilitate global market and gain high market share in new
market.
Disadvantage:
 It is costly for company and it became risky at the time when two companies are not
financially equal.
Merger and Acquisition: This is another significant mode of entry where AMS need to either
merge with the existing or local marketing solution of US that provide web design service. It also
involves the acquisition or purchase of local business of US in order to enter the new market
with its new web design service (Blackburne and Buckley, 2019).
Advantage:
 This helps the company to access and attract the talented employee towards their own
AMS business.
 It helps AMS company to reduce the competition level of that provides the web design
service to US customer or business clients.
Disadvantage:
 The biggest disadvantage of this mode of entry is conflict between the two different
culture people as well as the financial distress due to one of the expensive modes.
Foreign Direct Investment: Another main mode of entry available to Ashanti Marketing
Solution is foreign direct investment. In this mode, AMS company will directly invest in the
other country business with its new product. This is not that much beneficial for AMS to enter
US market with its new product.
Advantage:
 It provides local economic benefit to AMS in multiple location.
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 It will improve the human resources of AMS.
Disadvantage:
 It is one of the more expensive and riskier as compared to strategic alliance and M&A
(Elia Larsen and Piscitello, 2019).
Recommendation on suitable mode of entry:
On the basis of above analysis, it is recommended to Ashanti marketing solution company
that they should go for strategic alliance as a mode of entry. It is because it is less expensive as
compared to other two options. Further, in term of reducing cost and level of risk in entering the
new market such as US, the strategic alliance is one of the best modes of entry. The strategic
alliance can be done by AMS in the form of franchising, licensing as well as subcontracting with
the local or exiting company (Chi and et.al., 2019). With the help of this mode, AMS company
can easily enter US market as well as enhance its market shares. It will also help them to use the
local resources of US for their business operation without any difficulty.
Market Segmentation
Market segmentation is one of the marketing terms that refers to aggregating the potential
customer of business into specific group or segments. This helps the company to target different
segmentation of customers that meets AMS web designing services.
Targeting is one of the marketing strategies that is also known as multisegmented marketing
that helps the Ashanti marketing solution business to specify a customer for their web designing
service. This strategy is more effective as compared to mass marketing to identify the potential
customer of business in new market for their new products and services (Camilleri, 2018).
The market segment is of four categories:
Demographic: This segment involves the customer based on their income, gender as well
as customer preferences. Under this segment, AMS company able to look their customer income
and preferences in order to target them.
Geographic: This is also market segment which divide customer in different area and
religion such as local, rural and national. Under this segment, AMS can able to target customer
of specific area of region (Gomez and et.al., 2019).
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Behavioural: This state the dividing the customer based on the offers, promotions and
prices provided by company to them. Under this, AMS need to offer different offers, low price
web designing service to target this customer segment.
Physiographic: This is a segment of market where customers are divided based on their
attitude, opinion, interest and perception. Under this, AMS need to first understand the attitude of
its customer in order to target them and providing them their new services.
Potential Customer of Ashanti Marketing Solutions:
On the basis of above market segment analysis, it has been recommended that they
should adopt the physiographic approach to divide US customer. The target or potential customer
of AMS is business such as small business, medium business as well as large business that want
to develop a unique and highly attractive website and branding of its company. The company is
recommended to target the customer such as business that have interest and high perception in
web designing services because this is one of the best ways to understand the customer needs as
per their feedback (Kalam, 2020). This will help AMS to reach its targeted customer in US.
Further, AMS company will target and position its customer based on its 4Ps marketing mix
which are as follows:
Product: The product of AMS is new web design service which they are going to launch at US
market.
Price: Cost leadership strategy will be used by AMS to charge reasonable price for its service
from its US customer.
Place: The company will provide its service at online place. It means the web design service of
Ashanti marketing solution will be provided to businesses of US at online mode.
Promotion: Lastly, the promotional strategy for AMS is social media marketing. It means the
company will promote its new service features and benefits to its target customer of US on social
media platform such as Instagram, Facebook, Twitter etc in order to get their instant feedback as
well (Cortez, Clarke and Freytag, 2021).
Porters generic strategy
Porters generic model refers to the plans of action that organisation used in order to identify the
right direction of the welfare of the organisation. according to the founder of the model deliver
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assistances in obtaining competitive advantages in the marketplace and defeat the competition in
effective as well as efficient manner. this model consist of four essential element which need to
consider for accomplish the aim and objective oof the organisation in an preproperate manner.
each method or plans of action consist of different criteria of contributing in the success of the
business enterprise. The organisation considered the elements as per the strength of the
organisation in order to satisfy the large numbers of the customers.
Cost leadership: the organisation utilized this plans of action for gaining various advantages
from the market. In context to that the organisation set lower prices of the product and services
for targeting and attracting the the customer toward the production of the organisation. Due to
that the company is able to acquire higher values from domestic as well as international
marketplace. It deliver assistance in satisfying the customers as the people are willing to obtain
the product and services at the lower price. In context to that the company can provide different
bonuses, rewards, offers and discount to the people in order to increase the value of the company
in effective as well as efficient manner.
Differentiation: with the assistance of this plans of action the organisation can increase the
demand by offering the unique commodity and services to the customer as per the taste and
preferences of the individual person. It attract large numbers of the customers as the company
make sure that the product of the company is consist of high standard and quality of the products.
For this strategy the organisation keep focusing on the creativity and innovation in the
productivity of the company. As the marketing trends are changing rapidly it is important for the
organisation to bring innovation in the product as it create impression on the minds of people.
basically it develop the interest of the investor in the organisation as it is unique in the
marketplace.
Cost focus: this element of model indicate that the association focused on selected or targeted
marketplace. In this element the organisation aim to obtain the competitive advantages and create
values in the marketplace. the company target the niche market where the rate of competition is
low and the cost of the organisations product and services will remain low. Due to that the
organisation is able to develop the effective business relationship with the potential customer for
the long term success. The product and services will be more cheaper as compare to the
competitors. It deliver assistance in improving the costing of the product.
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Differentiation focus: in this section the organisation aim to deliver higher values to the
customer by delivering the loyalty programme to the buyers that attract the customer toward the
brand value in order to increase the value of the company. along with that the organisation make
sure that the product are valuable. Under this element the organisation focus on special
requirement of the customers and fulfil their needs and wants effectively. along with that the the
company make sure that the product of the company has unique identity in the marketplace for
the further success.
The Ashanti marketing solution company has the opportunity to obtain value from domestic as
well as international marketplace effectively. in context to that the company will utilized cost
leadership strategy for entering in the new marketplace along with the differentiation. It means
the company will offer the product and services at lower price which is unique in the
marketplace and did not utilized by the competitors. It will deliver support in obtain values and
rapid success from the marketplace. along with that the company has advantage of boosting the
performance of the company and profit aspects.
conclusion
from the above report it will be concluded that that the strategic marketing play huge role in
improving the value of the company in the different marketplace. The Ashanti marketing
solution company is willing to offer new product in the marketplace with the different plans of
action. in order to that the company has potential to deal with the challenges. from the
analysation the company is willing to deliver the value in US market which is possible with the
adequate plans of action, in order to that the company is obtaining two element of porters
generic model which is cost leadership and differentiation for the further success of the
eEnterprise. Furthermore the report highlighted the internal and external environment of the
origination for preparing to deal with the forthcoming challenges.
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REFERENCES
Books and journals
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Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability. 11(21). p.6046.
Capobianco, N. and et.al., 2021. Toward a Sustainable Decommissioning of Offshore Platforms
in the Oil and Gas Industry: A PESTLE Analysis. Sustainability. 13(11). p.6266.
Chi, T. and et.al., 2019. Real options theory in international business. Journal of International
Business Studies. 50(4). pp.525-553.
Blackburne, G. D. and Buckley, P. J., 2019. The international business incubator as a foreign
market entry mode. Long Range Planning. 52(1). pp.32-50.
Elia, S., Larsen, M. M. and Piscitello, L., 2019. Entry mode deviation: A behavioral approach to
internalization theory. Journal of International Business Studies. 50(8). pp.1359-1371.
Camilleri, M. A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Gomez, A. and et.al., 2019. Reaching and targeting more effectively: the application of market
segmentation to improve HIV prevention programmes. Journal of the international AIDS
society. 22(Suppl Suppl 4).
Kalam, K. K., 2020. Market Segmentation, Targeting and Positioning Strategy Adaptation for
the Global Business of Vodafone Telecommunication Company. International Journal of
Research and Innovation in Social Science (IJRISS). 4(6). pp.427-30.
Cortez, R. M., Clarke, A. H. and Freytag, P. V., 2021. B2B market segmentation: A systematic
review and research agenda. Journal of Business Research. 126. pp.415-428.
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