Strategic Marketing Assignment - McLaren Automotive
Added on - Dec 2020
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Executive SummaryExpansion of business provides great benefit of exposing the business to a wideraudience. This often results in increasing sales and profit figures which ultimately provide highcompetitive edge to firm. France is the world's 7th largest economy with over 20,000 foreignbusinesses established in the country. The market of France provides ample number of businessopportunities that significantly contributes towards an organizational growth and development.Ashanti Marketing Solution is a consultancy company that is being hired by McLarenAutomotive to get suggestions and consult in order to expand its business in new market.Thegiven report laid stress on the expansion of McLaren business operation & activities in themarket of France. The company is expanding its existing product line by launching Hybrid Car,which is going to offered in new market. The main motive for developing this report is to exploitall possible solution or options to assess the viability of new venture by conductingPESTLEAnalysis, Modes of Market Entry, Market Segmentation & Porter's Generic Strategic.PESTLE Analysis is included in this report that helps company in identifyingopportunities and threats. Being a developed country, political stability becomes one of the keyreason for enlarging operation in France market.Different modes of market entry are included such as strategic alliance, franchise andmergers & acquisitions. Post evaluation of all the market entry modes, it has been identified thatstrategic alliance with Peugeot will be one of the safest approach for McLaren Automotive toventure into French market.Market segmentation is done in order to choose appropriate market for businessexpansion. The demographic segmentation is being considered which helped business inselection of niche market which will be offered upcoming product of the company.Porter's Generic Strategies are also defined in this report. Selection ofappropriatemarketing strategies will result in achieving higher market share & profitability ratio for thecompany as it will be convenient for this business to effectively communicate to its distinctmarket.
INTRODUCTIONStrategic Marketing is defined as the way a company differentiates itself effectively fromits rivals by capitalizing on its current and potential strengths so as to administer better value tocustomers than competitors. It is used by organisations in order to develop a plan to reach targetaudience and satisfy them while maximizing productivity and profitability ofthebusiness.Strategic Marketing concept examines coordinating a firm's competence with customer's wants(Proctor, 2014). In the present assignment, chosen organisation is McLaren Automotive which isa British auto-mobile manufacturer company of Surrey, United Kingdom. The firm is planning toexpand its business in market of France with advanced technology hybrid car named as'EcoSpeed'.France is a developed country and has seventh largest economy of world measuredin terms of GDP.The main reason behind selecting this particular country increasing demand ofelectric hybrid cars and favourable economic circumstances offered by the country.This reportincludes macro environmental analysis to determine possible threats and opportunities forcompany.As a senior marketing consultant of Ashanti Marketing Solutions, this report isprepared to provide suggestions to McLaren Automotive for expanding its business in newmarket.TASKPESTLE AnalysisIt refers as an analytical tool that is utilized by organisations in order to assess macroenvironment factors which may influence operations and activities of business. For McLarenAutomotive, it is very important to apply this framework as it will assist firm in determiningopportunities as well as threats which exist in marketplace. These can be ascertained by properanalysis of business surroundings of France(Hahn and Kühnen, 2013). Various factors thatinvolves in PESTLE Analysis are defined below:Political factors:Political factors includes various variables such as tax policies, trade restrictions,government stability and policies etc.1