Strategic Marketing: PESTEL Analysis, Market Entry Modes, Segmentation and Targeting

This report explores strategic marketing through PESTEL analysis, market entry modes, and segmentation and targeting. It discusses the expansion of Rowlinson Knitwear in Australia and the opportunities and threats it faces. The report also covers Porter's generic strategy for achieving competitive advantage.

Strategic Marketing

EXECUTIVE SUMMARY
Marketing is understood as the process of buying and selling of goods or services by
understanding needs and wants of customers. In other words, it is the process of planning and
controlling the activities as well as a system of interacting activities designed to promote and
distribute through communication strategy. This boost the sale and profitability of business
enterprise within the market. This report comprises of PESTEL analysis which aids micro
environmentalist to scan internal and external factors by determining the availability of
resources and also segmentation, targeting and positioning is analysed to identify potential
users and market demand which provide an opportunity to firm to determine target market.
Moreover, this report also includes Porter’s generic strategy which provide a framework to
achieve competitive position in the market.

Table of content
Contents
EXECUTIVE SUMMARY.............................................................................................................2
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................1
PESTLE analysis.........................................................................................................................1
Several market entry modes.........................................................................................................4
Segmentation and targeting the market.......................................................................................6
Porter’s Generic strategy.............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic marketing is a broader term that aims to meet the needs and wants of customers
which is done through planning and its execution the conception to achieve individual and
organisational objectives (Agic and et.al., 2016). In other words, the marketer aims to deliver
best and excellent services to their clients as it ensures maximum customer satisfaction. This
report is based on Rowlinson Knitwear which is a renowned brand in UK which deal with
variety of items such as corporate wear, uniforms and ethnic wear. The respective firm is
planning to expand its operations in Australia as this boost the sales and provide the maximum
exposure across the globe. The firm aims to provide excellent products at a reasonable cost so as
to gain maximum customer satisfaction across the globe. This report comprises of PESTEL
analysis that monitor several macro environment factors that aids in taking an appropriate
decision of a firm. Also, several modes of market entry such as foreign direct investment, joint
venture, merger and acquisition and so on that assist firm in gaining maximum exposure and
provide diversification and modernisation in corporations. Porter’s generic strategy is also
included in this report so as to achieve significant and rivalry edge.
PESTLE analysis
This framework aids the macro environmentalist to scan external aspect of a business
which assist the firm to take an appropriate decision by determining the availability of resources
(Andaleeb, 2016). In other words, this analysis consists of several element such as political,
economic, technological, legal and many more which has a great impact on a business enterprise
as it identifies several threats and opportunities of each so as to gain competitive advancement
across the globe. Rowlinson Knitwear is currently operating in United Kingdom and is planning
to expand its operations in Australia so as to gain maximum exposure around the globe. The
respective firm would plan to expand its operation in Australia is it is regarded as one of the
developed countries that provide maximum exposure to the company. The PESTLE analysis is
conducted due to the reason that it related to various external factors that are not controlled by
the firm and help the firm to make best decisions so as to achieve the business objectives in a
respective time period. Globalisation is another reason for making the business at global level as
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it provide an opportunity to Rowlinson Knitwear to expand its operation in Australia. With
reference to Rowlinson Knitwear, this analysis is presented as below:
Political Factor: this aspect relates to several elements such as corruption, political
stability, foreign trade restrictions and many more. The political situation in Australia is stable
that provide a high degree of efficiency and certainty to business (Bayraktar and et.al., 2017).
Also, this provide a great environment to corporations to grow their business to next level with
sophisticated technology.
Opportunity: The stability of political condition provides greatest advantage to
Rowlinson Knitwear to implement same policies and procedures over a long time that provide a
great ease of convenience among the large group of individuals across the globe. Also, it helps
the management of firm to prepare long term planning and maintain consistency in business so
as to facilitate smooth operations that determine transparency and fairness in a business.
Threats: With such a great scope, the respective company is also facing a big threat as it
deals with only corporate and ethic wear as such with limited designs would generate limited
income and also affect the sales of company and thus decrease the profitability. In order to
combat threat, the company is planning to launch a new product such as casual wear which are
highly demanded in Australia so as to gain maximum exposure and thus improve the overall
productivity.
Economic Factor: This includes employment, level of competition, inflation, aggregate
demand and supply and many more. The economic rate in Australia is higher supported by
strong GDP and low level of inflation (Bees and Williams, 2017). One of the greater benefits is
that here unemployment rate is only 5% which boost an economic sector and also it provide an
easy exchange of currency that is regarded as most favourable aspect for business.
Opportunity: Foreign Direct Investment (FDI) provide an enormous opportunity to
Rowlinson Knitwear to grow at global level ad also it attracts source of revenue from different
countries that help to achieve competitive advancement. In addition to this, this provide the
respective firm to generate greater rate on investment on investment opportunities and thus
increase the profitability.
Threats: Increase in taxation policies possess a big threat for the company as it led to
increase in prices of products and decrease the profit margin of corporations.
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Social factor: This aspect provides interlinkage of business to society such as emerging
lifestyles, safety emphasises, diet consciousness and many more. The population in Australia are
diverse in nature and are highly standardised and put more emphasise on quality rather than
prices. Also, the majority of them are highly educated that increase the standard of living and
thus improve the quality of life. They are always fascinated for new products which boos the
source of revenue and also majority of population are working class that provide an opportunity
to raise the level of income and non-manual workers is regarded as the fastest growing sector in
the country,
Opportunity: With such diverse in culture and ideologies, this provide a greatest
opportunity to business like Rowlinson Knitwear know the taste and preference of customers and
put greater emphasise on quality specifications so as to achieve maximum satisfaction. In
addition to this, this generate greater sales as it develops multiple revenue streams from different
sources which develop strong brand image and also it deals on export which provide maximum
exposure around the globe.
Threats: One of the biggest threats that is being faced by company is that there are giant
number of competitors which decrease the overall cost of operation and decline the profitability.
Also, change in customer needs allow a respective firm to change its product quickly which
require lot of investment. To combat this threat, the respective could make advance planning and
facilitate proper coordination and provide efficient training to their staff so as to increase their
knowledge base and inculcate confidence in them so that they could resist the changes easily.
Technological factor: this is one of the crucial elements as it comprises of level of
automation, technical awareness and research and development (Zghidi and Zaiem, 2017).
Australia is considered as one of the technological advanced country in the world. The
innovation and latest technological trends provide greater prospect for corporation to accelerates
sales and profitability.
Opportunity: Rowlinson Knitwear focus on new and innovative technology which not
only simplify the overall working procedure but also provide an opportunity to improve scale of
operations and allow fast conduct of activities in an effective and efficient manner.
Threats: The obsolescence of new and innovative technology in an era of business
environment possess a big threat for a company like Rowlinson Knitwear as large sum of
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investment is incurred on it. So, the firm emphasise on optimum utilisation of resources which
save both time and cost.
Legal factor: This aspect comprises of all legislations and laws pertaining in a country
that affect the business operations and it includes anti-trust laws, copyright and patent (Corban
and et.al., 2019). Every country has its own legal structure and different rules and regulations
which affect the decision making of firm. The law and legislations ensure greater transparency
and ensure free flow of activities in corporations.
Opportunity: Rowlinson Knitwear abide all rules and procedures followed in country
which ensure greater efficiency and transparency and facilitate smooth operation of business. It
implements health and safety law and other laws to provide better environment to their staff
which ensure greater satisfaction.
Threats: Any changes in law and legislation would affect the overall performance of
business operation and thus decline their growth as well as lead to delay in decision making. So,
the manager of company ensures proper code of conduct which ensure transparency and depict
fairness in overall activities of business.
Environmental factor: These elements includes climate, weather and pressure from
NGOs as well as several environmental policies (Tomczak, Reinecke and Kuss,). Due to global
warming, there are several changes in climate and weather which have direct impact on business
operations. It creates negative consequences and reduce the productivity of business enterprises.
Opportunity: By looking towards an awareness towards environment, the manager of
Rowlinson Knitwear uses renewable source of energy and provide excellent offerings so as to
achieve sustainable development in a long run. Also, the concerned firm also focus on recycling
and reusing strategy which develop positive reputation across the globe.
Threats: Excessive change in climate and deforestation create a negative impact on
business operations which possess a threat for the company. To stop this threat, the manager
emphasises on planting more trees and should discourage the use of plastic which in turn
improve the overall performance and productivity.
SWOT analysis:
Strength Weakness
One of the greatest strengths is that the
Rowlinson Knitwear is planning to expand its
The respective firm provides its product at a
reasonable price that reduces the profit margin
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operation in Australia that increase the sales
and profitability in the marketplace and also
the stable political condition allow the firm to
maintain same policies and procedures across
the globe.
and also the obsolescence of technology is
another weakness that is faced by firm.
Opportunities Threats
The expansion of Rowlinson Knitwear in
Australia provides expertise labour and new
and advanced technology which gain vast
expansion across the globe.
There are several competitors which posses a
big threat for the firm. In addition to this, this
lead to price wars which in turn minimise the
profit margins.
Several market entry modes
There are several market entry modes such as joint venture, merger and acquisition,
foreign direct investment that provide vast growth opportunities to a firm to grow at international
level and provide multiple streams of revenue to a business and also it increases the profitability
of business enterprises. Therefore, it adds value to a corporation and take business to next level
which ensure maximum customer satisfaction. In the context of Rowlinson Knitwear, various
market entry modes are presented below:
Joint venture: this ensure combination of two or more enterprises for the
accomplishment of common purpose (de Andres and et.al., 2017). It provides an opportunity for
business to share profit and loss, resources and knowledge and also generate new and innovative
ideas due to collaboration which provide growth and ensure maximum exposure in different
parts of the country. With reference to Rowlinson Knitwear, the advantage and disadvantage is
given below:
Advantage: Joint venture provides new insights to gain knowledge and also provide
specialized personnel and innovative technology which provide maximum benefit and also likely
to ensure greater success in future. This also built strong network and create distribution of
network which promote team spirit and also assist a firm in eradicating the risk.
Disadvantage: There is possibility of clashes in culture and sometime it creates
imbalance of investment which create a negative impact on business.
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Foreign Direct Investment (FDI): In today’s modern era, foreign direct investment is
considered as a major source of attraction of investment opportunities from different nations
(Thrassou, Vrontis, and Bresciani, 2018). In addition to this, it provides growth opportunities
and ensure maximum exposure in an around the world. In the context of Rowlinson Knitwear,
the merits and demerits of same is presented as follows:
Advantage: One of the greatest benefits is that it creates job opportunities and facilitate
easy international trade that stimulate overall economic development. It also ensures proper
development of human resources which is regarded as the most precious asset in the country.
Hence, it increases the overall performance of business operations and also ensure greater
contribution towards national income as it accelerates the productivity and develop positive
image at a global level.
Disadvantage: One of the major drawbacks is that there are lot of political interference
which create several hindrances and sudden fluctuations in foreign exchange rates would
increase the overall cost of operation which in turn reduce the profitability of business
enterprises. Plus, history of colonialism also affects the operations of business in a negative
manner that reduces overall growth prospects.
Merger and Acquisition: These are regarded as one of the important terms and provide
several market entry modes so as to gain maximum exposure in different parts of the country
(Hales and Mclarney, 2017). This allow greater expansion, diversification and modernisation of
a firm and also provide enormous growth opportunities to business to grow at global level.
Merger is understood as the combination of two or more companies into new segments so as to
capture large market share. Acquisition is defined as the process in which one entity is entitled to
acquire another entity that provide assistance in gaining maximum exposure. In the context of
Rowlinson Knitwear, the pros and cons are presented as follows:
Advantage: the benefit of merger and acquisition is that it allows an economy of scale
and provide greater access to capital which ensure diversification and aids in eliminating
competition as well as duplication of resources. Furthermore, it creates synergies and help to take
fast decisions of business in an efficient manner.
Disadvantage: When the situation of merger and acquisition takes place, the firm lead to
eliminate those resources and assets which does not generate profits which result in loss of job
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opportunities. Also, less degree of control due to merger create dissatisfaction among the staff
and thus reduce their morale and motivation.
Rowlinson Knitwear would consider foreign direct investment as a better choice for
entering into market as it creates multiple opportunities of generating different source of revenue
and ensure future growth. Also, it promotes new and advanced technology which is very
essential and help business enterprises to conduct fast operations in a fair and transparent
manner. Therefore, this has played an important role in an economy has help firm to facilitate
changes in their enterprises.
Segmentation and targeting the market
Segmentation and targeting are the most crucial term for marketing as it involve
significant potion which ensure maximum customer satisfaction across the globe. With reference
to Rowlinson Knitwear, these are detailed below:
Segmentation: It is understood as the process of dividing the market on the basis of several
groups who share common characteristics and then marketers prepare an appropriate strategy by
identifying the demand and supply of customers (Hollensen, 2019). In other words, it consists of
taking into consideration of heterogenous market by dividing the product into several segments
and discover the priorities of customers through marker research as it ensures maximum
customer satisfaction. It emphasises to develop several market programmes so as to attract giant
group of individuals and develop profiles of them. Segmentation could be done on the bases of
several ways which are prescribed below:
 Geographical segmentation: This emphasise on dividing the customers on the basis of
countries, cities, regions and so on as it is helpful to identify product needs in particular
area or town.
 Demographic segmentation: It is the study of population on the basis of several attributes
such as age, occupation, gender and family life cycle. It provides a basis of distinguishing
customer groups through demographical variables such as marital status, social class,
religion, educational level and many more.
 Psychographic segmentation: This provide information about customer’s attributes,
values, motivation, lifestyle etc. This parameter of segmentation is used by marketers to
sell merchandise in the well-established market.
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Targeting: This is very essential element of marketing as it helps in identifying group of
customers and also look present information so as to make assumptions in future (Schlegelmilch,
2016). There are several options available to marketers and also it defines a group of individuals
on the basis of their unique features and put emphasises to reach a potential market which
increase the sales and profitability of a company. The marketing manager of Rowlinson
Knitwear connect with large group of individuals and know their taste and preferences so it uses
various slogans and advertisement campaigns in order to generate maximum satisfaction of
clients. The main motive of targeting is to develop brand loyalty by use of several marketing
tactics which ensure greater success and boost the sales and productivity. Customers have
different buying behaviour so marketers determine market demand and provide them in
accordance to their requirements. A proper research is conducted in order to determine the needs
and requirements of target market. There are three types of targeting strategy which are as
follows:
Undifferentiated marketing: This emphasise on particular needs of buyers and product is
designed in such a manner that it is communicated to large number of users around the globe.
Differentiated marketing: This is also described as selective marketing in which the focus of
a firm is on particular group of customers which then become loyal customers.
Concentrated marketing: in this, the firm focus on particular segment or group of customers
or niche market so that it could generate high rate of return.
Positioning: Positioning is defined as the process in which the image of product or services
is provided in such a manner that customers perceives its value distinctively (Josephson and
et.al., 2016). The goal of positioning is to gain a competitive edge over the market as marketer
use several tactics to develop a lasting impression regarding product among the large group of
individuals across the globe. Positioning emphasise on creating a distinct image in the eyes of
customer and provide a competitive edge to a product or service and also it provides guidelines
for the development of marketing mix. There are several ways of doing positioning which is
presented below:
 Positioning by attributes: This emphasise on several attributes of offering that are
presented to customers.
 Positioning according to the class of users: This focus on particular class of products
such as upper class, medium class and so on which ensure greater customer satisfaction.
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 Positioning by comparison: In this, marketer uses this factor to compare several similar
brands that create strong brand position across the globe.
Porter’s Generic strategy
This strategy emphasises on gaining competitive edge by determining the attractiveness
and profitability of business enterprise (Sahaf, 2019). In the context of Rowlinson Knitwear, the
following strategies are presented as follows:
Figure 1: Porter’s generic strategy
Cost leadership: This strategy emphasises on selling merchandise at a low cost strategy
which in turn increased the market share across the globe (Kotler, Makens and Baloglu, 2017).
The firm focus on new and innovative technology and access to capital that generate greater
investment opportunities and develop positive reputation at a global level. The purpose is to
decrease the cost of production so as to generate greater sales.
Differentiation: this strategy focuses on unique and differentiated products so as to gain
maximum exposure in different parts of the country. In addition to this, good research and
development and excellent marketing strategy help firm to ensure maximum customer
satisfaction as they are more preferred towards the quality than on price. This boost the sales and
increase the profit margin of corporations.
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Focus: This strategy is the combination of both differentiation and cost leadership in a
dynamic environment. The marketers provide unique offerings at low cost which create brand
loyalty and it also adds value to their customers in different parts of the country (Kumar, Sharma
and Gupta, 2017). The firm use this strategy due to the reason that it emphasises on both quality
and prices and adapt changes accordingly so as to gain maximum satisfaction of buyers from
different locations.
It has been determined that Rowlinson Knitwear would consider focus as an appropriate
strategy as it ensures quality specification and provide offerings at a reasonable price which build
customer loyalty over a long period of time. Also, the concerned firm decrease the cost of
production so as to generate more sales and thus increase the profitability in the market and also
it achieves competitive edge at a global level.
Recommendations
It has been recommended that the manager of Rowlinson Knitwear should make proper
planning and organise the work so as to avoid duplication of activities. Also, the manager should
emphasise more on using new and advanced technology and manpower in order to produce a
desired level of output. This bring coordination and facilitate smooth operations of a business in
an effective and efficient manner. Also, providing an advanced training among the subordinates
and preparing them for challenging positions so that they could develop confidence and work
with greater zeal.
CONCLUSION
From the above information, it can be summarised that marketing play an important role in
today’s era as it aims to satisfy the needs and wants of customers. Also, PESTEL analysis is
conducted to monitor the activities by ascertaining both internal and external factors and assess
the availability of resources. Segmenting and targeting help marketers to identify needs and
preferences of customers and also Porter generic strategy is conducted to gain a significant and
competitive position at a global level. This assist the firm to create product differentiation and
provide a rivalry advantage at an international level which in turn provides more growth and
maximise the revenue over a marketplace.
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