Strategic Marketing

Strategic Marketing

EXECUTIVE SUMMARY
The following report is conducted upon OYO, a well renowned hospitality organisation,
intending to expand its services within South Africa. While facilitating market expansion, the
company has also decided to start restaurant services along with the provision of accommodation
to customers. The report is divided into 4 main sections, namely, macro environmental analysis,
market entry modes, segmentation & targeting and generic strategies. The macro environmental
analysis reveals that governmental incentives provided to foreign companies and strong
economic conditions of South Africa would provide support to OYO in facilitation of market
expansion within new country. However, there are certain negative aspects also associated with
the macro environment that pose threat to the operations of entity into new market. Out of the
different modes of market entry available to the firm, it has been analysed that joint venture
serves to be the most effective. Further, it is seen that segmentation of new market is being done
by the entity on the basis of demographical aspect. At last, it is seen that the firm is willing to
adopt cost leadership strategy while facilitating expansion into South Africa. This strategy is
being utilised with a view to reduce the overall cost of operations for OYO in new country and
thereby use the surplus funds for effective areas of business operations.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
Overview of the company......................................................................................................1
Macro environmental analysis................................................................................................2
Modes of market entry............................................................................................................3
Concept of market segmentation, targeting............................................................................5
Porter's generic strategy..........................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic marketing can be referred to as the manner in which an enterprise creates a
distinct image of itself in the mindset of customers. For this purpose, the organisation makes use
of effective marketing practices and other associated tactics. This provides assistance to the
entity in appealing to the audience effectually. This results in placing a positive influence upon
the behavioural patterns of consumers, thereby persuading them to make a purchase. With this,
the corporation is able to inflate its existing level of revenues as well as profits.
The present project constitutes comprehensibility of strategic marketing as applied by
OYO Group. The management of this organisation is considering expanding its services within
South Africa by incorporating a new restaurant in the premises of hotel. The following report
consists of macro environmental analysis with a view to gain knowledge of the threats and
opportunities present at selected market place. Further, it includes modes of market entry;
concept of market segmentation & targeting and porter's generic strategies applicable to the
company.
Overview of the company
OYO Group is recognised to be a hospitality organisation that was found during the year
2013. The primary motive of this firm is to stipulate the services of budget hotels for family,
corporates and individuals. The guests derive satisfaction from services provided by the entity as
these charge reasonable prices from them. By leveraging low pricing strategy, this renowned
hotel group has expanded its services within approximately 250 cities within countries such as
India, UAE, China, Nepal and many more such nations. Looking upon the success of hotels with
the passage of time, the management of the group has decided to introduce its services within
South Africa along with incorporation of a restaurant within the premises to attract a larger base
of audience. The location selected within SA to carry out expansion of business operations of the
entity is Durban. To execute this expansion in an effective manner as per the organisational
expectations, OYO Group needs to do strategic planning. This will aid the entity in deriving
favourable results from the expansion and thereby inflating the existing market value and
goodwill of the company at international scale.
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