Strategic Marketing and Business Expansion

The assignment explores the concept of strategic marketing and its application to business expansion. It covers various marketing models, such as Porter's generic model, and provides examples from real-world businesses. The report also includes references to relevant studies and books on strategic marketing.

STRATEGIC MARKETING

EXECUTIVE SUMMARY
Strategic management is all about designing an appropriate scheme for company success
or development by considering necessary facts or figures. Along with this it helps an enterprise
while expanding business by launching an innovative product in market. Therefore, it is essential
to focus on designing an effective strategy for acquiring maximum attention of clients. As a
consultant for Ashanti Marketing Solutions (AMS) Limited I must analyses the strategy
Samsung is used make profit with their new and innovative product i.e. 5G cell phones. This
report purely focusses on marketing strategy that the company is using to launch their product in
business market. Assessment pinned down some strategies that the company has used to increase
their potential in business market. Furthermore, in order to enhance the production of company
product and sales performance an organization is adopting some of the important strategies like
PESTEL, SWOT, Market Segment, Porter Generic Strategy that will help them in increasing
their revenue in UK market. These elements have covered all the key factors like costing,
budgeting, innovation, market segmentation, strategies etc. that are required for making
fundamental planning to achieve their desired goals and target.
Market entry mode is a crucial decision which every firm have to make at the time of
entering in new country. Their are various modes which is available to a company but for this
organisation, joint venture most suitable.
Segmentation, targetting and positioning of product play crucial role in decisioning
whether company will taste success or failure. Samsung is known for launching their products in
all kind of segment but their new 5G phone will be launched in premium segment and it will
positioned as a phone with latest features.
5G phone technology is latest in the industry and launching a phone which can use this
technology and provide high speed internet will play crucial role in providing some extra edge to
the company.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK ..............................................................................................................................................4
PESTEL Analysis........................................................................................................................4
Market Entry Options..................................................................................................................7
Market segmentation...................................................................................................................8
Porter's Generic Strategy ..........................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
Online .......................................................................................................................................14
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INTRODUCTION
Expansion is term which regarded as one of the crucial elements for the growth and development
in different market. Although entire corporate world is trying to introduce their various branches
in distinct marketplace for generating more or more revenue by satisfying needs of clients
(Tomczak, Reinecke and Kuss, 2018) . Thus, while having a potent brand image among people
in different geographical market it is important to do regular modification of existing product and
launch products so that they can maintain their dominance in different business market. The
purpose of this report is to analyse the strategies of the marketing while launching a new
cellphone in the United Kingdom. Ashanti Marketing Solutions (AMS) Limited deals in
providing online marketing services that provide digital marketing solution, SEO, and email
marketing that will customer to grow in business market. This assessment focus on AMS
contribution on launching a new cellophane for Samsung with advanced features of internet
connectivity e.g. 5G. The company wishes to earn more revenue from their new products, so
they have taken help of AMS Ltd. To increase their grass roots in UK, this report has underlined
strategies like PESTEL, Market Segmentation and porter strategies to increase sales volume of
cell phones with new features in different markets.
TASK
PESTEL Analysis
To evaluate external and internal factors of an organisation in UK, PESTEL and SWOT
analysis will help organisation to plan and make better strategies to launch their new cellphone
with 5G.
PESTEL Analysis
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Political Factors – For launching cell phone in UK, Samsung must understand political
condition of UK, and government approaches and views towards implementation of technology
in their company. It is estimated that government is having a positive approach towards using
new technology. Brexit will play a bigger role in UK, so all the political changes are made
according to it. The government pas planning to support small scale organisations and providing
funds to them to increase their activities in business market (Wilson and Gilligan, 2012) .
Political instability is one of the main external factor which can create severe challenges to
Samsung at the time of launching their 5G phone. Impact of Brexit is still unpredictable and this
can make a huge negative impact on the business.
Economic Factors – UK is regarded as one of the developed country in the world. They
always plan to stabilise their economy, most of the earning of organisation is from technology,
tourism and travel and service sector. T-mobile an UK based company has planned to launch 5G
at the end of 2019. It has given opportunity to Samsung to launch their product in UK market
with advanced features. The economy depends on the GDP of the country , that means that
people earns more income and they are prone to purchase the latest gadgets that are produced by
the firm, and that customer purchasing power increase the level of the company to expand in
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global market, and that is same happened with the Samsung, it will gain more profit when the
financial condition of company is stable across the border. Low economic growth of country in
present and upcoming time can directly be connected to low demand of goods who lies in
premium segment. This economic factor may affect Samsung's new 5G phone in a negative way.
Social Factors – It includes contribution of organisation towards the society. Apart from
earning revenue a company can also make products that will contribute in providing services to
their customers. The company has understood that digitation will play major role in in coming
future, so introduction of new feature will enhance data connectivity that will ultimately help I
contribution in providing social services. Social aspects is depends on the local communities and
their believes, so Samsung is a Korean company and it changes its preferences and polices
according to the social culture to establish its market in the United Kingdom. People in UK like
to buy latest technology. They follow the trend and never like to stay behind in terms of
technology. This factor will definitely impact Samsung in a positive way and it will play crucial
role in increasing demand of product.
Technological Factors – Technology always plays a crucial role in determining business
activities of company, starting from connectivity, information, quantitative and qualitative
analysis. It is also helpful in maintaining different activities in day to day life (Roger, 2010) .
Having better connectivity through cell phones will aid people to connect to their close ones in
an effectual way. Samsung is a cell phone company so it needs to put some innovative efforts to
introduce new technology to the forthcoming new devices that are required by the people and
maximize a company's fundamentals. 5G is latest technology and launching a phone which
support 5G network will affect Samsung in a favourable way.
Environmental Factors - Government of UK has adopted EU policy in maintaining
environment through European environmental standard policy. Different organisation doing
manufacturing practices in UK have to adopt government policies in their industrial activities.
Globalization is important in current scenario, the customers are aware about the environment
and they want to follow the environment rules in the country from their favourite brand,
Samsung is abide to follow each and every regulations that is beneficial to for the environment.
Their are many people who are concerned about the harmful radiations which come out of the
mobile network towers. If company will use launch a phone which support 5G network then it
may taint their image.
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Legal Factors – These factors include laws and protocols that are made to regulate and
properly guide activities of organisation. Some of the legal factors that include labour law,
industry law, management law, paternal law etc. that help in reducing the conflicts that arises
inside the industry. For launching new product Samsung must take special permission from
government of UK. Samsung had been paid the penalties for its imitation of the Apple's iPad and
iPhone and that is not appreciable by the laws and the firm must be loyal with the legislation
(Proctor, 2014) . Samsung would not be the only brand who has ability to launch 5G phones.
Their competitor like Apple may put them in legal trouble relating to designing or any other
feature of the product which can be similar.
Threat and opportunities of organisation .
Threat – The company is about to launch their product in new market, these market that
will have many threats that are as follows.
 Government policies – The policies of government are some of the important factors
that must be followed in business market. Some of the policies of government may not
support the marketing and business policies of organisation so it may lead to loss to
business activities of organisation.
 Financial factors- It is one of the important that the organisation must consider this
factor while launching their business in Newmarket. Launching a new product in UK
market especially 5G need a huge amount of investment and it is a risk if it is able to earn
revenue from business market. Competitor – Every company in business environment want to grow in business market,
so every company is working on increasing their revenue and customer base in different
market (Kotler, Shalowitz and Stevens, 2011) . For cellophane manufacturing company it
is essential t for them to work on latest technology to gain commutative advantage from
different market. The biggest competitor of Samsung in UK market is T-mobile that have
already planned to launch their mobile phone with this upgraded features and many other
companies have also planned to increase to participate in auction of 5G that will be
conducted by Ofcom in near future.
Opportunities of organisation in UK market
 Technological advantages – The company is a renowned company and doing their
business in an efficient way with a better brand image. Samsung has a history of putting
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innovative ideas in their business activities and compatible in global market. With a
better brand image and launching of innovative features they expect to run good business
in UK.
 Marketing – Digital platform provide better marketing technique that will help
organisation to explore new business areas.
 Government policies – Government in UK want to have bigger opportunities for growth
of country. They are helping many bigger and smaller organisation to come and incest in
their country, so it provides a greater opportunity for organisation to increase their grass
roots in all over UK (Banerjee, 2017).
 Performance in Europe – Most of the country in Europe are developed country and use
technology to make their life easier. Introducing 5G phone in UK market will aid
organisation to increase their performance and provide further opportunities to deeply
penetrate European market.
These are some of the factors that are to be considered while penetrating market of UK
using their new cell phones with 5G features.
Market Entry Options
There are number of option available for an organisation to enter business market.
Samsung must choose right option to enter and succeed in that market. Samsung must
understand and analyse different methodology that will help them to accept best method to
perform their business activities. The main motive of organisation is to target certain
geographical area and make strategies to grow and earn profit in this business market. Some of
the important factors that can be considered while entering a market are given below:
 Licensing – For entering a new market an organisation must ensure that they adopt a
legal framework while launching their product or service in business market (O'Dwyer,
Gilmore and Carson, 2011) . Making the organisational activities legal will help in
reducing deputes, clashes and unethical practices. Samsung is already an establish
company in UK, so it will be easy for them to launch their new product in market. A
company must take a license first to initiate in new market, for that it must follows the
company's rules as shown in the article of association, keep company's records, report
changes, transactional information and corporate tax, register of self assessment. Getting
a license means company has right to sell their product in new country. Before of Brexit,
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Samsung may face some trouble at the time of entering in UK with this product because
regulation of EU and UK may change in forthcoming time.
 Joint venture – It is also called partnership where two or more than two organisations
come together to start a new venture or business activity. Samsung is an organisation that
performing business on global level, so it does not need any organisation to perform their
business. They only entitle to give short term contract to perform projects like promotion
and marketing, contacting consultees for labour requirement. The joint venture contract
is made of agreement date between both parties, that contains the documents that is
signed by the parties to mutually understand. The agreement includes joint venture name,
joint and several obligations, agreement duration and termination, joint ventures interest,
capital contributions, loans, authorized representatives, management, records, time and
efforts contribution, governing laws and entire acceptance (Lee and et. al., 2013) .
Samsung is one of the most successful brand in mobile manufacturing industry but this
means that they do not need suppose from local players. Joint venture contract does not
include much legal complexity and it is good for Samsung specially in initial period of
their business.
 Franchising – This strategy provides a framework that aid an organisation to increase
their potential to invest in new business market. It is a type of deal that has been agreed
between two parties one is franchiser who provide license to their activities and products.
On the other hand, franchisee is present, they are responsible for purchasing their model
in exchange of some fees that has been undersigned in aggrievement. It is one of the
efficient factor because their risk factor is very less in performing these business
activities. The legal structure to form a franchise is -
 a franchise agreement governs owner name's license to operate an authorized franchise
location under the franchise company, agreement date and year.
 This will be signed between two parties, owner of the firm and franchise owner,
 franchise fee
 franchise agreement terms including owner and franchise responsibilities.
 Rights, transferring, and confidential, renewal and termination policies.
Recommend to Samsung
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Joint venture will be a good opportunity to explore in the market with other brand
because it will be beneficial for business. Joint venture is provide some already existing
customer to Samsung and they will not have to spend huge money in terms of promoting their
brand because of the big name of their local partner.
These are some of the most common factors through that will an organisation can enter new
business market and earn profit accordingly. As Samsung is entering new business market they
must plan to increase their business in different location in all over UK with suitable strategies
that will help organisation to launch their -product effectively in different business market
(Thrassou and et. al.,2012) ).
Market segmentation
Market segmentation is a process through which an organisation separates and segment
their workforces according to demand of their product. By properly separation of people based
on geographical areas and demographic division so that they can promote and sale their product
based their analysis. For doing it efficiently Manager of Samsung has to adopt different
quantitative and qualitative methods to record and analyse those data for proper analysis of their
data. They can use STP (Segmentation, Targeting, Positioning) process for making better
planning of business activities. These as explained below -
Segmentation – This factor is used to find attitudes and behaviour of customers in
different market. By segmenting the customers Samsung will find it easy to analyse the volume
of products that has to be distributed in different geographical location. This will also help in
understanding the nature of market and approaches of people towards acceptance of new
technologies. Every segment has different nature and provide several opportunities to sustain in
these markets. For example, Samsung is launching a new cell phone UK so people in London
will be more aware it rather than a small village in Durham. Hence demand of new cellophane
will be more in London then a small village (Quinton and Fennemore, 2013) . There are four
kinds of market segmentation, these are as follows:
 Demographic – In demographic segmentation is based on variables such as age, gender,
family size, income, occupation, religion, race, and nationality. Targeting young and
upper class customer is important point which Samsung has to focus, if they launch their
5G phone in UK market. Their phone will be launched in premium segment.
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 Behavioural segmentation – This segmentation divides the population according to the
behaviour, usage and decision making. Their are many people who always prefer to
purchase phone with latest technology. Company have to find people with this kind of
behaviour for assuring success of their product.
 Psycho-graphic segmentation – Psychology segmentation is one which is based on
lifestyle of the local people, activities, interests, opinions and buying behaviours. People
who always like to keep themselves up to date and have this type of lifestyle are should
be targetted by Samsung in order to increase sale of their phone.
 Geographical segmentation – As it name suggests that it is formed on the population in
certain geographical region, the people who lives in that area. Phone of the people who
are living in cities like London will take more interest in purchasing a product which has
latest phone compare to people who are living in 3 tier city. They should be target by
company because they are potential customer.
Target – It is about finding out the expectation of customers from the market. Customers
in UK are fonder of trying new and innovative technology in their products, this has allowed
Samsung to invest in business market of UK the demands are higher for innovative products.
Company can make policies and strategies according to it. For targeting customer in business
market time plays an important role. Launching the ned product at right time and right place will
provide fruitful result. Samsung has sensed that demand of using internet is increasing day by
day and introducing 5G cell phones will increase demand and values of organisation. Company
have made phones with 5G features at different price range so that they can target customer of
every level. This becomes easy for them to target different categories of customers (Line and
Runyan, 2014) .
Positioning – Placing the product by separating customers based on demands of
customers in different market. Samsung is already placed among the top most company in all
UK. So, they will find easy to position their product in different geographical region. Proper
positioning of product in different business market will also aid organisation to make financial
planning and generate goodwill among the people. Samsung can launch 5G cell phones at a
different price range so that can be able to target different types of customers. Due to global
present they can invest more finance in manufacturing of product bust ultimately it will aid them
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because they are able to increase their customer base by launching different price range of
products.
STP method helps organisation to understand customers and their expectation in market
that helps organisation to grow in business structure.
Porter's Generic Strategy
Porter's Generic Study – This strategy was determined by Michael Porter. He stated
that the position of an organisation in defined industry depends upon their profit making. By
comparing the efficiency of profit making of organisation with standard value, company is
categorised as below average or above average . The important feature of this theory is used to
determine profitability and sustainability of organisation in different business market. Porter has
divided competitive advantages into 2 factors low cost and differentiation. Making strategies by
adopting these factors will aid company to make better planning to perform efficient business in
future run. The theory is being decided into 4 major factors that are important to achieve better
performance for organisation that are as follows (Aspara, Hietanen and Tikkanen, 2010) .
Cost Leadership strategy – Cost leadership strategy is used make strategies that are
used to make planning to reduce cost of their product. Company must determine different
sources where the company can generate cost advantage. Some of the factors that are used to
determine costing of product are economics of scale, costing of raw material, workforce charges,
proprietary technology etc. By observing every factor by an organisation, they can make efficient
planning in making proper planning of business activities to reduce wastage and make proper
planning about their products. Samsung can use this strategy to reduce cost of their product and
make proper planning accordingly. Samsung make their products in bulk and they have various
patent rights. Overall production cost will go down when Samsung will start bulk production of
mobile phones. Their competitor has less production capacity compare to them and this is why
their selling price is more than compare to Samsung.
Adopting cost strategy in launching new product and its advantage over another strategies
Implementation of cost leadership strategy will aid organisation to make better strategies
and planning to increase their dominance in marker. Launching of 5G phones will aid
organisation to have competitive advantage in business environment because it will increase their
sales. T-Mobile is another company planning to launch 5 G but it do not have global presence
and dominance like Samsung so Samsung can have changes to dominate market in UK with their
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new product apart from that they are able to launch mobile phones at different price range that
will aid them to fetch more number of customers towards their product. It is better that
differential strategy because it is used to make planning according to the available budget to
make their planning, on the other side differential strategy is used to make good marketing and
promotional strategy only. It is better than focus strategy because all the activities of the
organisation are accountable in cost leadership strategy, so it provides a transparent framework
in their business activities that will help in producing faith and goodwill among customers of
different business market. By proper cost management of their product company can be able to
provide cell phones at different cost range so cover most part of market in all over UK
Differentiation Strategy – This strategy means company wish to do business with new
products in market. The must makes effective promotional and marketing strategy to launch their
product and service in business market. Samsung has planned to introduce 5G technology in UK
market as people in country are crazy about using new technology. The new product will give
more scope and opportunity to company to planned increase their sales in business market
(Shank and Lyberger, 2014). Their is no doubt that 5G phone will be a unique phone because it
will have ability to support super fast internet which this world has never seen. Samsung may
improve other features like their camera at the time of launching this phone but high speed
internet will be key factor which will motivate people to buy their product.
Focus strategy – It is about competition between different organisation in a given
market. The organisation must make strategies to gain commutative advantage among their
competitors. This strategy is divided into two important factors
(a) In this different organisation focus on costing of their product to gain competitive advantage
among their competitors
(b) They also focus on differentiation in segmentation of market
Both the factor under focus strategy are focus on analysing different segment of their target
market that them to analyse current and future demands of their products. The consider both
buyers and geographical region while focussing on business strategies in that market area.
Samsung over the years is using focus strategy in analysing volume of demand of their product
in different market so that they can plan efficiently to fulfil customers’ needs and wants. This
also gives them advantage to record and analyse customer feedbacks so that they can be able to
fulfil their demands.
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Providing better budgeting to product will enhance capability of Company to explore
more geographical areas to setup their business activities.
CONCLUSION
From the above assessment it is concluded that for growing in different market it is
important of organisation to implement new ideas in series of products. Samsung has a very good
opportunity to gain competitive advantage in market by launching a new 5G Phones. It is a new
product in market that is expected to do business in future run, but for doing so they have to
analyse different market areas through different strategies and choose appropriate one for
functioning of their business. They can use Marketing segmentation technique, PESTEL, Porter
generic model for better evaluation of different approach. Expansion of a business is a large area
that provides several opportunities for a business to grow and this report has discussed a glimpse
of it.
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REFERENCES
Books and Journals
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O'Dwyer, M., Gilmore, A. and Carson, D., 2011. Strategic alliances as an element of innovative
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Quinton, S. and Fennemore, P., 2013. Missing a strategic marketing trick? The use of online
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Aspara, J., Hietanen, J. and Tikkanen, H., 2010. Business model innovation vs replication:
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Shank, M.D. and Lyberger, M.R., 2014. Sports marketing: A strategic perspective. Routledge.
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Online
T-Mobile to roll out 5G to 30 cities by 2019: What is 5G and when is it coming to the UK? 2018.
[Online]. Avaialble through<http://www.alphr.com/technology/1005678/what-is-5g-
and-when-is-it-coming-to-the-uk>
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