Strategic Marketing: Macro Environmental Analysis, Market Entry Routes, Market Segmentation and Targeting, Porter's Generic Strategies

This report discusses strategic marketing concepts such as macro environmental analysis, market entry routes, market segmentation and targeting, and Porter's generic strategies. It focuses on how Rowlinson Knitwear can expand its business in Asia with its new product 'Traditional Wear'. The report includes a PESTEL analysis, different market entry routes, STP analysis, and an explanation of Porter's generic strategies.

Strategic Marketing

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................2
Macro environmental analysis of the firm consisting major opportunities and threats that the
company could face in selected nation........................................................................................2
Explanation of main market entry routes.....................................................................................4
Description of market segmentation and targeting in form of targeting its consumer
appropriately................................................................................................................................4
Explanation of Porter’s generic strategies...................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic marketing is an activity of planning, improving and implementing strategies to attain
business goal and gain competitive edge from a chosen business marketplace. It can be a process
of utilising diverse marketing plan of action to solve the complexities which are occurred in the
business of a venture. It helps in improving products and services with effective profit marketing
potential. It also assist in finding out the areas that are impacted by organisational development
and help in framing an organisational plan to fulfil needs and demands of customers (Chernev,
2018). This report is supported to Rowlinson Knitwear which is a manufacturing company and
produce premium quality garments. The main aim and objective of this firm will use several
marketing plan of action to solve the problems that are arisen in the business of it. This document
will cover information about macro environment analysis, market entry routes, concept of STP
and Porter’s generic strategy for the efficacious business activities and operation of enterprise
and gain competitive benefits from marketplace.
MAIN BODY
Macro environmental analysis of the firm consisting major opportunities and threats that the
company could face in selected nation
Rowlinson Knitwear is a manufacturing company which was incorporated in 1935. This firm
produce premium quality garments for independent retailers of school wear and corporate wear
(Moutinho and Vargas-Sanchez, 2018). For instant, now the firm decide to make expansion in its
business with its new product “Traditional Wear” in Asia.
PESTEL analysis of Rowlinson Knitwear
It is a strategic tool and technique that is used by organisations to determine the macro
environmental factor or external components that affect the business of the company in
favourable and unfavourable manner. It is a process that helps the firm to find out that are which
are affected by external environmental elements (Sahaf, 2019). The description of PESETL
analysis in context of Rowlinson Knitwear is as below:
Political factor- It refers to those components that are all about how and what extent a national
authorities arbitrates in the economic system or particular sector. It include government stability
and instability, taxation policy, corruption level, trade regulations, labour law and foreign
exchange rate etc. In Asia, the political atmosphere is clouded by political intolerance and
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mismanagement etc. So it can create unfavourable impact over the business of Rowlinson
Knitwear because due to mismanagement cannot set up and operate its business in ethical, legal
and structural manner. So it influences the image of the venture in negative form. But the free
trade factor can create favourable impact and beneficial to respective enterprise to run its
business with new commodity at this location (Moutinho and Vargas-Sanchez, 2018). So it, can
be determine that under this factor, organisation have major threat regarding its business.
Economic factor- It is another component of respective analysis which include exchange rate
unemployment trends, economic growth, currency rate, inflation and deflation rate, monetary
policies and labour costs etc. In Asia, exchange and currency rate is low so it is not easy for any
business to run and stay in demand. So if the administration of Rowlinson Knitwear runs its
business with the help of its new product “Traditional Wear” then it will offer growth options to
the venture (Sahaf, 2019). In Asia, the unemployment rate is adequate or moderate which can be
utilised by this firm as an growth option. In this component, the level of threat is high is high in
respect to opportunity for Rowlinson Knitwear.
Social factor- This factor consider different elements like culture, value, beliefs, life standards,
demographic factors and taste & preferences of target audiences. When the needs and demands
of consumers are changed then this component influence the business in positive and negative
manner (Thrassou, Vrontis and Bresciani, 2018). In Asia, the change is occurred in consumer
need frequently and they want innovation in their wear so by offering traditional wear product,
the firm can fulfil their need in effective manner. This will favourably affect the business of
organisation and provide business development opportunity.
Technological factor- It consist technology incentives, legislations regarding technology, basic
infrastructure level, communication infrastructure and access to new techniques etc. In Asia,
countries have not technical advancement that can affect the business of firm in negative manner
and affect business operation of the business. But using different technology like social media
tools in promotion the firm can make development by creating awareness about its new product
“Traditional Wear”. This will help in increasing customer base in term of familiar them about
new products that are able to satisfying them (Thrassou, Vrontis and Bresciani, 2018). So this
actor affect the company by creating threat reading innovative technology in manufacturing but
provide opportunity by cresting awareness by using social media tools
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Environmental factor- This factor consist various factor such as climate change, weather,
recycling, wastage management, environment law, pollution act and many more. In Asia, the
nation suffers some environmental challenges like water pollution, land degradation,
deforestation and solid waste pollution. But this factor positively affects the business of
Rowlinson Knitwear because the firm effectively follow environmental and manage its waste
through recycling process which will not harm the environment (Brooksbank, Subhan and
Miller, 2018). But now this entire world is facing issue of COVID 19 which will generate threat
for the business of this firm in term of restricting its business operations and activities.
Legal factor- It mention to the legislations and regulations that are framed and developed by the
national authorities of a region for the effective running of the business in crucial manner. In
Asia, the government encourages Foreign direct investment in all sectors of economy so there
are some limitation on foreign shareholders (Chernev, 2018). This create threat and development
chances to Rowlinson Knitwear in moderate term like when the firm run its business in this
nation with the help of “Traditional wear” product and follow the Employment Act 1998 in
working environment then it positively affect organisation and maintain fair treatment within
venture. So if the management of respective firm follow all the laws and legislation of Asia then
it can operate its business adequate way.
From the preceding analysis of nation, it can be concluded that it offer different growth
options for the incorporation of the business of the firm with its new product “Traditional Wear”.
Explanation of main market entry routes
In current market place environment, globalization has been influencing majority of the
organizations in terms of business expansion across the globe. There are various types of market
entry strategies which Rowlinson Knitwear can adopt for improving the sales performance of its
new product i.e Traditional Clothes. There are different market entry routes and modes that can
be adopt by the respective, some of them are described below.
Strategic Alliance –Under strategic alliance entry mode, it refers to an agreement between two
or more companies with in the Asian market with an aim of achieving pre-determined goal and
objective in an effective manner (Adams, Freitas and Fontana, 2019). Strategic alliance three
type of alliances i.e. joint venture, equity strategic alliance and non-equity strategic alliance.
Rowlinson Knitwear can make partnership with the existing market player in the same line of
business for effective growth with comparatively lesser efforts in Asian Markets. This helps
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company in identification of target market segment, distribution and other critical factors helping
in sales growth as existing partner will have all these market knowledge in advance. In addition
to the smooth entry with lower cost this kind of alliance also helps in situation where company
wants to exit any market.
Merger and Acquisition –Merger and acquisition is another type of strategies helps the
organization better control over the entire eco system as compare to above mentioned strategic
alliance (Galli, 2020). In case of merger two organization merge with each other and forms a
larger new entity whereas under acquisition one organization takes over the business of other
one. With respect to Rowlinson Knitwear application of merger and acquisition strategy provides
enormous new opportunities to expand business into the Asian market place.
FDI–Foreign direct investment takes place in form of controlling ownership of the business
in the target market country whereas controlling entity is based out of another geographical
region. Foremost advance of this strategy for Rowlinson will be reduction in overall cost of
production.
Concluding the above Rowlinson Knitwear can adopt M&A strategy for expanding its market
into Asian region with the new range of traditional clothes. However, company can avail the tax
benefits by local government and also expand its product portfolio into new market segments
(Brooksbank, Subhan and Miller, 2018). This strategy will help company for inorganic growth,
helping experience of existing market player result into effective sales and distribution of
traditional cloths.
Description of market segmentation and targeting in form of targeting its consumer appropriately
STP Analysis
It is a procedure of determining the market on the basis of segmentation, targeting and
positioning. By applying this concept, the management of Rowlinson Knitwear can make
development in its marketing effectiveness and efficiency (Percy, 2018). With the help of it, the
management of respective firm can segmented its customer, target and positioned them regarding
its new product “Traditional Wear”. The detailed description of this concept in context of
Rowlinson Knitwear as under:
Segmentation- It is an activity of dividing market small sections with similar product needs and
identifiable characteristics with the motive of selecting appropriate target markets. In Rowlinson
Knitwear, the administration of the firm can devise segmentation by considering the basis of
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demographic, geographic and behavioural. In Asian market, the administration can segregated its
market in form of density and choose urban market for its new product. The venture can select
20-45 age group of consumer and provide it to both male and female target audience. In
demographic form, the enterprise can divide it on the basis of income and provide it to upper,
upper middle and middle class people (Dogu and Albayrak, 2018). On the basis of behavioural,
the firm can segregate it, in form of those people who prefer traditional wear. This type of
segmentation can be beneficial to the firm because it will be assist in improving the business o
the firm in term of increasing sales, enhancing productivity and maximising profitability.
Targeting- It is a process of selection of effective market segment that assist in
maximising sales and profits of the firm. In Rowlinson Knitwear, the administration of the firm
can target people of 20-45 age group, upper, upper-middle and middle class and individual who
prefer tradition wear. Because in Asian nation most of the people prefer traditional wear. In this
term the company can target newly married couple and others. The company will launch
“Traditional Wear” which are effective for maximising customer base because in rural or urban
area people highly prefer these kind of wears. So these potential clients of the firm can be main
user of these kinds of products and it will also enable in increasing the sales and profitability of
the firm in new market such as Asia.
Positioning- It is an act of setting up a position in the particular market with the
assistance of efficacious characteristics and features of the goods. In Rowlinson Knitwear, the
administration of the organisation can create an appropriate position in marketplace as the firm
an effective product which is as per consumers needs and also able to fulfil their demand. So by
providing this new product by using affordable pricing strategy the respective firm can build a
strong position in particular market. The firm can also use social media tool to promote its new
product and create awareness about the product that is offered by the firm (Cotterill, 2019). The
administration of this firm can also offer its commodity by online mode by using a mobile
application of firm so that consumer can easily reach to product and purchase them.
Explanation of Porter’s generic strategies
Porter’s Generic Model
This concept was formulated y Michael Porter in 1980 to uncover the ways by which a company
gain rivalry benefits till long term duration from a competitive market place. The generic is
developed to earn competitive benefits from marketplace so that the venture can sustain and
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survive in a particular marketplace till long term. This model include plan of action like cost
leadership, differentiation leadership, cost focus and differentiation focus (Hunt, 2018). By
implementing this concept in to business the respective firm can gain competitive advantages at
the time of launching new product in Asian market. The brief explanation of this strategic moeld
in respect to Rowlinson Knitwear is as below:
Source: Porter's Generic Model,(2016).
Cost leadership- It is foremost strategy of this concept which is effective to earn competitive
benefits from market. In this, if the administration of a company accepts this plan of action then
they only concentrate on the cost and pricing strategies that are effective for the firm to launch a
new product and also assist in offering rivalry benefits from the particular business sector. In
Rowlinson Knitwear, if the management of this firm will adopt this strategy in its business of
new product then it can enable in providing advantages over competitive market in which the
enterprise is going to operate. For this, the management can use low pricing, competitive pricing
and discount pricing strategies etc. Which are beneficial to the company because due to which
customer gain product at affordable prices and they will retain with the venture till long term.
Cost leadership allows a competitive benefit by influencing manufacturing cost which does it in
two effective ways like by charge lower cost to maximise market share and minimising cost to
increasing profitability (Ducange, Pecori and Mezzina, 2018). The respective company want to
launch Traditional Wear in Asian market because the demand of these kinds of cloths is high in
this region. So earning profit, enhancing productivity will easy for the company. Apart from this,
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Illustration: Porter's Generic Model

the firm also make development in its customer base and retaining them till long term by offering
goods and services as per their needs and desires.
Differentiation- this plan of action use for the success and development of goods and services of
a firm that offers unique characteristics and features which are valuable to consumer and
perceive better and different by target audiences than other products. The unique features and
attributes help in adding value and allow the firm to make modification in its pricing strategies.
There are different factors that can be essential and consider in this plan of action in form of
earning rival’s benefits such as better and premium quality, features, durability, reliability,
branding, wide distribution crosswise all main tools and effective publicity (French and Gordon,
2019). In Rowlinson Knitwear, the company is going to run it’s expand its business in Asian
market with it new Traditional Wear products which are highly demanded in respective region.
This product is beneficial because it is able to provide effective satisfaction to consumer’s needs
and demands so it will assist in fulfilling the need of firm to gain competitive benefits. Cause of
valuable product, the firm can devise modifications in its pricing strategy in term of low or high,
thus will effective to earn completive edge from particular business sector.
Cost focus- It is another strategy of this model in which the venture can earn benefits of
competitive market by only making concentration over the pricing strategy of the company. If
the administration of Rowlinson Knitwear uses this plan of action the management of this
venture can only make changes and fluctuation in pricing strategy in form of changing low and
high term (Percy, 2018). For instance, the administration can modify price by making
determination over the level of competition in the marketplace in which organisation going to
operate. If the competition is high then the firm will use low pricing and discount pricing
strategies etc.
Differentiation focus- It is the last strategy of this generic model within which the firm can focus
on cost or product to earn competitive benefits. In Rowlinson Knitwear, if the company adopt
this strategy then management can only concentrate on making change in pricing strategies or
making innovation in to product to earn rival’s benefits. If the firm will make focus on product
then it can make modifications and changes in its commodity (Chaffey and Ellis-Chadwick,
2019). But if the firm concentrate on cost then it can make changing in its pricing strategies by
using other strategies of prices to its new product Traditional wear to gain competitive benefits.
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From the preceding explain content, it can be analysed that the administration of Rowlinson
Knitwear can adopt diversification pricing strategy s it assist in gaining competitive benefits by
making change in pricing strategies or by making modification in product. It will also assist in
creating an effective position in to marketplace and sustaining or surviving the business of the
company in particular market till long term duration (Abratt and Bendixen, 2018). It will also
essential for organisation to make development and growth in the business of Rowlinson
Knitwear during the time of business expansion.
CONCLUSION
This has been summarised form the above mentioned information that effective or good
marketing strategies are essential for the development and growth of a business venture. Because
with the help of effective plan of action, the firm can aware about the factors that affect the
business of the firm in positive as well as negative form. Appropriate plan of action also assist
the firm in gaining competitive benefits and establishing apposition in a specific marketplace. By
using appropriate strategies like PESTEL analysis, STP analysis and Poter’s generic strategies
are crucial for an enterprise because it assist in development of firm and increasing its profits and
market share.
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REFERENCES
Books & Journals
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Sahaf, M.A., 2019. Strategic marketing: making decisions for strategic advantage. PHI Learning
Pvt. Ltd..
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Thrassou, A., Vrontis, D. and Bresciani, S., 2018. The agile innovation pendulum: A strategic
marketing multicultural model for family businesses. International Studies of Management &
Organization. 48(1). pp.105-120.
Brooksbank, R., Subhan, Z. and Miller, S., 2018. What differentiates successful strategic
marketing among manufacturers in an emerging vs developed market?. Asia Pacific Journal of
Marketing and Logistics.
Percy, L., 2018. Strategic integrated marketing communications. Routledge.
Dogu, E. and Albayrak, Y.E., 2018. Criteria evaluation for pricing decisions in strategic
marketing management using an intuitionistic cognitive map approach. Soft Computing. 22(15).
pp.4989-5005.
Cotterill, R.W., 2019. Competitive strategy analysis for agricultural marketing cooperatives.
CRC Press.
Hunt, S.D., 2018. Advancing marketing strategy in the marketing discipline and beyond: from
promise, to neglect, to prominence, to fragment (to promise?). Journal of Marketing
Management. 34(1-2). pp.16-51.
Ducange, P., Pecori, R. and Mezzina, P., 2018. A glimpse on big data analytics in the framework
of marketing strategies. Soft Computing. 22(1). pp.325-342.
French, J. and Gordon, R., 2019. Strategic Social Marketing: For Behaviour and Social Change.
SAGE Publications Limited.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Abratt, R. and Bendixen, M., 2018. Strategic Marketing: Concepts and Cases. Routledge.
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Adams, P., Freitas, I.M.B. and Fontana, R., 2019. Strategic orientation, innovation performance
and the moderating influence of marketing management. Journal of Business Research, 97,
pp.129-140.
Galli, B.J., 2020. Using marketing to implement a strategic plan: Reflection of practiced
literature. In Start-Ups and SMEs: Concepts, Methodologies, Tools, and Applications (pp. 1518-
1532). IGI Global.
Online
Rowlinson Knitwear. 2020. [Online]. Available Through: <
https://www.linkedin.com/company/rowlinson-knitwear-limited>.
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