Strategic Marketing for Airdri in South African Market

This report discusses the strategic marketing strategies and tactics for Airdri to enter the South African market with new products and services. It includes a PESTEL analysis, market-entry options, and market segmentation.

Strategic Marketing

EXECUTIVE SUMMARY
Respective assignment rely on the aspects of marketing strategies and tactics to
recommend the other company that aimed to enlarge business opportunities in foreign market
place with new products and services. Respective report shows the strategy of marketing at time
of entering into a new market by covering all crucial kinds of aspects such as competitive
strength, benefits and competitors to build strategies and tactics. The major aim is to produce a
plan which used by organisation for taking effective decision making by considering the segment
market, targeting strategies and tactics for gaining competitive advantages.

INTRODUCTION
Strategic marketing is the chain of activities related with planning, development and
implementation by a firm in effectively manner to create distinctive effect from competitors to
capitalising values in order to provide better outcomes to supreme consumers. Respective
assignment rely on Ashanti marketing solutions which is one of leading marketing consultant
that provided consulting services to other companies that aimed to enlarge business
opportunities. As an consultant of respective organisation they provided suggestions or
recommendations about the best way to enter into other country by using new products and
services to Airdri. Respective organisation is a long established UK manufacturer of Hand dryers
and enlarge business opportunities in the market of south Africa in sector of consumer
electronics by bring 3D televisions in African market. Respective report is based on generation
of ideas of new products and services to enter into new marketplace by using market
segmentation, PESTEL analysis regarding external environment for effective kind of conclusion
and recommendation for gaining potential outcomes.
PESTEL Analysis:
Macro environment are the section or attributes that directly impact on organisation and
its activities at external level or tier (Anees-ur-Rehman and Johnston, 2019 ). In context of
Airdri by using PESTEL analysis organisation can evaluate various factors before entering into a
country over here:
Political factors:
In political factors consist of the factors that are uncontrollable in nature such as tax and
fiscal policies, trade and tariff in context of Airdri as they aimed to enter into market of South
Africa for gaining potential outcomes. So it is very crucial for them to firstly analyse the
respective factors of South African marketplace. Inflation rate is within the 3 to 6% target range
at 5.3% if the rate of inflation and tax rates hikes that negatively affect on organisational
activities. So for an organisation it is very much crucial to evaluate major factors associated with
the expansion of business to reap important outcomes. South African economy is majorly
dominated by service sector that approximately contributed by 68.7% of the total GDP in 2016
(Macroeconomic Opportunities and PESTLE Analysis of South Africa 2016, 2019).
Economic factor:

In economic factors of an organisation includes rate of interest, exchange tax and
economic growth patterns which affects organisational works and activities (Brotspies and
Weinstein, 2019). South Africa which is one of the fastest growing economy and per capita
GDP is $6483 and service sector contribution is 65.9% that is one of major factors to enlarge
business opportunities in respective market. The positivity of economic factors proved beneficial
for organisation that helps to enhance level of demand, market share and rate of profitability for
gaining desirable outcomes. In respective market the government has a tough job by allocating
resources with kind of high inequality. On other hand due to lack of facilities in front of people
there are wide opportunities to marketers to enlarge business opportunities. New numbers shows
that manufacturing output increased by 4.6% in April 2019 in comparison to April 2018 (9
reasons to feel better about the South African economy, 2019).
Social factors:
In social factors consist of the cultural trends, demographics, population analytics and
many more (D’Souza and et.al ., 2019.). In context of Airdri after analysing market trends they
aimed to build products that are 3D TV sets as consumers demand highly advance technology. It
is proved beneficial for respective organisation to enlarge opportunities in South African market
place that possess 4.3 million middle class people. In context of South Africa market it is very
essential to acknowledge the taste and preferences of consumers as people demanded techno
savvy consumer electronics majorly 3D TV as Airdri aimed to enlarge business opportunities.
The population in South Africa is relatively young that majorly interested in advance kinds of
consumer electronics with median age of 27.4 and no. of people per household is 3.3 so it proved
great opportunity for respective firm to enlarge in new market.
Technological factors:
In technological factor refers to the commencement of organisational operations in most
innovative and creative manner (D’Souza, Taghian and Brouwer, 2019). In market of South
Africa as they use similar or bit more advance technology to enhance the living standard of
people so it is the great opportunity in front of Airdri to bring new product by using highly
advance products in market. By investing lot on research and development to enhance experience
level of consumers they aimed to bring highly advance which is 3D TV sets in South African
marketplace.
Legal factors:

In respective factor consists of the regulations that affect on organisation such as
consumer protection laws, safety standards and labour laws and many more. In context of Airdri
they by analysing before entering into market the laws and regulations that impact on business
activities. In legal factors consist of the anti trust laws and discrimination laws impact on
organisational sustainability. South Africa has a Hybrid or mixed kind of legal system with
technical regulation on trade, anti dumping measures affect the organisational activities of
respective organisation so it is crucial for them to adopt them build some strong strategies.
Environmental factors:
In environmental component consist of the surroundings of the environment such as
climate, weather conditions and geographical locations and many more factors (Formentini and
et.al ., 2019.) To eliminate negative effects arise from above mentioned factors and to build
loyalty in consumers of Airdri they aimed to invest in CSR activities. The major factors to
enlarge business opportunities in south African market that it has lot of natural resources and it
is one of best location for start ups and companies aimed to enlarge their business. Low
protection regimes regarding environment helps to Airdri to concentrate on gaining larger market
share in African market.
Hence it has been concluded that for an organisation it is very much crucial to evaluate
the external business environment to build strategies and tactics accordingly. In context of
respective Airdri as per the recommendation of Ashanti solutions they by using visualising
effects can gain potential outcomes by eliminating adverse effects of external environment.
Market-Entry options
To enlarge business opportunities in new market it is very much crucial to pick out one
of best way from various strategies that helps to gain competitive advantage ( French and
Gordon, 2019.). It is very crucial to evaluate the entry mode and choose one of best out of them
by collecting data such as level of risk associated, growth opportunities, competitive intensity
and availability of distribution network and regulations that create hindrances to enlarge business
opportunities. Here are the major kinds of entry mode strategies in context of market expansion
of Airdri in South African market:
Strategic Alliances:
Strategic alliances also known as strategic partnership which is an statement majorly in
between two communities that are agreed on conditions to gain potential outcomes (Johnson,

2019.). A strategic alliances adopted by majorly legal partnership entities, agencies and or
corporate affiliate relationships. The relationship in respective kind of entry mode may be for
short or long term and agreement could be in formal or informal order to optimise opportunities
for gaining positive outcomes. There are some of advantages and disadvantages of respective
factor of entry that are as follows:
Advantages:
Strategic alliances helps to organisation in order to improve the current operations as per
the changing business environment (Mogaji, Maringe and Hinson, 2020.). It is one of most
ease of entry and exit way as it provides economies of scale by successful strategic alliances
positively in market.
But there are some sort of disadvantages consist with it that are sometimes partners may
misrepresent that are come into market and fail to commit resources and capabilities to other
partners. The another disadvantage that when companies come together, owner have to put their
company at risk and sometimes they loose good people because strategic partners able to pay
best people more then parent company afford to pay them.
Mergers and Acquisitions:
M&A defined as an integration of two companies with one, the major goal of combining
the two or more businesses is to try and achieve level of synergy to attain desirable goals and
objectives in positive manner. Mergers and Acquisitions are very much important for the
corporate finance world and most important aspect behind it that it together create value in
comparison to remain all alone. It has the objective of wealth maximisation, by evaluating the
various opportunities with help of respective mode for gaining desirable outcomes. It can be
Only possible by purchasing assets, common shares in terms of increasing sales, efficiency and
capabilities.
Here are the some crucial benefits and drawbacks of respective factor:
Most common kind of advantage of M&A that it helps to unify power to control various
activities of both the companies (Mols, 2019.). The other major kind of benefit which is that it
provides synergy that helps to increase value efficiency of new entity and by shaping the returns
in form of enrichment and cost savings positively.
Drawbacks:

Increase in market share leads towards monopoly power and enhance prices of products
that proved hazardous for consumers. The larger firms may encounter diseconomies of scale
such as harder to share or communicate and coordinate properly.
FDI (Foreign direct investment):
FDI is the kind of investment that are build by an organisation or by an individual to
unite the self interest with the other nation ( Pu, Gong and Han, 2019). Majorly FDI takes place
within the environment when an investor establishes foreign business operations or by acquiring
the business assets in a foreign nation. Respective kind of entry mode strategy adopted in open
economies which offered skilled workforce and above average growth opportunities for gaining
potential outcomes.
In context of business there are some sort of benefit of FDI that it enables to capture the
economy of the country by taking care of local economy. Occasionally the country possess their
own important kind of tariff system that is one of crucial reason that builds trading quite difficult
(Phillipov, 2019.). As industries usually required the global presence by ensuring that sales and
goals completely met with one another to remain competitive in marketplace.
There are some disadvantages of FDI that are:
In context of FDI which focus on resource elsewhere other than the investor's home
country so FDI sometimes create hindrances for domestic investment. There are kinds of
political issues faced by an organisation while dealing in other countries that faces instantly
changes. As FDI is one of most risky and most of risk factors going to be experience at
extremely higher level. So it is very crucial for an organisation to evaluate each and every factor
before enlarge business opportunities in foreign market place for gaining potential outcomes.
In context of Airdri in terms of reducing cost and level of risk they by choosing strategic
alliances that is best for organisation in order to enter into the South African market. By using
respective factor they can avail large market share by increasing their consumers base for gaining
profitability successfully in terms of financial resources.
Market Segmentation
Market segmentation is the crucial component for a firm in which consumers are divided
into various groups or segments. In that regards they create separate products and services for
each group or segment in order to serve their expectations in proper manner (Sahaf, 2019.).
There are majorly four different categories of market segmentation that are demographic,

geographic, behavioural and physiography. They use segmentation of marketplace based on the
perception of subjects feedbacks and by understanding consumers needs and wants in proper
manner (Mols, 2019.). Airdri as per the consumer preferences aimed to provide 3D Television
sets that are highly advance in technology in African marketplace. Respective country majorly
deals in hand dryers, with aim of enlarge opportunities they come in sector of consumer
electronics in respective market. The major market is young people who prefers highly advance
tools and techniques to enhance their living standard and higher income class people.
Based on segmentation, next stage which is targeting strategy in context of South African
marketplace which is related with selection of consumers for the organisation to sell products
and services which rely not only on decision making of not for all firms but choose all segments
in order to gain potential outcomes. In context of Airdri as they introduce Electronic products
into marketplace by using multi segment marketing. They capture majorly to the niche market to
only target small group of individuals. Respective organisation have well defined group of
consumers and established to satisfy the consumers needs and wants.
The another important phrase which is positioning in which needs of consumers and
markets are identified by accessing position of competitors by accessing their strength and
weaknesses (Sahaf, 2019.).. In context of Airdri by using the four Ps of marketing they elaborate
each and every attribute in order to plan and execute in proper manner. Their new product that
aimed to launch in the market of South Africa which is consumer electronic majorly in 3D
Televisions as Airdri proficient in Hand dryers so by using their proficiency they aimed to
enlarge in respective market. The another factor is price, they using competitors pricing in which
pricing choose as per the fierce competitors. The another major attribute which is promotions by
using various tools such as advertising, leaflet, poster, radio, online marketing and many more
that are mixture of various tools.
So it can be said that for an organisation it is very crucial to segment market on various
bases in order to build commodity as per the consumers demand. In context of Airdri by
providing they enlarge their product in consumer electronics majorly in 3D Television that are
highly advance in nature.
Porter’s generic strategy
Porter's generic strategy helps to company to evaluate the way an organisation can
pursues competitive advantage across the chosen market scope (Taillon and Huhmann, 2019.).

In respective tool the differentiation, cost leadership and focus helps to attain desirable objectives
to enter into new market helps for enlarge business.
Cost leadership:
In respective business strategy, cost leadership helps to gain competitive advantage by
having lowest cost of operations in the industry. It can be only driven by organisational
efficiency, size and scale (Valos, Mavondo and Nyadzayo, 2019). In context of Airdri they
affix prices on basis of products and services with features associated with their products that
create distinctive effect from their competitors. By using respective strategy organisation can be
able to gain pioneer advantages as it helps to beat their competitors. By using ample of resources
with the help of bulk purchasing and effective usage of technology helps them to enlarge
business opportunities in positive manner.
Differentiation:
In respective strategy firms seeks towards to be unique by offering products that are rare
in nature along with some kind of dimensions that are valuable for the buyers. By merging one or
more attributes in their products that are consider one of very much important and positioned
uniquely in marketplace. In context of Airdri they on regular time period commence R&D for
understanding consumers preferential as well as choices for obtaining desirable results
positively. By differentiation positioning into market they become pioneer in market as they
aimed to commence their new product that is 3D Television sets. Respective organisation
specialise in design and manufacture of innovative hand dryers and elevator door detection and
speech annunciator system by using respective specialisation they aimed to enlarge business
opportunities in the south African market in consumer electronics goods.
Focus:
Focus strategy in which an organisation concentrate or focus on their resources while
entering into the narrow market or industry segment. Respective strategy is usually availed
where organisation acknowledge about their segment market properly. In context of
Airdri they aimed to expand in south Africa marketplace by creating 3D TV sets in consumer
electronics that are highly advance in nature. Hence using respective factor firm may become
competent for building goods or services based upon consumer choice as well as preferences by
delivering best values for the base of clients.

As per the recommendation of Ashanti solutions By using differentiation leadership the
business can be able to occupy the much larger market with aim to achieve competitive edge.
Respective plan of action includes opting one of best preferences through users from industry
and positioned business uniquely in market to fulfil criteria. Differentiation strategy helps to
organisation to offer higher prices for their unique attributes to gain competitive edge. In context
of Airdri as they are pioneer in the product of hand dryers by using their proficiency and brand
image they aimed to enlarge business opportunities in sector of consumer electronics that are
highly technologically advance in nature.
CONCLUSION
The presented report it has been concluded that strategic marketing is regarded as most
essential for organisation in order to reach huge number of people in effective and efficient
manner. Before expand in foreign marketplace it is crucial for them to acknowledge about maket
and its demand. In order to know about market and their demand , it is very crucial to analyse by
using different factors like PESTLE, SWOT and competitors analysis. These factors helps to
evaluate about political, social, environmental aspects of marketplace while running business to
gain maximum profits. Porter generic model helps to evaluate strategies such as cost,
differentiation and focus leadership strategy which should be adopted by business to perform in
best way. By using STP that helps to positioned oneself in market by focusing on specified
consumers and their preferences. Therefore, it is essential for business to use various kinds of
tools and techniques to plan and coordinate positively in marketplace.

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