Strategic Marketing for McLaren Automotive in French Market

This report discusses strategic marketing, PESTLE analysis, market entry modes, market segmentation and more for McLaren Automotive in French Market. It includes an executive summary, introduction, task, conclusion and references.

Strategic Marketing

Executive Summary
In order to make expansion of business possible strategic marketing is used which has
helped in making development of business organization possible. This is helpful in making new
product launched by an organization developed within market. These marketing is based upon
strategies formed by an organization in more effective manner. Also PESTLE has been used for
analysing about external factors impacting business growth. Then market segmentation should be
used for targeting customers within particular market. Then different modes of marketing entry
is covered with porter Generic model.

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
PESTLE Analysis........................................................................................................................4
Market Entry Modes...................................................................................................................8
Market Segmentation................................................................................................................10
Porter's Generic Strategy...........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic Marketing means the way within which a company differentiate itself from its
competitors by enhancing their strengths. This is done to administer better value to its customers
that its rivals. Thus is used by an organization for making plan for reaching audience through
satisfying needs and demand of customers. The concept helps in examine coordination over
firm's competency for wants of customers. The file is based upon Mc Learn Automotive which
an British automotive manufacturing company situated in Surrey, United Kingdom. The firm
plans for making its expansion done within “French Market” through its new car name “Econ
Space”. The reason for selecting this country increases demand of electric hybrid cats and
making economic condition more favourable. Further, report is focused upon macro environment
analysis which makes threats and opportunities identified for an organization. Also scenario has
been provided for marketing consultant of Astic Marketing Solutions and in this suggestions to
McLaren Automotive makes business expansion possible in new market.
TASK
PESTLE Analysis
This is an analytic tool which has been used within an organization to provide assess
upon macro environment factors making influence created upon operations and activities of
business (De Villa, Rajwani and Lawton, 2021). In relation to McLaren Automotive it is an
important framework making assistance created in relation to threats and opportunities existing
within market place. The analysis has been explained in relation to business surrounding in
France as follows:
Political factors:
Political factors these are those factors which is based upon tax policies, trade restrictions
and government policies.
Opportunity: In France, political stability exists which is one of the biggest advantage
which helps McLaren in reducing political barriers like tax issues and trade problems. It helps in
making establishment possible within new market.
Threat: Terrorism is biggest threat for an organization as it hampers business activities
and operations of McLaren Automotive in negative way. In order to overcome this threat

McLaren Automotive should design their outset in such manner that reduces such attacks
vulnerability.
Solution: In order to deal with these threats McLaren Automotive should make sure that
safety within the workforce is developed in order to run day to day activities for making there
operations successful. In order to lower the risk of such attacks proper security structure should
be formed that reduces vulnerability of attack. This can be achieved through selecting non-brittle
facade materials, providing adequate stand-off and good space planning.
Economic factor:
In this economic factors like interest rate, employment rate, level of inflation and deflation are
included.
Opportunities: France is the 7th largest economy of world and has been growing at the
rate of 1.8% which can be capitalized by the organization through venturing economy(GDP
growth, 2018). In order to make expansion of business operations and activities France is the
most suitable country for McLaren Automotive as it has high growth rate.
Threat: Inflation rate of nation i.e. 2% which is a threat for company as it affects the
bargaining power of suppliers that makes it difficult for business to avail inputs at the same
prices which indirectly increasing cost of production.
Solution: To overcome this threat, company requires to maintain good relationship with
its suppliers so that they can easily get adequate amount of raw materials which are used in
manufacturing of car. Firm also requires reducing its production cost that is incurred in
manufacturing of Hybrid car named as 'EcoSpeed'.
Technological factor:
Technological factors are based upon development of new technologies which has been
taking place on daily basis. Also these factors has been providing strong ad advance technology
to be used as opportunity for business expansion (Foxall, 2020).
Opportunity: The economy of country is mainly based upon technology oriented firms
that becomes opportunity for McLaren Automotive for establishing itself in France market. This
makes manufacturing and production capacity increase for the car by focusing on Accelerometer
3 axis, Sensor Node SN-320, Display Module PCU-8D etc.
Threat: Rapid changes within the technology has become threat as it decreases product
life and impacts quality of product influencing sales of McLaren Automotive.

Solution: To overcome threat of the company needs is required to be updated while
emerging technology so they do not become outdated. It ensures that new and innovative
technology is used within business operations.
Environmental factor:
These factors are based upon ecological and environmental development which is based
upon increasing awareness in relation to potential influence of climate change affecting
operations and products which are offered.
Opportunity: Approximately 31.3% of land in France is enclosed with forest and it has
isolated ministry for environment (France - Forest area, 2018). This comes out as a biggest
opportunity for McLaren Automotive as it deals in manufacturing of high technology hybrid cars
and which indicates that company will significantly contributes in protecting and preserving
environment of country.
Threat: Being an industrial economy, France faces issue of air pollution which is a threat
for company as if McLaren Automotive use such processes that may pollute air or harm
atmosphere then it will put negative impact on its image.
Solution: In order top overcome the threat an company should make sure that all policies
in relation to environment law should be followed for making an organization become good
example of environment protection.
Legal Factor:
It includes legislation, regulation and laws formulated by Government that will impact
the way in which business operates. Written contracts are obligatory to all levels and grades and
it must be in French language(Gubik and Karajz, 2019).
Opportunity: If McLaren automotive follows all regulations and legislation of France
then they have opportunity to grow fast and better manner. In this subsidiary is provided by
government and to private organizations
Threat: The major threat is of legal issues which can arise when legislation has not been
followed. Also should get patent over car to be attained making car's design and technology
protected from copyright problem for an organization like McLaren Automotive .
Solution: To overcome the situation McLaren is required to make tie up with other
automotive firm of France dealing in producing spare parts and importing them. This saves form
paying high tax.

The above mentioned factors are related to macro environment of an organization which
provides opportunities for combating threats existing within particular market of an country like
France. These factors are required to be followed by management of McLaren automotive in
order to consider all factors which impacts policy formulation and makes decision making
improved. Also it makes assistance in gaining competitive edge upon rivals of McLaren existing
within French Market.
Market Entry Modes
Market Entry Modes has been define as the way within which new goods and services are
offered within new market. In this various kinds of entry modes are available through which
McLaren Automotive will be able to expand itself with business operations present in another
country. The degree of risk is associated with each entry mode required to be taken into account
by an business organization. Evaluating different market entry strategy it is necessary for firm to
select most appropriate one. McLaren Automotive is sports car manufacturer that intents for
entering into France market that has been newly developed in relation to hybrid car. So, it
becomes necessary to understand market entry mode in relation over French market. This has
been explained as follows:
Mergers & Acquisitions:
These are those entry modes within which ownership of business is concern and their
operating unit has been consolidated over transfer to another entity. It has been allowing the
company to grow and change its competitive position as per nature of business. In relation to
legal view point, merger has been defined legal consolidation two entities into one, while taking
acquisitions take place when one takes ownership of the entity's equity interests, stock or assets.
It is entry mode can be considered by McLaren Automotive for expanding business activities and
operations within France market(Hahn and Kühnen, 2018). One of the major advantage of using
the entry mode makes creation synergy which enables business entity for expanding value of
efficiencies and decreasing risk by utilizing innovate financial risk methods. Mergers and
acquisition of entry provides competitive edge for an organization France market and enables to
gain high profits. Also from this one main disadvantage of entry mode is successful integration
of workforce merged companies and it becomes difficult for making cope up with new
management, culture, employees and hindering capacity for performing better.
Strategic Alliance:

These are cooperative arrangement that takes place within distinct organization. This is
situation in which two over organization with companies combining efforts through an aim of
attaining particular strategic goal. Organization makes requiring possessing with similar goals for
entering into strategic alliance without any kind of disruptions. It has been formed with
customers, suppliers and competitors for a specific time period. This makes mode of market
entry, organization making particular purpose which work as separate entity. Major advantage of
selecting this entry mode is shared risk that is allowed through involving entities offset with
market manifestation. In this shared resources, technical and knowledge leads over impact which
is more valuable than isolated resources making cost reduction possible over non-profit
resources.
For instance, McLaren Automotive enter in market of France by strategic alliance with
Peugeot. This makes benefits provided over decreased administrative cost, improving agility and
reduction in risk is done. Shared resources, brand name and technology helping firm in gaining
competitive edge within market and make economic benefits to be achieved with better returns.
Also, at times conflicts might arise between partners that leads upon disruption through operating
activities. Further, disadvantage is that which creates competitors over partner alliance making
profit attained partnership enabling same segment.
Franchising:
Franchising has been refereed as arrangement in which grant is given by one party to
another party utilized its trade agreements that has been granted is given by an party with another
party that makes trade utilization possible in the name of trademark with various other process
and system of business for marking goods and services as per specification. This is simple entry
mode which makes business expansion possible over operations and product distribution through
licensing relationship(Herrera and Martens, 2016). In this advantages has been associated with
market entry mode as success rate. Through expansing business France market through entry
mode as rate of success rate in Franchise is high than start-up business. Through making
expansion of business in France Market with the entry mode, McLaren Automotive gets benefits
of cost effectiveness with expansion as firms requires to raise capital in order to grow business.
The additional source of revenue for an organization in the form of royalties paid by Franchise.
Some disadvantages associated with entry mode which make profit and proportion of sales are

shared with franchisor. Apart from this, rigid nature of franchise might restrict the ability to
implement changes within business in order to respond market and make the business grow.
Recommended market entry mode for McLaren Automotive in France:
Through making different modes for entering into new market through strategic alliance
has to be considered as the most appropriate approach for McLaren automotive to expand
business within French market. For making development and launching with its new Hybrid high
end technology the adequate amount of resources is required to be used. Through strategic
alliance with other organizations adequate amount of resource is required. After performing
strategic alliance through other similar company its capacity, skills and various resources are
increased making advantage to be provided with advantage of a company in terms of developing
high quality of car. As the organization in new market it is required over making detail
information related to likes and preferences over targetted customers, existing factors affecting
business operations. If McLaren Automotive is willing upon making expansion possible through
strategic alliance it is easy for them to attain success within France market. This increases
resources well known firm of country will make easier to sustain their position in market,
through helping partner making collaboration possible upon opportunities in relation ti
development of product “Econ Space”.
Market Segmentation
Market segmentation has been identifying the process which makes company divide
market into small homogeneous sub divisions(McDonald and Dunbar, 2018). The concept that is
taken into consideration through business organization which makes assistance provided in
relation to market campaign accordingly. In segmentation various kinds of aspects has been
covered which are psycho graphic, demographic, behavioural and geographical division. Brief
description of these market segmentation approaches is defined below:
Demographic Segmentation:
Under demographic segmentation, market is dividing on the basis of age, occupation,
income etc. This type of market division is seen in every sector like beauty products, auto
mobiles, apparels etc. and is set on the premise that buying behaviour of customers is highly
affected by their demographics. In auto-mobile sector, this approach is employed by businesses
like Toyota, Nissan, Volkswagen etc. in order to effectively cater needs of people and satisfy

them by providing high quality cars for the premium buyers. Companies mainly emphasize on
fulfilling requirements of those people who people who are speed enthusiast and possess
exceptional disposable income.
Behavioural Segmentation:
The main aspect upon which segmentation is based upon in relation to buying behaviour
as well as decision making of consumer reflected through loyalty, benefits and various other
things. Before making expansion possible with the operations in new market organization
requires to make analysis done of customer's behaviour. The approach is mainly based upon
mobile phone and segments due to different choices in relation to smartphones. They make
purchase done of phone accordingly with its features and storage capacity. For example:
Samsung has been providing range of android phones which is main part of population can think
to buy as they are available with budget friendly prices. In case of apple only luxury class buy
the phones as they are expensive in nature.
Psycho-graphic Segmentation:
This market segmentation is done in relation to attitude, beliefs and values of people.
Under it mind set of people is required tu be assess properly for making products which can be
delivered accordingly. Lifestyle and personality are two important factors influencing habits and
buying decision of an individual to great extend. The segmentation makes approach utilized
through companies which deals in fashion brand and luxurious goods. It can be understood with
an example that is, A person having luxurious lifestyle and value of people. In this mind set of
people is required for making assess properly done products which can be delivered accordingly.
Geographic segmentation:
Population density, location upon variables making geographic segmentation is done.
Market is divided into areas and countries, regions and cities. The approach makes common
utilization by large business organization that has been serving upon customers base of their
geographical location. This is the easiest way which makes market divided as per customers
location. It can be understood through example that is some region, might be scarcity of water
increasing demand of bottled water and demand is very less(Proctor, 2014).

Based over above mentioned segmentation approaches, demographic segmentation is
considered to be appropriate strategy for McLaren Automotive launching its hybrid car in market
of France. Income, age and occupation that is basis of firm divided its targeted audiences. This
helps in determining requirements of target market and designing promotional campaigns
accordingly so as to maximize demands and enhance sales as well as profitability of an
organization. For super hybrid car such as “Econ Space” business and service class people of
nation is targetted primarily due to buying power possessed by them. The main reason behind
demographic segmentation on basis of occupation and income that makes firm target as per
income level.
Target Market:
Target market within the firm business and services of people of country who belong to
premium segment and carry passion for driving super cars. The regular customer for this
organization can be considered to be undertaken in the target market as well.
Porter's Generic Strategy
Porter's Generic Strategies is used for developing competitive edge which is selected for
the scope of market. This is essential strategic marketing which is defined in a way that make
organization differentiate effectively from its rivals by capitalizing on current potential strength.
This is used by organization for developing plan making goals and objectives achieved by
increasing productivity and profitability of the business(Tyler and Jackson, 2017). Strategic
Marketing concept makes examination with coordination of competence which makes customers
needs satisfied in effective manner. McLaren is an known organization in UK and plans for
making expansion done within market of France with its new car”Econ Space”. Various
strategies could be opting by administration to enter into new market. Porter generic strategies
are the approaches that helps McLaren Automotive in gaining competitive advantage in market.
Strategies includes in this are:
Cost leadership strategy:
Cost leadership strategy has been used for reducing cost and increases efficiency within
business. This basically related with offering goods for lowest price than competitors. It is based
upon utilizing offering of goods for lowest price than its competitors. The approach has helped in
making competitive edge attain by cost leadership in market. Firm should possess high market

share that is making economic of scale. McLaren automotive having good relation with
suppliers and reducing production cost of car.
Differentiation Strategy:
This approach aims for developing various target segments and Firm opt in order to
provide high value to customers so that string person can be attained and maintained in market.
Product positioning in consumer's mind set assisting business attaining profitability. In order to
make product distinct from others McLaren Automotive incorporate innovative feature like
comfortable seats, navigator, high power air conditioner etc. in its hybrid car so that which will
assistive in maximizing profits(West, Ford and Ibrahim, 2016).
Differentiation Strategy:
This strategy emphasizes has been targeting various segments which helps in developing
strong customers base within customers. It is making distinct product to be maintained and stay
ahead of competition.
The most appropriate approach to be adopted by McLaren Automotive is Differentiation
Strategy which helps in improving business and service class people for selling their hybrid
cars. In this target customers for the product of business and service selling hybrid cars. This
makes needs and demands of customer fulfilled in effective manner.
CONCLUSION
From the above discussion it has been concluded that gaining highly competitive
advantage within market uses concept of strategic marketing which effectively helps them in
gaining customers and staying ahead of customers. There are different external factors affecting
all over operation and functioning of company with positive and negative impact. The forces
makes determination by conducting PESTLE analysis and makes competitive advantage over
other rivals. In the end various kinds of entry models discussed through firm makes expansion of
business operation entering new market.

REFERENCES
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Online
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