Strategic Marketing: PESTEL Analysis, Market-Entry Modes, Target Market, and Competitive Advantage

STRATEGIC
MARKETING
1

Table Of Contents
INTRODUCTION.........................................................................................3
Explain about the PESTEL analysis along with the opportunities and threats faced by the
client for a particular product or service and the country.............................................3
What are the modes of market-entry that is best for the client. Recommend about the one
market-entry mode which can be justifiable.........................................................5
Using the concept of segmentation and targeting evaluate about the potential target market of
the client in critical manner........................................................................... .6
With the help of Porter’s generic strategy, explain about how the client can gain competitive
advantage ..................................................................................................8
CONCLUSION..........................................................................................9
REFERENCES..........................................................................................10
2

INTRODUCTION
Strategic marketing refers to that method through which an organisation can
differentiate itself from the competition by focusing on its strengths to provide better service
and value to its customers. The goal of strategic marketing is that to make the most of the
organisation’s positive differentiation over its competition through the consumer’s
perspective. Strategic marketing is somewhere different from other types of marketing. In this
report, the analysis has been done on the particular product which is going to launch in the
UK market. The PESTEL analysis has been done on it while identifying the opportunities and
threats for the product in that particular market. (Li, L. and Qian, G., 2018). Also the research
has been done on the modes of market-entry and the potential target market. The analysis has
been done on the porter’s generic strategy while gaining competitive advantage. The chosen
organisation is Flipkart. Flipkart is an Indian e-commerce company which is headquartered in
Bangalore, Karnataka, India and which is incorporated in Singapore as a private limited
company. The company has focused themselves initially on the online book sales before
expanding into other product categories. Flipkart is dominant in the category of apparel
segment which is supported by the acquisition of Myntra.
1. Explain about the PESTEL analysis along with the opportunities and threats faced by the
client for a particular product or service and the country
PESTEL analysis is a framework or tool which is used for analysing the macro
environmental factors that may have a profound impact on an organisation’s performance.
This tool is useful especially in that case when starting a new business or entering a new
foreign market. PESTEL is an acronym which stands for Political, Economic, Social,
Technological, Environmental and Legal factors. Political factors are those factors which
depicts that to what extent the government intervenes in the economy or a certain industry.
The government influences include government policy, political stability, corruption, foreign
trade policy, tax policy, labour law. (Karama, F. B. and Linge, K., 2019). These all factors
need to be taken into account while accessing the attractiveness of a potential market.
Economic factors are determinants of a certain economy’s performance. The economic
factors which include are economic growth, exchange rates, inflation rates, interest rates.
These factors may have a direct or indirect impact on the company, since it affects the
purchasing power of consumers. Social factors includes the dimension of the general
environment which represents the demographic characteristics, norms, customs and values of
3

the population within which the organisation operates. When targeting certain customers then
these factors are important for marketers. Technological factors refers to the technology
incentives, the level of innovation, automation, research and development activity and the
amount of technological awareness that a market possess. Under the point of environmental
factor,if some climatic conditions have been changed then it affects the supp1y of the
products and items that has been ordered by the customers. (Chang, C. T. and Cheng, Z. H.,
2015). It impacts on the availability and stability of products supply. Under the legal factor,
it includes specific laws such as discrimination laws, antitrust laws, employment laws,
consumer protection laws, copyright and patent laws and health and safety laws. It is
important that company needs to know what is right and what is not right in terms of legal
matter for doing the business in a successful and ethical manner. Flipkart has its opportunity
in the UK by shipping or exporting their desi Indian products through online stores in the
UK. As the company can plan for some particular years so that it can achieve good results out
of it(Farris, P. W., 2016). The unique nature about the UK market is the management of the
company and a perfect illustration of the think global, act local. There are some reasons due
to which Flipkart will get success in UK market. First reason is that the Indian products
which will attract the customers because of their desi look, presentation and ethnicity in every
kind of their products. The second element is the consistent proposition which appeals to the
every age group of customers. There can be threats also related when entering into a new
foreign market. Every country has its different kind of policies. Then there will be threat that
government can implement the policy regarding the ban on some particular products and
items. The competition in the market is very high, the market is more attractive and intensity
of competition is high.
When the company enters into the new market segments the company have to compete with
the market leaders. Threat can be in the terms of the higher tax rates which can squeeze out
the profit margins. Slow growth in the consistency of selling particular products to the
country. (Mu, J., 2015).These threats not only creates problem in establishing themselves in
the new market or UK market but also a test of patience for the company in terms of getting
support from the new country. While entering into the new market it is important to
understand the political scenario of the country. If there is any political issue is going on in
the country then there will be less chances of getting full success in terms of the satisfaction.
And also need to consider about the economic factor if the country is not performing good in
terms of financial area and the growth of the company.
4