Strategic Marketing Process - PDF

STRATEGIC
MARKETING

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
ORGANISATIONAL OVERVIEW................................................................................................2
Company Overview....................................................................................................................2
Product Overview........................................................................................................................2
ENVIRONMENTAL ANALYSIS..................................................................................................2
PESTLE Analysis........................................................................................................................2
MARKET ENTRY OPTIONS........................................................................................................6
Franchising..................................................................................................................................7
Licensing.....................................................................................................................................7
Strategic Alliance........................................................................................................................8
MARKET SEGMENTATION........................................................................................................8
Segmentation...............................................................................................................................8
Targeting.....................................................................................................................................9
Positioning...................................................................................................................................9
PORTER'S GENERIC STRATEGIES............................................................................................9
Cost Leadership...........................................................................................................................9
Differentiation...........................................................................................................................10
Focus.........................................................................................................................................10
Critical Evaluation....................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

EXECUTIVE SUMMARY
Strategic marketing is a way through which organisations determine a pathway to gain
effective competitive advantage in the market. For this purpose, Lynk & Co. is being chosen
which is a Chinese manufacturer aiming at entering the UK market with its new offering,
Roadster X.
The report required an effective environmental analysis for which, PESTLE Analysis was
used which provides a framework to assess external factors of business environment.
Another agenda of the report was related to determine entry modes essential for the firm
to enter the UK market. For this purpose, Licensing, Franchising and Strategic Alliance were
assessed effectively.
The report also required to determine the target market to attain which, STP approach
was used to derive segments and target effective potential customers.
Lastly, the report needed strategies for the firm to enhance its competitive advantage. To
attain this, Porter's Generic Strategies were used which were Cost Leadership, Focus and
Differentiation strategies.
INTRODUCTION
Strategic Marketing is an effective process through which organisations tend to plan,
develop as well as implement several activities which helps an organisation in effectively
gaining a competitive edge in the market. Furthermore, it provides a company an effective
pathway through which the firm could effectively enhance their business operations and enhance
their capabilities in achieving their business objectives (Lee and et. al. 2013). The report below is
based on Lynk & Co., which is a Chinese Car Manufacturing organisation, which is currently
aiming at entering the UK market with new innovative services in its vehicles. It covers a
detailed analysis of the external environment of the UK which would be having an impact on the
company. Further, the report includes critical analysis of three market entry-modes which could
be effective for the firm to enter the UK market. It also covers segmentation of market as well as
generic strategies for the firm to gain a competitive advantage.
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ORGANISATIONAL OVERVIEW
Company Overview
Lynk & Co is an automotive organisation which was found in 2016 and is owned by
Zhejiang Geely Holding Group. The firm offers new age vehicles, specially designed for a
sustainable performance and the firm stresses effectively on making its products in a
technologically advanced manner. Furthermore, the organisation makes products which are low
on pricing and ensure maximum comfort to customers. Currently, the firm is planning to bring a
new product within the UK market to capture an effective market share (Najev Čačija, 2013).
Product Overview
Lynk & Co would be manufacturing a new vehicle, by the name of “Roadster X”, which
would be a technologically advanced SUV incorporated with high end digital and comfort
technologies. However, the firm would be introducing new and innovative features with this
vehicles for its customers within the UK. The first innovative feature which Roadster X would be
incorporating is Vehicle-To-Vehicle Communication. This feature would enhance the safety of
passengers within the car. Any spontaneous changes in speed or direction of other vehicles
would be sensed by the Autonomous infrastructure of the car and it would accordingly assist the
driver to act accordingly. Moreover, Artificial Intelligence is also utilised in its design to make it
fully autonomous, which would enable the car to have a 360- degree environmental analysis
using an array of sensors, making it fully capable for Driverless movements (Proctor, T., 2014).
ENVIRONMENTAL ANALYSIS
PESTLE Analysis
It is very important for Lynk & Co to analyse the macro environment of the UK, in order
to analyse the prominent factors within the external environment which could possibly have an
impact on the company. The reason for the same is that it would allow the organisation to
analyse effective opportunities for the organisation which is present within the external
environment of the country. For this, PESTLE Analysis is used, which is an effective framework
for the organisation in determining external pointers influencing its operations and strategies
within the UK (Kellezi, 2014). This analysis is briefly performed below:
External factors Opportunities Threats Solutions
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Political These factors are the
ones which are related
to government
regulations and
political framework
which could have a
major impact on the
company and its new
product within the new
market (Tirunillai and
Tellis, 2014). In
context with the UK,
currently, the whole
country's political
scenario has taken a
drastic shift after the
Brexit referendum in
2016. It had a major
impact on the political
ties of UK with other
countries. After its
separation from the
European Union (EU),
the country is quite
independent in terms of
formulating its own ties
with other nations.
With respect to China,
UK has had effective
ties with the country
However, currently
within the UK, the
political regulations
prevailing within
the country are not
certain and the
country is
experiencing a lot
of political
uncertainty. This
could be a threat for
the company.
However, to effectively
enhance opportunities,
the firm could keep its
internal policies flexible
for time being and in
accordance with the
changing policies.
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lately. Moreover, after
Brexit, a wider scope
came into existence the
UK would be forming
its own trade deals with
China. Moreover, a
Joint Trade and
Investment Review
was formulated, which
is different from that of
general trade
agreements and under
which, various deals
were signed worth £9
Billion (Brexit : What’s
Next for the China-UK
Relationship?, 2019).
Economical These factors are based
upon the economic
performance of a
nation. All the factors
associated with the
economy such as
inflation rate, FDI,
interest rate, etc., are
covered within these
factors. It is very
important for Lynk &
Co to effectively
analyse these factors
which would allow the
However, with the
impact of Brexit,
inflation rate has
increased by a
substantial rate.
Moreover, with the
impact of Brexit,
the nation also
experienced a
downfall in the
valuation of Pound,
as a result to which,
it could be a
struggle for the firm
However, to convert the
same as its opportunity,
the firm must use
discount pricing to
create a wider customer
base within the UK.
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firm to enhance
opportunities related to
its investment in the
UK markets. In context
with the company, UK
is one of the top
recipient of Chinese
Foreign Direct
Investment, worth €23
Billion in 2016
(Brexit : What’s Next
for the China-UK
Relationship?, 2019).
This could be an
opportunity for the firm
to invest in UK as the
consumer market of the
firm could be
effectively captured
with such effective
investment trail.
Reason for the same is
because such long
economic ties within
these two nations
would bring
advantages for the firm
to invest in UK market.
Another effective
factor which could be
an opportunity for
to sell its offerings
at a better price.
This is because the
firm would be
threatened to lower
down its price in
order to encourage
people to buy the
cars..
5

Lynk & Co is that the
UK is quite effective in
providing ease to
foreign companies in
operating within the
country in respect to
establish their business
organisation and
perform sales and
marketing activities
easily. This could be a
major advantage for the
firm in case its
planning to reach out
the customers of the
UK with its Roadster X
(Todor, 2014). The
firm could utilise
marketing strategies
like social media
marketing to attract
customers and could
establish their outlets at
prominent locations
easily.
Social These factors
undertake all the
prevailing social trends
into consideration. All
the social elements
which are dominant
As for the customer
market within the
UK, people within
the UK, especially
millennials are
effectively shifting
Thus, the company must
communicate with
customers regarding its
effective and affordable
pricing and innovative
features which could
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within the UK market
and could likely effect
Lynk & Co., are
covered in these
factors. There is a high
demand among
customers for vehicles
which could provide
them utmost comfort
and safety which would
convert the threat of
public transport into
opportunity. This is an
opportunity for Lynk &
Co. as the vehicles
which the firm would
be selling within the
country would be
equipped with effective
features which would
provide them with both
comfort as well as
safety, within short as
well as long trips.
Moreover, with
provision of vehicles
which are according to
the prevailing trends
would help the
company in positioning
itself in a better manner
their interests
towards commuting
from public
transportation rather
than owning private
vehicles.
Furthermore, they
are preferring cab
hiring services for
longer trips across
cities. This could be
a threat as well as a
severe challenge for
Lynk & Co to sell
Roadster X within
the UK. Reason for
the same is that
people seek
convenience which
they find in public
transport rather than
private (West, Ford,
and Ibrahim, 2015).
develop their interest
effectively towards this
offering.
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within the UK (Wilson
and Gilligan, 2012).
Technological These factors
undertake all the
technological elements
which have a huge
impact on companies
and their offerings in
different prevailing
markets and distinct
conditions. The market
of the United Kingdom
is quite advanced in
terms of security and
with ongoing
technological
development,
automotive companies
are under a constant
pressure to effectively
produce vehicles which
are in accordance with
the current market
conditions. As per
these factors, Roadster
X has several
innovative and
technologically
advanced features
inbuilt within its
infrastructure, which
However, one
prominent threat
present in this
factor is the failing
of AI and high
dependency on
automation, which
has previously
failed in case of
TESLA.
In order to convert this
into an opportunity, the
firm must appropriately
check and monitor its
effectiveness and update
technology to serve
better.
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creates ample
advantage for the
company to compete in
technologically
advanced market of the
United Kingdom with
using AI and
Automation
technology.
Furthermore,
inclination of its
offerings towards such
fine use of Automation
technology and
Artificial Intelligence
would allow the
organisation in
sustaining
appropriately within
the country and would
capture an effective
marketing share.
Legal These factors involve
regulations and laws
which are very
important for
companies to comply
with in order to ensure
an effective legal
position and ethical
framework within their
However, there is a
threat currently
about changing of
the legal structure,
which might cause
ineffectiveness of
the firm in case of
its compliance with
these laws.
This requires the firm to
stay flexible and
updated in relation to
ensure effectiveness in
the same.
9

organisations. Within
the UK, there are
several laws which are
very important for
businesses within the
automotive industry to
follow. For instance,
Climate Change Act,
2008, is one of the
most crucial
legislations which
ensures that the
vehicles are designed
in such a manner,
which contributes to
environmental
protection. This is an
appropriate opportunity
for Lynk & Co. as
Roadster X is designed
in an effective manner
in context with
environment, as the car
is fully electrical,
which reduces the use
of fuel. Such
compliance will be an
opportunity for the firm
over its competitors as
communities would
encourage people to
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opt for electrical
vehicles like Roadster
X. Another legislative
factor which is
influencing the
automotive industry
within the UK is that
all the new cars
manufactured within
the UK are required to
have speed limiters in
order to ensure safety
of drivers as well as
passengers of vehicles.
This regulation is likely
to come in full effect
by 2022 (All new UK
cars to have speed
limiters by 2022 under
EU plans, 2019). This
is a crucial opportunity
for the organisation to
ensure such features in
their vehicles in future
which gives emphasis
to speed and promote
safety, in order to
ensure proper
government support for
their vehicles.
Environmental These factors are However, with This needs the company
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associated with the
climate and
environmental issues
which must be
considered by
automotive companies.
The UK government
has been quite
persistent in ensuring
environmental
preservation and this
could be an effective
opportunity for Lynk &
Co. The firm's
Roadster X is electrical
and with use of
Artificial Intelligence,
the firm would be
working upon reducing
the carbon dioxide
emissions. This would
assist the organisation
in enhancing
preference of its
product over other
companies in the
market and would also
gain effective support
of communities.
issues like global
warming in the rise,
several
communities are
protesting against
private vehicles
which is a threat for
the firm.
to provide more features
which could benefit the
environment and use
processes like recycling
and reusing to ensure
support of such
communities.
12

MARKET ENTRY OPTIONS
After analysis of the external environment, Lynk & Co. must work towards analysing
different entry options through which the firm would be entering within the UK market and sell
its offerings to customers of the country. For doing so, there are several market entry options
which are discussed below:
Criteria Franchising Licensing Strategic Alliance
Advantage This is an effective
market entry
technique in which a
business organisation
effectively acquires
distribution from
several dealers in
different
geographical areas. It
enables a franchisor
to create effective
business relationships
from other business
organisations or
franchisees, to
conduct one's
company for them. In
case Lynk & Co.
implements the same,
it would license its
procedures,
processes, know-
how, intellectual
This entry mode
refers to the
procedure in which
an organisation
transfer right to
manufacture or
distribute offerings to
another company of a
foreign market.
Furthermore, in this
process, the other
companies could also
be provided the right
to utilise expertise
like trademarks,
patents, technology as
well as business
procedures. In case
Lynk & Co. adopts
this entry mode,
licensee firm would
be paying the
organisation a pre set
This entry
mode refers to
establishment of a
corporate relationship
between tow or more
organisations which
provide each firm
effective scope of
achieving business
objectives which
couldn't be achieved
together. Both of the
members within
alliance could
effectively maintain
their separate
independent status
however, could merge
their resources and
expertise to achieve
the goals.
In case Lynk &
Co. adopts this method
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property and rights to
sell its new offering
Roadster X within the
UK.
Adopting this
method to enter the
UK market has
several advantages
which could be
experienced by the
firm. For instance, all
the research as well
as funding for
company outlets will
be handled by the
franchisees, which
limits the firm to
invest its own capital
and additional
funding for running
up the business.
Another effective
advantage is related
to the flexibility
which this option
could provide to
Lynk & Co. This is
because, in this
option, organisation
could customise the
franchise agreement
percentage of sales
in exchange for rights
which was provided
to the franchisee.
There are
several probable
advantages for the
organisation in case it
chooses Licensing as
its entry option for its
Roadster X. The first
effective factor is that
through adoption of
this technique, the
company would
appropriately set
itself up within the
UK market and
would surpass the
tariff barriers
effectively as well.
Moreover, it would
also lower down the
risk of the
organisation related
to manufacturing.
to enter the UK, it
would help its
Roadster X to
effectively enhance its
scope and business to
achieve its objectives
in due time. Moreover,
strategically
conducting business
with local organisation
would allow the firm
to experience a better
customer base.
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according to their
short and long term
business objectives,
which would further
develop convenience
for the organisation.
Disadvantage However, there are
several disadvantages
too which are
associated with this
option. For instance,
Lynk & Co. would
have very less control
over the operations of
the franchisees as
those organisations
would be
independent in terms
of selling up the
vehicles. This might
enhance the scope of
disagreement for the
company. Moreover,
the initial investment
of development of the
business within the
UK would also be
disadvantageous for
the organisation.
However, there are
several disadvantages
of this method too.
For instance, there
might be a constant
threat for Lynk & Co.
that their Licensees
might turn into their
competitors and there
is also a risk
associated with loss
in intellectual
property.
However, doing so
might result in certain
disadvantages, for
instance, there could
be more risk present in
ownership claims
within the company.
Furthermore, with
different
organisations, there
might be conflict in
terms of cultures
which might affect
individual
performance within
the company
(Hollebeek, Conduit
and Brodie, 2016).
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Out of all these options, the firm must choose Franchising as an entry mode to the UK.
The reason for the same is that the firm could expand effectively within the country and cover a
wider geographical area within stipulated time, something which the other options might not
effectively provide. Moreover, the firm would also be free from any marketing or sales attempt
as the franchisees be in charge for the same.
MARKET SEGMENTATION
It is very crucial for the organisation to select its target market on which, the firm would
be directing its marketing strategies. To attain the same an determine its potential customers, the
firm must perform STP analysis which is a framework to identify the target consumers of
offerings of an organisation (Finch, Nadeau, and O’Reilly, 2013). The same is discussed below:
Segmentation
This step divides the market into different groups and segregates customers based on
several characteristics mentioned below: Geographical: This divides the overall market on the basis of their geographical location.
In context with Roadster X, this segment of the market would focus on urban localities of
the UK . Demographical: This segment divides the whole market on basis of demographics like
age, occupation, income, etc. Lynk & Co. would be targetting general customers of the
UK who are between ages 18-65, with income level more then £1,000 and preferably
belonging to corporate sector.
 Behavioural: It divides the market on the basis of behavioural characteristics of the
customers. The firm would be targeting customers who are inclined towards driving cars
and are habitual of using different and latest technologies.
Targeting
After segmentation, the next step requires the firm to effectively target customers
amongst the segments presented above. The firm would be targeting general customers of UK,
who live in urban areas of the country, aged between 18-65 and belonging to corporate sector.
Moreover, it would be targeting those customers who are inclined towards driving and using
latest technology (Felzensztein, Brodt and Gimmon, 2014).
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Positioning
The firm would position itself in both online and offline platforms. It would be
incorporating its own showrooms for display of cars and would provide test drives to customers.
Further, it would also have its website for its UK customers to gain knowledge about Roadster X
online.
PORTER'S GENERIC STRATEGIES
In case an organisation enters a new market, it requires the firm to adopt methods in
relation to gain a competitive advantage over other firms within the market. For this, Porter's
Generic Strategies are used which are mentioned below:
Cost Leadership Differentiation
In this strategy, the firm reduces the cost of
their offerings in order to capture wider
market (Felix, Rauschnabel and Hinsch
2017). There are two ways through which the
firm could achieve the same. It could either
keep an average pricing for Roadster X, or
could keep its price lower than the
competitors. In this, the firm must be price-
sensitive in order to capture the market.
In this strategy, the firm would be
differentiating its offering from that of its
competitors. This requires Lynk & Co. to
introduce innovative features continuously
which differentiate the same from other
automotive organisations like General Motors
and TESLA. The firm could achieve so
through modifying the technology used in the
cars as well as more effective features
focused on safety and quality (Barker and et.
al. 2012).
Cost Focus Focused Differentiation
Within this strategy, the firm focuses
primarily on either on being cost effective or
differentiation. Doing so would contract the
horizon of the company as it would be
obtaining a competitive edge within the
market by either cost leadership only or only
However, focusing on differentiation would
help the firm in effectively enhancing its
competitive advantages through producing
different offerings than its competitors.
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from differentiating Roadster X.
Critical Evaluation
Out of all the strategies above, the firm must obtain Differentiation as its strategy for
Roadster X. This is because external forces of the firm are already providing the firm a pathway
of keeping an average pricing of its cars, which is quite similar to that of its competitors.
Reducing the price more could be compromising on the basis of growth. However,
differentiating the car models continuously would allow the firm to deliver high quality vehicles
to customers and would be easier for them to obtain high market share within the UK as
customers would get new and innovative features in effective pricing, which is not offered in
other two strategies (Aghazadeh, 2015).
CONCLUSION
Thus, it is concluded from the above report that strategic marketing is very crucial for a
business organisation in case the firm wants to enter a new market with new offerings. PESTLE
analysis is necessary for the firm to order to effectively analyse the overall external market.
Furthermore, it is important that several entry modes are also analysed to choose the best
alternative to enter a new market. In addition, Market segmentation provides the firm ease in
determining its target market. Lastly, Porter's Generic Strategy helps a firm in choosing best
strategy for gaining a competitive edge within the marketplace.
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