Strategic Marketing for Aston Martin in Romania

This report discusses the strategic marketing plan for Aston Martin to expand their business in Romania and launch their new electric car. It includes PESTLE analysis, different modes of market entry, market segmentation, and targeting.

Strategic Marketing
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EXECUTIVE SUMMARY
Current report is based on the strategic marketing that refers to the important activity in
which company can develop their unique and famous brand image at market place that is totally
differentiate from its competitors. In this, Aston Martin wants to expand their business in new
market i.e. Romania to introduce their new electric car. The main focus of this company is to
serve products which is completely eco-friendly and also protect environment from any kind of
harm. Project includes various models and analysis that help company in evaluating the external
environment. With the assistance of this, organization can easily enter into new market and tries
to accomplished its competitive image by serving quality services to its customers as per their
needs and wants. By this company can easily capture larger market share from its competitors at
new market place.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
PESTLE Analysis of Aston Martin.............................................................................................1
Different modes of market entry.................................................................................................3
Concepts of market segmentation and targeting critically evaluate the potential target.............5
Porter Generic strategy................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Strategic marketing is refers to the methods by which company can differentiates itself
from its competitors by offering quality and valuable services to its customers as per their needs
and wants. Mainly, it is a process of implementing mission by particular process that contributes
in maximising the profitability level (Chernev, 2018). This is possible by proper planning,
developing and implementing all the necessary aspects of marketing that assist company in
meeting customers needs and wants. Thus, it important for management of business organisation
to include effective team work that further assist in attaining beneficial outcomes. Current report
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is based on Aston Martin, is British independent manufacturer of luxury sports car. It was
founded by Lionel Martin and Robert Bamford in 1913. Company is going to expand their
business in another country i.e. Romania and launch its new electric car with the aim of attaining
competitive benefits. This report is going to discussed PESTLE analysis and different entry
modes that company can uses to enter into Romania. In addition to this, market segmentation and
targeting will also mentioned that help company in selecting an appropriate one to improve its
performance in new market.
PESTLE Analysis of Aston Martin
It is important for every business organisation to serve unique and quality products in
market place because it can contributes in inviting more and more customers towards its
offerings. In this regards, Aston Martin is launching its new products i.e. electric car in Romania
market. The main reason behind launching this car is that it reduce air pollution, environment
friendly, save fuel. All these are important focus in current scenario for attainment competitive
growth in new market. For this analysis, PESTLE analysis help in providing opportunities and
threats for Aston Martin in innovative market. These factors are direct impact over the company
as a global business organisation. All the factors can be understood by following points:
Political factor: This type of factor directly affect the operations of company as overall
operational activities are influence of government and political conditions (Beirman, 2020). In
context to Aston Martin, political stability in Romania is a biggest opportunities for company to
expand their business. That provide assistance in attaining competitive growth and at the same
time also capture larger market from its competitors in Romania market.
Economic factor: In Romania market, economic trends directly influence the
organisational activities of Aston Martin as change in economic situation of country is also
affect the overall performance. It includes some important factors such as weaker Yen vs.
Romanian Currency, Fastest growth in developing countries, gradual growth of Romania
economy and so on. Under this, it is opportunities for company to increase its exports from Japan
to Romania.
Social factor: It is also a major factor that influence operational and business activities in
market place (McDONALD, 2016). In relation to Aston Martin, there are some social factors
that impact over the business such as increasing interest of people towards the electric cars,
widening wealth gap and so on. In relation to this, Aston Martin has opportunities to serve
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quality products and services to its customers and satisfy their needs. Apart from this, widening
wealth gap is a major threat for Aston Martin as it negatively impact over the company and its
customers base as well.
Technological factor: It is one of the important factor that directly influence the company
and its brand image. Aston Martin operate their business at global market so that organisation is
responsible for analysing all the technological aspects and also use innovation or advances
technologies within their production so that company can introduce best products in market
place. In relation to this, company also includes different variables in producing electric car such
as use of e-commerce, cybercrime, mobile technology trends and so on. By this, company get
opportunities to enhance their capabilities as per e-commerce for selling its parts in the market
place. On the other side, cybercrime in Romania market is major threats for Aston Martin that
can be reduce its positive performance at market place.
Environmental factor: At the time of taking any kind of strategic decision Aston Martin
needs to includes ecological concern as it help in protecting environment from any kind of harm.
Thus, it is significant for Aston Martin to follow all the environmental factors related with
climate change, increasing its focus on sustainability, global declining in oil revenues and many
more (Agic and et. al., 2016). In this relation, Aston Martin new electric car that is totally eco-
friendly as it provide huge opportunities to company in maximising the sustainability
performance and established its competitive image in Romania market.
Legal factor: It is important for business organisation to follow all the legal rules and
regulations at the time of expanding their business activities in new market. In context to this,
Aston Martin needs to follow different legal rules such as increasingly complex consumer laws,
environmental laws, intellectual property laws and many more. All these are support in
improving the chances of successfully expanding their business in Romania.
Different modes of market entry
In order to enter into new market or counties there are different type market modes that
could be opt by company with the aim of expanding their business. This will provide a path on
which company can easily enter in new market and capture benefits from the same. In this
relation, each and every mode of marker have distinctive risk and benefits that is important for
company understand (Kim, Shin and Min, 2016). Thus, it is important for company to select an
appropriate one to enter into new countries and gain various benefits. In this context, there are
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some effective foreign market entry modes that can be used by Aston Martin to expand their
operational activities in another country:
 Exporting: It is considered as an important mode of entry into other countries as it is a
process of selling products and services in one country to another. By using this mode,
company can easily serve their products into new and international market with the aim
of generating larger profitability. Along with this, it is divided in to methods can be
understood by following points:
◦ Direct export: In order to enter into new market, it is one of the common mode in
which company exporting products that made by home country. The main focus of
this type of method is to increasing the economic condition of home country by
generating revenue from other countries. In this entry mode, there is less involvement
of distribution network as the country directly exporting their products.
◦ Indirect export: It is also consider as an effective way to entry that completed by
domestically based intermediaries. In this, there is no control of any kind of exporters
over its products in international market.
Legal procedures: If company wants to enter into new market by using exporting are bound and
responsible to implement as well as follow all the necessary legal rules and regulation of
Romania export ordinance Council (David, David and David, 2017). Along with this, company
is also fulfil all the legal papers of exporting so that business can easily enter into new market.
 Joint venture: It is also considered as an effective mode of entry that is based on
agreement between two or more than two companies to work together for a common
purpose and goals. In this, each and every members are equally share all the profits and
losses. Along with this, it includes some common objectives of market entry mode
including risk/ reward sharing, technology sharing, market enter, conforming towards the
government regulations and joint product development. These can be beneficial in
effectively entering into new market.
Legal procedure: It is important for all the partners of joint venture to give all the necessary
information to each and every members about the specified project. In this relation, there is
separate compliance for the market entry which is important for every business organisation to
follow. As they also liable and responsible to explain the actual purpose of every project and
how it provide benefits to the society and its members (Varadarajan, 2018). This can be
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eliminate the chances of arising conflicts and issues in expanding the operational activities into
new market.
 Strategic alliance: This entry mode is related with the cooperative agreements that is
different organisation including formal joint venture, shared research or minority equity
participation within the business. This type of entry mode is more that it includes
distinctive characteristics are as follows:
◦ The main focus of this mode is to create new product for offering into new market as
compare to distributing the old one.
Legal procedure: Under this, firm is responsible for express clear strategic goals and objectives,
sharing information, staff exchange, operations along with long term horizon, proper flexibility
in Romania government. Thus, it is significant for company to fill the amendment concerned that
may assist in providing support in operating into new market and countries.
Recommended market entry for Aston Martin in Romania market:
It has been evaluated after analysing different market entry modes that Aston Martin can
easily expand their business activities in new market i.e. Romania with the use of strategic
Alliance as a market entry mode. As Aston Martin is launching a electronic car in Romania with
the aim of generating larger profits and market share from its competitors. It is consider as an
effective way of entry mode that help company in introducing new products in new market. With
the help of this, company can able to gain competitive advantage from its competitors by serving
new products in new market (Chernev, 2019). In addition to this, Romania also provide
opportunities in front of company to generate larger market share and also invite new customers.
This will directly contributes in improving positive brand image of company in market place.
Concepts of market segmentation and targeting critically evaluate the potential target
Marker segmentation is refers to the important process that used by company to
successfully divided their potential customers into different groups, segment and sections along
with their different characteristics. Thus, it is significant for company effectively segment their
customers into smaller group that provide assistance in offering best quality services to them as
per their needs and requirements. Proper market segment can assist in improving the chances of
maximising the customers base by satisfying their actual requirements (McCamley and Gilmore,
2018). In relation to Aston Martin, company is going to launch a new electric car in Romania
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with the aim of generating larger profitability at competitive market place. This segments can be
understood by following points:
Demographic segmentation: This type of segmentation is also consider as an effective
way to segment their customers that consider various aspects such as age, race, groups and many
more. With the help of this segmentation, company can easily target their market in an effective
way. In this context, Aston Martin needs to divide their customers as per age and groups which
provide assistance to company in producing as well as delivering new electric car effectively.
This can be beneficial in improving the possibilities of increasing sales volume and at the same
time also enhance its market share.
Behavioural segmentation: It is totally based in the buying behaviour of customers
which reflect as per their brand loyalty, benefits and many more. It is significant for company to
segment their customers as per their buying behaviour before expanding or entering into new
market. This can be effective in providing chances to satisfy customers needs. Thus, it is
significant for Aston Martin to effectively understand the overall behaviour of customers so that
they can properly understand what customers actually wants from the company. By this,
organisation can improve their overall performance at market place and attain competitive edge
from its competitors.
Psycho-graphic segmentation: It is also consider as effective way of segment customers
that is based in the lifestyle, values, attitude of customers. In this, company understand the mind
set of company effectively that assist them in delivering quality products and services to its
target customers with the aim of improving their satisfaction level (Brooksbank, Subhan and
Calderwood, 2018). For an example, Aston Martin operating in UK in which customers have
different mind set towards its products but in Romania, individual might have differ attitude
which is crucial to understand by the company so that they can easily provide them quality
services. With the assistance of this, organisation can enhance its overall sales and profitability
level.
Geographic segmentation: Under this type of segmentation, company segment their
customers on the basis of population density, countries, boundaries and many more. Along with
this, organisation also divide its products and services as per urban, rural area that support them
in maintaining better coordination. This can be beneficial in improving the positive response of
customers and at the same time also assist in increasing profitability level at market place.
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As per all these segmentation, Aston Martin select demographic factor to launch its new
electric car in which company deliver their accordingly. In this segmentation, 24 to 40 years
people are enable to buy the car and increase the sales of the company at market place. The main
reason behind selecting this segment is that this type of age group become self dependent and
also easily buy this type of electric cars. This will assist business organisation in increasing its
market by delivering quality products to its customers as per their needs and wants. Along with
this, it is important for Aston Martin to understand the aspect of environmental aspect that make
competitive image of company in-front of society. In order to maintain the same, company focus
on using TQM that is beneficial in managing the quality of production activities. It also help in
eliminating the wastage and at the same time also maximising the profitability level. With the
assistance Aston Martin can increase their sales volume by targeting their customer in Romania
market.
Porter Generic strategy
In a business organisation, strategies is define as an important process that help in
attaining all the set goals and objectives in an effective manner. Thus, it is significant for
manager of company to evaluate suitable strategy so that entire activities of marketing and
business can be done successfully. In order to enter into new market, there are various strategies
that company used that provide opportunities in-front of business to maintain their efficiency
(Shilbury and et. al., 2020). As Porter's Generic strategy model is an effective way in which
company can analysis the competition in market and at the same time also determine the
competitive position in new market. This type of model analysed into three important section
that help Aston Martin to analysis the strategy that is effective in improving it performance in
another countries. This can be understood by following description:
Cost leadership strategy: It is important for each and every business organisation to
attain competitive advantage by delivering innovative services in market place by understanding
the actual requirements of customers. Thus, it is important for business to identify the necessary
aspects and at the same time also fulfil it so that company can easily gain benefits at market
place and also enhance their productivity level. Along with this, in a cost leadership strategy
company focus on producing products and services that is low of volume and also have high
quality standard (Felix, Rauschnabel and Hinsch, 2017). In this context, Aston Martin going to
introduce or launch its new electric car in Romania with the aim of attaining huge respond of
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customers. For this, it is also significant to effectively understand the overall concept of cost in
order to become a cost leader in market place. By using this strategy, Aston Martin can serve its
electric car at a low price as compare to its competitors. This can be beneficial for company in
attaining competitive advantage by establishing is famous brand image in new market.
Differentiation strategy: Under this type of strategy, management of business
organisation focus on producing unique products that is totally different from the competitors.
This can be beneficial for inviting as well as attracting large number of customers towards its
products and services. In order to attain competitive edge at market place, it is important for
company to undertake research and development plan in which innovative and unique products
can be delivered to its customers as per their needs and wants. In case Aston Martin use this type
of strategy then they needs to focus on their new products i.e. electric car and also include
innovative feature that makes it totally differentiate from its competitors. By this company can
easily capture larger market share from its competitors.
Focus strategy: It is also considered as an effective method, in which company should
focus on introducing new and innovation within their products line on the basis of cost
minimisation. This type of strategy is focus on target their activities towards the specified aspects
that contributes in gaining better results. With the assistance of this, company can attain
competitive advantage from its competitors and also improve its productiveness at market place.
All these strategies are effective for company for improving its overall performance in
new market place (Alsem, 2019). Therefore, management of Aston Martin is responsible for
evaluating as well as determining appropriate attributes that help them in attaining competitive
benefits from its competitors (Paul and Mas, 2020). In this context, company includes focus
strategy in which target could be focus effectively with the assistance of innovation and
elimination of manufacturing cost or products. With the use of this type of strategy, company can
easily sustain in Romania for longer period of time.
CONCLUSION
Form the above mentioned report it has been concluded that implementing strategies is
important for company successfully grow and expands in new market. For this, business is
responsible for developing an appropriate strategies and framework that contributes in providing
huge opportunities to attaining competitive advantage from its competitors. In this context,
various aspects related with strategic marketing is also used by company in improving its
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performance by offering quality products and services to its new and potential customers as per
their needs and wants. Therefore, company also includes various tools to analysis the new market
so that business can easily expand their operations in another country. In this, PESTLE analysis
provide impact of external environment over the business organisation. In addition to this, it is
also significant to use appropriate market entry mode that used by company to expand its
activities in new country. For attaining success at new market place, management of business
also segment their customers as per demographic aspects so that customers get easily satisfied.
With the help of this, organisation can successfully expand their business and attain competitive
edge from its competitors at wider market area.
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REFERENCES
Books and journals
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Beirman, D., 2020. Restoring tourism destinations in crisis: A strategic marketing approach.
Routledge.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. The
marketing book, p.87.
Agic, E., Cinjarevic, M., Kurtovic, E. and Cicic, M., 2016. Strategic marketing patterns and
performance implications. European Journal of Marketing.
Kim, N., Shin, S. and Min, S., 2016. Strategic marketing capability: Mobilizing technological
resources for new product advantage. Journal of Business Research, 69(12), pp.5644-
5652.
David, M.E., David, F.R. and David, F.R., 2017. The quantitative strategic planning matrix: a
new marketing tool. Journal of strategic Marketing, 25(4), pp.342-352.
Varadarajan, R., 2018. Advances in strategic marketing and the advancement of the marketing
discipline: The promise of theory. Journal of Marketing Management, 34(1-2), pp.71-
85.
Chernev, A., 2019. Strategic Marketing Management-The Framework. Cerebellum Press.
McCamley, C. and Gilmore, A., 2018. Strategic marketing planning for heritage tourism: a
conceptual model and empirical findings from two emerging heritage regions. Journal
of Strategic Marketing, 26(2), pp.156-173.
Brooksbank, R., Subhan, Z. and Calderwood, R.J., 2018. How applicable are conventional
strategic marketing practices in emerging markets? An exploratory study in
India. International Journal of Emerging Markets.
Shilbury, D. and et. al., 2020. Strategic sport marketing. Routledge.
Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media marketing:
A holistic framework. Journal of Business Research, 70, pp.118-126.
Alsem, K.J., 2019. Applied strategic marketing: a step by step approach. Routledge.
Paul, J. and Mas, E., 2020. Toward a 7-P framework for international marketing. Journal of
Strategic Marketing, 28(8), pp.681-701.
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