Strategic Marketing for UK Watch Group Ltd in China Market

This report provides significant knowledge regarding development of new product for offering into new market. It includes macro analysis through PESTLE technique for gaining depth information about sector. Current study has highlighted market entry options, segmentation and targeting and porter’s generic strategies such as cost leadership, differentiation and focus.

MG624 STRATEGIC
MARKETING

EXECUTIVE SUMMARY
Strategic marketing is the process of ensuring strategy that is capable of attacking larger
number customer through enabling appropriate practice regrading price, promotion, etc. the
current report has been prepared for providing significant knowledge regarding development of
new product for offering into new market. It is recommended to UK WATCH GROUP LTD
which is British company offering new smart watch with containing number of distinct features
in China market. It has involved macro analysis through PESTLE technique for gaining depth
information about sector. Current study has highlighted market entry options, segmentation and
targeting and porter’s generic strategies such as cost leadership, differentiation and focus

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................4
MAIN BODY.............................................................................................................................................4
Recommendation the product & country & conducing the macro analysis along with solutions.............4
Explaining the market entry option..........................................................................................................6
Describing the market segmentation........................................................................................................8
Applying porters’ generic strategy.........................................................................................................10
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................13

INTRODUCTION
Strategic marketing is concerned with utilization different effective techniques in order to
attain the competitive advantages so that achieving organizational goals can be become possible.
In the current era, it is important for company to pay attention on developing effectual &
strategic marketing strategy which is helpful in achieving organizational goals and objective. The
current report is based on providing the marketing solution to the UK WATCH GROUP LTD
which is offering the new distinct product in the country China. The main objective of the
current report is highlight the crucial information which is required to be taken into consideration
for having successful business operating in the specific country. The current report will comprise
macro analysis by conducting PESTLE so that opportunities & threats can be identified. The
current report will involve market entry option, segmentation and porters generic model so that
depth insights for offering new product can become successful.
MAIN BODY
Recommendation the product & country & conducing the macro analysis along with solutions
UK WATCH GROUP LTD is one of the British organization that has objective of
expanding its operational practice. The firm is offering new stylish watch consisting number of
features like reading heart beat and signifying the health condition, showing timings & alters for
the problems like atrial fibrillation and sending notification when detecting anomalies, etc. The
specific option is concerned with accomplishing the objective of health conscious people so that
their objective of taking crucial course of action for making improvement can become possible.
The Chinese watch market is specialized for the luxury kind of products which are tend to be
expensive. Operating in the China can be successful as the market is going in the upward
movement. The macro analysis of the market can be helpful in taking decision to successfully
operating in the sector.
PESTLE analysis
It is one of the significant technique which is helpful in accomplishing the objective of
effectively analyzing external factors that ha crucial influence on the smooth functioning of the
organization. The PESTLE evaluation of specified country will evaluate factors like political,
economic, social, technological, legal and environmental.

Political factor
While operating in the international market there are number of elements which has
influence on the processing of the company. UK WATCH GROUP LTD (UWGL) can get highly
affected from the political surroundings of the China while offering smart watch. In the
specified country it is essential on the political elements like size of government budgets, role of
governance system, tax, tariff rate, etc. having good political relationship for having smooth
processing can lead the firm to get the better ability to operate (Stone and et.al., 2020). In
absence of this factor there can be decline in the ability to generate revenue through covering
higher market share. The h political situation’s impact on firm can be improved by making good
relationship in industry which can increase chances of success.
Economical factor
Factors like inflation, unemployment, saving, interest, GDP, exchange rate, etc. are the
few crucial factors which are required to be taken into consideration by the company. The watch
industry of china is facing upward movement in turn requirement due to increasing purchasing
power of customers. The one of the significant benefit that can be obtained by mentioned
company in the China is the availability of factors of production like men, machine, etc. UWGL
needs to focus on interest rate & financial market as it has influence on operational practices in
this specific sector (Banerjee, 2017.). It can be improved by lowering its expenses in turn gaining
competitive advantage of operating in market can become successful.
Social factor
Attitude, customer behavior, purchasing trend, demographic factor, belief, etc. are the
number of social factor which has impact on business activities. Customer of specified country
are having depth understanding of technological understanding which make them prompt in
accepting new products and services. UK WATCH GROUP LTD can get positively affected
from social component through paying attention on having ability to maintain good relation
through marketing products with respecting their culture & indicating significance of being
health conscious. There is social trend of being healthy which can favorably influence objective
of enterprise.
Technological factor

It basically comprises innovation strategy through adopting advanced technology. The
specified company has paced up with their technological innovation & knowledge which can be
helpful in attaining the objective of offering new product (Chernev, 2018). Company can
coordinate with environment of this industry through having much emphasis on adopting new
technologies to match standard practice of country.
Legal factor
There are several government rules and regulation for international company,
employment law, company act, intellectual property, etc. are other imposed by the industry
which are need to be taken into consideration for having smooth processing (Perera, 2017). UK
WATCH GROUP LTD require to pay attention on having significant understanding to comply
with such laws so hat irrelevant legal obligations can be eliminated.
Environmental factor
To be successfully conducting business activity It becomes essential for the company to
highlight relevant processing in the environment through eliminating creation of pollutions,
carbon footprint, etc. Lack of compliance can spoil brand image of company and adversely affect
its financial position. the company can derive this by ensuring optimum utilization of resources,
etc.
On the basis of the above presented information it can be interpreted that gaining higher
market share, profitability, good brand image, etc. are few opportunities that can be grabbed by
firm (Sahaf, 2019). On the other side, mentioned threats like legal obligations, etc. can be
handled with mentioned course of actions.
Explaining the market entry option
There are several methods which can be taken into consideration by the company for having
significant growth and development by entering into the new market. Each option has its own
advantages and drawbacks which can affect competitive advantages of the company. UK
WATCH GROUP LTD can sue below mentioned strategy for entering into new market.
Strategic alliance

It is concerned with making agreement between two companies while each participant is
retained independent. In this type of processing firm can be benefited by obtaining several
distinct competitive advantage through having strategic alliance. The responsibilities of each
member are clearly defined which increases productiveness to meet the common goal. There are
number of advantages which can be derived by specific company to meet its objective of
expanding into international market (Kachen and Krishen, 2020). The benefits include speed up
into the entry market, enhance sales, learning new skills and technologies, divided cost, effective
distribution channels, innovation, building image of brad, etc. UWGL can have significant ability
to obtain these type of merits components in turn higher flexibility & sustainability can be
achieved. On the other side, there are few drawbacks which are need to be involved in the
decision making regarding selection of entry mode. It includes poor communications,
management, benefits are unequal, risk to reputation, barriers in the cultural & language,
vulnerability and conflicting situations, etc. from the evaluation it can be specified that there are
number of benefits and limitations which are need to be taken into consideration so that having
significant processing to accomplish the goal can become possible.
Merger and acquisition
There are number of options which can be utilized b firm for having ability to enter in
the new market. It is highly important for the company to concentrate on gaining the significant
ability which is relevant for operating on global market. Merger and acquisition is strategy in
which two companies come together but only one retain in existence and other does not survive.
It is one of the widely sued method due to its ability to generate number of benefits. The
advantages involve access to the talent, decline cost, economies of scale, financial power,
reduced competition & risk, tax relief, etc. on the basis of this, it can be specified that operating
in the specified country can be beneficial for organization through implementing the particular
mode of entry. There are few lacking areas as well which are need to be taken into decision
making process so that higher progress via eliminating these can become possible (Yaneva,
2021). The disadvantages that can arise for firm involve conflict of culture, employee distress
financial burden, sunk cost, etc. while operating in the international market with this particular
mode of conduct UWGL can face these challenges and affect its competitive position.
FDIs

It is the direct ownership of facilities in the target country which involves transferring of
resources including capital, technology, etc. it is done by acquisition of existing entry and
establishing new enterprise. The mentioned enterprise has objective of operating in the specified
industry of Chinese market for the purpose of accomplishing objective. This option of entering
into the market can permit business to have benefits like economic growth, technology
advancement, human capital investment increase in export, exchange rate of stability improved
capital flow, creation of competitive market, etc. in against to this, there are few barriers as well
which can affect the competitive edge of UWGL which involve hindrance of domestic
investment, risk from political change, higher cost, expropriation, economic non viability, etc.
these drawbacks can lead to poor performance.
From the evaluation of these three mode of entry in the international market it can be
interpreted that each method has significant benefits which can allow firm to meet desirable
position. It is recommended to UK WATCH GROUP LTD to focus on adopting strategic
alliance for having relevant level of growth & development as its limitations can be easily
handled through applying relevant actions. It will permit the company to have significant level
of competitive edge to operate successfully.
Describing the market segmentation
Market segmentation is the practice of dividing target market into approachable groups.
It creates sub category of market on the basis of demographic, psychographic, geographic,
behavior, etc. which can allow the company have significant criteria for attracting its customers.
In addition to this, market targeting is the process of selecting group of customers from entire.
STP is one of the crucial tool that provide assistance in conducting effective segmentation,
targeting and positioning activity in turn higher ability to attract & retain customers can become
possible. UK WATCH GROUP LTD can apply segmentation, targeting and positioning
strategy to have relevant ability to offering its product to right customers in turn accomplishing
objectives can become possible. It is essential for the company to have significant
understanding regarding its targeted audience so that marketing activities can be conducted in
effective manner.
Segmentation of the company’s customer can be done effectively through focusing on the
crucial factors like demographic, geographic, behavioral and psychographic. UK WATCH

GROUP LTD is offering smart and stylist watch that has distinct characteristics which is highly
suitable for the health conscious possessing behavioral people. The company is currently
focusing on the geographical area of China in the international market. The product offered by
enterprise can be suitable for all the age group that has perception and attitude of making their
life better through making crucial action on time by identifying negative signal of their body. UK
WATCH GROUP LTD is one of the successful enterprise that comprises number of competitive
benefits which can be helpful in getting attention of customers. The segmentation for UK
WATCH GROUP LTD’s customer is done on the mentioned basis which is as well focus on
ensuing that on less price product is offered. In addition to this it can be articulated that
customers are divided into the categories like age, income and psychographic factors (Hales and
Mclarney, 2017.). It can be beneficial for the organization which can aid in meeting the
predestined objective of entering into the international market. . The main reason behind
choosing this particular segment is that frim is offering such product which is highly relevant
and reliable in meeting needs & resolving issues. It can be helpful in obtaining alerts of disease
on time, etc.
Targeted audience is basically coming to the decision to target customers based on
specific criteria. In this particular part of the marketing strategy emphasis is provided on
evolving that offering is suitable for customers. In targeting there are several factors which are
focused by the company for having relevant knowledge regarding established objective
achieving possibilities. In this having ability to value the offerings by customer is created. After
the segmentation reaching customer with segmenting clients becomes easy and convenient for
the business. It increases the opportunities to meet the objective by proving ability to reach
correct audience for selling smart watches.
In addition to this, the STP process is carried after completing the targeting step to
positioning stage (The segmentation, targeting, positioning (STP) marketing model, 2021). It is
one of the significant process that can allows to select on specific areas on which excellence is
developed to gain the competitive benefits. There are larger number of curse of action which can
be executed by the firm for paying attention on deriving competitive advantage. It can be done
by adopting effective promotional strategy that is helpful making targeted market understand
the value and distinctness of offered products. UK WATCH GROUP LTD can have ability to

position its product in effectual pattern by making strategy based on price, quality, application,
etc. UWGL can receive significant ability from the market through ensuring its standard quality
of watch which is equal to luxury watches. The specified organization can as well concentrate on
developing effectual processing by enabling its cost effective & leadership based strategy.
Possessing such characteristics which can be utilized for number of purpose can incline its
opportunity to gain capabilities for successfully positioning.
From the evaluation it can be said that firm can derived competitive benefits like
higher sales revenue, greater market share, good brand image, increased profitability, et. All the
mentioned advantages can allow the particular organization to have relevant processing in turn
higher profitability and sustainability in industry can be derived.
Applying porters’ generic strategy
Porter’s generic strategies describes how organization can pursues competitive
advantages across the selected market (Porter's Generic Competitive Strategies, 2021). There
are basically four types of generic strategy which is helpful in having ability to attain competitive
advantages in turn gaining ability to accomplish the objective can be derived. It comprises
strategies like differentiation, cost leadership and focus. Each strategy is highly useful in
providing strengths to enterprise for successfully operating in sector.
Cost leadership strategy
It is one of the successful strategy of porter’s generic which mainly pay attention on having h
competitive advantages through two ways. The particular approach can be conducted in two
pattern which concentrate on cost in turn better ability to coordinate with changing
circumstances can be derived. increasing profit by reducing cost while charging industry
average price. In this technique eliminating non crucial factors for declining expenditure is
focused. Other pattern in which cost leadership can be exerted is enhancing market share by
charging lower prices for having profits (Dmitrievna, 2020). In addition to this, the cost
leadership strategy focuses on making firm to be leader in sector in the terms of controlling
expenditure. There are few limitations as well which need to be understand by the enterprise for
making appropriate selection of strategy in order to coordinate with prevailing situation. There
is risk in pursuing cost leadership strategy which is related with its non-uniqueness. The main

reason behind such drawback is that similar organizations operating in the sector can
successfully copy cost reduction strategy in order to attain same kind of benefits.
Differentiation strategy
The particular approach is associated with offering products or services differently from
competitors so that higher attractiveness than other offerings of industry can be achieved. It is
largely dependent on the nature of industry. In order to execute an effective differentiation
strategy. it becomes essential for the organization to pay attention on few actions. It involves
having good research, development & innovativeness, higher quality of products and effective
marketing & sales technique to make targeted audience understand benefits of delivering
products (Kabure and Ragui, 2020). There are certain lacking areas as well which can hinder the
performance of organization due to application of differentiation strategy. There are higher
possibilities of emergence of substitutes which can lead to affect the functioning in negative
pattern as sales revenue, profitability, etc. can be declined.
Focus strategy
This is based on concentrating on particular market by understanding the dynamics of market &
requirements of customers, having lower cost price, etc. it can be beneficial for the company
that is pertaining objective of possessing loyal and committed customers to have economies of
scale. It can also contribute in having significant ability to build good brand image by gaining
higher attractiveness among clients (McDougal and et.al., 2021). In this strategy focusing on
whether company should pursue cost or differentiation focus so that key making a success of a
generic to ensuring adding extra for serving niche market. The something extra that can be
helpful in attaining and retaining customers by reducing cost or increasing differentiation.
From the evaluation it can be specified that UK WATCH GROUP LTD as offering new
product in market. For this purpose, it is suggested to the organization to concentrate on adopting
cost leadership strategy which offers highly qualitative product ensuring its appropriate
suitability for targeted audience. In addition to this, it can be specified that application of cost
leadership strategy of porter’s generic model so that higher ability to reach desirable position
through achieving success can become possible.

CONCLUSION
From the above report it can be concluded strategic marketing is one of the significant
process which allows to gain competitive advantages. The current report has involved macro
analysis which has allowed to obtained information regarding the prevailing opportunities like
higher market share, greater sales revenue, etc. there are few threats as well which lead to failure
due to uncontrollable factors like non stable political, social, etc. situation. The present study
has involved information regarding market entry methods among which strategic alliance is
suitable. Current study has highlighted appropriate segmentation and targeting for attracting
lager customer segment. Present report has included porter’s generic strategies such as cost
leadership, differentiation and focus. The cost leadership strategy is suitable in having
competitive edge for the specified company.

REFERENCES
Books and Journals
Banerjee, S.B., 2017. Corporate environmentalism and the greening of strategic marketing:
Implications for marketing theory and practice. In Greener Marketing (pp. 16-40).
Routledge.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Dmitrievna, B.M., 2020. Development of a strategic marketing system in a company.
Hales, G. and Mclarney, C., 2017. Uber's Competitive Advantage vis-à-vis Porter's Generic
Strategies. IUP Journal of Management Research. 16(4).
Kabure, L. and Ragui, M., 2020. Porter’s Generic Strategies and Performance of Selected
Automotive Firms in Nairobi City County, Kenya. International Journal of Business
Management, Entrepreneurship and Innovation. 2(2). pp.49-63.
Kachen, S. and Krishen, A.S., 2020. Exploring online comments from a strategic marketing
stance to reduce wildlife crime. Psychology & Marketing. 37(12). pp.1771-1780.
McDougal, E.R. and et.al., 2021. Telling the tale: applying a strategic brand storytelling process
for STP planning. Journal of Strategic Marketing. pp.1-21.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Sahaf, M.A., 2019. Strategic marketing: making decisions for strategic advantage. PHI Learning
Pvt. Ltd..
Stone, M and et.al., 2020. Artificial intelligence (AI) in strategic marketing decision-making: a
research agenda. The Bottom Line.
Yaneva, P.D.D.E., 2021. Theoretical and methodological aspects of the analysis and evaluation of
the marketing activity of the enterprise in the process of strategic marketing decision-
making. Revista Inclusiones. pp.350-357.
Online
Porter's Generic Competitive Strategies. 2021. Available through:
<https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-
strategies/>
The segmentation, targeting, positioning (STP) marketing model. 2021. Available through:<
https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-
targeting/segmentation-targeting-and-positioning/>