Strategic Marketing for Divine Organic Face Cream in Thailand

This report discusses the strategic marketing approach for launching Divine Organic Face Cream in Thailand. It includes a PESTLE analysis of the country, SWOT analysis of the product, market segmentation, and available entry options. The report recommends the best entry option and marketing strategy for the product.

STRATEGIC MARKETING

Table of Contents
EXECUTIVE SUMMARY........................................................................................................................3
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
Recommending Product and Country......................................................................................................4
PESTLE analysis.....................................................................................................................................4
SWOT analysis........................................................................................................................................6
Available Entry options...........................................................................................................................7
Market Segmentation...............................................................................................................................8
Porter’s generic strategy........................................................................................................................10
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

EXECUTIVE SUMMARY
Strategic marketing refers to use of marketing tactics to provide better services to
customers and to increase the customer base. Present report had based on Ashanti Marketing
solutions. The company had to launch a new product named as “Divine organic face cream” in
Thailand. In this report Pestle analysis had been done to analysis the external environment of
Thailand. Opportunity and threats had been analyzed through SWOT analysis.
Furthermore, study had covered three modes of market entry. Best suitable entry option
for the firm had been recommended. By applying concept of segmentation and targeting the
potential market for the company had been advised. Moreover, Porter’s generic strategy had
been explained and best generic strategy for the company had been adopted.

INTRODUCTION
Strategic Marketing refers a method by which a firm differentiate themselves through
competitors. Through focusing on strengths and weaknesses of company, it will able to provide
better service to the consumers. Under this company targets the people by making a strategic
plan in order to convert them into customers. The study is based on Ashanti Marketing Solutions.
It is a company that wants to launch a new product in a suitable country.
Report will cover Pestle analysis and SWOT analysis of chosen country. By this
company will be able to identify current opportunities and threats of the country and also able to
determine the impact of external environment upon the business Study will explain the targeting
and segmentation in general terms and client will recommend best suitable option for the entry.
Furthermore, Market segmentation of product will be done. Afterwards Porter generic strategy
will be explained and best suitable strategy will be applied for the product.
MAIN BODY
Recommending Product and Country
Product – Ashanti Marketing solutions can launch Divine organic face cream. This cream helps
in preventing sun burn as well helps to reduce dark spots of the face. This cream reduces acne
marks and restricts melanin. Skin becomes lighter and glowing. This cream contains power of
osmanthus, saffron and essence of rose. It is completely a natural product made through using
natural ingredients with floral extracts.
Country – Thailand is located southeast to Asia. Bangkok is capital of Thailand. This can be a
country to sale this Divine organic face cream. Thailand is best known for organic farming.
Thus, launching an organic product will be fruitful. As people of Thailand also rely on organic
products and it can be a bestselling spot for the company.
PESTLE analysis
 Political Factors – Thailand is the place known for the tourist, but from some year the
tourism industry of the country is badly affected due to the conflict among the political
parties. There is political impact of two parties. One named as redshirt and other one is

named as yellow shirt. Yellow tees started their protest near international airport and
because of this international flights have been cancelled. Thus, whole tourism industry of
the country gets affected. Therefore, company has to consider both the parties while
doing business. Kingdom of Thailand has a system of constitutional monarch and
parliament democracy. If a person criticizes the monarch then she or he had
imprisonment of 15 years. Thus, while doing business Ashanti Marketing solutions has to
take care they did not break any of the rules of monarch.
 Economical Factors – Local currency of Thailand gets affected due to recession in the
international market. Prior the country has faced a major downfall in the year 1997 due to
volatility of currency. But today the conditions have been improved. Country’s
government has offered attractive investment policies which get benefited to private
investors. Hence, if Ashanti marketing solutions established there business in Thailand
and do investment, the government will also supports them.
 Social Factors – People of Thailand mainly survived through doing profession of
agriculture. Middle and old aged people mainly do agricultural farming. Thus, to launch
organic face cream resources will be easily available. Land to set up new business gets
easily available as people also loves to do organic farming (Chernev, 2018).
Figure 1 Pestle Analysis (Source: Scanning the Environment: PESTEL Analysis, 2016)

 Technological Factors – Thai people mainly implement cutting edge technology into
their agriculture field. This technology can be used for making organic cream in their
agricultural fields. Through this company’s productivity also get increased. The
technology of Thailand is also very good, through using it company can contact to their
suppliers and customers easily. Cyber security is also high in the country. Hence, Ashanti
marketing solutions privacy cannot get disclosed by any of the hackers.
 Environmental Factors – Deforestation is major environmental problem in Thailand.
The government is also taking necessary step to resolve it. Even though they are
appreciating those who doesn’t gives any harm to environment (Scanning the
Environment: PESTEL Analysis, 2016). Ashanti marketing solutions going to launch
Divine organic face cream which do less harm to environment. Thus, business of the firm
gets encouraged by the government.
 Legal Factors – There are legal rules and laws of constitution which need to be followed
by each and every citizen of Thailand. Nobody can even criticize royal family in the
public otherwise they get into prison. Beyond this alcohol drinking laws has to be
followed by each and every person. But as Ashanti marketing solutions is launching
divine organic face cream there is no matter to be afraid.
SWOT analysis
 Strength - Thailand is having a sufficient economical base which will be helpful in
grooming business units as also the government of Thailand is in favor of business units
from other countries. Having a good economic strength will be helpful in managing
business risks, technology and a balanced business environment. Also half of the people
in Thailand are engaged in the organic farming which will make availability of raw
material for organic industries easier. The combination of technology and raw material
makes it an attractive and best business place. Also as half of their population is engaged
in farming there a very few industrial base and there government is searching for new
industries.
 Weakness - Thailand is a place where cyber crime is increasing day by day and is one of
the biggest weaknesses for business units as there is risk of data loss form computers.
Despite all the initiatives taken to protect the land by the government the land is highly

polluted and is damaging lifestyle of the citizens of Thailand, this makes the visitors and
the business to wear mask because the degree of pollution is very high there.
 Opportunity - Even when Thailand is having a strong economic base the people of
Thailand are facing problem of inequalities because of Which their government is need to
found a unit as a founder for their economic reforms. Tax evasion is a big problem in
Thailand and the government is in a strong need to address this tax evasion for which
they are need to set a strong industrial base which will help the people to open several
small enterprise and this can only be done if a big firm will take part in it.
 Threat - The primary issue in Thailand is the rapidly growing population as well as
farming sector. Although the farmers use latest technologies and techniques in farming
but the pollution can create a big impact on their organic farming which will ultimately
be a threat for organic industries. Cyber security is lacking a far away in Thailand which
is big risk for the business unit as there important information can be leaked out (David
and David 2017). The increasing cyber crime opens the door of total loss in business
although business is a risky work but the effects of these can be too dangerous for every
business unit there.
Available Entry options
It refers to a legal agreement which allows the firms, either non-exclusively or
exclusively to manufacture consumer goods for a fix period of time and for a specific market.
Also the licensing authority in some countries can also fix quotas for availability of raw
materials due to lack of resources or some specific reasons.
 Strategic alliances - it can be said as agreement between two or more parties who have
agreed over the objectives and independence of the firm. An alliance cannot be same as
partnership rather it is an exclusively broader term (Sahaf, 2019). When two companies
agrees to entitle profit and losses in which each one owns some sort of assets and both are
equally overburdened with outsourcing is termed as strategic alliances. In simple words it
is a type of partnership but does not give any right of partnership to the members,
partnership is just a part of strategic alliances which is made for certain purposes.
 Mergers, Acquisitions and Joint Venture - It in general term mean sharing of
ownership with the entitled or consolidated firms for a specific purpose and specific time.

From legal point, mergers is basically a agreement between two parties to be consolidated
to become one and acquisitions is also type of merger in which only one party takes over
the overall control of the firm even after joining with the other firm. So both these seems
to be similar but are having just a slight difference which makes them different from one
another (George, 2017). On the other hand joint venture refers to creation of a new entity
by combining two or more firms which generally limits to a specific time period and after
that period all the entity's goes to their separate ways.
 Foreign Direct Investment ( FDI ) - it is form of controlling ownership in a business
rather than the home country. The birth place of investment does not impact its meaning
as it is defined as an investment which is made by purchasing a business or by expanding
the branches of the home business in other countries (Brohi, Prithiani and Chawla,
2016).
The company is going to the third mode of market entry i.e, foreign direct investment
because in Thailand there is an emergent need of big firms and manufacturing units as they
are in need to grow their industrial base. So choosing this option will be most appropriate as
FDI will also be accepted and appreciated by the government of Thailand because they also
want some who can take an initiative to promote small and big industries that can shift the
workforce from agriculture to industries.
Market Segmentation
Market Segmentation - Market segmentation is the process of dividing a huge set of customers
or business market into sub- groups of potential consumers according to their characteristics.
Market segmentation is a composite process of separating customers of similar traits and
potential into one group. In simple words market segmentation is a separation of customers into
different groups as per there characteristics.
Types of market segmentation -
1. Differentiated Marketing Strategy - It is strategy which is generally preferred by small
business units for easy marketing. In this strategy in which the firm or business unit aims to
create two different groups of customers of similar characteristics in the target market
(Hollensen, 2019). Differentiated Marketing can also create more than two segments if the traits

have a big series of variety. The market is suitable for the units dealing in a product for
numerous ages, color groups.
2. Undifferentiated Marketing Strategy - This is a strategy which is easier and had a fast
feedback. In this marketer's use the same segment or create only one segment in which all types
of products are offered and sold to everyone without any difference (Agic, , Cinjarevic and Cicic,
2016). This market strategy is most suitable for both small and medium size firms as big firms
have different and numerous varieties of product s which cannot be sold to everyone without any
segments.
3. Concentrated Marketing Strategy - This type of marketing strategy will be suitable for the
firms dealing in only one line of products or only in one product as this would not be better if
this firm will sell product to everyone or to different segments. So this Marketing Strategy
specifically sell product to only those people who want that one product and that's why they all
are putted in one group.
Ashanti Marketing Solutions is a company dealing in only one line of product so is going
to choose the concentrated marketing strategy because it will be beneficial for savings resources
and time as there is only one product and this strategy is also mostly suitable for one product
(Hunt, 2017). So this strategy is being chosen by the company for the fastest growth and results.
Targeting - It is a process of multi-segment marketing, in this the business units target's the
specific person or customers to sell some specific content in the open market. Generally
companies use to do target marketing to know deeply about their customers and to know how to
top the market with Maximum profit and with lowest cost of production (Liebl, 2018).
Marketing Mix
Product - The company is going to launch a new product i.e, "Divine Organic Face Cream" this
will be a new and fresh creation to remove problems of acne and pimples. The company Ashanti
Marketing Solutions has decided ti launch this product because of several benefits in Thailand as
it is more need for organic items and there are number of people suffering from skin problems.
Price - The price of the product is the money received for using the product till its end value.
The price of our product will be with reasonable price in initial days to grab a big share in the

market and then it will be bring back to moderate. In other words the company is going to use
price penetration techniques to grab a big share. This technique is used because other techniques
may not be beneficial as per the situation.
Place - The Company is going to start this business in Thailand because there are several
benefits if anyone starts organic product business there. Thailand is in an emergent need of
organic products as there are several persons that are eating chemically grown food and other
item (O'Cassand Morrish, 2016). Also the people of Thailand generally have skin problems due
irresistible and bad climatic conditions.
Promotion -The company is going to use two major techniques to promote its products and
those are first advertising and through commission agents. Advertising will help the company to
promote its products in each corner of Thailand and will be able to come out as a big and
successful brand. Through commission agents that are dermatologist customers will be able to
trust on the product, it’s mentioned features and will be a fully satisfied (Pu, Gong and Han,
2019).
Porter’s generic strategy
These strategies are the way to gain competitive advantage. It is helpful for the firm to
take lead from competitors and to boost sales. 4 types of generic strategies are explained as
follows –
 Cost Leadership – This strategy is being adapted to become a cost producer that supply
their product to the lowest price. This strategy can be implemented when a firm produces
products in large quantity (Rudd, Jaakkola and Marshall, 2016). This will be able to help
them to achieve economies of scale. The emphasis under this strategy is to minimize the
cost. If the price of the product is set nearly average or lower than the market price than
company can achieve huge profits.
 Cost focus – Under this company sets price to the lowest. In this type of strategy it is to
be ensured that production cost remain low so it can be benefited to the customers by
offering less price of the product,. Through offering fewer prices a firm is able to attract
large number of customers through which the firm profitability gets increased. Niche
market has been targeted under the cost focus strategy.

Figure 2 Porter's Generic strategy (Source: Generic strategies Michael Porter, 2018)
 Differentiation focus – It involves making a product and service which is different from
others. The motive is to launch different product in the market it requires research and
development. Thus, by doing this innovative product can be launched in the market.
Company needs to serve something extra in order to remain in the market (Porter's
Generic Strategies, 2018).
 Differentiation leadership – Under this the business targets the markets that are larger in
size and the objective is to achieve competitive edge by differentiating across the industry
as a whole. This strategy involves positioning of the product in unique way so that it can
meet the business criteria. In this strategy premium pricing is done so that high amount of
profits can be generated at very beginning.
Ashanti marketing solutions is choosing differentiation focus strategy as to gain competitive
advantage in the marketplace. Company has to launch a new innovative cream in the market. By
this company’s profitability gets increased (Sadeghpour, Far and Amiri, 2017). It is an
opportunity to provide products that varies from the competitors and able to increase large
market share.

CONCLUSION
It has been concluded from above project report that strategic marketing refers to making
a business plan and implementing marketing tactics so that company can gain competitive
advantage in long run. It also helps to increase the sales of the firm. It has been analyzed from
pestle analysis that government of Thailand supports the private investors. Thus, Ashanti
marketing solutions is able to established there business in Thailand. By SWOT analysis it had
been analyzed that more than half of the population in the country is engaged in agriculture.
Hence, raw material is easily available to launch new product in the Thailand.
It has been summarized that best suitable market option for the firm will be foreign
direct investment as government is also appreciating private investors in Thailand. It has been
concluded that concentrated market segmentation will be done in order to reach the people who
needs organic face cream. As this cream is also prescribed by dermatologist so only those people
will be targeted who are suffering from skin care problems. Differentiation focus strategy has
been chosen by the company in order to vary the product from the competitors and to take lead.

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Online
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https://www.mindtools.com/pages/article/newSTR_82.htm>
Scanning the Environment: PESTEL Analysis, 2016. Available through :<
https://www.business-to-you.com/scanning-the-environment-pestel-analysis/ >