AeroVironment: Marketing Strategy and Plan for Australian Market

This report provides an overview of AeroVironment's marketing strategy and plan, particularly focusing on its expansion into the Australian market. It begins with an executive summary highlighting the company's drone business expansion and the use of PESTLE analysis to assess the political, economic, and socio-cultural factors influencing its operations. The report details the strengths and weaknesses of the PESTLE analysis, emphasizing its role in evaluating the external environment and identifying opportunities and risks. It then delves into the specific PESTLE factors affecting AeroVironment's business in Australia, including the political and economic stability of the country. The report also considers socio-cultural aspects and their impact on the drone business. Finally, the report offers recommendations for AeroVironment's market entry and operations in Australia, emphasizing adherence to regulations and the importance of pilot training and drone usage guidelines. The report underscores the significance of understanding the Australian market and adapting strategies to achieve long-term goals.

Running head: Marketing strategy and plan
Marketing strategy and plan

Marketing strategy and plan
Executive summary
The report outlines the trading activities of the AeroVironment and it also explains that how the
company expanding its drones business in Australia. Further, the report gives brief information
about the strengths and weaknesses of the company. PESTLE analysis is done by the company to
beat the competitors in the market. It explains the political, economic and socio-cultural factors
to evaluate and analyze the plans and strategies of the competitors. The political factors include
rules, legislation, policies, and human rights. Further, Socio-cultural factors encompass belief,
custom, values, and culture of the people. Further, economic factors include inflation rate,
interest rate, and exchange rate. The report tells that how the drones company can take various
benefits while conducting the trading activities in Australia. The political and economic
conditions of the country are stable and unique. Therefore, it will help to provide various
opportunities to the AeroVironment.
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Marketing strategy and plan
Table of Contents
Introduction.................................................................................................................................................3
Strengths and weaknesses of the Pestle analysis........................................................................................3
Pestle analysis.............................................................................................................................................5
Recommendations.......................................................................................................................................7
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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Marketing strategy and plan
Introduction
The report talks about the business activities and operations of the AeroVironment. It
explains that how the company is expanding and flourishing its business in Australia. It describes
that how the company is using PESTLE analysis to check and evaluate the plans and policies of
the company. It explains the strengths and weaknesses of the pestle analysis. Further, the report
explains the macro environment factors of the Australia. In addition, it explains that how the
company is making effective and unique policies to overcome on the competitors around the
world.
Aero Vironment is an American technology corporation with its headquartered is located
in Monrovia, California, United States. The company is involved in an electric vehicle system,
energy systems, and unmanned aerial vehicles. The company was founded in 1971. In today’s
era, the company is expanding and increasing its revenue and profit. AeroVironment is one of
the biggest suppliers of small drones which include Puma models, Raven and Wasp. Various
campaigns and programs held by the company to expand its business globally (Owens, 2014).
The company is operating its business activities in the United States. Now the company has
decided to explore and flourish its business in Australia. Therefore, the firm needs to focus and
monitor on the macroenvironment to gain the long-term goals and objectives in that country.
Thus, the firm must focus on the marketing strategies and plans to gain long-term benefits in the
Australia. The company also focuses on the production of the drones. Drones help in inspection
and maintenance and it also provides support to the agriculture industry. It also uses the survey,
research, and mapping for the production of drones. The company can monitor and evaluate the
risk by using drones (Chen, 2017).
Strengths and weaknesses of the Pestle analysis
The pestle analysis is done by the company to beat the competitors of the company.
PESTLE analysis stands for political, economic, socio-cultural, technological, legal and
environmental factors. The factors affect the business activities and operations of the company.
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Marketing strategy and plan
Pestle analysis is a tool used by the marketers to evaluate and analyze the external factors that
have an impact on the company (Venette et al, 2010).
Strengths of PESTLE analysis: There are various strengths of the pestle analysis which have
been discussed below (Bishop. and Hutchings, 2011).
 PESTLE analysis provides an easy and simple framework to analyze the strengths and
weaknesses of the competitors in the market. It is the biggest advantage of the pestle
analysis.
 It involves in cross-functional expertise and skills to increase the knowledge and
experience of the experts around the world (Zalucki et al, 2011).
 The AeroVironment has become the global supplier of small drones and unmanned
aircraft systems. Therefore, the company uses Pestle analysis to run the business
activities in Australia. Pestle analysis reduces the threats and risks to the company.
 It also helps to develop and build the organization and it also helps to identify and
evaluate the new opportunities in the organization. It provides a mechanism and tool in
order to enter into a new market globally (Carberry et al, 2011).
 It also helps to reduce the cost of the company. Further, Pestle analysis helps to
understand the strategic planning within the organization.
 It also helps to introduce and develop new technologies within the organization. Now it is
assumed that PESTLE provides various benefits to the company in order to meet the
long-term goals and objectives of the firm. By using pestle analysis, the firm can gain
competitive advantages in the Australia (Kolle, Shankarappa, Manjunatha Reddy and
Muniyappa, 2015).
Weaknesses of pestle analysis: Although Pestle provides various benefits to the AeroVironment
Company while expanding business activities and operation in Australia but it also consists some
weaknesses which have been discussed below (Venette, 2015).
 The company has to invest a lot of money to conduct a pestle analysis in Australia
because the culture and trends are different in such country which can affect the success
and growth of the company (Gamble and Thompson, 2014).
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Marketing strategy and plan
 The company has to collect a lot of information about the market of the Australia to
increase the revenue and profit of the company. Thus, it is a time-consuming and costly
process (McAllister et al, 2015). It is the major weakness of the company.
 Further, the company needs to focus on the expert team and technology to conduct pestle
analysis in that country. Therefore, it is a very complex process. Sometimes, the company
is not able to analyze and evaluate the entire factors of the macro environment. Therefore,
the firm will have to bear a great loss in the Australia (Kriticos et al, 2015).
 AeroVironment will have to face various difficulties while taking decisions within the
organization. Further, deeply research is required while conducting pestle analysis in the
Australia.
 It is based on the predictions and assumptions because it is not possible to gather entire
information in a single time (Raphael et al, 2014).
 The outputs and results of the company are subjective in nature thus the macro
environmental factors can be changed every day. In addition, it is not feasible and
successful to provide accurate and adequate information of the external environmental
factors in the Australia.
 Apart from this, Pestle analysis is not appropriate for all the firms because it depends on
the environment and target market. Now it can be said that there are various weaknesses
of the PESTLE analysis (Gomes, Berry, Alzougool and Chang, 2014).
Pestle analysis
There are various factors influence the trading activities and operations of the company in
order to attain the success and growth of the company. Further, macro environment affects the
decisions of the managers within the organization. To attain the long-term goals and objectives,
the company needs to focus on the external environment of the country. The political, economic
and socio-cultural factors affect the drones business in Australia which has been discussed below
(Lee and Kartika, 2014).
Political factors: These factors influence the economy and business of the AeroVironment in
Australia. These factors also affect the workforce, quality infrastructure and health of the nation
in the Australia. Further, political factors include the rules, regulations; policies which have been
made by the company in such country that will also affect the business of the drones Gamble and
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Marketing strategy and plan
Thompson, 2014). Apart from this, human bribery, corruption, UK exports finance, and crime
are also considered the political factors that will affect the success and growth of the
AeroVironment. In this way, drones business is affected by these factors in such country. In
addition, the Australian government also intervenes in the business activities of the drones. There
are transparency and effectiveness in the Australian government. The Australia is one of the
most significant markets for the AeroVironment in the Asia Pacific region. The company can
increase its revenue and profit in Australia but it needs to focus on the external environment of
the country. In this way, the company can meet with its target and goals in such country
(Schellhorn et al, 2015). The political environment of such country is stable and dynamic.
Economic factors: The economic factors determine the performance and efficiency of the
company. The economic factors include economic condition, government policies, industrial
policies, economic system, interest rate, and import-export policies. Australia is one of the
biggest capitalist economies in the world. Therefore, AeroVironment can start its business
operations in Australia. The unemployment rate is very low in Australia. Hence, the country
provides the open and favorable market with minimum restriction. In this way, the company can
earn more revenue by the setting up the drones business in Australia. The company must focus
on the economic factors while conducting business activities in Australia (Gamble and
Thompson, 2014). Along with this, the economic growth rate is very higher than other countries
such as UK and US. Further, the GDP is also higher than other countries. Thus, it will help to
reduce the risk and challenges of the drones company while conducting business activities and
operations in Australia. The strong economic rate will help to provide greatest opportunities to
the AeroVironment.
Socio-cultural factors: The socio-cultural factors play a vital and integral while starting drones
business in Australia. The social factors encompass beliefs, customs, behavior, policies, and
values of the population. These factors will affect the entire growth of the drones business in the
Australia. Changes in the social factors and trends can have an impact on the demand for the
products in such country. It will also affect the performance and efficiency of the employees
within the organization. The diverse people live in Australia and most of the people use the
English language. There is no discrimination on the basis of the caste and religion. The
education level is very effective and unique in the Australia (Gamble and Thompson, 2014).
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Marketing strategy and plan
Therefore, it provides various employment opportunities to the Australian. If the company starts
its drones business in Australia, then the company will get competent and potential employees
for doing work effectively and efficiently. It will also help to increase the profit of the company.
The culture also affects the success and growth of the drones because different countries have a
different culture. Therefore, cultural differences arise in Australia. The company needs to focus
on the cross cultural training to conduct drones business smoothly.
Now it can be said that AeroVironment needs to focus on the external factors while
conducting drones business in Australia. In this way, the company can beat the competitors in
the world. It will also help to understand and evaluate plans, policies, and strategies of the
competitors across the world. PESTEL analysis is the dynamic and effective mechanism in order
to gain the competitive benefits in the Australia. Along with this, the company can use SWOT
analysis and porter five forces model to analyze and evaluate the strengths and weaknesses of the
competitors in the world. The company cannot enter into the Australian market without using
Pestle analysis (Baker and Saren, 2016).
Recommendations and Conclusion
It is recommended that AeroVironment should maintain visual line of sight while the
drone is flying. The pilots should get a remote pilot airman certificate to supervise the work of
the others. The drone operator should be over 16 years old. If the company wants to expand its
business in Australia then it should provide proper training and guidelines to the Drone pilot. It
will help to increase the confidence level of the pilots. The company should explain and describe
the benefits of the drones to the people (Gamble and Thompson, 2014). Further, the company
should take a license from the Australian government to start the business of the Drones in the
Australia.
The drones should not fly higher than 400 feet and packages should be carried by the
drones. The package should be less than 55 pounds. Further, the company should follow rules
and legislation which have been made by the Australian government. If the company wants to
start the drones business in Australia then the firm should obtain an electronic registration. The
company should focus on the advertisement and promotional strategies to increase the sale of the
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Marketing strategy and plan
drones’ product in the Australia. In this way, the company can explore and flourish its trading
activities and operations in Australia (Schellhorn et al, 2015).
On the above aforesaid information, it is concluded that AeroVironment is one of the
largest suppliers of the drone’s products. It is the energy and aerospace industry. In today’s era,
the company is expanding its business activities in Australia. Therefore, PESTLE analysis is
done by the company to beat the competitors in the Australia. The company should focus on the
marketing strategies of the country. It should also focus on the business level strategies to
generate more profit and revenue in the global market. Pestle analysis manages and controls the
risks and challenges of the market. In this way, the company is able to make a good image in the
global market. Further, the company can use SWOT analysis to attain various long-term benefits
in near future. This analysis help to minimize and reduce the future risks and challenges in the
Australia. In this way, the company can set up its drones business in Australia.
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