Strategic Marketing Report: Arrival Company's Argentina Venture

This report provides a comprehensive strategic marketing analysis for Arrival Company's expansion into the Argentinian market. It begins with an executive summary and introduction to the company, which manufactures electric vans and plans to introduce driverless vans in Argentina. The main body delves into a PESTLE analysis to evaluate the political, economic, social, technological, legal, and environmental factors influencing the business environment. The report then examines various market entry modes, recommending strategic alliances. Further, it covers market segmentation and targeting, suggesting a focus on high-income demographics. Finally, it applies Porter's generic strategy framework, advocating for a differentiation leadership strategy to achieve a competitive advantage. The conclusion recommends Argentina as a promising market for the company's expansion with its new driverless van technology.

STRATEGIC
MARKETING

EXECUTIVE SUMMARY
This report is all about the strategic marketing and manner in which it help a business to
achieve sustainability at marketplace. The marketing strategy contains set of tactics which
support an organisation by providing guidance regarding the work they must perform in order to
achieve desired objective at marketplace. For this report The Arrival has been considered,
which is a UK based automotive company and headquartered in London. It manufacture and
market smart vehicles that operates with the help of electricity in order to reduce the dependence
of people from diesel or petrol and reduce pollution. The Arrival now want to expand its
business in Argentina by launching a new van which manufacture over new technology i.e.
“Driverless”.
The current report is sectioned into four part in which first one elaborates about the
analysis of several micro environmental factor to determine the future growth opportunity. From
this it has been found that government is supporting the businesses that bring new technology by
reducing the legal issues. In section two there is a description regarding several entry modes that
can be adopted by Arrival company to enter into Argentina market. From this it has been found
that company must adopt strategic alliance which provide company an advantage of getting
access to resource, technology and knowledge of its partner.
Section third contain a description regarding market segmentation and targeting that must
be performed by Arrival company before entering into market of Argentina. From this it has
been the segmentation of company would be on demographical basis where target market would
be High income people. At last, in section four there is a description regarding porter's generic
strategy framework to formulate tactics in order to deal with market competition. From this it has
been found that differentiation leadership would be best strategy that help Arrival company in
achieving competitive advantage. Hence, it is recommended to Arrival company that Argentina
is an emerging market for Automotive sector and best place to expand the market by launching a
brand new Driverless Van.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE.......................................................................................................................................2
Market entry mode......................................................................................................................6
Market Segmentation..................................................................................................................7
Porter's generic strategy..............................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic marketing is defined as way through which a firm become able to differentiate
its product or services from other by capitalising its strength for providing better value to
customer then its competitors (Proctor, 2014). It support in formulating set of action execution
of which help in fulfilling the customers need and want by taking effective decision. Under this
project, Arrival Company is taken into consideration which is headquartered in London. It
manufactures smart and electric Vans in order to providing having vehicle that can run without
petrol and diesel (The Smart Electric Van, 2019). Now it has decided to bring driverless vans by
expanding business in Argentina. This report consist of detail discussion regarding macro
environmental analysing using PESTLE to determine threats and opportunities. It also includes
explanation of various entry mode that can be used to enter in new market. Further, it contains
discussion regarding market segmentation and targeting and implementation of Porter's generic
strategy for achieving competitive advantage.
MAIN BODY
The Arrival company is an London, UK based automotive organisation that manufacture
and market the smart electric vans. The main aim of company for providing electric vans is to
provide a vehicle that doesn't require any petrol or diesel and also support in reducing air
pollution. Now, company want to expand its business into another country i.e. Argentina, as
there is a greater opportunity within automotive sector (McDONALD, 2016). Arrival company is
planning to bring new technology in Argentina market i.e. driverless van in which people have to
only adjust the destination they want to visit. This van will be first charged using electricity and
then as per the instructions entered into the system. But before entering into new market and
performing business operations, it is very essential for company to understand the environment
in which they are going to work. This help in determining several threats that can affect the
business so that proper strategies can be formulated to deal with these situations. In addition to
this, it also help in identifying the growth opportunities that contribute toward the sustainability
of business operations. Hence, to perform macro environment, a tool named as PESTLE can be
used that support in evaluating several factors present in external environment such as political,

economical, social, technological, legal and environmental factor that can affect business
operations.
PESTLE
It refers to a framework that evaluate several factors present in business surrounding for
understand the environment and determining several opportunities or threats present over there
that can harm business (Zalengera and et. al., 2014). With the help of PESTLE analysis Arrival
company being able to identify several threats and opportunities present in Argentina that must
be consider during the formation of policies and tactics. Following are the attribute that consider
under PESTLE analysis:
Political:- The factor evaluate about the degree of involvement in the practices of
country and manner in which it intervenes. It includes governmental law, tax policies, trade
restriction, relationship among two countries etc. Argentina is consider as one of the most
wealthiest country within South America because it has large amount of mineral and agricultural
resources (Racz and et. al., 2018 ). Its government has contributed to larger extend for getting
more business developed in country by improving the regulatory framework.
Opportunity Threat
This initiative of Argentina's government
provided best opportunity to Arrival company
because the government is supporting
innovations and new business to setup their
operations with an aim to develop country.
Hence, Arrival company get support from
government in getting licence for performing
their business operations in particular area and
may also get financial support (Argentina
PESTEL Analysis, 2018).
The Argentina's government put more
emphasis toward improving the regulatory
framework for ensuring proper business
creation. This increases the intervention of
government in each action performed by
Arrival company which creates issues as it has
to take permission from government before
performing any action in term of establishing
plan, performing trade activities, using new
technology etc. In order to overcome this
company can hire a lawyer who can guide over
the actions to be taken and also help in taking
permission from government for particular
action.

Economic:- This factor includes attributed like inflation, deflation, exchange rate,
economical growth, interest rate etc. which have a direct influence over company's performance
at marketplace. After facing the economic crises government of Argentina is focusing toward
improving the condition of country by working over enhancing the infrastructure for attracting
investors. The Argentina have GDP rate of approx US$628 billion and listed under one of the
largest economy in America (Overview, 2018). Apart from this Automotive industry of
Argentina is a growing sector as it is encouraging larger number of companies to enter and
establish their business by reducing the obstacles from regulatory framework.
Opportunity Threat
It is biggest opportunity for Arrival company
as it get better infrastructure because country
holds up high flow of fund from other country.
The FDI of Argentina was marked around
11,857 million dollar in year 2017
(ARGENTINA: FOREIGN INVESTMENT,
2018). Hence, by getting expansion in
Argentina, Arrival company will get an
opportunity of having access to fund required
for performing operations as it is planning to
bring driverless car that require huge
investment in technology.
The inflation rate of country is increasing day
by day because various organisation are
establishing their operations in order to offer
new product or services. As a result of which
resources get limited and Arrival company
have to import raw material or other resources
from home country which increase the cost of
production and product as well. In order to
overcome this threat Arrival company can form
up a strategic alliance with local business that
support company in getting access to resources
much easily.
Social:- It includes several factor like cultural norms, trends, shared belief and attitude of
people within the society in which a company is performing its business operations (Argentina
PESTEL Analysis, 2018). The Argentina is facing a sever issue of unemployment due to
increase in population rate.
Opportunity Threat
The biggest opportunity for Arrival company The major threat in front of Arrival company

as they get easy access to labour for working
on its manufacturing plant of driverless vans.
This also support in saving the cost of Arrival
company as they don't have to bring
employees from home country who demand
for higher pay (PANDEY, 2017).
is that increase in unemployment rate has
reduced the per capita income of individual
that lives in Argentina. Hence, the major threat
is that people of country doesn't have such
income that they can't invest in such high
technology. In order to resolve this issue
Arrival company may use such machineries or
resources that help in performing operations at
lower cost without compromising over the
quality of product. Hence by reducing
operational cost company can reduce market
cost of its new “Driverless van”.
Technology:- This includes analysis of new technology emergence, technological
advancement etc. which influence the operations of company. The government of Argentina
country is focusing toward strengthening the R&D capacity and automotive part manufacturing
by attracting investments from foreign with an aim to improve technological base of country as
country is has found drop in vehicle sale (Aguilera, Sammaritano and et. al., 2016).
Opportunity Threat
The competition is relatively lower in
Argentina because the technological level is
not much advanced as the automotive industry
doesn't bring anything new which also
minimised its sale. Hence, the biggest
opportunity in front of Arrival company is that
by launching new driverless van company
become able to rule over market.
The biggest threat in front of Arrival car is that
driverless car is totally a new technology for
the Argentina country which require more
investment in technology. This may create
several issues for Arrival company as they may
not get technical experts with that much
knowledge or resources may also be harder to
found. For overcoming this, Arrival company
can take some of their technical experts from
home country to Argentina with them who can
provide training to other hired technical experts

of host country to perform operations
effectively.
Legal:- This factor evaluate all the laws and legislations that are formulated by
government such as health & safety, employment law, consumer protection act etc. For brining
more and more innovational practices in country the government of Argentina is focusing toward
improving the regulatory structure. In addition to this it also provide companies an option of
“window dressing clearance” i.e. starting up business with limited legal formalities which want
to enter into country with some new ideas.
Opportunity Threat
This is the greatest advantage for Arrival
company as they can start performing their
business operations to manufacture the
Driverless car in Argentina without following
any strict legal formalities or procedures. This
in turn also reduces the compliances related
with setting up operations and help in reducing
cost.
The easy entrance at emerging market also
attract other players to enter by brining new
ideas and setup monopoly with unique
technology. This is the biggest threat for
Arrival company as this option attract others
which in turn increases the competition for
company. For overcoming this, Arrival
company put more focus over the system that
help in reducing the chances of accident on
road.
Environmental:- It basically includes factors that may affect the operations performed
by company such as changes in climate, weather etc. With the increase in population rate their
has become the overexploitation of natural resources in Argentina in term of deforestation which
in turn also created the air and water pollution.
Opportunity Threat
The biggest opportunity for Arrival company is
that it already offer the vehicle which operates
through electricity that doesn't emit carbon and
hence reduce air pollution. Because of this
With the overexploitation of resources and
increase in pollution the government of
Argentina become more restricted toward the
laws and regulation related with the safety of

advantage Arrival company already get
acceptance by government for starting up its
operations.
ecological system. This is the major threat
which may affect the operations performed by
Arrival company as the manufacturing site may
emit carbon which leads to air pollution. In
order to overcome this issue company must
firstly check the machinery and try to use only
those one that doesn't emit carbon and as per
the standard fixed by government of Argentina.
Market entry mode
There are number of methods through which a company enters into new location in order
to market its product or services. The Arrival company is planning to enter into another country
named as Argentina for launching a new van model which is based on Driverless technology.
The main concept of driverless van is that it includes a system which ask the rider about location
over which they want to arrive (Ang, Benischke and Doh, 2015). After taking command it run by
its own without any driver to that particular location within less possible time. This technology is
being launched with an aim to reduce the risk of accidental event as the vehicle is now operated
with the help of Artificial intelligence. In this system will predict in advance regarding the move
of other vehicles running over same road so that happening can be controlled.
This technology will be new in Argentina which provide a greater growth opportunity to
Arrival company by provide them an option to rule over market. But in order to achieve success
in this it is very essential for Arrival company to firstly analyse the method through which it
must enter into market that provide greater growth and success. Following are the different type
of market entry mode through which company can enter into new market:
 Licensing:- It is a kind of entry mode in which a company permit the another firm to use
brand name, trademark or other intellectual property of the company in order to sell
product or services within overseas market. In order to expand its business, The Arrival
company can provide licences to one of the automotive seller which operates its business
in Argentina to sell the “Driverless vans ” in country on behalf of Arrival company for
particular time period and after getting market acceptance, it may set up its company in
that country (Tulung, 2017). The main benefit of using Licensing is that Arrival

company become able to enter into internation market without any political risk because
licensing involves dealing with local businesses. But the drawback of this entry mode is
that licensee partner may leverage the knowledge of company and become the future
competition of business.
 Strategic alliance:- This is a kind of legal agreement between two or more companies in
order to pool up their resources or technology for accomplishing certain objectives. The
main aim behind using strategic alliance is to expand the capacity of production and
increasing the market share by access the customer of other partner. By using strategic
alliance for entering into Argentina, Arrival company become able to access the
technology, manpower and capital of another partner. This will be more beneficial for
Arrival company as it become able to get access to its partners manufacturing site as well
as technical expertise or resources much easier which help in minimizing the expansion
cost of company in term of recruitment, importing, training & development.
 Joint venture:- It is a type of strategy used by organisations to enter into new market by
getting connected with another company. Joint venture is basically a kind of agreement
among two companies for working over a particular project where they decided to share
resources and knowledge (De Villa, Rajwani and Lawton, 2015). By using joint venture
as entry mode, arrival company become able to get access of better resources such as
expertise staff, technology etc. which provide an opportunity to have new insight that
support in performing operations much effectively. But the major drawback of this
Arrival company has to share its ownership and only be able to take decision after getting
permission by another partner which is time consuming process.
These all are entry modes that can be used by Arrival company but among them all,
Strategic alliance is most suitable entry mode to expand business in Argentina for launching a
“driverless van”. In this company can form partnership with another well established automotive
firm for limited time period where it get access to technology, manpower and other resources
with an aim to mark its presence in new country. Once the plant get established and Arrival
company launch its car, companies can end up their agreement and operate solely.
Market Segmentation
It refers to the process of breaking down market or consumer group in small chunks in
term of homogeneity among the characteristics shared by customers such as interest, location or

need. The market segmentation is very essential as it help a company to serve the customer as
per their special need or requirement (Weinstein and Cahill, 2014). The Arrival company is
planning to expand its business by launching a brand new Driverless Van in Argentina by
accessing the growth and development opportunity. Hence, it is very essential for company to
access the need of customer and then divide in segment as per their need as well as expectation.
The Arrival company will divide its market on the basis of demographical segmentation
in order to get right group of people who are expecting such kind of product. Under
demographical segmentation the market is divided in term of age, population, income,
nationality, gender, family size etc. The Arrival company is trying to expand its business in new
country i.e. Argentina by working over “Driverless van technology” which is totally a new
concept for that country (Dietrich, Rundle-Thiele and Kubacki, 2017). Therefore the production
cost will be higher as the price of that van also be kept high in order to recover the
manufacturing cost from profit. Hence the company will divide the market on the basis of
demographical segmentation and main focus will be on income level of people. Before
expanding its business it is very essential for Arrival company to identify the income level of
people living in Argentina and capacity to expend fund.
Target market:-
Target market is defined as particular group of people over which a company aimed all
its promotional activities for influencing them to purchase product or services. In order to launch
its new driverless car in Argentina the target market of arrival company will be high income
people because it is new technology which required more advanced and costly resources for its
production. Hence the cost will be higher which can be afford by high income people. But in
order to setup its business effectively company firstly target high income people and then the
potential customers would be business man.
Porter's generic strategy
In order to establish its business effectively and achieving sustainability in new market,
the Arrival company must formulate effective strategies as they provide guidance regarding the
path that must be opt for accomplishing goals and objectives. For formulating effective startegies
to perform operations in effective manner that support in achieving competitive advantage
Arrival company must use Porter's Generic strategy (Brenes, Montoya and Ciravegna, 2014). It
is basically a framework which evaluate the industry in order to determine whether the

profitability is below or above the industry average and strategy through which it can achieve
competitive advantage. Porter's generic involves three strategies that are explained below:
Cost leadership:- This strategy provide two basic options to an organisation where it
may either sell its product & services at lowest possible prices or may target larger market share
at average price. Within these two situation the cost leadership strategy suggest to keep the prices
of product as much low as possible. But this startegy can only be adopted by an organisation
which posses sustainable capital at their disposal or have the capacity to reduce its operational
cost in term of workers and material (Alstete, 2014). If the Arrival company want to adopt this
strategy then it have to keep the price of its Driverless van at average i.e. lower then that of its
competitors. For this it has to work over internal process and try to keep the production cost
minimum. But as the driverless technology is new for the market of Argentina which require
advanced technology for developing such system and if company uses this strategy then it won't
be able to gain profit.
Focus strategy:- According to this strategy a company must target a niche market and in
that it must try to achieve either differentiation or cost advantage. In order to achieve cost
advantage, company must target a small segment and offer its product or services at relatively
lower price. Apart from this in differentiation focus strategy company offers unique product or
services in a market where very little or no competition present. But before offering at
differentiation company have to build up its strong brand image. For instance, Arrival company
can implement this strategy in order to serve customer differently in Argentina as per their
unique need which support company in achieving sustainability at new marketplace. The Arrival
company doesn't want to stay aliened with single segment of customer rather it is planning to
increase its focus to other segment of customer i.e. from high income people to business people,
high class group and many more and this strategy focus only on single segment of customers.
Differentiation leadership:- It refers to a strategy that suggest a company to bring up a
new product or service which offers unique benefits that would be valued by customer. The
value added by uniqueness of product allow firm to market its product at premium price which in
turn also support in achieving competitive advantage at marketplace (Salavou, 2015). For
instance, with the implementation of this strategy the Arrival company become able to sell out its
Driverless van at premium price which also support in overcoming cost incurred in production of