Strategic Marketing Report: Expansion of Ashanti Marketing Solutions

This report presents a strategic marketing analysis for Ashanti Marketing Solutions, a UK-based company offering promotion and advertising services. The report focuses on the company's potential expansion into Germany, introducing web design as a new service. It utilizes PESTEL analysis to assess the macro-environment, critically evaluates various market entry modes, and applies the STP model for market segmentation and targeting. Furthermore, it examines Porter's generic strategies to identify competitive advantages. The report recommends web design services and Germany as a target market, highlighting the country's strong economy and technological advancements. It also discusses strategic alliances, mergers and acquisitions, joint ventures, and foreign direct investment as potential market entry modes, with a joint venture being recommended. The STP model is used to explain market segmentation, targeting and positioning. The report concludes with a discussion of how the company can effectively make strategic decisions.

Strategic marketing
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EXECUTIVE SUMMARY
The report has covered strategic marketing strategy for Ashanti marketing Solution
Company. The company established at United Kingdom and provides various services like
promotion and advertising services. This report had been generated different marketing strategy
for company for expanding in Germany with new services that is web design. For analyzing
affect of environmental factors uses PESTEL analysis model. The main aim of producing report
the company can use effective decision making by covering different aspects of segmentation,
targeting and positioning strategy, and porter generic strategy.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Recommend a product and services, Macro environment analysing by using PESTEL.............4
Market entry modes.....................................................................................................................6
Concept of market segmentation and targeting...........................................................................8
Porter generic strategy...............................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Strategic marketing is ongoing planning process through which company creates different
marketing strategies and plan which is implemented within the target market in effective manner.
This process is undertaken into the account current position of company, that is help to
identifying promotional opportunities and evaluating those opportunity. The present report is
based on Ashanti marketing solutions limited company which is provide a strategic marketing
services and products like promotion, advertising to their clients. A company wants to enter a
country with product and services. This report will cover macro environment by using PESTEL
model in order to analysis opportunity and threats. Report will critically assess entry modes for
going into other country. This will concept of market segmentation and targeting for evaluate
potential target market. At the end of report will highlight porter generic strategy for analysis
competitive advantages.
MAIN BODY
Recommend a product and services, Macro environment analysing by using PESTEL.
Ashanti marketing solution company is marketing firm which deals in various marketing
services such as promotion, advertising etc. Now a company wanted to expand their business by
going into another country with new product and services (Ansoff and et.al., 2018). This help to
increase new customers’ base, sales, market share as well as profit margin in effective manner.
As per that below is mention some recommendations are as follows:
Recommend product and services:
Now a day market is completely depends on digital marketing by making wed sites and
web design for promoting product and services. This will include such as development branding,
websites, visuals interface, user experience and search engine. As per that here is recommend for
Ashanti Solution Company is new product development for customers use the web designing and
life time discounted services for first 10 clients. Targeting customers with new services with this
company is beneficial to expand business and attract more customers as well as increase profit.
Recommend new country:
Germany is European market to enter with the new product and services at market place
are very beneficial for Ashanti marketing solution company is UK firm. This highly developed
country and have largest economy in Europe. This has fastest growing and good opportunity in
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order to grow in effective manner. Here is recommended for company is product which is very
useful with fewer competitors, increase market share, increase attraction of potential customer.
There are various macro environmental factors which impact to organization at an
external level. In order to analysis those factors here is select PESTEL analysis model is help to
track environment to lunch product and services.
Political factor:
Political factors applies at their government tends to influences economy and business
environment by including tax policies, fiscal policy and others. The company want to enter into
Germany market, in that have need to analysis polices and tax rate with its affect to business. For
example: tax rate of Germany like corporate income tax and trade tax is 20% to 33% if in the
future its increases the it’s create threat for company and create less profit. In contradict it
decreases tax rate then it is create higher profit margin for company.
Figure 1: PESTEL ANALYSIS
(Source: PESTEL analysis of Germany, 2019)
Economical factor:
Economic factors include interest rate, influences rate, foreign exchanges rate and pattern
of economic growth. Germany economy is fastest growing in Europe with a strong GDP
(Vishnevskiy, Karasev and Meissner, 2016). This is highly beneficial for Ashanti marketing
solution due to higher demand, gaining profits and market share. On the other side, if rises
inflation rate affect product price rate of company.
Social factor:
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Germany is the one of the best country to live in terms of wealth, health, quality of life
and education sector. In the country size of population in each area and customer give preference
to gathering information for identify target product. As per this, this is beneficial for company
and other having high demand in this market for web designing can be more suitable for
company to enter.
Technological factor:
Technological factor can affect to the operations of company in terms of innovation as
well as creativity (PESTEL analysis of Germany, 2019). It is very important to have more
effective and efficient process is help to become a faster and useful. Germany have greatest
technology same as UK that is costly. In that management of Ashanti need to sets effective
budget for inveting in technology.
Environmental factor:
This includes surrounding environment like climate, weather and pollution. This is
important and effective for Ashanti to research about the environment in Germany like area,
level of pollution and eco friendly techniques.
Legal factor:
There is considers several laws and regulations affect to business environment with
certain policies within the country. For example consumer law is refer with customer have right
to a minimum guarantee on products and services. As well as employment law also effectively
considers within the Germany (Chaffey and Ellis-Chadwick, 2019). As per that, if company done
any fraud with customers then its affect to business in negative manner.
Threats affect to business like market risk in that company required effective trained staff
for developing web design is help to get effective success at Germany.
Market entry modes.
For entering within the Germany there are different models used by companies in order to
decide best entry mode. In respect of that, for Ashanti marketing Solution Company here is
analysis different entry modes and select one best entry mode for company by collecting data
like risk level, competitive edge, issues and other aspects.
Strategic alliances:
A strategic alliance is the sets and arrangements between two or more parties in order to
undertake a mutually beneficial project. This is less complex. Strategic alliances is refers with
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two or more companies accept set of objectives in order to working together but remaining as
independent. This may be suitable for the company to decide work together in forming alliance
in different projects and market strategy. In the case of Ashanti marketing solution company
strategic alliances may effective work with other agency in same industry at market place for
complete project (Chernev, 2018). In that new project which is web design model not be
effective because of market where company entered. This have some of advantages and
disadvantages for the company which has need to understand by management of Ashanti
marketing solution company are as follows:
Advantages:
 This allows all the parties for reaching out on their goals and objective in faster manner.
 This will be expanding upon the customer segments.
 This gives complete access to company for reaching out greater level of innovation.
 This gives access for getting positive brand awareness about business.
Disadvantages:
 It may encourage good employee for crossing over intermediaries.
 This creates conflicts in ownership claims.
 This creates clashes within the culture and lead to the discrepancies of interpretation.
Mergers and acquisitions:
Hose are the strategies which are used process to get ownership of companies, join
together with other kind of business and work operations. Ashanti management is take decision
take over another business and a merge or decide to acquisition instead working with other
business on specific project. This can be more effective and beneficial for business to increase
market share and economic scale of company in effective manner like decreasing cost if merged
company (Spyropoulou and et.al., 2018). There are having two kinds of merger such as vertical
and horizontal. Horizontal merger refers merging business at the same stage of projects and
expanding business activities into geographic regions. As per that company is able to identify
other marketing companies which already exist at market place. On the other side, vertical
integration refers working together business at different stages of production. There are mentions
benefits of vertical merger are as follows:
 To gain access of distribution channels which otherwise inaccessible.
 This help to reduce transportation cost (Felix, Rauschnabel and Hinsch, 2017).
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 Help to make better planning, coordination and scheduling with effective profit margin.
Joint venture:
This is also the type of strategic alliances in order to use in the market place and entity.
This applies in management contract, franchising, licensing and sub contracting agreements
which are depends on level of companies’ joint venture and its market share. This creates various
benefits for company which are as follows:
 Access the new market and distribution network.
 This help to increase capacity and sharing risk or costs.
 With the help of this company is able to access new knowledge and expertise.
Foreign direct investment:
This is an investment of controlling ownership within the business from one country to
another country. For entering into German country this is important and effective approach
which is used for Ashanti marketing solution company because that can take full control on
market especially with the new product launching. This is benefits from its market share and
increase customer and retain profits (French and Gordon, 2019). This creates some of the
benefits which are explained are as follows:
 Increased employment and economic growth.
 Effective development human resources and increase exports of products and services.
As per that, planning for strategic market entries for Ashanti marketing solution company
is reduce costs and level of risk in entering markets is best for company to start with as joint
venture. This is effective form of franchising and licensing agreements for the safer side. This is
the best option for Ashanti marketing Solution Company for entering in Germany market in
order to gain market share and increase awareness with their brand name and customer’s
recognition.
Concept of market segmentation and targeting.
In order to analysis market segmentation and targeting, here is select STP model. That is
effective and valuable help to analysis market segmentation, targeting and position of product
and services at market place in effective manner. Explanation of this model is as follow:
Market segmentation:
Market segmentation is very important part for the company to analysis their target
market and divide customer group into different groups or segments. Companies are deciding to
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create separate product for each segments or same product target within another segments (Hitt,
Ireland and Hoskisson, 2016). This can helped to company for enhance profits by segmenting
markets, businesses can raise average prices as well as increasing effective sales of product and
services. There are different categories of market segmentation are as follows:
 Demographic segmentation is related with customer income, earning, classification and
gender. The company Ashanti marketing solution can prefer this in order to knowing
about preference of customers in effective manner.
 Geographical segmentation refers with area and region like local, national rural etc. this
help to company to target specific customers segmentation in effective manner.
 Behavioural segmentation is reflecting the behaviour of customer like price of product,
offers, promotion decision making. This is beneficial for Ashanti marketing solution
company due to this company is able to retain offers and price for customers.
 Physiographic segmentation applies with attitude, opinion, interest and product. This is
also effective for company because through that management is able to get feedbacks
from customers and make changes as per requirements (Hollebeek, Conduit and Brodie,
2016).
Based on the segmentation, it is important to have effective stage which is provide a best
targeting strategy for Ashanti marketing Solution Company at Germany market. Targeting
strategy is based on the sales of product and services which is depending upon decision making
process of company in effective manner. The target market is reflecting with segmentation,
targeting and position of company in appropriate manner. positioning of company is refers with
product, price, place and promotion strategy of company at market place. The company Ashanti
marketing solution company is decide a wide range of product and services which web designing
for entering Germany market. In this, company target to professional and small medium firm.
Those have willing to provide designing websites or new layout for business. There are different
types of target markets:
 Niche marketing has aim to small proportion of market with few customers. As per with
Ashanti marketing solution is defined group of customers and meeting as per customer
needs (Hollensen, 2019).
 Mass marketing where company is sell same generic product to all with its customers.
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 Selective marketing where company provide different types of products at different types
of customers segments. As that company target different customers and products.
Positioning:
Position is refers with at there customers and market identified position of competitors
strength and weakness. The purpose of analysing position of company is help to keep ahead with
competitors and understanding effective market place. In order to analysis position of company
here is include 4P’s of marketing are as follow:
 Product: A new service lunch within the Germany is wed design.
 Price: pricing strategy is depending upon packages on designing web sites and long life
discounted services for first 10 customers.
 Place: convenience as per customers as well as online services.
 Promotion: for that company uses different promotional tools like advertising, poster,
online marketing and meeting with people or build positive relations with them in
effective manner.
As per that, to position of new product at Germany market place by targeting customer with few
segments like small medium sized business and professional business parties is good (Jansson
and et.al., 2017). Company is promoting their business by creating effective awareness of new
product can be costly as per requirement.
Porter generic strategy.
Porter generic strategy is best and effective decision making tool which is relative with
position within the industry for determining whether a firm highly profitable within the market
place. This is based on fundamental of above average profitability in the long sustainable
competitive advantages. There having two types of competitive advantages a firm can possess. In
respect of Ashanti marketing Solution Company is able to combine all the activities which
company wanted to achieve (Rothaermel, 2016). For that company have needs to lead generic
strategy to achieve average performance within the industry such as cost leadership,
differentiations and focused strategy. Complete explanation of all the strategies is as follows:
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Figure 2 PORTER GENERIC STRAETGY
(Source: Porter generic competitive strategy, 2016)
Cost leadership:
Cost leadership is refers with price and rate of product. In this companies have complete
focus on their cost. Company sets out for becoming the lower cost product within the industry.
The main sources of cost advantage are varied and depend on structure of industry. n this
company includes the economies of scale, technology and another factors. The lower cost is help
to find out and exploit all those factors which are related with cost advantage (Lasserre, 2017).
However, if Ashanti marketing solution company is use this, then company is able to achieve
and sustain the cost leadership. It will help to get above average performance within the same
industry.
Differentiation strategy:
Differentiation strategy is refers with differentiate product and services at market place
by adding some unique features in product and services (Percy, 2016). Is select one best and
more attributes which many buyer in an industry is important and adding unique features for
meet those needs of customers. That is rewarded for its uniqueness with premium price.
Focused strategy:
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The focused strategy is the generic strategy which is focus on the choice in the narrow
competitive scope at industry.
 Cost focused strategy is refers with the cost advantage in target segment.
 Differentiation focused strategy is refers with differentiate in its target segment.
Both the variants of focus strategy on differences between focuser target segment and other
segments in industry (Porter generic competitive strategy, 2016). The target segments have buyer
with unusual needs or else production and delivery system is best serves target segment must
differ. Cost focus differences in cost behaviours in various segments, while differentiations focus
special needs of buyer segments.
As per the above explanation, the best generic strategy for Ashanti marketing Solution
Company is focused strategy. This help to company for making product and services as per
customer requirement by making proper focused on cost and differentiation. With the help of
cost focused strategy management of company able to sets package for customers using web
design as per requirement and parameters (Piercy, 2016). On the other side, focused on
differentiation strategy had helped to business for making focused on uniqueness about product
and services. That had been helped to Ashanti marketing Solution Company for making different
product and services at lower cost. This strategy is give positive impact on company which is
fulfilling the needs of customers as per their requirements. But, that is not possible for each and
every time to address uniqueness within the product and services.
CONCLUSION
From the above study it had been concluded that the, strategic management has very
important and effective for the business. This has helped to business for getting effective success
at market place. The report had covered with some of recommendations for product and services
as well as country. The best recommended product for company has we designing. With the help
of PESTEL model, company able to analysis opportunity and threats which had affect to
business at the time of entering into Germany. This had been effective and valuable for the
business in effective manner. Merger and acquisition, joint venture and strategic alliances had
the best entry modes which helped to company for entering into new market with new product
and services. Joint ventures has best entry mode for company which had helped to company for
gaining best marketing share and increasing awareness through their brand name. Market
segmentation has helped to analysing product position and target for company. This has covered
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porter generic strategy in order to analysis best generic strategy which had been helped to make
best strategy for company.
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REFERENCES
Books and Journals
Ansoff, H.I. and et.al., 2018. Implanting strategic management. Springer.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
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.
French, J. and Gordon, R., 2019. Strategic Social Marketing: For Behaviour and Social Change.
SAGE Publications Limited.
Hitt, M. A., Ireland, R. D. and Hoskisson, R. E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Hollebeek, L. D., Conduit, J. and Brodie, R. J., 2016. Strategic drivers, anticipated and
unanticipated outcomes of customer engagement.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Jansson, J. and et.al., 2017. Commitment to sustainability in small and medium‐sized enterprises:
The influence of strategic orientations and management values. Business Strategy and
the Environment. 26(1). pp.69-83.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Percy, L., 2016. Strategic advertising management. Oxford University Press.
Piercy, N. F., 2016. Market-led strategic change: Transforming the process of going to market.
Taylor & Francis.
Rothaermel, F. T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Spyropoulou, S. and et.al., 2018. Strategic goal accomplishment in export ventures: the role of
capabilities, knowledge, and environment. Journal of the Academy of Marketing
Science. 46(1). pp.109-129.
Vishnevskiy, K., Karasev, O. and Meissner, D., 2016. Integrated roadmaps for strategic
management and planning. Technological Forecasting and Social Change. 110.
pp.153-166.
ONLINE
PESTEL analysis of Germany. 2019. [online]. Available through: <
https://www.howandwhat.net/pestel-analysis-germany/>
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Porter generic competitive strategy. 2016. [online]. Available through:<
https://www.mindtools.com/pages/article/newSTR_82.htm>
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