Strategic Marketing Report: E&A Pure Beauty in Australia

This report, prepared for Ashanti Marketing Solutions, provides strategic marketing recommendations for E&A Pure Beauty to launch its beauty products in the Australian market. It begins with an executive summary and an introduction to strategic marketing. The report then performs a PESTLE analysis of the Australian market, evaluating political, economic, social, technological, legal, and environmental factors. It explores various market entry options such as direct exporting, licensing, franchising, and joint ventures, ultimately recommending franchising as the most suitable approach. Furthermore, the report discusses market segmentation and targeting, and suggests the application of Porter's generic strategies. The report concludes with a summary of findings and recommendations, providing a comprehensive guide for E&A Pure Beauty's market entry strategy. This report is contributed by a student and is available on Desklib.

Strategic Marketing
Executive summary

In accordance with the present report it will base on strategic marketing which is
necessary for the Ashanti Marketing limited to launch their beauty products in the new market.
Along with that, it will look upon the modes of market entry with the help of which promote the
products in that particular market. Apart from that, report will explain about the market
segmentation and targeting customers which is perfect for the company. Apart from that, report
will explain about the market segmentation and targeting customers which is perfect for the
company. Adding to more, it will also suggest the company Porter’s generic strategies which
helps to select the best strategic planning.

Table of Contents
INTRODUCTION ..........................................................................................................................1
PESTLE Analysis ...........................................................................................................................1
Market-Entry Options......................................................................................................................3
Market Segmentation ......................................................................................................................5
Porter's Generic Strategy.................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journals..........................................................................................................................9

INTRODUCTION
Strategic marketing is the ongoing process in terms of achieving the long term goals. It is
the forward looking approach in terms of planning to maintain the sustainable growth of the
company in long term. Present report is based on how as a consultant of Ashanti Marketing
Solutions will advise E&A Pure Beauty company to enter into the Australia market such as
Herbal Beauty to sell it products in the For which they will be taken Australian cosmetic market.
As a result the report intends to engage in PESTLE analysis of Australia in order to market.
Besides this, it will cover the threats and opportunity in the country in order to earn the
maximum profit revenue. Along with that, it will look upon the modes of market entry with the
help of which promote the products in that particular market. Apart from that, report will explain
about the market segmentation and targeting customers which is perfect for the company.
Adding to more, it will also suggest the company Porter’s generic strategies which helps to select
the best strategic planning.
PESTLE Analysis
Australia has been shown as growth country in last few decades of 2001 to 2011. Even at
the time of recession (Chernev, 2018). The expected growth of GDP with a 3.9% CAGR over the
next five years. It involves high opportunity for manufacturing, retailers mining. More about
Australia market is given below with the help of PESTLE analysis.
Political (P): Political factor is the first factor of macro environment which affects the
business organisation (PESTLE Analysis of Australia, 2017). In these factors government may
influence the economy or an industry. Political decision making results may affect the business
activities. Australia is the safe destination for investment. It is the great opportunity for Herbal
Beauty to market the herbal beauty products in Australian market (Foxall, 2014). Besides this
Australian than UK, Canada and other countries. It is beneficial for the company to introduce
their Herbal Beauty to sell it products in the chosen country. Political factor may impact on
E&A Pure Beauty in terms of changing in governmental policies and approaches. For example
Australia has increased the interest rates of the companies in that situation E&A needs to
enhance their product prices in order to meet the interest rates.
Economical (E): Economic factors refer to the country economic performance which
affects directly to the industry or companies. Economic factors include change in economic
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conditions, economic system, government policies, import and export policies plus industrial
policies (Hun, 2015). In case of Australia, it is the largest capitalist economy in the whole world.
As per the business statics, most of the businessman prefers to open services in the Australia
market. There are many reasons for which the businessman wants to work in Australia such as
continuous economic growth, less unemployment, strong and stable financial growth plus open
market with minimum restriction. Australia is the best option to market Herbal Beauty products.
Strength : Better economic stability of the company will help E&A to stable their profit
revenues and growth.
Limitation: lack of stability in economy will impact negatively due to which company facing up
and down in profit ratio.
Social (S): Social factors refers to the society, customs, culture, consumer behaviour,
values and beliefs (Liebl, 2018). Changes in demands of the customers may occur huge
challenges for businesses or an industry. In the case of Australian people, they are the population
of diverse people. More people are educated and well managed. It is easy for the companies to
earn annual sales revenue by providing the best services or products to the customers. It will
become easy for the company to market their Herbal beauty products in the Market and earn
maximum sales profit.
Strength: The best quality and services will give more good image in the market.
Limitation: social factors affect directly on the company sales if company dealing with low
quality of products.
Technological (T): Technological factors is the activity of Research and Development,
innovation, technology incentives plus rate of technological change. These factors helps to
reduce the cost, improve quality and lead to innovation. Government of Australia provides the
opportunity for the organisation to adopt innovative environment (McCamley and Gilmore,
2018). Moreover, Australia has effective communication with the industry, universal resources
and with the governments. Moreover, the focus of Australia is on the R&D department.
Technological factors are become beneficial for the company to make its products popular.
Strength: technological factors enhance the productivity and employee enhancement which
provides better services to consumers.
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Limitation: Technological factors involves risk in terms of dependency on internet and lack of
accuracy.
Legal (L): Legal factors is refers to the legal environment within all firms are operated.
This factor introduction of legislations, laws, discrimination, diversity. These all factors may
affect the organisation factors. In case of Australia legal environment, it is based on fundamental
beliefs in the rule of law (Merchant, 2014). All people are treated as same level. In this way, it is
easy for the Ashanti Company limited to marketing the products and services in more effective
manner. In accordance with the Australia constitution of 1901 establish federal system of
government within which powers are distributed between the federal governments. Moreover,
this positive legal environment provides opportunity for the company to enter into the optimistic
market. Australian government has an open efficiency legal framework which provides
flexibility to business. Strong system or balance between judicial laws' enforcement system.
Legal system of Australia has been very strict in favour of customer interest apart from that it
also needs to take care about the
Strength: Legal system stable the healthy and safe environment and ensure the human safety
needs.
Limitation: Legal framework interrupt business policies and activities which creates changes in
the system.
Environmental (E): Environmental factors includes non-living and all living things
around where we live and work. These factors are highly influence by changing in weather or
climate. Along with that, it makes huge changes in farming, tourism and insurance company. It is
the great opportunity for the company to market herbal beauty products which is good for the
skin. It helps to contribute the natural environment (Payne and Frow, 2014). Australia
government introducer many laws to protect the environment such as the whale protection act of
1981. Environment protection act 1978, Protection of the Sea act of 1981.
Strength : Environment helps to introduce new product and services.
Limitations: environment changes needs and wants as per the demand and needs and wants of
the consumers.
Opportunity
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Australia has a big opportunity for investment due to effective and stable economy
(Proctor, 2014). Government provides open system and involves less restriction in growth of
country economy.
Threat:
Low recovery in corporate travel does not occur in line with economic growth.
Due to high competition, industry faces high risk and challenges.
Market-Entry Options
Market entry options are the sources through which new firms or company entered into
the new country or in new industry. This is the tool to through which company deals with the
customers at global or at international level. Market entry modes are very significant in order to
select the best approach the target market group (Tansey, Spillane and Meng, 2014). This is more
helpful to for the company to take advanced help of technologies to enhance the business
expansion. There are different modes of entry are giving below:
Direct Exporting: Direct Exporting is the tool to enter into the new market or in new
country (Market Entry Strategies, 2018). It means Herbal Beauty selling directly into the market
in which company wants to go with the own resources. This is the first sources or tool through
which they start the business in new country. If they want to directly sell their products without
opening any firm or company with the help of mediators or distributors. With help of effective
distributors' product and services are selling in the new market (Tomczak, Reinecke and Kuss,
2018). Besides, the drawbacks of this strategy is that, company has to invest high cost on the
distributors or middle man which is not safe and secure. Company cannot trust on the strangers
because of risk and uncertainties. This must be challenging for the company as well. Another
drawback is company cannot deal with the customers' face to face. So that, they cannot
determine the actual feedback of the buyers and their needs and wants (Tansey, Spillane and
Meng, 2014).
Licensing: Licensing is another ways to entered in the new market. In this method,
company transfers the rights to sell the product and services to another firm (West, Ford and
Ibrahim, 2015). This strategy is fruitful when the purchaser of licence having good public image
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in the market. Drawback of this strategy is owner of the product and services is not much popular
in front of the customers due to which they have to depend on other firm.
Franchising: Franchising is another significant strategy for entering into the new market.
This strategy is beneficial at the time of business expansion and getting the attraction of
customers in another company (Tomczak, Reinecke and Kuss, 2018). This is more fruitful when
company launch any innovative services or products. The main issue and big challenges in this
strategy is heavy competition. Company needs to analyse the other environment before providing
the own products and services.
In which two or more than two partners has created another one company. For example,
A and B Company joined their workers and created company C (West, Ford and Ibrahim, 2015).
two companies agree on the same decisions and carry out the new business activities. It is
benefited for the company in many forms like new insights and expertise, better utilisation of
resources, both parties share risk and costs. On the other side, Drawback of this Joint venture is
Vague objectives like objectives or plans of the company is not clearly communicated to all
people involved. Lack of flexibility joint vent sure having limited flexibility through which
company cannot focus on the main objectives.
Another market entry for Ashanti Marketing Solutions in Australia market is buying a
company. In the same market they also purchase any firm or company which deals with the same
products (Tansey, Spillane and Meng, 2014). Due to government regulations or restrictions.
Company may adopts this strategy this is the positive strategy for those companies who does not
belong to that particular city. On the basis of given modes of entry into the market. Every
strategy having their own pros and cons. As per the best entry mode for Herbal Beauty,
franchising is good for the company to market their product and services. Through which they
can maintain their image and profitability. Give franchising to the best beauty products company
who deals with the same product and services. With the help of this mode of entry, company
plays an independent role supported by big business network (Liebl, 2018). This may give higher
business growth in Australia market this also helps company to maintain the market stability
with the help of providing the best herbal beauty products to the buyers. With the help of this
approach company can easily market their services ion the Australia market (Chernev, 2018).
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Market Segmentation
Marketing segmentation is the activity which related to the term of marketing (Tansey,
Spillane and Meng, 2014). It is the aggregating process of buyers groups, targeting customers,
common needs and wants of the buyers or marketing action. Market segmentation enhance
company to meet the needs of target consumers. With the help of consumer needs, Homogeneity
Company can easily identify the group of buyers for their product and services. With the help of
this market growth. Ashanti marketing solution can easily market their product and services in
the Australia market. Besides, market segmentation also gives negative perspective to the
consumers in terms of not meet the needs. For example, Apple Company target their customers
who are rich and high income group level. So that, middle or lower income group customers are
fails to get the services of Apple. This is the drawbacks of market segmentation (Hun, 2015). For
example, Ashanti marketing solutions limited company’s main target group are females for their
Herbal beauty products. This is the process of inventing the new opportunity for the females.
Females are more curious and attracted towards the beauty products and purchase at any cost this
is the process which holds the effective management skills and profitable. Along with that
moreover the main m goal of the organisation is to maintain the good relation with the customers
along with that, market segmentation is the continuous. With the help of Segmentation, targeting
and positioning (STP) approach company target their market (Proctor, 2014). Moreover, the
main focussing group of herbal beauty product is females. First terminology is that segmentation
before making any target market company needs to adopt planning of segmentation. In which
company needs to look upon the customer needs and wants. Another term is target marketing, in
this process company selecting their target marketing on the basis of customer needs and wants.
Besides, last term is positioning in this step process company needs to analysis competitors
position further internal analysis. Last process of STP approach is deploy resources to achieve
plan in order to ensure the proper results. On the other side, it may gives some drawbacks and
negative drawbacks due to target market customers (Foxall, 2014). Due to this other customers
could not get the opportunity of those products and services.
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Porter's Generic Strategy
It is the primary source for the industries who helps to attract the business operations and
probability (Porter's Generic Strategies, 2010). This is the effective source of analysing the
market forces and market situations. Besides, second main work should be the position of the
company in that particular industry. In accordance with the generic they argued that firms
strength fall into one of two factors cost and differentiation (Payne and Frow, 2014). There are
three types of porters generic strategies are cost leadership, differentiation and focus. There are
the explanation of strategies giving below:
Cost leadership strategy
Cost leadership strategy is refers to those producers who being a low cost producer in the
market. It is given level of quality. Under these strategies firms and organisation they provide
services or products at average prices to gain the market share or to maintain the profitability
level with the customers (Payne and Frow, 20140. This is the good strategy to maintain the
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Illustration 1: Porter's Generic strategies

positions of the company in long period. Cost leadership strategy usually focus on the broad
targets a market. This strategy involves the heavy risk, other firms or organisation may also fall
their prices as well. This strategy helps the organisation at the time when they want to attract the
customer attention towards their product and services.
Strength: Cost leadership theory has been provides better opportunity to take better strategies
for business expansion.
Limitations: cost leadership theory may be restrict the resources for E&A company.
Differentiation strategy
Differentiation strategy of generic defines that unique product and services that offers the
different products from others. Most of the firm who adopts this strategy they maintain the
quality of products and give the best quality of services to their target market customers. Value
added services which must be unique and different allows firms to charge high price from the
customers (Foxall, 2014). Moreover, the main aim of those firms are to maintain the quality and
differentiation between the products and services. Moreover, Most of the time these kinds of
products are not successfully sell in the market. Risk factor involves in this strategy is imitation
by competitors and changes the taste of customers.
Strength : The main point objective of the high profile organisation it focuses on the main
quality management.
Limitation: differentiation strategy may distract E&A to focus on other activities.
Focus Strategy
Focus strategy concentrates on a narrow segment in which weather producer get
advantage or differentiation cost. In this strategy producer focus on the customer needs and
wants (Hun, 2015). In this term producer using focus strategy for getting the customer loyalty.
This companies discourage other forms interns of customer focus. Along with that, because of
narrow market position there is less competition in the market. It gives higher opportunity to the
producers.
Strength: Main advantages of this strategy is that to grab the customer attraction. This strategy
involves risk of mitigation and changes in the target segments. It is easier for the broad market.
Limitation: this strategy might be given low productivity among E&A company employees.
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On the basis of above discussion about the strategies of porters generic it can be
concluded that company needs to adopt cost leadership approach in order to get the attraction of
Australia because of heavy competition in the beauty products (Chernev, 2018). On the basis of
Australia market they have huge products of beauty which is given by different companies.
Moreover, due to heavy competition in the market company needs to adopt cost leadership
approach to maintain the position in the market. With the help of low prices' customer start
giving interest in those products (McCamley and Gilmore, 2018). Moreover, the main objective
of the firm is to get the customer preference and loyalty towards the company products and
services. Ashanti Marketing limited focus is to launch the new product and services in the
market. Which helps to enhance the market share and popularity in front of the customers. It
makes opportunity or growth of business to deal in new country.
As compare to other generic strategy cost leadership is the best approach for the
company. In accordance with the differentiation strategy cost effective is far better than other
strategies. This makes the business activities effective and approachable (Liebl, 2018).
CONCLUSION
From the basis of above report it can be concluded that, Strategic marketing is the
effective planning and organising tool with the help of which company can easily target their
market and make productive sales profit. Present assignment was based on Ashanti Marketing
limited or opening the business into new Australia market. The overall study discussed about the
macro factors of the country market group with the help of PESTLE analysis. Besides, they also
covered the target marketing group for herbal beauty products. Moreover, Ashanti solution
limited needs to adopt some attractive strategies in order to market the target group of customers.
On the basis of Porter's generic model it concluded that company needs to adopt cost leadership
strategy to grab the attraction of customers. That means provides services on the basis of
customer needs and wants at low prices. Besides company also needs to adopt innovative
marketing strategic in order to get the market attention towards the company products and
services.
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REFERENCES
Books and Journals
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Foxall, G., 2014. Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge.
Hunt, S. D., 2015. The theoretical foundations of strategic marketing and marketing strategy:
foundational premises, RA theory, three fundamental strategies, and societal welfare. AMS
review. 5(3-4). pp.61-77.
Liebl, F., 2018. What Is Strategic Marketing in an Innovation Society?. In Innovation Society
Today (pp. 165-181). Springer VS, Wiesbaden.
McCamley, C. and Gilmore, A., 2018. Strategic marketing planning for heritage tourism: a
conceptual model and empirical findings from two emerging heritage regions. Journal of
Strategic Marketing. 26(2). pp.156-173.
Merchant, H., 2014. Configurations of governance structure, generic strategy, and firm size:
opening the black box of value creation in international joint ventures. Global Strategy
Journal. 4(4). pp.292-309.
Payne, A. and Frow, P., 2014. Developing superior value propositions: a strategic marketing
imperative. Journal of Service Management. 25(2). pp.213-227.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Spanjol, J. and et.al., 2015. Enacting Change in Strategic Marketing Decisions: The Role of
Regulatory Focus in Teams. In Marketing in Transition: Scarcity, Globalism, &
Sustainability (pp. 37-37). Springer, Cham.
Tansey, P., Spillane, J. P. and Meng, X., 2014. Linking response strategies adopted by
construction firms during the 2007 economic recession to Porter’s generic
strategies. Construction management and economics. 32(7-8). pp.705-724.
Tomczak, T., Reinecke, S. and Kuss, A., 2018. Introduction. In Strategic Marketing (pp. 1-18).
Springer Gabler, Wiesbaden.
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West, D. C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
Wicker, P. and et.al., 2015. The effect of Porter’s generic strategies on organisational problems
of non-profit sports clubs. European Journal for Sport and Society. 12(3). pp.281-307.
Online References
PESTLE Analysis of Australia, 2017. [Online]. Available through:
<http://www.sachdevajk.in/2017/09/07/pestle-analysis-of-australia-by-anshita-agarwal/>.
Market Entry Strategies, 2018. [Online]. Available through: <http://www.tradestart.ca/market-
entry-strategies>
Porter's Generic Strategies, 2010. [Online]. Available through:
<http://www.quickmba.com/strategy/generic.shtml>.
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