MKT860: Marketing Strategy Report - Barker & Stonehouse Expansion

This report details a marketing strategy for Barker & Stonehouse, a furniture retailer, aiming to expand its business into Croatia. It begins with an introduction to marketing strategy and provides a company profile. A thorough situation analysis follows, including micro and macro environment analyses, along with a PESTLE analysis and Porter's Five Forces framework to assess the Croatian market. The report defines specific marketing objectives and their rationale, followed by a justification for these goals. The core of the report outlines the marketing strategy, considering country attractiveness and competitive strength. It then delves into marketing tactics for product, price, place, and promotion, concluding with actionable steps for marketing and a final conclusion. References are provided at the end.

MARKETING
STRATEGY

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
COMPANY PROFILE....................................................................................................................3
SITUAITON ANALYSIS...............................................................................................................3
Micro environment analysis........................................................................................................3
Macro environment analysis.......................................................................................................4
Porter five forces.........................................................................................................................6
OBJECTIVES..................................................................................................................................6
Rationale of objectives................................................................................................................6
Justification.................................................................................................................................7
STRATEGY OF MARKETING......................................................................................................7
Country attractiveness.................................................................................................................7
Competitive strength...................................................................................................................7
TACTICS OF MARKETING..........................................................................................................7
Product........................................................................................................................................8
Price............................................................................................................................................8
Place............................................................................................................................................8
Promotion....................................................................................................................................8
ACTION FOR MARKETING.........................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing strategy is referred to as a strategy of the company which the company is
using in order to market or promote the goods and services in the highly competitive market
(Chaffey and Ellis-Chadwick, 2019). The major reason underlying this fact is that in this
globalised world it is very essential for the company to go for expansion at international level
and for getting success in this the most important thing is the marketing. It is so due to the fact
that there are many companies which deals in similar or homogeneous product and it is very
essential for the company to have some distinct and differentiating advantage over other
competitors and this can be use of marketing techniques and methods.
Thus, in the present research the company Barker and Stonehouse want to expand the
business in Croatia. The company is British retailer which deals in the furniture and related items
like beds, chair, dining tables, and other related goods and services. The current report will
outline the micro and macro analysis of the company and the country. Also, it will outline the
different strategies and tactics of marketing the product in new country.
COMPANY PROFILE
The company Barker and Stonehouse is a family run company which was founded in the
year 1946 and is headquartered in Stockton- on- tees, UK. The company was founded by Charles
Barker and Alex Stonehouse and is a furniture retailer which deals in a variety of product and
services like dining table, chairs, office furniture, children furniture, sofa beds and many other
different types of product and services. Also, this includes the different designer brands like
Stressless, Ercol, Natuzzi, Oulton, Tempur, Temothy and many other different brands. The
company is located in different locations all over the UK and is now planning to expand its
operations and business in Croatia as well.
SITUAITON ANALYSIS
Micro environment analysis
The micro environmental analysis is referred to as studying the internal strength and
weakness and it is very essential as this help the company to know its position in the competitive
market (Kingsnorth, 2019). This is majorly pertaining to the fact that micro environment analysis
takes into consideration the analysis of the positive and negative aspect of the company.

Thus with this it is clear that the major strength of the company is that the company is
operating in many different types of product range and variety and this provide the consumer all
the different option at single place only. This is the major strength of the company and this also
helps the company in increasing the sales of the company (Zhang and Wang, 2019).
But on the other side with help of analysis of micro environment it was found that the
major weakness of the company is that it is not able to adapt to the latest changes in fast and
effective manner. This is majorly because of the reason that the taste and preference of the
consumer changes very rapidly and this affects the working capacity of the company to a great
extent.
Also with the help of the internal analysis it was clear that the major opportunity for the
company is the adaption to the latest technological changes taking place in the environment. This
is an opportunity because if the company will use the latest technology then this will increase the
proficiency of the company.
But in contrast to this the major threat for the company is the high competition within the
whole globalized market. It is so because of the fact that after the internationalisation any
company can trade in other country and this has increased the competition to a great extent.
Thus, this may cause many of the threat to the company and its performance.
Macro environment analysis
The macro analysis is the analysis of the external environment and this is very essential
to be studied. This is majorly because of the reason that the business exist in the environment
which is very dynamic and changing and thus, it is very essential for the company to make
changes in accordance with the latest changes taking place in environment. Before entering in
Croatia it is necessary for Barker and Stonehouse to analyse the environment and working
condition of the country. Thus, this can be analysed with help of PESTLE analysis which is
discussed in following points-
Political factors- there is political stability in Croatia as the country is liable to enter in
European Union and also the country has a low level of indulgence of government within the
company and its working (Key and Czaplewski, 2017). Thus, this does not create any of the
problems for company. But the taxes are the issue which might affect the working of the
company to a great extent. This is because of the fact that the tax rate in the company is high and

this might restrict the income of the company in payment of tax and this reduces the income of
the company after tax.
Economic factor- this is also an important factor to be studied before entering in Croatia
as if the economic condition of the country will not be good then the working in that country will
not be profitable (Patrutiu-Baltes, 2016). But in case of Croatia the economic condition is good
and the purchasing power of the consumer is increasing and this is beneficial of the company as
this will increase the sales of the company to a great extent. But the negative aspect is that there
is high unemployment within the country and because of this the labour of the country is less
skilled and does not have proper knowledge and expertise in working.
Social factor- this is also the most important factor to be studied before entering into any
of the new country. This is because if the company enters in new country and the consumer of
that country does not like the goods and services of that company then this will be losing
situation for the company. Hence, before entering in Croatia it is essential for Barker and
Stonehouse to study the trends and requirement of consumers. With this analysis it was clear that
the consumers are interested towards the unique and stylish furniture and related products which
are being produced by the company.
Technological factor- this is also an important factor to be studied at time of expanding in
new country. This is because of the fact if the technology is not being available in the country
then the operation of company will not be able to perform in effective manner. The major
positive aspect relating to the technology in Croatia is that the company has high and advance
technology being used in the existing companies of the country. Thus, these can be sued as a
basis for the company to establish its own technology within the company.
Legal factor- this is also the most important factor to be studied as if the legal issue are
not met by the company then the company may face many different types of problems. This is
because of the fact that the legal rules and regulations guide the working and operations of the
company and every country has its own different set of rules and regulations. Thus, before
entering in Croatia it is advisable to Barker and Stonehouse to have a look at all the legal
requirement of company (Weerawardena, 2018). The positive aspect of this fact is that this
compliance with legal aspect will build trust among the employees and this will attract more of
the consumers.

Environmental factor- this is also the most important aspect to be studied by the company
before entering into Croatia. This is majorly pertaining to the fact that if the environmental
condition of the country will not be fulfilled then the consumer will not like this and will not use
the goods of the company (Cacciolatti and Lee, 2016). This is majorly pertaining to the fact that
the consumer have become more conscious relating to the protection and safeguarding of the
environment and if the company will not take care of this then the company will not be liked by
the company.
Porter five forces
Threat of new entry- this is referred to as new entrants coming in the same industry with
the same product and services as compared to the existing company. The threat of new entry in
Croatia is less and because of this Barker and Stonehouse can enter in Croatia. The threat of
entry is high as already the competition is high and also the cost of entering within the market is
high and this restricts the people from entering into the market of Croatia.
Threat of substitute- the threat of substitute is referred to as the fact that some other
product which is identical to it can be used in place of the existing product. The threat of
substitute good is very low in the market of Croatia and this will be beneficial for the company if
they enter within the market.
Bargaining power of buyer- the bargaining power of the buyer is defined as the power to
make the decision whether the company is able to satisfy the need of the consumer or not. The
consumer is treated as the king of the market and if the need of the consumer is not satisfied then
the company will not be successful. In Croatia as well the buyer are more given power to decide
the success of company.
Bargaining power of supplier- the supplier power is referred to as the fact that the power
is in hand of the supplier and this is in case the suppliers are less. But when it comes to Croatia
the suppliers are many and thus, the Barker and Stonehouse will to have any problem relating to
supplier. This is because if one supplier does not provide for product and they have option of
another supplier (Hansen, McDonald and Mitchell, 2017).
Competitive rivalry- this is the most important factor which defines the success of the
company that is competition. This is because if the competition is high then the company has to
work hard to make the consumer like the product and then only they will attain success. In case

of Croatia as well the competition is very high and because of this company need to work more
on marketing.
OBJECTIVES
Rationale of objectives
 To increase the business of company to the boundaries of Croatia till the end of 2020.
 To enhance the market share of the company in Croatia in the coming six month by 35%.
 To increase the sales of the goods and services of the company in the Croatian market by 40
% till the end of 2020.
Justification
The major reason for the selection of these objectives that is entering in the Croatian
market is that this is a good market for the company and this will increase the goodwill and
profitability of the company to a great extent. Also, this will be profitable for the company as the
Croatian market is more suitable for the company and its products.
STRATEGY OF MARKETING
Country attractiveness
With the analysis of the macro environment of Croatia it is clear that the company is very
much advantageous and attractive for the goods and services provided by Barker and
Stonehouse. This is majorly pertaining to the fact that first thing is that the country does not have
much political interference within the company (Dangelico and Vocalelli, 2017). Also, the
purchasing power of the consumer is increasing and this states that the consumer will get
attracted towards the high standard of living and is this will take place then the consumer will get
attracted towards the use of stylish and unique designs of furniture. Also, the country is having
more of the advanced technology and because of this the company will get the right to use that
technology at cheaper rates.
Competitive strength
The major competitive strength of the company is the unique and stylish furniture and
pieces which they are providing to the consumers. Also, this attracts more of the consumers as
they get attracted towards the sleek and stylish looks of the different furniture. Also, the other

major strength of the company is the low price of the goods and the services and this attracts the
consumer to a great extent.
TACTICS OF MARKETING
The tactics of marketing involves the marketing mix which is a combination of the
different variants for the marketing of the goods and services (Palmatier and Sridhar, 2017).
These marketing mixes include the decision to be taken for the four different aspects that is
product, price, place and promotion. For getting success the company uses the marketing mix in
the following ways-
Product
The major product which the company will use in order to expand the operation in the Croatian
market is the same as they are dealing earlier. This includes different set of furniture and related
products like sofas, bed, dining tables, children furniture, official and corporate furniture and
many other related goods and services. But the additional thing being provided is the
improvement in the quality of the goods and services and reduction in the prices of the goods and
services.
Price
This is referred to as the amount of money which is being charged by the company for the goods
and services which they are providing to the consumers. The price includes all the cost which is
being incurred in making the goods and services and it also includes the profit margin which is
being decided by the company. For pricing the goods and services in the Croatian market the
company uses the competitive pricing. This is majorly used by the company as this will hlpe the
company in first analysing the prices of the competitors and then charging the prices in
accordance to those prices.
Place
The place is the area or the place through which the company provides the goods and services to
the consumer for the consumption. Basically the main headquarter of the company is in UK and
also has more than 10 outlets in different countries (Samiee and Chirapanda, 2019). Also the
distribution channel of the company is very large and includes many different types of
intermediaries and wholesalers. But in case of expanding the business in Croatian market the

company will use both the physical stores option and the online sales format through the official
website of the company.
Promotion
This is the most important thing for the success of the company and it is because of the fact that
with help of promotion of the goods and services the consumer will come to know about the
product and services of the company (Kennedy, Kemper, and Parsons, 2018). This includes
many different techniques and methods of promoting the goods and services of the company in
this highly competitive market. For the entrance in the Croatian market the major promotional
techniques being used by Barker and Stonehouse is the use of advertising through print media
and also to make use of the latest digital technology marketing. This digital technology
marketing includes the use of social media platforms in order to market and promote the goods
and services of the company in promoting the goods and services among the consumers.
ACTION FOR MARKETING
This is the most important thing for the success for the company as just deciding for the
marketing mix as it is necessary for the company to drive its action towards the attainment of the
marketing objectives. This is because if the actions of the company and the employees will n ot
be directed towards the working of the marketing objectives then the aim and mission and vision
will not be attained for the company.
Marketing activity Marketing channel Time
Direct marketing The channel is through the e-
mails. This is used because of
the fact that with help of e-
mail directly to the consumer
and the consumer can directly
have a look towards the email
at any time.
5 month
Digital marketing For this the channel used is the
social media platforms and
this is the latest method of
promoting the goods and
3 months

services of Barker and
Stonehouse. This is because of
the fact that the use of social
media is the latest trend and
most of the consumers are
using the social media and
they will get attracted toward
the goods and services of
Barker and Stonehouse (Rutz
and Watson, 2019).
Commercial marketing Under this activity the
marketing channel being used
is the advertisement with help
of television and magazines.
This is also a good marketing
channel and will attract most
of the consumers as the
television and magazines are
also used by the consumers to
a great extent.
4 months
CONCLUSION
In the end it is clear that for the success of the company the most important thing is the
marketing and this need to be done in effective and efficient manner. This is majorly because of
the reason that is the marketing will not be good then the consumer will not like the product and
services of the company. Thus, the present report also stated that the global expansion of the
business is very essential for the company as this will increase the business of the company.
The current report started by analysing the micro and macro environment of the company
and the country. This was done in order to assess that whether the company will be successful in
the Croatian market or not. Also, in the report the marketing objectives of the company at time of

expanding in Croatian market. The different tactics was also discussed in the report like
marketing mix including the product, price, place and promotion of the product and services.

REFERENCES
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