Marketing Report: Natwest Bank's Expansion into the Croatian Market

This report details Natwest Bank's proposed market entry strategy for Croatia, utilizing the SOSTAC model. The introduction establishes the context of marketing and its significance for business profitability, specifically focusing on Natwest Bank's expansion plans. The report then delves into the SOSTAC framework, encompassing situation analysis, objectives (SMART), strategy (Porter's generic model and Ansoff matrix), tactics (product, price, place), action, and control. A PEST analysis justifies Croatia as a viable market, considering political, economic, social, and technological factors. The report also addresses standardization, adaptation, and globalization within the 4Ps of marketing. Finally, the conclusion summarizes the importance of marketing principles and practices in achieving business goals, emphasizing the effectiveness of the SOSTAC model and PEST analysis in market expansion.

Principles and Practices of
Marketing

Table of Content
 Introduction
 SOSTAC
 Justify the chosen country as a new market by doing PEST analysis of the SOSTAC
 Conclusion
 References

Introduction
 Marketing defines a concept by which organisation made their effort in order to earn prominent profit for
the business. It is a procedure that includes suitable research considering the design promotion development
and customer satisfaction in order to provide the services of the customers in more effective way. Moreover
this report is based on Natwest Bank which is a major retailer bank situated in United Kingdom and also
become a part of The Royal Bank of Scotland group. Currently, company wants to expand its business in
Croatia Moreover report is based on the proper research with the help of SOSTAC model by which Natwest
Bank can analyse the new country and the market by using various techniques and theories.

SOSTAC
 This model include various fundamental terms for the better result of marketing and also represented by
the manager of Sainsbury in order to explore their business unit in Croatia as it is very important to use
this model that are explained as under
 Situation
 It is considered as the first step which describes the planning of marketing which is useful in enhancing
business in order to gain more profitability and growth. Currently the manager of Sainsbury wants to
expand their business and Croatia and should determine the situation off market for the new country
with the help of pest analysis.

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 PEST Analysis
 Political: The political condition of Croatia is independent and also linked with Judiciary and
legislative branch of government. Moreover they have strong relationship with European countries in
terms of expanding their business. They also follow liberalisation rules that are useful for the company
in order to expand their business without any trade tariffs and additional cost.
 Economical: Croatia has stable economic growth and because of this Natwest Bank does not face much
problem in order to expand their business. In this context there expansion in Croatia is profitable for
them in order to manage their stability and also spend more on their commodities.

Objectives
 SMART objectives
 Specific: For this it is expected to motivate huge customer base with high profit margin related to retailers
and other financial institution.
 Measurable: In this context Natwest Bank planning to enhance their customer base in Croatia by 15% and
profitability by 7%.
 Achievable: For this company plan to achieve their goals and objectives with the help of suitable training and
development program that leads to develop desired outcome Croatia.
 Realistic: As per this objective Natwest Bank improve their revenues and sales by analysing the current data
and profit margin of sales that leads to enhance the total revenue of the product.

Strategy
 Porter’s generic model: In order to enter in the new market Natwest Bank adopted cost leadership strategy
which is useful in increasing the profitability by charging low prices in order to attract maximum number of
customers within the new market.
 Ansoff matrix: With the help of market development Strategy Company enter into the new market with their
current strategy which is Croatia in order to enhance their sales and profitability and also make new customer
base. It is useful in increasing the profit margin of the company and sales of product.
 Market entry mode: According to this company use franchise in order to take entry in the Croatia as by this
they give rights to the local retailer in order to operate their institution with the name of Natwest Bank under
their terms and conditions.

Tactics
 Product: Currently Natwest Bank deals in wide range of products but in order to expand their business in
Croatia they only use new financial services that are required to cover the market area of Croatia by offering
their products at low prices in order to create a great impact to attract maximum number of customers.
 Price: As per this factor companies penetration pricing policy in order to acquire the large customer base and
increase their market share. As firstly company offer their products at low prices in order to become
customers more familiar to their products and it also leads to develop customer loyalty.
 Place: According to this company open their Store in Croatia to offer their prominent products to their
customers and also provide their services through online or offline way to acquire maximum number of
customers across the world.

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How standardization, adaptation and globalization covered in 4 Ps of marketing
Standardization Adaptation Glocalisation
Product It describes the uniformity in the
offering of product by the company.
According to this Natwest Bank alter
their products regarding the demands
of the people of Croatia.
Company enters in the New Market
by considering the environment of
global international market.
Price As per this Natwest Bank does not
follow standardized pricing for the
new market as there is no consistency
regarding the price of product.
As per this company chooses
penetration pricing policy in order to
take entry in the new market.
As per this company to set the prices
that is similar and matches with the
international level.
Place As per this company to choose a
proper place in order to sale their
commodities.
Company to provide online services
as well to sell their products across
the world.
Natwest Bank expands business in
that area in which economic stability
is strong.

Control
It is the last step of SOSTAC model by which company control and monitors all their
Strategies and actions which they execute for their business. It is also considered as the key
performance indicator which is useful in evaluating every stage that is useful in earning
high profitability.

Justify the chosen country as a new market by doing PEST
analysis of the SOSTAC
 Political: Because of the liberality in the government rules regarding the foreign direct
investment Sainsbury can easily enter in Croatia in order to operate their business.
 Economic: The economic conditions of Croatia are more stable which is useful for the
company to maintain the large customer base.
 Social: For the expansion of company in Croatia they need to follow culture over there in
order to attract large customer base by offering good quality products.
 Technological: Croatia used advance technology in order to operate their business which
can become strength for the Natwest Bank to expand their business in Croatia.

Conclusion
 By considering the preceding information it is analysed that principles and practice of
marketing is significant to analyse the customers and government and other Consulting
factors to improve the profit margin and sales of company. In this context SOSTAC model
is applied in order to analyse the various sections for the expansion of business to attract
large customer base with the help of pest analysis.