MG624 Strategic Marketing Report: Blue Foundation Media, Romania Entry

This report provides a strategic marketing analysis for Blue Foundation Media, a digital agency, aiming to enter the Romanian market with its web design services. The report begins with an executive summary and introduction, outlining the company's goals and the scope of the analysis. It then applies PESTEL analysis to assess the macro-environmental factors influencing market entry. The report explores various market-entry modes, recommending a joint venture approach. Furthermore, it delves into market segmentation and targeting strategies, followed by an application of Porter's Five Forces to understand the competitive landscape. The report also examines Porter's generic strategies, offering recommendations for the company's strategic approach in Romania, and concludes with a summary of key findings and references.

Strategic marketing

Contents
Executive summary:.........................................................................................................................1
Introduction:.....................................................................................................................................1
PESTEL :................................................................................................................................2
market –entry modes..............................................................................................................4
the market segmentation and targeting...................................................................................6
apply the porter five forces strategies:....................................................................................9
Porter generic strategies:.....................................................................................................10
Conclusion:....................................................................................................................................11
References:.....................................................................................................................................12

Executive summary:
The strategies helps then organisation to identify the new market place for its new goods and
services so that they can expand their business activities at the international market and earn
their desire profits margin. The organisation offers different kind of services like advertising,
promotion and various another marketing schemes to create awareness in the customer. here the
manager of the organisation make effective marketing strategies for the organisation for their
new goods and services entering into the new market across the global market places. The aim
focus of is on making plan for the organisation about making segmentation of the market ,
having targeting strategy and position their goods and services and examine the porter five
forces. (Azlan, Moamin. and Mohd, 2016)
Here the organisation will finds new goods and services to place in the new country which will
helps in expanding the business operation . this also content the recommendation which are
given to the organisation to understand the market before entering into the new market places.
The strategies are used by the organisation to grow their business at the international market
with the use of proper and effective strategies regarding to the marketing function which helps
them to increase their market share at the target market place and focus on offering the different
kind of goods and services to the customer. these strategies helps the organisation to provide the
new goods to its customer and target the new market to enter with their existing as well as the
new developed product and services .
Introduction:
The strategic marketing refers to the process which helps the organisation to obtain the goals
and objectives in the profitable manners by making effective strategic to provide new goods and
services in the new market place. for this assignment, Blue foundation media organisation
which operates in adverting industry , now wants to enter into the new market in the Romania
with the new goods such as web design service so the clients wants to examine the Romania
market . In the another words, it strategic marketing refers to the planning tools and technique
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which helps the organisation to perform better in the operational activities. Further there
discussion on introducing the new goods in the new target market places with the help of macro
environment factors examine and market segmentation. (Andreasen,. and Kotler, 2015. )
PESTEL :
Overview about the organisation:
The Blue foundation media is one of the largest digital agency and offer the service such as
web design development also provide the online marketing strategies to capture the desire
market within the short time period. it give service like website development for the
organisation in the market.
The Blue foundation media is a client of the Ashanti marketing solution focus on expanding
their business at the global market by introducing the new goods and services for its targeted
customer so that they can enhance their market share in the market places.
New product for the organisation: The Blue foundation organisation offers the services such
as promotion, PR , advertising and various another marketing services to its customer , so they
have come up with completely new services of Web Design in the market places. These web
design involves the production and maintenances of websites of the company and includes the
proprietary software, development of the websites and having different visuals interfaces. These
new services helps the organisation to grow their operational activities at the international
market. (Boyko and Zubko,2015)
New country to enter by the blue foundation media
The Blue foundation media organisation are working form the UK market and are planning to
expand their business in the Romania market with their new services for the customer. the work
environment of the Romania is good as it is a developed market and it have greatest national
economic in the European market which helps the blue foundation to expand and grow their
business at the international platform. The Romania market is a good place with the new
services as there are less competition in the target segment which helps the organisation to
increase their market share.
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Macro environment : These are the external factors which affects the operational performances
of the organisation to large extends in the market place. The PESTLE analysis are done to
examine these external factors so that organisation are able make better utilisation of resources in
the market and take competitive advantages in target segment. In the context of the client of the
Ashanti organisation, uses the PESTLE as the marketing tool to analysis the market before
entering into the new market .
Political factors: here it involves the government policies, such as tax policies, trade tariffs and
fiscal policy and another laws which have influences of outcomes of the organisation, the blue
foundation media needs to examine the policies of the Romania market before entering into this
market , for example if the tax rates are increase in the Romania market then the organisation
have to face issues in the market .
Economic factors: under this factors, it involves the interest rates, foreign exchange rate, and
inflation and various another rates. The economy of the Romania is a effective growing in the
market with the strong GDP in the global level and this will help the organisation to have larger
market share in the market. (Hansen. and Klokholm 2015)
Social factors: it includes the customer taste and preference, trends in the market ,
demographics factors . the organisation evaluate the market size of the Romania so that they can
divide the whole segment according the needs of the customer in the market places.
Technology factors: under this factors, it involves the new technology in the market which
helps the organisation to perform better in the market places. The webmaster association focus
on using the advance technology which will enhance their productivity in the market places.
Legal factors: it includes the different legal laws such as consumer rights, laws and
regulations of the labour which affects the outcomes of the organisation in the target market .
the firm needs to follow the different legal laws according to the different market so that they
can execute their task in proper manners.
Environment factors: it involves the climate work ,geographical location and global work
place which have impact on the outcome of the organisation. the organisation clients examine
environment so that they can execute better in their task.
These PESTLE analysis helps the organisation to examine the opportunities present in the new
Romania market so that they can place their new goods in the market and grow their business at
various places.
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Threats that organisation client faces:
The organisation faces issues such as cost fluctuation in the market , the tough competition ,
changes in the customer taste and preferences, requirement of the raw material and threads in
arranging the financial sources and planning for the company.
The solution to overcome the threats:
The organisation needs to make effective strategies after examining the new Romania market to
solve the issues and problems in the effective manner . they needs to evaluate the competition
present in the new country so that they can enter with the effective plan and attach the customer
towards their new goods and service in relation to the web design. The organisation need to finds
out the least trends in the new country Romania so that demanded goods can be provide to the
clients
market –entry modes
The organisation are examine the various different models to enter into the new market segment
to grow their business to next level. The organisation needs to choose the most effective way to
enter into the Romania market so that proper task can be executed. The organisation needs to
collect the different type of information such as market size, their growth rate, level of the
competition present in the market and find out the distribution channel in the market so that they
can perform better in the market . some of the effective modes are stated as below: (Jack and
Powers,2015)
Strategic alliances: here the two different parties agree on the common objective to carry on the
business in the new market but remain the different entity. This model is suitable for the
organisation who like to work with the alliance with another company in various projects in the
market places. with the references of organisation they work with another organisation by
making the alliance to operates in the Romania market.
Strength: this helps organisation to increase their operational activities which lead to better
results in the organisation:
Limitation: here the ownership of the business needs to be shared among the parties as well as
the profits.
Mergers and acquisition: here the organisation tries is use the different methods as tools
which take the ownership of the another organisation and run the business effectively in the
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market . merger is situation where the one organisation take over the another company business
operation are knows as merger in the firm. The acquisition refers to the acquiring the business of
another organisation. these models helps the organisation to reduce their cost and increase their
market share in the target market places. There are different type of merger such as vertical and
horizontal integration. Under the horizontal type the organisation which are at the same stage of
production process merger with each other in the market and here the organisation enter into new
geographic segment with the help of new goods and services . with the references of
organisation,. they finds out the marketing firm in the Romania market and offers them to
merger with them in the market and operate the activities to earn the profits. Under the vertical
integration two different entity working at the different level of production are merger together .
Joint venture: according to this model, the organisation make the alliance with the another
organisation in the various form such as franchising, management contract, licensing and
various another models depending upon the market size of the concern company.
Strength: it provide a larger platform to operates its activities and targeted the customer for their
new goods.
Limitation: the organisation have to follow the legal laws of another country organisation which
harm the productivity of the organisation.
Foreign direct investment: under this model, the investment take place by managing the
business in the one country with the another company country. In the context i organisation,
focus on entering into Romania market with the new services in the market places so that they
can attach the more customer towards their product and services and enhance their market share.
Exporting: here the organisation exports the new good produce to the new country Romania in
the direct and indirect channels. The company make contact with similar organisation present in
the another country and carry on the export business and earn the desire profits in the long run.
Strength: the mode helps the organisation to operates from the various location and reach outy
the larger audience.
Limitation: every country have their own export polices which delay the performances of the
company
According to the above discussion, it is recommended to organisation to choose the model which
will reduce the cost and uncertainty present in the organisation that is joint venture model. It can
be implemented in the form of franchising , sub contracting agreement. This model will be
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useful for the organisation to enter into the Romania market and desire level of profits. The joint
venture will helps the organisation to make align with the various companies and produce the
services to the customer and share the respective profits
the market segmentation and targeting
The market segmentation refers to the process where the whole market are divided into small
segment according to their needs and wants in the market places. The organisation are also able
to offers the goods and services as per the need of the particular market segment. The proper
segmentation helps the organisation to reach out the larger number to customer in the market
palace and sale out its new goods and services , hence increase the market share of the
organisation in the long run. In the context of organisation ,they take careful measure to make the
effective segmentation and targeting business so that they create competitive goods and have
effective marketing costs. There are different kind of market segmentation which are discussed
as follow: (Krush Sohi and Saini,2015)
Segmentation: The process of dividing a market into distinct subsets (segments) of consumers
with common needs or characteristics and selecting one or more to target with a distinct
marketing mix
Demographic segmentation: under this segment, it includes the customer income, their
earning sources, their disposable income in the market and population classification in market
places helps in making the effective segment of the whole market . with the references of the
organisation uses this model to know their customer income and taste and preferences so that
they can provide the goods and service according to the customer..
So that segment which is selected for the client is the major part of the Romania market where
the client can place their goods and service and earn the desire level of profits
Strength: this segmentation helps the organisation to divide the customer on their income level
and living standards.
Limitation: here the customer size is large which make difficult to examine their disposable
amount
Geographical segmentation: here the customer are divided according the their areas and
location such as rural, national and local region in the market. the organisation offers their goods
and services according the trends followed in the different location in the international market
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places . the organisation have vary number of the customer present in the different location or the
region across the global market so they needs to examine and identify the potential customer for
their goods and services.
Strength: this part helps the organisation to make the segment according to customer region so
that effective and potential customer needs to find out .
Limitation: while conducting the reach about the customer some areas are not taken into
consideration which affects the performance of the company.
Behavioural segmentation: here the customer are segmented according to the their behaviour
towards the organisation product and services, changes in the prices of organisation product ,
offers given by the company. This way helps organisation to identify their customer in the
various market and serves them accordingly in the market and earn the profits margin in the
target market. (Van Kilsdonk., 2018)
Strength: here the customer are grouped together who are having the same behaviour at the
market places.
Limitation: sometime customer have mood swings which harm the research carried out in the
market places.
Physiographic segmentation: under the customer point of view is considered , their attitudes
towards the product and services, and interest and perception about the organisation goods and
services. in the context of the organisation, they provide their services to its customer as their
demand in the market.’
Strength: the company make the effective segment as per the interest of customer so that goods
can placed into proper market .
Limitation: here the company are not able to reach to the real customer of the new good which
reduce their outcomes.
Targeting strategy : Market targeting is a process of selecting the target market from the entire
market
this stage come after the effective segmentation done in the market place, here the organisation
make proper target their market then place their services in the market so that they can achieve
the desire level of profits in the competitive market . the organisation are entering into the
Romania market with the web design services in the market so they need customer who are
looking for designing their websites.
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Here the targeted market are the firm which need web design service to carry out their service so
that the client will offer them these service which will helps to perform better in the market place
Positioning:
This involves designing an offering so that the target segment members perceive it in a distinct
and valued way relative to competitors here, under this phase, the target customer are reached
out by the organisation and finds out the competitors present in the market place so that
organisation can place their new services and goods in the targeted market . the aim of the
organisation is to place the right kind of product and services in the right market so that right and
accurate customer can use the services and organisation can take the competitive edge in the
market and enhance their market share.
Product: here the organisation focus on providing the different kinds of goods and services
such as web designing services which includes the development of the websites and their
maintenances, and also offer branding facilities, content and visuals design for the customer . the
organisation produce it goods and services according to the needs of the customer and capture
the market and earn the revenues in the long run. (Stevenson 2019)
This product can be placed at the international market places where the customer can reach out
the company and use their product to execute their performance at the market places.
Prices: it is important aspect of making effective strategies for the organisation as reasonable
prices helps the organisation to attach customer towards the company services. to take over the
new market in the Romania organisation need to examine the whether the customer are price
sensitive or not and what factors affects the purchasing power of the customer in the market
places and accordingly decide the price of the services.
Place: here the organisation needs to find out the attached place where they can place their
goods and services in the market so that customer can purchase the good in the target segment
and as the company focus on expanding their business at the international market place, so that
their new services can used by the different kind of customer and this will lead to more sale for
the organisation.
Promotion: under this stage, the organisation uses the different kind of promotion schemes so
that its customer aware about that organisation are coming with the new services in the different
market so that customer can use them. The company can use the various model to make the
promotion such as advertisement newspaper and various anther modes.
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The organisation offers new web design services in the Romania market by making effective
segment and then targeting the customer and place the goods and services in the most
productivity market place so that organisation can earn the profits
. The organisation wants to place their new web design services in the new country Romania by
targeting the customer who are already present in the market and place their new service in the
market by promoting their pre-launch and post launch advertisement in the target market so that
people are aware about the new goods.
apply the porter five forces strategies:
The porter five forces model refers to the strategies tools which helps the organisation to
examine the competition present in the market place. with the help of these forces the
organisation are able to know their strength and weakness and tries to overcome any issue to
achieve the desire outcomes. the porter five forces helps the company to understand the market
and various factors which can affect the outcome of the organisation.
These forces are part of the environment analysis which are done in the PESTEL section, which
helps the customer to examine the market in proper ways and finds out the forces which helps
them to achieve their new market with the new goods and services in the targeted market .
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Competition from the rivalry: under this force, the there are number of competitors in the
industry which can make the issues for the organisation to enter into the market place. in the
context of organisation, another company which are already working in the Romania market can
be threats for the Ashanti firm to enter in the market which make the organisation less powerful
in the market. (Reynolds 2017. )
Threats of new entrants: here the organisation can face the more competition if more
company are entering into the Romania market. this threats will affects the business activities of
the organisation and also reduce their profits margin in the market place
Bargaining power of the suppliers: under this stage, the organisation are offering their goods
and services at high prices in the market when the competition in market is high and companies
are challenging with each other .there number of the supplier are high in market so that can
charge price according their needs.
Bargaining power of the buyer: under this stage, the there are lesser number of supplier and
more number of the buyer in the market . if the organisation are tries to increase the price of the
goods and services then customer will switch to another companies goods. . here the customer
compare the prices of the service of different companies before purchasing the goods from the
organisation and choose the lower price product.
Threats of substitutes : under such condition, the subsistitute goods are present in the market in
place of the organisation product. If the customer finds out the product and service at the lower
prices than the organisation goods then the customer will switch to substitute goods in the market
places. (Kwan and Carlson,, 2017).
Porter generic strategies:
here the organisation focus on taking the competitive advantage by examining the market place
and make effective strategies to overcome the theatres.
Cost leadership: here the organisation aims to providing the goods and service at low prices as
compared to their competitors present in the market so that more customer can be attracted
towards the organisation new goods.
Differentiation: the organisation focus on offering the different goods and services to the new
market of Romania so that customer gets the new good which complete their task in effective
manners.
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Focus: the company here focus on providing the new wed designs service to its target customer
at the affordable prices to capture the market and take competitive advantages .
The organisation can focus on cost leadership approaches as its helps in growing their business
to next level in the market places.
The critical analysis of the generic strategy is that it helps the client to examine the market
place in terms of cost and how to take the competitive advantage in the market place so that
they are able to attach more customer towards their goods and services. the negative side is that
sometime the firm are not able to examine the market which affects the their operational
activities and their new product in the market .
In the context organisation, the firm is trying to enter into the Romania market with the new
service which can create the threads for the organisation already operating their which further
lead to increase in number of seller in the market, enhance the cost of the organisation and harm
the performance of the company
Conclusion:
According to the above discussion, it can be stated that strategise marketing are essential part of
the organisation which helps them to introduce the new product and services in the new market
place. the organisation need to examine the macro environment which can influence the
performance in the target market and helps in making the effective strategies which will promote
the growth of the organisation. the porters five forces helps the organisation to examine the
competition present in the work environment so that effective steps can be taken to launch the
new goods in the different location in the new market. (Möller and Halinen,2017)
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(Andreasen,. and Kotler, 2015. )
(Azlan, Moamin. and Mohd, 2016)
(Boyko and Zubko,2015)
(Hansen. and Klokholm 2015)
(Jack and Powers,2015)
(Krush Sohi and Saini,2015)
(Kwan and Carlson,, 2017).
(Möller and Halinen,2017)
(Reynolds 2017. )
(Stevenson 2019)
(Van Kilsdonk., 2018)
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