BAE Systems PLC: A Detailed Marketing Communication Strategy Report

This marketing report provides a comprehensive analysis of BAE Systems PLC, a British multinational defense, aerospace, and security company. It begins with an introduction that highlights the importance of marketing in promoting business products and services. The report then delves into the company profile, providing details about its operations, financial performance, and market capitalization. A context analysis examines internal factors like strategy, culture, resources, and socio-political influences, as well as external factors including market analysis, consumer trends, competitors, and political and economical factors. The marketing communication strategy is explored, including the DRIP model, segmentation, and targeting. The report concludes with a peer analysis and a discussion of the company's overall performance and strategic recommendations.

Marketing Report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
Company profile ........................................................................................................................4
CONTEXT ANALYSIS..................................................................................................................5
Internal analysis...........................................................................................................................5
Strategy....................................................................................................................................5
Culture......................................................................................................................................5
Resources.................................................................................................................................5
Socio-political..........................................................................................................................6
Market Analysis (MA).................................................................................................................6
Consumer Trend.......................................................................................................................6
Agencies ..................................................................................................................................6
Competitors..............................................................................................................................7
Strategy and utilizes of tools....................................................................................................7
Media message ........................................................................................................................7
External analysis .......................................................................................................................7
Political Factor ........................................................................................................................8
Economical factors...................................................................................................................8
MARKETING COMMUNICATION STRATEGY........................................................................8
Communication strategy..................................................................................................................8
DRIP model.....................................................................................................................................9
Segmentation..............................................................................................................................10
Targeting....................................................................................................................................10

What is positioning map?...........................................................................................................10
Peer Analysis ............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
APPENDIX....................................................................................................................................16

INTRODUCTION
Marketing is all about to promote the business product online. The report will evaluate
the overall performance of the company and determine the importance of marketing within a
business. The present study will be based upon the BAE System Plc who is operating in England
under transporting and manufacturing activities. The study will describe the company’s profile
and context analysis in which internal, market and external analysis will be discussed. Further,
report will define the marketing communication strategy and peer analysis in order to determine
the company’s financial performance.
Company profile
BAE SYSTEM PLC (BSP) is the British multinational company that is world’s most
advanced defence aerospace and security solution provide. The business covers all type of
relatable services such as electronic warfare system, intelligence collecting armoured vehicles.
The world is at competing level where each firm wants to move ahead from the other. Aim of
organization is to create sustainable value for all investors, suppliers and others stakeholders. It
pay attention on managing risk of both present and future. Company operates in manufacturing
of defence elements which is most ahs huge scope in current era. The financial position of
organization through its net income which has been moved towards downward direction that
requires improvement to gain competitive advantages (Giudici, Milne and Vinogradov, 2020).
Market capitalization of BSP for the current period is £ 16.7 bn which has as well decreased as
compare to the previous time.
The sector in which BSP operates is one of the most essential industry in government
appearance can be seen. There are various regulations, legislation, laws that company needs to
adhere for having smooth function of organization. In addition to this, changing circumstances
highly impacts the firm operating in this particular industry. The impact can be judged by giving
emphasis on company’s external as well internal analysis. It can also be evaluated through
knowing competitors strategies as it is one of the crucial factor which influences the growth of
enterprise. In order to be effective the in the industry firm need to pay attention on all factor
which impacts its growth, economical factors such as GDP of nation, government regulations,
etc are some of the crucial factor that has largely impact this particular sector. Company get

affected from these elements as it operates in such as crucial and sensitive sector which is related
with public interest.
CONTEXT ANALYSIS
Meaning: It is the method through which a company is able to determine the
environment in which it is operates by scanning the macro and micro analysis.
Internal analysis
Strategy
The company’s strategy is to ensure to provide strong and sustainable services to their
customers in order to take a business at further level of success. It also conduct in-depth external
analysis which helps to meet the success of the company and further better aligns with the group
strategic framework.
Culture
By using Hofstede cultural dimension model (attached in the Appendix-1), it has been
analyzed that the score of individualist is high which means the business offer the products to
meet the society need. On the other side, its rate is high towards masculinity the values of the
organization are made for the competition and develop strategy to meet the define aim. Overall,
the culture of the company is positive towards the employees where staff has a positive
environment and company offer range of extra benefits to maintain longer relationship (Lu Feng,
2018).
Mission: To provide vital advantage in order to help the customer and meet the define
need of customers.
Vision: To become a premier international defence, aerospace and security company at
world level
Values: Company relied upon the values i.e. leadership, integrity, trust, relationship.
Resources
There are key resources used by the company such that Human resource which includes
employees, customers. Financial resource and technological resource are another key resource

used by the BAE System Plc. Such that it keeps comply with advance technologies in order to
implement the same that helps to meet the market needs.
Socio-political
It is related to combination of social and political factors and company keep focusing
upon the changing need of customers. Thus, to comply the same, it also innovate the products so
that it sustain the brand image at global level. On the other side, during Brexit, companies faces
numerous issue because UK leave European Union and as a result, companies overall
performance is affected (Thomas and Smith, 2021). Moreover, if there is a sudden increase in tax
rate, then company decrease the price of the offered products so that it will helps to cope up with
the tax rate. In the same way, having a brand image at global level, BAE System Plc also
develop different strategy in order to meet the defined aim.
Market Analysis (MA)
MA refers to evaluating the components of market which has impact on the performance of
organization. In other words, it examines the market size, taste and preferences of buyers,
competition level, etc. It is exerted by giving focus on various factors which helps the company
to stand strongly in market.
Consumer Trend
Every company conducts its operations for selling its products and services to end buyers
so that its objective of higher profitability can be obtained. From the market analysis firm came
to know the prevailing consumer trend so that its activity can match with buyers’ requirements
(Prodanova and et.al., 2019). UK consumer spending trend has been raised up to 10.1% while in
non necessary spending has decreased to 4.4%.
Agencies
There are various agencies which helps the BAE SYSTEM PLC. to increase its revenue
generating of the company. BSP is widely operates in communications equipments, armoured
vehicles, cyber security, etc. which aids in increasing its market share and reach to customers.
From the perspective of market analysis it is found to be crucial in order to diversify the
company’s risk and get guidance in increasing its scale of operations.

Competitors
BSP is one of the third largest defence contractor which has various competitors that
gives firm cut throat competition. It includes Lockheed martin, general dynamics, Boeings,
Paramount Group, and some other competitors such as Coventry Ordnance Works, Babcock
international, Devonport management limited, English electric, etc. These competitors has been
selected due to their effectiveness of changing circumstances of industry (Ilin and et.al., 2017).
In addition to this, some companies has good revenue generating capacity where as other ahs the
strategies to cope efficiently with market trends.
Strategy and utilizes of tools
Firm has strategy framework which helps the firm to grow successfully in the industry. .
the strategies and approaches adopted by firm ensures that its matching with its company’s
vision and mission statements so that predestined objectives can be achieved (Joll and et.al.,
2018). Framework comprises five strategy such as marinating & growing defense businesses,
continue to grow adjacent markets, developing & expanding in international platforms, diverse
through inspiring workforce, enhance financial performance and provide sustainable growth to
shareholders. In addition to this, the aim of all these strategy is to have systematic structure for
sustainability in industry.
Media message
Company is one of the third largest organization which is ensures dynamic commercial
environment offering fantastic prospects in wide areas. Media message is one of the most
important elements of the marketing analysis that requires firm attention.
External analysis
It refers to evaluating all uncontrollable factors which can affect the operational
efficiency of organization (Çitilci and Akbalık, 2020). It helps in evolving the various external
factors such as political, social, economical, environmental, technology, legal. It helps in
identifying influencing factors in both positive and negative manner and which need to be taken
into consideration while formulating strategies for achieving business objectives.

Political Factor
It is one of the most the important factors which are highly affecting the organization
performance. In addition to this, BSP is being part of defensive and transport sector is require to
adopt the changing circumstances to develop an proactive approach for attaining progressive
situation. With respect to this, reason behind this selecting this particular system is to over the 5
years industry is transposing allot so it needs advanced technological approach for gaining the
success (Sánchez-Cambronero, González-Cancelas and Serrano, 2020). The external factor is
selected as political stability largely impacts the success of BSP. It includes the risk of military
invasion, bureaucracy, legal framework, trade regulations & tariffs, trading partners, pricing
regulations, wage legislations, mandatory employee benefits, etc these are the one of the factors
contributes in deciding the movement of company’s growth. In addition to this, it negatively
impacts the firm’s success by lowering down its operational efficiency and profitability. It needs
to be improved by making such adopting approaches that helps in gaining success.
Economical factors
The macro environment factors such as inflation, interest, saving rate, GDP, etc. are some
of the elements that affect the company working process. Economical factors are that element
that increases the barriers for company as it requires high concentration for overcoming. It
reduces the competitive advantages of BAE SYSTEM PLC. With respect to this, being part of
transportation industry company need to cope up with economical elements for efficient
functioning. It includes economical system of country, exchange rates, efficiency of financial
market, infrastructural quality, skill level of workforce, labour cost and productivity, business
cycle stage, employment rate, etc. BSP need to pay concentration on these economical factors so
as to develop strategic suitable approach. The reason behind selecting this particular element is
that it heavily impacts the smooth functioning of company through changing circumstances.
MARKETING COMMUNICATION STRATEGY
Communication strategy
The communication strategy mainly refers to the plan which helps in accomplishing the
communication objectives. It is applicable in various aspects like the internal communication.
Marketing communication along with public relations. It has 4 main components which are

communication goals, target audience, plan and channel. The communication goals involve the
desired end results of the program of communication which is mainly the first step in developing
communication strategy (Heiman, Ferguson and Zilberman, 2020). Target audience is the one
with whom communication is to be made in respect to internal communication, this is mainly
involving the stakeholders of the project. For marketing communication, the target audience
might include customers, media representatives and the target market. Next is the
communication plan which presents an outline of how the communication strategy will be
accomplished which involves schedule and responsibilities as well. Last is the channels, which
involves the mode of communications.
DRIP model
This model is used for supporting marketing communication planning and is mainly set
up when attaining broad communication goals. It is mainly applied when the launching a new
product or in case of repositioning an existing business. In respect to BAE systems, following is
the working communication flow:
Differentiate: The company has differentiated itself from its competitors in terms of
diversified business maintenance training and consulting along with the unique product design
which makes it stand out in the competitive market (Hassan, 2019).
Reinforce: The company reinforced the brand through the way of effectively
understanding the needs and expectations of the customers. This has helped in better
segmentation of customers.
Inform: the company makes use of the various promotional tactics which helps in
effectively communicating the customers about its products and services. This results into
increasing the customer base.
Persuade: The company persuade its customers in engage with the company and how
that they are switching from its competitors.

Figure 1 Source: https://www.smartinsights.com/traffic-building-strategy/offer-and-message-development/use-drip-model/
Segmentation
The company has segmented its market to the customer specific which are into
aerospace and the defence security products. Based upon the relevance of its products and
services, the market segment is being selected.
Targeting
Based upon the segmentation, the company has targeted the customer groups which
involves the national government and the armies. As they are one’s who would be requiring such
products and services.
What is positioning map?
Positioning map is the visual depiction of the target market thinks about the product.
The data is to be obtained by the means of market research and analysis and is mainly depicted
as a scale of high quality/price to low quality/price. It is the diagram illustrates the perception of
the customers based upon the price, quality or the other product benefits and how this perception
is compared with the competitors (What is a positioning map in marketing? 2020). This provides
assistance to the marketers in coming up with the appropriate positioning strategy which will
result into developing the new competitive advantage or improving and enhancing the existing
ones. In order to create the position map, it is important to understand the needs of the customers

based upon which carrying out the market scope analysis which helps in determining the right set
of products, price and benefit attached with it. The core or the amin benefits are the quality,
features and serviceability as the other parameters, thus the different product and services are
then analysed and then placed in the right quadrant pertaining to the price and quality.

Peer Analysis
From the analysis of ratios company can derive essential information for identifying its
strengths and weaknesses. The analysis of financial position of BAE SYSTEM PLC. is exerted
for the duration of five years from the 2015 to 2020 to get deep insights. Profitability ratio of
company from the year has been change in drastic manner. From the appendix it can be assessed
that enterprise return on capital employed has been decreased from 2015 to 2018 and then
increased in 2020 and reached 34.37%. It is higher than the ideal ratio of 20% which is
indicating good efficiency in utilization of capital for generating profits. It requires
improvements for having sustainability in industry (Santis, Grossi and Bisogno, 2018). From the
2015 to 2016 inclination of profit margin can also been seen which is reflecting BAE SYSTEM
PLC. is putting full potential for create profit for satisfying stakeholder. Return on total assets
has as well follows the same trend as mentioned above. It can impact company performance in
positive manner as firm has contributed large efforts to improve its previous situation and
uplifted its liquidity condition which can attract investors.
Operational ratios aids in identifying the efficiency of business. by giving emphasis on
the fixed assets turnover ratio it can be assessed that BAE SYSTEM PLC.’s efficiency has been
decreased from the period of 2015 to 2020 as it can be validate by looking in appendix. It
requires measure modification as by referring the mentioned period it has drastically decreased
from 1.24 to 1.09 which decline its creditworthiness in industry (Osadchy and et.al., 2018.).
debtor collection turnover period has followed the downward movement which is positive sign in
order to increase the liquidity of company. Low debtor turnover ratios indicates company is
putting efforts to make its credit policy effective by taking suitable course of actions which
enables it to move ahead from competitors. In addition to this, it has declined from 7.17 to 4.60
that represent well financial position. Current ratio from the period 2015 to 2020 is 0.89, 0.96,
1.09, 1.03, 1.01 and 1.00. It has decreased then uplifted and reached to ideal ratio still making
improvement can enable company to enhance its efficiency of paying current liabilities.
Liquidity ratio from the selected period 2020 to 2015 for analysis is 0.91, 0.92, 0.95, 0.98, 0.86
and 0.78 and upward moving trend can be helpful in attracting stakeholders fro taking financial
decisions in company’s favour.

S.
N
O RATIOS FORMULA CALCULATION (2020)
BAE
SYSTE
MS
PLC
LOCK
HEAD
MARTI
N
GENER
AL
DYNA
MICS
NORTH
ROP
GRUM
MAN
BOEI
NG
1
Net Profit
Ratio Net profit / Sales * 100 7.11% 10.45% 8.35% 8.67%
20.53
%
Net Profit 1371 6833 3167 3189 11941
Sales 19277 65398 37925 36799 58158
2 Current Ratio
Current assets / Current
liabilities
-
1.00245
12416
1.39079
88229
1.34947
38161
1.601670
1461
1.393
69844
18
Current assets 9406 19378 21543 15344
12164
2
Current
liabilities -9383 13933 15964 9580 87280
3
Inventory
Turnover ratio
Cost of goods sold /
Average inventory
20.9054
373522
15.8414
293691
5.63850
62241
42.45654
99351
0.869
58114
39
Cost of goods
sold 17686 56744 33972 32734 68843

Average
inventory 846 3582 6025 771 79168
4
Earnings per
share
Earnings available to
equity shareholders /
Number of equity shares
40.5937
5
24.4910
394265
11.0348
432056
19.09580
83832
20.86
64323
374
Earnings
available to
equity
shareholders 1299 6833 3167 3189 11873
Number of
equity shares 32 279 287 167 569
5
Debt Equity
Ratio
Long term debt /
Shareholders equity
1.28731
42365
1.93998
33749
0.63820
95652
1.348048
0197
-
3.379
01288
49
Long term debt 5977 11669 9995 14261 61890
Shareholders
equity 4643 6015 15661 10579
-
18316
 Net Profit Ratio – The net profit ratio of the company shows the percentage of earnings
over the revenue from operations that are generated in a particular financial year (Zolfani,
Yazdani and Zavadskas, 2018). From the above table it can be analysed that BAE
systems hve the lowest net profit ratio among its competitors at 7.11 %.
 Current Ratio – The current ratio shows the liquidity position of the business in term of
meeting its short term obligations and liabilities. It can be analysed from the above ratio

analysis that company has very poor liquidity position as current assets are just
equivalent to current liabilities (Zolfani and Chatterjee, 2019).
 Inventory Turnover ratio – It shows number of times inventory is consumed in the
year. This position is comparatively better for the company as it exist on the second
position in the competitor list at approximately 20 times.
 Earnings per share – This shows the earnings generated for the per unit of share that is
issued by the company. The earning per share of the company is best among the
competitors and almost twice even compared to the company offering best earning to the
shareholders.
 Debt Equity Ratio – The debt equity ratio of the company shows the proportion of the
debt and equity capital (Hicks and et.al., 2020). The policy of the company is to maintain
the equivalent balance of both the owned and borrowed capital.
CONCLUSION
It can be summarized from the above project that BAE Systems plc have been operating
in a highly competitive environment facing challenges to survive in the market. It has formulated
several strategies so that it can derive competitive advantage in the market. The market
communication strategy have been established through conducting detailed internal and external
environment analysis, peer analysis through comparing the ratios of various competitors and also
based on these informative analysis the company sorts to analyse its performance in the market.
The various strategic tools, models and theories have been applied to get deeper insights into the
company statistics and strive to improve it.

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APPENDIX
Hofestede cultural dimension