Strategic Marketing Analysis and Recommendations Report

This report provides a strategic marketing analysis of BHP Billiton, focusing on its operations in the UK market. It begins with an introduction outlining the company's key concepts, including PESTLE analysis, market entry options, market segmentation, and Porter's generic strategy. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors impacting the business. The report then explores various market entry options, such as direct exporting, franchising, licensing, and joint ventures, along with market segmentation strategies. It also discusses Porter's generic strategy to assess the company's competitive advantages. The report concludes by summarizing the key findings and recommendations for the company's marketing strategies, offering insights into its potential for global business management and market sustainability. It provides a comprehensive overview of the company's marketing concepts and their implications.

Management 1
Strategic Marketing

Management 2
Executive Summary
This report has been described about the various marketing strategies and analysis of the
company BHP Billiton that works in the UK market. The report analyse about the various
aspects of the business that includes pestle, market entry and several other options. The pestle
analysis is much more beneficial for the business and it maintains the overall strategy of the
business. The report has been discussed about the several concepts of marketing and
management of business. The market entry options give the description regarding the entry in the
market which helps in managing the global business. The BHP Billion company options have
been described in this report. The concepts of market segmentation have also discussed in this
report.

Management 3
Contents
Introduction......................................................................................................................................4
Pestle Analysis.................................................................................................................................5
Market-Entry Options......................................................................................................................8
Market Segmentation.....................................................................................................................10
Porter’s generic Strategy................................................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Management 4
Introduction
This assessment outlines some key concepts of the BHP Billiton company that works in the
multinational mining, metals and petroleum products. This is one of the leading resources
company in Australia. The report describes about the several key concepts of the company that
includes proper pestle analysis of the company to understand the overall environment of the
company. The proper market-entry options will be discussed in this report. The market
segmentation is one of the important parts of the business so the market segmentation of the BHP
Billiton will be discussed in this report. The market segmentation is he method in which market
divides the main consumers into groups as per the different characteristics (Jungbook, 2015).
The Porter’s five forces related to the company will also be discussed in this report. BHP Billiton
is a mining company that founded in the year 1860. The several market entry options will be
discussed in this report that guides the company to enter in the market properly and managing the
global business at large level (SHTAL. Et al., 2018). The market entry strategies support the
company to sustain in the global market and expand their business in a proper manner. The
pestle analysis included the several political factors, environmental factors, economic factors,
social factors and several other factors will be discussed in this assessment. The marketing
concepts related to the company will be discussed in this report. The main aim of the report is to
discuss some of the marketing concepts of the selected company (Zalengera, et al., 2014).

Management 5
Pestle Analysis
The Pestle analysis includes the external environment analysis related to the business. This helps
the company in maintaining the business strategy to sustain in the international market. This
concept helps in managing the competition to maintain the profitability and sustainability of the
company. Pestle analysis of the BHP Billiton include various factors which are political,
economic, social, technological, legal and environmental (Chung, 2016). All these factors give
the brief analysis about the various concepts of the business that helps the business regarding
various concepts. This concept also gives the information regarding the potential challenges
faced by the company in the global business (Felix, et al., 2017). The competitive concepts faced
by the business is also included in the pestle analysis. The various risks of the company
decreased by understanding the overall environment of the company. The analysis of different
factors of the company will be discussed below-
 Political Factors
The various political factors affect the profits of the company and also create the diversity in the
business environment. The political risks are affected by the decisions taken by the government
and the several concepts related to the government of the company (Humphreys, 2013). The
creation of sudden changes impacts the overall business. The political factors mainly affected the
global business that does not know about the political stability of the other country. The various
business operations of the company also included in the political factors. The main political
factors affected the BHP Billiton are:
1. The trade barriers that harm the companies by preventing the potential exports.
2. The level of political stability in the last few years
3. The integrity of politicians that act in the corruption activities.
4. The laws of the business that enforces by the country.
5. High level of taxation in the country (Effendi and Courvisanos, 2012).
6. Low minimum wage

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 Economic Factors
Economic factors include the economic conditions of the company that affect the overall
business of BHP Billiton limited. The economy is one of the crucial process of the business
so it is important to maintain the economic conditions (Marsh, et al., 2014).The economic
process includes inflation rate, foreign exchange rate, interest rate, and several other rates.
The economic factors include:
1. Economic system of the company needs to be proper for the better business.
2. The GDP growth will affect the growth of the BHP Billiton company.
3. The interest rare in the country impact the persons that used to borrow and invest.
4. The operations in the financial markets also affect the overall business.
5. The exchange rate affects the overall profitability of the company.
6. The high level of unemployment increases the supply of job demands in the country.
 Social Factors
The direct reflection of the society impacts the social factors of the BHP Billiton Limited.
The various cultures, beliefs and attitudes of the country affected the business profitability
and sustainability in a large manner. The social factors impact the overall marketing aspect of
business. The social factors that affect the BHP Billiton company are discussed below-
1. The changes in the educational process between the markets and target markets affect
the business and several other priorities related to the business
2. The population demographics and their ages and genders affect the particular product
of the company.
3. The class distribution among the population is too important as it is used for the
promotion of the products in the BHP Billiton company.
 Technological Factors
Some of the main technology factors that affect the business of the company are:
1. The recent technological developments made by competitors as the company uses
new technology for the better production and growth in the market.

Management 7
2. The technology of other firms affects the business of the company.
3. The use of technology improves the overall products in the company.
4. The effect of technology on costs decrease the profits achieved by the company.
 Legal Factors
Legal factors majorly affected the business of the company and several other aspects of the
business. The main legal factors come into the consideration are discussed as below-
1. Laws od discrimination made by the government are used for the proper protection of
the employees and this improves the several opportunities for the company in
achieving more profits.
2. Health and safety laws maintained the employee relations and improves the process
of business.
3. Laws related to the quality and price of the product keeps the customer safe.
 Environmental Factors
The environment is a significant factor of the company that gives the proper protection of the
company. The main environmental factors are discussed below-
1. The weather conditions affect the functions of BHP Billiton as it manages the
transportation of the resources (Salavou, 2015).
2. Climate change of the country affect the large amount of the products and affect the
profitability of the business.

Management 8
Market-Entry Options
The concept of market entry is essential for the overall concept of the company as it manages the
several factors of the company and supports the company to sustain in the international market.
The market entry strategy helps the company in planned distribution and delivery method of
goods in the new market (Wilson and Gilligan, 2012). These options help the company in the
proper management of contracts in foreign country. BHP Billiton adopts several market entries
options that helps the business to enter safely in the foreign market and manage the business
activities in a proper manner. This planned method improves the sustaining of the business in
international market. There are various ways by which company enters in a foreign market
(Martinez-Simarro, et al., 2015). Every market follows different market strategies and the
company need to use different options to manage the business in international market. The
market entry options of the business are included as below-
 Direct Exporting
The direct exporting is the best market entry option used by the company to enter in the
foreign market. By the use of direct exporting the company sell their products and
services directly in the foreign market (Morgan, 2012). Several business companies use
the sales program to represents the other distributors in the particular international
market.
 Franchising
Franchising is the American process used for the market expansion but it is used to gain
traction in other parts of world. BHP Billiton need to use the franchising process to
maintain the business in the international market. The franchising model is one of the
best models adopted by the foreign companies.
 Licensing
Licensing is also one of the process used for the expansion in the international markets.
In this process firm transfers the right to use the product or service to another firm. This
is useful strategy if the purchaser uses the license for the relatively large market share in

Management 9
the market (Same and Larimo, 2012). Licenses can be used for the proper process of
marketing and production.
 Joint Ventures
Joint ventures are a proper form of partnership that includes the creation of independently
managed company. BHP Billiton uses this process of the company to work together in
the particular market (Riasi, 2015). As this process include various risks that affect the
overall process of the company. This process is used by several other companies to
maintain their business in the foreign market.

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Market Segmentation
The market segmentation is one of the important process adopts by the company that divides the
market of consumers. Segments includes the proper composition of consumers that adopt
different marketing strategies. BHP Billiton includes the process of market segmentation for
maintaining the activities in international market (De Villa, et al., 2015). The different type of
characteristics in the customers are chosen in the process of market segmentation. The marketing
segmentation adopted by every company that needs to expand in the international market. The
company achieves proper development by using the strategy of market segmentation. The
process of market segmentation makes the business easier and reduce the fear of facing loss in
the market.
The main and essential purpose of market segmentation is to give the consumers what they
exactly want and achieves proper satisfaction among consumers (Wulff, 2015). . As per the
market segmentation, the consumer behavior is also impacted and achieves proper services.
BHP Billiton segment their market by including different factors like age, gender, income,
lifestyle and values (Thompson, et al., 2015). The buying behavior of the consumers are included
in the market segmentation of the company. All of the marketing strategies improves the overall
marketing process and this improves the business process.
By adopting the market segmentation process, BHP Billiton row down the large and diversified
target audience into different groups. By using this method, the company adopted the
information of customers by surveys (Swoboda, et al., 2015). This is one of the effective
marketing strategies used by the consumers for the betterment of the business. The company uses
the various segmentation strategies for the right market segments which are discussed below-
1. The geographic segmentation adopted by the company divides the market as per the
geographic areas that includes city, country and region.
2. The use of psychographic segmentation result in consumers as per the different lifestyle,
interests, attitudes, values and traits (Ang, et al., 2015).
3. BHP Billiton uses the behavioral segmentation so that customers will divide as per the
process of purchasing.

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4. The demographic segmentation used by the company to divides the market as per the
demographic features which includes age, gender, income and ethnicity.

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Porter’s generic Strategy
This model is used for the proper strategic management of the business that needs to examine the
competition of an industry. The company maintains all the competitive advantages by using the
porter’s five forces (Venter, et al., 2015). Each of the five forces improve the overall strengths
of the company that maintains the profit potential in the industry. The strength of these forces
affects the overall process of industry. The profitability and attractiveness of the company is also
affected without proper strategic management. The Porter’s five forces used by the company are
discussed as below-
1. Threat of new entrants
This is the main operations included in the overall process of the company. This
maintains the overall profit of the company. This makes the process easier that affect the
overall cost advantage. The differentiation of products is essential for BHP Billiton
(Aghdaje and Alimardani, 2015). The customers also look after the differentiation of the
products and this process increases the threat of new entrants in the industry.
2. Bargaining power of suppliers
The buyers are less than the suppliers. This shows that suppliers cannot able to control on
the prices and it weakens the bargaining power of suppliers.
3. Bargaining power of buyers
The BHP Billiton operates lot of suppliers as compared to the firm so the buyers have
less firm to choose. This process affects the overall concept. The income of buyers in the
industry is low (Jamal, et al., 2015).
4. Threat of substitute products and services
The substitute of products and services are too low in the BHP Billiton company. This
creates the low profit among the industry (Craft and Hassan, 2015). The few substitutes
are too expensive so the buyers cannot rely on the high-quality substitute of products.
5. Rivalry among existing firms