Pestle & Mortar's International Marketing Strategy and PESTLE Analysis

This report provides an in-depth analysis of Pestle & Mortar's international marketing strategy, focusing on their potential expansion into Malaysia. It begins with a company overview and a situation analysis that includes a PESTLE analysis of the macro-environment in Malaysia, covering political, economic, social, technological, legal, and environmental factors. The report also examines the micro-environment using Porter's Five Forces model, assessing competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entrants. An internal analysis is conducted using McKinsey's 7s Model, evaluating strategy, structure, systems, shared values, skills, style, and staff. The report defines specific marketing objectives and justifies them based on the challenges and opportunities in the Malaysian market. It covers portfolio analysis, market attractiveness, franchising considerations, and segmentation, targeting, and positioning strategies. Finally, the report outlines marketing tactics related to product, place, price, and promotion, providing a comprehensive plan for Pestle & Mortar's international expansion.

International Marketing
Evaluation & Strategy

Executive Summary
The present report will cover discussion about effective decision making and also about the new
environment with support of PESTLE analysis. The report also consist of developing business
marketing strategy for expansion purpose. The report will also cover discussion about elements
before decision-making.

Table of Contents
INTRODUCTION ..........................................................................................................................4
Company Overview.........................................................................................................................4
3.Situation Analysis.........................................................................................................................5
3.1 Macro Environment Analysis...............................................................................................5
3.2 Micro-environment Analysis................................................................................................6
Operation Environment study through Porter's five forces model..............................................6
Competitive Rivalry (Medium)...................................................................................................6
Supplier Power (Low).................................................................................................................7
Buyer Power ( Low)....................................................................................................................7
Threat of Substitution (Medium)................................................................................................7
Threat of New entrants (Medium)...............................................................................................7
Internal analysis of Mckinsey's 7s Model..............................................................................8
4.Marketing Objectives....................................................................................................................9
4.1Rational for objectives...........................................................................................................9
4.2Justification............................................................................................................................9
5.1 Portfolio Analysis................................................................................................................10
5.1.1Attractiveness of Malaysia...........................................................................................10
5.1.3 Franchising in Malaysia..............................................................................................12
5.1.4 Segmentation, targeting and positioning....................................................................12
6. Marketing Tactics......................................................................................................................13
6.1 Product ...............................................................................................................................13
6.2 Place....................................................................................................................................15
6.3 Price.....................................................................................................................................15
6.4 Promotion ...........................................................................................................................16
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Marketing refers to those activities that a company undertakes in order to promote buying
and selling of products and services. Marketing basically includes selling, advertising and
delivering products to consumers and other businesses(Ahmad and et. al., 2020).International
marketing is basically about the application of marketing principles by industries in one or more
than one country(Saunila., 2016). In the present report, Pestle & Mortar is taken into
consideration. The company combines the high performance active ingredients with nourishing
natural extracts for creating skincare products that are simple and effective. The present report
covers discussion about effective decision making and also about the new environment with
support of PESTLE analysis. In addition to this, the report covers analysis about developing
business marketing strategy for expansion purpose. Moreover, the report will cover discussion
about elements before decision-making.
Company Overview
Pestle & Mortar is a company which is related to cosmetics and skincare field. The
company combines the high performance active ingredients with nourishing natural extracts for
crating skincare products which are simple and effective. The company's products are basically
inspired by founder's heritage in Indian natural healing They have created routine products which
are pure, safe and also suitable for all skin typesThe company provides simple solutions for
beautiful skin. They believe that everyone is beautiful and their mission is that to enhance and
protect the natural beauty. They harness the power of nature and science for creating skincare
products which are effective, innovative and simple to understand. The owner of the company
Sonia Deasy understands that it s very difficult to find out daily skincare routine which is simple
and effective.

3.Situation Analysis
3.1 Macro Environment Analysis
These are the uncontrollable external factors which affect the business decision-making
and also have impact on its performance.
Political Factors
Malaysia is basically a monarchy system, local administration and has bureaucracy which
is in complete collaboration with one another. The cohesiveness of all the departments combined
to make the Malaysian government a very stable management. The stability of government is
under great threat by the 'sweetner' term which is used for bribery. According to corruption
ranking, Malaysia was at 61 position out of 180 countries(Assaker., 2020). The stability of
government and political environment becomes stable in those conditions when it has peaceful
relationship with their neighbouring countries. China and Malaysia have serious issue about
conflict over Chinese ocean.
Economic Factors: The estimated nominal GDP of Malaysia country in the year of 2020 is
381.52 billion US dollars and it is ranked on 33 rd position in the world. This figure estimate that
country is making progress and moving up as well. Malaysia is heavily relied on exports so there
should be balance between local domestic consumption of products and services and foreign
exports(Baishyaand Samalia., 2020). Due to good export and financial stability of the
government it has lower unemployment rate. The major exports includes office machines,
integrated circuits and refined petroleum and major imports includes office machines and
broadcasting equipment. These imports and exports makes up the better condition of a country.
Social Factors: Malaysian population basically comprised of Malay people, Chinese and Indian
people. The majority is of Islamic religion in the country. As the country various kinds of
festivals of different cultures. Social class of country can be judged through their shopping style,
and the use of latest model of mobile phone. Malaysian people basically lives a healthy and
luxurious lifestyle when compared with upper-class and middle income countries. It is of due to
many reasons like lower income tax, health, education and justice is almost free.

Technological Factors: Angkasa which is a Malaysian national space agency which start
developing experimentation program and space education as well in the year of 2002 which
resulted in the form of a satellite named as 'Razaksat'. Country is basically rich in terms of great
resource of installer programs(Bhatia., 2020). They also embrace towards Hi tech companies
who have good access for data network and internet connection. Tech companies like Amazon,
IBM and google have good popularity among public and people also prefer for products of these
brands. By the end of 2025 year, country brings investment in the sector of tech area. This
investment not only contributes in terms of generating job opportunities but it also contribute in
terms of developing tech culture in a country.
Legal Factors: Country basically follows two laws which includes British common law for
secular and Sharia law for Muslims. Throughout the whole country, the malaysia parliament
implements federal laws.
Environmental Factors: Deforestation is the parameter due to which there are many species
which are on verge of extinction because of it(Aljarah and Ibrahim., 2020). Due to urbanisation it
lead towards deforestation. When trees are cutting on higher pace level then it lead towards less
oxygen and more carbon dioxide which ultimately results into global warming.
3.2 Micro-environment Analysis
Operation Environment study through Porter's five forces model
According to Michael Porter, there exists five forces that evaluates sources which are
important to access competitive pressure on the company. Porter developed a framework of
forces to explore the competitive ability of a particular business entity(Freixanet and Renart.,
2020).The source of these forces roots in questions it raises about the company's market or
competitors which Porter described along its framework. Lets take a close look to these forces
that affects overall activities of Pestle and Mortar business:-
Competitive Rivalry (Medium)
This force highlights the available challenges from other businesses involved in the same
industry that provides competition to the company. In context to the company, number of
competitors can be obtained on fingers, but most competitors covers a huge market area and are
greatly reputed with their different product ranges(Strategic analysis with PESTLE and porter’s
five forces analysis) It means that moderate competitive challenges may arise among existing

companies to capture greater market share. To tackle competition the firm could avail product
innovation, new marketing policies, differentiation techniques and market research to attract
more customers along-with retention of existing clients.
Illustration: Porter’s five forces Model
Source: Porter’s five forces: Definition and model

Supplier Power (Low)
It can be explained as the ability of suppliers to exchange their product and effectively
influence its sales-price with the retailers for higher profits. The list of suppliers in this industry
in which company operates is comparatively high, with nearly differentiated products, little
standardisation and have minimum switching costs(Islam and et. al., 2020). With regards to the
context it can be determined that the suppliers have weaker or low bargaining power, henceforth
they have to sell products at the prices demand by the company.
Buyer Power ( Low)
It defines the power of buyers to influence prices of items or commodities in the market
because of other less-cost items or good quality items available from other companies. Pestle and
Mortar operations has access to variety of customers of distinct ages, genders and cultures, but
the products are few, among which some are most preferred by the customers. Due to this there
is low threat from buyer's influence as they do not have the bargaining ability.
Threat of Substitution (Medium)
It can be considered as menace occurred due to availability of substitute items that gives
high competition to items produced by the company. There exists very few alternative products
offered by the external market at same price and quality provided by Pestle and Mortar and
another companies attempts to match their quality standards gets low on-profit and reduces price
margins on their produce(Jedin and Balachandran., 2021). The firm provides most of its
commodities at standardised costs due to their policy regarding quality products and high
margin. People nowadays dislike low grade products that wears-out immediately in a short run,
so they prefer company's quality products.
Threat of New entrants (Medium)
It refers to the arising potential damages that could be done by new products entering in
the market industry, in which business organisation is indulged. For a new company it takes
immense strength, will and finance to enter in such big market and stand strong in front of a well
established brand(Kim and Cavusgil., 2020).The enterprise has medium threat with new entries
in the market because of it's standardised products, quality focused clients, high expenses on

research & improvement, its classic reputation and government's policies regarding licensing and
legal requirement for new entrants in Malaysia.
Internal analysis of Mckinsey's 7s Model
This model has seven elements which includes strategy, structure, system, shared values,
skills, style and staff.
 Strategy: Sonia Deasy who understand needs and requirements of their customers and
launched skincare routine products which are manufactured by natural healing products
and powered by science as well.
 Structure: The management of Pestle and mortar effectively support, direct and control its
growing organisation.
 Systems: The company has sophisticated system and support the network through
managing the international operations(Mckinsey 7 S Model). Company is majorly relied
on customers response and their reaction towards products which will ensure about
company's performance.
 Skills: The effective human resource management and skills are important for company's
growth. As company does not have large number of staff but they are trained enough in
their fields to perform their activities. According to changing period of time, different
skills are required which can be developed through giving proper training and attention as
well.
 Staff: The company has approximately 20 to 25 staff members who are experienced and
trained enough in terms of their working parameter. The owner of company who leads
the organisation into effective manner by promoting their products through digitalised
platform.
 Style: The management and operational style explains about the personality and values of
pestle and mortar company. Their way of working is very ethical and sustainable in terms
of nature as well. They majorly use natural and healthy ingredients in their products so
that their style of offering products to their customers do not harm the core values of their
customers.
 Shared values: In the organisation of pestle and mortar, the staff members come from
different backgrounds and also have different culture as well. Company's values majorly

lies in terms of working together into collaborative manner and into positive manner as
well.
4.Marketing Objectives
SMART objectives help in terms of setting realistic targets which can be achieved within
a set period of time. Basically SMART stands for specific, measurable, actionable, relevant and
time-bound. Pestle & Mortar has already existed in various countries so internationalisation is
not new target for the business however considering the previous research existing into Malaysia
involves new entry strategy(Leonhardt., Pezzuti and Namkoong., 2020)Based on the PESTLE
analysis, they have to focus on expanding themselves as country's political condition is not very
strong and also country involved into corruption parameter as well. Their major focus is towards
improving their financial position into the market and also extend the visibility of brand as well.
4.1Rational for objectives
As Malaysia country is not very stable in terms of political terms so they have to take
extra efforts in terms of exporting their products to other countries. By market research and
organisational intelligence, the challenges related to exporting to different countries can be
resolved into positive manner.
4.2Justification
Marketing plans are the parameter which empowers Pestle & Mortar to deliver their aim
with more impact, announcement and less inefficiencies. Company owner can also increase their
market shares, price points, distribution channels and competitive strategies(Liu, Zhang and
Zhang ., 2020) Without having marketing plan, it is challenging for company to maintain its
cost parameter. Structured marketing plan support in terms of building brand, rising sales,
customer loyalty and even finding out new customers as well.
5.Marketing strategy
Company has used influencer marketing in terms of growth of their brand so that
customers can recognise it in easier manner.
5.1 Portfolio Analysis
GE- Mckinsey nine box matrix for the multi firm enterprise to prioritise its investment
among its business units(Madadi., 2021). The framework basically measures firm portfolio
which further provides strategic implications.

5.1.1Attractiveness of Malaysia
Malaysia is an attractive market which is an on going development economy and
basically the result of four economic forces. It includes ready access to natural resources, its
strategic position, long history of foreign investment and effective human resource
development(Meilatinova., 2021). According to different attractiveness components Malaysia
has medium level of attractiveness. The market size of Pestle and Mortar is around eight hundred
customers across the world. In terms of marketing purpose, they focus on Christmas festival
where they prepare a box for attracting customers on a large scale.
Illustration : GE Mckinsey Matrix
Source : GE Mckinsey matrix(With examples)-studious guy

For capturing the market, company has focused on social media platforms to connect
with different types of customers(Moslehpour and et. al., 2020).She tries to connect with people
through different kinds of apps, videos and live performances due to which they can market their
products into more effective manner.
5.1.2 Competitive strength
Competitive strength is that which is beneficial for the company where products and
services are better and produced on cheaper prices as compared to their competitors. With
respect to Pestle and Mortar company, their products are produced from natural ingredients and
soothing products which heals the skin in natural manner. Micro-algae and aloe-vera gel is used
in the products produced by the company. So these ingredients are not very expensive and it
gives natural products to their customers which act as advantageous situation for their customers.
Illustration : Market overview of Pestle and Mortar
Source : Mortar market size and industry growth status