MG624 Strategic Marketing: AMS Limited Australian Market Entry Report

This report, prepared for Ashanti Marketing Solutions (AMS) Limited, outlines a strategic marketing plan for entering the Australian market with a packaged snack food product. It begins with an introduction to strategic marketing and its importance. The main body of the report includes a comprehensive PESTLE analysis to identify opportunities and threats in the Australian market, considering political, economic, social, technological, legal, and environmental factors. It then evaluates three market entry modes: direct exporting, strategic alliance, and acquisition, recommending a strategic alliance as the most suitable option and providing justification. Furthermore, the report discusses market segmentation and targeting strategies, considering demographic, psychographic, behavioral, and geographic segmentation. Finally, it examines Porter's generic strategies for product introduction. The report concludes by summarizing the key findings and recommendations, offering a strategic roadmap for AMS Limited's successful market entry into Australia. The report highlights the importance of adapting to the Australian market's health-conscious consumer base and the need to address legal and environmental considerations.

Strategic Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Macro Environmental analysis for identifying opportunities and threats...................................1
Modes of market entry for selecting the best one with justification............................................4
Concept of Market Segmentation & Targeting...........................................................................5
Porter’s generic strategy..............................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic marketing can be defined as a kind of method with the help of which an
organization can differentiate themselves from their competitors by focusing on its strengths in
order to provide excellent and valuable services and products to their customers. Strategic market
helps an organization to convert their target market people into their consumers of organization’s
services and products (Omsa, Abdullah and Jamali, 2017). It is extremely important for
organizations to focus on strategic marketing as it helps a company in many ways such as
introducing new product or service, entering into a new market, gain competitive advantage,
enhance customer base and many more. This assignment will lay emphasis on Ashanti Marketing
Solutions (AMS) Limited who is focusing on entering into Australian market with a packaging
snack food product. For thid, this assignment will focus on PESTLE analysis in order to analyse
major opportunities and threats that the company could face in Australia, Market-Entry options
though which they can enter into a specific market, Market segmentation and Targeting in order
to target their customers effectively and Porter’s generic strategy in order to introduce their
product in chosen Australian market.
MAIN BODY
Macro Environmental analysis for identifying opportunities and threats
Business environment is made up of 2 environments such as internal and external.
External business environment is known as macro environment which consists of several factors.
All these macro environmental factors of a country in which company operates and want to
operate, can affect an organization in both positive and negative manner. A macro environment
refers a condition which exists in the economy as a whole (Blanco and Cohen, 2017). In the
context of Ashanti marketing solution, it is stated that it wants to expand its business in a new
market or country with a new product or service. But before expanding business with new
product, it is important for analysing and evaluating marketing condition and all external
environmental factors of a country in a particular sector in which it wants to operate. The main
reason of identifying and evaluating marketing condition is to identify those factors which are
not in its favour and can affect its performance and productivity in a negative manner. On the
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other hand, it can also evaluate those factors which are in its favour and can help it out in
accomplishing its goals.
This company wants to expand its business in Australia with new packaged and healthy
food products known as Puffed snacks. Speciality and features of this product is it has all
nutrients value which can make people healthy. Nowadays people are becoming busy in their
work and due to this they even forget to have breakfast and healthy food products. So, for
making them healthy, fit without interrupting their busy life, this food product has been
developed. People can have this product anywhere, anytime as they do not have to spare time for
having it as it is packaged in such manner.
For making a strategic position and accomplishing goals, it needs to analyse all main
factors of Australia related to food sector which include:
Political: This factor refers to interventions which are imposed by the government on business.
It includes political stability of the country, government policies, trade restrictions etc. In the
context of political stability of Australia, it is stated that it has a strong stability and rate of
corruption has also decreased. It is also stated that Australia has effective trade relation with New
Zealand which supports all companies of food sectors and others in improving performance by
improving trade relations. But for performing all activities, it is important for Ashanti marketing
solution to follow all rules and guidelines of environmental and food safety laws (Barinova,
2017).
Economic: It is one of the main factors of PESTLE analysis which can affect the overall
performance and working of business firms. It includes: interest rates, employment rates, wages
rates etc In the context of Australia, it can be said that Australian economy is well-established
which supports as well as influence the growth of retail form who operate in food sector. It is
also stated that Australia is becoming the one who has the lowest unemployment rate. It also
increases disposable income of customers which can help Ashanti marketing solution in
increasing demand of its food products.
Social: It refers some socio-cultural factors like: customers’ needs, their buying behaviours,
lifestyle, community, culture etc. All these factors can influence consumption behaviours and
sales of companies. So, in this regards to it is stated that consumers of Australia are becoming
health conscious so, they prefer buying only healthy and environment friendly-sustainable
products. Organic trends and demands of organic products are also increasing. It is stated that
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Ashanti marketing solution wants to provide health food product so; it will be beneficial for this
company (Baker and et.al., 2017). But on the other hand, this company would have to focus on
sustainability and for that it will require to change operational strategy for dealing with social
changes in a positive manner.
Technological: Technology is increasing day by day which supporting companies in making
their products and services innovative and unique than others. This factor can affect functions of
this company such as: marketing function, ways of working etc. In Australia’s retail sector,
technological changes are taking place. It can have both positive and negative impacts on the
performance of Ashanti marketing solution. There are several popular food brands and retail
sector who invest heavily in technology such as; Woolworth Ltd. It can help them out in making
a strong position in the market. This technological advancement can increase intensity of
competition. On the other hand, by investing in technology like installing self check out
machine, home delivery, this company can make a strong position in the market.
Legal: It includes imposition of some laws related to food products of Australia. All these
factors and regulations can affect the way in which company operates to the great extent. Some
Australian laws like: environmental laws, safety of food products, maintaining quality of food
products, safety of employees, equal wages, anti discrimination can affect the way of this
company of performance. It is important for Ashanti marketing solution to provide safety to all
its employees and qualitative food products to customers. To not discriminate employees on the
basis of culture, age and gender. Also by maintaining food standards regulations which is being
imposed by the government, this company can make itself able to expand its business in an
efficient manner. It can also prevent itself against lawsuit.
Environmental: It refers some ecological factors which can influence survival as well as
operation of this company. In the context of Australia, it is stated that customers have concerned
about environmental protection. They want to buy products to those companies who use natural
resources to the limited extent and do not hurt environment in any manner. So, for being in this
market and attracting customers to the great extent, it is important for Ashanti marketing solution
to adopt some environmental sustainability initiatives and also make sure that environmentally
sustainability commodities are sources from suppliers (Richards, Kjærnes and Vik, 2016).
So, from the above discussed macro environmental factors, it can be said that there are
several factors which are in its favour and can allow it to take advantages of attracting customers
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opportunities. On the other hand, there are some factors which can create barriers in the path of
its success like: legal factors, making sustainable products, investing technology which can
increase cost etc. But by increasing skills and taking advantage of financial stability it can
decrease threats.
Modes of market entry for selecting the best one with justification
There are several ways to enter in a new market or country but for making the best decision
about mode of entry, it is important to evaluate all entry modes. Some modes of market entry
are:
Direct exporting: It is also an effective and fast entry, lower risk of mode. In this market
entry mode, company can sell its products in a new market directly either with the help of
supplier or intermediaries. It can also sell products to customers directly without appointing any
intermediaries. It can help it out in saving cost (Lindsay, Rod and Ashill, 2017). Other main
advantage of this entry mode is company can establish strong relation with its customers by
contacting and interacting with them directly. On the other hand, it can also be said that for this,
company will require more time, people power and skilled workforces and it is one of the main
limitation of this entry mode.
Strategic alliance: Strategic alliance or partnership is other main way of entering in new
market. This entry mode involves a contractual agreement between 2 or more than 2 companies.
These companies cooperate each others for a certain time for accomplishing the common aim.
For selecting this mode, it is important for company or Ashanti marketing solution, needs to
decide that what value other company can can bring to the venture in terms of tangible and
intangible aspects. Advantages of this entry mode are: company require less investment and also
share less risk. Disadvantage of this mode is company may face problems of conflicts with other
companies due to different cultures, higher cost than franchising and other modes.
Acquisition: It is one of the fast entry modes of market entry in which an organization
can gain control of another firm by buying their stock or exchanging its own stock by paying a
purchase price to owner. There are several advantages of this entry mode for which many
companies is now using this mode. One of the main advantages of this entry mode is company
who wants to exquisite other firm for entering in a new market can have easy and quick access to
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a new market. It has some limitations also such as: company may face some integration issue
with home office and it is costly mode as compare to others (Chen and et.al., 2017).
Justification of selection of entry mode: From the above discussed all modes of entry in
market, it can be suggested that partnership or strategic alliance will be the best. Because
company wants to expand business in new market with new product which is somehow risky
strategy and for reducing risk, it requires having other company who can suggest it and share
profit and risks as well. By choosing this mode, it can make better decision by taking help or
partnership firm.
Concept of Market Segmentation & Targeting
Market segmentation is process that is used by the business organization to dividing a
market which is consists of potential customers in different groups. The segmentation that is
performed by the organization is based on the characteristics. The segments that are created by
organization are consists of customers who will act similar to the strategy of the organization
which are made by the marketing department to attract more customers (DeSarbo, Blanchard and
Atalay, 2017). These people share traits like similar interest and locations. There are four type
market segmentation processes are used by the organization for the effective market plan of the
marketing department of organization. these types of Segmentation are- Demographic
segmentation, psychographic segmentation, Behavioural Segmentation and Geographical
Segmentation. This how various segmentation processes are used by the organization to develop
market segment of the customer to develop effective marketing plan for company.
Demographic Segmentation- This type of segmentation is one of the vest and commonly used
segmentation process in the business organization. Mainly this is known as the statistical data
about the group of people. The criteria that are- Age, gender, income, location, family situation,
annual income, education level and Ethnicity. These is how these aspects are considered by the
company for B2C process and for B2B business process Company size, Industry and job
function.
Psychographic Segmentation- In this segmentation process people are categorised by the
organization on the basis of their personality and characteristics of customers. For example in
this process personality traits, values, attitudes, interest of people and priorities of customer are
considered in the segmentation process.
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Behavioural Segmentation- In this segmentation process organization focuses on the customer
actions (Camilleri, 2018). The main focus of the organization is- what is the tendency of
customer towards the company products. For example purchasing habits, spending habits, user
status and brand interaction are considered by the organization the segmentation process.
Geographical Segmentation- Geographical segmentation is most easier way of market
segmentation that is used by the business organization. This is basically based on geographical
boundary of locations. For the example of these segmentation- Zip code, city, country, country,
radius around certain location, climate and urban or rural.
For the organization geographical segmentation is one of the best process of
segmentation that can help the organisation effectively.
Targeting
Targeting is known as advertisement mechanism that can help the organization to
segment some customers. This process can help the organization to set proper criteria to the
marketing campaign of company more effectively (Qian, 2017)
. This is completely related to the marketing process that is selected by the organization for the
marketing campaign of organization. various external and internal analysis process can be used
by the organization to implement targeting for the marketing plan for organization.
The potential target of the organization are people or organization who need solution for
problems related to their marketing operations in market place. These people can be targeted by
the organization to perform their marketing operation with higher efficiency. Ashanti Marketing
Solution Limited.
Porter’s generic strategy
Porter’s generic strategies are those kinds of strategies that helps an organization to
pursues competitive advantage across their target market segment. These strategies are known as
generic strategies because these strategies can be applied to any product or service in all the
industries and for all the organizations for any size. As per this strategy competitive advantage of
an organization falls under two major categories that are: cost advantage and differentiation.
These strategies can be applied to any business unit level. All the strategies are divided on the
basis of four main categories that are: industry wise target scope, narrow market segment, cost
advantage and product uniqueness or differentiation. There are four main types of porter’s
generic strategies that have been categorised on the basis of these categories. Four main types of
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porter’s generic strategies are as follows: cost leadership, differentiation, cost focus and
differentiation focus.
Cost leadership: It is one of the most commonly used strategy which is used by organizations in
which organizations focuses on providing low cost products to in an industry maintaining quality
level. It helps the organizations to increase their profitability by reducing cost. It also helps the
organizations to enhance their overall market share and gain competitive advantage as compared
to their rivals (Manyeki, Ongeti and Odiyo, 2018). But in order to succeed in this industry
organizations need to have followed internal strengths such as: high expertise manufacturing
process, effective or efficient distribution channel. However, this strategy has its own risk
associated with it such as their competitors might lower their product or services prices as well.
Differentiation: This strategy is used by organizations when introduce differentiation within
their products or services which is completely different and more attractive from their customers
to broad target market. Using this strategy organizations sell their products at a bit higher price
but provide additional features or offering with the product. In order to successfully implement
this strategy companies, need to have following internal strengths such as: high scientific
research, highly skilled or creative product development team, high reputation for innovative and
quality products and strong sales and marketing team.
Cost focus: This strategy is used by organization in which cost advantage is provided to a
particular niche market in order to understand dynamics of market and understand needs of their
target customers (Alzoubi and Emeagwali, 2016). As this strategy is applied by organizations to
a small niche market, they can successfully develop brand loyalty among their target customer.
Differentiation focus: This strategy is used by organizations to fulfil unique needs of their
customers in a particular niche market. This strategy helps the organization to attract a greater
number of customers by providing unique features within a product in order to attract target
niche market customers and develop loyalty within them for the organization.
Ashanti Marketing Solutions (AMS) Limited organization is thinking of entering into
Australian market by introducing their packaging snacks food products within that market. In
order to successfully introduce their product in chosen market segment, attract a greater number
of customers and gain competitive advantage they can opt for cost leadership generic strategy.
This strategy will help them to introduce packaging snacks food products within the chosen
Australian market segment at much lower price as compared to their competitors. They also need
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to maintain the overall quality of their food products this is because their product is quite new to
the chosen broad market segment (Yohannes and Ayako, 2016). Maintaining high quality of
their package snack food product, and providing the product at much lower price as compared to
their competitors will hell them to attract more number of customers, develop brand loyalty and
enhance their market share within the chosen broad target segment. This strategy will help
Ashanti Marketing Solutions (AMS) Limited to successfully enhance their sales and revenue
because people mostly choose food products that are of high quality and are easily available at
lower price. Using this strategy, they will be able to fulfil needs and requirements of their target
market segment and establish their product by gaining competitive advantage. Not only this as
their product is new so introducing their product at lower price will also help in attract more
customers.
CONCLUSION
From the above assignment it has been summarized that there are various kinds of
opportunities that can help Ashanti Marketing Solutions (AMS) Limited to introduce their
packaging snack successfully in Australian market however there are few threats that they need
to focus on as those threats can enhance their difficulty in establishing themselves in the chosen
Australian market. It has been analysed that there are various kinds of market entry options that
can be chosen by Ashanti Marketing Solutions (AMS) Limited in order to enter into the
Australian market and introduce their product successfully. It has also been analysed that it is
important for the organization to analyse their target market segment and customers so that they
can choose appropriate strategy through which they can introduce their product in Australia and
enhance their profitability and sales.
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REFERENCES
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Blanco, J.M. and Cohen, J., 2017. Macro-environmental factors driving organised crime.
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Chen, R. and et.al., 2017. Acquisition or greenfield entry into Africa? Responding to institutional
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Omsa, S., Abdullah, I.H. and Jamali, H., 2017. Five Competitive Forces Model and the
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