Strategic Marketing Report: Bristol Cars in Argentina

This report provides a strategic marketing analysis for Bristol Cars Limited, a UK-based automotive company, as it plans to expand into the Argentinian market with its new driverless car. The report begins with an executive summary and introduction that outlines the company's objectives. The main body of the report includes a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing the Argentinian market. It then explores various market entry modes, such as strategic alliances, and delves into market segmentation and targeting strategies. Finally, the report applies Porter's generic strategies to determine the optimal approach for Bristol Cars to achieve a competitive advantage, concluding that a differentiation leadership strategy is most appropriate for the company's success in the Argentinian market. The report highlights the opportunities and threats in the Argentinian market and recommends strategic actions for Bristol Cars' successful market entry and operation.

Strategic Marketing

EXECUTIVE SUMMARY
This report provides a deep analyses about the concept of strategic marketing and its
importance in business operation as well as success. As marketing strategy help a company to
develop an action plan that provide a guidelines to achieve desire objective in marketplace.
Bristol Cars Limited is a UK based company that deals in manufacturing and trading in
automotive sector. Now company want to expand its business in Argentina by launching its
“Driverless car”.
This report is divided into four parts where first section describe about the analyses of
various micro environmental factor in order to determine the various opportunities or threat
present in Argentina.
In second section it elaborates about various entry options that can be adopt by Bristol
Cars Limited in order to enter in new market such as Merger & Acquisition, Joint venture and
strategic alliance.
Section third describes about the market segmentation or targeting that Bristol Cars
Limited has used in order to decide its potential market for focusing its marketing strategy over
it.
At last in part four it define about various marketing strategies that can be used by
company in order to achieve competitive advantage in new market using Porter's generic strategy
model.
It has been identified that Bristol Cars Limited must adopt Strategic alliance for entering
in market of Argentina. Apart from this appropriate strategy for company is differentiation
leadership which support them in keeping the competition away from market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE..................................................................................................................................1
Market entry mode.................................................................................................................5
Market Segmentation..............................................................................................................7
Porter's generic strategy..........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Strategic marketing refers to the set of activities that are performed by a firm for
differentiating itself from its competitors in order to provide better value to its customer ( Wilson
and Gilligan, 2012). It help company in identifying the need or want of target market for making
effective decision that support company in achieving success. Bristol Cars Limited is a UK
based automotive company that perform operations related to the manufacturing and trading of
hand-built luxury cars. Company want to expand its business by launching a brand new
“Driverless car” in Argentina. This report discuss about analysis of opportunity and threats that
are present in market of Argentina using PESTLE analyses. Further it discuss about various
mode of entry that can be used to enter in new market. Apart from this it includes segmentation
as well as targeting of market and use porter's generic strategy to achieve competitive advantage.
MAIN BODY
Bristol Cars Limited is a UK based automotive company that after getting succeed in its
current market, company want to expand its business in new market. The chosen country is
Argentina as it has a wider scope in automotive sector (Malshe, 2013). Company decided to
expand its business by bringing new technology in market i.e. driverless car where people will
only have to command its car by entering destination to visit. This car is firstly charge by
electricity and then it will be run as per the command given by its owner. But before expanding
its business it is very essential for Bristol Cars Limited to analyses macro environmental factor
that have an huge impact over the operations performed by a company. This analyses can be
done through using PESTLE framework.
PESTLE
It refers to a analytical tool that focuses on external factors that may affect the actions
taken by a company (Zalengera and et. al., 2014). This tool help Bristol Cars Limited in
determining the various threats and opportunities that are present in Argentina which it must
consider while formulating business plans or policies. Following are the factors that are consider
in PESTLE:
Political:- Variables involves in political factor are all about degree of government
intervention in economy and how it intervenes. Political stability in overseas market, labour law,
tax policy, foreign trade policy, trade restrictions etc. are the variables involved in it. Argentina
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is one of the wealthiest nation in South America as it has vast agricultural and mineral resources.
Government of Mauricio Macri has contributed to a large extent for improving the regulatory
framework and to facilitate business creation (Argentina. 2018). This action has generate several
opportunities for investors and entrepreneurs. Opportunity:- Political support in Argentina is one of the major opportunity that a Bristol
Cars Limited can get while setting up its business in country. As the government of
country is already supporting new innovation and other businesses in order to develop
their country. Hence Bristol Cars Limited can get support from Argentina government
related to getting approval for conducting their business in a particular area, financial
support which help them in performing their operations effectively and smoothly.
 Threat:- The government of Argentina is more focused about improving the regulatory
framework for ensuring the business creation, intervention of government is very high.
This may create problems for Bristol Cars Limited as they have to take permission from
government before taking any action. This permission can be in regard of performing
trade activities, establishing plant in particular area, using some technology etc. In order
to overcome this, Bristol Cars Limited can hire legal advisor so that they can handle all
the legal work and company may focus on its other operations.
Economic:- These variables have significant impact on firm's way of performing
business operations. In includes factors like interest rates, inflation, deflation, economic growth,
exchange rates etc. The economy of Argentina is continuously improving after facing
economical crises as government of country is continuously working over improving the
infrastructure in order to attract investors within the country (PANDEY, 2017). Country have
GDP rate which is more then US$628 billion and is consider as one of the largest economies in
Latin America (Overview, 2018).Automotive industry has a strong appearance in Argentina
because government is encouraging foreign companies by lessening the regulatory framework
obstacles. Opportunity:- Bristol Cars Limited get higher growth opportunity if it expand its
business in Argentina as they get required infrastructure as country has high flow of fund
due to FDI which is around 11,857 million dollar in 2017 (ARGENTINA: FOREIGN
INVESTMENT, 2018). This is the biggest opportunity for Bristol Car Limited as they get
adequate fund required for manufacturing car as company aims over bringing a
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Driverless car which requires High-Tech machinery that are very costly for which
company required fund.
 Threat:- Major threat that can be faced by Bristol Cars Limited is rise in inflation rate of
country is approx 26.9% and which may increase the establishment and manufacturing
cost of company. To overcome this Bristol Cars Limited can use the material required
for manufacturing and manpower available in that country. As country is rich in natural
and mineral resources like iron, zinc etc. this will reduce the import related cost of
company.
Social:- It involves attitudes and shared beliefs of people which include factors like age
distribution, career attitudes etc. (Srdjevic, Bajcetic and Srdjevic, 2012). The population of
Argentina is continuously rising which is 43.6 million which results in increasing unemployment
rate that is around 8.467% of total labour force (Argentina PESTEL Analysis, 2018). Opportunity:- One of the major problem faced by Argentina is that it have an ageing
population that proves to be an opportunity for Bristol Cars Limited. As aged people
may face problem while driving a car. Hence Driverless car will help them in this
problem.
 Threat:- Major threat that may be faced by company is ever-increasing unemployment
rate which has direct negative impact upon per capita income of an individuals live in
society. As this will considered as threat for Bristol cars and for their new innovative
product of driverless car due to expensive in nature. One of the solution to overcome
from the threat is about consideration of such technologies and machineries which results
in overall decrement of operational cost.
Technological:- It includes factors like technological advancements, emergence of new
technology etc. that affects operations of firm. With the improvement in economy of Argentina
the vehicle production and its sale is expected to grow (Ülengin and et. al., 2014).The
government of Argentina is more focused toward strengthening the automotive sector and R&D
capacity by attracting investors from foreign in order to improve the infrastructure and
technological facilities of country. Opportunity:- The vehicle sale or production is low from last three year, Bristol Cars
Limited has an opportunity to rule over market with its new Driverless car technology.
Because there is less competition present in market due in slow down of production.
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 Threat:- The idea of Bristol Cars Limited to bring “Driverless car” is unique and new to
market which may require more investment as such technology is not present in
Argentina which make it harder to manufacture such car on pre estimated budget. For
ensuring its proper execution of project Bristol Cars Limited can take its technical experts
with them to Argentina which may formulate plan as per the condition present in front of
company. Apart from this they can also guide its workforce to work in a manner that help
in achieving the desire objective.
Legal:- It includes all the laws and legislations made by government like equal
opportunities, health and safety, consumer rights and laws etc. The government of Argentina is
continuously making effort by improving or simplifying the legal structure of country in order to
attract innovation in country. Apart from this it also has provide “window dressing clearance”
option where companies can start their business with minimum legal formalities. Opportunity:- As government is supporting investors and businessmen to bring their
resources or invest their money toward the development of country it is an opportunity
for Bristol Cars Limited. As they don't have to follow strict or lengthy legal procedures
for setting up business which is easier to manage their operations and it also incurred less
cost.
 Threat:- Major threat that may be face by Bristol Cars Limited is that they have to
change their business strategies and policies in case the rules and regulations of
government get changed. These changes in policies may disturb the operational activities
of company which in turn will result in severe loss or may also have an negative impact
over the existence of company in that area. To overcome this, company must formulate
flexible strategies or action plan that are easy to modify as per the changes experience in
external environment. Apart from this R&D department of company should regularly
analyse the external factors in order to align their plan according to external environment
for being able to survive in new market.
Environmental:- These variables includes environmental and ecological aspects like
change in climate, whether etc. With the increasing concern of economical development there
has been an overexploitation of natural resources of Argentina (Zalengera and et. al., 2014). As
increase in population due to rise in migrants from rural area has leads to deforestation and
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destruction of natural habitants. Because of which air and water pollution are the major problems
that are faced by Argentina. Opportunity:- Major opportunity that a Bristol Cars Limited have is that they are
introducing a “Driverless car” in Argentina which run after getting charged through
electricity. Hence, it doesn't emit carbon which in turn will reduce air pollution and may
get greater acceptance by public and government of Argentina as well.
 Threat:- Due to increase in concern of government regarding the environmental
degradation leads to increase in restriction toward the laws and legislations related to
environment safety. This is one of the major threat that may affect the operations of
Bristol Cars Limited as they have to perform operations after getting their machinery
approved by government that whether it meet the required standard. It is one of the major
threat for company as it is a time consuming process which may restrict the company to
perform its operation on time that may affect its performance. In order to overcome this
threat R&D department of company must assess the environmental standard that are fixed
by government of Argentina and must select the machinery as well as other operational
process according to those standard.
Market entry mode
It refers to decision taken by a company to enter into a foreign market with its product or
services. As Bristol Cars Limited want to expand its business in Argentina by introducing its new
car with driverless technology (De Villa, Rajwani and Lawton, 2015). This car take command
from its owner in which they have to insert the destination where they want to reach. This
technology is totally new to the automotive sector of Argentina, hence it has a wider scope in this
market. But in order to establish its plant appropriately Bristol Cars Limited must assess the
modes through which company can enter into new market and which ensures sustainability.
Following are the types of market entry modes that company can assess:
 Merger & acquisition:- The process of combining two entities working over similar
level is known as merger. On the other hand acquisition refers to the situation where one
company taken over by another. Major advantage of using this entry mode to Bristol Cars
Limited is that they will be able to create more value in market (Ang, Benischke and
Doh, 2015). Reason behind this is that two separate companies when join one another
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they can share their resources and skilled workforce that ensure them success as well as
competitive advantage.
Apart from this main limitation of adopting Merger & Acquisition by Bristol
Cars Limited is that it may proves to be negative in term of company's growth as the
merged or acquired company may not be good at performance. For instance merger
company may not have workforce with adequate skills or ability which is required by
Bristol Car Limited that may affect its manufacturing related operations. This may affect
the goodwill of Bristol Cars Limited which in turn may reduce its stock price.
 Strategic Alliance:- It refers to the legal agreement between two or more independent
firm for cooperating in manufacturing, sale or development of product or for some
another business related objective. Strategic alliance doesn't focus over forming a new
entity rather it involve collaboration of two entities for the accomplishment of common
objective which get separated from one another after completing their goals.
 Joint Venture:- It can be define as an agreement between two companies where they
decided to pool their resources for commencing a new project or any other business
activity. If Bristol Cars Limited adopt joint venture as a data entry mode then it will get a
benefit of getting access to better resources such as technology, specialised staff. This
will provide them an opportunity to gain new insight and expertise.
Apart from this major disadvantage of using this entry mode is that Bristol Cars
Limited has to take approval from its partner before taking up any action related to its
business (Brouthers, 2013). As in this entry mode approval of both the parties are
required so this may create conflicts among partners and it is also a time consuming
process.
These all are the entry mode available in front of Bristol Cars Limited in order choose a
most appropriate option for expanding its business in Argentina. But among all this strategic
alliance is most appropriate strategy for Bristol Cars Limited. As the main aim of company is to
enter in new market, strategic alliance can be use by company where they form a partnership
with another well established automotive firm for a limited period of time. This agreement will
be validate till Bristol Cars Limited establish their plant and become a renowned brand in
Argentina. By adopting strategic alliance in Argentina, Bristol Cars Limited will get assess to
partner's resources including market, capital, manpower and technologies (Brouthers, 2013).
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Main advantage of using this approach is that Bristol Cars Limited will get required resources
from their alliance partner which reduces the cost of company and business risks.
Market Segmentation
Market Segmentation is a process of dividing market or broad consumer group into small
homogeneous sub groups. The developed segments are composed of customers who share
similar traits like needs, interests or locations. Segmentation allows firm to precisely reach a
customer with particular needs (Wilkinson, 2013). As Bristol Cars Limited wants to expand its
business in Argentina market, it is necessary for it to assess needs of market and segment it
accordingly. Firm wants to launch is new Driverless Car for which its target customers are
people with high income. Bristol Cars Limited divides its market on the basis of demography
(Wedel and Kamakura, 2012).
Demographic Segmentation is largely used by organisations to get right population in
utilizing their products. In this, market is divided on the basis of variables like age, gender,
income, population, nationality, religion, family size etc. This segmentation is used by large
organisations. Bristol Cars Limited use demographic segmentation in which market is divided by
firm on the basis of income level of people. In order to introduce its new car in market of
Argentina, it is necessary for firm to first identify the income level of people as it decides the
purchasing power of customers.
Target Market:
A target market refers to the group of customers or people at which service or product is
aimed. It is the market in which firm wants to sell its products and directs its all marketing
efforts (Adelino, Schoar and Severino, 2012). For introducing its new Driverless Car, the target
market Bristol Cars Limited high income group people as high end technology will be used by
firm in manufacturing car, so high costs are incurred in it which makes it costly for other income
group people. The potential customer of company will be high class people and business class
people as they are able to afford luxury driverless car.
Porter's generic strategy
For setting its business effectively in new market and to achieve sustainability it is very
essential for Bristol Cars Limited to formulate certain strategies that help company by guiding a
path to follow for performing its operation as per planned manner (D. Banker, Mashruwala and
Tripathy, 2014). So in order to achieve sustainability and competitive advantage at market place
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Bristol Cars Limited can use Porter's generic strategy. This model brief about three strategies
which support a company to achieve competitive advantage for longer duration. Following are
the strategies that are covered under this model:
Cost leadership:- This strategy suggest two options to an organisation that is either to
offer product at lowest possible price or to ensure broad market share with average price i.e. high
demand. In both the situation main aim is to keep the price of product as low as possible. If an
organisation want to adopt this strategy then it must have sustainable investment capital at their
disposal, low cost in term of material & labour and efficient logistics in order to implement this
strategy successfully (Brenes, Montoya and Ciravegna, 2014). For instance by using this startegy
Bristol Cars Limited will be able to attract its target customers by providing its “Driverless car”
at average price. But in order to implement this strategy company is required to focus on its
internal processes. So that they will be able to cover its production cost while keeping its price of
car low from its competitors. But it is a new technology which includes an expensive
manufacturing process therefore, if company uses this strategy then it will not be able to cover its
production cost by trading its Driverless car at average or low price.
Focus Strategy:- This strategy suggest to target a niche market and within that segment
must try top achieve either cost advantage or differentiation. Here, company in cost advantage
target the narrow segment and offer product or services in as low price as possible. On the other
hand in differentiation company focuses on offering a product or service that has unique feature
where there is a little or no competition present. But differentiation focus required strong brand
loyalty among customers (Tansey, Spillane and Meng, 2014). It is very essential for a company
to ensure that its product remain unique to market in order to stay ahead from the competition
prevailing in market. For example Bristol Cars Limited can apply this strategy in order to cater
the differential need of customer in Argentina. This will help them in achieving the trust within
new market place which in turn will provide the competitive advantage at new marketplace. But
as Bristol Car Limited doesn't want to keep its focus over single segment as it decided to start
with segmenting high income people and then expand it to high class, business people and so on.
Therefore this strategy will not be an appropriate option for Bristol Car Limited.
Differentiation leadership:- This strategy suggest a business to target larger market for
achieving competitive advantage by differentiating itself in whole industry. This includes
bringing up a new product or services that having some unique feature whose substitute is not
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available to market. For instance, by adopting this strategy Bristol Cars Limited will be able to
sell its car at premium prices because of its unique idea and technology that differentiate it from
other players in Argentina market (D. Banker, Mashruwala and Tripathy, 2014).
These all are the strategies suggested by Michael Porter which a firm can use in order to
achieve competitive advantage in market. But among all these Differentiation leadership is an
appropriate strategy for Bristol Cars Limited. As company want to expand its business in
Argentina by bringing up a technology which is new to market i.e. Driverless car. By adopting
this strategy company will be able to cover its all production and establishment cost from its new
car. As this technology is new to market hence Bristol Cars Limited can charge premium prices
from its target market.
CONCLUSION
From the above given report it can be concluded that strategic marketing plays an
essential role in development of strategic plans that support a company to achieve sustainability
at marketplace. These strategies can be better formulated by assessing the external factors
present in market with the help of PESTLE framework as it focuses on determining the
opportunities or threat present in market. Apart from this segmentation or targeting also plays a
major role in formulating strategy as it provide a base to focus on certain criteria that must be
meet by the product offered by company. But in order to get succeed in new marketplace it is
very essential for a company to adopt an appropriate entry mode that support them in achieving
new heights in market. In addition to this for achieving sustainability in new market company
must enter with an effective strategy that provide competitive advantage which can be better
formulated by using a model named as “Porter's generic strategy”. As this model focuses on
explaining three different strategies that support a company to perform better from its competitor
in market.
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