Strategic Marketing Report: M&S Latvia Market Entry Strategy

This report, prepared for Ashanti Marketing Solution Limited, analyzes the strategic marketing plan for Marks & Spencer (M&S) to launch baby products in Latvia. The report begins with an introduction to strategic marketing and its importance, followed by a macro-environment analysis using the PESTLE framework to assess political, economic, social, technological, environmental, and legal factors in Latvia. It then explores various market entry modes, recommending a joint venture for M&S. The report further details market segmentation and targeting strategies based on behavioral and demographic factors. Finally, it applies Porter's generic strategies to develop a comprehensive marketing approach, concluding with recommendations for M&S's successful market entry and global expansion. The report highlights the importance of understanding the local market and adapting strategies accordingly.

Strategic Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Macro environment analysis........................................................................................................3
Different modes of market entry..................................................................................................5
Market segmentation and targetting.............................................................................................7
Porters generic strategy strategy..................................................................................................9
CONCLUSION..............................................................................................................................10
REFERNCES...................................................................................................................................1
Market entry strategies. 2018. [Online]. Available through:<http://www.tradestart.ca/market-
entry-strategies>...............................................................................................................................1

INTRODUCTION
Strategic marketing is the prominent process that outline the objective of firm in terms of
adequate planning, organising as well as executing the suitable idea to gain the competitive edge
over others. This further assist to secure the market share of company by successfully catering
the mission and attain the suitable objective of firm. The significance of building the marketing
strategy is to satisfy the main stakeholders that is customer so that they can gain the dominance
over market and build substantial image (Chernev, 2018). For the better overview Ashanti
Marketing Solution Limited which is the marketing consultant gives advices to their client in
terms of developing the potential strategy to gain success. Marks and Spencer is the client of
AMS company that gives useful advice to client in terms to adopt the diversification strategy and
enter in new market with new product. This report cover topics like analyses of macro
environment before launching new product and build justified strategy that act as a solution for
M&S. Determine the entry modes of marketing that is suitable for the client to follow and
accordingly plan out the segmentation and targeting method to capture potential target market.
Further, practical application of the Porter's generic strategy in order to build particular strategies
and gain global dominance are covered in the report.
MAIN BODY
Macro environment analysis
Marks and Spenser is the British multinational brand that offer premium quality of
clothing, home décor items as well as food product to the national and international customers. It
is the public limited company that was founded in the year 1884 and has immense retail store in
order to successfully cover the needs and requirement of diverse customer. Thus, it is the highly
recognised company due to which AMS limited recommended M&S to extend its product line
and come up with baby products. The company can successfully launch these products in the
Latvia country which is situated in Baltic sea and experience huge tourism because of its well
designed cities and high infrastructure. Being the popular country which experiences potential
economic growth is a suitable platform to attract the customer and expand the sales of
completely new product (Foxall, 2014).
Macro-environment analysis is itself a broad term that focuses on the opportunity as
well as threat that exist in the external environment. This directly impact the processes and affect

sustainable performance which directly affect the long term growth of country. It basically
include the external factors like PESTLE analyses that determine the actual condition of the
surrounding before diversifying the process. Explanation of these factors in context to the client
of AMS limited are determined below:
Political factor: It refers to the government rules and regulation, taxation policy as well
as different political condition that can affect the functioning of the companies situated in the
particular market. Marks and Spencer has the global presence due to which most of the customer
recognises the brand and have trust over the prestigious offering of company. Initially the
company used to experience immense profit due to which to the leverage of free trade zone by
operation in whole European Union. Later on due to the emergence of Brexit affect the
profitability of large multinational company (Hajli, 2015). Thus, the company can take
advantage of economies of scale and diversify its operation in Latvia country because there the
political condition are scale and experience huge tourism which is the scope of high profitability.
Economic factor: It is related to the purchasing power of customer as well as their
spending habits that instigate the company to set the strategy and launch completely new product
in market. M&S is the part of retail industry but instead of appealing the interest through
discounted product it attract customers through its quality. Although the disposable income of
customer is high in Latvia country so it is desirable platform to spread awareness about the new
range of baby products.
Social factor: It is linked with the specific values, preferences, customs as well as
behaviour of customer within society. Some of the large company's fail to operate in the
particular country because they lack to gain the potential information about the foreign culture.
Herein, Marks and Spencer before launching the new baby products need to understand the
social background of the local resident of Latvia country. Based on preferences the company
need to promote the brand to gain global dominance.
Technology factor: It refer to the latest innovation and trend that is opt by company with
the objective to expand the operations of firm. M&S are prone to technology in terms to scale up
the process and functioning due to which it even provide the training to staff to use innovative
technology and work in customised software. Along with that it has strong presence over social
media by which the company can successfully engage the customers through promotion.

Environmental factor: While carrying out operation it is the responsibility of business
to determine external environment and safeguard the interest of surrounding as well as
employees. They usually manufacture the product that are environment friendly for which Plan
A is adopted. Thus, due to sustainable performance the company gains the interest of global
customers in terms of different product range which depict that it is relatively easier for the firm
to carry out its operation in the new market.
Legal factor: This involve implementation of the suitable law and legislation which is
necessary for firm to abide by in order to secure its smooth operations. As most of the operations
of respected company takes place in the UK so it effectively analyse different legislation such as
health and safety law, gender discrimination and so on. Further, it need to understand the
application of law within Latvia country and need to implement desirable policies to gain
prominent position.
Therefore, these are some of the external factors that needs to be anticipated by firm in
order to draw the suitable policy for the effective functioning of firm. This is the valuable
process that help the firm to explore the opportunity present in external environment for
sustainable performance.
Different modes of market entry
Market entry encompasses the procedure by which firm can effectively expand its
operation in the new geographical area. There are variety of methods to do so but the successful
firm analyse the merits and demerits of each strategy which they can experience based on which
favourable decision is taken for adequate functioning (Kellezi, 2014).
Direct Exporting: Under this entry strategy the company expand its operation within
new geographical area by directly selling the offerings through trade practices. The company at
this mode focuses to build the effective relationship with different agents as well as distributors
that have wide network in terms to transmit the product to the end consumer through its strong
distribution network. In context to the M&S company can use this strategy to diverse its new
range that is baby products at the Latvia country. For this it focuses to make the better choice in
terms of the middlemen that include distributor to handle the products of particular companyu
successfully.
Merit

 It is the most effective as well as quick way to enter the new boundaries or market by
mitigating the possibility of risk.
Demerit
 Adopting export mode looses the control of company on their products also this can
simultaneously leads to low local knowledge or awareness associated with the newly
developed range (Kerin and Hartley, 2015).
Joint venture: This is again the other essential form of entry mode under which the
company form strategic alliance with the other interdependent company that is into similar type
of business. Both the company mutually agrees upon the concept that they will carry out the
operation in particular market by using combined resources. This strategy can be followed by
M&S company to enter into Latvia country because it wipe out the competitive pressure. Here
the profit as well as risk is equally shared between the different parties that leads to the portfolio
investments that suitably enhance the market share of company.
Merit
 Different parties can effective function to gain the market knowledge amongst local
customer and control the local operations of firm by employing the workforce for
sustainable functioning.
Demerit
 To undergo this process M&S need to involve the high cost as well as risk that at-times
due to the high competitive pressure slow down the processing of company. This
substantially lead the firm to bear unstable operation (Market entry strategies. 2018).
Licensing: This is the more sophisticated procedure as here instead of transferring the
existing employees or hiring more workforce for the international market, the existing firm
transfer significant rights to the foreign firm. This is the useful strategy that relatively helps the
firm to expand the market share and carry out procedure effectively (McDONALD, 2016). Such
agreements can be can be prepared by the licensee which is M&S with the licensor under which
firm share certain rights where they can participate in the decision making and situation of baby
products within Latvia country. Unlike exporting entry mode this can effectively assist the firm
to widespread the vital information in the market regarding the enriched quality of the final
product.
Merit

 This is the ongoing stream that is the desirable way to explore the opportunity and gain
passive revenue. For M&S this is the desirable way to widespread the offering without
actually loosing the ownership right over the offering of company.
Demerit
 In case of chaos or conflict between the licensee and licensor the whole goodwill of the
company remains at stake. Within this situation it may become difficult for the M&S to
gain consistent amount of profitability at Latvia country.
Therefore, each entry mode has its own significance which is opted by diverse
multinational organisation in order to strengthen its position and carry out sustainable
functioning (Milichovsky and Simberova, 2015). In context to M&S which has global
dominance and high recognition value but it is trying to cater into the new market with
completely new product that is baby products include hair care, oral and body range. This is one
of the most risky strategy so for the easier operation Joint Venture can be opt by Marks &
Spencer company. This will effectively help the firm to spread the huge awareness through
traditional and digital media. Along with that this will suitably assist the company to mitigate the
chances of risk by wide-spreading its operations effectively.
Market segmentation and targetting
Marketing segmentation is the significant tool that is predetermined by the internal
member of an organisation in order to cater the needs of significant groups. It simply breaks the
large market into the subsets based on the linkings, taste, preferences as well as income of
customer. This makes it easier for the manager to draft the advertisement campaign and deliver
personalised messages based on cost effective manner. Almost all the companies that cater niche
market makes the category of potential customer or group that share similar type of
characteristics. It leads to convenience for both company as they remain clear to whom they have
to address similarly customer remain satisfied because their untapped needs are met effectively.
One of the main reasons to invest in market segmentation as it help to prepare the strategics for
market mix that involve 7P's in order to cater the diverse market effectively. In terms to M&S
company has segmented the residence of Latvia country for its new range that is baby products
on the basis of various methods that are explained below:
Behavioural segmentation: This involve the diverse behaviour, preference, usage as well
as decision making capability of an individual that instigate them to make the valuable choices.

Here the company understand the preferences of people and segment the market like being
prestigious brand it makes the category of potential customer that prefer taking product from the
premium brands (Payne and Frow, 2014). Thus, based on this category essential knowledge is
offered to wide market that positively affect the decision making process of audience.
Psycho-graphic segmentation: Based on psycho-graphic segmentation M&S company
divide the market on the basis of lifestyle, personality as well as attitude of people. It further
influences the buying behaviour of the customer as at the initial level M&S company will try to
focus on those families that leads high lifestyle and cannot compromise the quality of brand.
Further, at the beginning or while starting operation's in Latvia country concentration is given to
gain the positive word of mouth publicity to reach the potential audience and become market
leader.
These are some of method on the basis of which M&S can significantly expand its
operations and address the needs of specific group. This boost up the procedure to carry out the
significant functioning and gaining better result effectively. It ultimately assist the company to
target the user of niche market by generating suitable amount of profitability and productivity.
Targeting: It refers to the process of selecting desirable customer for whom it the
company extend the desirable product and services. This is one of the most essential step that can
eb made by the firm fowe which it need to carry out the deep investigation in order to gain
desirable insights. This strategy significantly involve segmenting the large market, selecting
appropriate method of segmentation and most prominent determine the desirable product that are
offered by the company to customers. Herein, for the newly launched baby items the company
targets mother or women because they are decision maker in terms to adopt the right product
amongst the various alternatives (Proctor, 2014). Along with that the company target the
potential customer through customised advertisement in the various social media sites. Along
with that it effectively uses the traditional medium to gain the dominant position at Latvia
country. Thus, the department needs to constantly focus to spread the awareness and build
positive publicity to widespread the immense operations effectively.
Hence, it is vital that M&S company needs to significantly focus on the segmentation and
targeting platform in order to build the strong base of potential customers and widespread its
operation effectively.

Porters generic strategy strategy
Porters generic strategy is used by the firm in order to determine how effectively they can
gain immense competitive advantage over other rivalries. These strategies assist the company to
build the desirable scope that help the firm to extend its capabilities and undergo with sustainable
performance. Additionally, application of such mechanism immensely offer the benefit to
customer at the favourable prices (Rashid, Rahman and Khalid, 2014). It basically involve the
different types of strategy that are explained below:
Differentiation leadership: Within this strategy the company focuses on the broad
market by bringing the unique product that offer value to the wide range of buyers. Here the
company perceives attribute which are essential for customers in order to perceive the large
market effectively. This help to build the unique position of the firm on the basis of which they
can set premium charges which enhance the profit margin of company effectively. In context to
the M&S constantly update the fashion and anticipate the changing preferences of different
geographical area that act as a base to carry out the routine process effectively. Being the
manufacturer and seller of supreme quality of product helps to maintain the substantial image of
the company.
Cost leadership: This strategy is similar to the differentiation strategy as it cover the
broad market to cover the need of different audience. Here the company prepare plan to penetrate
in the mass market due to which they offer the quality product at relatively at low prices. It
enable the firm to use the advantage of the economies of scale and overpower the competitor
through effective implementation of the procedure. This strategy can be effectively used by the
Marks and Spencer in order to penetrate the operations of baby products within wide market.
Along with that if the firm lower down the prices then there is more possibility to gain the
attention of the potential customer within Latvia company as most of the people are aware about
the quality items of the company (Shank and Lyberger, 2014).
Focus strategy: Focus strategy is designed for the niche market where either the firm
uses differentiate or cost strategy but to cater the needs of small section of society. Within cost
focus the lowest prices of the offerings are set to target confined group. On other side
differentiate focus is applied by firm to target the loyal customers and understand the market
dynamics in order to bring the significant changes for the confined group that maximises firms
profitability.

Thus, amongst the different strategy it is preferable for the M&S company to opt for
Differentiation Focus strategy. As the company newly launches its baby products for the
audience of Latvia country that has suitable assisted the company to build the loyal customers.
This is the unique feature that ensure the compatible position of the firm to develop right strategy
for adequate functioning (West, Ford and Ibrahim, 2015).
CONCLUSION
From the above report it has been determined that strategic marketing is the essential part
of marketing as it help to cover different parameters such as planning which is required to carry
forward the operations of firm. In case if the existing and innovative company is planning to
launch the new product in completely new geographical area then the manager need to analyse
the macro environment to build strategy against threat and exploit opportunity. Along with that it
need to access the suitable market entry and build the segmentation and targetting plan
effectively. Therefore, to build the suitable image across international boundaries the firm can
use the generic strategy in order to gain the privilege of core competency.

REFERNCES
Books and journals
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Foxall, G., 2014. Strategic Marketing Management (RLE Marketing). Routledge.
Hajli, N. ed., 2015. Handbook of research on integrating social media into strategic marketing.
IGI Global.
Kellezi, J., 2014. Trade shows: A strategic marketing tool for global vompetition. Procedia
Economics and Finance. 9. pp.466-471.
Kerin, R. and Hartley, S., 2015. Marketing: the core. McGraw-Hill.
McDONALD, M. A. L. C. O. L. M., 2016. Strategic marketing planning: theory and practice. In
The marketing book (pp. 108-142). Routledge.
Milichovsky, F. and Simberova, I., 2015. Marketing effectiveness: Metrics for effective strategic
marketing. Engineering economics. 26(2). pp.211-219.
Payne, A. and Frow, P., 2014. Developing superior value propositions: a strategic marketing
imperative. Journal of Service Management. 25(2). pp.213-227.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Rashid, N. R. N. A., Rahman, N .I. A. and Khalid, S .A., 2014. Environmental corporate social
responsibility (ECSR) as a strategic marketing initiatives. Procedia-Social and
Behavioral Sciences. 130. pp.499-508.
Shank, M .D. and Lyberger, M. R., 2014.Sports marketing: A strategic perspective. Routledge.
West, D. C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
Online
Market entry strategies. 2018. [Online]. Available through:<http://www.tradestart.ca/market-
entry-strategies>
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