UGB335 Strategic Marketing: Vestas' Context, Strategies, and Analysis

This report provides a comprehensive analysis of Vestas' strategic marketing, examining the external factors influencing the company, such as social trends, technological advancements, and government regulations. It delves into the competitive context, comparing Vestas to key competitors like GE Renewable Energy, evaluating their market share, strategies, and product offerings. The report critically analyzes Vestas' marketing resources and capabilities, including its website content and marketing abilities, while also assessing its non-marketing strengths like financial resources. Furthermore, the report identifies and evaluates critical strategic marketing approaches suitable for Vestas, considering its position in the wind turbine industry and the evolving market dynamics. The analysis includes an evaluation of the positive and negative impacts of sustainability and climate change movements on Vestas' growth and development.

Strategic Marketing

Table of Contents
Introduction......................................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK...............................................................................................................................................3
Analysis in context of strategic marketing.............................................................................3
Competitive context of Vestas................................................................................................5
Critical analysis as well as evaluation of Vestas....................................................................7
Identification & assessment of critical strategic marketing approaches................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Introduction
Main objective of this report is to better understand the concept of strategic marketing. As it
play an essential role in the growth and development of company and in successfully achieving
the goal of organisation. Marketing is an essential function which is conducted by an
organisation. It includes different kind of activities which helps organization in effectively
creating the brand image of company in market. It includes various promotional tools such as
advertisement, marketing research and campaign. If the organisation wants accomplish effective
results so that they need to implement effective marketing strategy. For this report Vestas
Company is taking into consideration. It is a Danish manufacturer, seller, installer and servicer of
wind turbines. It is a multinational company which is founded by Peder Hansen in 1945. Its main
product is wind turbines and it’s headquarter is in Aarhus, Denmark. More than 25,000 numbers
of workers are successfully working with it. In 2013, it is the largest wind turbine company in
the world. This report includes various external contextual factors which impact the selected
company. Other than this it include a critical analysis of the firm in relation to competitors. Other
than this competitive position and competitive advantage achieved by Vestas is discussed in this
report. In last various strategic marketing approaches are included in this report (Baker and Hart,
2016).
MAIN BODY
TASK
Analysis in context of strategic marketing
Primary contextual factors analysis & evaluation
For successfully formulating a marketing strategy it is very important for an organisation
to efficiently collect all relevant information related to the external factors which impact the
business most. In context of selected company there are various external factors which impact
the company most are discussed below:
 Social factor is the biggest external factor which influences the wind energy company
most. This is because now days the concern of society towards global warming is
increased day by day. Because of this customers are also prefer those products which are
renewable in nature and efficiently fulfil their requirements of daily bases energy needs
which is also protect the environment from global warming.

 Lowering cost of wind turbine and increasing performance capability is another
important factor which affects the wind turbine industry.
 In context of selected company the most important external factor which affects the
company is that the company will effectively achieve regulatory approval from different
countries government. This will help selected company in creating a strong presence in
the international market and take timely and effective action which helps selected
company in established itself as an important member of wind energy industry.
Another important external factor which affects the business of vestas is solar energy. Which is
an alternative of the products offered by selected company? Now day’s customers are more
conscious towards environment. Wind energy will harm the life of flying creatures as compare to
solar energy, so customers are prefer to buy solar energy which affect the selected business most.
The selected company is also affected because of weather condition. This is because producing
energy is depend on the weather condition as for successfully producing energy company require
good weather condition and this problem is not removed with the help of any technology. This
external factor will influence the growth of business most and business has no control over it.
In context of selected company critical analysis of various external factors in context of selected
company is mention below:
Vestas are the largest multinational wind turbine production company. With the increase
in global warming people is more concern towards the sustainable energy. Now day’s customers
are more focus towards the sustainability of resources in their daily life which also include
consumption level of energy (Brooksbank Subhan and Miller, 2018). In context of selected
company they achieve higher profitability and able to increase global sustainability. Company
effectively promote their wind energy and force customers to use wind energy for more
sustainability. Climate movement play an essential role in changing the perception of customers
towards wind energy. This perception will also change the mind of governments of different
countries and they all are ready to invest more in wind energy and supply this type of energy
through their turbine installation. It will generate more and more profit for company.
Evaluation of external factor in context of selected company is mention below:
From above discussion it is evaluated that the promotion of sustainability all over the
world and increase the consumption of wind energy will have both positive and negative impact
on the growth and development of Danish wind Turbine Company.

Positive impact- One of the biggest positive impact which is arises because of increasing
global concern related to the change in climate is that now a day’s customers or people in society
are more educated and have a knowledge related to the renewable source of energy because of
this these customers are prefer to adopt renewable source of energy. This will provide various
growth opportunities for selected company. This will make Vestas to enhance their power and
become one of the biggest power suppliers in the world. Another important benefit of increasing
spread of climate change movement is for encouraging government of different countries to
invest more in sustainable energy source (Chiweshe and Ellis, 2019).
Negative impact- There are various opportunities which are provided by the changing
climate movement will also have some negative impact on the growth of Vestas. The first
negative impact of this is that it now a days people are more aware related to the negative or
harmful effect of wind turbine on the nature because of this the wind energy is not consider as
the harmless and sustainable source of energy. This will negatively affect the perception of
customers towards wind energy and they choose solar energy as more sustainable source of
energy (Eriksson, Robertson and Näppä, 2020).
Competitive context of Vestas
The climate of industry involve rivalries among large as well as small producing firm for
achieving share of market in this sector. The main competitor of GE renewable energy, it is
determined as a biggest wind turbine producer and determined as a primary competitor of
organisation that is given below:
Overview of organisation
Profile of company
GE renewable energy is determined as a largest wind turbine producer and located in
Paris France as well as offer solution of renewable energy to its customer in order to satisfy its
need. The organisation is determined is a division of basic electric and determined as a primary
competitive firm of Vestas and focuses on achieving international wind turbine manufacturing
market. The organisation was founded in 2015 and determined as the leading or well-known
wind turbine manufacturers (Fotiadis, 2018).
Main competitive edge

The organisation focuses on accomplishing competitive edge over rivalries in the market.
In addition to this, the General Electric is determined as a biggest and provides renewable
solution and focuses on making connection at global level. In assistance of this, it is analyse that
GE renewable energy focuses on manufacturing wind turbine that increases the brand image and
reputation of organisation as compare to Vestas.
Market information
Target market the target marketplace of GE renewable energy is that the primal
purpose is to manufacture wind farms in large level. In addition to this, the primal aim of
organisation is to execute their business and also manage wind farms in proper way.
Market share the share of market of renewable energy in international wind turbine
manufacturing market is determined as a 10%. This is considered as lower in comparison to the
Vestas that possess market share of around 20.3%
Market strategy this strategy of marketing is related to GE renewable energy is to provide
different types of alternatives that involve wind energy, solar energy as well as hydro energy and
many more. And, the organisation focuses on marketing its good at wider level. Therefore, the
GE renewable energy focuses on achieving leading position in becoming wind turbine
manufacturer.
Product detail: the product as well as service of GE renewable energy focuses on
providing wind turbine and also offers sustainable energy goods to its user in order to satisfy
them. In addition to this, there is different kind of solution related to solar energy named as
photovoltaic as well as intense solution of solar energy. In assistance of this, the organisation
provides solution related to hydroelectric energy to its customers (French and Gordon, 2019).
Pricing & cost of product that is provided by GE renewable energy is determined as a
higher in comparison to Vestas. The Primal reason is that the organisation offer both offshore as
well as onshore solution related to wind energy. Apart from this, the Vestas focus on dealing in
area of onshore production of wind turbine. Therefore, it is analysed that onshore wine turbine is
determined as a cheaper in production that imposes direct effect on the pricing tactics of GE
renewable energy. The organisation adopts strategy related to dynamic pricing for larger product
portfolio in comparison to Vestas.

Distribution channel the organisation focuses on using GE Logistic implementation
centre for fright administration. This statement is a departure related to GE renewable company
that is determined as a parent organisation.
Critical analysis as well as evaluation of Vestas
The market resources of business organisation involve everything which is capable to
introduce organisation to innovative user and focuses on generating lead into sales funnel. The
resources of marketing are adopted by business organisation in order to organise promotional
function and sales of goods and services (Kumar, Sharma and Gupta, 2017). The resources of
marketing used by manufacturer of digital and traditional resources of marketing in which the
organisation focuses on promoting wind turbine by social media platform as well as its official
website. In assistance of this, the organisation is related to national media that help in making
significant announcement of company. The assets of marketing of organisation is considered as a
anything that is used by business organisation in order to promote goods and services and also
increases goodwill and brand awareness of organisation. It involves website, videos, blog articles
and many more. In context of Vestas, the content of website of organisation is determined as a
most valuable or well known marketing assets related to organisation. And, the primal benefit or
advantage which is achieved by organisation through their content help in promoting good and
services of Vestas to its user in an appropriate manner. The organisation is capable to generate
sustainable goodwill or brand image through website content. Apart from this, the main
drawback & limitation of this website content is that it is determined as a primary source of
marketing and they do not possess reach so that it is not attracted or viewed by ample of
audience that impose negative effect on the sales of organisation. The marketing ability of
organisation is considered as a competency of marketing of organisation that provide allowance
to organisation to offer user centric marketing for enhancing customer worth through purpose of
maintaining profit generated by demand. In reference of Vistas, the primary aim of capability of
marketing is to generate demands in order to provide them product at affordable price. And, the
benefit of this element is better focus is on attracting user in order to retain them for a longer
period of time. And the disadvantage & limitation is that it do not increase brand image and
goodwill of organisation (Mahoney and Tang, 2016).
Non marketing abilities as well as competitive positioning of Vestas

Financial resources the annual income created by organisation in year of 2020 was
determined as a 14.8 billion EUR. In this challenging year, due to increase in pandemic, the
income of respective organisation is enhanced in 2020 as compared to past year by their cash
flow is remaining similar as in 2019. In year of 2021, the organisation is expected to increase
revenue or income by 20%. It signifies that organisation possess superior financial resources as
well as capital to increase investment in different activity of organisation. The effect of resources
in marketing strategy assists respective organisation to enhance finance or marketing function for
achieving desired outputs (Rowley, 2016).
Human resources Vestas is well-known company of international wind turbine is based
on skill of subordinate to manufacture superior quality of wind turbine. The organisation focuses
on giving job opportunity to around 25000 workers on international level and offer appropriate
training to subordinate for generating highly talented people. It involve offering education to
subordinate regarding technical factor linked with job offering related to innovative technology
and assist them to learn from senior leader. In assistance of this, they offer different benefit for
retaining talented and competent subordinate, improved skill of subordinate in wind turbine
sector. It impose defect on the marketing function of organisation as skilled and competent
subordinate focuses on providing superior quality of goods that is manufactured within company
that assists in improving appropriate strategy related to promotion ( Valos, Mavondo and
Nyadzayo, 2019).
Physical resources the organisation possess several manufacturing plant which is situated
in different location. It involves the country such as Denmark, Germany, Netherland, USA as
well as India and many more. The producing plant of organisation must be equipped with
technology as well as appropriate training session to make sure that every producer focuses on
producing superior quality of output and contribute towards success of organisation. The impact
of abandoned and better quality resources of chosen company on its marketing strategy is that
they provide resources to increase value of user by make sure that good must be superior and
according to expectation of user. The primary motive of wind turbine manufacturing
organisation is to achieve competitive edge over rivalries in the market. Therefore, they focus
providing affordable and superior quality of source of non-renewable energy to its customer in
order to satisfy them (Saldanha, Mulye and Rahman, 2020).

Therefore, it is considered as market of onshore wind turbine is determined as a superior’s
option of Sustainable energy that is prevented in sustainable energy sector. The chosen
organisation focuses on producing wind turbine at affordable cost. Thus, it is useful for
organisation in achieving competitive advantage over rivalries at marketplace.
Vestas focuses on becoming superior quality as well as latest technology wind turbine producer
that is determined as economic for them. The competitive edge of organisation help in achieving
competitive edge in this sector as it is suitable in providing appropriate option to several
consumers that is belonging from middle class background. In assistance of this, due to having
international & global presence, the organisation achieves brand image and reputation in front of
customer at market place. It also provides contribution to organisation in achieving competitive
advantage at market place (Sahaf, 2019) .
Identification & assessment of critical strategic marketing approaches
Value driven marketing strategy
The strategy of market emphasis on enhancing extra value provided to user for increasing
sales. For using approach related to strategic marketing, it is significant for organisation to assess
method of enhancing value to its customers. It is necessary to adopt a strategy that help
organisation in dealing with external element that impose direct effect on organisation. The
external element emphasised on increasing awareness regarding sustainability and enhances user
preferences in order to use most appropriate sustainable energy solution. The organisation
required to enhance customer worth in order to retain them for a longer period of time. And, the
company required making sure that wind turbine provide least harm to its environment as
compared to another wind turbine manufacturer. The organisation is conscious towards the
environment that is useful in increasing sales in future period of time. The company adopt
different kind of method in order to promote sustainability in market campaign that help in
increasing brand image and reputation that is linked with sustainability of organisation. And, the
company is capable to increase environmental concern; due to change in climatic conditions it
leads to growth of organisation. And, they are capable to handle threat related to shift of user
from wind to solar energy due to sustainable nature (Sharp, 2017).
International marketing strategy
This method of marketing includes application related to marketing strategy on
international level for different countries. There are different kind of marketing approaches

assists in building international brand and reputation and also achieve sustainability leadership
for a longer period of time. They required using this kind of strategy for achieving growth and
differentiating from other company in becoming international brand related to wind turbine
manufacturers. The respective organisation required to generate international brand image that is
assessed by every nation while make sure that local factor of particular nations must be prevail in
material of marketing for region. There are different kind of challenges which is arise from
business organisation that possess capital investment and power of brand like GE renewable
energy focuses on using international marketing method, the organisation required to focuses on
using different elements that define feature related to brand and product in marketing strategy.
There are different kind of promotional tool is used by organisation in order to adopt
international marketing tactics. The use of marketing strategy is important for Vestas as it assists
organisation in tackling level of competition that is present in global level (Vellas, 2016).
CONCLUSION
On the basis of above given assignment, it is assess that it is important for company to
improve appropriate marketing tactics that enhances sales of organisation. It is important to
assess external element imposes direct effect on organisation in addition with capability of
marketing of organisation rivalries. It is significant to assess that capability resources as well as
assets of marketing of organisation assists in achieving competitive position for understanding
methods to build appropriate strategy of marketing. It is necessary to understand capability of
marketing of organisation that generate strategic marketing which signifies uniqueness of
organisation and it is significant to choose suitable strategy of marketing like innovation tactics
and global marketing strategy.

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