MKTM028 Strategic Marketing: PESTLE Analysis of Bikes in Canada

This case study provides a comprehensive PESTLE analysis of introducing 'pollution eating bikes' to the Canadian market. It examines political stability, economic factors like Canada's strong economy and trade agreements, and social trends such as environmental awareness and health consciousness. The analysis identifies potential challenges, including the high cost of living, and recommends an integrated marketing strategy encompassing social media and traditional methods, including event organization, to promote the bikes. The paper also highlights the importance of understanding external environmental factors for strategic decision-making. Desklib is a platform where students can find similar solved assignments.

Strategic marketing
Strategic marketing
Name of the University
Name of the student
Author note

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Executive Summary
The purpose of the paper is to evaluate the concept of staregic marketing while analyzing case
study. The case study gives an overview of the product name pollution eating cycle. The paper
conducts a Pestle analysis of the country Canada in line with the new product. The paper gives a
thorough knowledge of the influence of the factors on the business sector of the country.
However, the paper prior to the pestle analysis states the advantages of PESTLE analysis and
that the framework brings benefits to the customers. Towards, the conclusion the paper gives
suitable recommendations for the issues and challenges identified PESTLE analysis.

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Table of Contents
Executive Summary.........................................................................................................................1
Sound theoretical and conceptual perspective of PESTEL.............................................................3
Sound examination of PESTEL factors that the company will need to consider............................4
Political factors............................................................................................................................4
Economical factors......................................................................................................................5
Social factors...............................................................................................................................6
An effective practical foundation, which makes management recommendations...........................7
Social media marketing...............................................................................................................7
Traditional way of marketing......................................................................................................7
Event organization.......................................................................................................................8
References........................................................................................................................................9

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Sound theoretical and conceptual perspective of PESTEL
In order to analyze the macro-environmental factors that have an impact on business, the
PESTLE is the most useful framework. In respect to that Killeen, (2018) opines that by
conducting an analysis through PESTLE model, the major influential factors are identified while
evaluating the impact of the factors on business. Thus it is considered to be one of the most
effective tools of marketing. The Political, Economical, Social, Technological, Legal and
Environmental factors are evaluated in PESTLE analysis while giving a clear overview of the
environment that controls the business of a company.Gupta, (2013)is of the opine that PESTLE
analysis helps the strategy makers understand that which factors are in favor of the company and
which factors need immediate attention in view of further growth of the company. However
Hillson and Murray-Webster, (2017) argues that PESTLE analysis determines the future actions
of the company while keeping the impact of the factors in mind. To be more specific, when a
company uses a new product or expands its business, the marketers conducts analysis through
the framework of PESTLE. By analyzing the controlling factors, they have a clear understanding
of the factors(Zalengera et al. 2015). For example, through PESTLE analysis, the marketers
obtain knowledge whether the political condition would be suitable for the upcoming product or
the political condition of the country will bring benefits in which the company plans to expand.
Moreover, Pestle analysis gives helps to obtain a deeper understanding of the business (Rastogi
and Trivedi 2018). It is such a useful framework which assists the company to gain competitive
advantages to a greater extent. In accordance with Ho, (2014), the major benefit that businesses
receive from PESTLE analysis is that it identifies the major threats in terms of external
environment.

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As per Mahara, (2013), unlike other frameworks, PESTLE analysis requires nothing but
time and a thorough research. Thus it is considered as the cost effective tool of business
management. In this regard it needs to be mentioned that PESTLE analysis is the only mode
through which it can be understood that whether the factors have a direct or indirect impact on
business. For instance, it is generally seen that while developing prototype of a product, some
impotents factors like safety or aspects of law are overlooked(Rastogi and Trivedi 2018).
Agreeing with this Ho, (2014) states that while conducting the PESTLE analysis every minor
aspect are identified and then evaluated which in turn assures that the strategy makers or
marketers do not miss any important aspect while adopting strategies for further growth of the
business. According to Gupta, (2013), a proper PESTLE analysis gives an overview of the
potential threats in terms of the external environment that can have an adverse effect on business.
On the other hand, Mahara, (2013), suggests that while conducting an analysis through PESTLE
framework a clear idea of competitors’ position within the concerned industry so that the
company can take actions or strategies accordingly. While developing a prototype of a product or
expanding in a wide market, a company needs to be taken all the social factors under
consideration in order to assure that the product can achieve maximum acceptance from the
customers(Zalengera et al. 2014). Thus it can be apt to assert that all the above mentioned
benefits are generated from PESTLE analysis which made the framework extremely useful for
the company.

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Sound examination of PESTEL factors that the company will need to consider
In order to discuss the PESTLE analysis in line with the launch of pollution eating bikes
in the country of Canada, the three major components of the frameworks; political factors,
economic factors and most importantly the social factors will be analyzed below.
Political factors
The type of government that exists in Canada is democratic. Thus being a democratic
country, Canadian government has been having a liberal approach I terms of trade rules and
regulations (Zalengeraet al. 2014). Over the past two decades it has been evident that the growth
of business sector in Canada is extremely considerable. The real GDP of country in the year of
2016 has been reported CAD 1795.56 while CAD 2026.83 was reported as the nominal GDP
(GAC 2018). Due relaxed jurisdiction system, the industrial growth of the company has become
remarkable. The cost of living in the country has been increased which created an opportunity of
growth of the business sector. Unlike the neibouring countries like United Kingdom and United
States of America, the political condition of the country is stable which is one of the positive
aspects for further growth of the company. (Rastogi and Trivedi 2018) opines that growth of any
company whether it is large or small in size, exclusively depends on political situation. It can be
observed that in Asian countries where political condition is not stable, the economical growth is
low for which most of the companies try to avoid the particular market while preferring the
countries like Canada. The threat of drastic change of the trade laws and regulations is low which
in turn helps the further growth of the company so that most f the companies look for economies
like Canadian in order to assure smooth business process of the company. Since it has been
observed that the political environment of Canada will be highly suitable for Pollution Eating
bikes.

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Economical factors
From the perspective of economy, it needs to mention that the Canadian economy is
considered as one of the large economies all over the world. The rapid growth of economy over
the past two decades has been attracting many giant companies in order to invest in the business
sector of the country (Ho 2014). The company has been able to secure itself as one of top ten
trading countries across the world. Several economic activities including different treaties were
signed between the Canada and other countries in order accelerate the growth of business within
the country. The US-Canada Free Trade Pact was signed by the governments of the two
countries so that more business opportunities can be created (Ustr.gov 2018). Since the past few
years, Canada has been eying on more business opportunities with US. However, the financial
crisis affected the company while slowing down the pace of economic growth.
Due to the financial crisis major companies focused on cost cutting measures in order to
increase sustainability within the industry. Because of the emergency, the overall revenue of the
organizations brought and had down to take some cost decreasing measures, for example,
limiting providers (Gupta 2013). As a measure of reducing the cost of the company, the
companies instead of product development, focuses more on market penetration of the existing
product range. Thus it has that in order to compete with rival companies most of the companies
have reduced the product price so that sales margin can be increased. As per Hillson and Murray-
Webster, (2017), factors identified with economy have real impact on the overall organization.
The financial emergency all through the world has influenced the general business industry and a
standout amongst the most unmistakable cost cutting measures is the minimization of works.
These variables likewise prompt the bringing down of creation of the organization. However, the
Canadian economy effectively dealt with the emergency, it can be said that the organizations

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rather dealt with the emergency in the meantime held its positions in the sphere of business.
Being a unique product, the pollution eating cycles will be quite an expansive product. Since the
cost of living has increased in the country there might not be desirable outcome in terms of sales
and profit margin.
Social factors
The social trend of saving the environment will play a vital role for the business of
pollution eating bicycles (Collins 2018). There has been increasing trend of taking initiative of
reducing the carbon footprint generated from industry. Since Canada is one of the most
important international markets and there has been a demand of pollution control products within
the country, the product will positively generate a large amount of revenue from it. On the other
hand another social trend very much evident within the society of Country is that the trend of
staying fit. Due to the health conscious trend, the countrymen prefer doing physical activities
such as cycling, free hand exercises and so on. Thus it will be right to stay that the product will
be able to meet the expectation of the customers.
An effective practical foundation, which makes management
recommendations
The major issue is that in an economy where cost of living has been increase, the
company needs to have proper integrated marketing programs in order to promote the pollution
eating bicycles (Yeshin 2012). In order to make it effective the marketing strategy will include
social media based strategy and traditional way of marketing.

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Social media marketing
Social media marketing is largely considered to be one of the most useful marketing
strategies since it reach out to maximum customer base within less time (Mulhern 2013). Thus
under the social media based marketing, several activities like posting video contents, audio
contents, photograph so that most of the customer can be attracted towards using the product.
Traditional way of marketing
Beside of social media marketing the traditional way of marketing strategies needs to be
adopted by the company so that the product can be promoted (Mulhern 2013). Even though this
age is solely dominated by social media platforms traditional way of marketing is the easiest way
to attract the customers (Belchet al.2014).
Event organization
In order to promote the branding of the product, the company must organize some events
featuring the product and its uniqueness (Porcu 2018). Beside of that social media marketing the
traditional way marketing will need to sponsor big events like sports activities. Thus to conclude
it will be right to state that the by not only event organization will help the product pollution
eating cycles to be promoted. However, more focus should be given on social media marketing
since social media marketing has been observed as blooming with higher rate of success.

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References
Belch, G.E., Belch, M.A., Kerr, G.F. and Powell, I., 2014. Advertising: An integrated marketing
communication perspective. McGraw-Hill Education.
Collins, R. 2018. http://users.ox.ac.uk/~kell0956/docs/PESTLEWeb.pdf. [online] users.ox.ac.uk.
Available at: http://users.ox.ac.uk/~kell0956/docs/PESTLEWeb.pdf [Accessed 26 Jul. 2018].
GAC. 2018. Annual Economic Indicators. [online] Available at:
http://www.international.gc.ca/economist-economiste/statistics-statistiques/data-indicators-
indicateurs/Annual_Ec_Indicators.aspx?lang=eng [Accessed 26 Jul. 2018].
Gupta, A., 2013. Environment & PEST analysis: an approach to external business
environment. International Journal of Modern Social Sciences, 2(1), pp.34-43.
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude.
Routledge.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), pp.6478-6492.
Killeen, J. 2018. [online] Available at:
http://cdn2.hubspot.net/hub/170850/file-18473894-pdf/docs/understanding_your_business_envir
onment.pdf [Accessed 25 Jul. 2018].
Kolios, A. and Read, G., 2013. A political, economic, social, technology, legal and
environmental (PESTLE) approach for risk identification of the tidal industry in the United
Kingdom. Energies, 6(10), pp.5023-5045.

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Mahara, T., 2013. PEST-Benefit/Threat Analysis for selection of ERP in Cloud for SMEs. Asian
Journal of Management Research, 3(2), pp.365-373.
Mulhern, F., 2013. Integrated marketing communications: From media channels to digital
connectivity. In The Evolution of Integrated Marketing Communications (pp. 19-36). Routledge.
Porcu, L. 2018. How Integrated Marketing Communications (IMC) works? A theoretical review
and an analysis of its main drivers and effects. [online] www.unav.es. Available at:
https://www.unav.es/fcom/communication-society/en/resumen.php?art_id=415 [Accessed 26 Jul.
2018].
Rastogi, N. and Trivedi, M. 2018. PESTLE TECHNIQUE – A TOOL TO IDENTIFY EXTERNAL
RISKS IN CONSTRUCTION PROJECTS. [online] irjet.net. Available at:
https://irjet.net/archives/V3/i1/IRJET-V3I165.pdf [Accessed 26 Jul. 2018].
Ustr.gov. 2018. North American Free Trade Agreement (NAFTA) | United States Trade
Representative. [online] Available at:
https://ustr.gov/trade-agreements/free-trade-agreements/north-american-free-trade-agreement-
nafta [Accessed 26 Jul. 2018].
Yeshin, T., 2012. Integrated marketing communications. Routledge.
Zalengera, C., Blanchard, R.E., Eames, P.C., Juma, A.M., Chitawo, M.L. and Gondwe, K.T.,
2014. Overview of the Malawi energy situation and A PESTLE analysis for sustainable
development of renewable energy. Renewable and Sustainable Energy Reviews, 38, pp.335-347.