Marketing Strategy Report: ThirdWay Group's International Venture

This report provides a comprehensive international marketing strategy for ThirdWay Group, focusing on its expansion into the Italian market. The report begins with an introduction to marketing strategy and an overview of ThirdWay Group, a UK-based design and build company. The main body of the report details the marketing planning process, including mission statements, corporate objectives, and a thorough marketing audit. This audit encompasses PESTLE analysis (Political, Economic, Social, Technological, Legal, and Environmental factors) specific to the Italian market, alongside an evaluation of various market entry methods, with a recommendation for Foreign Direct Investment. The report also includes a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) of ThirdWay Group and an examination of marketing assumptions using Porter's Five Forces model to assess the competitive landscape. Finally, the report concludes by outlining marketing objectives and strategies to facilitate ThirdWay Group's successful entry into the Italian market.

International
Marketing Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing Plan/Marketing Planning Process..............................................................................3
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing strategy is defined as business overall plan in order to reach prospective users
and turn them into customers of goods and services (Akaka, Vargo and Lusch, 2013). This
contain value proposition of company, brand message, target consumers, demographics and high
level elements. It is also referred as forward looking approach, long term planning in order to
achieve sustainable competitive advantage. The organisation chosen for assignment is ThirdWay
Group which was founded in 2009 at London, United Kingdom. It design and build, architecture,
furniture and development of commercial real estate. This was established by Ben Gillam with
value of creating team, commitment, trust and fun. It work on values, principles formulated by
them and providing all benefits to working force or employees. This report cover market, design
and plan for entering into international marketing strategy for brand and product.
MAIN BODY
Marketing Plan/Marketing Planning Process
Marketing plan is defined as business document which outline marketing tactics and
strategy (Berthon and et. al., 2012). It is report which outline marketing strategy for coming
month, year or quarter. This is prepared for time period of one year which covers various aspects
such as cost, goal, mission, SWOT, PESTLE and many more. It is very important for
organisation to prepare market plan while entering into international market so that goal and
objectives can be achieved. ThirdWay is entering into Italy market for expanding their business
so it has to make proper market plan for effective outcomes. They are described below:
1) Mission
In order to expand business in international market that is Italy, ThirdWay Group has to
make mission statement so that they can easily achieve it. It is defined as basic function of
organisation in society, goods and services produced for consumers. There are four elements of
mission which should be considered such as purpose, values, standard & behaviours and strategy
& scope. The mission statement of ThirdWay Group is to provide high quality products and
services to their consumers by following rules and regulation.
2) Corporate Objectives
The objectives should be based on SMART which includes specific measurable
achievable relevant and time bound. It is very important for ThirdWay Group to set corporate

objectives so that better outcome can be achieved. The objectives is to increase market share by
10% in upcoming two years.
3) Marketing Audit
It is defined as systematic, evaluation, comprehensive, analysis and interpretation of
business marketing environment which includes goals, strategic, objectives, principles for
ascertaining areas of problem and opportunities to recommend plan of action to enhance business
marketing performance (Cavusgil and Cavusgil, 2012). ThirdWay has to do marketing audit in
order to know about PESTLE and market entry mode. They are described below:
PESTLE Analysis
This is defined as tool that is used for monitoring and analysis of macro environment
factors which has impacted performance of organisation. It is used for entering into international
market so that political, economic conditions of that country can be known in proper manner.
ThirdWay has to do PESTLE analysis for expanding business into Italy market which are
described below: Political Factor- This is defined as government policy, foreign trade, political stability
and others. Thirdway is expanding their business in Italy market so they have to analyse
political factors in proper manner for achievement of business objectives. It is following
multi party political system so while expanding business every factors should be analysed
properly (THE ITALIAN MARKET ENVIRONMENT, 2019). The sale tax rate is 22% and
VAT rate is 25% which helps respective organisation to earn high profit margin in selling
of furniture. Italy helps in providing online information to foreign investor. There is high
corruption in Italy which can create problem for expanding business by respective
organisation. Economic Factor- It includes various elements such as economic growth, inflation rate,
interest rate and so on. The economy and government of Italy is based on industry and
service. Thirdway has good opportunity to expand their business in respective country as
there is high unemployment rate which create employment for those people to survive
and sustain their life in proper manner. There is no restriction is currency exchange and
equal wages system which is good option for respective organisation for expanding their
business.

 Social Factor- There are different elements of social factors such as population growth,
age, income, cultural trends and others (Eggers, Hansen and Davis, 2012). There are 34%
of people who are between age group of 25-54. They have high demand for new and
latest furniture for their house and office purpose that creates opportunity for ThirdWay
to expand business in Italy. People prefer slow changes as they analyse each and every
things in proper manner. There is little bit difficult to expand any business in other
country. Technological Factor- It play effective role which has impact and affect on business. In
2015 Italy market has focused to keep on rising with technology for achievement of
maximum efficiency where they have upgraded services. Thirdway can expand business
in Italy as they want innovation and new things in products and services. The respective
organisation has to invest heavily in training and development skill of employees, quality
improvement, generating design technologies, production efficiency innovation. In case
of failure to do, they have to bear loss in respective market. Legal Factor- It includes safety of product, consumer's right, health and safety of
employees. Thirdway is expanding business in Italy so they have to provide maternity
leave, no discrimination among age, race, gender. These all legal factors should be
followed by respective organisation while operating their business in other country. In
case of failure to follow such legal laws and regulation, organisation has to bear loss at
marketplace.
 Environmental Factor- Italy is facing issues such as air pollution, energy, industrial
source, acid rain, insufficient industrial waste treatment and others. While expanding
business by ThirdWay, they have to considered all such elements in order to survive and
sustain in competitive market. For making furniture, wood has to be cut which can create
pollution so they have to follow environmental laws of respective country in order to
avoid failure (Italy: Environmental Issues, Policies and Clean Technology, 2019).
Market Entry Method
In order to expand business in other country, there are different market entry method
which can be used by ThirdWay organisation. This market entry method helps in business
expansion in different places which are described below:

 Joint Venture- It is defined as entry method where two or more business agrees to pool
resources in order to accomplish particular task (Felzensztein and et. al., 2014). It can be
business activity or new project work. In this entry mode, there is sharing of equal profits,
losses, cost related with it. ThirdWay is planning to expand business in Italy market so
they can do joint venture with other similar company in order to enlarge and increase
market share. Foreign Direct Investment- This is an investment where there is controlling of
ownership in enterprise in one country based in other country. The investment is made
for buying company in target country or expanding operations of an existing business in
that place. It is good options for Thirdway for expanding their business in Italy market to
increase their market share so that goal and objectives can be achieved in proper manner.
 Exporting- It is the defined as entry mode where business sell their products and services
to users in other countries (Griffith and Hoppner, 2013). In this method, exporting is done
for goods in another place which is easiest way of expanding business. ThirdWay can
adopt such method for expanding their business in different parts of world which can help
them to enhance their market share and profitability.
After analysis of different market entry method, Thirdway can adopt foreign direct
investment which is easiest and simple form of entering into other country. They can directly
invest their money in existing business at Italy market. It can help them to achieve their mission
and objectives statement.
4) SWOT Analysis
It is defined as strategic planning technique which is used for helping organisation to
identify their strengths, weaknesses, opportunities and threats related with competition or project
planning. They are internal as well as external factors that assist in knowing about strong and
weak points. The SWOT analysis of ThirdWay is explained below:
Strengths Weaknesses
 ThirdWay has loyal customer who
purchase product from this company
only.
 It focus on providing high quality
products and services to their
 ThirdWay has weakness in term of
skilled and capable employees for work
performance.
 It does not provide online products to
users which is also biggest weaknesses

consumers.
 The pricing strategy used by respective
organisation is affordable or consumer
based prices.
for it.
Opportunities Threats
 Due to providing of high quality
products, it has an opportunity to
expand business in other countries.
 It has opportunity to make customised
products as per requirements of
consumers.
 There are many other companies
dealing in same products and services
which is threat for respective
organisation.
 ThirdWay does not accept new
technology and development for
manufacturing of products which is
also threat for it.
5) Marketing Assumptions
It is defined as analysing current situation of market with help of different model and
theory (Hagen and et. al., 2012). This assist in knowing about new entry, threat, competitors,
existing organisation and so on. The model described below are as follows:
Porter's Five Force Model
This is described as tool in order to analyse competition of business which helps in
determining strength and weaknesses of industry. There are five elements of respective model
which are described below: Threat Of New Entrants- The threats of new entrants for ThirdWay is very low as it
requires huge cost for doing research and innovation (Hsu, 2012). Furniture industry of
Italy is based on labour intensive that depends on latest furniture production, skilled
manpower, research & development, high environmental, technical standards. It is not
possible for each and every company to follow such requirement which is easy for other
organisation to enter into market. Threat Of Substitutes- Thirdway has high threat of substitute as there are more than
130000 furniture manufactures providing all ranges of products and services to their

consumers. There are many companies which export product at low cost from China and
sell in Italy market. The respective organisation has to come in market with highly skilled
manpower who can manufacture as per requirement of consumers in affordable prices so
that users can switch from existing to new one. Bargaining Power of Suppliers- The bargaining power of suppliers is low as there are
many other suppliers from where they can purchase raw materials such as France,
Germany, Switzerland and so on (Johanson, 2013). Thirdway is small organisation which
provide high quality product and services to their consumer. It has high bargaining power
in order to supply products to consumers. Bargaining Power of Buyers- The bargaining power of buyer is high as there are many
other companies who design furniture and architecture for their personal and commercial
use. Due to large number of manufacturer of furniture, buyer can switch from one to
another without bearing any cost and time. Italy highly focus on maintaining strong
relationship with supplier, trade partners, design innovation, technology for reducing cost
and remaining competitive in international market.
 Competitive Rivalry- There are many companies in Italy which manufacture furniture for
their consumers. Apart from manufacturing they also import furniture from different parts
of world for users. In context of ThirdWay, it has to face problem of rivalry which create
problem in achievement of success and growth of business.
6) Marketing Objectives & Strategies
In order to achieve objectives, ThirdWay has to make strategies and plan so that it can be
done in more effective and efficient manner (Kumar and et. al., (2013). The strategies should be
made for branding, promotion so that consumer can know about products and services made by
respective organisation. They have to treat their employees in better manner for creating
motivation and satisfaction.
7) Forecast of Expected Results
After making mission, objectives, audit, SWOT analysis, marketing assumptions,
strategies, the forecasting is done for expected results. ThirdWay can do forecasting through
branding strategies and cultural issues faced by them. They are described below:
Branding Strategies

It is defined as plan which encompasses particular, long term goals which can be
achieved through evolution of successful brand (Leonidou and et. al., 2013). Through help of
branding strategies, consumer can know about organisation and their products in an effective and
efficient manner. The branding strategies used by ThirdWay are described below: Brand Extension- It is defined as branding strategy where organisation expand their
venture into new market (Types of Branding and Marketing Strategies, 2019). This
strategy helps in creating awareness to consumers regarding products and services.
ThirdWay is expanding their business in Italy market for increasing their market share
and growth in an effective and efficient manner. This branding strategies helps respective
organisation for better result achievement.
 Name Brand Recognition- It is defined as branding strategies where organisation uses
their own name brand for providing products and services (Morgan, Katsikeas and
Vorhies, 2012). There are many organisation which uses their name, logo, colours and
slogan for creating awareness among consumers. ThirdWay can use such branding
strategies for their users in order to make consumers aware about products and services.
Cultural Issues
While expanding business in another market, there are different types of issues faced by
organisation. This includes social, cultural and other that creates problems in achievement of
goal and objectives of business. The different types of cultural issues which are faced by
ThirdWay are described below: High Turnover- ThirdWay is expanding business in Italy so it is facing cultural issue as
need and demand of consumers and employer are different which creates problem for
better results (The Five Most Common Culture Problems -- And Their Solutions, 2019).
This leads to high employee turnover that increases cost to company. High Conflict- As people from different parts of world comes together to work in an
organisation who have different understanding, thinking that leads to create conflict in
enterprise. This arise problems among each other for better work performance.
 Ineffective Communication- The language of every country and understand power is
different. ThirdWay has faced communication problem while entering into new market
that create problem in achievement of goal and objectives.
8) Create Alternative Plans

ThirdWay has to make alternative plan in order to achieve goal and objectives of business
in an effective and efficient manner. The alternative plan has made for marketing mix and
mitigation for barriers and risks which are described below:
Marketing Mix
It is defined as set of actions, tactics which are used by company for promoting product
or brand in market (Papadopoulos and Heslop, 2014). There are four P's of marketing mix which
are used by company while entering into new market. The marketing mix of ThirdWay are
described below: Product- There are different types of products which are produced by ThirdWay for their
consumers and users in order to fulfil their requirements. The products supplied by them
are furniture, innovative and unique design of furniture and so on. In Italy market they
will be dealing with their existing products and services. Price- The pricing strategy adopted by ThirdWay is affordable or consumer based. As
products are designed and manufactured as per requirement of consumer so they are
charged accordingly. Therefore, respective organisation has to focus more on designing
of new and innovative products and services. Place- ThirdWay is currently operating their business in London, United Kingdom. It is
planning to expand in Italy in order to increase their market share and profitability ratio
in an effective and efficient manner.
 Promotion- For promotion of products and services, it has used different strategies such
as online, social media in order to create awareness among consumers and users in proper
manner. This helps in knowing about product and brand in new market that is Italy.
Key Barriers, Risk and Mitigation
While entering into new market, there are different types of barriers and risks which are
faced by respective organisation which creates problem in achievement of goal and objectives.
The key barriers are economies of scale, differentiation of products, requirements of capitals,
switching costs, government rules, regulations and policy and so on (Terpstra, Foley and
Sarathy, 2012). These are the most common barriers which are faced by every organisation while
entering into new market. Apart from these barriers, there are some risk which are faced by
respective organisation for new entrants. It includes political, legal, technology and so on. In

order to mitigate such barriers and risk, ThirdWay has to do proper market analysis and know
about requirement of consumers and produce accordingly.
9) Marketing Budget
It is defined as marketing plan which is identified in terms of cost (Whitelock and et. al.,
2013). This is the expected or estimated cost that will be required for promoting products and
services. It is very important for respective organisation to make budget so that actual cost can be
known. The marketing budget of ThirdWay is as follows:
MASTER MARKETING BUDGET
THIRDWAY GROUP
01/01/20 01/02/20 01/03/20
Budget (£) Actual Budget (£) Actual Budget (£) Actual
Market Research 60 40 60 90 60 40
Owned Media
(Blog) 20 20 20 0 20 10
Video Advertising
(YouTube) 160 130 160 100 160 270
Social Media
Advertising
(Facebook) 40 36 40 50 40 32
Marketing
Platform
(HubSpot) 50 50 50 50 50 50
Creative/Design
Software (TBD) 20 20 20 10 20 0
Recruitment
(Freelance) 40 40 40 40 40 40
Recruitment (Full
Time) 8300 9100 8300 9100 8300 9100
Hardware 150 150 150 150 150 150
TOTAL £8840 9586 £8840 9590 £8840 9692

10) Detailed Action Plan
It is document which lists about steps that should be taken for achieving particular goal
and objectives (Akaka, Vargo and Lusch, 2013). The main purpose of action plan is clarifying
resources required for reaching goal, formulating timeline for particular task that should be
completed. This is the way of monitoring each and every activities for achievement of goal and
objectives.
CONCLUSION
From above assignment, it has been analysed that organisation has to prepare proper
marketing plan in order to expand their business in international market. The marketing planning
process is carried out in effective and efficient manner. They have made proper mission and
objective statement which should be achieved within given time period. PESTLE & SWOT
analysis, market entry mode has used done for expanding of business in Italy market to earn
maximum profits and gains. Porters model has analysed for knowing about threats of new
entrants, substitute, competitors, suppliers and buyer bargaining power. Branding strategies has
adopted for creating awareness about product in market along with budget has been prepared.

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