Strategic Marketing Assignment Sample

Strategic Marketing Assignment

Introduction

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Business requires strategic planning because it provides a roadmap for them to follow and adjust their path if necessary. The business plan, which includes the company’s mission, vision, and values, is the first step in developing a strategic strategy. As a means of supporting an organization’s long-term goals and objectives, strategic planning aims to stabilize the existing environment. New initiatives, new technology, data centers, data warehouses, exponential data expansion, ownership costs, and available resources in an organization may all be implemented via strategic planning, which aids in assessing future needs. Strategic planning enables a corporation to adapt appropriately to the external environment’s causes of uncertainty and risk (Mazzarol and Reboud, 2020). Strategic planning begins with an examination of the company’s numerous future possibilities in light of recent alterations in the external environment. The most important part of this study is identifying the company’s market position. It is therefore necessary to analyze the internal and external environment of in order to come up with an appropriate product recommendation for the organization.

Recommended Product and Location

Marketing, promotion, public relations, and more are all part of Ashanti Marketing Solutions Company’s scope of work (Rajnoha et al., 2019). As a way to penetrate new markets, a new product may produce new customers, grow the firm, and enhance market share but also profit margin. The following is a list of suggested readings:

PESTEL

Macro-environmental elements are those that have an influence on organizations on a broad scale and are independent of the any one firm’s internal resources. Competitors, PESTLE analysis, and market research may all be impacted by this trend (Saad et al., n.d). Ashanti Marketing Solutions recommends doing a PESTLE study before entering a new market. It’s a marketing principle known as PESTLE analysis. It is also used as a way of monitoring the environment before launching a product, service, or other kind of product.

Political: As a general rule, this refers to countries where the government has a significant impact on the economy and business environment. Since they are entering the German market, this new firm should research the laws and taxes in Germany to see what effect they will have on the business, such as the 30 to 33 percent corporate income tax in Germany (together with the solidarity surcharge and the trade tax) (Katuu, 2020). As a result of tax rises, the corporation will have a lower profit margin.

Economic: Rates of interest, inflation, currency exchange rates, and patterns of economic development are a few examples of economic factors. The German economy grew at the quickest rate in Europe and ranked sixth globally in 2017 in terms of GDP growth. Ashanti Solutions stands to gain greatly from this because of the increased demand, market share, and financial rewards. However, if the inflation rate rises, it will have an impact on the pricing of goods and services.

Social: For Ashanti solutions, demographic trends, market divides, and consumer preferences in Germany are all factors of the population size in each location, as do cultural trends and demographics (Scott, 2020). But if there is a large demand for Web design in these markets, it may be a good fit for the organization.

Technological: When it comes to the company’s ability to innovate and be creative, technology has an impact (Raith, 2020). The more modern the company’s equipment, the more quickly and effectively the process will function. Because technology in Germany is more expensive than in the UK, companies must make a budget for how much money they will spend on it.

Legal: A country’s rules and regulations affecting the business climate and other policies may be referred to as legal. Take, for example, consumer protection legislation, workplace safety regulations, and so on (Elhassan, 2019). As a result, legal discussion in Germany should center on consumer and labor regulations, among other things, to reflect the implications.

Environmental: Climate, geography, weather, environmental offsets, pollution, global climate change, and other aspects of the immediate environment are all included in this category (Selvi and Bezawit, 2020). For Ashanti solutions, it is critical to do environmental research in Germany in order to identify pollution levels, recycling rates, and eco-friendly practices.

Threats to the firm may include:

Market risks (input availability competition, cost changes, consumer preferences, etc.) might have an impact on the organization. Employees in the operational (maintenance, appropriateness, and safety) division benefit from the expertise of the web design department (Islami, Mustafa and Topuzovska Latkovikj, 2020). Failing to finish a project due to a lack of funding, planning, or design Currency fluctuations, inflation, and taxes may all be regarded hazards, as can the company’s actions’ effects on the environment or society as a whole. Ashanti must devise a strategy to counteract these challenges by analyzing all parts of the business, implementing improved research and development programs, and employing skilled employees.

Market Entry Options

To enter countries like Germany, there seem to be a variety of models organisations may use to determine which approach is best. In this scenario, we’ll examine three possible entrance points and determine which one is most appropriate for Ashanti Solutions Company (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). Organizations might be impacted in a variety of ways by new entrants to the market, therefore it’s critical to gather data on such things as risk, market size and growth, distribution channel availability, competitive intensity, and other things like legislation and restrictions.

When two or more parties commit on a set of goals in working together, yet maintain their own identities, strategic alliances are formed. Organizations who decide to join forces and build alliances across several initiatives and marketplaces may find this useful (Abdolshah, Moghimi and Khatibi, 2018). As a result, Ashanti Solutions may collaborate with other organizations in the same sector in the German market in order to prepare for contracts. Due to the obvious new market that the firm is entering, this model will be of no help in developing the new product that wed create.

Mergers, Acquisitions and Joint ventures:

Mergers and acquisitions are tactics used to transform the ownership of firms, merge with the other businesses, or cooperate together on operations and projects, such as a merger or acquisition. In the situation that one corporation decides to buy out another, a merger is inevitable. To cooperate with another company in particular projects or activities, they would employ acquisitions instead (Sankaran et al., 2019). These synergies can boost market share and save costs by leveraging the company’s economies of scale. This is particularly true if the newly combined firms can streamline their administrative processes. 

Mergers may be classified as either vertical or horizontal in nature. Organizations that are all in the same production stage may be merged into a single company, which is called horizontal integration. Expanding a company’s operations to new markets or growing the variety of goods and services it offers to existing customers is horizontal expansion. Other German marketing firms might be identified and merged with or acquired by Ashanti solutions via negotiations (Shpak et al., 2020). When two firms that are at various stages of production merge together, the result is a vertical integration. A company’s ability to control both its upstream and downstream suppliers (backward integration) (forward integration).

Vertical Integration – Benefits

• gaining access to existing unavailable downstream distribution channels
• Improved scheduling, collaboration, and planning
• Reduce the expense of travel.
• Margin of profit, whether in the upstream or downstream sector

Disadvantages of Vertical Integration

• Costs that might go up in the future
• The expense of bureaucracy has risen.
• It might prevent a business from switching suppliers.
• a decrease in the ability to adapt

Joint Venturing

Employing joint ventures as a strategy to enter new markets is yet another option. Contracts for management, franchises, licensing, and subcontracting all should be used in overseas markets. Depending on the degree of the joint venture and the size of the market, they might vary (Saad et al., n.d).

Foreign direct investment (FDI) 

When a company from another nation makes a substantial investment in a company in their country, it is what is known as foreign direct investment (FDI). A direct stake in the company sets it apart from a foreign portfolio investment. Since they have total market control, Ashanti Solutions Company may use this technique to enter the German market. This is especially true with the launch of a new product. With their market domination, they may also win new customers and maintain their income (Katuu, 2020). To take advantage of scale savings, Ashanti Solutions may also benefit from tight control over operations in countries like Germany. Since it requires a significant investment of time and money, this is clearly a long-term approach.

Ashanti Solutions sees a joint venture as an excellent starting point for expanding into new markets because of the cost savings and risk reduction it offers. Subcontracting or franchising may be utilised as a way to strengthen your position in the marketplace (Raith, 2020). As a first stage, this approach may assist the firm enter the German market, gain market share, and increase customer awareness of their brand and goods.

Market Segmentation

Segmentation is a process of dividing clients into distinct groups or subsets. As a result, businesses have the option of either creating distinct goods for each market group or using the same brand to target several markets (Scott, 2020). Businesses may benefit from this strategy because they can increase average pricing and increase sales by segmenting markets. Businesses may typically save money on manufacturing and marketing expenditures by segmenting and targeting their customers.

There are four types of market segmentation: demographic, geographic, behavioral, and physiographic. Consumers are segmented based on a variety of factors, including their gender, age, and place of residence. For example, Ashanti Solutions would indeed be able to observe the preferences and incomes of clients if they were to use demographic segmentation. Geographical segmentation based on the division of customers into local, rural, and national populations (Elhassan, 2019). Ashanti Solutions, if it chooses to use this segmentation, has the ability to target clients in certain market segments. Pricing, offers, promotions, and other factors influence how consumers behave in the market, which is reflected in behavioral segmentation. By using segmentation, Ashanti Solutions Company will be able to understand consumer preferences and keep them by offering and pricing them attractively. Customers’ attitudes, views and interest in items, as well as their perceptions of these things, are all influenced by physiographic segmentation (Islami, Mustafa and Topuzovska Latkovikj, 2020). Furthermore, Ashanti Solutions might benefit from this category as well since the impression of goods affects consumer feedback and comprehension in various marketplaces.

Considering the segmentation, Ashanti Solutions Company’s following step might be to design a marketing plan for the German market. Whenever it comes to selling goods and services, this approach is a selection of customers. Companies will be able to pick just one or two segmentations, dependent on how decisions are made. Segmentation, targeting, and positioning all play major role in the marketing mix, which is comprised of the four p’s: product, price, location, and promotion. Each P in the plan marketing mix should be well if it is to be a success (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). A generic product may be introduced as in mass marketing or a new product could be launched for distinct groups as in multi-segment marketing, as Ashanti Solutions Company has a vast variety of goods and services to offer (Abdolshah, Moghimi and Khatibi, 2018). The target market for Web Design in Germany can include professionals, small and medium-sized enterprises (SMEs) that are interested in providing website design services, as well as newly established businesses. Geographical and physiographic segmentation could be used to break this down.

However, there are various types of target markets:

The term “niche/concentrated marketing” refers to this type of marketing, which focuses on a certain segment of the market (Saad et al., n.d). Consumers of Ashanti Solution Company should have a well-defined set of customers and address specific client demands, that is the most appropriate strategy for Ashanti Solution Company because they are only targeting a few sectors.

Undifferentiated mass marketing refers to the practice of a business selling the same generic product to most of its clients without differentiation.

Marketers use a strategy known as “selective/differentiated marketing” to target certain sorts of customers with a variety of items. There are going to be many various items that they’ll be pursuing. To meet the needs of various customer groups, a business may tailor its product line.

A company’s position in the market, as well as its strengths and limitations, are outlined in positioning. Companies can stay on top of their game and have a thorough understanding of their industry by strategically placing themselves (Katuu, 2020). The marketing mix of 4 Ps is used to classify this. Ashanti Solutions’ marketing mix may be summed up as follows:

Product – a new service of Web design will be launched in Germany

Price – To match the modern German market, pricing methods may include a mix of cheap and high-priced offers and bargains for bundles, depending on the website’s design and functionality.

Place - The customer’s ability to attend is dependent on the location. Depending on the firm, clients may be able to access the service online.

Promotion - There are several sorts of promotion tools available, including advertising, brochure, poster, radio, and internet marketing. In the case of the firm, they should employ a combination of promotional strategies in Germany’s market to raise awareness.

The new product’s first positioning in Germany should be aimed at professionals and small and medium-sized enterprises (SMEs), with a focus on the niche/concentrated market. However, marketing SMEs’ businesses and raising awareness of the new product might be expensive.

Porter’s Generic Strategy

Due to the obvious increased power providers will have in the German market, Ashanti Solutions’ entry into to the industry poses a danger to existing organizations by increasing the price of its products due to the presence of new entrants. Additional prices, high exit costs, and a sluggish market all result in increased competitiveness among market players, yet this typically results in lower profitability. In a market, competitors will constantly be looking for methods to get an edge over one another. If the market’s buyers grow stronger, they can influence supply-side pricing, which in turn raises the stakes for providers (Islami, Mustafa and Topuzovska Latkovikj, 2020). If there are numerous providers in a market, they may boost rivalry amongst themselves, but suppliers that have a lot of power can also include a lot of procedure. As soon as Ashanti solution comes on the market and reaches the customers, their competition will rise since they provide a service (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). Customers in Germany wield considerable purchasing power, and there are several businesses in various regions. This gives them a competitive edge in Germany. In order to acquire a competitive edge and seize the German market, Ashanti solutions might use Porter’s Generic model. For the sake of both classifying and influencing corporate behavior, Porter established general strategies.

Cost Leadership Strategy:

This value chain management technique has as its major purpose the maintenance of market dominance. This approach could help the company get greater market share because the middle class makes up the majority of the customer marketing mix in almost every nation in the globe (Sankaran et al., 2019). The best way to meet the requirements of middle-class clients, who put a premium emphasis on pricing, is via cost leadership. For a business to accomplish sales targets and endure competition from its closest rival, it may also be necessary to constantly provide promotions and discounts in addition to decreasing production costs and increasing supply chain efficiency (Abdolshah, Moghimi and Khatibi, 2018). The goal of these discount and promotional campaigns is to raise customer awareness of the brand and encourage them to buy more of the company’s goods.

Differentiation

Another often used generic method for obtaining a competitive advantage is differentiation. It is possible for Ashanti Solutions to reach growth targets by combining differentiation and cost leadership. It is necessary to add the company’s consumer base by stressing the product’s distinctive attributes via differentiation as a supplementary generic approach (Katuu, 2020). Distinguishing one’s own product offers from the competition is a key component of differentiation generic strategy. Marketing, branding, and celebrity endorsements may all be heavily promoted in order to set a firm apart from the competition.

Focus strategy

Companies should concentrate their efforts on a small number of targeted market segments as the third general competitive strategy. A low-focus strategy may be used to Ashanti Solutions’ benefit, even while delivering the best value. In order to apply a low-cost focus strategy, the lowest possible price is provided for the needs of a certain market segment (Raith, 2020). The best value strategy, on the other hand, will place a focus on the quality, size, and look of the product.

Conclusion

An examination of Ashanti Solutions Limited’s marketing plan for a new product and its entry into a new country has given valuable understanding of how businesses may both gain and be threatened by the challenges and dangers associated with entering new markets. Decision-making and problem-solving are based on identifying and addressing risks. Decisions based on the PESTLE analysis may be made better with the help of market research, investigation, and data collection provided to the business. Because of this, Ashanti Solutions Company has to come up with a solid marketing plan.

References

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Elhassan, F.A., 2019. An integrated Business Intelligence Model to Enhance Learning Processes in Higher Education Institutions (Doctoral dissertation, Sudan University of Science & Technology).

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