marketing strategy (Case Study Sample)

Marketing strategy Name Lecturer Course Date Executive summary The study report lays out British American Tobacco’s (BAT) long-term strategies for transforming to a low carbon enterprise. The company is establishing a new model to ensure its profits gain as the world moves toward a low carbon economy. To archive maximum profit the company will benefit from the political stability of developed countries such as the United Kingdom. The firm has prioritized providing its customers with environmentally friendly products, recyclable and biodegradable products to meet and satisfy their needs. The model may be difficult to implement because the prevailing economic climate has huge impacts when it comes to people purchasing decisions. The strict enacted environmental guidelines by the government may assist BAT in arching its vital goals and aims. However high rivalry and inadequate suppliers of quality goods may cause the company’s influence. BAT may choose from a wide variety of different products for its clients to purchase. According to BAT urban and middle-class clients are less concerned about the issue of climate change. Table of ContentsExecutive summary 1introduction2situational analysis3PESTLE AnalysisPorter’s Five ForcesSWOT AnalysisSegmentation, Targeting, and PositioningMarketing Objectives Market mix Recommendations References Marketing strategy Introduction Market-oriented strategy is a process through which organizations plan their objectives, competencies, and resources with the current market opportunities. This field of marketing planning is concerned with the rethinking of business models, goods, and services to help firms to attain their long-term financial objectives. The strategy is separated into four layers is the corporate level, divisional level, business unit level, and the product level (Quintás et al., 2018). Coming up with a long-term growth strategy is vital for being competitive. Overall marketing is an important recipe for the strategic planning process. In this particular case, British American Tobacco has been selected. Situation Analysis PESTLE Analysis British American tobacco Political factors Economic factors Social factors Technological factors Environmental factors Figure 1: PESTLE Analysis Source: (self-made) Political Factors Political factors play a vital role in the BAT Company. Political factors determine the company’s long-term profitability in certain regions and countries around the globe. British American Tobacco operates in several countries which exposes the company to different political systems and different markets. Before entering into any particular market the company analyses factors such as before entering the market and investing, political stability, risks in the military invasion, intellectual property protection, favored trading partners, mandatory employee benefits among others (Berry, 2020). The political stability of developing countries and developed countries and favorable markets benefit BAT as it invests more hence boasting it generated revenue (Li and Gong, 2020). Economic Factors Major economic factors that affect BAT business and its performance in the market are economic growth, wage policies, inflation, and unemployment rate (SMAILI and Hachimi, 2019). Some of the major opportunities for BAT’s expansion of its market are stability of world developed countries’ economies, rapid growth and economic stability of developing countries, and an increased disposable earning among target clients. Some of the economic factors that British American tobacco considers are the type and stability of the economy, mode of government intervention in the free market, stability and exchange rate of the country currency, and education level in the host country’s economy (Åhman et al., 2018) Social Factors The culture of an organization is affected by society’s culture. The population belief and attitude play a vital role in how the British American tobacco marketer will understand clients and how to do marketing, branding, and marketing of products. The social factors for the pestle analysis to be considered by the British America tobacco plc. are skills and the demographic of the population, the level of education, culture in terms of gender role, the spirit of entrepreneurship in the society, leisure and health, and environmental consciousness (Barraclough and Gleeson, 2017). Technological factors Technology is rapidily affecting many organizations across the globe. A company should not only consider the technological analysis but also the speed at which the technology affects the operations of the industries (Harvey et al., 2018). Low speed in technological advances will give the firms enough time to adjust and suit while fast technological advances will strain industries making it very stressful to cope thus firms may incur losses technological analysis involve the understanding of the following impacts, most recent technological advancement by the competitors, impacts of technology on products offering, the rate at which technology is diffusing among others (SMAILI and Hachimi, 2019). Environmental Factors that impact BAT Plc. Different organizations have different routines environmental standards which can affect the level of profit of an organization in the market. That’s different states within a country that have different environmental and liability laws (Bialous and Glantz, 2018). For example, the state of Texas and that of Florida have different liability laws in case of an environmental disaster. Organizations should evaluate the environmental standards before entering a new or existing market to meet the requirements. Some of the environmental factors British America Tobacco considers include, the issue of climate change, weather, air and water pollution and regulation, managing waste materials, population attitude toward renewable energy, and population toward ecological and endangered species (AHMED, 2019). Legal Factors that impact BAT. In some countries, organizations’ intellectual and property rights are not well protected by the relevant institutions of law (Borland, 2019). Before entering and investing in such markets institutions should evaluate the risks carefully as it can lead to an organization losing properties worth lot, before entering markets the organization should consider health and safety law, discrimination law that is a law that does not support a company with no roots in that country, employment law that is who to employ and by what terms, and mode of data protection (MacKenzie and Collin, 2017). Porters’ five Forces Threats of new entrants Bargaining Power of suppliers Bargaining power of buyers Threats of substitute products or services The rivalry of existing firms Figure 2: porter’s five sources Source: (own source) Porter’s forces is a management of tool used to learn and analyze and to understand the level of profitability in a given organization (Bialous and Glantz, 2018). BAT managers can use the tool to evaluate and learn how the forces affect the profitability and hence develop a strategy to enhance the British America Tobacco Plc. competitive and gain profit for a long time. Porters’ forces include new entrant’s threat, supplier’s power to bargain, buyer’s power to bargain, the existence of substitute products, and rivalry among existing competitors (MacKenzie and Collin, 2017). Threats of New Entrants New entrants into the market bring new methods of doing things better, innovation, hence adding pressure to BAT through lower price strategy, products have new values added. For British America Tobacco to manage and maintain its market share it must counter the threats variously (SMAILI and Hachimi, 2019). The new ways may include, innovating new goods and services, this strategy makes the customer not only buy the new product but a reason to buy goods from the company, funding research and building capacities, this keeps off new entrants since its incapable of entering a dynamic industry (Borland, 2019). Bargaining Power of Suppliers Most enterprises in the household goods industry purchase raw materials from suppliers. Consumer goods powerful suppliers use negotiating power to gain better prices from the household firm. This power in bargaining may affect the overall profit of the firm (Borland, 2019). For a maximum profit, British tobacco tackles the suppliers bargaining power through, building an effective and efficient supply channels with various suppliers to ensure there is always a choice if one fails, the company develops dedicated suppliers who only depends on the firm to survive in this case the supplier will not have the power to bargain (MacKenzie and Collin, 2017). Bargaining Power of Buyers Buyers demand a lot that is they want the best quality for a low price. In the long run, this pressurizes British America Tobacco’s profitability. When the customer’s base is powerful the bargaining power of the customer increases thus the ability to ask for more discounts. If the customer’s bargaining power is more, the firm may incur losses thus need to tackle the problem (MacKenzie and Collin, 2017). British America Tobacco tackles the problem in different ways that is, one they build a large customer base, to help streamline the sales and reduce the bargaining powers of the customers. Two they very fast innovate new products this prevents discounts thus profit margin rises and lastly the innovation of new product will prevent customers from defecting (SMAILI and Hachimi, 2019). Threats of Substitutes Products or Services When brand new products or services serve and satisfy customers in a similar way the profitability of the firm suffers since the customer may opt for the product (SMAILI and Hachimi, 2019). The threat of a commodity or a service being substituted is high if the product offer...