Strategic Marketing Planning for Market Entry: A Case Study of Alba Bed Ltd

1.0. Executive Summary

Marketing strategic planning is essential for multinational corporate firms to strengthen their marketing tactics to enter a new market and target the audiences for enhancing brand performance in the market. The report focuses on reviewing the strategic marketing planning of the company, named Alba Bed Ltd, and it has shown their responsibilities in making them useful in the international market. Before conducting strategic marketing planning, it is necessary to review the internal environment of the company Alba Bed Ltd as well as market segmentation. The internal environmental analysis will be conducted through a SWOT analysis of Alba Bed Ltd. For those seeking further insight, marketing dissertation help can provide valuable guidance. The segmentation and target market will be evaluated through STP analysis, which provides a clear understanding of the target market and customer segment in the market so that the organization Alba Bed Ltd can target the right consumers, where the retention of the long term buyers would be high.

The study is also useful to review the market entry strategic planning through merger and acquisition and joint venture, and the discussion will help identify the suitable market entry strategy for the company Alba Bed Ltd. After the environmental analysis, strategic marketing planning will be evaluated through the 7P marketing mix strategy and the 7cs marketing model, where the strategic organizational tactics will be evaluated further. As per the findings, the company Alba Bed Ltd is efficient to deliver reliable and quality products to the customers, but the organization must develop market entry strategy and create proper planning for product diversification and cost leadership strategy so that it would be possible for the company to strengthen their customer’s base in the long run and secure the future sustainable development of the company.

2.0 Introduction and Background

Global marketing is described as the procedure of adjusting the marketing approaches of an organization in order to adjust to the situations of other nations. Organizations typically has workplaces in foreign nations where they market the products and services. Presently, due to the proliferation of internet, many organizations with different sizes can reach to customers anywhere in the world. If an organization chooses to expand the business, it need to use and services (Wu & et al., 2016). Based on this aspect, the paper is going to analyze the global marketing strategy of Alba Bed Limited. This study will explain the segmentation, targeting, and positioning models of the marketing along with potential marketing strategies.

Alba Beds limited is a private limited company with share capital. It was established in the year 2000 in London. It is the company sells different kinds of beds, mattresses and other furniture items which are associated with the bedroom. Alba Bed makes the usage of high-quality wood, which is selected and processed to attain the required structure. The company also makes the usage of environment-friendly surface treatment to achieve higher finishing and durability (albabeds.co.uk, 2020).

3.0 Discussion

3.1 International Market Selection Procedure

Internationalization is the process wherein the enterprises enter a new market and try to sustain their position in that competitive market. There are five different phases by which Alba Bed Company can enter into a foreign market.

Phase 1: Identification of the nation: It is the most critical phase, which requires to be carefully selected while applying the objectives of international business expansion. In order to expand the market globally, Alba Bed Company should recognize the possible nation for business operation, which is subject to overview of the market (Madhok and Keyhani, 2012).

Phase 2: Initial screening: In the second phase, initial screening is essential for Alba Bed Company in order to provide weights in the market.

Phase 3: Thorough screening: In the third phase, Alba Bed Company should conduct thorough screening in order to get feasible for entering into the new foreign market. Hence, it is vital that thorough information about the market where it is going to enter is derived by Alba Bed Company, so that marketing decision made by the company becomes effective.

Phase 4: Final decision: According to Shi & et. al., (2014), in this phase Alba Bed Company requires to select the nations for international business expansion. This phase highpoints the positions and market share of the possible competitors which also operate in the similar industry of Alba Bed Company. In such situation, Alba Bed Company determines its position in the market.

Phase 5: Direct experience: According to De Beule & et. al. (2014), Alba Bed Company requires to concentrate on the target market in order to understand the trends of customers regarding furniture products. It requires understanding the culture and business practices of the nation where it is going to operate through direct experience. This phase is characterized by obtaining necessary information regarding the target market.

3.2 STP Models of Marketing in New Market Entry

Segmentation: The application of segmentation has made the company acknowledge the needs of the segmented people. Alba Bed Company has segmented its customers in various forms, which include demographics, psychographics, lifestyles, and behavior. The usage of the segmentation could help the company to design different marketing messages as per the segments to attain benefits (Hutchinson, Fleck, and Lloyd-Reason, 2009).

Target market: Targeting is the process of deciding to identify which of the segment is attractive and practical. Alba Bed limited should target its market and identify the customers. It is, however, essential for the company to review the size, profitability, and ease of reaching while acknowledging the target customers. Alba Bed Company must acknowledge the attractiveness and growth of the parts (Madhok and Keyhani, 2012).

Positioning: The Positioning of products is a strategic process that includes the product’s marketing to establish an image in the consumer’s mind. Alba Bed Company has applied mono-segment positioning, and adaptive positioning wherein mono-segment positioning emphasizes single customer segments, which are conscious of costs. Moreover, adaptive positioning is also considered by the company, which repositions the products and services to review the preferences of clients (van Tulder, 2015).

3.3. Analysis and the Process of Market Entry

According to Hilmersson & Jansson (2012), there are diverse international market entry modes accessible for companies in order to enter into a foreign market. Furthermore, there are different ways based on which Alba Bed Company can enter into the international market. Nevertheless, it is also evident that strategy of one market performs differently in all markets of the international environment. Piercy (2014) stated that direct exporting can be the most suitable approach in one market to enter, where in another market a company may require to create a joint venture. Therefore, some vital market entry strategies accessible to Alba Bed Company has been discussed.

3.3.1 Direct Exporting

It can be stated that direct exporting is a strategy where organizational products are sold directly in the target market. In this strategy, many organizations use agents or distributors in order to penetrate further into a market. Furthermore, agents and distributors frequently perform closely with the organization in applying the strategies. They become the representatives of the organization. The overall method of direct exporting is a low risk option for the company from the viewpoint of financial exposure where strong investment restrictions can be evaded (Wei, Zheng, Liu & Lu, 2014).

3.3.2 Franchising

According to Ashourizadeh & et. al., (2014), franchising is a kind of expansion approach supporting at quick international business expansion of organizations. This approach particularly effective for companies which has repeatable business framework and these frameworks are simply transferable to other market segments. As mentioned by Meyer & Estrin (2014), this strategy can give specific degree of independence where they can conduct bits business. The franchisee requires operating the business on the basis of the process along with the restrictions mentioned by Franchisor Company.

3.3.3 Partnering

According to Hutchinson, Fleck, and Lloyd-Reason (2009), partnering is also an important strategy while entering into international market. This strategy is particularly suitable in the nations where culture, comprising the business and social culture is different than the domestic market. By developing partnership, the company can obtain the advantages of accessing the customers. This indicates the organization can alleviate the risk and possible mistakes in the new market. Nevertheless, this strategy can result in conflicts of interests, indicating that certain business decisions or activities can be inappropriate or unfavorable for the organization.

Hence, based on this, in order to enter into international market Alba Bed Company can use the direct exporting strategy. This strategy can provide the advantage of greater control over the business within short time. Furthermore, considering the nature of business of Alba Bed Company exporting can be suitable choice. This method is simple and in this way, Alba Bed Company can easily establish its business in foreign market by developing its own subsidiaries in the importing nation, after studying the market and obtaining sufficient knowledge (Tallott and Hilliard, 2016).

3.4 Potential Marketing Strategies

3.4.1 7ps marketing strategy

Product: Alba bed sells bedroom furniture and is made up of processed and high-quality woods. The comfort, design, and style of the furniture also attract the customers. However, the company needs to include various other benefits of purchasing the products, which include after-sales services, warranties, etc. (Ngo and Igwe, 2019).

Price: Alba bed limited sells its products at reasonable prices. It changes higher rates when it sells the products online as charges of delivery are added to the product’s price. However, the organization needs to apply discounts and allowance for a short period to attract a larger number of customers. The company should also introduce new products and sell them at lower prices as compared to competitors.

Place: Alba bed makes the usage of two channels for marketing, which include in-store and online. The company sells its products to customers using online selling platforms like Amazon and through its websites. Moreover, it sells its products to wholesalers through physical channels. However, the company should focus on selling large amounts of its products directly to retailers using retail selling to attract a large number of customers and increase sales (Collection.us, 2020).

Promotions: Alba Bed Company makes the usage of both traditional and modern social media platforms to advertise its products. However, it is recommended that the company should hire bloggers and influencers to promote the company’s product and enhance awareness of the brand.

People: The employees working in the company plays a significant role in marketing and deals with various issues of the company. However, it is stated that Alba bed should train its salesperson and other employees to deliver value services to its targeted customers.

Process: Alba bed possesses an online delivery process wherein it delivers the products to its customers as per the orders provided through online medium. However, it is suggested that the company should further innovate its process and find ways to sell its products at lower prices (Ngo and Igwe, 2019).

Physical evidence: The Company sells its products through online websites that are user-friendly and possess a high-quality image for customers. However, it is suggested that the Alba bed company should also set-up a retail showroom to provide a comfortable ambiance to its customers.

3.4.2 7Cs Marketing strategy

Credibility: Alba Bed Company can possess higher reliability as it has its presence in an online platform. However, the company should explain all services and products in detail to attract the attention of a larger number of customers who make a business decision after researching the feedbacks on the company’s websites.

Cost-effective: The company needs to be profitable and sell its products at minimum prices. This will help the company to attain success and profitability.

Customers: since customers are the vital elements of the company, so Alba Bed Company should provide quality products and services to its company to attain an increase reputation and attain brand image.

Connections: It is stated that the company should make effective communication and connection with its customers through different social platforms to stay in touch with them.

Close: The providing of the services to its customers for 24-7 can help the customers to stay connected with the company and even enhance the satisfaction of the customers.

Customer services: Although the Alba bed company provides excellent customer services, the company could attain higher recognition if it offers rewards to its best customers (van Tulder, 2015).

Cash: The creation of the online platform has assisted the Alba bed company in making a way to generate additional revenues and will help in tackling with international targeted customers.

3.4.3 Porter’s Generic Strategy

In order to obtain success in the market, Alba Bed Company requires obtaining competitive advantage. According to Porter, there are three strategies, an organization can use in a foreign market, which are cost leadership, differentiation and focus. In cost leadership strategy, an organization reduces the cost of the business and in this way can produce products with low cost and give customers with inexpensive products than other competitors. In this way the organization can enhance the market share through providing products with low prices. Differentiation strategy comprises making the products and services different from the competitors by making it much attractive. On the other hand, focus strategy comprises putting emphasis on specific niche markets and satisfying the exclusive requirements of the customers by understanding the market dynamics.

In order to penetrate into a foreign market, Alba Bed Company can apply the cost leadership strategy at the initial phase. Furthermore, the company also requires concentrating on developing quality products. Since there are many players which develop furniture like beds, concentrating on cost leadership can give considerable competitive benefit for the company in new market. It will inspire the interest of the customers regarding the products of the company. Alba Bed Company should also perform closely with the distributors and agents in order to know more about the market and to obtain competitive edge.

4.0 Conclusion

Alba Bed Ltd is efficient in strengthening its employee base and patent right, where the company focuses on diversify products to enter a new market. The company also has an attitude for market entry, and it is useful for the organization to open a new market and target the new audiences and different customers segment to enhance the organizational sales volume. Though the products of Alba Bed Ltd are sufficient to attract the viewers, the company needs to review its pricing details and set affordable prices for strengthening its customer base. The organization Alba Bed Ltd needs to invest an adequate amount of resources in promotional activities, which will provide scope to the firm to expand its business and improve branding in the market. In addition to this, the company needs to focus on social media marketing and advertisement campaign, which are useful to share information related to the products with different social communities across the globe where the firm can have a strong presence across the international markets through promotional activities. Alba Bed Ltd also needs to hire efficient employees who can manage the production and distribution of the products, as well as the organization, also needs to strengthen their distribution network across the international markets for successful market entry activities.

References

Ashourizadeh, S. Rezaei, S., Schott, T., & Vang, J., 2014. Entrepreneurs’ human and social capital: direct and reinforcing benefits for export. International Journal of Entrepreneurship and Small Business, 21(2), pp.246-267.

De Beule, F. Elia, S. and Piscitello, L., 2014. Entry and access to competencies abroad: Emerging market firms versus advanced market firms. Journal of International Management, 20(2), pp.137-152.

Estrin, S., Nielsen, B.B. and Nielsen, S., 2017. Emerging market multinational companies and internationalization: The role of home country urbanization. Journal of International Management, 23(3), pp.326-339.

Hilmersson, M. & Jansson, H., 2012. Reducing uncertainty in the emerging market entry process: on the relationship among international experiential knowledge, institutional distance, and uncertainty. Journal of International Marketing, 20(4), pp.96-110.

Hutchinson, K., Fleck, E. and Lloyd-Reason, L., 2009. An investigation into the initial barriers to internationalization: Evidence from small UK retailers. Journal of Small Business and Enterprise Development, 16(4), pp.544-568.

Madhok, A. and Keyhani, M., 2012. “Acquisitions as entrepreneurship: asymmetries, opportunities, and the internationalization of multinationals from emerging economies”, Global Strategy Journal, Vol. 2 No. 1, pp. 26-40.

Ngo, H.T. and Igwe, P.A., 2019. Internationalization of Firms and Entrepreneur’s Motivations: A Review and Research Agenda. Societal Entrepreneurship and Competitiveness, Emerald Publishing Limited, pp.29-46.

Piercy, N., 2014. Export Strategy: Markets and Competition. Routledge.

Shi, W. S. Sun, S. L., Pinkham, B. C., & Peng, M. W., 2014. Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China. Journal of International Business Studies, 45(3), pp.338-362.

Tallott, M. and Hilliard, R., 2016. Developing dynamic capabilities for learning and internationalization: A case study of diversification in an SME. Baltic Journal of Management, 11(3), pp.328-347.

van Tulder, R.., 2015. “Getting all motives right: a holistic approach to internationalization motives of companies”, Multinational Business Review, Vol. 23 No. 1.

Wei, Y. Zheng, N. Liu, X. & Lu, J., 2014. Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms. International Business Review, 23(2), pp.356-370.

Wu, J. & et.al., 2016. Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development. Journal of World Business, 51(2), pp.251-263.

Continue your exploration of Strategic Marketing Planning for International Expansion with our related content.