56EEESssssituational analysis
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Nov 24, 2024
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Strategic Decision in The International Marketplace
Name
Course
Date
Contents
Executive summary
......................................................................................................................................
3
Introduction
.................................................................................................................................................
3
Company Profile
..........................................................................................................................................
4
Strategic Focus and plan
..............................................................................................................................
5
Mission
....................................................................................................................................................
5
Vision
.......................................................................................................................................................
5
Situational analysis-strategy
........................................................................................................................
5
External environment(PEST Analysis)
......................................................................................................
5
Competitive Analysis
...............................................................................................................................
8
Consumer analysis
...................................................................................................................................
8
Industrial strategic analysis
......................................................................................................................
9
Porter's Five Forces Model
........................................................................................................................
10
SWOT ANALYSES
....................................................................................................................................
13
SMART Goals
.............................................................................................................................................
16
Marketing strategy
.....................................................................................................................................
17
Marketing Mix
...........................................................................................................................................
18
Control and implementation
.....................................................................................................................
19
Projected Profit and Loss Statement ($)
....................................................................................................
22
References
.................................................................................................................................................
24
Executive summary
The purpose of this marketing plan is to conduct an analysis of the expansion of Focus Company
in Ireland. Focus aims to create an extensive hospitality chain in Ireland and the global market in
terms of large market share and economic growth. Some of the factors discussed includes
political,economic,technology and legal environment aspects. This particular plan offers a
comprehensive view on the competitive position of the firm and strategies that enables it to fit in
the food and beverage industry. To attain the reports objectives,SWOT analysis, PESTEL and
Porters five forces model was carried out (Kanter,Reyes & Corvalán,2017).The situational
analysis’s part described the marketing strategies needed to reach the smart objectives set by the
company. In addition, the report will examine control and implementation aspects and suggest a
concrete profit and loss statement account in order to understand the deliverable outcomes of all
the proposed goals and strategies. The marketing plan concludes by offering recommendations
such as how to affirm products quality to achieve competitive advantage in Ireland
Introduction
This particular marketing plan showcases how the firm will expand its business operations in
terms of its geographical coverage. It will outline the market strategies to attract prospective
customers by establishing its prices to generate more products and enhance successful business
endeavors in a competitive market domain (Vassallo et al 2018).By carrying out a detailed
marketing analysis utilizing several marketing frameworks. Focus Company can gain valuable
insights into its target market, competitive landscape, and overall marketing strategy. (Adeigbe et
al 2015).This will enable the company to incorporate more effective marketing campaigns,
improve customer satisfaction and loyalty, and ultimately achieve its business goals.
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Company Profile
Focus is a food and beverage company which operates in Ireland. Various entrepreneurs drive the
firm forward as a project to target children interested in food items and drinks. It works across
ten stores and employs at least 50 employees in all departments. There was an initial observation
that the client's choice is quite limited to other firms offering limited services, which is basically
at the lower end of the scale. This prompts startups of the firm to provide premium products.
Focus real strength lies in its partnerships with restaurants and other food joints to deliver the
products. There exists stiff competition in the food industry (Kraak et al 2016). Hence, Focus
plans to delve into various stores, using innovative aspects to counteract the existing situation.
Opening more units in Ireland with client satisfaction would be imperative to maintain an
advantage in the market.
Products
Scope-Country of Entry
Country-Ireland
City: Dublin
Location:Leinster
Strategic Focus and plan
Mission
The mission of Focus company is to offer phenomenal taste at affordable prices in a suitable
atmosphere environment.
Vision
The firm's vision is to create and inspire a healthier society by connecting individuals and kids to
real-world food and beverages. This will enhance the creation of client loyalty and meet their
needs and preferences.
Situational analysis-strategy
External environment(PEST Analysis)
Political
Economic
Irelands policy variables typically
directly impact the company's
activities and profitability margins.
Focus must abide by Ireland's stable
political and legal models. This
includes variables like accrued
benefits for workers, information
safety, copyrights and patent rights,
reduced regulations, firm protection
laws and taxation policies.
If the firm has to minimize the
Economic booms and slumps in
Ireland and other UK states can affect
the firm's bottom-line activities.
Although Focus Company is
expanding in various developed
locales (Kraak et al 2016).
Ireland is still prone to inflation,
increased interest rates, foreign
exchange changes and competitive
variables. Other factors revolved
political hazards, diversification in
states with low political instability
would be essential (Bennett et al.,
2020).
The company evaluate the current
political environment of Ireland before
expanding its businesses.
around government interventions
impacting economic performance and
improvement.
According to Bragg et al. (2018), a
low economy will be exposed to
exchange rate changes which are
hazardous to the Focus bottom line
hence the need to enforce hedging
frameworks.
The state's economic development,
education level and adequate skills are
factors that Focus will put into
consideration before investing in other
markets.
Ireland's education and skill set in the
workforce is tremendously growing.
Social
Technological
The social environment directly
adopts the existing business culture
and model of the marketing aspect.
It involves the client's conduct and
promoting institutions (Kraak et al
Advanced innovation factors have
evolved the way firms operate across
the globe. Focus will be able to reach
a wide range of customers worldwide,
attracting a larger customer base and
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2016).
Focus company must evaluate the
following
elements:
client
demographics,
power
structure,
community
culture,
perception,
attitudes, lifestyle and
leisure
preferences among the society
domain. In this case, Ireland has
middle-income
earners and a rising population
density.
In this case, the school-going children
would prefer to consume ready-to-
drink soft drinks. Most people spend
some disposable income on buying
food and beverages for their children.
Conversely, the decision-making
systems in the family, culture,
attitudes and health consciousness
should be evaluated. Some of the
parents who are decision-makers in
the family ensure that children will not
consume beverages since some are
bringing about minimal production
costs.
Focus should analyze the existing
technological diffusion and the speed
at which it affects Ireland's food and
beverage business (Boukid &
Castellari,2021). It will attain this
aspect by understanding the rival's
current innovation growth, operation
costs, and supply chain nature.
The other elements are product
offerings and the value chain. This
will boost the efficiency of
distributing the food and beverage
products to all stores across Ireland
believed to have health issues. These
perceptions might lead to decreased
sales.
Competitive Analysis
:
A competitive analysis is necessary to understand the competitive landscape of the food and
beverage industry. Conversely, this comprises pinpointing the key competitors of Focus
Company, evaluating their strengths and weaknesses, and identifying potential opportunities for
growth and differentiation. Some of the competitors include Bigstore, Drinkit, Greenworld and
Valueshop firms (Machado et al 2017).
Evaluating the company's digital presence, including its website, social media accounts, email
marketing campaigns, and online advertising efforts, can provide valuable insights into its
overall marketing strategy and effectiveness (Truman & Elliott,2019).
Consumer analysis
Comprehending consumers is essential to developing an effective marketing strategy (Gittelsohn,
Trude, & Kim,2017). This includes analyzing the motivations and needs of consumers, their
decision-making processes, and their perceptions of the products and brands of Focus Food and
Beverage Company. As seen, kids tend to love juices, and there is a need to invest in non-
alcoholic brands. Packaging is also crucial in attracting children (Jackson & Singh,2015).
Measuring the efficacy of marketing efforts is essential to evaluating the success of any
marketing strategy. This includes analyzing key performance indicators such as sales revenue,
customer acquisition and retention rates, and marketing campaigns' return on investment (ROI).
Industrial strategic analysis
It is imperative to understand that Focus company has implemented a strong global presence in
the food and drinks industry, attracting various competitors. Over the years, these rival firms
have enacted strategies to deal with Focus growing influencing Ireland (Kraak et al 2016). Being
one of the industry's players, Focus has accumulated extensive management expertise and a
significant advantage in customer recognition. It has successfully carved out a market niche and
utilizes modern marketing strategies (Nirino,Miglietta, & Salvi,2020).For example, there is
utmost need for Focus to apply effective ERP system that consolidates market data, enhancing
stakeholders like material suppliers, potential clients and workers to access information from a
central platform. By extracting customer feedback from their website, focus marketing
department can design strategies based on reliable and factual data (Wilson et al 2016).
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Value shop and drinkut are two notable competitors that have posed a problem to
Focus.Typically,the food and beverage industry is expected to grow in the future due to the
increasing global population, which currently stands at 7.7 billion people (Machado et al 2017).
As the population continues to grow steadily even in Ireland, so will the demand for food. there,
customer needs and demands will evolve alongside modern lifestyles, necessitating continuous
adaptation by market players to cater to the needs of the contemporary buyer.
Market share
It aims at offering over 1 million to the international non-alcoholic beverage industry. This has
made it have a large chunk of the market share (Nirino, Miglietta & Salvi,2020).
The international beverage industry was valued at approximately US$ 1.51 trillion in 2018, and it
is anticipated to increase at a CAGR rate of 3% to reach an estimated market application of
US$1.9 trillion by 2024 (Wood et al 2021).
Porter's Five Forces Model The threat of substitute products:
According to Kanter,Reyes,& Corvalán, (2017),there exist no close substitutes available for a
product, consumers are willing to pay any price. However, in the case of Focus , there are threats
from various homemade food products that are normally sold at lower prices. In addition,
concerns regarding the healthiness of toddler’s beverages have led health-conscious individuals
to seek alternative options (Nirino,Miglietta, & Salvi,2020).
Supplier's bargaining power: As a brand, Focus holds significant command and can exert its
influence over suppliers in the same industry especially in Ireland (Nguyen, 2017). This enables
focus to purchase products from producers at lower prices, thereby increasing its revenue. For
example, suppliers supply palm oil and has low bargaining power, enabling Focus to control the
price.
Buyer's bargaining power: The existing bargaining power of Focus clients customers is high
because of variables like low switching costs and the availability of substitute products from
brands like Valueshop (Khayat, 2015).By not responding to clients concerns and overall
feedback could lead to a mass exodus, negatively impacting the firm’s profitability ratio.
Barriers to entry: Entry barriers in the market include factors such as product differentiation,
government restrictions, increased capital needs and large economies of scale. Focus faces
drawbacks from entering new markets due to the lack of product differentiation, as their products
can be found in other companies like good food Ireland making it difficult to attract new
customers.
Competitive rivalry: In Ireland and other locales, the food and beverage industry are highly
competitive, which exposes Focus to intense rivalry (Johnson et al., 2013).To extend its
operations, Focus ought to continually innovate its marketing and manufacturing strategies to
meet the demands of modern customers. The loyalty of customers to the Nestle brand is an
advantage in this competitive landscape.
These three models help identify Nestle's market position. Porter's Five Forces Model reveals the
power dynamics in a competitive environment and external factors affecting firm’s development.
In as much as it offers key insights for management, it falls short in offering specific strategies to
overcome competition (Ogle et al 2017).Conversley, PESTLE model evaluates macro-
environmental factors affecting the organization but does not directly assess competitive
advantage. It assists management in understanding rules and policies related to the external
environment. Additionally, a SWOT analysis helps identify internal strengths that contribute to
the company's growth. These models collectively highlight the significance of Focus brand
recognition and its competitive position.
Comparing with global data
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To mitigate the bargaining power of buyers, focus must invest to provide products or services
with no close substitutes.Product differentiation plays a crucial role in this regard (Nguyen,
2017). Clear and accurate labeling that reflects product quality can help attract a larger customer
base.
SWOT ANALYSES
Conducting SWOT analyses will be vital in understanding Focus's business model. Based on
such prospects, the firm will capitalize on the benefits to enhance its resilience and improve
performance.
Strengths
Focus company provides premium food through its online and physical stores, which enhances
its competitive advantage (Vassallo et al 2018).
It targets the specific demography of people in society and, in this case, the kids. This improves
its brand loyalty by use of satisfactory management levels.
Focus possesses solid management in its collar as kind of its former investment banker and
software manager. This has enabled the firm to solve challenges and will prevent future expected
traditional start-up barriers (Carpenter et al., 2020).
It aims at partnering with other firms and enforcing logistic services. Its increased competitive
power and sophisticated partnerships reduce unfair play in the market from rivals.
It also has immense pricing power and offers high-quality food and beverages.
Weakness
Like many hospitality businesses, Focus struggle with employee turnover, staffing shortages, or
maintaining a skilled and motivated workforce. This can impact service quality, guest
satisfaction, and operational efficiency.
The company’s online reputation and presence can significantly impact its success. Negative
online reviews or social media mentions can harm the hotel's image and affect customer
perception. Managing online reputation effectively is crucial but can be challenging (Pitts et al
2018).
Additionality has an older property, it may face challenges related to maintaining and updating
the infrastructure, such as outdated facilities, plumbing or electrical issues, or the need for
extensive renovations (Nguyen, 2017). This could affect guest satisfaction and the hotel's overall
competitiveness.
Due to limited delivery partners and suburban areas and an increased number of restaurants,
Focus cannot extend its operations in those locales.
The firm also faces pricing barriers where clients prefer the cheapest costs. This minimizes brand
loyalty.
Opportunities
There exists a regular change in food habits and trends. There is also optimal awareness among
potential customers concerning healthy lifestyles, alternatives and takeaway choices.
It has fast pace development and robust marketing strategies. It enables the firm to cater to
client's needs, demands and preferences.
It attracts new clients and retains the old ones.
Focus has become one enterprise to deal with food delivery to kids hence maximum growth in
revenue generation. The firm will continue to expand its operations overseas since it can cater to children's needs.
Focus boasts a strong and widespread brand image across different regions. This global presence
has contributed to the company's continuous growth and increased revenue over the years (Pitts et
al 2018).
As the global food and beverage industry continues to expand, new startups introduce
innovative approaches to food production, requiring Focus to remain vigilant and adapt to stay
relevant in the market.
There are developing markets for Fresh food, kids drinks and kitchen cupboard across the
UK,US, India and Asia countries. Therefore, the company will diversify its logistics and supply
chain to reach many consumers. This will be actualized by use of opt for foreign direct
investment method. Franchising will be established and Focus will build joint ventures with
firms like Value shop.
Maximum use of brand portfolio, such as in the health sector, like introducing water and sugar-
free beverages for children's consumption (Bresciani,2017).
Threats
There is increased competition from firms dealing with substitute goods and services.
There is a potential change in client behavior and lifestyle patterns
Existing currency fluctuations
Unfriendly Ireland government policies in the market
Minimally skilled labor in the locale
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SMART Goals
SMART
Goals
Specific
To optimize the market share in the Ireland
food and beverage sector by 10% in the next
fiscal year
Measurable
To attain 6% growth rate in revenue in the
initial fiscal year to 7& increase in the next
year
Attainable
Grow and launch mew innovative products to
meet the ever-evolving client’s needs. There
is also need to extend distribution channels in
order to create awareness of the existence of
the product to diverse target group
Relevant
Properly align with increasing clint demand
for sustainable and healthy foods. This will
leverage Focus expertise in the industry
Time-bound
Finalize new product development and launch
within 4 months. Progress to be tracked 4
times per year to make sure that target growth
rate is being realized.
Marketing strategy
Focus will utilize various strategies in order to attain the smart objectives set
Focus has proactively adapted its marketing strategies to cater to the target audience needs and
preferences.Consequently,Focus management has enhanced the aspect of creating the firm’s own
niche in the social media market and successfully implemented digital marketing strategies
(Bresciani,2017).The firm has established business profiles on various social media channels and
utilized influencer marketing to promote its products and services (Street,2015).With
approximately 95 profiles across different platforms such as Facebook, TikTok, Instagram, and
Twitter.Hence,Focus has effectively engaged with the youth and teenagers, building trust and
maintaining a strong online reputation. This is all aimed at reaching the smart goals.
Enacting digital campaigns like caring campaigns
In the coming fiscal year, Focus needs to improve and install campaigns like Ceregrow.It will be
relaunched to target urban couples with children between the ages of 2-5 years. Recognizing the
significance Ireland parents place on their child's health and nutrition, Focus must efficiently
showcase how mothers are concerned about their child's nourishment (Bresciani,2017). The
brand indicates how such campaigns not only satisfies hunger but also provides the necessary
nutrients for the child's immunity, overall development, and nourishment.
Pricing Strategy
In as much as it possesses goods priced higher than retail brands and catering to diverse cultures
and demographics globally, Focus has successfully positioned itself as the world's largest food
production company in Ireland. It aims to continue establishing a price skimming strategy,
initially entering a specific market at a higher price and gradually reducing costs as
manufacturing and distribution cycles are established (Sudari et al 2019).By targeting the mass
market through segmentation and differentiation, Focus benefits from an affordable pricing
strategy, offering fair prices for product groups tailored to different cultures, demographics, and
geographic regions.
Brand Building and Equity
In this modern era having competitive business environment, selling a product is not enough.
Enterprise like Focus must establish themselves as brands that provide compelling reasons for
customers to puck them regularly. As stated by Bresciani (2017),It has undertaken various
initiatives to expand brand presence and visibility across different regions. A convenient model is
through franchise stores, which help enhance brand recognition and reach. Clearly, Focus
focuses on ensuring shelf availability of its products by maximizing production cycles, lessening
distribution channels, and raising the level production and distribution units in Ireland.
Marketing Mix
Existing products
New products
Existing markets
Use of effective supply chain
management
efficient advertisement
Rival
firms
acquisition
strategies
Research and development
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Acquisition of rival firms
Strategic price decrease
programs
Inclusivity and rapport with
existing
market
control
system sand leaders
New markets
Extending its operations to
other geographical segments
Intensive market research and
growth
Partnerships, franchising and
licensing of companies that
are locally operating
Control and implementation
This will be used to improve the company by acquiring feedback from individuals and
prioritizing reducing the negative concerns raised for better future outcomes.
Revenue Growth
Outcome: The results include the rise in generated revenue rate by Focus
KPI: Year-over-year percentage growth in revenue. Criteria: Main criteria to be used revolves around setting a target growth rate based on Ireland
market environment and historical performance.
Profit Margin
Outcome: There has been reports on increased profitability ratio by Focus activities from the
sales volume recorded.
KPI: Gross profit margin and net profit margin. Gross profit margin=total revenue-cost of goods sold*100
Total revenue
Criteria: Proper comparison of different profit margins with industry benchmarks and set targets
for improvement.
Market Share
Outcome: Extension of Focus market share in key product categories and geographic regions. KPI: Market share percentage in targeted markets and segments. Criteria: tracking and comparing the existing market share data with rivals like and evaluate the
success of market penetration strategies (Telukdarie et al 2020).
Customer Satisfaction
Outcome: increased client loyalty, satisfaction and retain.
KPI: some of the key performance indicators to address this includes; Customer satisfaction
surveys, Net Promoter Score (NPS), customer retention rate. Criteria: Day to day monitoring of customer surveys to measure satisfaction levels and track
customer retention rates. Set targets for NPS improvement. After acquiring client feedback, there
will be a weekly review to mitigate risks and improve the marketing outcomes
(Bresciani,2017).Thus, it will be taken to overcome negative results. Conversely, the workers'
performance levels will be reviewed after 2 months to establish their key performance indicators.
The assessment will also be based on a reward system to motivate them
Product Innovation and Development
Outcome: Focus company has launched quality new products and innovations. KPI: Number of new product introductions, revenue contribution from new products. Criteria: Tracking the quantity of new products launching the local market, monitor their performance in
the market, and assess their impact on revenue. The firm has already established a website
whereby any client who needs to offer a review; can duly register and do so. Additionally, every
client will receive feedback from the bill section after purchasing food or drinks (Street 2015).
Sustainability and Environmental Impact
Outcome: lowering Focus environmental footprint and conformance to sustainability objectives.
KPI: less emissions of gases, energy conversion rates, water usage ratios. These are aimed at
providing data to conserve the ecology
Criteria: Set specific reduction targets aligned with Focus sustainability commitments and
monitor progress regularly.
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Projected Profit and Loss Statement ($) PROFIT AND LOSS STATEMENT FOR FOCUS COMPANY IN IRELAND,
in USD
Yr 1
Yr2
Period 1
Period 2
Period 3
Period 4
Totals
Sales Revenue
Fresh food
250,000
300,000
242,500
351000
1143500
Frozen food
250,000
300,000
429,500
446,000
1425500
Kitchen cupboard
250,000
265,000
317,500
466000
1298500
Drinks
250,400
275,000
317,500
406,000
1248900
Total Sales Revenue [J]
1,000,400
1140000
1307000
1669000
5116400
Cost of Sales
Fresh food
110,000
116,000
121,150
198,900
546050
Frozen food
120,000
145,800
150976
162,120
578896
Kitchen cupboard
90,000
65,600
78,220
90,629
324449
Drinks
5,000
1,800
23,976
25,894
56670
Entertainment
30,000
22,000
29,970
32,368
114,338
Total Cost of Sales [K]
355,000
351,200
404,292
509,911
1620403
Gross Profit [L = J-K]
645400
788800
902708
1159089
3495997
Headquarters Operating Expenses
Supply Chain 14300
9,600
9,510
8,236
41646
Internet
2,000
4,200
6,110
6,333
18,643
Others
6,050
6,120
7,777
7,234
27,181
Total IT Expenses [M]
22,350
19920
23,397
21,803
87,470
Archetype
9,000
11,500
11,025
11,576
43,101
copyrights
19,000
10,000
22,050
23,153
74203
Wages and salaries
20,000
36,570
27,563
28,941
113,074
Total Research & Development Expenses [N]
48,000
58,070
60,638
63,670
230378
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Wages and salaries
20,000
30,000
35,000
27,288
112288
internet Services
10,000
5,000
8,050
6,000
29,050
Raw materials
17,000
18,000
20,000
28,700
83700
Children & adult recreation
3,000
3,600
1000
2,315
9915
Rent
15,000
20,000
21,000
20,425
76425
Phone
2,500
4,800
4,121
4,234
15655
Total General & Administrative Expenses [O]
67,500
81400
89171
68537
327033
Total Operating Expenses [P = M+N+O]
137,850
159390
173206
154010
566151
Net profit
507550
629410
729502
1005079
2929846
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