Marketing Plan: Lintbells
Introduction
Lintbells is a medium-sized private limited company that specialises in the production of premium and high-quality pet supplements. The firm has been in operation since 2006 in the UK and has established a number of outlets across the country. Additionally, the firm has ventured into 15 countries around the world. One of the factors that have contributed to the firms’ success relates to a strong workforce. The firm has a workforce of approximately 46 employees (Lintbells 2017). The firm is focused on attaining competitiveness in the global pet care market by developing and introducing premium and high-quality pet care products into the market. In addition to the production of high-quality products, the firm has also entrenched market expansion as one of its strategic management approaches. Currently, Lintbells has employed exporting as its international market entry strategy.
The firm’s decision to adopt exporting as its international market entry strategy is informed by the fact exporting is a cost-effective market entry strategy. Amongst the international markets that the firm targets to venture into entails the pet care market in Southeast Asia. The firm’s decision to venture into the Southeast Asia pet care market arose from the high market potential and the high rate of market acceptability for products originating from the UK amongst Asian consumers (Future Market Insight 2017). One of the countries that the firm should target includes Singapore. However, in entering the Singaporean pet care market, the firm should understand the prevailing market situation in order to formulate effective marketing strategies.
Situational analysis
Businesses are influenced by the prevailing macro-environmental conditions. Thus, to achieve market success, it is imperative for businesses to understand the macro environmental conditions (Grunig 2016). In the course of its entry into the Singaporean market, Lintbells should employ the PESTLE model in assessing the political, economic, legal, social, technological, and environmental factors that are likely to affect its market entry as evaluated herein.
Political and legal environment
Singapore is characterised by a high level of political stability in spite of the country being characterised by an ethnically mixed population. The country’s political stability is a critical determinant in Lintbells' market entry into Singapore. This arises from the fact that the firm will be able to operate in the country without facing political risk. According to a World Bank Report, Singapore is one of the best cities to conduct business in the world because of the country’s political stability (Monetary Authority of Singapore 2017). In an effort to stimulate foreign investment, Singapore has significantly relaxed laws governing the entry of foreign firms into the country, which is in line with its market openness policy. This aspect will enhance the ease with which Lintbells established operations in Singapore.
Economic environment
Singapore’s attractiveness is also characterised by the fact that it has adopted an open economic system. This aspect fosters the country’s trade with other countries. The country’s open-oriented trade system will play a fundamental role in fostering the country’s economic development by facilitating the import and export of goods and services. In addition to this aspect, the country is also characterised by are remarkable rate of economic growth. According to the UK Department of International Trade (2017), the country has a per capita income of approximately $55,000, which is relatively high. Thus, consumers in Singapore are characterised by a relatively high purchasing power compared to other Organisation for Economic Cooperation and Development countries. The country is projected to experience a growth rate of approximately 1-3% between 2014 and 2020 (Future Market Insight 2017). These aspects are likely to play a fundamental role in enhancing the likelihood of Lintbell generating profit from the Singaporean pet care market.
Social environment
Singapore is experiencing a remarkable change with reference to consumer lifestyle. One of the factors that have contributed to the change in consumer lifestyle entails an increase in the consumers’ disposable income. Additionally, consumers in Singapore are increasingly accepting pets. This trend is not only limited amongst the high-income groups but it is also evident amongst the middle-income consumers. The growth in the acceptability of pets will play a fundamental role in increasing the market size for pet care products. Pet owners are also developing a ‘humanised’ approach to caring for their pets. This aspect is evidenced by the increase in the rate at which pet owners are providing pets with high-quality, healthy, and nutritious foods. These aspects present a feasible market opportunity that Lintbells should consider exploiting (Future Market Insight 2017).
Technological environment
Consumers in Singapore have integrated Information Communication Technology [ICT] as one of the key aspects of their consumption process. This is evidenced by the high rate at which consumers have entrenched online purchasing behaviour. One of the factors that have led to the emergence of this trend entails the high rate of internet penetration in Singapore (Clark & Hakim 2017). Thus, in entering the Singaporean pet care industry, Lintbells should consider entrenching online marketing techniques. Integration of technology will significantly increase Lintbells’ market reach in Singapore.
Cultural dimension
Lintbell’s success in the Singaporean market will be influenced by the prevailing cultural environment. To understand the country’s cultural environment, Lintbell should employ the Hofstede model as illustrated herein.
Marketing objectives
In the quest to enter the Singaporean market, the Lintbells should focus on achieving the following qualitative and quantitative marketing objectives.
Market entry, Segmenting, Targeting and Positioning
Market entry
According to Jones and Parry (2011), the choice of international market entry strategy determines the success with which a firm attains an optimal market position. During the initial phase of its market entry, Lintbell should consider employing an indirect export strategy. Under this strategy, the firm should enter into a contractual agreement with well-established Export Management Companies (EMC) and export agents (Lamb, Hair & McDaniel 2012). The benefits of integrating export agents and Export Management Companies as an entry strategy are underlined by the fact that the EMCs and export agents have adequate knowledge of the host country. Thus, the firm will be able to succeed in increasing the level of market penetration of its products (Gillespie & Hennessey 2011).
Targeting and Segmenting
In the quest to generate sufficient sales revenue, Lintbells should target pet owners from diverse social and economic backgrounds. Through this approach, the firm will increase the probability of maximising its sales revenue. Despite the fact that the firm largely focuses on the development of premium pet care products, the firm should not limit its products to the high-income customer group. On the contrary, the firm should ensure that even middle-income customers can access its products. The rationale for targeting high-income and middle-income customers is underlined by the fact that Singapore is experiencing an increase in the consumers’ disposable income. Thus, by broadening the target customers, the firm will be in a position to maximise its sales revenue (Kurtz & Boone 2009).
Positioning
Lintbell should focus on developing a strong market position within the Singaporean market. To achieve this goal, the firm should base its market position on the basis of its quality and diversity. Thus, the firm should focus on undertaking extensive research and development in order to develop pet care products that meet the target customers’ needs. Througs this approach, the firm will be able to increase the customers’ level of satisfaction. Investing in research and development will increase the level of acceptability of the firm’s products.
Marketing mix
In its international market entry, Lintbells should entrench a comprehensive marketing mix strategy. Some of the issues that the firm should take into consideration are discussed herein.
Product strategy
In its entry into the Singaporean market, Lintbells should consider making a choice between standardisation versus adaptation with regard to the development of its products. Saxena (2009) asserts that the choice between standardisation versus adaptation of products in the course of entering the international market is determined by the type of product and the prevailing dynamics in the international market. In its entry into the Singaporean pet care market, Lintbells should consider employing standardisation strategy. The rationale for employing this strategy arises from the high rate of market acceptability of products that originate from the UK across Southeast Asia. By employing standardisation strategy in developing its products, Lintbells will benefit significantly in penetrating the Singaporean market. Saxena (2009) asserts that ‘standardisation enables a business to provide appropriate volume with regard to the combination of price, quality, reliability, and delivery of products’ (p. 595).
Despite, employing the standardisation strategy, the firm should also consider entrenching the concept of a ‘built-in-flexibility strategy’ in the product development process (Morschett, Schramm-Klein & Zentes 2010). The built-in-flexibility strategy will enable the firm to customize its products to fit the prevailing market demand. One of the issues that the firm should consider in entrenching the built-in-flexibility strategy entails understanding the cultural aspects of Singaporeans with regard to pet care. Thus, the firm should undertake extensive market research to understand the demands of the local market.
Pricing strategy
Lintbells should employ a penetration pricing strategy in its entry into the target market. Thus, under this strategy, the firm should set the price of its products at a relatively lower point compared to its competitors in the host country (Morschett, Schramm-Klein & Zentes 2010). However, in employing the penetration pricing strategy, Lintbells should entrench the cost-pricing approach strategy. A cost-plus pricing strategy will enable the firm to set the price of its products at a point at which it will be able to cover the cost of its operation and at the same time generate profit (Sharma 2009).
Promotion strategy
Lintbells should employ an integrated marketing communication strategy (IMC), which is comprised of different marketing communication strategies amongst them advertising, sales promotion, and public relations (Lee & Carter 2012). In entrenching advertising as a marketing communication technique, the firm should consider employing different mediums such as print and broadcast mediums such as radio, magazines, and newspapers. On the other hand, online marketing communication mediums should be comprised of social media platforms and the company’s website. Application of the IMC strategy will enhance the effectiveness with which the firm creates adequate awareness of its pet care products to pet owners in Singapore.
Distribution strategy
The firm should develop a comprehensive distribution strategy that is comprised of direct and indirect distribution strategies. Under the direct distribution strategy, the firm should consider establishing outlets across Singapore. The benefit of establishing retail outlets in distributing its products is that the firm will safeguard the integrity of its products. This arises from the fact that the firm will be able to control the distribution of its products across Singapore. In spite of establishing retail outlets, the firm should also consider entering into distribution contracts with well-established retail outlets across Singapore. The rationale for adopting this strategy is that the firm will significantly improve the accessibility of its products among the target customers (Lacobucci 2014).
Control
In implementing the marketing plan, the firm should consider entrenching comprehensive monitoring and evaluation procedures. Amongst the aspects that the firm should consider are evaluated herein.
Reference List
Morschett, D, Schramm-Klein, H & Zentes, J 2010, Strategic international management; text and cases, Gabler, Weisbaden.
Lee, K & Carter, S 2012, Global marketing management; changes, new challenges, and strategies, Oxford University Press, Oxford.
Lintbells: About Lintbells 2017. [Online].
Sharma, B 2009, Accounting management; information for decisions, Global India Publications, India.
Clark, R & Hakim, S 2017, Cyber-physical security; protects critical infrastructure at the state and local level, Springer, Switzerland.
Gillespie, K & Hennessey, H 2011, Global marketing, Cengage Learning, Mason, Ohio.
Ritcher, T 2012, International marketing mix management; theoretical framework, contingency factors and empirical findings from world-markets, Logos, Berlin.
Kurtz, D & Boone, L 2009, Contemporary business 2009 update, Sage, New York.
Lacobucci, D 2014, MM4: Marketing management, South-Western Cengage, Mason, Ohio.
The Hofstede Center: Singapore 2017. [Online].
Lamb, C, Hair, J & McDaniel, C 2012, Essentials of marketing, South-
Western Cengage, Mason, Ohio.
Grunig, R 2016, Developing international strategies, Springer, New York.
Saxena, R 2009, Marketing management, Tata McGraw-Hill, New Delhi.
Future Market Insights: Southeast Asia pet care market to grow by CAGR of 6.8 % from 2014 to 2020, driven by pet humanization in the region 2017. [Online].
Monetary Authority of Singapore: Conducive pro-business environment 2017. [Online].
UK Department for International Trade: Overseas business risk, Singapore 2017. [Online].
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