PESTLE Analysis of Poland for International Expansion

The International marketing can be essentially described as a step which is generally undertaken by an enterprise in order to extend the overall operations around the globe. In regard to this, the International marketing as a strategy can be defined as the overall strategy adopted by the enterprise to expand in the market and to be able to establish the operations successfully. The previous assessment identified the suitability of the country of Poland for any suitable opportunity which is required to be catered by an enterprise in order to expand their operations to the country and to be successfully able to gain a larger consumer base (Brown, Crosno and Tong, 2019). In line with this, the firm which has been chosen for the analysis can be stated to be the Marshfield Bakery. Although the Marshfield Bakery is a SME, it has adequate resources and considerable experience which would allow it to expand the overall operations in the long run and additionally, give them an opportunity to perform well. In line with this, it is important to note that the study will be entirely focused on the marketing strategy of the Marshfield bakery and the manner in which the enterprise will be able to engage in long term success. In line with this, the primary focus of the report lies on focusing on the business opportunity which lies best suitable for the country and based on this a marketing strategy for the enterprise will be provided. The control strategy and the global challenges which the firm will be facing will be mentioned.

The company which has been adopted for the analysis is the Marshfield Bakery. The Bakery can be taken to be an innovative enterprise with a team which is dedicated towards growing the overall business operations and will be responsible for looking out for the improvement in the different operations (Swmas.co.uk ,2019).   With the support in identification and the development of the firm`s potential, a strong platform would be essentially required for the firm in order to be able to come up with adequate strategies which will enable the enterprise to achieve all its goals and be able to gain a competitive positioning in the environment (Swmas.co.uk ,2019).  The enterprise has 45 employees associated with the firm with a turnover of $2 million recorded in 2018 (Swmas.co.uk ,2019).   Additionally, the bakery is located in Dyrham in Wiltshire and additionally involved in the Food and Drink segment (Swmas.co.uk ,2019).   

Global Marketing Strategy for Marshfield Bakery in Poland

The SOSTAC Model is a planning model which assists in underlining the basic overall strategy which is required to be adopted by the various enterprises in order to develop a marketing strategy which would be helping in marketing excellence. The model designed by PR Smith and was developed in 1990s. The SOSTAC for the enterprise is as follows:

• Situation
• Objectives
• Strategy
• Tactics
• Action
• Control

Justification of the Opportunity for chosen business with the help of the Porters Five forces

In order to establish the operations of Marshfield in Poland, it is essential to ensure that the firm is being able to understand the scenario which the country is undergoing. In consideration with this, it is integral to understand that, the choice of the Low Fat cereal Bars will be most appropriate for the enterprise (Chitty,  D’Alessandro and Gray, 2019).  This is because as the business scenario has been changing to a great extent and the various individuals present in the country have shifted their health preferences, the product which would be the most appropriate choice for Marshfield in Poland will be the low fat cereal bars. Hence, in consideration to this, the given section will build on the PEST analysis and the Porters five forces of the Bakery Industry in Poland to determine the appropriate strategy which is required to be adopted by the firm. Additionally, at present the Marshfield receives a large number of orders and it has to export its products to the firms present in Poland. Hence, in line with this, as the company already has a substantial market base as present in Poland, this opportunity would allow them to engage in considerate business operations. Moreover, as the cultures of Poland and the United Kingdom can be considered to be similar to one another, this would then lead to better business operations and lead to the long term success.

Political

In regard to this, it becomes critically important to note that as the bakery is functioning in the Poland, it will be critically affected by the Brexit. The British Government decided to withdraw from the European Union and with relation to this; it becomes difficult for the different enterprises to manage the different operations of the business (Deepak and Jeyakumar, 2019).  Additionally, according to Ishtm.ac.uk (2019), the Sugar Tax is a major concern for the various enterprises and with consideration to this the Marshfield Bakery will be critically affected by the rise in sugar prices as it acts as a major ingredient in the given domain.

Porter’s Five Forces Analysis of the Bakery Industry in Poland

The economic factors which are required to be considered in the case of the Bakery Industry can be referred to as the state of the economy, the economic cycle and various interest rates which are prevalent in the business environment. In the case of the Bakery Industry, it can be mentioned that the economic factors which impact the operations of the Marshfield Bakery can be understood to be the Tax policies. As mentioned earlier, the Sugar Tax policies have been introduced and hence in regard of this the cost of doing business would increase to a great extent (Ellram and Murfield, 2019). In addition to this, the factors like high inflation rate, lower employment levels and a fluctuation in the income levels of the various individuals will also impact the sales of the enterprise.

In regard to the bakery industry, the social factors which have the overall capability to impact the different operations of the enterprise can be mentioned to be the popularity of the low fat foods and bars (Haider et al., 2019). The low fat foods form a critical part of the baking industry and in relation to this, it is integral for the business to see to it that it comes up with adequate substitutes which will serve the purpose of operations.  Additionally, the attitude of the target audience has been changing and the different people now prefer to have healthy meals instead of the packed food products. Hence, in consideration of this, the operations of the bakery might be affected.

The bakery would be required to utilize the Technology in the different day to day operations with the help of which it will be able to improve the efficiency of the various operations (Lehtinen,  Aaltonen and Rajala, 2019). In consideration with this, the Information security will also impact the efficiency of the business enterprises. In addition to this, it is critical for the enterprise to see to it that they are able to adopt technology accordingly.

The Porters Five forces can be taken to be an effective tool which can be made use of by the enterprise in order to understand the key factors which will help in operating the business. The Porters five forces is a strategic management tool with the help of which the business can get an examination of the various combating factors and in association with this, form strategies to deal with the same. The various Industrial factors which will impact the operations of the firm are as follows:

1. Threat of Substitutes
2. Threat of Rivalry
3. Threat of the New Entrants
4. Power of the Buyers
5. The power of the Suppliers

The threat of the Substitutes can be understood to be the substitutes which exist in the market and can act as the indirect competitor of the enterprise. Hence, in regard to the Marshfield bakery, it can be assessed that there are various substitutes which exist for the business and these can be taken to be the Breakfast cereals and the other rice as well as the fruit diets which the different individuals like to intake in order to avoid the sweet baked food (Lehtinen, Aaltonen and Rajala, 2019). In addition to this, the Bakeries present in the Poland generally tend to rely on the price and the convenience factors for their success. Hence, in such a scenario, the threat of the substitutes can be considered to be Moderate in nature.

The bakery industry in the Poland is highly diversified and there exists a presence of a large number of players in the bakery industry. The top four companies of the Industry have only 11.7% of the market. The industry is mostly characterized by the small bakeries (Manual, 2019). However, currently, the focus has been on the consolidation of the market and the economies of scale. The different bakeries tend to compete on the quality, price, differentiation as well as the key relationships which they have with the various suppliers.

The threat of new entrants can be stated to be considerably high as the barriers to entry are considered to be very low. In regard to this, it is integral to understand that although the economies of scale are beneficial but not necessarily required for the success of the industry. The small businesses which are present can enter the business environment and be able to attain success with the help of the differentiation techniques (Papadas et al., 2019). In regard to this, it is critical to understand that the distribution channels need to involve retail outlets and in regard to this, the business is comfortable for the new entrants.

The buyers who are present in the bakery industry generally tend to involve the various supermarkets, grocery stores, the hotel chains and the different convenience stores. The power of the buyers can be considered  to be considerably high because they have an access to the different small bakeries who want to find the outlets for the products. Hence, the buyers are easily able to command the volume discounts and the lower prices (Sahaf, 2019).  

The power of the suppliers can be taken to be very low as they do not possess negotiating power in the bakery business and due to the fact that the well developed markets are present in the industry and the nature of the products which are being sold are commoditized. Additionally even the different bakery firms have an access to different suppliers which further lowers their overall power (Schiavone and Simoni, 2019). The bakeries are generally affected by the price swings and the raw inputs and the other supply as well as the demand determinants.

McKinsey 7S

 

Figure 1: The McKinsey 7s

(Source: MANUAL, 2019).

In order to be able to successfully examine the manner in which an enterprise will be able to survive in the long run, the analysis of its internal environment is crucial. In consideration to this, the McKinsey 7s model serves as a wholesome model which thereby assists in understanding the dynamic details of an enterprise. It helps to examine whether the enterprise will be successfully able to fulfill a long term objective or not. Hence, in consideration with this, the given section will examine five of the most crucial S’s which Marshfield possesses in order to take the opportunity to expand further in Poland.

1. Systems: The systems can be essentially defined as the processes as adopted by the enterprise and discuss the manner in which the daily activities can be carried out successfully. In consideration of this it can be essentially mentioned that, the firm will be required to enhance its daily activities and operations in case it plans to expand to Poland (Deepak and Jeyakumar, 2019) . In line with this, although the current systems of Marshfield are well refined, they need to be reviewed for expansion.
2. Skills: The skills can be mentioned to be the ability of the various employees to perform well.  In addition to this, the skills also refer to the capabilities and the competences of the staff. In association to this, it can be mentioned that Marshfield Bakery has a well set and trained staff in consideration to which it is essential to ensure that they can be trained from expansion (Ellram and Murfield, 2019). They are trained in baking, cooking and adhering to customer needs.
3. Staff : The staff aspect refers to the employees of the firm and in consideration with this, it can be essentially mentioned that, Marshfield Bakery has a talented workforce and the enterprise management engages in effective motivation programs to ensure that it is being able to train these staff members adequately.
4. Style: The style can be referred to as the top level managers and their management style (Ellram and Murfield, 2019). The managers of Marshfield believe in transformational leadership style which tends to assist the enterprise in the times of need and allows them to engage in the successful implementation of change and related aspects.
5. Shared values: The shared values can be essentially described as the core aspect of the model. These refer to the enterprise culture and the various norms and standards which influence the behavior of the employees. The different managers are greatly guided by the thought procedure of equality and it is based on this thought procedure that they are essentially able to abide by the norms and treat all employees equally (MANUAL, 2019).

Hence, through this analysis, it was understood that, the enterprise has a positive work environment and thoughtful management style.

Implications from the analysis

Therefore, it can be understood that as the entrance in the industry is rather easy, it needs to be considered very integral for the businesses present like the Marshfield bakery to see to it that they are being able to provide differentiated offerings with the help of which the firm will be able to attain success (Varadarajan, 2019). Additionally, the Marshfield would also be required to see to it that t is able to attract large buyers for itself with the help of which the enterprise will be able to ensure a consistent source of income and in line with this, will be able to engage in a successful competitive positioning.  The main product which the Marshfield’s would be required to in introduce can be mentioned to be the Low fat cereal bars which would be an appropriate product which could be introduced in the Poland market.

The marketing objectives which are essentially set down for the product can be stated to be as follows:

1. To sell 100000 bars within the next one year in Poland.
2. To earn a revenue of $300000 in the coming 6 months
3. To increase the market share by 20% in the coming 2 years

The reason why the given set of marketing strategies have been selected for the firm can be mentioned to be because, the firm will be required to take adequate advantage of the fact that it has a suitable target market present in the country and hence, the numbers can turn out be realistic in nature. From the given analysis, it can also be stated that, in order to make the enterprise better, these steps have to be adopted accordingly.

As per the Ansoff set of strategies, the market entry strategy which is being followed by the Marshfield Bakery can be mentioned to be the Market development strategy. According to the Market development strategy, the different enterprises tend to expand into other operations into other countries and based on this, it would be largely appropriate for the enterprise to apply the Market development strategy which would allow them to extend their operations and be successful in the long run. In line with this, it also becomes critical to verify that,  the enterprise will be able to expand in the other country in case it has adequate opportunities and resources to perform well. In line with this, by following the Marketing strategy of Market development, the enterprise will be able to present a similar line of products to the country of their choice (Haider et al., 2019). Another alternative which is available with the enterprise can be mentioned to be the Diversification strategy. In this scenario, it becomes essential to understand that, in order to engage in long term success it will become important for the enterprise to come up with a strategy which will allow the enterprise to earn well. Hence, in consideration of this, the diversification strategy will be useful for the firm to undertake this new bar to Poland. From these options, it becomes important to understand that, the Marshfield Bakery is exposed to a large number of operations and in such a case, it may choose to follow the Market Development strategy or alternatively it may choose a strategy relating to the Diversification strategy.

Marketing strategies can be described as those strategies which are appropriate to help an enterprise to establish its product line. The different components of the marketing strategy which have been adopted by the enterprise can be stated to be as follows:

The market segmentation will has been done on the basis of the age and the psychological characteristics. In this segmentation time the following target markets of the firm have been identified for the firm:

1. Young college students: The young college students often like to go on a rigorous diet and based on this they often prefer to eat healthy. For this reason, it becomes necessary for the firm to target these customers as targeting these customers will enable them to secure a sound market positioning and thereby serve as a useful customer base (Slimane et al., 2019).
2. Working professionals: The working professionals often spend a stressful lifestyle and in regard to this, it becomes critically important for them to maintain a healthy diet. Hence, targeting the working professionals would be a useful tactic which will essentially be adopted by the firm in order to see to it that the enterprise is being able to attain long term success.
3. Health conscious professionals: Various individuals can be considered to be very health conscious in nature and like to maintain a healthy diet. In consideration with this, it becomes important for them to ensure that they are being able to meet with the needs of their daily calorie count and this low fat cereal bar would be appropriate for them (Varadarajan, 2019).
4. Athletes: Athletes have to be under a strict diet in order to ensure that they are being able to meet with their daily diet requirement and in consideration to this, it is critical for the enterprise to target the athletes to see to it that they are being able to increase their sales.

The Five Ps of marketing acts as a comprehensive marketing strategy with the help of which the firm is able to identify the four essential Ps of marketing namely the Product, Packaging, Price , Promotion and Positioning. It is through this identification that the firm is able to design the product in an appropriate manner.

The product which has been chosen for the purpose of analysis can be stated to be the low fat cereal bar. The main product benefits which will be essentially paid by the enterprise can be stated to be the sense of self-worth, the food, the healthiness and lifestyle, the images, the sense of sophistication in order to see to it that the different customers find it attractive to carry the product and this would contribute towards making the brand an increasingly popular brand and largely distinguishable in nature. The product is not standardized but instead Adaptive in nature which is being adopted solely for the purpose of Poland.

The firm wants to position itself as one of the best low fat cereal bar. In consideration with this, this will assist in increasing the self-worth of the brand and will make the product more consumable in the eyes of the customers (Slimane et al., 2019). In addition to this, the brand will be making use of the various advertising strategies which will make the product increasingly popular.

The firm would be required to promote itself as a healthy product and use various mediums like advertising, social media marketing and other related techniques in order to ensure that it is being able to reach out to the target audience in the correct manner.

The packaging of the product has to be done in a manner such that the different customers are appealed by the offering of the brand. In addition to this, it is critical to ensure that, the right kind of packaging is adopted. The packaging idea which is being adopted is the enterprise is the Boxes of 6 units this packaging will be useful for those individuals who like to consume the good regularly. In addition to this, another kind of packaging can be for the people on the go who like to buy and use it (Slimane et al., 2019). Additionally, the packaging of the product will also comprise of all the relevant laws which the product is required to abide by such as the nutrients and the overall Low Fat signs which are the description of a healthy lifestyle.

The pricing strategy is the market skimming strategy whereby the Marshfield bakery will be setting the price of the bars at a price which is similar to the market competitors. The low fat cereal bar will be positioned as an upper market product so that the image can be improved and the product quality remains extensively high.

The marketing tactics and actions which have been decided for the firm can be mentioned to be as follows:

Social media advertising: The social media advertising can be understood to be one of the most popular mediums of promotion and advertising which can be essentially made use of by the enterprise in order to attract the target audience (Tzempelikos, Kooli and Lichtenthal, 2019). In regard to this, a social media campaign of 6 months can be run in order to make the product popular.

Television advertising: The television advertising can be mentioned to be another crucial source of marketing which can be made use of by the enterprise in order to advertise and promote its product in the target market.

In order to ensure that the plan is successful in the long run, the enterprise would be required to see to it that the firm is being able to monitor and control the plan which has designed by the firm. In order to monitor the new plan, the enterprise will make use of both the Sales and Market share analysis in consideration of the fact that the marketing objectives can be met with successfully (Tzempelikos, Kooli and Lichtenthal, 2019). In addition to this, the sales analysis will examine the different outlets and how the firm is performing and additionally, the profit and loss of the firm will also be assessed accordingly.

The different challenges which the firm may face can be described as follows:

• The competitors present in the market. There are various competitors who are present in the market and in regard to this; the firm might find it increasingly difficult to see to it that the enterprise is being able to get adequate market share for its products.
• In addition to this, the firm may not be welcomed by the country due to various political and other governmental barriers as well.

As the product is a food item, the Marshfield Bakery would be required to ensure that the different products abide by all the Food and related regulations. In consideration of this, they would be required to mention the nutrition information and related data at the back of the package is given (Haider et al., 2019). Moreover, the ingredients of the packet must comprise of goods which promote health and safety of the different customers. Additionally, all ethical aspects of conducting the different business operations also have to be considered accordingly.

Conclusion

Therefore from the analysis, it can be rightfully understood that in order to be able to be successful in the long run in terms of the marketing, it becomes critically important for the firm to come up with a sound marketing plan which would enable them to meet with the needs of the different business requirements. The report outlined the issues and provided solutions for the same.

References

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