Aberdeen Asset Management Plc Entry in South African Market - Coursework Example

ABERDEEN ASSET MANAGEMENT PLC ENTRY IN SOUTH AFRICAN MARKET By Aberdeen AssetManagement PLC Entry in South African Market Strategy Development A market entry strategy and strategic development is a method designed by a company to deliver its services into a new target market. In the case of exporting or importing goods and services, it refers to managing and establishing contracts in a foreign nation. Many organizations operate successfully in a niche market environment without the need to expand to new markets. Some organizations achieve increased brand awareness, sales, and business stability by making new entries into new markets. To develop an effective market entry strategy for Aberdeen Asset Management PLC into the market of South Africa, which is very competitive, an evaluation of possible customers and potential competitors is advised (Lymbersky, 2008, 90-1). Some of the major factors to put into consideration by the company when deciding on the viability of the entry strategy include competition, localized knowledge, trade barriers, and service subsidies. According to Kusuoka and Maruyama (2010, 112-3), the decision of whether to enter or when to enter a South African market will majorly depend on the company’s financial resources and the nature of the services it offers. There are several strategies adopted by different companies depending on the favorable strategy and financial ability. However, the most common entry strategies adopted by most companies and also relevant for Aberdeen Asset Management PLC include: Understanding how the target customers operate; their culture, beliefs, and the kinds of services that make them feel satisfied. This would give the company a competitive advantage over its competitors. The company also needs to understand the operations of its competitors and understand the best way to counter their services in order to attract all their customers. The company also needs to design modern and unique methods of providing services that is technology oriented thereby giving it the opportunity to stand out and outshine other organizations that offer similar services. (Lymbersky, 2008, 98). Kusuoka and Maruyama (2010, 78-9) assert that when a company has settled on a decision to enter into a new market, there are so many options open to it. The options will in most cases vary in the risks involved, costs likely to be incurred, and to what level the company can exercise control over such options. The company should for this matter ensure that it has the right resources and proper financial ability to take care of massive costs that are associated with entering into a new market. After the company has decided on the entry strategy to adopt, there is a need to decide on specific channels to adopt in order to co-ordinate its activities across the market and enlighten its target customers on the company’s existence and the kind of services it offers. Since the company is interested in entering the South African market, it will most likely be faced with several issues. One of the issues is the aspect of marketing, which describes how the company and its segments can manage, co-ordinate, and implements its marketing effort across the country. The decisions made on the issue of marketing majorly focus on value chain. The entry alternatives or the strategies adopted by the company must make sure that the required value chain processes are integrated and performed (Keillor & Wilkinson, 2011). Other strategies include adopting a technical innovation, which involves the provision of quality services that are superior to the services currently offered in the market. The next aspect is the service adaptation strategy, which involves modification of the company’s existing services to fit into the requirements of South African market. This would ensure that the services offered by the company do not appear irrelevant to its target customers. Implementation Extended marketing operations involve a marketing mix or business tools used by marketers in marketing. The marketing mix is very significant in determining the brand or the product’s offer and associated with four P’s that include product, price, place, and promotion. This concept majorly focuses on placing the right good in the right location, at the correct price, and at the right time. It involves creating a product required by a particular group of individuals and placing the product at a place that is regularly visited by those same people (Grünig & Morschett, 2012, 97). In the case for Aberdeen Asset Management PLC, the service offered should display charges that match the value attached to the service by such individuals; this should be done at a time when the individuals demand such services. However, the company needs to carry out a lot of research to find out what the target customers really want and locating the places they seek such services within the South African market. Aberdeen Asset Management PLC needs to figure out the methods involved in delivering its services and at a charge rate representing the market value of the service in the view of the target customer, and at a critical and relevant time. The elements go hand in hand in their operation and getting one element wrong can spell disaster and thus failure for the company (Grunig & Morschett, 2012, 102-3). Looking at the first element (product), it should be noted that a company can only sell what is specifically required by the consumer. In the case of Aberdeen Asset Management PLC, the company should be able to study and understand the needs and wants of the customers and be able to attract them with services that are in their best interest. The company needs to tell what the customer needs from the service and how its services satisfy the target customer. The company should also be able to determine the usage of its services and how the services should be modified to counter the services of its competitors within the South African market. The second element in this aspect is "price," which reflects the service total cost of ownership. Issues that significantly influence price are consumers cost to change or the cost incurred in implementing the new service. It also involves the consumers cost of not choosing the service offered by a competitor. The company must be in a position to establish whether the customer is price sensitive and how the companys price will compare with that of its competitor (Capass & Bakstein, 2012, 89). The next element is "promotion," which involves manipulatively talking to the target customers with the aim of making them demand the company’s services. Promotion can take the form of advertising, viral advertising, personal selling, public relations, and any other forms of communication taking place between the consumer and the company. The company should be able to know how its competitors carry out their promotions and how they are likely to influence the companys promotional activities. The next element is "place," which describes where the service can be gotten by the customer. With the rising use of internet, credit cards, catalogs, and mobile phones, people see no need of moving to any place in order to satisfy their needs or wants. This requires the company to study and know the level of technology in South Africa to be able to know how to approach the target customers. However, South Africa is a developed country and its citizens heavily use new forms of technology, thereby calling for the need of the company to adopt such forms of technology. The company should be able to determine how the target customers prefer to be delivered with the services and how to access the target the customers. With the rise of hybrid models of purchasing and the internet, “place” is slowly becoming irrelevant. According to Capasso and Bakstein (2012, 96-7), the concept of convenience and place strives to focus on the ease of finding a product, buying the product, and accessing relevant information concerning the product. The marketing mix model adopted by the company while deciding how to take a new product into a new a market is fundamental. This model can equally be applied in testing the companys existing marketing strategies and determine their relevance to the market environment in South Africa. According to Barnhart and Smith (2012, 112-3), regardless of whether the company is considering an existing offer or a new one, there are definite steps that should be followed purposely to define and promote the companys marketing mix. Firstly, product or service under consideration should be identified. The second step is to analyze and answer the questions on the 4 P’s as discussed above, and the third step is to try to ask "what if" and "why" kind of questions to try to challenge the offer. For instance, seeking answers to questions as what would happen if the service charge were dropped by 5%? The last step in this aspect is to try “testing” the whole offer once a well-defined marketing mix has been put in place. This can be based on asking consumer based questions, such as if the mix meets customer needs and whether the price charged for the sevice is favorable for them (Barnhart & Smith, 2012, 88-9). The other “P”s strategies include process, people, and physical evidence, adding up to what is commonly referred to as the “7 P’s of marketing”. Looking at the first “P”, which is “people”, it refers to the right kind of people that the company should have in order to support its services. According to Barnhart and Smith (2012, 88-9), the company needs to have trained customer service personnel who are able to offer clearly defined expectations such as average response time and hours of operation. This is very important for the company to maintain its customer satisfaction and understand how people behave in the South African market environment. The next “P” is the aspect of “process”, which involves the solid policies and procedures put in place within the company. It relates to the company’s services and products that help in achieving the company’s marketing strategies. Customers normally want to understand more than just the company’s services but also need to know the form and the shape that the company would take in the process of operation. The last “P” in this aspect is “physical evidence or packaging”, which refers to the way the company’s services or anything related to the company, appears on the outside. Aberdeen Asset Management PLC must make decisions concerning how the company should appear to the public; which should be updated or upgraded at any time upon carrying out a test with the customers (Barnhart & Smith, 2012, 88-9). Critical Reflection In order to achieve the objectives of designing new market strategies discussed above, there is a need for the company to employ superior marketing strategies. By positioning the service brand correctly, the service will most likely become successful in the market better than the competitors services. Even with the best form of strategies, it is necessary for the company to properly execute its programs in order to achieve extraordinary results. The marketing strategy adopted by Aberdeen Asset Management PLC should also be creative in order to improve the marketing results within the South African market. The marketing plan may not likely succeed if there is no marketing execution on the models adopted. Improving how the company enters into the new market can significantly enables it achieve great results without having to change its strategies altogether. At marketing mix level, the company can make improvements on their execution by making little changes. Such small changes can be made without having to make changes on the strategic position (Backman, 2004, 56-7). At program level, the company can improve its performance by executing and managing its marketing campaigns in a better way. It is normally believed that adopting a consistent marketing creative strategy across different media (such as Radio, TV, Print and Online), can enhance and amplify the marketing campaign effort. The company can improve its effectiveness in the marketing programs by improving direct mail or editing the contents of the website in order to improve on organic search results. There is also an aspect of marketing infrastructure or the marketing management, which involves improving the marketing business. It should be noted that management of budgeting, motivation, agencies, and co-ordination of marketing practices can result in improved results and improved competitiveness. In the view of Backman (2004, 102), the business results and accountability for brand leadership is normally determined by the effectiveness of brand management. Some key factors that are fundamental and should be taken into account are the exogenous factors, which often determine how companies are able to improve their results. Taking advantage of interests, seasonality, or regulatory environment will enable Aberdeen Asset Management PLC design methods of improving their marketing effectiveness within the South African market, which is very competitive and dynamic. References Backman, M., 2004. The Asian Insider: Unconventional Wisdom for Asian Business. New York: Palgrave Macmillan. Barnhart, C., & Smith, B., 2012. Quantitative problem solving methods in the airline industry: A modeling methodology handbook. New York: Springer. Capasso, V., & Bakstein, D., 2012. An introduction to continuous-time stochastic processes: Theory, models, and applications to finance, biology, and medicine. Boston: Birkhauser. Dony, A. G. C., 1999. Market entry strategies for the PR China: An empirical study on the beer and soft drink industry. 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