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This report will discuss the Orb Group’s short term (1-3 years) objectives, which include global
expansion and recognition. As an organisation we have achieved vast success as we are the largest
promotional merchandise distributor in Scotland. However, we come to a decision of expansion, and
we are going to expand into the United States of America. We found this fitting as the US is a
dominating country with a lot of power. This as a result will be beneficial to us as an organisation as
we will become globally recognised through the use of our strategic planning on our marketing. We
have given ourselves a timescale of 3 years to reach our objectives. We plan on attaining additional
recognition by working with more well-known organisations such as, Microsoft. For example, The
Orb Group can promote Microsoft’s upcoming software and products.
Entry Methods
The value chain is an approach to investigating the internal analysis of an organisation. The frame
work was developed (Porter, 1985) as a way of examining the nature and extent of the synergies, if
any, among the internal activities of a firm (West, et al., 2015). All of the internal activities of an
organisation are carried out to support its products. With the Orb organisation having over 100,000
products in the promotional merchandise range, it is crucial that all internal activities support the
products and maintain its versatility amongst clients.
After looking at the current market conditions of many countries we decided to choose the United
States of America due to their ability of staying ahead of all markets, and also as we have worked
with the US before, we are aware with what to expect.
We have analysed the marketing environment and also identified the internal and external
strengths; weaknesses; opportunities and threats and have chosen exporting to be our entry
method. We believe that this is the most appropriate entry method as it will be beneficial due to fast
entry and low risk. This as a result simplifies the entry method.
Exporting is the sale of products and services in foreign countries that are sourced from the home
country. (saylordotorg.github, n.d.)
Organisations must establish a method in distributing their products and also marketing them
within the chosen country. This will allow the organisation to avoid costs of producing operations in
a new market and country. The disadvantage of choosing export as an entry method is that the
organisation will not have a vast amount of control and not much local knowledge. On an
environmental point of view, the transportation aspect can also have a negative impact on the
environment along with the transportation costs.
Communication channels
The Orb organisation have decided to utilise many methods within our communication channels, the
methods we propose to use are; email; social media; e-commerce and digital marketing.
Email is an efficient method in receiving information worldwide. It is cost effective and email
marketing is vital in creating and building consumer relationships. This direct communicating
method will be appropriate for the Orb Group to utilise.
Using social media is a clever platform in making yourself globally aware as an organisation. This is
why the Orb Group have decided to utilise this digital marketing method in order to make their
international expansion aware and gain more prestigious clients.
As the transport when exporting goods will be costly, it is important for an organisation to carry out
cost effective communication channels. Electronic commerce will be highly beneficial to the Orb
Group due to finding that this method will decrease costs, this is due to using direct online
advertising will create low human resources costs. The global availability that electronic commerce
provides makes it crucial to utilise as it will allow you to gain consumers and clients worldwide.
Marketing Intelligence
Marketing intelligence is factual information which is used to examine current market situations,
competitors and consumer demographic behaviour (Lapido Patric, et al., 2017)Marketing
intelligence is made up of seven vital factors; customers; sales force; government resources;
Internet; suppliers; customer advisory panel; retailers and distributors. Using this model will enable
us to establish a true picture of the goings on in the USA market (See Appendix B)
Pricing Strategy
In (Tanya Sammut-Bonnici, 2015) states that pricing strategy is the procedure a firm
implements to regulate what the firm will charge for its products and services. These
strategic plans falls largely into the three groupings which are cost-based pricing,
competition-based pricing, and value-based pricing. Pricing strategy is an important variable
in financial modelling, which determines what the company revenues has been achieved,
the profits earned, and the amounts reinvested in the firm's growth for its long-term
survival.
The Orb Group deciding on a pricing strategy should not be done alone but has to be in
relation to their evolving business strategy to the next level which with the Orb Group
wanting to expand internationally. The firm has to be clear about what their pricing on
objectives are and how they link in with their marketing and sales plans. As follows
Distribution channel
Generally, distribution channel is all the activities that enable the transfer of material and/or
economic power over tangible and/or intangible goods from one economic subject to
another and it delivers a well through direct channel. This will be the best distribution
channel as there are no intermediaries. (Szopa P., 2012) stated that all information’s
exchanges including orders between the Orb Group and their clients will be through mail,
phone, catalogues and their e-commerce website. Direct channel can provide a reliable
supply and at a cost effective price and it can be extremely convenient by saving physical
shop facilities. However they are prone to problems of availability, speedy supply, and
there could be difficulty in providing good service and support. It gross simplification, but
on, the whole the direct channel is the best when the strategy is cost focus for niche market
the Orb Group (West, et al., 2015). We recommend that Orb Group considers using value
added reseller (VAR) as it works with end-users to provide solutions that are unique to the
client and also helps businesses reach places where direct channel could not (Marketing-
Mo, 2014). With VAR, the Orb Group will build a relationship with each individual VAR and
treat that VAR as a potential customer who buys from them in various quantities on an
ongoing or one off basis. As Orb Group is an expert in their industry and work intently with
their clients to create the right products for their promotion purposes, VAR will allow the
firm to build a strong customer base over many years.
Product Portfolio Strategy
Conclusion
This report will discuss the Orb Group’s long term objectives, which include global expansion and
recognition. As an organisation we have achieved vast success as we are the largest promotional
merchandise distributor in Scotland. However, we come to a decision of expansion, and we are
going to expand into the United States of America. We found this fitting as the US is a dominating
country with a lot of power. This as a result will be beneficial to us as an organisation as we will
become globally recognised through the use of our strategic planning on our marketing. We have
given ourselves a timescale of 3 years to reach our objectives. We plan on attaining additional
recognition by working with more well-known organisations such as, Microsoft. For example, The
Orb Group can promote Microsoft’s upcoming software and products.
Appendix A
P.E.S.T. Factors as to why we came to a conclusion to expand into US market
Political
The United States has a strong democratic set up and effective rule of law, there elections are
considered fair and transparent. The United States are recognised as the leading superpower in the
world.
SMG (Sports merchandise Global) have had experience with the US market.
Economical
The United States is the largest economy in the world. The economic system is well developed and
gathers its strengths from its services and manufacturing industries.
Social
The education and healthcare system is one of the best in the world. However, increasing illegal
immigration is a concern as there are more than 11.7 million people currently living illegally in the
United States. (Preston, 2017).
Technological
I.T. is a field that the United States are exceling in. However, they face intense competition from
countries like China and India.
Appendix B
Strengths Weaknesses
Opportunities Threats