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MG624 Strategic Marketing-Brake Bros Ltd.


  • Unit No: 8
  • Level: High school
  • Pages: 13 / Words 3187
  • Paper Type: Assignment
  • Course Code: MG624
  • Downloads: 611
Question :

This assessment will cover following questions:

  • Understand how to analyse Brake Bros Ltd.current and future internal and external environment which influences organisation working and its decision making.
  • Build a strategic marketing plan to realise Brake Bros Ltd.Objectives which helps in making strategic decisions as per the current marketing plan.
  • Strategic marketing is the implementation of the marketing disciplines to achieve organisational goals, on the basis of that Manage resources to deliver the strategic marketing plan.
Answer :
Organization Selected : Brake Bros Ltd


Strategic marketing involves selecting the most effective marketing tactics to achieve organizational goals, ensuring positive outcomes for the business unit (Balsmeier, Manso, and Fleming, 2016). This study focuses on Brake Bros Ltd, a private UK company supplying food and drinks to a wide consumer base. The company is planning to enter the Australian market to enhance profitability by offering seafood to the Australian population. This assignment analyzes macro factors that could either create opportunities or pose threats to the business unit. It explores various market entry options and evaluates their suitability. Additionally, the report discusses Porter's generic strategy and justifies a specific strategy that could assist the business in establishing itself in the new market.


This is the tool which helps in analysing the actual situation of external market and help in identifying the position of firm to operate in the external market (Maumbe, Cheng and Fernando, 2016).

  • Political factor: Australia is the developed nation and condition of political parties are stable. Government encourage new business and trade agreement of country are very effective. Hence it would create opportunity for Brake Bros Ltd to establish itself in this market successfully. But current food policies of government influence the mind of consumers and restrict the companies to use certain kind of raw material while cooking food. This can create threat to the because it will have to make changes in its production process. In this condition Brake Bros Ltd will have to first understand policies of government according it has to use raw material so that it can run operations successfully in the new market (Hamdan, 2017).
  • Economic factor: Economic condition of Australia is sound; people have employment opportunities. Hence they have capacity to go to such restaurants and food clubs. This will help Brake Bros Ltd in attracting more consumers hence it will be opportunity for Brake Bros Ltd. On other hand increasing tax rate can affect overall profitability of the firm which may create threat the business. In such condition Brake Bros Ltd will have to manage its operational cost in such manner so that it can generate reasonable amount of profit after paying all the taxes.
  • Social factor: People of Australia like to have highly hygiene food and they are ready to spend high prices for the same. Hence this is opportunity for Brake Bros Ltd and it can generate more sales. Apart from this, changes in values, preferences make changes in actual choice of consumers that may be threat to the Brake Bros Ltd hence company has to conduct research to know more about trends and preferences of Australian consumers (Balsmeier, Manso and Fleming, 2016).
  • Technological factor: New technologies help in improving the production process and reduces wastage as well this is beneficial in order to control over cost. But implementation of new technologies is quite risk and costly hence it is threat to the firm. In this condition Brake Bros Ltd will have to manage other expenses in properly manner so that it can get funds to implement new technologies and can make balance between profit and cost.
  • Legal factor: Brake Bros Ltd will have to ensure that it follows all the laws carefully. Otherwise it may affect its sustainability in the Australian market.
  • Environmental factor: Brake Bros Ltd will have to ensure performing such activities that are eco-friendly, it has to control over wastage of raw material. By this way firm will be able to raise its brand image. If it fails to take care environment, then firms overall performance and acceptability in new market will be affected badly (Omsa, Abdullah, and Jamali, 2017).


Each company aims to serve in international market hence implements some strategies to deliver goods in the new market. These market entry modes are helpful for firms to generate revenues and gain global brand presence. There are various options are available for Brake Bros Ltd to enter into Australian market successfully (Fozer and et.al., 2017). Description of these modes are explained as below:


This is the method that gives permission to local parties to take support of brand name of company in order to sell products in the local market. Licensing agreement is made between both parties and the company gets royalty in this agreement. This is considered as simple and quick process of running business in foreign market. Enterprise transfer the rights to other business to use trademark (Perera, 2017).


  • This is the most profitable method because Brake Bros Ltd can get high return over its investments. It requires little capital and against this investment Brake Bros Ltd can get royalty as well.
  • Risk is very low in this mode because there is government intervention hence chances of legal mistakes are very low hence licensor can invest its capital easily (Bismark and et.al., 2018).
  • In the licensing option Brake Bros Ltd will give license to the company which is operating in that market hence being a local firm licensee has great knowledge about that market. Hence firm can understands needs of Australian people and can serve them products accordingly. This can support Brake Bros Ltd in offering satisfactory goods to the local people which may aid in gaining competitive advantage and retaining consumers for longer duration (Adner, Ruiz-Aliseda and Zemsky, 2016).


  • If selection of licensee is not done in appropriate manner then it can create problem for the Brake Bros Ltd, as firm will not be able to sale its seafood in Australian market in effective manner which will create situation of failure for the enterprise.
  • In this licensing agreement Brake Bros Ltd will have to share some necessary information with other local brand which can enhance risk of revealing the secrets of business (Omsa, Abdullah, and Jamali, 2017).
  • If records and payment details are not being recorded systematically then clashes can take place between Brake Bros Ltd and licensee.


This is the market entry mode or the rapid expansion technique for the company in which franchiser gives permission to franchisee to use brand name. By using this technique firm can setup its business in the new market successfully.


  • The major benefit of using franchising system is that entry cost is very low, Brake Bros Ltd would be able to establish its branch in the Australian market at affordable rates.
  • Risk of failure is very low because company cross check the firm to which it is going to give franchise for the brand (Hales and Mclarney, 2017).


  • Major drawback of using this entry method is that Brake Bros Ltd will have to share its profit with the other firm. As franchisee is running the actual operations in the foreign market hence there is need to share profit and loss of business. Hence overall profitability of Brake Bros Ltd gets reduced.
  • Controlling cost of franchising is very high (Hamdan, 2017).
  • There is high chance of conflicts between both franchisee and franchisor.

Merger and acquisition (M&A)

This is another market entry mode in which two separate firms come in legal agreement to work together. Both these entities get combined and form a one large organisation. There is possibilities that one enterprise take over other or work with mutual agreement.


  • Merger and acquisition is helpful in increasing market share of Brake Bros Ltd to great extent because assets of both these companies are being shared to run a business smoothly and top generate more profit. M&A supports entity in gaining competitive advantage (Balsmeier, Manso and Fleming, 2016).
  • It is beneficial because merger helps in enhancing competencies and getting more resources to work efficiently. Apart from this, Brake Bros Ltd can get suggestions from experts of other firms.


  • M&A can create cultural clashes in business unit because working pattern and believes of both companies are different hence it can create conflicts between the staff members.
  • This entry mode can create problem of duplication of duties, it might possible that two persons perform the same duties which may enhances cost of business unit (Hofer and Baba, 2018).

From the above discussion it is analysed that Brake Bros Ltd should take support of franchising entry method, as it will give benefit to the organisation in managing funds and capital investment in this technique is very low. Firm can get staffing leverage in this method hence it can run business in Australian market successfully and can generate more revenues in this country.



Each consumer has different needs and enterprise has to treat them differently in order to make them satisfied (Huber, 2019). The process of dividing group of people on the bases of their specific characteristics is called as market segmentation. This is considered as essential tool that supports organisation to personalise the campaigns of marketing. It aids in implementing appropriate strategies to make the person ready to buy products and services of company. There are various kinds of segmentation strategies that can be used by Brake Bros Ltd to satisfy the customers.

Geographic segmentation

This type of segmentation is done on the bases of geographic boundaries. Taste, needs, preferences are much more depends up to the geographic location. Climate of particular place decides whether selling of particular product will be good or not (Maumbe, Cheng and Fernando, 2016).

Demographic segmentation

This is another kind of strategy in which firm divides group of people on the bases of age, gender, income, marital status etc. Marketers generally adopts this kind of segmentation method because age, race, gender mostly affects their buying behaviour. For example, young people like to go to restaurants and like to have such kind of food items which are offered by Brake Bros Ltd whereas old people have less interest in such items (Ayden, Demirbag and Tatoglu, 2018). Apart from this, professional women or working women like to go to such places to enjoy some quality time with friends and families. Hence Brake Bros Ltd has to make its marketing campaign according to the needs of particular persons, that would be better in order to gaining attention of potential consumers. All these demographic elements influence the behaviour of person to great extent.

Psychographic segmentation

This is the type of segmentation strategy in which companies considers personality, lifestyle of group of people to divide the audience. Lifestyle, attitude of persons affects the purchasing behaviour of people/ For example if the person has lavish lifestyle then individual will prefer to get luxurious services in restaurants and same places. But if individual has normal lifestyle then person will consider to buy such items that have value for money (Bismark and et.al., 2018).

Brake Bros Ltd will take support of psychographic and demographic segmentation strategies. This would be better for marketers to selects the right persons and offer them services according to their requirements. Hence Brake Bros Ltd will offer food items to people on the bases of their choice and preferences. This would be better for the marketer because it is very easy to measure requirements of different group of people. Apart from this, demographic segmentation is cost effective method because many details are available online and offline about food preferences of different group of people hence Brake Bros Ltd will get benefit of offering satisfactory goods which will make them loyal and positive (Omsa, Abdullah, and Jamali, 2017).


Targeting is the method or strategy to concentrate on such consumers to whom firms plans to sell its products. Every customer has specific needs and they prefer to spend their money on such items that can satisfy their need. Brake Bros Ltd is planning to sell seafood in the Australian market. For that there is essential to right target consumers those who like to have seafood (Balsmeier, Manso and Fleming, 2016).

Differentiated targeting strategy is the method of targeting two or more different segment's people. Firm can design products and can promote products in such manner that can gain attention of large number of audience. Concentrated targeting strategy is another method of reaching to end users in which enterprise can target only on specific group of people and design marketing mix strategies accordingly. Concentrated strategy can be described as well-defined tactic which supports to meet needs of specific market segment. Undifferentiated marketing is another kind of targeting tactic in which company concentrates on one particular product for all range of consumers (Hofer and Baba, 2018). There is no differentiation between various segments. Firm believes that one common product can meet the needs of all kind of buyers.

Brake Bros Ltd should take assistance of differentiated targeting strategy, it has to makes its marketing strategies in such manner that can attract particular group of people and can meet their needs. Brake Bros Ltd will offer seafood to Australian population and it will target young women and men both. Young people of Australia like to go to restaurants and like to have such kind of seafood. Hence targeting these people would be beneficial for the organisation and it will be able to generate profit in the foreign market (Ayden, Demirbag and Tatoglu, 2018).


This is considered as essential tool or can be defined as business strategies that supports organisation in raising its positon in the market and gaining competitive advantage as well.

Cost leadership

This is the type of strategy in which organisation tries to reduce its production cost. There is need to utilise resources well and to manage it properly in order to minimise wastage so that cost advantage can be received by business unit (Fozer and et.al., 2017). By being low cost producer Brake Bros Ltd can attract new buyers and can sell maximum products in the market. This strategy is beneficial for the business those which are running their operations at large scale and offering some kind of standard items to wide range of customers. Such kinds of products are easily acceptable in market hence most of the people prefer to buy such high quality cheaper products. Brake Bros Ltd will have to develop close cooperation between all necessary departments so that confusion can be minimised and resources can be utilised in best manner. This strategy would be beneficial for Brake Bros Ltd in order to raise productivity and to manage operations in the foreign market as well (Bismark and et.al., 2018).

Differentiation focus

This is the type of tactic in which organization always focuses on focused market. It ensures to serve unique products to buyers by paying attention on niche market. This tactic is beneficial in raising brand loyalty and create high competition in the market.

It is analyzed that Brake Bros Ltd has to take assistance of differentiation. This would be best tactic for…in order to establish its business in Australian market. Demand of seafood is very high in that place and enterprise can make its food products very exclusive for this market. This would be better in attracting more consumers and gaining competitive advantage in the market. Good paper help research will help the company in knowing more about particular buyers which will support in servicing them according to their preferences. Hence implementing this strategy will support organization in gaining competitive advantage in the market. This is another kind of tactic in which organisation always tries to offer valuable products and services to consumers. If entity goes with this option, then Brake Bros Ltd will have to ensure offering such seafood that are completely different from other competitors. But here is necessary to have adequate knowledge about what consumers wants and what are there preferences. Here organisation uses niche marketing so that uniqueness can attract particular group of people. Brake Bros Ltd can charge higher from the Australian popular as it is going to offer them luxurious food which can make them satisfied (Hamdan, 2017).

Cost focus

This is the kind of tactic in which business concentrates less of cost advantage. It will sell basic products to buyers which can be acceptable by number of consumers. Organization can pay attention on niche market by understanding the specific dynamics. In this entity always have to ensure to keep prices of its products low so that enterprise can attract more buyers and can satisfy their needs.


This is another great strategy in which company pays attention on such market where product demand is high that means broad market is being concentrated by business unit. In this, entity also ensures to offer some unique goods to the consumers so that they take more interest in company's items rather than other competitors. There is need to conduct great research before targeting any market and implement some innovative ideas so that Brake Bros Ltd can meet the specific need of customers. There is need to implement effective marketing strategies so that consumers can get to know about unique features of consumers and buy its products frequently. But there is need to be flexible and adaptable in changing situations. As external environment gets changed any time hence Brake Bros Ltd will have to ensure to make necessary changes in strategies so that it can create competition in market otherwise it may lose its position in the market.


Study can be summarised as companies have to face huge competition in market, in order to sustain in such competitive market there is need to make effective strategic plan that may help firms in sustaining in market for longer duration. Franchise is the great tool that always help firms in establishing firm in the foreign market successfully. Though it has some limitation as well but this is suitable option for the small size companies as it requires limited capital investment. Before entering into Foreign market there is need to have proper analyses of macro factors so that proper strategies can be built by company to deal with threats.

Read Also - International Tourism Policy and Development

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