PESTLE and Marketing Strategies Essay Example | Topics and Well Written Essays - 1500 words

PESTLE and Marketing Strategies - Essay Example They note that the external environment impacts the following: customers, industry, competitors, government, and regulating bodies. Choosing the best marketing mix requires aligning external realities and the internal resources and capabilities of the organisation (Needham and Dransfield 2000, p.305). Dickinson and Ramaseshan (2008) agree with Needham and Dransfield (2000), but the former also emphasise that other factors also impact marketing strategy, such as the company's cooperative arrangements. This report believes that a company cannot generate effective marketing strategies, if it is only focused on its internal environment in planning these strategies. It must consider the external business environment, so that it can respond to the threats and challenges that are embedded in the outside world. Nevertheless, it does not postulate that only the external environment can assure the success of a firm's marketing strategy. Other factors will also impact the outcome of marketing s trategies. One important framework for analysing the external environment is through the PESTLE analysis. This report will use PESTLE analysis on Abu Dhabi, where its main goal is to help Nestle generate a marketing mix that will introduce a new line of food product for toddlers. SITUATIONAL ANALYSIS AND MARKETING MIX The PESTLE analysis is one of the most prominent external scanning tools. It analyses the political, economic, social, technological, legal, and environmental factors that can impact a company's marketing strategy by affecting consumer behaviour and choices, as well as their income levels. PESTLE analysis also reveals opportunities and threats that can shape future marketing strategies (Needham and Dransfield 2000, p.305). PESTLE analysis is also not a one-time event. It has to be done regularly, because the environment constantly changes and it will be critical to respond to these changes that can impact the business. This section analyses these factors in Abu Dhabi a nd relates it to the marketing strategy of Nestle. PESTLE Analysis Political factors. The government of Abu Dhabi promotes economic sustainability through diversifying its industries that will ultimately reduce its dependence on oil revenues. This economic diversification scheme can have a positive effect on Nestle’s brand extension scheme, because it can improve the reception for its new product line. In addition, after the Arab spring (Anderson 2011), the U.A.E. government aims to enhance the conditions of liberal human rights, so that its citizens will not think of being involved in political and economic sabotage and other economically-ruinous activities. The political environment can affect the marketing strategy of the company, because it will provide the political and economic stability needed to expand in this market. The political environment also regulates companies and competition. The political condition of the U.A.E. is considered as stable, in general, so it wil l not be risky for Nestle to expand business in the region. The U.A.E., in addition, pursues Emiratisation to enhance the employment of its citizens. This will impact Nestle's employment of expatriates in the long run. It would have to prepare nationals to handle critical management and marketing positions. Economic factors. Abu Dhabi is implementing its long-term economic development plan, which follows this formula: