Situational Analysis Of BWT’s Expansion Into Senegal

Economic Factor

Recognise Economic factor is essential for every business organisation during the expansion of business in other countries. The trends and buying behaviour of customer mainly depends on the economic factor of a country (Baker, Collier and Jayaraman, 2017). The overall economic condition of Senegal is good so that BWT can operate its business efficiently. The government also implemented the Plan Senegal Emergent in the financial year 2014 (Richard, 2018). This plan also triggered the economy of Senegal and the government also promoted the private sectors activity to maintain the GDP growth rate.     

1.2 Socio-demographic

It is one of the most stable countries of Africa and majority of people in this country are involved with fisheries, phosphates, groundnuts and tourism business.  Poor economic management of the country also changes the trend of general people so that it is tough for BWT to operate their business in this country (BWT AG, 2011). The socio-demographic condition of this country is poor, so that BWT needs to focus more on effective marketing to maintain its sales volume. Otherwise, it can hamper the overall performance and operation of this company.

1.3 Political and Legal

The political condition of this country is not stable, and the government don’t have effective fiscal policies, and various government restrictions can reduce the financial position of BWT (Richard, 2018). Different legislation such as consumer protection laws, environmental policies and employment law generally hampers the overall environment of this country and high corruption level can hamper the overall business operation.

1.4 Ecological

The tropical climate covers the entire area, and due to the dry climate, the tribal people generally depend on wells to fulfil the needs of water (Jerath, Kim and Swinney, 2017). For that reason, it will be very tough for this water technology group to sales the products effectively. At the same time, ecological factor is also a major barrier for research development work so that it will surely hamper the company operations.

1.5 Technology  

It generally signifies the research development activity and use of upgrade automation technology for improving organisational performance effectively (Kang, 2018).  This organisation mainly deals with agricultural products for that reason lack of proper technology will also hamper the research development work of this organisation. Apart from that lack of digital technology and automation can increase the overall expense of BWT.

1.6 Cultural

The diverse culture and beliefs of people will provide this organisation with less opportunity during market research. That means diverse buying behaviour of people can confuse the management during decision making (Jerath, Kim and Swinney, 2017). Organisation needs provide economic pricing strategy to grab the attention of the customer, and it can reduce the organisational financial profitability as well as overall performance of the organisation.

Socio-demographic

2.1 Structure of the sector 

BWT is one of the leading water technology groups all over the world. The production capacity of this organization is high due to availability of enough resources in Austria. More than 2800 employees are currently working in this organisation and top class industrial partners also improved the organisational brand image (BWT AG, 2011). The association of people also helps management to manage the company in an organised way (Kang, 2018). Product price of BWT is the little bit high in comparison to others organisations. BWT follows social media, word of mouth and digital promotional strategies.

2.2 Client analysis

Companies

• This company works with different types of organisations such as Pharmaceuticals, beverage companies, cosmetic companies etc. BWT also make their product on the basis of requirements (Padon and Rimal, 2017).  
• All the beverage and pharma companies need pure water so the technical experts of BWT assemble the products based on organisational requirements (Chernev, 2018).
• The number of quality water treatment product is very low in the market so that bargaining power of the companies is very low.
• Most probably, more than 60 organisations are currently using the service of BWT group.  Number of loyal customers is also high due to quality products and organizational brand image.

Consumers

• Organizations mainly divide the customer segment based on demographic characters of the customers such as income level, lifestyle, buying behaviour etc.
• Understand the purchasing habits of customer helps management to take various decisions leads to trigger the sales volume of a company (Padon and Rimal, 2017).
• What the purchasing power of customer generally depends on the availability of similar products and some local brand with same futures products in affordable rate can increase the bargaining power of the customers (Di Benedetto et al., 2018).
• Effective product quality and high-quality service of BWT will increase the numbers of loyal customers rapidly.

2.3 Distribution structure

BWT mainly distributes the product through subsidiaries. BWT provides the opportunity of online shopping those also increased company sales. The effective innovations in water technology also ensure the health of people in different areas (Chernev, 2018).  This company also expanded their business in other countries and distribute their products through distributors, retailers etc.

BWT usually distributes its products through its subsidiaries, retail and wholesale organisations (Best Water Technology AG, 2016).  In this regard, popular industrial partners are one of the major strength of this organisation.

2.4 Orientation of the sector

The mission of this organisation is to ensure hygiene, health and safety by providing people with fresh water (Michaelidou, Siamagka and Christodoulides, 2011). Innovation in product line also helps the organisation to grab the attention of more public. At the same time, innovation in a distribution such as quick delivery system, online shopping, the establishment of sales outlets in different parts of the country also helps this organisation to increase the numbers of sales.

2.5 Security 

Before expanding the business in the foreign market, it is essential for the management staff to review the risk factors efficiently such as the entrance of new competitors, substitution of products etc. because these factors can reduce the demand of products (Fulgoni, 2018). The entrance to the new company with similar and low-cost products will also reduce organisational sales. In Senegal, the vertical integration strategy will help BWT to operate the overall business correctly. The store will control the sales and distribution according to public demand (Best Water Technology AG, 2016). Primarily BWT needs to compete with the existing company and needs to improve its brand image through quality products or services. Improved brand image mainly provides the organisation with the strength of negotiation.

3.0 THE MARKET

Political and Legal

3.1 Quantitative description

One of the main products of BWT is premier filter Jug with electronic indicators. The product price is a little bit high for that reason; it is not affordable for all the categories of people (Di Benedetto et al., 2018). The revenue of this organisation was € 610.04 million in 2016 (Best Water Technology AG, 2016). The growth of company needs to ensure the quality, affordable price rate, effective promotion, and distributions to get a long-term outcome.

3.2 Qualitative description

The product price of this organisation is high and that can reduce organisational sales volume. Proper marketing and pricing are essential, and that will help BTW to trigger the sales as well as financial profitability (Michaelidou, Siamagka and Christodoulides, 2011). Market penetration rate mainly depends on some customer and target market size. According to research, it has been identified that the penetration rate of Btw is good enough.

4.0 The competition 

4.1 Direct competitor

Key areas	Strong points	Weak points
Products	Quality, design	Technology
Prices	economic pricing strategy	Less profit margin
Distribution and sales force	Worldwide distribution	Lack of effective distribution channels
Participation	Product design	Innovation of new technology
Publicity and promotion	Digital and social media promotion	Word of mouth promotion

Products and services

The product quality is important for all the organisation to improve brand image and sales volume (Fulgoni, 2018). The organisation is using magnesium technology, and that mainly makes the product unique. BWT Gourmet also enhances the natural aroma of coffee and tea.

5.2 Prices

Price is one of the important factors for the entire business organisation because most of the public wants better quality products in affordable rate (Yoon, Choi and Sohn, 2008).  The product filter has two different models, and the prices of the products are respectively €29.94 and €17.99. That means the company also launched the entry-level product for the middle-class people and that will attract more customers from the market.

5.3 Distribution Network

Headquarter of this organisation is in Austria, and this organisation also expand its business in another market such as Germany, France, Switzerland etc.  This organisation has four main production sites, but this organisation also distributes its products all over the world through its subsidiaries (Di Benedetto et al., 2018). Organisation generally sales its product through retailers and wholesale shops also and the marketing head has the responsibility to increase the number of product sales effectively.

5.4 Sales Force

Organizational sales force generally depends on effective customer relations for that reason organization needs to recruit the relationship managers to build good relation with all the potential customers. It will increase the number of customer of BWT and this strategy will also improve customer retention. Maintain effective sales force will improve overall organizational sales as well as financial profitability.

5.5 Communication 

Effective publicity and promotion of newly launched products mainly attract the customer psychologically. For that reason, BWT generally promotes their products through social media, word of mouth activity and digital advertisement (Yoon, Choi and Sohn, 2008). Effective customer service and gather feedback from customers with a view to products. Effective distribution strategy in different retail and wholesale store also helps this organisation in maintaining effective sales leads to enhance financial position.

References

Baker, T., Collier, D. and Jayaraman, V., 2017. A new pricing strategy evaluation model. International Journal of Operational Research, 29(3), pp.295-316.

Best Water Technology (BWT) AG, Austria. 2016. Filtration Industry Analyst, 2016(12), p.6.

BWT AG, Austria. 2011. Filtration Industry Analyst, 2011(8), p.7.

Chernev, A., 2018. Strategic marketing management. Cerebellum Press.

Di Benedetto, A., Sarin, S., Belkhouja, M. and Haon, C., 2018. Patterns of Knowledge Outflow from Industrial Marketing Management to Major Marketing and Specialized Journals (1999-2013): A Citation Analysis. Industrial Marketing Management, (69), pp.13-17.

Fulgoni, G.M., 2018. Are You Targeting Too Much? Effective Marketing Strategies for Brands. Journal of Advertising Research, 58(1), pp.8-11.

Jerath, K., Kim, S.H. and Swinney, R., 2017. Product quality in a distribution channel with inventory risk. Marketing Science, 36(5), pp.747-761.

Kang, J., 2018. Effective marketing outcomes of hotel Facebook pages: The role of active participation and satisfaction. Journal of Hospitality and Tourism Insights, 1(2), pp.106-120.

Michaelidou, N., Siamagka, N.T. and Christodoulides, G., 2011. Usage, barriers and measurement of social media marketing: An exploratory investigation of small and medium B2B brands. Industrial marketing management, 40(7), pp.1153-1159.

Padon, A. and Rimal, R.N., 2017. Towards a global policy against alcohol marketing to youth: Challenges and recommendations for research. Journal of public health research, 6(2).

Richard, F.G., 2018. Reluctant Landscapes: Historical Anthropologies of Political Experience in Siin, Senegal. University of Chicago Press.

Yoon, D., Choi, S.M. and Sohn, D., 2008. Building customer relationships in an electronic age: The role of interactivity of E?commerce Web sites. Psychology & Marketing, 25(7), pp.602-618.