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An Investigative Model of Marketing Expansion Strategies

PPL Shipyard, Singapore

©2015 Academic Paper 33 Pages

Summary

This research project addresses the issues of marketing expansion strategy and its effectiveness with regards to PPL Shipyard Pte Ltd, Singapore within the backdrop of the oil rig industry in Singapore. The project will focus on the expansion methods of globally expanding the company’s products and services, namely the expansion of its offshore rig designing abilities, rig building capabilities and repair operations. The company was chosen for due to the author’s affiliation with the company and that it is a well known establishment under its parent company, Sembawang Corporation, which is well known in Singapore for its purview of products and services in the shipping and engineering industry. The literature previews Singapore’s oil rig industry and its global growth. The report will primarily focus on the strategic perspective of the marketing department with regards to identify the marketing expansion strategies using the Ansoff matrix framework, being the most popular framework for marketing expansion, as well as other related strategies.

Excerpt

Table Of Contents


Sim Puay-I, Patrick: An Investigative Model of Marketing Expansion Strategies,
Hamburg, Anchor Academic Publishing 2015
PDF-eBook-ISBN: 978-3-95489-973-9
Druck/Herstellung: Anchor Academic Publishing, Hamburg, 2015
Bibliografische Information der Deutschen Nationalbibliothek:
Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen
Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über
http://dnb.d-nb.de abrufbar.
Bibliographical Information of the German National Library:
The German National Library lists this publication in the German National Bibliography.
Detailed bibliographic data can be found at: http://dnb.d-nb.de
All rights reserved. This publication may not be reproduced, stored in a retrieval system
or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without the prior permission of the publishers.
Das Werk einschließlich aller seiner Teile ist urheberrechtlich geschützt. Jede Verwertung
außerhalb der Grenzen des Urheberrechtsgesetzes ist ohne Zustimmung des Verlages
unzulässig und strafbar. Dies gilt insbesondere für Vervielfältigungen, Übersetzungen,
Mikroverfilmungen und die Einspeicherung und Bearbeitung in elektronischen Systemen.
Die Wiedergabe von Gebrauchsnamen, Handelsnamen, Warenbezeichnungen usw. in
diesem Werk berechtigt auch ohne besondere Kennzeichnung nicht zu der Annahme,
dass solche Namen im Sinne der Warenzeichen- und Markenschutz-Gesetzgebung als frei
zu betrachten wären und daher von jedermann benutzt werden dürften.
Die Informationen in diesem Werk wurden mit Sorgfalt erarbeitet. Dennoch können
Fehler nicht vollständig ausgeschlossen werden und die Diplomica Verlag GmbH, die
Autoren oder Übersetzer übernehmen keine juristische Verantwortung oder irgendeine
Haftung für evtl. verbliebene fehlerhafte Angaben und deren Folgen.
Alle Rechte vorbehalten
© Anchor Academic Publishing, Imprint der Diplomica Verlag GmbH
Hermannstal 119k, 22119 Hamburg
http://www.diplomica-verlag.de, Hamburg 2015
Printed in Germany

Sim Puay-I, Patrick: An Investigative Model of Marketing Expansion Strategies,
Hamburg, Anchor Academic Publishing 2015
PDF-eBook-ISBN: 978-3-95489-973-9
Druck/Herstellung: Anchor Academic Publishing, Hamburg, 2015
Bibliografische Information der Deutschen Nationalbibliothek:
Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen
Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über
http://dnb.d-nb.de abrufbar.
Bibliographical Information of the German National Library:
The German National Library lists this publication in the German National Bibliography.
Detailed bibliographic data can be found at: http://dnb.d-nb.de
All rights reserved. This publication may not be reproduced, stored in a retrieval system
or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without the prior permission of the publishers.
Das Werk einschließlich aller seiner Teile ist urheberrechtlich geschützt. Jede Verwertung
außerhalb der Grenzen des Urheberrechtsgesetzes ist ohne Zustimmung des Verlages
unzulässig und strafbar. Dies gilt insbesondere für Vervielfältigungen, Übersetzungen,
Mikroverfilmungen und die Einspeicherung und Bearbeitung in elektronischen Systemen.
Die Wiedergabe von Gebrauchsnamen, Handelsnamen, Warenbezeichnungen usw. in
diesem Werk berechtigt auch ohne besondere Kennzeichnung nicht zu der Annahme,
dass solche Namen im Sinne der Warenzeichen- und Markenschutz-Gesetzgebung als frei
zu betrachten wären und daher von jedermann benutzt werden dürften.
Die Informationen in diesem Werk wurden mit Sorgfalt erarbeitet. Dennoch können
Fehler nicht vollständig ausgeschlossen werden und die Diplomica Verlag GmbH, die
Autoren oder Übersetzer übernehmen keine juristische Verantwortung oder irgendeine
Haftung für evtl. verbliebene fehlerhafte Angaben und deren Folgen.
Alle Rechte vorbehalten
© Anchor Academic Publishing, Imprint der Diplomica Verlag GmbH
Hermannstal 119k, 22119 Hamburg
http://www.diplomica-verlag.de, Hamburg 2015
Printed in Germany

[1]
Table of Contents
2.3 Data collection ­ ... 7
2.3.1 The interview study ... 7
2.3.2 Group questionnaire surveys-Sample method ... 7
2.3.3 Sampling plan ... 7
2.3.4 Designing a questionnaire ­ the interview questions ... 8
2.4 Limitations of the research ... 8
2.5 Ethical Issues ... 9
3. Analysis... 9
3.1 Statistical findings ... 9
3.2 Analysis of data findings ... 12
3.2.1 Marketing expansion is directly responsible for the shipping business's
first step to success (PPL Shipyard)... 12
3.2.2 Overseas knowledge and matching with confidence of one's own company and
products is critical ... 13
3.2.3 Market and product development has direct impacts with overseas expansion ... 13
3.2.4 Marketing expansion strategies should come with other strategies for long-term
success... 14
3.3 Market expansion using the BCG growth and share analysis ... 15
3.4 Possible impacts of the jackup rig analysis ... 17
3.5 Analysis using the critical success factors for marketing expansion ... 18
4. Conclusion ... 18
5. Recommendation of the strategies ... 19
References ... 21
Appendices ... 24

[2]
1. Executive
Summary
This research project addresses the issues of marketing expansion strategy and its
effectiveness with regards to PPL Shipyard Pte Ltd, Singapore within the backdrop of the
oil rig industry in Singapore. The project will focus on the expansion methods of globally
expanding the company's products and services, namely the expansion of its offshore rig
designing abilities, rig building capabilities and repair operations. The company was
chosen for due to the author's affiliation with the company and that it is a well known
establishment under its parent company, Sembawang Corporation, which is well known
in Singapore for its purview of products and services in the shipping and engineering
industry
.
The literature previews Singapore's oil rig industry and its global growth. The
report will primarily focus on the strategic perspective of the marketing department with
regards to identify the marketing expansion strategies using the Ansoff matrix framework,
being the most popular framework for marketing expansion, as well as other related
strategies.
My research is based on quantitative analysis based on data collection. Summarized
statistical results of my secondary research has shown that marketing expansion had
evolved in a dramatic way and has become a strategic notion for most companies in
modern society, especially in the oil rig industry. Further analysis through the BCG
group matrix and critical success factors of project expansion and tabulated data will
provide further insights. Marketing in a global economy has had a major impact on the oil
rigs industry, being one of the largest and fastest growing industries in the world.
Marketing expansion had a particular impact on the business because it provides unique
opportunities for growth and interaction between partners, suppliers and customers no
matter how distant they may be. One of the major factor that led to increased growth in
the oil rig industry is the growing number of companies and countries that are dependent
on oil for survival and business.
Keywords: Market expansion, Ansoff, Oil rigs, Offshore drilling, Jackup rig, Shipyard
management
1.1 Investigating PPL Shipyard
To get a wider understanding of the oil rig industry, I have specifically chosen PPL
Shipyard Pte Ltd, Singapore as the company for researching suitable marketing expansion

[3]
strategies for the global context. By investigating the organization and the service, I
wanted to form a platform of knowledge for further impetus into the research process that
will align my research interests with my goals. PPL Shipyard is situated strategically in
the industrial region of the western coast of Singapore. PPL Shipyard specializes in the
business of design and construction of offshore jackup rigs as well as providing shipping
consultancy services. PPL Shipyard has a strong reliance on building and servicing the
operations of jackup rigs and submersible rigs. Up till recent times, PPL shipyard
has built a total of 27 jackup rigs, 6 semi-submersibles and 4 swamp barges (PPL
Shipyard, 2009a).
1.2 The global oil industry and Singapore
Against the backdrop of the world's oil consumption patterns, the global economy may be
slowing down but the world's demand for energy shows no signs of abating. In fact, it is
estimated to grow by 71 per cent from 2006 to 2030, and will be led by Asia-Pacific and
the Middle East. BBC (2008) reported that the Middle East remains the biggest player in
the oil field. This region dwarfs the rest of the world, when it comes to oil reserves. It
elaborates that Saudi Arabia alone possesses 21.9% of the world's proved reserves with
the North Sea and Canada still having substantial reserves. A look at table. 1. in
appendix will offer a glance of oil production derived from different countries which will
related to their reserves. Thus, in addition to the increasing non-stop demand of oil
required by the guzzling countries, this is good news for Singapore's oil and gas (O&G)
industry.
1.3 Key competitors and their oil rig operations expansion in Singapore.
This report will peek into some of the key shipping companies in tandem with the oil rig
industry. One of the major key players in Singapore is Keppel Shipping. Some of it's
major rig operations are found in Dubai and Denmark commenced operations for Dubai
Petroleum Establishment. The second rig, Mærsk Resolute, was delivered in August 2008
and has been contracted to Dong Energy for operations in the Danish part of the North
Sea over three years (Marinelink, 2008). Aban Singapore Pte Ltd, has a total of 21
offshore assets which includes fifteen jack-up offshore drilling rigs, two drill ships, one
floating production platform and a jack-up rig and drill ship each on bareboat charter.
According to Scandoil (2008), the Group is India's largest offshore drilling entity in the
private sector, offering world-class drilling services to large global oil and gas operators.

[4]
1.4 Interest in the research area
I am interested in the marketing expansion features undertaken by the company because I
am convinced that the project can serve the company as well as the industry with the
information gathered. The oil rigging industry can only grow in the future through global
expansion, due to the unending oil consumption patterns. It is important for PPL Shipyard
to be an active participator and innovator in the field of oil rigging design and operational
technology, and to concentrate on growth and expansion strategies to achieve better
consumer value and benefits.
1.5 Research aims and objectives
The company is faced with new challenges regarding the increasing use of marketing
expansion as a tool for business growth and retention. Based on the premise of the
possibilities to develop and improve the awareness and presence of the PPL Shipyard's
activities in a global context, I have formulated two research questions. The first research
question is:
· Which marketing expansion strategy is the most critical and least risky for PPL
Shipyard's oil rig investments
The second research question is:
· How useful and effective is the selected marketing expansion strategy with
regards to the company's jackup rig products and design services.
Recommendations of the marketing expansion strategies and the accompanying methods
of entry will be provided and justified to achieve the objectives.
1.6 Significance of the proposed research
The proposed framework will emphasize on the Ansoff perspective that promotes the use
of advanced methods in the marketing expansion process; i) marketing penetration; ii)
marketing development; iii) product development iv) diversification for this research
literature (Ansoff, 1957). The matrix framework will illustrate the elements of choices of
strategies ranging from the existing products and the markets. This choice justify the
research objectives because it gives a feel of the macro marketing approach toward the

[5]
whole department and are far more objective to my research purpose than other generic
strategies, which are deemed more internal and subjected to competition.
2. Research methodology
To demonstrate the research techniques, I will use the ANSOFF model as the research
framework in Figure.1. Thus, I will bear in mind that the Ansoff matrix framework is
only a model in theory that allows for a broad and general review. Some of the limitations
of using this framework include a lack of an effective explanation of science in reality,
but is nevertheless an effective tool for research, analysis and implementation of a
different perspective to the viewers.
2.1 Ansoff matrix framework and PPL Shipyard's application.
To demonstrate the research techniques, I will use the ANSOFF model as the research.
The literature will discuss on the use of Ansoff Matrix. By considering ways to grow PPL
Shipyard's existing and new products and existing and new markets, there are four
possible product-market combinations. Ansoff's matrix is shown below:
Ansoff Matrix
Existing Products
New Products
Existing
Markets
Market Penetration
Product Development
New
Markets
Market Development
Diversification
Figure.1 Ansoff Matrix model (Ansoff, Igor)
Ansoff's matrix provides four different growth strategies:
· Market Penetration ­ where the firm seeks to achieve growth with existing
products such as keel laying services in Singapore and Malaysia, which sees good
potential.

[6]
· Market Development - the firm seeks growth by targeting its existing design
models of jackup rigs into new market niches without offending the bigger
players.
· Product Development - the firms develops new metamarket services that relate to
the advice and consultancy of the development of the jackup rigs targeted in its
existing Shanghai market segments.
· Diversification - the firm grows by diversifying into new businesses by
developing new rig designs for the future in untapped rich markets in the
Northern hemisphere. PPL's growth and expansion strategies are geared towards
the evolution of the 'Next Generation' rig.
2.2 Choosing the right expansion strategy
The Ansoff framework has proven to be very useful in strategizing business elements to
determine global opportunities. I would like to further elaborate the four growth strategies.
Based on PPL Shipyard current position, it would be advisable for it to acquire more new
clients since it is still not the big player. This could allow it to further penetrate into the
local market where new clients and crossover from other competitors such as Keppel by
offering incentives. This would involve the least risk taking since costs are negligible. In
market development, there is a big effort in inducing more new and existing clients into
new markets which have not been tapped. There is less emphasis on the promotion of new
products since the focus is on creating niches for PPL. Product development process is
often seen as trying to sell more instead of creating markets to increase the revenue.
These would give PPL the options of adding other side products to the main oil rigs.
However, as often the cost of creating new products will always incur more risk. Based
on the theories of diversification, this strategy often involved not only the individual
company but other related partners or suppliers. Collaborations could be done through
vertical diversification through linking with distributors and suppliers with administered
contracts.
There are little limits to the Ansoff framework for my research as it remains a valuable
model for demonstrating the effectiveness of growth and market expansion processes.
The only drawback is that it is virtual and lacks a quantitative approach to measuring
risks and accounts that each quadrant is separate on its own, although one strategy chosen
can aid the other. The following section below will describe and explain the motives

[7]
behind the methodology of the interview study and how the research studies had been
conducted.
2.3 Data collection ­
2.3.1 The interview study
I discuss the team's research methods and interpretive techniques. In so doing, I focus
on the challenges we encountered and strategies we used to overcome them.
In order
to find additional information to answer the research questions, we have decided
to use an online survey as a source of exclusive information. The survey along
with a questionnaire will be conducted online via email using a selected group of
people-staff from the shipping industry, which will allow for clarity and efficient
information collection without the hassle and cost of using other equipment.
According to DJS Research Ltd (2009), an e-mail attachment of the questionnaire
sent as an attachment would suffice.
2.3.2 Group questionnaire surveys-Sample method
The questionnaire will be administered to 30 respondents that are selected from
various levels of the organization. This will give a broad description and
understanding of the marketing expansion strategies from various perspectives
besides marketing. The data will be analyzed quantitatively. To reduce the
respondents' confusion and unwillingness to answer our 10 listed questions in the
questionnaire, I have decided to include a confidential informed consent form
which the respondents will sign and the information gathered from them will not
be released.
2.3.3 Sampling plan
The sample frame will consider the shipping businesses that are listed in the
directory. For simplicity, I have chosen the parent company of PPL shipyard, ie.
Keppel Shipping since it is not directly related to PPL shipyard. The sampling site
is a list of 5 departments in Keppel shipping that includes the operations, finance,
marketing, production and customer service. In designing the study, one should
consider potential errors according to QuickMBA (2009). This can include non-
sampling errors due to a typo error or fatigue of the respondents. I have chosen my
30 respondents for the sample size since this would be representative enough for
the purpose as too many would be time consuming and chaotic. A sufficient

Details

Pages
Type of Edition
Originalausgabe
Year
2015
ISBN (PDF)
9783954899739
File size
522 KB
Language
English
Publication date
2015 (September)
Keywords
Market expansion Ansoff Oil rigs Offshore drilling Jackup rig Shipyard management
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