Table of Content

No. Content Page No.

1. Introduction 2

2. External Environment Analysis 2 - 4

2.1 SLEPT Analysis

2.2 Threats and Opportunities

3. Segmentation, Targeting and Position Strategy 4 - 6

3.1 Definition of STP

3.2 STP in Practice

4. Product Mix 6 - 8

5. Conclusion and Recommendations 8

6. References 9

1
 1. Introduction

Founded by Yong Koon, Royal Selangor International Sdn. Bhd. is a Malaysian quality pewter
manufacturer and retailer (Royal Selangor, n.d.). Then, the company branched out into gold and
silver with Selberan and Comyns. Today, the Royal Selangor headquarters is Kuala Lumpur,
and its main factory and visitor center is in Setapak. The company offers pewter items for
purchase, from a wide range of accessories to homeware and collectibles. Royal Selangor has
also expanded internationally, exporting goods to more than 20 countries, with retail outlets in
major urban cities like Tokyo and London.

2. External Environment Analysis

According to Pestleanalysis Contributor (2015), a macro-environment analysis aids to identify

what affects an organizations external performance such as, its target market and product sales.
Those deductions will then be evaluated in terms of different aspects so that corporate strategies
could be adjusted to fit the companys environment. Therefore, Ill be using SLEPT Analysis and
the assessment of opportunities and threats to evaluate the impact of the macro-environment
of Royal Selangor.

2.1 SLEPT Analysis

According to MBA Skool (n.d.), SLEPT analysis is a framework to assess an organizations

external environmental influence on it. It considers five factors affecting the macro-environment
social, legal, economic, political and technological. In this report, Ill be analyzing the social,
economic and technological aspects of Royal Selangor.

Social

According to Karndean Designflooring (2016), the Industrial Luxe trend is continuously

growing, metal interior designs and products have been dominating the market. Thus Royal
Selangor is fulfilling their target audiences demand by offering the sales of quality, intricately
handcrafted and self-customizable pewter homeware and accessories like coffee, tea, and wine

2
sets, when customers opt for a luxurious interior change, boosting corporate revenue and sales.
Not only that, the company also launched new collections like Star Wars to monopolize the
current movie trends. Thus encouraging Star Wars enthusiasts to purchase products from the
collection as collectible or gifts for others due to the hype, thus attracting new target markets and
maintaining brand relevance.

Economic

Currently, the value of Malaysian Ringgit (RM) is continuously weakening. Therefore the RM
exchange rate when compared to other countries currency is comparatively lower, thus the
increase in retail prices of Royal Selangor products which encourage tourist and foreigners to
purchase products from the company due to their higher currency exchange rate. Besides, Royal
Selangor has expanded and successfully entered the international market, so it is expected that
the company would generate greater revenue and continuously boost Malaysias economy.

Technological

Royal Selangors products are highly accessible as the company has since participated in
e-commerce. Customers are able to shop online with global delivery services. This would reduce
the companys overheads and marketing cost while expanding geographical reach without
opening additional psychical stores, as well as understanding the needs and wants of customers
based on their buying habits. Furthermore, the company offers customer-customizable pewter
products which enable Royal Selangor to reach out to a wider target market, thus increasing
product sales and company awareness.

2.2 Threats and Opportunities

With the aging and retirement of existing targeted segments, their spending power are expected
to decrease gradually which is a threat for Royal Selangor. Therefore, the company has to think
of efficient strategies to attract new segments to further boost corporate sales.

Another threat faced by Royal Selangor is their sustainability when it comes to the depletion of
raw materials. As the supply of materials needed to produce pewter rapidly grows because of

3
high consumption and demand, the value of pewter would ultimately increase due to its scarcity.
This would potentially drive down corporate sales and profit because Royal Selangor might not
be able to keep up with the demands from its customers.

However, this also creates an opportunity for Royal Selangor to branch out further by producing
items using more accessible metals like copper, which is an affordable investment that is slowly
increasing in demand. According to munKNEE.com (2010), experts also believed that copper
would eventually upstage the value of gold. Thus catapulting the company's luxurious and
premium image even further, making Royal Selangor one of the most expensive company both
nationally and internationally.

Royal Selangor should also capitalize on e-commerce, by advertising their brand and products on
social media, television, and billboards. This eventually would attract potential and loyal
customer traffic thus boosting corporate sales and revenue while maintaining brand relevance,
awareness, and recognition.

3. Segmentation, Targeting and Position Strategy (STP)

3.1 Definition of STP

STP is a segmentation, targeting and positioning strategy used when creating targeted marketing
plans as it helps marketers determine, develop, and deliver messages to engage and benefit their
target market segments. The goal of STP is to guide an organization to develop and implement a
suitable marketing mix using the 4Ps (Perner, n.d.).

3.2 STP in Practice

Segmentation

Segmentation is the dividing of markets into smaller segments based on their needs,
characteristics, and behavior. A company does market segmentation to reach potential customers
more efficiently.

4
Royal Selangors market segmentation are divided as follows:

- Geographical

Most of Royal Selangors national and global retail branches are in major urban cities and
shopping districts like Tokyo, London, and Bukit Bintang, Kuala Lumpur, targeting
customer concentrated areas which have wealthy potential customers with high spending
power, thus boosting product sales.

- Demographics

Royal Selangor targets mainly established Chinese adults with high social class,
approximately aged 30 and above due to numerous collections of luxury oriental
influenced products. The company also targets both genders products sold are non-gender
discriminatory. The companys main target generations are Baby Boomers and Gen X.
Nevertheless, Royal Selangor is slowly targeting Millennials as well in regard to their
newer product collections, like Star Wars and Captain America.

- Psychographics

Royal Selangor promotes luxury and its craftsmanship. So, their target audience is
individuals who are of upper-middle to high social class and well as income bracket.
They are most likely status-conscious individuals who seek premium collectible products
with intricate craftsmanship for themselves or as special occasion gifts to others.

Targeting

Targeting is the selection of segments to enter and pick a companys target market. There are 3
types of market targeting but Royal Selangor falls under:

- Differentiated Market

A differentiated marketing strategy is when a company creates campaigns that appeal to at least
two market segments or target groups (Newton, n.d.) Royal Selangor segments their marketing
efforts across several markets like business corporations, tourists, and affluent customers.

5
Furthermore, the company offers distinct product collections and categories to purchase from
like the Star Wars and Oriental collections, homeware and tableware products, which are able
to target customers with various needs, wants, and interests.

Positioning

Positioning is the effort used by marketers to appeal their products/ brand to their target market.
Royal Selangor differentiates itself by its corporate image, products, and services.

- Image Differentiation

Royal Selangor portrays the image of luxury and quality to its customers as the company
manufactures and sells high quality handcrafted pewter products.

- Product Differentiation

Royal Selangors unique selling point is their craftsmanship. The companys products are made
of pewter which is highly premium and has historical and cultural significance. Furthermore, the
company handcrafts pewter products and customers are able to do self-customization, making
Royal Selangor products exclusive and highly sought-after.

- Service Differentiation

Royal Selangor has an online store which provides international delivery services for buyers. The
company also provides interactive pewter museum and factory visitations, which sets it different
from other likewise brands.

4. Product Mix

Product mix or product assortment refers to the total number of product lines that a company
offers to its customers. The four dimensions to a company's product mix include width, length,
depth and consistency (Suttle, n.d.).

6
Royal Selangor International Sdn. Bhd. has 3 product lines (Selberan, Comyns, and Royal
Selangor). However, Ill only be focusing on Royal Selangor (pewter line) which has numerous
product variants like cufflinks, key chains, flash drives, and wearable in its accessories category.

In my opinion, the company has such diverse product lines (width), categories (depth) and
variants (length) as it intends to target as many segments as possible with different needs and

7
wants, generating large customer base to increase sales and profit and enlarging its market share.
Furthermore, its pewter line has many product categories (depth) like tableware and desktop,
which are closely related to each other as the items sold are generally used in one's everyday life,
meaning the corporate product lines consistency is high. Therefore, it is evident that Royal
Selangor offers great product ranges which are able to satisfy their target audience.

5. Conclusion and Recommendations

In this report, I have learned that a great analysis of an organizations macro-environment is

essential in order to keep track of its growth and sustainability in the future. Not only that,
marketers should also conclude STP and product mix reports to reach potential target market
effectively.

In conclusion, Royal Selangor is a world renowned luxury pewter manufacturer and retailer
which unique selling point is its craftsmanship. With effective marketing plans and strategies
Royal Selangor had designed and implemented since the beginning of time to satisfy its target
markets needs, wants, and demands, the company was able to continuously grow successfully
on an international scale.

Nevertheless, in my opinion, Royal Selangor could consider branching out further by creating a
watch line as luxury watches are making a comeback this year. This would catapult the
company's luxurious and premium image even further. Thus making Royal Selangor one of the
most expensive company in the world.

8
References

Karndean Designflooring (2016) Timeless Trends: Industrial Luxe. Link:

http://www.karndean.com/en-au/floors/our-blog/2016/august/industrial-luxe (Accessed: 12/6/17)

MBA Skool (n.d.) SLEPT Analysis. Link:

http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/8377-slept-analysis.
html (Accessed: 11/6/17)

munKNEE.com (2010) Will Copper Replace Gold as World's "Most Valuable" Metal? Link:
http://www.munknee.com/will-copper-replace-gold-as-worlds-most-valuable-metal/ (Accessed:
13/6/17)

Newton, C. (n.d.) Difference Between Differentiated Marketing Strategy and Concentrated

Marketing Strategy. Link:
http://smallbusiness.chron.com/difference-between-differentiated-marketing-strategy-concentrate
d-marketing-strategy-30462.html (Accessed: 11/6/17)

Perner, L. (n.d.) Segmentation, Targeting, and Positioning. Link:

https://www.consumerpsychologist.com/cb_Segmentation.html (Accessed: 14/6/17)

Pestleanalysis Contributor (2015) What is Environmental Analysis? Link:

http://pestleanalysis.com/what-is-environmental-analysis/ (Accessed: 12/6/17)

Royal Selangor (n.d.) About Us. Link: https://my.royalselangor.com/about-us (Accessed:

11/6/17)

Suttle, R. (n.d.) What Is a Product Mix? Link:

http://smallbusiness.chron.com/product-mix-639.html (Accessed: 13/6/17)