B2b - G4s Cash Management Solution

G4S Cash Management Solution  

Market Entry Strategy  

Consumer Electronics Retailers in Egypt

INTRODUCTION (104) 

G4S the leading integrated Security Company specializing in providing security product, services and solution. Operating globally in more than 101 countries for more than 10 decades providing armored car services for money collection and deposit in banks, security escort, consulting, and complemented with G4S latest innovative-in-store cash management services and products - CASH360 and extending B2B end-to-end services for cash intensive economies in respective countries. To decide on new market entry for G4S cash management product CASH360, we need to examine two different prospects of the B2B marketing referred to as V1 or Transactional view and V2 or relational view and their respective aspects. 

V1 – Market Segmentation, Target, and Positioning (248) 

B2B market is characterized by a multilayer segmentation approach based on different variables as described by the classic article by Shapiro and Bonoma (1984) which provided segmentation model referred to as onion model. The outer layer of their model refer to demographic segmentation (i.e. geography, size, industry,...) and gradually drive its way to center through operating variables (i.e. technology, capabilities,...), purchasing approach (i.e. Purchasing Function Org., Power Structure, Purchasing Policy,…), situational factors (i.e. urgency, size of order,…), and personal characteristics (i.e. attitude to risk, loyalty,…). According to Brennan et al. (2014, p139), the company’s Demographics and to some extent also the Operating Variables can be considered to be macro-level segmentation. However, the micro-level segmentation is determined by the macro-level segmentation when looking into the purchasing behavior of the companies whether it is organized through a formalized approach or decentralized, and the underlying situational and personal factors which are not company specific rather than, more contextual and behavioral and they effect the buying approach of a company. For example the size of the company can indicate the type of purchasing approach or the technology a company deploy can have a specific application, etc. Segmenting the market helps in targeting the right for the value proposition of a company because different customers have different needs and looking for different value proposition as a result a company should position their proposition so that it respond to the specific needs of a customer segment. G4S Macro-Level segmentation is detailed in below table: 

 V1 – Marketing Mix and Route to Market (190) 

G4S new market entry approach in dealing with only few buyers, identified through STP process to targeted large consumer electronics retailers in Egypt. Perhaps the 4P’s (Product, Price, Place, Promotion) application for coming up of a marketing mix might be not the most optimized approach of analyses. Considering the long presence of the company in the Egyptian market which exceeds 20 years, G4S relies on its B2B relationships with its existing customers and prosperous new ones, rather than trying to conduct a short-term opportunistic transactions which is the essence of B2B marketing mix rather than the optimization of the traditional marketing mix based on 4Ps.