Marketing of New Restaurant Food Business Named Hangout in the United Arab Emirates - Research Paper Example

The United Arab Emirates has been enjoying the modern, diversified and growing retail food sector over the years. The increasing development of new hypermarkets in the last few years is the key driver for rapid growth in the retail food sector. 90% of the total consumed food especially food ingredients s outsourced from markets and processed in this market. Therefore the domestic firm has huge opportunities in the food market of UAE. Consequently, the people have high disposable income and for this reason, they are very much reluctant to pay a higher price for food if it is presented in a luxurious way and environment.

Nevertheless, very few domestic businesses operate in retail food sectors as luxurious restaurants like multinational food chains are present in this market. Therefore, the future growth of this new business has been identified after a detailed analysis of the business environment, market trend and consumer behaviour. The main objective of its marketing strategy would be to position the brand as a luxurious restaurant with a touch of western culture. To develop a brand the company also needs to offer varieties of dishes considering the domestic culture and food habits and also popular foreign recipes.
Current situation (Microenvironment)
Environmental factors have a major impact on business operations. Important environmental factors are highly necessary to analyze the feasibi8lity of a new business. It is the first stage of the marketing planning process of a new business. Important macro-environmental factors are political or legal, economical, social or cultural and technological factors of the market.

The environmental analysis provides a detailed overview and understanding of a specific industry in a specific market. The economy has a substantial impact on this new food business. UAE is an emerging economy driven by multiple strength areas of it like per capita income, consumption power and consumption trend, enrichment in the living style of people, etc. Though the country imports 90% of its annual food consumption from foreign markets but it can be neglected as a weakness of the economy if it is compared with the huge export of oil.

Growth and opportunity of the restaurant business highly depend on the positive economic factors of this market like income level and consumption trend. Significant growth in the gross domestic product is the overall positive aspect of this economy. The economic growth of major cities like Dubai, Kuwait, Abu Dhabi is average 2.9%. This economic growth leads to high income and a rising trend of people adopting modern and luxurious food habits (Rncos, 2010,p.1). Legal This company will operate a restaurant food business which is a very much sensitive category of business.