Marketing for a Company in Dubai - Research Paper Example

Marketing Research for any Company in Dubai Company Background UAE mineral water industry is becoming highly competitive as well as saturated. Several leading multinational and domestic organizations are implementing unique strategies in business operation processes in order to grab each other’s market share. This research paper will conduct a marketing research for Masafi mineral water. Masafi is one of the leading multinational Dubai based organizations that manufactures and supplies fresh and pure mineral water across the Gulf region as well as several emerging global market places. This organization not only produces mineral water, but also manufactures and distributes range of products, such as fruit juices and fruit flavoured mineral water. Masafi can be considered as one of the leading mineral water producing organizations in Dubai in terms of revenue generation and market growth rate. Mission Statement Mission statement of Masafi is to make the human lives better, comfortable, healthy and more convenient by ensuring sustainable campaigns to reinforce company’s natural, fresh and pure attributes (Masafi, 2013). Product Background It has been discussed earlier that Masafi has adopted and implemented business diversification and product differentiation strategy in its business operation process quite effectively. Physical Characteristic Most importantly, the organization has expertise themselves in their mineral water business as the organization sources high quality raw materials and resources to manufacture mineral water. The organization sources fresh water from mountain to manufacture high quality mineral water. Apart from mineral water, the organizations used to produce and sell fruit juices, fresh fruit flavoured drinks, packaged basmati rice and fresh tissue paper. These products are of high quality as the management of the organization always ensures high quality of the products in order to ensure significant customer value. On the other hand, the research and development team of Masafi expertly process the products so that the organization can meet the developed market demand and needs of target customers. Finally, the organization used to offers its differentiated products in attractive packages in order to gain the customer preference aspect. Brand Name and Trademark The organization kept similar brand name for each and every differentiated products, such as Masafi mineral water, Masafi fruit juices, Masafi basmati rice and Masafi tissue box. Therefore, it can be stated that the organization has developed and implemented umbrella branding strategy in its business operation process. In terms of trademark, the management of the organization used to keep an innovative tag to patent its differentiated products, i.e. “A World of Good”. It refers to the sustainability and healthiness. Packaging of Product Packaging can be considered as an important aspect for a product that helps the organizations to decide the acceptance level of a particular product. There is no doubt that Masafi has adopted and implemented effective product differentiation strategy in its business operation process. Moreover, the organization always tries to ensure high quality of raw materials and resources in order to offer high quality and differentiated products to the target customers. However, the organization uses high quality plastics and papers in packaging of products. In addition to this, attractive graphics, printing and design over the packages of products actually attract several consumers in Dubai to consume the differentiated products of Masafi. On the other hand, the management of the organization also focuses on the environmental sustainability aspect regarding the packaging of products. The organization usually invest key amount of money in the packaging process to recycle and use the plastics, papers and wastes to pack the mentioned products. Efficient and competent research and development team of Masafi always ensures attractive and high quality packaging of products. Benefits of Products It has been mentioned earlier that the organization never compromises with the quality and sustainability of the products. The organization sources pure and clean water from mountain in order to manufacture and process high quality mineral water. The quality of this particular product influenced several consumers in Dubai to buy the mineral water bottles of Masafi. This clean and pure mineral water helps people to stay feet and healthy. In addition to this, zero calories level in fruit juices and original ingredient of fruits increases the customer preference level of Masafi fruit juices. It is true that, demand for fresh and high quality fruit juices is increasing significantly among the target customers. Looking into this change in demand and needs of target customers, the management of Masafi decided to enter into the fruit juice manufacturing and distribution business. High quality resources and pure fruit ingredients helped the organization to develop a potential customer for this product. Masafi basmati rice also can be considered as an effective food product that can benefit human body. Original and pure basmati rice from several emerging Asian countries always ensures high quality of these products. Pure and high quality basmati rice always can attract people as it never can harm human body. Last but not the least; fresh and fragment facial tissues help the people of Gulf countries to stay fresh. It can benefit the consumers of this Gulf Region to stay fresh in such unfavourable and hot weather. Most importantly, it can be stated that strong and efficient research and development team helps the organization to offer high quality and differentiated products to the target customers. Competitive Advantages of Products Quality can be considered as the major competitive advantages of the products. It is true that the suppliers of the organization used to source high quality and pure raw materials. This aspect increases the competitive advantages of several differentiated products of Masafi. In addition to this, the attractive packaging of products and sustainability in each and every product manufacturing practices help the organization to gain potential competitive advantages over its potential existing organizations in competitive and saturated market place. Customer Background Customers can be considered as one of the important assets for an organization. Therefore, it is highly important for an organization to identify appropriate target customers for its products or services and their buying behaviour as it obviously helps an organization to develop effective business operation strategies according to the nature of products and target market. Target Customers The marketing management department of Masafi generally divided its target audiences into three different market segmentation, such as psychographic segmentation, demographic segmentation and geographic segmentation. In terms of psychographic segmentation, the organization has targeted kids, young adults and women of all ages. The fresh fruit juices are effectively popular among the teenagers and kids. On the other hand, high quality mineral water bottle and fruit flavoured drinks are highly popular among the young college students, young office executives, middle aged men and women, and busy office executives. These products are of high quality. Therefore, it helps the marketing management department to conduct effective psychographic market segmentation for the target customers. In terms of demographic market segmentation, the organization generally targets both men and women for their differentiated products. Facial tissues are quite popular among the young ladies. On the other hand, high quality mineral water bottles are significantly preferred by the both men and women of all ages. In terms of income distribution, people of middle class and upper middle class income group are the major target customers as the o0rganization has developed cost based pricing strategy for the products (Ferrell, 2012). Last but not the least; the organization also has conducted geographic segmentation for its target customers in the developed marketing strategies. It is true that demand for fresh and high quality mineral water, fruit juices and facial tissues is increasing significantly among the people of Dubai and other gulf areas. People try to consume these products quite badly due to the dry and hot weather. Looking into this aspect, it can be stated that favourable geographic environment influenced the people gulf countries to consume these high quality and differentiated products. Consumers are Best Prospects for Products The consumers of Dubai as well as other gulf region are the best prospects for the products that are developed by Masafi as the growing market demand and favourable geographic environment. Demand for these products among the mentioned group of target customers in increasing at a rapid growth rate. Therefore, this demand will influence the management of Masafi to adopt and implement more aggressive marketing strategies and activities. Buying Behaviour Buying habit or buying behaviour can be considered as an important aspect in the world of marketing and business as favourable consumer buying habit or behaviour helps an organization to secure positive market share growth rate. On the other hand, inadequate or unfavourable consumer behaviour can seriously affect the business performance of an organization. Economic drivers and social drivers generally decide the nature of consumer behaviour of people. Dubai as well as entire UAE can be considered as one of the developing regions regarding social and economic growth rate, therefore, people generally try to consume both necessary and luxury products (Kotler, 2000). High quality and pure mineral water can be considered as necessary products for the people of Dubai due to hot and dry weather characteristics of Dubai as well as UAE. These external drivers influence the people to buy the fruit juices, mineral eater and facial tissues of Masafi. Media Preferences The organization has implemented both online and offline promotional strategies in the business operation process in order to create high brand awareness among the target customers. However, in recent years number of internet and social media users is increasing rapidly due to globalization and technological advancement. However, the organization mainly focuses on traditional offline promotional activities (Varey, 2002). Lack of online presence is affecting Masafi’s brand awareness aspect. Price/Value Attitude and Lifestyle People of Dubai as well as entire UAE are both price and value sensitive. They always try to pay money in order to consume the products or services of good quality (Hutt & Speh, 2012). However, the management of Masafi always tries to ensure the quality of the products. But, cost based premium pricing strategy is stopping the people of lower middle class income group to buy the products of Masafi. In terms of life style, these above mentioned target customers always lead traditional and simple lifestyle in which they give high priority to money, value of life and time. These aspects are influencing the management of Masafi to offer quality products in reasonable price level according to the needs of target customers. State of Target Market Segment The states of target market segments are in growing stage as the country is achieving positive economic and social growth rate. It is helping to increase the social demand of the target customers. Most importantly, positive economic growth rate is improving the disposable income and purchasing power of people of Dubai as well as UAE. Therefore, it can be justified the growth stage of target market segments. Industry and Competition This mineral water and soft drinks industry of UAE is becoming highly competitive as well as saturated. This, part of the research paper will analyze the impact of industry and market competition on the business performance of Masafi. Masafi generally operates in UAE potential soft drink and mineral water industry. Direct and Indirect Competition The organization faces direct competition from Alain mineral water, Kinley mineral water, Aquafina mineral water, Evia mineral water, Aqua Panna mineral water, Minute Maid and Tropicana (Kraft, 2007). On the other hand, the organization faces indirect competition from several carbonated soft drink brands, such as Coca Cola, Pepsi, Sprite, Miranda, Fanta and Seven Up. Major Competitors Masafi faces huge competition from both domestic and multination mineral water and fruit juice brands. Alain mineral water is the major regional competitor of Masafi mineral water. On the other hand, Kinley mineral water, Aquafina mineral water, Evia mineral water, Aqua Panna mineral water, Minute Maid and Tropicana are the major global competitors of Masafi mineral water and fruit juices. In terms of sales volume and sales growth rate, Kinley is the major competitor of Masafi mineral water. In terms of market share growth rate, Aquafina and Alain water are the major competitors of Masafi mineral water. In terms of number of outlets, Aquafina and Kinley are the major competitors of Masafi due to their strong and efficient supply chain and distribution network. Advantages for the Competitors It has been mentioned earlier that Kinley and Aquafina are the major competitors of Masafi. Both of these competitors have ensured strong and efficient supply chain network. This aspect has automatically increased the efficiency of the business operation processes of thee organizations. Therefore, it can be stated that these are the major competitive advantages of Aquafina and Kinley over Masafi. Advantages for Company High quality resources and raw materials in the products can be considered as the major competitive advantage of Masafi its potential regional and global competitors. It is true that, the organization always ensures quality of the products by sourcing high quality of raw materials in manufacturing process. In addition to this, competency and efficiency of the research and development team of Masafi has helped the organization to gain potential competitive advantages over its competitors. SWOT Analysis SWOTY analysis is an important strategic marketing tool that can help to determine Masafi’s internal strengths, weaknesses and external opportunities, threats. Internal Strengths High brand image and strong brand equity in UAE and gulf region can be considered as its major strength. High quality of products and effective product differentiation strategy helps the management of Masafi to increase customer preference level. Recently, the organization has successfully established itself as a competent FMCG organization. Slowly and gradually, the organization is diversifying its business operation practices in emerging global markets. It can help the organization to gain positive market share growth rate in near future. Internal Weaknesses Limited online presence is the major weakness of the organization. Lack of implementation of cost leadership strategy is affecting the business performance of the organization as the organization is failing to target people of the middle class and lower middle class income group. External Opportunities Recent financial crisis and global economic recession somehow have affected the economic environment of the country. Low disposable income and reduced purchasing power of the people of lower middle class income group are the major negative consequences of this economic downturn. Therefore, it is highly important for the organization to develop and implement cost leadership business level strategy in the business operation process in order to offer high quality and differentiated products in economic price level to the target customers. Last but not the least; it is highly important for the organization to adopt and implement online marketing and promotional strategies in business operation process as demand for these strategies is increasing significantly. External Threats] Intense market competition and affected purchasing power of people of lower middle class income group can be considered as the major threats for Masafi. It is true that several leading regional and multinational organizations are competing with each other i the UAE soft drink and mineral water industry. These organizations are constantly implementing competitive pricing strategies in business operation process to grab each other’s market share. These aspects are posing real threat to Masafi in UAE market. References Ferrell, O. C. (2012). Marketing Principles. Stamford: Cengage Learning. Hutt, M., & Speh, T. (2012). Business marketing Management. New Jersey: Pearson. Kotler, P. (2000). Marketing management. New York: McGraw-Hill. Kraft, M. (2007). International Direct marketing. New York: Springer. Masafi. (2013). About Us. Retrieved from: http://www.masafi.com/en/corporate/about-us/ceos-message/. Varey, R. (2001). Marketing Communication: Principles and Practice. Stamford: Cengage Learning. Read More