Market Selection Process in the UK - Research Paper Example

Marketing Report al Affiliation: Market Selection Process Among the European countries, UK has the most diversified population. For instance, statistics indicate that half of London residents are non-locals. In addition, the number of Muslims in the country is very high. The number has been soared by immigrants who settled in the country decades ago and business people who have been moved to the country by multinational companies that have invested in the country. Therefore, Halal will target this population which still holds on to their religion and its teachings. As a result, they are willing to spend their income on foods that have been described in Quran. Marketing Environment Political Environment The UK has one of the most stable political environments. The political leaders have ensured that politics does not affect the performance of the business in the market as this aspect would lead to loss of job opportunities for the locals. This can be ascertained by the latest election which was concluded days ago. Despite heightened political activities in the country, business operations were running normally (Paley, 2007). In addition, political steered clear of any issues that might destabilize the business environment. As a result, the country provides a serene environment for Americana. Social Environment The UK population has an adventurous culture. Therefore, they like to taste other people’s culture. In addition, they appreciate other people ways of doing things and diet. However, they like to be associated with products and services that are produced locally. This aspect will be significant because Halal will meet the interests of the target market. In addition, this will create an opportunity for the local population to taste Muslim delicacies. This will attract more non-Muslim customers towards the product, some of which will end up becoming loyal to the products (Malhotra & Sciglimpaglia, 2009). Economic Environment UK has a stable economy. Although the country was affected by the financial crisis in 2008, it has been able to recover slowly. Initially, people were more reserved with their spending. However, this has changed over the years. People are now spending on their food of choice. The pound remains strong and stable. In addition, the interest rates in the country remain low in comparison with the neighboring countries. Therefore, in case the business will decide to expand its operations in other European countries using UK as its main base, it will be able to enjoy favorable exchange rates (Shankar & Carpenter 2012). This will be significant in enabling the business to penetrate and segment other markets. Technological Environment The largest market segment in UK composes of the young generation. These are people who are innovative. As a result, the country enjoys a rich source of innovative minds that have embraced the new technologies. In addition, the government has played an important role in enabling technological giants to set their base in the country. As a result, modern technology and human resource to run these technologies is readily available in the country. This will be critical in increasing the level of production and reducing cost of the operations by the business. Ecological Analysis The UK population is very sensitive on matters associated to environment. Therefore, they like to be associated with companies that participate in corporate social responsibilities. Therefore, Americana should consider taking plant in tree planting or other ecological related activities in order to improve its reputation in the market. Legal Environment Although the country has been said to have laws that are friendly to the business, the country has very strict rules when it comes to products that are to be consumed by its citizens. Bodies such as Food Standards Agency ensure that all companies producing food for the market observes the necessary health standards. Failure to observe these standards might lead to cancelation of the business license. Competitive Environment Major competitors in UK markets include supermarkets and restaurants. For instance, Tesco, Asda, Sainsbury, Morrisons, Waitrose, Aldi, etc are some of the supermarkets that have stocked different meat products. The Muslims in the country have become used to these countries. On the other hand, restaurants such as McDonalds and KFC hold a very large market share in UK (Malhotra, 2012). In addition, they have a strong financial base as they have diversified their operations to different parts of the world. Furthermore, customers have become loyal to products and services that are offered by these businesses. As a result, Americana need to develop a strong marketing campaign that will enable Halal to penetrate this competitive market. Small vendors and hotels are also major competitors. The local population has become used to products from these vendors (Cadogan, 2009). Many of these are located in the neighborhood. Although many businesses ignore their impact, they serve a very large market in the US. Therefore, Americana should take into consideration the threat posed by these vendors. Market and Potential According to 2011 census, the number of Muslims residing in UK is approximately 3 million (Shankar & Carpenter 2012). Majority of these people are working in global businesses that have their subsidiaries in the country. Therefore, they have a disposable income which they are willing to spend in high quality products. Besides the Muslims, Halal will also target non-Muslims who are willing to change their diet to something new. This is a number that can support the product in the market. The consumption behavior of Muslim is unique compared to other religious groups. They mainly steer away from foods that are prohibited by Quran. Therefore, they would be eager to be associated with products that observe the religious values when preparing the meal. Conclusion One of the key opportunities is the high demand for products that observes the Islamic values. In addition, there is a high number of Muslims in the country. However, the threat of competition might slower the penetration of the product in the market. On the other hand, lack of experienced employees who have the skills on how to segment the target market is one of the major challenges that are likely to face the company. In order to solve these companies, the firm should outsource some human resource from Qatar and other areas that have high Muslim population. In addition, in order to reduce the threat of competition, the company should consider acquiring an already existing firm in the UK market. References Cadogan, J. W. (2009). Marketing strategy. London: SAGE. Malhotra, N. K. (2012). Basic marketing research: Integration of social media. Boston: Pearson. Malhotra, N. K., & Sciglimpaglia, D. (2009). Basic marketing research: A decision-making approach. Upper Saddle River, NJ: Prentice Hall. Paley, N. (2007). The managers guide to competitive marketing strategies. Princeton, NJ: Recording for the Blind & Dyslexic. Shankar, V., & Carpenter, G. S. (2012). Handbook of marketing strategy. Cheltenham, UK: Edward Elgar Pub. Read More