New Product in Qatari Market - Report Example

Marketing Plan - Smart Pen This report embodies a marketing plan for a smart pen developed by Qatar Tech. The report includes a comprehensive discussion about the market research and marketing strategies to be deployed by the company so as to introduce the product and attract the target customers. 1. Introduction about the Company and Mission Statement The company, Qatar Tech, is a Qatari based company which has a history of providing state of the art electronic products with smart and amazing use of technology. Relative to other companies operating in the country, Qatar Tech is a comparatively a new company with a history spanning over 15 years. However, during this short history of 15 years, the company has learned a lot and has adjusted itself in line with the social and cultural values of the country, while ensuring that technological advancements run smoothly. Qatar Tech operates in the consumer electronic industry in Qatar and deals in the manufacturing of smart devices which are specifically made for young generation. The upcoming product of the company is named as “Smart Pen”, which is also being developed for people falling in the young age group. The mission statement of the company is as follows: To enhance the abilities and skills of Qatari youth by equipping them with technology, which is smart and exhaustive. This mission statement is a depiction of the comprehensive vision and long term strategy being followed by the company. As the company aims at targeting young generation, therefore the element of youth is everywhere in its vision, strategies and products. 2. Marketing Research The marketing research carried out and presented in this report has been based on information collected through secondary sources of information. In fact, there has been no primary information source or research instrument has been used in the research. The major sources of secondary information, used in this report, have come from online sources, such as websites, market reports, analysts’ opinions and forecasts, news, journals, books, magazines, etc. All information obtained from these secondary sources has been cited wherever it has been used in the report. The information collected through these sources has been put to different uses. As for instance, understanding the external environment in which the business operates has been crucial to formulate a strategy, which is not only effective to implement the plans of the business, but is also able to ensure existence and smooth operability of the business. Therefore, the CREST model has been in this regard to understand the Social, Economic, Technological, Competitive and Rules and Regulations factors, which can influence the business of the company and the new product, which is about to be launched in the market. Apart from this, the information obtained from secondary sources has also been used to carry out a SWOT analysis for the business, which enables the identification of strengths, weaknesses, opportunities and threats faced by the business. This analysis has provided necessary insights about the internal environment of the company in light of market conditions. In addition to the SWOT analysis, an STP analysis, which includes segmentation, targeting and positioning, has been carried out. The STP analysis is an analysis based on three stages, which enable evaluation of different segments which can be considered in the marketing plan, targeting of the product, and positioning of the product. In this regard also, only secondary information has been used to understand what segments can be targeted by the company to market its product in Qatar, how targeting of customers can be carried out in line with the existing marketing conditions and the nature of the product itself. Lastly, the analysis also enables understanding how the product can be positioned in the market. Apart from the STP analysis, another important model used for carrying out marketing research and developing the marketing strategy for “Smart Pen” is the 4 P’s of Marketing Mix, which include developing the strategy for Product, Price, Placement and Promotion. The information obtained from secondary sources, which include market reports, news and developments related to Qatar’s consumer electronic industry, etc. has been used to determine what are the features of the product, what price level is suitable to be set for the product when launched in the market, where the product has to be placed and what promotion strategies will be adopted to market it. Thus, all the information used in the research has been obtained from secondary sources of information and no primary research instrument has been used. 3. External Environment Analysis For the purpose of evaluating the external environment in Qatar and determining the marketing strategy which is appropriate in the circumstances, CREST model has been used. The CREST model includes an evaluation of external factors, such as Social, Economic, Technological, Competitive and Rules and Regulations factors, which may influence the operations of the company and the product it plans to launch. CREST Analysis Each of the factor included in CREST model has been discussed separately as follows: Competitiveness Qatar has an open economic policy, which has allowed businesses to make their entry into its market by making direct investments in various sectors. This has increased the competitiveness of the country as companies operating in the country compete not only with each other, but also on the global level. Recently, the country has been ranked lowered for its competitiveness i.e. 13th as compared to 11th in 2012 (Thottathil, 2013). This is mainly due to the political turmoil in the Arab world and tensions in the relationship of the country with its Arab counterparts. Certain problems have been highlighted related to the country’s ability to improve its competitiveness including weaknesses in the public institutions, job creation, and labor market. Rules and Regulations Although, the country is quite liberal, but not as much as compared to its counterparts including UAE and Bahrain. Qatar follows strict Sharia’ law and prohibits all economic activities that are not as per the Sharia’ principles. In this regard, it does not accept the jurisdiction of International Court of Justice. The government of Qatar has undertaken a major transformation in its stance and introduced reform-based policies that are aimed at making the country one of the most vibrant economies at the international level. Its main focus is to achieve excellence in oil and gas sector and steer the economic development in all major sectors of the country (Ibrahim & Harrigan, 2012). Economic Factors Qatar has emerged as one of the vibrant economies in the Middle East. The country offers great opportunities for technology-based companies. The country has a liberal economic policy that allows new businesses to set up their operations in the country. The economic liberalization and excellence in financial services being offered to investors the country has experience phenomenal growth in its GDP (Ibrahim & Harrigan, 2012). Social Factors In the recent years, the country has pursued a policy referred to as “Qatarization” that is aimed at employing resources locally. The government is motivating local Arab residents to get education and hold positions in companies. Previously, expatriates held majority of senior positions in companies from various countries. The government is now restricting employment for individuals from other countries through tightening administration of its programs. This change in the country’s policy has led to major educational institutions set up their campuses in the country where Qataris are able to get education of highest standards. Furthermore, the government provides free education to its citizens at the primary and secondary level. Although, the country is quite liberal but at the same it enforces Sharia’ laws and requires its citizens and expatriates to abide by them (Ibrahim & Harrigan, 2012). Technological Factors The IT industry of Qatar has experience significant growth in the last few years and it is further expected to enjoy high level of growth. This is due to great opportunities for the industry to contribute to other industries such as education, telecommunications, financial services, and public sector. The increased role of IT in organizations has attracted investments from major software and technology companies in the Qatar that are contributing to the success of the country seen in the recent years (Minister of Business and Trade, 2010). 4. SWOT Analysis This section of the report provides a comprehensive SWOT analysis of Qatar Tech based on secondary information obtained from different sources. The analysis includes discussion about the strengths, weaknesses, opportunities and threats for Qatar Tech with respect to its plan to launch “Smart Pen” in the consumer electronics market of Qatar. The strengths, weaknesses, threats and opportunities are listed as follows: Strengths The concept of introducing a pen with such features and technology is still a new one in Qatar’ consumer electronic industry, and therefore Qatar Tech will have the advantage of being the first mover. Secondly, young consumers in Qatar have the necessary awareness of benefits associated with technology driven products. Therefore, the company can use this awareness as its strengths to introduce the product to them more easily. Apart from this, there are not many competitors existing in the consumer electronics segment at present, which will definitely be helpful for the company to establish the product and make further progress for doing away possible threats from new entrants. Weaknesses As far as weaknesses of the product are concerned, it is pertinent to mention here that the product is targeted at young consumers. As per the estimated figures in July 2013, out of the total population of Qatar, which was 2,042,444, only 13.9 percent of individuals fall in the age bracket of 15 to 24 years, which include 208,625 males and 74,881 females. This implies that the target population is low and therefore the company cannot expect significantly higher revenues. Opportunities Moreover, the fact that Qatar has one of the highest per capita GDP in the world, it therefore presents an opportunity for the company to go for premium pricing from the start. This will enable developing perceptions among consumers about the image of the product and will give it a distinct position in the market. Threats The foremost threat for Qatar Tech is that any new innovative technology run product carrying similar or even better features than the Smart Pen can result in a drastic decline in the demand and market position of Smart Pen. Moreover, it is not difficult to manufacture such a recording device and present it in the form of pen or any other handheld object, therefore, any new entrant can manufacture similar product(s) and become a direct competitor of the company. Apart from this, there is also a threat that objections may be raised regarding the ethical aspects of using the product, as it may be misused by the consumers and compromise privacy of others. 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