Marketing Proposal for Globalista Magazine - Business Plan Example

Globalista Magazine is set to capture the market with specific focus on the expatriate workers in Dubai. The United Arab Emirates (UAE) has experienced tremendous growth over the past two decades, so has the demand for new media and media diversification. Print media plays an important role in informing, entertaining, and educating the UAE residents. However, the digital media has overtaken all media in terms of viewership and accessibility, making it a potential focus for Globalista Magazine. The Marketing Manager of Globalista magazine has the duty to design a marketing proposal that will fulfil the objectives of the magazine effectively and efficiently. Fundamentally, the magazine will have different segments for both men and women of various age groups, considering the aim of the magazine is to capture wide market with an all rounded content. The marketing orientation will come with costs and benefits, depending on the strategies adopted by the magazine (Gupta 2004, p. 132).

2.1 Micro environmental factors

Various micro environmental factors will affect the operations and business success of Globalista Magazine, depending on the execution strategies adopted by the management. The magazine’s effectiveness in terms of audience reach and acceptability will depend on six major environmental factors namely customers, suppliers, competition, public, and investors. The micro environmental factors are external marketing factors that affect the decisions of the marketing manager although they are beyond the manipulation of the marketing manager or the entire Globalista Magazine fraternity. The factors are significant because they will affect the marketing strategies of the magazine during the initial stages of operation. Accordingly, it is worth evaluating the factors to establish how they will affect the marketing decisions made by the marketing manager of Globalista Magazine (Hall & Lieberman 2010, p. 84).

Customers

Globalista Magazine will operate largely on the Business-2-Customer model that requires keen attention on the target customers. Customers will play a significant micro-economic role in the profitability and sustenance of the magazine. The effectiveness of the marketing strategies adopted will determine the customer base of Globalista Magazine, which in turn will influence the revenue stream of the business. With the full awareness of the business goals of the magazine, the marketing team will focus on growing the customer base through effective advertising, as a way of increasing revenue streams for the company (Gans, King, & Mankiw 2011, p. 91).

Suppliers and Distribution Channel

Globalista Magazine will have various suppliers, who will control the market and distribution channels differently. The production of the magazine will require various supplies that will include printing ink, paper, electronics, printers, and transporters. The suppliers will use their power to control the market at the micro-economic level. For that reason, it will be important to factor in the types, number, and categories of suppliers that will collaborate with Globalista Magazine. The marketing team will foster good relations with the suppliers to ensure smooth flow of goods and services to and from the company premises. The level of cooperation between Globalista Magazine and its suppliers will determine the availability of the magazines to customers. Subsequently, customer satisfaction will depend heavily on supplier power (Hall & Lieberman 2010, p. 52).

Competition

The competitors will affect the marketing decisions of the company, considering the mushrooming of various categories of magazines in the UAE market. Dubai is a rapidly growing economy with a metropolitan population that attract diverse companies from all over the world. Globalista Magazine will focus on fashion because of the fashion enthusiasm in Dubai. However, the competition for fashion products and clients in UAE is stiff, which will require the marketing team of the magazine to adopt strategies that will counter those employed by the competitors. Owing to the prevalence of fashion magazines in Dubai, particularly by international players, the marketing team of Globalista Magazine will factor in the competitor prices in addition to how the rivals differentiate their products. These strategies will help Globalista Magazine team to come up to leverage the market to achieve better results (Gans, King, & Mankiw 2011, p. 111)

Investors

The marketing team will consult and liaise with the relevant investors to steer the company into a profitable future, considering the massive initial investments required for start-ups. The investors and shareholders will be critical players and decision-makers in the operations of Globalista Magazine because they will contribute funds for growth and expansion of the business. With this regard, the marketing manager will involve all the investors in the critical decision –making processes and operation strategies of the company (Hall & Lieberman 2010, p. 64).

PESTLE Analysis

Economic

The economy of Dubai is heavily dependent on her large oil reserves, which are responsible for the growth of the metropolis. With a Gross Domestic Product (GDP) of about $ 600 billion in 2015, the United Arab Emirates trails Saudi Arabia in terms of economic strength. The country thrives on economic diversification although oil exploration and exportation are her major revenue earners. Abu Dhabi and Dubai are the most preferred areas by international tourists, owing to their magnificent facilities. Currently, oil accounts for over 80% of UAE’s national budget. In 2013, the GDP per capita of UAE stood as $63,181 while the GDP growth was approximately 4.8%. The economy grew rapidly with overall inflation in the previous year standing at 1.4%. With a labour force of over 4 million people and an unemployment rate of about 3.5%, UAE is an ideal investment destination, particularly for Globalista Magazine.

Socio-cultural

Concerning the socio-cultural factors, it is worth noting that UAE is a holiday destination for international tourists. Besides the country hosts many global expatriates who help grow the economy through various economic projects and initiatives. The low unemployment rate estimated at 3.5% means that over four million people serve in the UAE labour force and can afford to follow fashion trends. This aspect makes the idea of launching Globalista Magazine viable in UAE. The vast majority of the labour force in UAE is expatriates and the number continues to grow rapidly. The affluent lifestyles of the UAE residents warrant the launch of Globalista Magazine that will focus on the latest fashion trends (Murray-Webster & Williams 2010, pp. 88-91).

Technological

The United Arab Emirates, unlike her Arabian counterparts, anchors her economic growth and aspiration on technology and innovation, which will affect the marketing strategies of Globalista Magazine. In essence, the numerous technologies that Dubai continues to embrace may favour the market for Globalista Fashion magazine or be unfavourable, depending on the marketing and operations strategies of the company. In view of that, the marketing department of Globalista Magazine will incorporate research and development (R & D) as a way of keeping abreast with the latest technological trends in the fashion industry. Currently, digital media has overtaken print media in terms of viewership and readability statistics, which will prompt the company to focus on online advertising.

Political

Although the United Arab Emirates does not have a significant political clout on investors like most developed countries, she operates by a set of norms that are political in nature. Globalista Magazine, by virtue of being predominantly a fashion magazine, will target the metropolitan population of Dubai. Currently, UAE has a unique form of government where the family of Sheikhs run the political matters, some of which have far-reaching impacts on the economy. Accordingly, the company will scrutinize the tax policies, trade tariffs, and fiscal policies of the country in relation to magazines and the mass media business at large. The amount of tax levied by the UAE government on magazine companies will affect the business environment of Globalista magazine (Murray-Webster & Williams 2010, pp. 88-91).

Legal

When it comes to the legal factors, it is worth noting that Dubai is largely an Islamic state. It means that most of the business laws are in tandem with Islamic customs and the Sharia Law. The Marketing team of Globalista Magazine will comb through the relevant legal requirements for start-ups and operations to forestall legal suits arising from law breaking. The legal analysis that the company will have to familiarize with will include the consumer laws, labour laws, safety standards, and the ethical laws.

Environmental

Dubai is largely a desert countries and the government takes her environmental policies strictly, particularly for foreign companies. Accordingly, the marketing manager of Globalista Magazine will have to consider the environmental laws such as waste disposal procedures and recycling policies. Besides, the environmental laws, other environmental concerns will affect the marketing choices of the magazine. For instance, the apparel to feature on the magazine and the economic activities of most Dubai residents will determine the marketing strategies of the company (Murray-Webster & Williams 2010, pp. 88-91).

SWOT Analysis

Strengths

Globalista Magazine is set to stir up the market because of a number of her inherent strengths. In essence, the magazine will be the first of its kind to cover the entire UAE in terms of providing content for people irrespective of their diversity. The existing fashion magazines focus on the urban trends that are mostly western and in the process, forgetting the unique Arabian fashion trends that the natives like. Subsequently, the magazine will create a niche in a largely unexplored market. Besides, Globalista Magazine has a strong investor backing and a ready market because of the affluent lifestyles of the residents of UAE. The expatriate population in UAE will be the focus of the company, considering their diversity and fashion needs. Currently, Globalista has sealed lucrative deals with fashion, modelling, and apparel companies that are willing to boost the popularity of the company once it launches the new leafy magazine (Pahl & Richter 2007, p. 18).

Weaknesses

Despite the numerous strengths that Globalista magazine has, it may have some weaknesses that required improvement. For example, the magazine will face the challenge of dealing with an unknown market with a strong sense of diversity. Besides, the magazine will have to deal with the challenges of start-ups, especially in the United Arab Emirates where the laws governing expatriate companies are stringent. However, the company will liaise with the relevant government agencies to set everything in order, especially all the factors within its microenvironment (Pahl & Richter 2007, p. 22).

Opportunities

The large population of expatriates in UAE, particularly in Dubai and Abu Dhabi, is a huge opportunity for the marketing team of the magazine to exploit. UAE is diverse in terms of her population, cultures, lifestyles, and labour force. This diversity presents a ready market for Globalista Magazine, especially when it comes to the trending topics in the fashion industry. The marketing team of the magazine will exploit the ease of doing business in Dubai so that it can leverage as many stakeholders as possible to join in the launch. Fundamentally, the strengths of the magazine will act as stepping-stones for concurring new markets and exploiting the available opportunities that exist, the threats notwithstanding.

Threats

The marketing team of Globalista Magazine will face a few threats, which are common to all marketing environments. The competition will be the greatest threat to the profitability and sustenance of the magazine, considering the infiltration of the UAE market by many foreign magazines. However, the magazine plans to counter this threat with massive and strategic marketing initiatives, especially during the initial period of its launch. Unlike most of the western world that operate by the liberalism model, UAE is largely a conservative regime, which calls for careful attention when handling fashion matters (Murray-Webster & Williams 2010, pp. 88-91).

Market Segmentation Criteria

The United Arab Emirates will present different markets for Globalista Magazine, and this situation requires the company to segment its market accordingly. The magazine will cater for a broad range of clientele, some of whom may be conservative while others will be liberal. Accordingly, the major categories of market segmentation that the magazine will employ will include geographic, occasional, demographic, behavioural, cultural, psychographic, and multi-variable account segmentations (Wedel & Kamakura 2006, p. 43). With regard to geographic segmentation, the magazine will divide her market into two namely Dubai and Abu Dhabi, both of which will provide different diversities. The cultural segmentation will be in concurrence with the Muslim majority in United Arab Emirates, who prefer conservative culture and fashion. Besides, the marketing team of Globalista Magazine will consider the behaviours and lifestyles of her potential customers during the market segmentation process. Occasional market segmentation and multi-variable account segmentation will go concurrently in that the marketing team will occasionally segment the market to suit the company’s profitability goals. The Marketing manager, together with his team, will institute various segmentation criteria (Mcdonald & Dunbar, 2013, p. 21).

The marketing department of Globalista Magazine will propose and use various marketing segmentation criteria in two different markets. The two identified markets will include Dubai and Abu Dhabi because of the diversity and population of the two regions. Such markets offer potential opportunities for Globalista Magazine to exploit when the company executes the marketing segmentation criteria appropriately. The major marketing segmentation criteria will comprise of measurability, substantiality, accessibility, practicality, and differentiability (Mcdonald & Dunbar, 2013, p. 24).

• Measurability: Concerning measurability, the marketing team of Globalista Magazine will seek and utilize the available data in relation to the two markets. The two markets, namely Abu Dhabi and Dubai, have specific economic data that indicate their attractiveness to investors relative to other regions. The marketing department will conduct a robust market research to establish the size of the market, the market preferences, and the competition. The data will be useful in determining whether the two markets will be viable for investment (Mcdonald & Dunbar, 2013, p. 24).
• Accessibility: the two markets ought to be accessible in terms of communication and distribution. The marketing team will use the marketing strength of the magazine to assess the ease with which the Dubai and Abu Dhabi residents can access Globalista Magazine. The survey will conclude whether digital or print magazines will be effective in terms of accessibility to the people of Dubai and Abu Dhabi (Wedel & Kamakura 2006, p. 48).
• Actionable: the Globalista Magazine will seek to execute a workable marketing mix for the two market segments. The process will include coming up with evidence to support the practicability of the two market segments in relation to sales and other factors.
• Substantiality: Globalista Magazine will charge a marketing taskforce to assess the size of the market, and evaluate whether the two different markets will warrant profitability for the company. This information will inform the marketing budget to be used, especially the spending power in the two markets. Another important aspect of substantiality will be the ability of the markets to sustain the company in the long-term (Mcdonald & Dunbar, 2013, p. 24).
• Differentiability: the two markets will be viable only when they will have proved to be externally homogenous and internally homogenous. It means that all customers within one segment should share characteristics and preferences and the market differences ought to be unambiguous. These segmentation criteria will help the marketing team at Globalista Magazine to design the fashion magazine according to consumer preferences and expectations (Wedel & Kamakura 2006, p. 43).

Targeting Strategy

For Globalistic Magazine, the target customers will comprise of the expatriate workers in the United Arab Emirates. The magazine will appeal to the younger generation of less than 40 years because such target market has a strong sense of fashion when compared to the older generation. The fashion magazine will offer different products for each segment based on lifestyle, age group, residence, and background, considering the diversity that exists in the United Arab Emirates. The different products offered for each market segment will include different fashion information covered by the magazines in different articles to cater for the segmented market. In essence, each of the market segments will receive a customized product, considering the level of rivalry, maturity, multi-segment, and expected sales volumes (Lamb, Hair, & Mcdaniel 2012, p. 32).

Reference List

Gans, J S, King, S P, & Mankiw, N G 2011, Principles of microeconomics, Cengage Learning, South Melbourne, Vic.

Gupta, G S 2004, Macroeconomics: theory and applications, Tata McGraw-Hill, New Delhi.

Hall, R E, & Lieberman, M 2010, Macroeconomics: principles & applications, South-Western Cengage Learning, Australia.

Lamb, C W, Hair, J F, & Mcdaniel, C D 2012, Essentials of marketing, South-Western Cengage Learning, Mason, Ohio.

Mcdonald, M, & Dunbar, I 2013, Market segmentation how to do it, how to profit from it. John Wiley & Sons, Chichester. 

Murray-Webster, R, & Williams, G 2010, Management of risk: guidance for practitioners, The Stationery Office, Norwich, England.

Pahl, N, & Richter, A 2007, SWOT analysis: idea, methodology, and a practical approach, GRIN Verlag, Munchen.

Wedel, M, & Kamakura, W A 2006, Market Segmentation Conceptual and Methodological Foundations, Springer US, Boston, MA.