The Body-Washer has been introduced to the European market just lately aiming for the healthcare sector. Due to the versatile concept of the product and the ease of use additional interest from the hotel sector and from private households for wellness and nursing purposes arises. Furthermore, the Arabic peninsula, in particular from the UAE, has signaled interest in the unique product.
Subsequently the UAE market in this regards is analyzed from two different perspectives. The analysis was done on a micro- as well as on a macro-environmental view. The investigations are on the company itself, the suppliers as well as customers and competitors on the one hand side and local aspects such as political, economic and social trends on the other. Together with the SWOT analysis of the product with respect to the UAE market a marketing strategy has been developed. As part of the marketing strategy, a market segmentation was done in order to derive the target market for the Body Washer in the UAE, the health care as well as the tourism sector.
For the target market segments a “4P” analysis (price, product, place and promotion) has been done followed by an implementation plan accordingly. The conclusion and the ITM checklist are finalizing the marketing assignment on the Body Washer marketing plan for the UAE summarizing the main aspects.
Table of Contents
List of Abbreviations
List of Figures
1.1. Problem Definition
2. Marketing Plan
2.1. Marketing Environment
2.1.1. Microenvironmental Analysis
2.1.2. Macroenvironmental Analysis
2.2. SWOT Analysis
2.3. Marketing Strategy
2.3.1. Market Segmentation
2.3.2. Market Targeting
2.4. Marketing Mix
3. Roll-Out Plan
5. ITM Checklist
List of Abbreviations
Abbildung in dieser Leseprobe nicht enthalten
List of Figures
Figure 1: SWOT analysis (self-developed)
Figure 2: Customer profile for different market segments (self-developed)
Figure 3: The Four-P framework according to Jerome McCarthy (Kotler 1999, p. 96)
Figure 4: Body-Washer GmbH FY11 Project Plan (self-developed)
1.1. Problem Definition
The Body-Washer GmbH is a very small start-up company located in Schliersee, Germany. The company’s first and only product, the Body-Washer, by now can only be ordered in direct contact to the company owners. How can such a small and inexperienced company enter the markets of the United Arab Emirates (UAE)? What market segments should be targeted? How should the marketing mix for the Body-Washer look like in this marketing environment?
This paper provides a marketing plan for the Body-Washer in the UAE. Markets for different applications are identified and assessed by volume. Roll-out-strategies for the most promising market segments are recommended and scheduled.
After working out the standard format of a marketing plan (Kotler 2008, p.152ff), an intense research on the internet was executed to gather the needed data of the Body-Washer GmbH and the UAE for a microenvironmental (MiEA) and macroenvironmental analysis (MaEA). The output of the MiEA and MaEA is broken down by an SWOT-analysis to identify the strengths and weaknesses of the Body-Washer GmbH and its product the Body-Washer and the opportunities and threats of the UAE’s Markets. According to the results of the SWOT-Analysis a market strategy is defined. The marketing mix is planned considering the “4 Ps” (product, price, place, promotion). Finally a roll-out-strategy is re-commended and scheduled using a Gantt chart. The ITM checklist at the end of this assignment provides an outline for the future strategy and marketing plans.
2. Marketing Plan
2.1. Marketing Environment
In order to develop an appropriate marketing plan the first step is to collect the necessary data by executing a MiEA and MaEA. The microenvironment consists of the stakeholders inside and outside the company, which can affect its ability to serve its customers. The macroenvironment consists of more general forces (e.g. the economic situation) that affect the microenvironment (Kotler 2008, p.179).
2.1.1. Microenvironmental Analysis
The Body-Washer GmbH is a very small owner-led start-up company located in Schliersee, Germany (Body-Washer GmbH 2010). Due to limited information about the company no further statements about the company’s internal environment (e.g. organizational structure or financial situation) can be made.
For the European patented and TÜV-certificated Body-Washer, which is the company’s only product, series production started recently (Lillegraven 2010, p.1). Even an intense research on the internet did not bring up any information about the production facilities and capacities of the Body-Washer GmbH. Therefore, for the further case study it is assumed that production capacity is not a limiting factor.
Suppliers provide the resources needed by a company to produce its goods and services (Kotler 2008, p.180). The Body-Washer GmbH announces that the components of the Body-Washer are of high quality but no detailed information about the suppliers and their capacities are available.
The Marketing Intermediaries
Marketing intermediaries (e.g. resellers or physical distribution firms) help a company to promote, sell and distribute its goods to final buyers (Kotler 2008, p.181). The Body-Washer can only be ordered in direct contact to the company for example via the company’s website “www.body-washer.de”. Therefore, it will be assumed that the Body-Washer GmbH has few or even no contacts to resellers on national or international level yet. No detailed information about other marketing intermediaries is available.
According to Kotler (2010, p.182) there are six types of customer markets: consumer markets, business markets, reseller markets, institutional markets, government markets and international markets. No information about the actual customers of the Body-Washer GmbH is available. Nevertheless some assumptions can be made according to the following Body-Washer’s characteristics: The Body-Washer mainly fits two customer needs: everyday hygiene and wellness (Body-Washer GmbH 2010). Therefore on the one hand customers on the consumer market could be private households with elderly or physically handicapped household members. These households are interested in the Body-Washer as a healthcare application, which helps the concerned household members to stay more independent in sanitary matters. On the other hand customers on the consumer market could be private households with higher incomes, which are interested in the Body-Washer as a wellness- or luxury application. There could be customers on the government, institutional and business markets as well: Customers that offer services on the healthcare or wellness sector, e.g. hospitals, nursing homes, hotels and spas.
To be successful a company must provide greater customer value and satisfaction than its competitors (Kotler 2008, p.183). Due to the fact that the Body-Washer is protected by patent for Europe (Lillegraven 2010, p.1) there are no direct competitors to the Body-Washer GmbH in the European market. The situation in the UAE could be different because the Body-Washer GmbH did not apply for a patent outside Europe yet. Even though by now there are no direct competitors in the UAE, there might come up similar products by competitive companies as soon as the Body-Washer will arise international attention.
The Body-Washer GmbH claims that the Body-Washer is a world first but there are several very similar devices patent-protected by the United States Patent Office. The first patent already was filed in 1956.
There are different types of publics (e.g. media publics or government publics), which can affect the company’s ability to achieve its objectives (Kotler 2008, p.183). No information about the perception of the Body-Washer GmbH and its product the Body-Washer by different publics are available. The fact that no further information about the company is available on the internet could give evidence that the Body-Washer GmbH has not been broadly recognized at all, maybe due to the lack of professional marketing.
2.1.2. Macroenvironmental Analysi s
The macroenvironmental analysis focuses on identifying possible factors that will affect the success of the Body-Washer business on the UAE market. As a first step for a successful entrance, as well as a further growth of the Body-Washer industry on the new market, the following external trends based on the PEST analysis will be further considered.
UAE is a union of seven sovereign sheikdoms (absolute monarchies), formally established in 1971: Abu Dhabi, Dubai, Sharjah, Fujairah, Ajman, Umm al Quwain and Ras al Khaimah. The prime minister of UAE, Mohammed bin Rashid al-Maktoum is the head of the government, having responsibilities for foreign affairs, nationality and immigration issues, health, currency, labor relations, etc. (Government of UAE 2010). The seven emirates have local governments with specific power in areas like tourism and health. The largest and most populated emirate is Abu Dhabi. 90% of the country’s total area is Abu Dhabi and Dubai.
The government is currently active in improving conditions for international investors. A new law is expected soon, which will enable international investors to own a greater stake in business they establish in UAE. The actual law limits an international investor to 49% ownership of business and obliges the investor to find an Emirati as a sponsor (except the free zones, where international investors own 100% of their business). (UAE Yearbook 2010)
Similar to the global economy, UAE passed a critical recession in 2009 due to the economic crisis. Thanks to good governmental packages and because trading here has historical strengths, UAE successfully managed the way out of the economic crisis. GDP in 2010: 239.65 Billion US$ (Real GDP Growth is estimated to increase with 3.2% in 2011) according to the UAE GDP Data & Country Report (gfmag). The currency is the UAE Dirham (AED) with a current exchange rate of 4,7EUR = 1AED. The inflation remains stable at 0.9%. UAE imported goods from Germany in 2009 in value of 8.5 Billion US$ (out of a total imports of 145 Billion US$). With this figures, Germany reaches the 4thplace in the ranking for the main supplier countries to UAE.
UAE partners are very attractive business partners for German companies. Hospital and hotel facilities are the main infrastructure projects where investment chances are highly considerable. The majority of international companies in the region are located in Dubai, taking advantages of the Dubai airport and of Jebel Ali Port (the world’s largest man-made port). Trade fairs in Dubai are the ideal place for small and medium companies to expose their products and catch the public’s interest.
The main drivers of the UAE’s economic success are the oil and gas sector. UAE is the third largest oil exporter worldwide. But, future growth of UAE’s economy plans to reduce its oil dependence to 20% in the next 10 years and contribute therefore in other sectors, like Health sector (hospitals, health cares, medical centers) and Touristic sector (hotels and wellness). One example is the Dubai Healthcare City, which opened in 2010 and consists of a university medical complex, a research centre, facilities for long term care and health education, clinics for rehabilitation and sports medicine, etc. (Dubai Healthcare City 2010).
The UAE is a stable business environment, where the infrastructure is also growing. Huge water projects are developed, UAE having the highest water consumption per inhabitant in the world. Dubai plays a leading economic role in the region. There is only one seven star hotel in the world, located in Dubai. Those premises offer a high potential of success for the Body-Washer business (Business Setup in UAE Free Zones).
The population in UAE sums 8.19 million people, 80% living in Abu Dhabi, Dubai and Sharjah. Only 20% of the inhabitants are national UAE, the majority consists of expatriates, mainly from India, Pakistan and Bangladesh. UAE has the world’s highest migration rate (22.98%). The main ethnic groups are Emirati (19%), Arab and Iranian (23%), South Asian (50%) and other expatriates (8%). A small number of emigrates from European developed countries are attracted by UAE. 88% of the population is urban and the number of male citizens is double in comparison to the number of females. The average life expectation is 75 years.
The climate of UAE is in general hot and dry; the maximum temperature in July and August reaches around 50 °C and the lowest in January – February (10-14 °C) (UAE Interact). The official language is Arabic. English is the trade language, communicating in English is very well accepted in the UAE. Islam is the official religion in the UAE with 96% of Muslim population. Nevertheless, personal freedom and other minority religions are perfectly admitted. The local customs and traditions are influenced by the Islam religion, without making UAE a closed society. Lifestyle in UAE has changed according to the welfare of the population.
Similar to the other non-oil sectors, the technology sector gets a higher government attention in 2011 and the coming years. Several programs for sustaining the innovations, the speed of technology transfer and attracting more skilled emigrants are in the focus of the UAE government. Several fairs, international conferences and exhibitions are planned in Dubai in 2011 (Hospital Build Middle East 2011, 13-15 June 2011; Wellness & SPAs Middle East 2011, 24-26 May 2011).
 European patent pending
 This system is somewhat incoherent because not all different markets exclude each other, e.g. there is an intersection between institutional and government markets as well as between international and business markets. Nevertheless this system is used to shape out the relative markets and market segments for the Body-Washer in the UAE in chapter 2.3 of this assignment.