Category Archives: Marketing

International Marketing Plans

Question

Deliverables 2400 words. In addition to organizing sections of the marketing plan that you have been working on for your expansion, you do the following this week:
Add the marketing plan section, which should include the following:
• Identify 1 promotional strategy and advertising message that you recommend differentiating your brand.
• Establish where the product will be available, naming at least 3 distribution outlets, with one being an online storefront.
• Develop the pricing strategy.
Develop your client’s international marketing plan. It’s time to polish the international marketing plan from Weeks 1–3. The plan will include the following sections:
• Executive Summary: This summarizes major points of the plan.
• Introduction: Include a brief explanation of the company, product, and the country chosen for global expansion.
• Cultural Analysis: Briefly describe how the product fits your selected country’s culture.
o Include the following information about expansion into your particular country:
? Geographic Research
? Target Market Population and Demographics
? Economic Research
? Legal Research
? Political Research
? Government Considerations
? Language Considerations
• Competitive Analysis: Include information about the brand’s competition.
o The 4 Ps of marketing
o Industry information
• Marketing Plan
o Marketing Objective
o Global Positioning Strategy
o Product Differentiation
o Advertising and Promotional Strategy
o Distribution Strategy
o Pricing Strategy
• Evaluation
o Measuring Effectiveness

Sample paper

International Marketing Plans

Executive Summary

            Exxon Mobil seeks to increase its presence in the UAE region. Since its entry into the area, the company has primarily focused operations in Abu Dhabi, UAE’s capital. The UAE region is attractive for investment owing to a number of factors. First, the region is located in a suitable geographical location with access to the sea. This will make exportation easier. Second, the area has a large population mainly comprising of immigrants. This provides a large workforce for the company. Third, the language spoken is favorable for the company. Although Arabic is the official language, English is the language of business. This makes it easier for foreign companies to operate businesses in the region. Fourth, the UAE region has a stable government in place, with minimal conflicts. Fifth, the UAE government has introduced favorable trade policies in the region. One of the key policies is the free trade zones, which provide special privileges to businesses operating in the free zones. It is worth noting that the UAE region is highly competitive. Nonetheless, the company can be able to beat the competition by applying innovative technologies and through product differentiation.

Introduction

Exxon Mobil is a large multinational corporation headquartered in Texas, United States. Exxon Mobil commenced operations in the 1870s as Standard Oil Company. Over the years, the company has made acquisitions or entered into partnerships as it continued to expand. The company started as a regional marketer of kerosene in parts of the United States. Over the years, Exxon Mobil has evolved to become the largest petroleum and petrochemical company in the world. The company focuses on oil development and production. Oil development involves the manufacture of lubricants and petrochemicals for industrial use. Exxon Mobil has operations in a limited area of the UAE region. The company has concentrated in oil development and production within Abu Dhabi, Dubai. In the recent past, the company has developed interest in expanding oil production and marketing within the larger UAE region. The paper is a presentation of a marketing plan that Exxon Mobile will apply in expanding operations to the larger UAE region.

Cultural Analysis

Geographic Research

The UAE is an area along the eastern cost of the Arabian Peninsula. It borders the states of Oman, Saudi Arabia, and has maritime borders with the state of Iran. UAE has a coastline at the Arab Gulf, which it shares with the Gulf of Oman. The coastline is very important since it allows for oil exportation via sea. The UAE region consists of seven emirates that came together to form one strong state. The seven include Dubai, Abu Dhabi, Ras Al-Khaimah, Fujairah, Umm Al-Qaiwain, Ajman, and Sharjah (Al‐Suwaidi, 2011). The seven states united into a federal state in 1971 by adopting a similar constitution. Abu Dhabi is the largest emirate, comprising of over three-fourths of the total land area under other emirates (Al‐Suwaidi, 2011). Abu Dhabi is the hub of oil and gas production in the region. It also serves as the capital of the UAE region.

Target Market Population and Demographics

UAE demographical trends reveal high immigration status into the country. According to Al-Suwaidi (2011), UAE had a total population of 558,000 citizens in 1975. More than third of this population comprised of UAE nationals. Data collected in 2015 indicates that the demographical trends has significantly changed over the years. Due to immigration, the population has increased almost exponentially to the current 6,072,475 (estimated) (Central Intelligence Agency [CIA], 2017). About 88 percent of the current total population consists of immigrants. The major ethnic groups in the region are South Asians (59.4%), Emirati (11.6%), Egyptians (10.2%), Philippines (6.1%), and other groups (12.8%) (CIA, 2017). The official languages spoken are Arabic, Persian, English, Urdu, and Hindi. Arabic is the country’s official language, while English is the language of commerce. There are also other minor languages representing the minor ethnic groups.

The UAE region is majorly Islamic in matters religion. Muslims make about 76% of the total population, while Christians are a partly 9% (CIA, 2017). Hindus and Buddhists make about 5% of the population. The UAE government has been able to fight religious intolerance in the country. This means that Christians, Muslims, and other religious groups are free to exercise their right of worship without fear of victimization. The age structure reveals that EAE has a large population of youths. About 61.14% of the population comprise of individuals between 25 and 54 years (CIA, 2017). About 34% of individuals are youths below 24 years. A partly 1.07% of the population is 65 years and above. The elderly dependency ratio is 1.3, which is among the lowest in the world. These data reveals that the largest segment of the population is active. UAE has high literacy levels, with 93.8% of the population above age 15 being able to read and write (CIA, 2017). This indicates the country has skilled labor.

Economic Research

The UAE region has experienced high economic growth and development based on sound economic principles. The government has largely hedged its economy upon market principles that seek to creative a competitive environment for foreign and local businesses (Al‐Suwaidi, 2011). The UAE government has formulated economic principles that seek to attract foreign investors as well as skilled expatriates into the region. This has significantly improved the productivity of the region in all fronts including oil and gas production, banking, insurance, technology, tourism, and other industries (Al‐Suwaidi, 2011). The oil and gas industry was the major source of revenue in the 20th century. Towards the end of this century, the government sought ways of diversifying the economy in various fields.

The economic policy in the UAE region aims at achieving three key objectives. The first objective is to bring about economic stability by ensuring a fixed exchange rate system based on the United States dollar (Al‐Suwaidi, 2011). The second objective is to develop sound fiscal policies that lead to the development of a balanced budget and that encourage foreign investment by eliminating trade barriers such as taxes. As such, UAE has set up tax-free zones where foreigners can start businesses without unnecessary tax burdens. Lastly, the economic policy aims at investing the proceeds from the oil and gas industry in infrastructure development and accumulating financial assets (Al‐Suwaidi, 2011). The proceeds from the oil and gas industry have significantly helped in infrastructure development of the entire region. The national government allocates the proceeds to all emirates irrespective of whether the regions produce oil and gas.

Legal Research

The legal environment has significant impacts in the operations of businesses, more so foreign businesses. One of the key factors in the legal environment is taxes. The UAE government has established exclusive tax-free zones where businesses can set up operations. Businesses in these zones enjoy special tax, import regulations, and customs (PricewaterhouseCoopers (PWC), 2015). In addition, they enjoy a unique regulatory framework. Free zones allow foreign businesses to have up to 100% foreign ownership. However, foreign businesses in free zones face restrictions in terms of the geographical region they can conduct operations. If the foreign business wishes to conduct business outside the free zone, the law requires that it must engage a distributor or agent (Youssef & Moustafa, 2015). The distributor or agent must be a UAE national who earns a commission for the services rendered to the organization.

Political Research

The political leadership in the region combines the elements of a federal system and the traditional monarchical leadership. Choosing a president involves reaching of a consensus among the various emirate rulers (United Arab Emirates (UAE), 2017). Nonetheless, Abu Dhabi and Dubai emirates have a strong role in influencing critical decisions such as the budget or choosing the president. The choosing of rulers in the emirates follows the traditional monarchical system. In 2006, slight changes affected the electoral process, with the introduction of Federal National Council (FNC). Its role was to increase public participation in the voting process. In 2011, further amendments were enacted allowing the FNC to increase eligible voters to 130,000, an increase from 7,000 in 2006 (“UAE”, 2017). In the future, more citizens will have the right to vote. The increased democratization of the state will strengthen the stability of the region. This will definitely improve business in the UAE region.

Government Considerations

The UAE government has been active in promoting foreign investment and attracting skilled expatriates into the region. Over the last few decades, the government has made significant efforts to increase foreign direct investment inflows into the region. The current target is to achieve foreign direct investment inflows equivalent to 5 percent of the country’s gross national product (GNP) (“UAE Country Commercial”, 2017). The government has been able to establish peace and relative stability in the region. With increasing democratization, expectations are that peace will continue to prevail in the region. The government’s foreign policy aims at enhancing the peaceful resolution of conflicts with the neighboring states. It also aims at ensuring the sovereignty of the emirates and bringing peace in the Arabian Gulf region. The relative peace has been critical in encouraging investors to consider the region as attractive in doing business.

Language Considerations

Language is critical in determining the ease of doing business. The official language in UAE is Arabic. Nonetheless, most people know how to speak or write in English (PWC, 2015). There is no legal regulation guiding businesses on the language to apply. Majority of businesses use English as their business language, including in bookkeeping. This has opened up the UAE region to foreign investors from different parts of the world. This is because the English language is widely used in many parts of the world. As earlier mentioned, other languages include Persian, Urdu, Hindi, and others.

Competitive Analysis

The Four P’s of Marketing

Product. Exxon Mobil deals in oil and gas production and manufacture of various petrochemicals. The company produces a variety of oils and lubricants. The company markets its products under four brands. These include Esso, Exxon, Mobil, and ExxonMobil Chemical brands (Exxon Mobil, 2017). Esso and Mobil brands are marketed around the world, while Exxon is common in the United States. ExxonMobil Chemical is common in various parts of the world and including the United States.

Price. The company has a diverse portfolio of products. The price varies depending on the processes through which the products go through, and the target customers. For instance, high-speed oils are costly because they have to pass through many refining processes. In addition, such oils call for higher technology.

Place. Exxon Mobil has predominantly operated in the United States. In the recent past, the company has made efforts to become a global brand. As such, it has increased its presence in various parts of the world (Exxon Mobil, 2017).

Promotion. Exxon Mobil sponsors sporting events as a way of conducting promotions. In 2016, the company signed a deal to promote NBA. In addition, Exxon Mobil has engaged in numerous corporate social responsibility activities (Exxon Mobil, 2017).

Industry Information

The oil and gas industry is highly competitive especially in the UAE region. Various companies have entered in agreements with the UAE government to develop oil and gas in the region. Various international companies share the available oil fields. Some of the companies include Royal Dutch Shell, BP, Total, and Abu Dhabi National Oil Company (Daya, 2014). All these companies are competing for a share of the country’s oil resources. Exxon Mobil will aim at introducing an attractive revenue sharing ratio with the national government. The company will also apply advanced oil and gas production technologies in order to minimize wastage. This will increase production efficiencies.

Marketing Plan

Marketing Objective

The main objective is to expand operations in the entire UAE region through continued investment in oil and gas production. The company’s focus will be oil development across the entire UAE region (Exxon Mobil, 2017). Oil exploration, production, and marketing will thus involve all UAE states including Dubai, Ras Al-Khaimah, Fujairah, Umm Al-Qaiwain, Ajman, and Sharjah. Currently, oil development has been mainly concentrated in the capital, Abu Dhabi.

Global Positioning Strategy

Four core elements describe the company’s global positioning strategy. The first element is operational excellence (Exxon Mobil Corporation, 2013). The company seeks to ensure there is effective execution of strategy. This will ensure it increases production and improves the quality of products. The second element is technology leadership. The company seeks to become a leader in new product development through innovation. The third element is to develop a capacity for integrating resources and opportunities (Exxon Mobil Corporation, 2013). Lastly, the company seeks to conduct due diligence when it comes to investing.

Product Differentiation

It is quite difficult to include a product differentiation strategy in the oil and gas industry. Nonetheless, the company has successfully differentiated its products from the rest of the competition by introducing highly refined products targeting customers who are willing and able to pay additional premiums. For instance, the company has introduced highly refined lubricants or high-speed oils targeting the premium market.

Advertising and Promotional Strategy

The advertising method will involve the mass media. This will reach the largest number of consumers in the shortest period. Mass media advertisements will be critical in building awareness among consumers of the company’s products within the UAE region. The company will use both radio and television advertisements to create awareness of its products and increased presence in the region. The promotional strategy will involve press releases and writing articles on environment. This will help in promoting a positive image of the company as one that cares for the environment.

Distribution Strategy

Distribution of petroleum products may involve the adoption of complex distribution systems that includes trucks, railways, pipelines, and ships (Youssef & Moustafa, 2015). Distribution in the UAE region will involve trucks and pipelines. The trucks will help in carrying the oil to refineries, where the products will be transported via pipelines to various parts of the country. Transportation using pipelines is the cheapest and most convenient for liquefied petroleum. Use of trucks is time consuming and contributes to wearing down of roads, increased traffic congestion, and accidents. However, trucks may provide key links to areas not covered by the pipelines.

Pricing Strategy

The company seeks to employ two pricing strategies for its diverse range of products: economy pricing and premium pricing. Economy pricing will involve keeping the production costs minimum such that the final product (petroleum) reaches the consumer at a reduced price compared with the competition. Premium pricing will involve the high-speed lubricants targeting the premium market.

Evaluation

Measuring Effectiveness

A number of indicators are applicable in measuring the effectiveness of the company. The first indicator is achievement of business goals and objectives within a specific timeframe. The company should be able to transform goals and objectives into tangible results within a particular period (PWC, 2015). Another indicator is the brand image. This will be useful in measuring the effectiveness of the advertising and promotional strategies. Customer satisfaction levels will also be useful in measuring effectiveness. Customer satisfaction refers to how customers view the company’s products as solving their problems. Lastly, effectiveness will be measured by analyzing the product penetration in the UAE region. The company aims to have over 50% product penetration within a year in the UAE region.

Final Recommendations

Exxon Mobil must continue pushing for new concessions with UAE’s national government. The oil and gas concessions will ensure that the company’s presence in the UAE region and across the world remains relevant. It is worth noting that the UAE is one of the largest oil and gas producers in the world. By seeking for new concessions, the company will be able to expand its production significantly (Al-Suwaidi, 2011). It is recommended that the government diversify its operations to include the production of renewable energy. If the face of global warming due to increased pollution, there is need for a concerted effort to reduce the dependence on non-renewable sources of energy. Exxon Mobil should look into renewable sources of energy such as electricity production using solar.

Conclusion

The United Arab Emirates is an attractive region for oil and gas investments. The region is endowed with large volumes of crude oil and natural gas. The government has developed favorable trade policies aimed at attracting foreign investment and skilled expatriates in the region. In particular, the government has been keen to develop mutually benefiting partnerships with multinational corporations involved in oil and gas development. The UAE region has mainly relied on expertise and technology from the United States to develop its oil production. Exxon Mobil has been a major player in the oil and gas industry in Abu Dhabi. The company plans to increase its presence across all seven emirates through developing mutual partnerships with the government. Through its marketing plan, the company seeks to differentiate its products by introducing high-speed lubricants for the premium market. Advertising through the mass media and product promotions will help in creating awareness of the company’s products and developing a positive image among consumers.

References

Al‐Suwaidi, A. (2011). The United Arab Emirates at 40: A balance sheet. Middle East      Policy, 18(4), 44-58. doi:10.1111/j.1475-4967.2011.00509.x

Central Intelligence Agency (CIA). (2017). Middle East: United Arab Emirates. The World Fact Book. Retrieved from https://www.cia.gov/library/publications/the-world-             factbook/geos/ae.html

Daya, A. (2014, Oct. 29). As Abu Dhabi sizes up oil partners, Western firms risk being left out.   The New York Times.

Exxon Mobil. (2017). About. Retrieved from http://corporate.exxonmobil.com/en

Exxon Mobil Corporation. (2013). Exxon Mobil Corporation analyst meeting.

PricewaterhouseCoopers (PWC). (2015). Doing business in the UAE: a tax and legal guide.         Retrieved from https://www.pwc.com/m1/en/tax/documents/doing-business-   guides/doing-business-guide-uae.pdf

United Arab Emirates (UAE) Country Commercial. (2017). United Arab Emirates – openness to              and restriction on foreign investment. Retrieved from     https://www.export.gov/article?id=United-Arab-Emirates-openness-to-foreign-            investment

United Arab Emirates (UAE). (2017). Governance. Retrieved from             https://chronicle.fanack.com/united-arab-emirates/governance/

Youssef, M. A. E., & Moustafa, E. (2015). Societal institutions and control system            characteristics: Empirical evidence from the UAE. Journal of Islamic Accounting and        Business Research, 6(2), 268-291. doi:10.1108/JIABR-04-2014-0013

Related:

Considering International Marketing-PPT

Considering International Marketing-PPT

Question

Your company’s board of directors is interested in the international marketing plan proposal and has asked you to do a cultural audit. Your audit will explore two main areas: (1) cultural factors related to doing business in this particular country, and (2) a competitive analysis.
Develop a PowerPoint presentation organized as follows:
Cultural Factors
Slide 1: Briefly describe the country’s history and its relevance to its current cultural state today.
Slide 2: Identify customer demographic trends that are related to business activities in this particular country.
Slide 3/4: Briefly discuss customers and traditions of the country’s citizens and how these can possibly influence business there.
Slide 4/5: Identify and discuss language issues and any other cultural implications of introducing your product in this country.
Slide 6: Provide an assessment of the geographic region and why this is a good fit for your company’s product.
Competitive Analysis
Slide 7/8: Analyze the industry in this particular country. Perform a SWOT analysis. For more on how to conduct a SWOT analysis, see http://articles.mplans.com/how-to-perform-a-swot-analysis/.
Slide 8/9: Based on what you learned in the competitive research, apply the four Ps of marketing to your specific product by outlining the following:
Product (the features and benefits of the product)
Place (one possible outlet to sell the product in this particular country)
Price (one price strategy to consider in this particular market based on your competitive analysis)
Promotion (one promotional strategy to consider in appealing to your new global customers)
Slide 9/10: Conclusion: Based on everything you researched, present a brief analysis of any similarities between the domestic and international markets, any particular challenges and how you will manage those challenges in your selected country.

Sample paper

Considering International Marketing

Speaker notes

The United Arab Emirates (UAE) consists of seven emirates that came together to form one strong state. The seven include Dubai, Abu Dhabi, Ras Al-Khaimah, Fujairah, Umm Al-Qaiwain, Ajman, and Sharjah (Al‐Suwaidi, 2011). The seven states united into a federal state in 1971 by adopting a similar constitution. Prior to the emergence of the oil economy in the 1960s, the Emiratis largely depended on two economic activities: one, pearling and sea trading by the Bedouins, and two, small oasis farming in the desert economic context. The different subcultures shared a common culture and social identity, emanating from the interdependence among the political, social, and economic arenas of the people. The discovery of oil in the late 1960s significantly transformed the social and economic life in the region due to the wealth generated (Baynouna et al., 2009). Oil has been the key pillar of the economic success in this region.

Customer Demographic Trends

UAE’s demographic statistics are available from the 1970s when the various states merged to form a federal state. In 1975, the UAE had about 558,000 people. Over a third of this population was the local population. In 1997, the population was estimated at 2,624,000. In 2005, the population had grown to a staggering 4.1 million, with Emirati nationals accounting for a partly 20 percent of the population (Al‐Suwaidi, 2011). The high population increase is the result of the country’s high economic prosperity which attracts migrants from across the world. The forces of mortality and fertility have had little impact on the population increase in the region. In the 1970s, the country did not have skilled labor necessary for oil production. This led to high dependence on expatriate labor. The oil industry current relies majorly on expatriate labor, which is predominantly male. According to Al‐Suwaidi (2011), there were 2.6 million workers by 2005, of which 91.6 percent comprised of foreign nationals.

Related: Walmart marketing research paper

Customers and Traditions

Customers and traditions in the UAE region has significantly impacted business, especially in the area of oil exploration and marketing. Before the rise of Islam in 7th century, there was little social cohesion in the UAE region (Anthony, 1975) . There existed different socio-religious systems that rose and fell with time. The emergence and spread of Islam in the region became a strong bond that held the people in the region together. The emergence of Arab caliphates resulted in strong culture with a unique socio-political identity. Through the caliphate system, the UAE region remained free of non-Islamic influence until the European invasion in the 16th and 17th century (Anthony, 1975). In the 1820s, local leaders entered into treaty with Britain. This offered the region protection from foreign influence. Britain has made significant impacts in the region, especially in the areas of defense, international commerce, oil industry development, and education (Anthony, 1975) . Through British cooperation, the country’s citizens have been able to acquire technical and higher education using English as the language. The adoption of the English language as the commerce language has opened up the region to foreign expatriates from predominantly English-speaking countries.

UAE has two major social categories: the nationals and the foreign immigrants. The nationals have four social classes: the sheikhly families or the ruling class, the merchants, the new middle class comprising of various professionals such as teachers, and the low-income groups comprising of farmers (Anthony, 1975) . The indigenous populations lead varied lives, often depending on the area they live. Those in coastal areas are more exposed and have high levels of education. On the other hand, those in the interior have no skills and are illiterate. There is high rural to urban migration among the nomads and those who practice agriculture in search of better paying jobs and higher standards of living. Currently, there is significant improvement in literacy levels driven by free state education programs aimed at the low-income groups. This has boosted the number of professionals in the region. The increasing number of professionals have bolstered the prospects of the oil industry, which requires a higher level of skilled labor.

Language Issues & other Cultural Implications

Language is critical in trade development in the region. ExxonMobil has partnered with the UAE to expand and develop one of the largest offshore oils fields in the world. Language will play a critical part in the establishment of strong ties between ExxonMobil and UAE. The official language in UAE is Arabic. The immigrant population speaks various dialects including English, Urdu, Farsi, Hindi, and Filipino. UAE has adopted English as the language of commerce.  However, Arabic language greatly influences the management ability of expatriate leaders. According to AlMazrouei & Pech (2015), expatriate leaders who have mastery of basic Arabic language are better positioned to manage diverse employees, including locals who have poor mastery of the English language. In addition, awareness of non-verbal communication can also boost the effectiveness of an expatriate leader. For instance, expatriate male leaders should be aware that it is not acceptable to greet local women by shaking hands. According to AlMazrouei & Pech, (2015), UAE has unique cultural characteristics compared to neighbor states such as Oman due to British influence and the influx of expatriates from different parts of the world. For instance, majority of locals have a basic understanding of the English language. However, they have poor command of the written language.

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Geographical Region

The United Arab Emirates is the hub of global oil production. The UAE is among the top 10 countries with the largest oil reserves in the world. Currently, UAE has oil reserves totaling to 97.8 billion barrels. In 2012, UAE begun efforts to increase oil production to 3.2 million barrels per day be 2016 (Maimer, 2015). UAE also holds a long term plan to increase oil production to 3.5 million barrels per day by 2021. This will be achieved through various ways including encouraging foreign direct investment. ExxonMobil will take advantage of the efforts by UAE government to increase oil production to invest in the region. The UAE has good rankings on international ranking scales such as Global Competitiveness Ranking (17th position) and World Bank Ease of Doing Business Report (ranked 22nd) (Maimer, 2015). This makes it attractive for investment. The country has improved infrastructure, skilled labor force, and an efficient legislative environment. UAE has a strategic geographical location in light of oil transportation and marketing. UAE is located along Strait of Hormuz, which provides the only sea passage in the Middle East region.

SWOT Analysis of UAE Oil Industry

UAE enjoys a strategic geographical location which gives it access to the Strait of Hormuz for easy exportation of oil and petroleum products. There is high demand for oil/petroleum products across the world, which is projected to rise further (Business Monitor International (BMI), 2011).. The country has high infrastructural development, facilitating oil transportation. There is an efficient legislative environment guiding oil exploration, mining, and revenue sharing. Due to high number of foreign expatriates, there is cheap labor force. A number of weaknesses exist. First. the region lacks a democratic structure of governance. Second, the succession form of governance raises future concerns (BMI, 2011). Third, there is possibility of xenophobia. The opportunities include strong cooperation with GCC states on matters security and economic stability, rising demand for oil and petroleum products across the world, and the large areas of unexplored oil reserves. Threats include environmental pollution, territorial disputes, and exhaustion of oil wells.

4 Ps of Marketing

Product

ExxonMobil will concentrate in the extraction of oil and conversion into petroleum by applying the latest technologies. Application of enhanced oil recovery technology will improve oil production per well. All petroleum products will be unleaded to minimize air pollution.

Place

The petroleum products will be marketed via ExxonMobil outlets across the country.

Price

The appropriate pricing strategy is economy pricing. The aim is to attract both low-cost and high cost consumers by availing petroleum products at the least price. This will help in market penetration.

Promotion

The promotion method will be advertising on the mass media. This will reach the largest number of consumers in the shortest period.Product

Conclusion

This research indicates that the UAE region provides an attractive haven for oil and gas investments. The region has an abundant supply of oil and gas resources, skilled labor, and efficient legislative regulations guiding firms in the industry. The domestic and international markets share one similarity in that the oil industry prices are demand driven. This means that prices fluctuate basing on global demand and supply levels. The most significant challenge in the oil and gas industry is territorial conflicts, which can significantly impact extraction and marketing. This challenge can be managed by working closely with the national government in solving the territorial disputes.

References

  • Baynouna, L. M., Revel, A. D., Nagelkerke, N. J. D., Jaber, T. M., Omar, A. O., Ahmed, N. M., . . . Abdouni, S. (2009). Secular trend in height in al Ain-United Arab Emirates.Economics and Human Biology, 7(3), 405-406. doi:10.1016/j.ehb.2009.07.004
  • Al‐Suwaidi, A. (2011). The United Arab Emirates at 40: A balance sheet.Middle East Policy, 18(4), 44-58. doi:10.1111/j.1475-4967.2011.00509.x
  • Anthony, J. D. (1975 ed). The Middle East: oil, politics, and development. Retrieved from https://ncusar.org/publications/Publications/1975-12-01-Impact-of-Oil-on-Political-Socioeconomic-Change-in-UAE.pdf
  • AlMazrouei, H., & Pech, R. J. (2015). Working in the UAE: Expatriate management experiences.Journal of Islamic Accounting and Business Research, 6(1), 73-93. doi:10.1108/JIABR-08-2013-0032
  • Maimer, W. (2015, Dec. 2015). Tighter times ahead for UAE economy. The Telegraph. Retrieved from http://www.telegraph.co.uk/sponsored/united-arab-emirates/12027193/tighter-times-ahead-for-uae-economy.html
  • Business Monitor International (BMI). (2011). United Arab Emirates Oil & Gas Report Q3 2011. Retrieved from http://www.marjanca.ae/files/reports/5-BMI%20United%20Arab%20Emirates%20Oil%20and%20Gas%20Report%20Q3%202011.pdf

Related:

Global Marketing Research

Global Marketing Research

Global Marketing Research

Global Marketing Research

        The aim of this research   is to find out whether U.S and Japan use the same executional aspects in advertising for both local and global brands as compared to the past. The researchers used the television commercials of America and Japan to give their analysis. The study also compares the global brands and local brands in terms of using the same executions both in Japan and U.S.A.In addition the research also outlines the strategies that global brands use as compared to local brands in America versus Japan.

            This research confirms that global ads seems to be the same as compared the local ads in both japan and the U.S. thus, leading the firms to strategize on the world consumer culture and frequently using GCCP to advertise their commodities. The research further affirms that the local brands executions in the U.S. compared to Japan were consistent with culture aspects. This study further notes that in the U.S. GCCP appeal and soft-sell are more common and global brands employed the world consumer culture symbols. On the other hand Japanese ads employed GCCP using global symbols. According to Johansonn (1994), Japanese ads make reference to local symbols.

            It is evident that collaboration and social behavior have a role to play in this study. Firstly, the researchers use both the U.S. and Japan television commercials to conduct their analysis. Secondly, the researchers observes the social behavior of the firms and consumers and they are able to collaborate with different people from different cultures.

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            The researchers used various method of collecting data, one being sampling whereby the commercial television networks of Japan and U.S. were recorded. This method of collecting data was effective as it helped the researchers with balanced representation in terms of viewing times. The study also employs data instrument and coding procedure. The use of this method reduces coding costs and ensures the accuracy of data.

            In completion of the data analysis of this study, Charles Taylor and Shintaro Okazai carried out analyses on services compared to physical products. This analysis found that ads for global brands in the U.S and Japan are the same in terms of counting and timing of variables. Okahazi & Taylor (1992) finds that there are more similarities in ads for global brands for both products and services as compared to the past. A qualitative analysis was also conducted to help identify the ads used in Japan and the U.S. that represented typical positioning for both local and global brands. The analysis affirms that in the U.S. GCCP and soft-sell appeals are common and the U.s local brands used the local symbols. The analysis supports that the global brands marketing in both the U.S. and Japan has being influenced by the World consumer culture.

            In conclusion, the global marketing research by Okahazi & Taylor (2013) was a success, in that it provides us with the competitive outcome in U.S. and Japan. This study uses sampling and data coding as methods of collecting data thus ensuring the data is accurate and reliable. The research compares and contraststhe effects that World consumer culture has had on the global brands. The study further compares both local and global brands in U.S. and Japan thus providing in depth information on competition and collaboration of firms in the World economy.

References

Okazaki, S., & Taylor, C. R. (2013). Social media and international advertising: theoretical          challenges and future directions. International marketing review, 30(1): 56-71.

Wu, L., Chuang, C. H., & Hsu, C. H. (2014). Information sharing and collaborative behaviors in enabling supply chain performance: A social exchange perspective. International Journal   of Production Economics, 148(3):122-132.

 

SEAL TIGHT COMPANY ANALYSIS

SEAL TIGHT COMPANY ANALYSIS

SEAL TIGHT COMPANY ANALYSIS

Execute summery

A company can only be termed to be moving in a progressive direction if it can exude financial stability regarding an upward trend in its income and its command of the market. There are so many measures that can be set to gauge a company’s performance but the commonly used are the related financial methods (Liston, 2016). These are produced at least annually and consist of the balance sheet, the income statement and the statement of cash flows. Most companies and businesses prefer using income statement and the balance sheet. A balance sheet gives the picture of the organization as a whole i.e. the assets and liabilities, which entails what the business owns and what the company owes other firms.

Introduction

Seal Tight Company’s annual profit and loss account provide the financial outflow and inflow of the company. The content includes the net sales; this is the sales that is generated by the company after the deduction of returns, the discounts, and allowances for the damaged or missing goods. It also provides information on cost and expenses; the costs are the expenditures that the company incurred while performing the revenue generating activities while the expenses are the value of the items acquired that have been consumed (Clausen, 2008). It also provides the depreciation, administrative expenses, interests, estimated taxes and profits from operations.

The two competitors of the company Metalmax and Superior Can Companies financial statements have also been provided to facilitate weighing the performance of the company in the market and show its position. When these information are vividly analyzed the progress of the company can be determined throughout the fiscal year and also over the span of five years. The observations and recommendations arrived at will be significant in ensuring the company settles for a strategy that can propel it in a progressive direction or improve their income generation.

Method

This is a research that is aimed at determining the progress of the Seal Tight Company and also to determine its position in the market by comparing the financial records in the years beginning 2008 to 2012 and also against their major competitors. The method applied in this research is by balancing the accounts of the company, comparing its expenses against the profits. The statement is provided, with complete workout and additional information about the annual net sales of the competitors over the five years period.

Results

From the financial statement an upward trend regarding net sales is observed, therefore explaining that the company has been growing, by 2008 the net sales were $40,000,000 but five years later their net sales had gone up making $53,000,000. The profits from other operation indicated an unpredictable trend by 2008 it was $6,000,000 but moving into the preceding year the value fell to $5,400,000 which shows a decline but a year later there is observed an increase in the profits, the following years similarly give varying values until 2012.

The company incurred expenses that must accompany the operation to ensure quality and timely service delivery. The cost and expenses incurred by the company indicates a lower value in 2008 at 34,000,000 but shows an upward trend going into the latest year 2012 at 48,400,000. Between the year 2010 and 2011, the company recorded a huge difference in the costs and expenditure, whereby, in 2010 it recorded 40,800,000 while in 2011 it recorded 47,700,000. That shows a huge difference compared to the other financial year trends for the fluctuation in consecutive expenditures. The other expenses incurred by the company are the taxes which ranged between 2,400,000 and 2,640,000 with a very slight variation.

Comparing the sales of the company with those of the major competitors in the market, in 2008 Superior Can Company had the highest sales at 41,000,000 followed by Seal Tight Company at 40,000,000 and lastly Metalmax Company at 35,000,000. The preceding years until 2012 Seal Tight shows superior sales compared to the other competitor recording 53,000,000 compared to 48,000,000 for both Metalmax and Superior Can Companies respectively.

Conclusion and Recommendations

Seal Tight Company has a positive upward trend in the market and as well as in sales. The superiority in the market is evident from the net sales compared to the major competitors in the market that have recorded lower sales over a similar period. The company was at a lower status by 2008, but over the five years, it has seen a gradual rise to overtake its closest rival and eventually command the control of the market. The massive deviation of 5,000,000 in their sales after the five years give the picture of their performance.

The company needs to limit its expenditures in order to ensure that more profits is retained in the company, the other sources of revenue should also be stabilized to subsidize the sales as the major source of revenue. It has indicated an unpredictable trend over the five years which suggests probably something could not be correct hence the company needs to consider making an adjustment

References

Clausen, B. (2008). Expenses and Costs. Business Today, 140-142.

Liston, H. (2016, January 26). How to Read and Analyze an Income Statement. Retrieved from Bplans: http://articles.bplans.com/how-to-read-an-income-statement/

Read related content: Walmart marketing research paper

 

walmart marketing research paper

Walmart marketing research paper-Mkt 100

 Walmart marketing research paper

Wal-Mart is a multinational retail corporation dealing in warehouse stores and discount departmental stores. The retail corporation has its headquarters in the United States, in the Arkansas state. Walmart focuses on giving customers the best value for their money by providing quality products at low prices, and with outstanding customer service. This sets Wal-Mart apart from the rest of the competition.

Walmart’s unique selling preposition is a focus on “everyday low prices” (EDLP) while delivering quality products to customers (“Walmart,” 2014). The retail corporation stocks a broad assortment of products such as national brands and local merchandise that reflects the need of consumers in the area of operation. The company focuses on an “everyday low cost” strategy that aims at keeping costs low. This enables Wal-Mart to sell at relatively low prices compared to other retailers in the market (“Walmart,” 2014).

Walmart has a number of marketing objectives. The retail corporation seeks to deliver locally relevant products to customers at low prices. This can also be seen as marketing segmentation where various stores across the world will stock locally relevant merchandise. Wal-Mart also seeks to expand its product delivery channels to include e-commerce (“Walmart,” 2014). This means that the retail store will integrate digital and physical platforms to reach out to as many consumers as possible. Online stores will appeal to consumers who prefer shopping online. Secondary research was conducted by reviewing Walmart’s 2014 annual report.

To sum up, USP may be defined as the distinct value or characteristic of a product that enables Walmart to increase its market share (Steinhardt, 2010). Marketing objectives highlights the active steps the retail store has taken to achieve a unique selling preposition.

SWOT Analysis

Strengths

  1. Cost leadership in the retail business
  2. Expansion into the international market
  3. Stocks a wide range of merchandise
  4. Established brand name
  5. Logistical and supply chain capabilities

Weaknesses

  1. High employee turnover
  2. The retailer has faced a number of labor related lawsuits
  3. Some stores are crowded
  4. Increase in expenses may force the retail store to adjust prices

Opportunities

  1. The opportunity to attract more customers through online platform.
  2. Walmart’s own label merchandise is gaining acceptance and can boost growth
  3. Growth opportunities in emerging markets
  4. Growth in operating income in 2014.

Threats

  1. High competition from other retailers
  2. Increase in commodity prices
  3. High competition from online stores
  4. Slow growth in developed and developing markets experienced 2014 (Tabuchi & Abrams, 2014).

Walmart supply chain and operational system aims at enhancing the everyday low prices model. As such it is important to use optimized transportation routes which can enable a business achieve high efficiencies in the supply chain (Tabuchi & Abrams, 2014). Mechanizing all the distribution centers and stores can also help in labor cost reduction. Outside vendors may be costly so it is advisable to do everything in-house.

The company’s pricing strategy is in line with the company’s pricing objective. The company seeks to become the price leader in the industry by charging lowest possible prices (Tabuchi & Abrams, 2014). The company’s objective is to deliver a variety of merchandise to consumers at low prices. A SWOT analysis is an important tool used in determining the internal strengths and weaknesses and the external opportunities and threats facing a company (Ferrell & Hartline, 2011). The importance of describing the supply chain and pricing strategy is to show how the company integrates the information to its decision making using the SWOT analysis.

References

Ferrell, O. C., & Hartline, M. D. (2011). Marketing strategy. Australia: South-Western Cengage Learning.

Steinhardt, G. (2010). The product manager’s toolkit: Methodologies, processes, and tasks in       high-tech product management. Heidelberg: Springer.

Tabuchi, H., & Abrams, R. (2014, Nov. 13). After a Bump in Sales, Walmart Braces for a            Competitive Holiday Season. The New York Times.

Walmart, (2014). Annual Report. Retrieved from             http://stock.walmart.com/files/doc_financials/2014/Annual/2014-annual-report.pdf