MRKT 3611 Principles of Marketing Research Paper

 MRKT 3611 Principles of Marketing Research Paper

Instructions/Descriptions

Project Title: Marketing Plan for developing relaxation beverage

We declare that this assignment is all our own work and the sources of information and material which we have used, including the Internet sources, have been fully identified and properly acknowledged through citations and references, as required by the referencing style of American Psychological Association.

We confirm that this assignment, or parts of it, has not been previously submitted for evaluation elsewhere.

We agree that, if necessary, investigations can be made regarding the authenticity of this assignment.

We have read and understood the SQU’s policy on academic misconduct and plagiarism.

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Introduction

The goal of report is to identify the perfect marketing strategy for FBOH to growth in the future. Numbers of analyzing and researches have been prepared to find the appropriate marketing strategy to improve FBOH Company.

This report presents the analysis of Micro-environment, Macro-environment, and SWOT of FBOH Company. Also, we determine the marketing strategy and activities. All these analyses have been completed by the group members to find the appropriate marketing strategy for FBOH company.

Microenvironmental analysis

Company

FBOH is an Omani company which produce relaxation beverage. The headquarter of FBOH company in Alkhoud and it has five branches in different region in Oman including Sur, Saham, Sohar, Barkha, and Nizwa.

There are several departments in FBOH such as Finance, Accounting, Operation, R&D departments and all these departments work together to identify the needs and wants of the customer also, to identify the target customer. The FBOH has a strong position in Omani market.

Customer

The customer is the most important factor for that reason the company keep continuing and devolving. The company focuses on consumer who do not care about energy, but focus on relaxing after a great effort, relieving stress and increasing fictional focus. The company focuses on designing drinks that help focus and at the same time do not cause drowsiness and sleep.

Competitor

In term of competitors, the biggest competitors in Oman for relaxation drinks are soft drinks companies such as, Pepsi, Dew, Coca-Cola and other soft drinks companies due to presence of a small amount of a substance that helps to relax, for its fame and confidence in the people for a long time, also natural drinks such as, tea and other competitors for industrial relaxation drinks. The things that given FBOH an extra competitive advantage are the products of FBOH have low price and high quality.

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Macroenvironmental analysis

Political factor:

Oman has a democratic government and it is the most liberal country in the middle east region. Also, Oman is one of the most stable countries in Middle East region and in the world.

As international rating agencies indicated that political stability in Oman is a good factor to attract foreign investors, which makes investors confident to invest their money in Oman and they do not go to invest in other countries in Middle East countries.

Economic factor:

The economy of Oman is improving in recent years because of diversified sources of revenue and less depending on oil sector. Also, Oman has a GDP of $79,77 billion in many different sectors such as, Agriculture 1.7%, industry 46.2% and services 53% in 2017 which is a good indicator for investors to invest in Oman.

In addition, Oman established a development plan for 5 years which leads to privatizing capital expenditures, eliminating barriers and tariff for foreign investors in Oman which will create jobs for residents in private sector. Oman also has the 25th largest oil reserves and the 27th largest natural gas reserves in the world.

The government of Oman is becoming less reliance on oil industry and concentrate on non-oil industry such as, retail sector, financial sector and health sector, which will make a good growth in the economy of Oman in the next period. Oman Also joined World Trade Organization (WTO) and free trade agreement with US.

Omani banks provide a low interest on loans for several industrial projects that will be implemented in Oman. In addition, the government of Oman grants industrial lands for different industrial projects.

Also, Oman adopted a free economy policy and competition rules by providing many packages, simplified procedures, incentives and tax exemption. Oman became a member of some agreements to defend its investments.

Social:

The population of Oman in 2019 was about 4.97 million, with the capital Muscat being the most populous city and the main commercial center in the country. Oman is an ethnically diverse country due to the imperial past and expansion to the coasts of Africa and East India.

The number of learners over the age of 15 in Oman is about 93%. Islam is the official religion of Oman, but there are different religions because of people of different nationalities. Three-quarters of the population are Ibadi and rest of the population is Shiite and Sunni.

The growth rate in Oman is high in recent years due to the increase of expatriate labor and the increase in infrastructure projects that require a very large workforce, but in 2019 the growth rate was 3.56% and is low compared to 2018 which was 4.18%.

The Sultanate of Oman is a culturally distinct country with traditional characteristics, which is evidenced by Public and national events, family relations, clothing and more. Their culture stems from Islamic culture and their morals from the Quran and Sunnah. One of Oman’s most popular values is generosity when guests visit them as well as among themselves. Omanis gather on occasions and share their weddings such as weddings, Islamic holidays and national occasions.

Technology:

Oman is one of the countries that are open to new technologies and technologies that help the business to flourish. The industrial sector has taken a wide range of methods by relying on the Fourth Industrial Revolution techniques such as 3D printing and other technologies.

Oman is one of the fastest growing countries in terms of technology and aims to take advantage of innovation as a catalyst for technological development. The government aims to reach a leading position among 40 innovative countries by 2020.

Environmental

In the environmental analysis factor, we include the natural factors or resources of Oman that would affect us as a company in a positive or a negative way. Oman is a country in the Middle East, in the gulf region precisely, Oman’s land is considered as 80% desert which means it’s a hot country.

In addition, the weather of the areas in Oman that are close to the beach get to have a high percentage of humidity as well and not just the heat, where on the other hand the areas far from the beach tend to be hotter and drier. To add up to, these natural elements of Oman’s weather can be of good benefit of our company’s product ‘Let it up’ that we would love to present in the coming future.

 MRKT 3611 Principles of Marketing Research Paper

However, there are some laws and regulations that are put by Oman’s government that prohibits or reduces the companies from contaminating the environment, and some regulations on water, chemicals, radioactivity, etc… therefore we should take these laws related to the environment into consideration while we manufacture and produce our product in Oman to enhance us in having a smooth, modern and well established company with a good reputation to do with the environment now as the environment has become a more important field to look with companies comparing to how it used to be in the past.

Legal

In the legal analysis factors, we need to consider the legal aspects of the country in different aspects and fields for us to function accordingly. Oman is a country that follows Anglo-Saxon law and the Islamic law, which means, before we initiate our product we’ll need to know more about the laws and when it comes to the Islamic religion we need to find out the kind of stuff the religion encourages and discourages, then we’ll consider them and work accordingly.

Moreover, we need to look at the legal rules related to employment and recruitment and different laws to do with employees in work and all these legal rules and regulations are in included in the (Omani Labor Law) that’s provided from the government, the way business is done in Oman, the competition, health and safety, patents law, property law, customer protection, and accordingly, we’ll know if it’s a good country to invest in.

 MRKT 3611 Principles of Marketing Research Paper

And according to the legal factors of Oman, studies have shown that Oman has been a good country to invest in and initiate companies and it’s even better than how it used to be. In addition, the new free trade agreement between Oman and the United States has helped enhance Oman in the global market and has attracted more global businesses into it.

Another event that happened that helped Oman is that they’ve become a member of the WTO. Moreover, the strong investor’s protection law that the country is offering is one of the reasons that made Oman more attractive to businesses. The laws of taxes in Oman are low which is at a 12% corporation law and a 0% for whom are in the free zone.

SWOT analysis

Strength

The strength describes the good points within the organization, whether tangible or intangible, and the company uses them to achieve its goals. The first point is that the company has various types of drinks that give the consumer many and varied options and a variety in choosing.

The second point is that the products of our company are of high quality, most of the materials used in its production are Natural and does not cause negative effects. Another point is the presence of a strong distribution network in Oman, which helped it to distribute its products in a faster way.

Finally, the strength of the company’s management strength helped it to organize the production lines regularly, quickly and at low cost.

Weakness

The Weaknesses describes the weaknesses that affect the company and its performance, as well as its market position. The first weakness, which is the operating and labor cost in Oman is high, and this leads to increased costs for the company. Second, the lack of necessary raw materials for production, which resulted in importing from abroad and additional costs. The presence of similar drinks at lower prices, which causes consumer bias towards these drinks.

Opportunity

Opportunity is an external factor that could give an organization a competitive advantage. The FBOH company can highly increase its sales by exporting and expanding its products to neighborhoods countries.

Moreover, the company can market its products by using social media which will add more value to the company. Finally, the FBOH company will encourage and support from business Omani people who support Omani projects.

 MRKT 3611 Principles of Marketing Research Paper

Threats

The FBOH company may face some external issues that could impact on the company. The company’s competitiveness would reduce because of the presence of many beverage companies in the market. In addition, the demand of the profitable products is seasonal, and it may impact the profitability of the company.

Moreover, the company may face different laws, conditions, and taxes from the government. Last threat the company could face is increasing the cost of transportation because of oil price is not constant which will bring up the cost of FBOH company’s products thus providing the threat to the company.

Strategic recommendation

Now days people are warning about their health. The FBOH company can Converting and matching its Weakness and Opportunities into Strengths to gain competitive advantage. According to above information the FBOH company can match its opportunities into strengths.

For example, the FBOH uses social media to advertise about its products so it will show that the company used natural ingredients which will make consumers who interest in healthy beverages will be more aware about the products which will add a big value to the company.

Moreover, The FBOH company will expand its products to neighborhood countries and it has a high skilled manager that will manage and organize the work outside Oman, so the sales of the company will increase and get high revenues.

On the other hand, the FBOH can convert its weakness into strength. The most significant weakness to FBOH has very high labor costs. The FBOH will make a share jobs between workers and replacing full time workers with part time workers that can reduce the costs without change in hours working time.

Segmentation

According to the demographic segmentation in Oman, the population from 15 to 40 years old is the consumer of our product, the “let-up drink” will be consumed by all races, especially in the summer because it is a cold drink. Psychological segmentation focuses on comfort drinks to be followed and the potential fears and damages they cause, as a “let-up drink” does not contain unhealthy substances, and the drink is aimed at people suffering from the stresses of life.

 MRKT 3611 Principles of Marketing Research Paper

The behavioral segmentation focuses on the need of consumers to choose additives for their products, but the company provides a product with different flavors to satisfy all consumers. As consumers in Oman like to diversify in products and the “let-up drink” does not contain harmful substances, so that product will satisfy all ages from 15 to 40 years without causing them any harm.

Targeting:

As a company that produces relaxing drinks, our products enjoy a wide range of consumers in the Omani market, which allows what to target this market greatly. The target types of customer are:

Age: Our company generally deserves everyone, but it focuses on the category of consumers whose ages range between 15 – 40 years. It succeeds in reaching them through advertisements as well as through restaurants, cafes and malls. The price of the products also helped to reach this category further.

Lifestyle: The company does not aim for a specific lifestyle, but focuses on consumers who suffer from the pressures of different life, whether due to work or due to family etc. These drinks help them to relax. Also, for consumers who are interested in mental relaxation after hard work, this is an important category for the company.

 MRKT 3611 Principles of Marketing Research Paper

Health: Consumers who care about comfort and health are the target group because our products are used to produce natural materials that are not harmful to health.

Positioning:

The company has a distinguished position in the drink market. The most important elements of our products are quality and price. There are the most successful points where the consumer is interested and puts a great place in his mind compared to other competing products. The company seeks to satisfy consumers by providing comfortable drinks with different flavors, does not contain industrial materials, and without negative health effect, quality and price within the reach of all consumers

Pricing strategy:

Pricing a new product have two types of strategies, market skimming and market penetration pricing strategies. In result of our researches, we’ve decided to undergo market skimming pricing with our new product “let-up drink”. Due to our pricing decision, our product will be considered a bit more expensive than the other products in the same category because of our high quality and that there are not that much known products like this in our market.

Moreover, we believe that let-up drink will offer a unique and refreshing taste and experience to our customers that will make our prices worthy and satisfying to the customers, which they would hopefully be happy to pay for.

 MRKT 3611 Principles of Marketing Research Paper

Promotion:

There are several promotion tools to promote our new product “let-up drink” to our current and potential customers, but we chose one of them which is direct and digital marketing tool. The FBOH company utilizes this promotion tool to convincingly establish customer relationship and being in touch with customer value.

For example, FBOH company uses social media as a tool to promote our new product “Let-up drink on different platforms such as, Twitter, Instagram, YouTube and Facebook. Furthermore, our company will communicate with many celebrities in Oman to promote our new product via social media, where it will able for us to reach to several customers in the Omani market.

 MRKT 3611 Principles of Marketing Research Paper

Conclusion

To sum up, in this report we have looked to several aspects the affect company. The sources we use in this report are textbook and secondary sources. We analyzed the micro and macro-environment and SWOT analysis. We have concluded the report with marketing strategy and activities such as, segmentation, targeting, position, pricing, and promotion.

References

Buckley G, Rynhart G. (n.d.). The Sultanate of Oman The enabling environment for sustainable enterprises: An “EESE” Assessment. Retrieved from https://www.cbd.int/financial/privatesector/oman-privatenabling.pdf

Businessgateways. (2018, September 18). Oman’s Technological Revolution is here to Stay. Retrieved from https://businessgateways.com/blog/2018/09/18/Oman-Technological-Revolution-is-here-to-stay

Economy of Oman. (2019). Retrieved 12 December 2019, from https://en.m.wikipedia.org/wiki/Economy_of_Oman

 MRKT 3611 Principles of Marketing Research Paper

Geronimo, A. (2018, March 6). Oman plans to be among world’s most innovative countries by 2020. Retrieved from https://www.tahawultech.com/news/oman-unveils-national-innovation-strategy/

Oman. (n.d.). Retrieved from https://www.everyculture.com/No-Sa/Oman.html

Oman Population 2019. (n.d.). Retrieved from http://worldpopulationreview.com/countries/oman-population/

opportunities for PESTLE Analysis of Oman 2016. (2016). Retrieved 12 December 2019, from https://www.lucintel.com/pestle-analysis-oman-2016.aspx

Political stability to drive investment in Oman. (2015). Retrieved 12 December 2019, from https://timesofoman.com/article/49200/Business/Political-stability-to-drive-investment-in-Oman.

 MRKT 3611 Principles of Marketing Research Paper

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