U.A.

E Marketing

University of the Punjab

(Gujranwala Campus)

Project:Marketing Environment of U.A.E

Submitted To:Submitted By:-

Sir Hafiz Kashif Mehmood

Asad Raza Umair Ahmad Umer Raza Cheema Syed Mudassar Naqvi Hassan Bilal Tayyab
Page 1

(Bc09002) (Bc09028) (Bc09034) (Bc09040) (Bc09049)

U.A.E Marketing

M. Waqas Ahmed

(Bc09154) Evening

Page 2

U.A.E Marketing

Page 3

U.A.E Marketing

TABLE OF CONTENTS

Page 4

U.A.E Marketing

ACKNOWLEDGMENT

All praises and thanks to almighty Allah. The lord and creator of this universe by whose power and glory all good things are accomplished. He is also most merciful, who best owed on us the best potential, ability and an opportunity to work on this project. We are grateful to my respected teacher Sir Hafiz Kashif Mehmood who has guided us in each and every step of this project. Indeed, without his kind guidance we may not be able to even start this project. May ALLAH give him the reward which he deserves. I am also grateful to all those members who are related to this project. In the end, we are thankful to all our teachers and have a lot of prayers for them who Give us the knowledge and make us able to Learn in Punjab University. Here we have special thanks for Sir Hafiz Kashif Mehmood whose supervision guided us to complete our project.

Page 5

U.A.E Marketing

Page 6

U.A.E Marketing

DEDICATION

We dedicate our project efforts to our PARENTS and respected TEACHERS who taught us and hold our hands on every step of our life

What is Marketing?
Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Philip Kotler
Page 7

U.A.E Marketing

OR
The right product, in the right place, at the right time, at the right price

Adcock Marketing Objectives:There are several important factors to consider when establishing effective marketing objectives.

SMART Approach
S M A R T = = = = =
Setting Specific Measurable Achievable Realistic Time Specific Objectives

The "SMART" approach is explained to illustrate how you address each area:

Specific:
Page 8

U.A.E Marketing

Are your objectives stated in a way that is precise about what you are hoping to achieve?

Measurable:
Can you quantify each objective, i.e. can you use a unit of measure such as market share in percentage or dollars or other to provide a way to check your level of success?

Achievable:
Are your objectives reasonable in terms of what you can actually achieve or are you setting your sights too high?

Realistic:
Do you have sufficient employees and resources to achieve the objectives you have set, if you don't then they are likely to be unrealistic?

Time specific:
When are you hoping to achieve these objectives, you need to define a timing plan with target timing for each specific objective?

Page 9

U.A.E Marketing

As an example, ABC stationary supplier sells its goods to newsagents across the country and they want to boost revenue for their product range. To detail this objective more clearly, we could define it using the "SMART" approach as follows: To gain 30% market share for stationary by 2011. Specific - need to understand the latest preferences of customers in the identified segments and appropriately target each stationary item such as pens, exercise books, rulers, and calculators to maximise sales volumes Measurable - current market share is 20%, will set a target of 30% market share, meaning we need an extra 10%, market share amounts can be established based by monitoring the overall value of sales in terms of dollars Achievable - ensuring technical competency and commitment of all personnel involved in the development and implementation of strategy. This can range from having an experienced and knowledgeable marketing team to capable sales staff. Access to funding is also necessary for the acquisition of extra stock to fulfil increased demand. Realistic - the objective is realistic as the marketing resources are in place to conduct the segmenting and targeting exercise and access to the extra stock required

Page 10

U.A.E Marketing

Time Specific - the increase in market share is to be achieved within 12 months, a regular progress update will be taken every month to track level of success

Micro Environment of U.A.E Through Noode Cosmetics Company INTRODUCTION:Noode is a skin care line for woman, offering range of twelve skin care products clinically tested and approved by dermatologist to produce products infused to maintain and prevent aging instead of repair. These products are developed by innovative technology, in attractive packaging to attract the target customers at affordable prices. The product line was designed specially to meet the need of Generation Me market which is a combination of Generation X and Generation Y. The founder of Noode Mr. Seth Ratner identified that this generation was concerned more about me hence the entire product line has me. In addition Noode also conducts different skin care workshops and sampling to promote their products to targeted market and help customer get better understanding for skin protection. Noode embodies modern beauty setting sight on the market of 15 to 29 year old women.

Page 11

U.A.E Marketing

Micro Environment:The analysis of the competitiveness that is prevailing for Noode in the U.A.E market.

Customer:Noode targeting the 15 to 29 years old women. In U.A.E Population under 15 to 19 Age Customers Which is the target of nood company just 30% of population. 15-29years 30% (male 8, 75,546/female 6, 69,054) So the nood company targeting very few people in the U.A.E Markets.

U.A.E Consumer:
U.A.E nationals and expatriates often have a high disposable income but do appreciate value for money. In U.A.E Per capita income is $49,600 in 2011.

Shopping:
Shopping is a favorite pastime in the U.A.E for the women.

Page 12

U.A.E Marketing

People:
An organizations human beings are its most valuable recourse for generating excellent results year after year. Their judgment, experiences and capabilities make the difference between success and failure. Noodes key objective is to attract Generation me by their quality products at lower prices and their packing and experience being fun and cool and not being a novelty.

Supplier:
Since Noode is a supplier with the aim of due rapid expansion in the country infrastructure to accelerate in available retail space in the coming five years, the opportunity to trade via the Jebel Ali Free Zone is favored and without VAT the risk is low.

Competitor:
Cosmetic and toiletries manufacturers are moving to U.A.E to target the high consumption of cosmetics and toiletries According to a recent survey, consumption of cosmetics and fragrances in the Gulf States is among one of the

Page 13

U.A.E Marketing

highest per capita in the world with the average purchase estimated in the region of Arab Emirates Dirham 1,229 per head.

The main competitors to Noode are AVON, Nevea, Body shop etc. In order to successfully compete with these market rivals Noode is mainly concentrating on providing products at lower prices and advertising aggressively which will play a vital role in attracting the targeted customers.

Competitive Advantage:
The company has a competitive advantage on other products since they are in Market with motto of Generation me. Noode has also low product rated than other companies in the market. It has a very positive image in generation me in skin care industry

Core competencies:
Wide range of quality products designed to meet the needs of young consumers
Page 14

U.A.E Marketing

Experienced and loyal stuff. Country wide reputation Conservatively priced Innovative style of packaging

Page 15

U.A.E Marketing

Boston Consulting Grid

UAE

As per the BCG, Noode achieved the of be positioned as cash Diagram 3 Boston Consulting Grid cows. The new launch of its products in U.A.E is expected to have a fair growth Noode in UAE (UAE), Noode in US(US) rate but need to capture the market share in order to become a star and eventually be a cash cow. has a
US

reputation in market its where most products can

Page 16

U.A.E Marketing

Macro Environment Of U.A.E

Every organization should understand their operating environment as it allows them to take advantage of the opportunities and minimize threats. The following analysis illustrates the environment of operating. U.A.E in which Companies will be

Demographic Environment:
The study of populations in terms of size, density, location, Age, Gender, Occupation and other statistics.

Page 17

U.A.E Marketing

Languages: Arabic (official), Persian, English, Hindi, Urdu Religions: Muslim 96% (Shia 16%), other (includes Christian, Hindu) 4%

Population:
5,148,664 (July 2011 est.)

Age structure:
0-14 years: 20.4% (male 537,925/female 513,572) 15-64 years: 78.7% (male 2,968,958/female 1,080,717) 65 years and over: 0.9% (male 30,446/female 17,046)

In 2010, the U.A.E's population was estimated at 8,264,070[4] of which less than 20% were U.A.E nationals or Emiratis, while the majority of the population was expatriates. The country's net migration rate stands at 21.71, the worlds highest.

Page 18

U.A.E Marketing

23% of the populations are non-Emirati Arabs and Iranians and the majority of the population, about 50%, is from India. Approximately 1.75 million Indian nationals reside in the U.A.E, making them the single largest expatriate community in the country. The population of the U.A.E has a skewed sex distribution: With a male/female sex ratio of 2.2 for the total population and 2.75 for the 1565 age group, the U.A.E's gender imbalance is the highest in the world.

About 88% of the population of the United Arab Emirates is urban. The remaining inhabitants live in tiny towns scattered throughout the country or in the many desert oilfield camps in the nation.

Social Environment:
Culture:
Page 19

U.A.E Marketing

Arabic traditions and cultures are respected by affluent nationals. A notable concern is on the nations preference of Islamic value based products like Sharia complaint Islamic Banking products, Islamic Sukuks, etc. The economy has a multinational workforce and cosmopolitan lifestyle which encourages foreigners in investing in the economy as compared to other countries in the region. People can follow any religion and culture. The United Arab Emirates has a diverse and multicultural society. The country's cultural imprint as a small, ethnically homogenous pearling community was changed with the arrival of other ethnic groups and nationalsfirst by the Iranians in the early 1900s, and later by Indians and Pakistanis in the 1960s.. Major holidays in Dubai include Eid al Fitr, which marks the end of Ramadan, and National Day (2 December), which marks the formation of the United Arab Emirates. Emirati culture mainly revolves around the religion of Islam and traditional Arab, and Bedouin culture. The influence of Islamic and Arab culture on the region's architecture, music, attire, cuisine and lifestyle are very prominent as well. Five times every day, Muslims are called to prayer from the minarets of mosques which are scattered around the country.Since 2006, the weekend has been Friday-

Saturday, as a compromise between Friday's holiness to Muslims and the Western weekend of Saturday-SundaY.
Page 20

U.A.E Marketing

This unique socioeconomic development in the Persian Gulf has meant that the U.A.E is relatively liberal. While Islam is the main religion, the U.A.E has been known for its tolerant practices. Christian churches can be found alongside mosques and this courtesy has seemingly been extended to Hinduism and Sikhism as there is a place tucked away inside a residential style building which houses a Hindu temple and a Sikh gurudwara. There is evidently no persecution of Hindus or Sikhs which is why it is home to several communities that have faced persecution elsewhere, who are now contributing to the cosmopolitan atmosphere. There are a variety of Asian-influenced schools, cultural centers and restaurants. Increasing numbers of European centers, schools, and restaurants can also be seen in the U.A.E.

Dress and Etiquette:

Most Emirati males prefer to wear a kandura, an ankle-length white tunic woven from wool or cotton, and most Emirati women wear an abaya, a black overgarment covering most parts of the body.Western-style clothing is, however, dominant because of the large expatriate population, and this practice is beginning to grow in popularity among Emiratis.

Page 21

U.A.E Marketing

Etiquette is an important aspect of U.A.E culture and tradition, to which visitors are expected to conform. Recently, many expatriates have disregarded the law and been arrested for indecent clothing at beaches.[142] Western-style dress is tolerated in appropriate places, such as bars or clubs, but the U.A.E has maintained a strict policy of protecting highly public spaces from cultural insensitivity. This is due, in large part, to the effects such practices are considered to have on the social integration and participation of a largely conservative Emirati population.

Food:
The traditional food of the Emirates has always been rice, fish, and meat. The people of the United Arab Emirates have adopted most of their foods from the surrounding countries including Iran, Saudi Arabia, and Oman. Seafood has been the mainstay of the Emirati diet for centuries. Meat and rice are other staple foods; lamb and mutton are the more favored meats, then goat and beef. Popular beverages are coffee and tea, which can be supplemented with cardamom, saffron, or mint to give them a distinct flavor Muslims are prohibited from eating pork, so it is not included in local menus. Hotels frequently have pork substitutes such as beef sausages and veal rashers on their breakfast menus. If pork is available, it is clearly labeled as such.

Page 22

U.A.E Marketing

Alcohol is generally only served in hotel restaurants and bars (but not in Sharjah). All nightclubs and golf clubs are permitted to sell alcohol. Specific supermarkets may sell alcohol and pork, but these products are sold in separate sections.

Dishes forming part of the Emirati cuisine:

Machboos Harees

Al-Khabeesah Al-Khanfaroosh

Lukaimat Batheeth Khamir Al-Madrooba Al-Saloona (Curry) Fareed

Raqaq (flat) Al Jabab Bread

Page 23

U.A.E Marketing

Religions:
Islam is largest and the official state religion of the U.A.E, though the government follows a policy of tolerance toward other religions and rarely interferes in the activities of non-Muslims. However, it is illegal in the U.A.E to spread the ideas of any religion apart from Islam through any form of media as it is considered a form of proselytizing. There are approximately 31 churches throughout the country and one Hindu temple in the region of Bur Dubai.

Technological Environment:
There is huge investment from the government to develop the infrastructure, good telecom system, internet facilities, etc. The implementations of the latest technologies to support the banking system have made U.A.E as advanced as any other developed economy in the world.

Page 24

U.A.E Marketing

Economical Environment:
Increase in Oil prices and non oil based revenue witnessed a high growth rate of the U.A.Es The U.A.E is strategically located in the midst of one of the richest regions and is served by over 120 shipping lines and linked via 85 airlines linked to over 130 destinations making it an attractive industrial hub coupled with No corporate and income tax, low custom duty of 4% and no foreign exchange controls makes it more attractive for foreign investors. High inflation rates and fear of possibilities of exchanges rates de-pegging against the US$ keeps the investors away from making huge investments in the U.A.E economy. U.A.E oil reserves are ranked as the world's sixth-largest[12] and it possesses one of the most developed economies in West Asia. It is the thirty-fifth-largest economy at market exchange rates, and has a high per capita gross domestic product (GDP), with a nominal per capita GDP of US$ 47,407 as per the International Monetary Fund (IMF). It is 15th in purchasing power per capita and has a relatively high Human Development Index for the Asian continent, ranking thirtieth globally. The U.A.E is classified as a high-income developing economy by the IMF.

Page 25

U.A.E Marketing

At the time of independence, the U.A.E was already regarded as a rich country with GDP per capita exceeding US$ 2,000. In 2011, U.A.E is ranked as the 14th best nation in the world for doing business based on its economy and regulatory environment, ranked by the Doing Business 2011 Report published by the World Bank Group.

With almost US$ 1 trillion in foreign invested assets, some argue the U.A.E to be the richest, with the highest average income in the world. Over half of this money is generated by the nation's capital, Abu Dhabi. With a population of just under 900,000 Abu Dhabi was labeled "The richest city in the world" by a CNN article. U.A.E's economy, particularly that of Dubai, was badly hit by the financial crisis of 20072010,. In 2009, the country's economy shrank by 4.00%, but U.A.E's overseas investments are expected to support its full economic recovery. However, concern remains about the property sector. Property prices in Dubai fell dramatically when Dubai World, the government construction company, sought to delay a debt payment. The ability to service debt remains a problem. Petroleum and natural gas exports play an important role in the economy, especially in Abu Dhabi. More than 85% of the U.A.E's economy was based on the exports of natural resources in 2009. Major increases in imports occurred in manufactured goods, machinery, and transportation equipment, which together accounted for 80% of total imports.
Page 26

U.A.E Marketing

Another important foreign exchange earner, the Abu Dhabi Investment Authority which controls the investments of Abu Dhabi, the wealthiest emirate manages an estimated $360 billion in overseas investments & an estimated $900 billion in assets. More than 200 factories operate at the Jebel Ali complex in Dubai, which includes a deep-water port and a free trade zone for manufacturing and distribution in which all goods for re-export or transshipment enjoy a 100% duty exemption.

Except in the free trade zones, the U.A.E requires at least 51% local citizen ownership in all businesses operating in the country as part of its attempt to place Emiratis into leadership positions. However, this law is under review and the majority ownership clause will very likely be scrapped in order to bring the country into line with World Trade Organization regulations. The currency of the United Arab Emirates is the Emirati Dirham.

Page 27

U.A.E Marketing

GDP (purchasing power parity) : $246.8 billion (2010 est.) country comparison to the world: 51 $239.1 billion (2009 est.) $246.9 billion (2008 est.) note: data are in 2010 US dollars

GDP (official exchange rate) : $301.9 billion (2010 est.)

GDP - real growth rate : 3.2% (2010 est.) country comparison to the world: 117 -3.2% (2009 est.) 5.3% (2008 est.)

GDP - per capita (PPP) :

Page 28

U.A.E Marketing

Inflation rate (consumer prices) : 0.9% (2010 est.) country comparison to the world: 21 1.6% (2009 est.)

Budget : revenues: $85.77 billion expenditures: $92.15 billion (2010 est.)

Taxes and other revenues : 28.4% of GDP (2010 est.) country comparison to the world: 101

Budget surplus (+) or deficit (-) : -2.1% of GDP (2010 est.) country comparison to the world: 80
Page 29

U.A.E Marketing

Political and Legal:

U.A.E is a low crime and politically stable economy; as a result foreign investors are attracted to U.A.E as diversification strategies. The U.A.E government is on a regular effort improving business relations with trade and investment partners in US and Asia

Pest Analysis
Political & Legal Open Economic Policies No Exchange controls Emiratization Regional political Instability Low Crime economy No political agitations, stikes, etc Economical High Oil Prices No Corporate or Personal Income Taxes High Inflation Strategic Location

Stable government and no expected From US$ change Planned in the near future.

Possibility of exchange rate depegging

Page 30

U.A.E Marketing

Social Arabic Traditions & Islamic Values Multinational workforce Increasing population Cosmopolitan life style

Technological for High investment from Government

telecom, energy and infrastructure Development of technology High speed internets, etc. Virtual Banking systems.

U.A.E Market

Page 31

U.A.E Marketing

Page 32