International Marketing Plan in Saudi Arabia

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Table of Contents

Introduction
Environmental analysis
Strategic planning
Timing and mode of entry
Marketing mix
Measuring, managing and controlling marketing efforts
Conclusion
Works Cited

Introduction

The marketing plan involves the introduction of an electric brush known as Oral-B Deep Sweep Power Brush; it was invented and sold by P&G. This revolutionary product was patented by the organization on 24 January 2013. It has never been sold in the Gulf region, let alone Saudi Arabia. It has a rechargeable system, and can reach hard to reach places between the teeth as well as the teeth and gums.

Environmental analysis

The Saudi economy is highly dependent on imports for consumer goods. This pattern is true for oral or dental products. In fact, 70% of the oral care industry is controlled by US firms. Therefore, it will make sense for P&G to enter this existing market. It already has a reputation in the country, so one more products from the organisation is likely to do well.

The Saudi Arabian economy is dominated by petroleum-based products. In fact, 80% of the nation’s budget stems from the oil industry (CIA 26). This state of affairs makes the country highly susceptible to fluctuations in oil prices. Furthermore, unemployment among Saudi nationals is rife because many non nationals control the petroleum industry.

It would be sensible for P&G to consider manufacturing the toothbrushes in the country so as to gain an edge over other competitors who always import finished products into the country. In the oral care industry, clinicians have been doing business with European and Far Eastern suppliers. However, this is going to change because these professionals now want cheaper sources.

Therefore, P&G Saudi would be in a stronger position than its competitors from these traditional import zones. Unfortunately, patent protection is not a priority in this country as Saudi is ranked quite poorly by the USTR. P&G would have to be careful about its novel product.

The Saudi government is heavily involved in business. It has made it illegal for foreign organisations to establish operations in the country without the presence of a local sponsor. P&G Saudi already knows about this requirement, and would not have to go through such rigorous procedures.

The government of Saudi provides free dental treatment for locals. These services are available in the public and private sectors and could be an effective channel for reaching the target market. However, one should note that most dental facilities are under the Ministry of Health. Only 33% of the dental care industry is under public and private stakeholders.

Promotional activities will have to involve the government in one way or another. Nonetheless, private players still have a lot of influence in this sector because foreigners do not have access to free dental care. Dental experts can still endorse P&G’s new toothbrush and elicit a feeling of credibility among buyers.

Consumers in Saudi Arabia represent one of the wealthiest nations of the Middle Eastern region. Therefore, they have surplus income to purchase personal or household products. Since a high percentage of foreigners live in Saudi Arabia, many of them are open to western technologies and techniques of oral care. The population growth rate in the country is relatively high.

This means that more consumers will be available to purchase Oral-B Deep Sweep. Some of the cultural habits in the country will also make the product ideal for Saudi consumers. Many nationals have the habit of smoking and drinking coffee. In fact, statistics indicate that 35% of the population smokes, and about half of this percentage recently quit the habit (Phystone 5).

Additionally, statistics also indicate that bad oral habits are rife among the younger population. Children in this country eat a lot of chocolates. The number currently stands at 4.8 times weekly. Since 47% of the country consists of young people below the age of 14 years, then it will be necessary to sell them a product that can neutralise some of their negative oral care habits.

Periodontal and other dental diseases are common because Saudis only brush their teeth for 20 seconds rather than the 3 minutes recommended by dentists. In rural areas, parents send their children to sleep just after breast feeding. Most of them continue with the practice until children are two years. As a result, small children get dental diseases. It will be helpful to market a toothbrush that can be used by small children easily.

Strategic planning

The product will have a competitive advantage over other brands owing to its reputation. A company like Butler has marketed itself as a leader in brush design. Silvercare focuses on value addition and price in that it sells two heads for the price of one brush. Crest is also quite popular in the Saudi market. It is also known for aggressive promotional tactics, such as, banners, posters as well as use of medical representatives.

Most of these competitors sell manual brushes. The few electric brush sellers account for a very small portion of toothbrush market share. Oral B Deep Sweep power brush will market itself as the most convenient brush to use. This product has become popular in western nations like the US and UK owing to its ease of application.

Persons with dexterity challenges like the elderly, sick and the young will find that this product is priceless. Additionally, normal adults will also spend less time in the bathroom when brushing. This feature is relevant to busy people because they will have more time to spend on productive activities. Additionally, and most importantly, brushing teeth well within a short time has an effect on one’s susceptibility to dental diseases.

As mentioned earlier, most Saudis spend substantially less time brushing their teeth and this exposes to them to dental diseases. It would be better to prevent the occurrence of this problem by brushing their teeth more effectively in that short span of time.

Therefore, the positioning strategy for the organisation will be dependent on the product characteristics. Marketing strategies will illustrate just how easy this product is to use. They will also highlight the effects of using such a convenient product. It will be effective to fight plaque through the right toothbrush.

Timing and mode of entry

The Oral B Deep Sweep Brush is a new product. It will be better to test it in other mature markets that are exposed to electric brushes. After piloting the product in those nations, then P&G can work on bringing it to the Saudi market. The company should give this product approximately 3 years to allow for acclimatisation and feedback from consumers.

Therefore, the product should enter the Saudi market in 2015. The mode of entry is dependent on the environmental factors analysed above. As stated earlier, many dentists and other stakeholders are looking for cheaper sources of oral supplies. Additionally, the government of Saudi Arabia strongly encourages foreign investors to produce goods within the Saudi borders rather than import them internally.

Since P&G already has local plants in the country, it will be effective to produce the products in Saudi. This will allow the company to take advantage of raw materials within the premises. It will also save on tax and tariff costs associated with importing the product (Keegan and Green 44).

This will make it easy to sell to the local market. Most of the other players who were selling electric brushes have not been doing well in Saudi because their products have been costly. Their manufacturing costs in western nations have not allowed them to sell the product at an affordable price.

It is imperative to reduce the building cycle of this commodity by bringing it closer to home. Additionally, Saudi Arabia can then be the supplier of electric brushes to other Gulf countries like Qatar, Kuwait and the UAE. The Saudi government is trying to encourage diversification of the economy; therefore, electric toothbrush manufacture would be a welcome initiative.

Marketing mix

Most of the consumers in the Saudi market respond well to attractive packaging. Therefore, this is an aspect that the company should pay attention to when presenting the toothbrush to the public. Many Saudis rely on television as their prime source of information. In these advertisements, companies often rely on product endorsements from pharmacists, dentists and other professionals.

As a result, this marketing plan will involve the use of the same approach. The Saudi consumer market also likes discounts and other price incentives. This will form part of the promotional strategy for the plan. The product qualities that will receive great emphasis in the marketing strategy are the ease of use and effectiveness of the brush.

This product can reach between closely aligned teeth without having to pock or use different tricks to get to those areas. Additionally, its ability to clean the area between the gums and the teeth will be impressive. It should be noted that although the product is already promising, not everyone will come running at P&G’s door. It must lure its clients by making them see why they need an easy-to-use brush.

They must realise that it will not just save time but will be making brushing effective thus saving them from periodontal diseases. This aspect of convenience will be on the product packaging. In order to attract consumers’ attention, pictures of different consumers using the Deep Sweep brush will be displayed on the packaging.

In terms of place, as part of the marketing mix, the product will be available in supermarkets and retail stores. In the past, most electric toothbrush sellers relied on electric shops as their sales points. This toned down electric toothbrushes to novelty items that did not seem relevant to the typical consumer. P&G Saudi will seek to change this conception by making the product available to the mass market.

It will increase visibility of the product in supermarket stores such that individuals can know what the product is about. First, the organisation should make the product available in stores within the capital, Riyadh. Thereafter, it will roll out the commodity into other stores around the country. Emphasis will be on metropolitan areas first; that will be during the first two years.

Thereafter, the company can take the product to other less-developed parts of the country. The most critical component of this marketing plan is the promotional aspect. As stated in the environmental analysis, most Saudis respond well to television advertisements. However, these advertisements usually consist of product endorsements from professionals.

Therefore, advertising will form a critical part of the promotional campaign. One advert will be available on radio and television. This advert will start with a small child who uses the toothbrush in record time. Then an older person will brush his teeth with the same product and he will appear surprised at how easy the whole process was. Finally, an adult in his early thirties will also do the same.

These scenes will follow each other seamlessly such that when one person finishes, the next one appears. A dentist will speak towards the end of the advert by stating the advantages of an easy-to-use brush like Oral B Deep Sweep. He will emphasise the preventive aspects of effective brushing and its ability to fight plaque. A version of this advert will be available on radio.

However, the visual parts from the television set will be stated vocally by a person. The models used on the television adverts will then be photographed and placed on the product packaging as well as banners and posters. These latter components will be available in traffic-prone areas. Consumers will have a better chance of seeing the product if they have nothing else to do but stare at their surroundings.

In order to get a legitimate dentist recommendation, the organisation will need to work on building its brand among this group of individuals. During the three years that the product has before entering the Saudi market, P&G must lure these professionals by advertising in their journals and magazines. Dentists must get familiar with the commodity in order to render credibility to it.

Since many Saudis are not familiar with the need to prevent dental diseases, it will be essential to sensitise them on this need through outreach programs. The company will sponsor a nationwide campaign about teeth. In the campaign, dentists will check consumers’ teeth for free. They will also recommend the electric toothbrush product during transmission of the same.

These mobile dental clinics will have huge banner displays of the new Oral B power toothbrush. However, one should note that dentists must talk about other aspects of oral care with the patients. This will prevent consumers from dismissing the campaigns as just another marketing gimmick (Norman 146). The clinics will be available in prominent malls around the country. Some success has already emanated from the use of worldwide campaigns to sell the product.

Finally, price will also be an important part of the marketing effort. Since many consumers have refrained from buying power brushes because of their price, it will be essential to offer these brushes at a price that is significantly lower than the market price. Other organisations have not been in a position to offer lower pricing because they manufacture their products outside Saudi Arabia.

This is not true for P&G which can pass on its savings to consumers who will purchase the items. Since the product will already be available to consumers at a market-friendly price, then discounts will not form part of the marketing effort. When an organisation introduces a new product to an existing market, it must always consider the extent to which it will adapt or standardise its products.

In this case, P&G already has a presence in Saudi Arabia. It often standardises its products because Saudi consumers do not have high expectations. The same will be done for Oral B Deep Sweep Power brush. A standard product will enter this market.

Measuring, managing and controlling marketing efforts

The key goal of introducing this product to the Saudi market is to increase P&G’s revenue. Therefore, the marketing effort must yield substantial outcomes from the effort. It will be imperative to record the sale of the product three months after starting the campaign. The organisation should record a 50% increase in the consumption of the product.

This should then be followed by an increase of 10% in the next six months and another 10% after. Advertisements will run across most television and radio stations for a period of one year. This will be sufficient to inform the public about the presence and advantages of the products.

Conclusion

Most Saudis have poor oral care habits. They need a product that will improve tooth brushing thus minimising their susceptibility to periodontal diseases. The Oral B Deep Sweep Power Brush will market itself as the easiest brush to use. Promotional campaigns will emphasise this component and explain why ease of use is scientifically advantageous to consumers.

Dentist recommendations will form a critical part of the campaign through television advertisements. The same message will also be available on the toothbrush package as well as banners, radio and posters. Mobile clinics, favourable pricing and supermarket visibility are other components of the marketing mix. Through this rigorous marketing approach, it is likely that consumers will switch from manual to electric brushes owing to P&G’s initiative.

Works Cited

CIA. The world factbook: Saudi Arabia. 2013. Web.

Keegan, Warren & Mark Green. Global Marketing. Upper Saddle River, NJ: Pearson Prentice Hall, 2011. Print.

Norman, Jan. What no one ever tells you about starting your own business. Chicago, IL: Kaplan Publishing, 2004. Print.

Phystone. Kingdom of Saudi Arabia dental market survey. 2007. Web.

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