Analysing the Organisational Environment - Essay Example

International Marketing Introduction International markets have proved to be a successful platform for many domestic players. A product launch strategy comprises of many important factors such as micro and macro environmental analysis so as to understand the growth and scope of the product to be launched in a specific international market. The product to be launched in the markets of United States is Arabic cuisine or national food cuisine of Arab. Arab cuisine comprises of various regional cuisines that are traditionally found across the Arab world. It comprises of all cuisines from Saudi Arabia to Mesopotamia and even encompasses other traditions such Egyptian, Levantine and many more. The Arab cuisine ay emphasis on the following items such as lamb and chicken preparation in the meat products, dairy products mainly consist of butter, yoghurt, white cheese and cream, herbs and spices that are mainly used are a mixture of mint and thyme known as za’atar, other spices include saffron, sesame, cumin, garlic, cinnamon, sumac, lentils comprise of chickpeas and favabeans, and most popular dressings of such cuisines comprise of olive oil, parsley, mint, etc. The company that is planning for its product launch in the international market is Al Qasr that is one of the famous names in Arabic cuisines and the restaurant chain is known for its Arabian delicacies, wide range of deserts and appetizers, and Lebanese cuisine. Al Qasr has been operating in Arabic regions for many years and meets the consumer tastes and preferences through its innovative dishes with traditional flavors. Target market and positioning United States as the target market for the company offers great opportunity as the political conditions are stable of the country and even the consumer market has high disposable income and living standards. The demand is high in this market for Arabic cuisines because of its flavors and variety. Many companies have invested in this market because of its stable environmental factors and availability of raw materials, capital and labor. The target market for the Arabic cuisines to be launched by the company would be upper middle income and higher income group who prefer to dine at restaurants mostly in weekends. The other demographic factors comprise of age and for this specific cuisine the age group would be above 25 years who prefers to try out different cuisines apart from the fast food which are generally more preferred by the young generation under 20 years. Competition is very tough in the US market as it a hub for many companies serving different cuisines such as European cuisine, African cuisine and even Arabic cuisine. So for Al Qasr it would not be a completely unexplored market (Allen 34). The company needs to position itself as serving customized cuisines with flavors and spices of Arab regions and even expand its food items range including new innovative beverages. The Arabic food cuisine needs to be positioned as traditional flavored dishes offered at a unique Arabian atmosphere to the customers at affordable price rates and even offer customized food items as per the preferred variety of spices of the customers. This customized food items along with some traditional flavors would help to give a competitive position to the Arabic cuisine offered by the company. Marketing Mix Product Decisions The Arabic food cuisine that is to be offered by the company would comprise of all the traditional flavors of Arab regions ranging from Mesopotamia to Saudi Arab and even would comprise of some Lebanese dishes. The cuisines that would be offered by the company would not be only some traditional dishes but even the consumers can customize the dishes as per their taste and preferences towards spices and other ingredients that are used in such cuisines. The major cuisines that is to be offered are Kleeja, Ful Medames, Murtabak, Maqluba, Shish Kebab, pickled lemon, kabsa, kebbeh, dolma, labneh, matboha, hummus, baba ghanoush, waraq enab, kanafeh, baklava, hibiscus tea, qatayef, kleicha, halva, toum, shish taouk, fattoush, and many more Lebanese and Jordian cuisine. The major attributes of the cuisine to be offered would be its taste, Arabic flavors and spices, and wide use of Lebanese sauces, parsley leaves and mint as dressings. The product would be beneficial in terms of usage of less number of spices in dishes which is more of healthy preparation for the target market and even the consumers can get customized dishes according to their preferences towards different spices (Kahn 115). The target market would be able to enjoy different cuisines of Arab regions along with wide array of desserts and beverages. In order to fit the product in the markets of US product adaptation strategy should be adopted by the company where the focus would not only to promote Arabic cuisines but also to analyze the taste and preferences of the consumer market of US and offer them more of customized Arabic dishes. The dishes that would be offered by the company would be medium to higher price as per the target market and hence the sales revenue for the company for the first year would be $15million and second year would be $20 million can be approximately projected in the US market. This is just on the basis of the rising demand of consumer market towards different cuisines across the globe. Pricing decisions The target market forms the basis to decide the pricing strategy for many companies. Similarly for this new product launch into the US markets the target market is the consumer group belonging to upper middle class and upper class segment. As per the target market segment the most appropriate pricing strategy for the company would be premium pricing strategy. This strategy should be adopted by the company for its Arabic cuisines simply because the quality of the dishes to be offered to the consumer market would be high and the target market for the products has high purchasing power or disposable income so as to afford such premium priced delicacies. This pricing strategy would also help the company to achieve maximum profit margins in the initial years as long as there is any new entrant in the same sector in which the company would operate in the US market (Pandey 97). However such pricing strategy would even comprise of some negative influences in the form of sustainability as if the consumer gets an opportunity of getting the same cuisine at a cheaper rate then it would bring down the sales margin of Al Qasr and even it would be a difficult for the company to maintain is revenue growth in future as the competition becomes intense with more number of players offering the same cuisines. The other negative impact would be that if in later years the company decides to bring down its prices as per the competition then it would create a perception amongst the consumer market that the company is compromising on its quality which would have a drastic affect on the brand image of the company. Channels of distribution Distribution channel forms the major element of the marketing mix for a product launch into a completely different market. In order to expand its business Al Qasr needs to invest into infrastructure and equipments so that it can offer its wide range of Arabic cuisines to its customer base in US market. The investment to be done by the company would be high in an unknown market so the best mode of distribution would be through franchisee (Sullivan 156). The franchisee stores would help in reducing the investment that the company had to undertake otherwise and even helps in reducing the risk factor. The parent company would share its expertise and other necessary requirements with all the franchisees and even impart proper training to the people involved in the franchisee stores so that best quality food and service are delivered to the consumers. Promotion The promotional techniques to be used by the company would be based on multiple media. The reason behind using multi-media is that it would help in capturing more attention of the large consumer base situated across the US market. The other factor is that it would help to overcome the failure that one media platform can result by another media option. The channels to be used by the company for promotion would be leaflets in daily newspapers, billboards, radio ads, even advertisement in some social networking sites, and some promotional events in the form of keeping stalls of Al Qasr in various food festivals hosted in United States (Pinson 56). The estimated budget of the company for these promotional activities for the initial two years would be approximately $6 million. The key advertising message of the company would be to make the US consumer market aware of the wide array of cuisines that would encounter at Al Qasr with pleasant ambience and friendly service. The main tagline for all its advertisements would be –“Arab world at your doorstep. Experience the different cuisines of the regions at your nearest franchisee”. Conclusion The US market has been the most attractive market for many companies for its growth scope and market demand. The market has also witnessed many different cuisines and has been successful over the years as per the market demand which is more inclined towards new varieties and good quality food. This is a great opportunity for Arabic cuisine to meet the hidden demand of consumers and also there is less availability of wide range of Arabic food as it is to be offered by Al Qasr. Since the competition is low in this particular segment and the consumer market demand is high because of it varying preferences and tastes and even high purchasing power and living standards which forms the basis for the success of the product into this new international market. References Allen. Melanie., Analysing the Organisational Environment. UK : Select Knowledge Limited. 2006. Print. Kahn, Kenneth. Product Planning Essential. USA: M.E. Sharpe. 2011. Print. Pandey, Indra. Finance: A Management Guide For Managing Company Funds And Profits. New Delhi: PHI Learning. 2006. Print. Pinson, Linda. Anatomy of a Business Plan. USA: aka associates. 2008. Print. Sullivan, Robert. The Small Business Start-up Guide. Cambridge: Information International. 2000. Print. Read More