Assignment CoverSheet

Course/Unit InformationCourse Post Graduate Diploma in International Marketing

ManagementUnit Name International MarketingManagementUnit code SFM107-PGD-IMM-1709Batch 1709

Instructor InformationName Parag TikekarPhone 055-9566409Email paragtikekar@yahoo.com

Assignment InformationFull/ Part Assignment Full AssignmentDate Assignment Issued

15th September2017

Date Assignment Due 21st October 2017

Student Information(To be filled by the student prior submitting the assignment)

Name DERRICK EBUA TEGHAEmail teghaderrick@gmail.comDate of Submission Friday, 20 October 2017

Student Declaration

I, DERRICK TEGHA (Name) hereby confirm that this assignment is my own work and not

copied or plagiarized. It has not previously been submitted as part of any assessment for

this qualification. All the sources, from which information has been obtained for this

assignment, have been referenced as per Harvard Referencing format. I further confirm

that I have read and understood the Westford School of Management rules and

regulations about plagiarism and copying and agree to be bound by them.

Students Signature : DERRICK EBUA TEGHA

Student Name : DERRICK TEGHA

Date : 20-10-2017

Learning Outcomes and Assessment Feedback

Module Code & Title

SFM107-PGD-IMM-1709

International Marketing Management

Module Learning Outcomes

LO1 Analyse the changing business environment(s) globally and how they pose challenges to marketing management functions in organisations.

LO2 Develop marketing plans with application of appropriate marketing models, tools and techniques.

LO3 Evaluate the processes involved in brand management and how they influence

consumer behaviour.

LO4 Evaluate the skills set needed as a creative marketer to launch new products/services in a dynamic global marketplace.

Assessment types Marks Marks Awarded

Organizational Study (Project Format)

Executive Summary & Introduction

10 6

Introduction & Background 15 8

Application of Theory into Practice

60 46

Conclusion & Recommendations 15 10

Overall Score 100 70Overall Grade DISTINCTION

Date Sunday, 22 October 2017

Internal Verification ReportInternal Verification Done By Date

Assignment Brief Click here to enter a date.Assessors Decision Click here to enter text. Click here to enter a date.

The following grading criteria will be applicable for the course, Executive Diploma inInternational Business Management:

Marks Grade70 to 100 A – Distinction60 to 69 B – Merit50 to 59 Pass

40 to 49 Fail with Resit

0 to 39 Fail with Retake

General Guidelines(Please read the instructions carefully)

1. Complete the title page with all necessary student details and ensure that the signatureof the student is marked in the declaration form.

2. All assignments must be submitted as an electronic document in MS Word to theLMS (Use 12 Times New Roman script).

3. Assignment that is not submitted to the LMS by the prescribed deadline will beaccepted ONLY under the REDO and RESIT submission policy of Westford.

4. The results are declared only if the student has met the mandatory attendancerequirement of 75% and/or a minimum of 50% under extenuating circumstancesapproved and ratified by the Academic Director.

5. The assignment should not contain any contents including references cited fromwebsites likewww.ukessays.com, www.studymode.com, www.slideshare.net ,www.scribd.com.

6. Students can refer Wikipedia as a source of information, but the references citedin Wikipedia has to be mentioned.

7. Submit the assignment in a MS Word document with the file name being:First Name Last Name_ abbreviation of the subject. Example: John Smith_IMM.

Quick reference Checklist for the Faculty/Instructor to accept/reject the assignmentbefore evaluation:

1. Adherence to the deadline of submission date.

2. Original cover sheet and format retained.

3. Student information and signature intact.

4. Font style and size used as instructed.

5. Harvard Referencing System and Citations are strictly followed.

Assessment Brief: Task and General Guidelines

Scenario:

Choose any international organization (with any product) of your choice preferably whereyou are working or worked with or familiar with and prepare an entry plan for

international markets. Your report should investigate various factors that influence theentry mode of the company into the global market along with the potential barriers thatmight hinder the expansion of the chosen firm. Various marketing strategies in order toenter into the international market should also been explored. The details of the expectedproject report format is given below:

1. Executive Summary:[10 Marks]

2. Introduction: Provide some background information on the chosen organizationin the context of marketing management. [15 Marks]

3. Application of theory to practice: Thefollowing concepts/theories/modelsshould be covered:

(1) Marketing process and strategies. [10 Marks]

(2) A critical evaluation of marketing mix of the chosen organization. [20 Marks]

(3) The role of marketing models, tools and techniques in developing newproducts and effective marketing plans. The models discussed should include atleast one model among (Porter’s Model, SWOT Analysis, and PESTLE) and atleast one Model among (BCG Matrix, Ansoff Matrix and Product Life CycleModel). [30 Marks]

4. Conclusions and Recommendations:Provide recommendations for adequatemarketing strategy for the chosen organization to expand the business in theglobal market. [15 Marks]

5. References: you should use the Harvard referencing system only.

TABLE OF CONTENT

EXECUTIVE SUMMARY ……………………………………1

INTRODUCTION ………………………………………………21.1 BACKGROUND ABOUT AL AIN DAIRY1.2 MARKETING MANAGEMENT CONTEXTAPPLICATION OF THEORIES…………………………………31.3 MARKETING PROCESS AND STRATEGY1.4 THE SWOT ANALYSIS1.5 THE MAKETING MIXTHE ROLE OF MARKEING MODEL……………………………41.6 PORTERS FIVE MODEL1.7 THE PRODUCT LIFE CYCLECONCLUSION AND RECONMENDATION………………………5

1. Executive Summary:

This thesis examines what type of entry strategy Al Ain Dairy should pursue in South Africa. Al Ain Dairy the largest dairy producer in the UAE and the prominent brand in the market is expanding its growth across South Africa as the Gulf’s dairy sector continues to thrive. The company has witnessed significant growth in the hypermarket sector during the last 10 years with a current local market share of 38 per cent, but the renowned producer of milk, yoghurt and laban drinks is beginning to cast its eye overseasat the larger export market, with new products on the horizon. The examination of this thesis takes its basis in the questions of why Al Ain Dairy should consider entering into South Africa, where to enter and how to enter in terms of entering mode, timing and commitment as well as market positioning. The call for a thorough investigation of this research area is generated by a mix of growing interest of dairy product and market potentials in South Africa and of strategic management literature which to an increasing scale focuses on the business potential in least developed countries. In order to formulate a strategy for Al Ain Dairy, the company propose an analytical framework that incorporates key issues from international business literature, emerging market literature and literature of the South Africa dairy market. The purpose of the analytical framework is to guide and structure the analysis and research. In this relation, it is identified that the answer to the choice of entry use by Al Ain Dairy in South Africa can be found in the combination of external factors in the market and internal factors in the company. External factors are identified as market, industry and institutional variables, while the internal variables consist of Al Ain Dairy previous experiences and capabilities. It is clearfrom the empirical findings and the theoretical elaboration that the external and internal factors and variables speak in favour of an entry into South Africa. An increased consumption of imported dairy products in South Africa is identified to be driven especially by market variables such as economic growth, urbanisation and rising purchasing power, but also by an industry characterised by inadequate local production levels to meet demands. Al Ain Dairy has the opportunity to benefit from a latent market potential in the region by adjusting its entry and attention towards particular segments, including the lower income segments.

However, despite indicative signs of market opportunities for Al Ain Dairy, this potential is not unconditional. The findings of the market research are supported by the theoretical indications that South Africa is characterized by institutional voids and uncertainty as well as the fact that aggregate growth is developing from a relatively low level and the fact that the country is suffering from economic downturn due to corruption. Nonetheless,both regional and global dairy companies have been present in the market for many years, demonstrating a potential to generate profit. Companies like DANONE, Clover, and Parmalat SA. With Al Ain Dairy previous experience from operating in the Middle East, Al Ain Dairy has the possibility of exploiting its already acquired knowledge and capabilities in the industry and represent the best market potential, based on the selected methodology for predicting the sales of Al Ain Dairy products and thereby an entry into these markets. The selection of South Africa is not only made on the basis of the markets‟economic performance indicators, but also on the interplay of infrastructural options, labor supply, consumption patterns, institutional performance and retail development, andthe company new international police. while at the same time taking into consideration Al

Ain Dairy success in the UAE has given him an upper hand in the industry especially with its latest opening of a brand new, state-of-the art factory for the production of camel milk ice cream and camel milk powder and are the first tousle spray dry technology to produce camel milk powder. Also with the expansion of a new factory which will triple production once finished and also a new water treatment facility is under way to conserveresources, planned to treat 2,000cubic meters of water per day . Based on the external factors and Al Ain Dairy tradition of performing low-risk market expansions, it seems reasonable at this stage to follow an incremental market entry, thus maintaining a joint venture and acquisition strategy in order to minimize risks and develop knowledge. In terms of timing and commitment to the market and to lower the uncertainty of the external market environment, Al Ain Dairy would benefit from pursuing a “follower” position. It is identified in the emerging markets literature that companies are often faced with a trade-off between pursuing a global brand strategy that aims at the premium market segment versus one that aims at the mass market at the lower end of the economicpyramid through large scale and cost-efficient production. Nevertheless, the market assessment of this thesis identifies the opportunity to pursue both kinds of strategies in a number of selected markets, and Al Ain Dairy should therefore incorporate them both in its market positioning. The thesis ends up proposing a step entry strategy for Al Ain Dairy to pursue in South Africa. This includes a preliminaryexpansion of its existing markets (U.A.E and Middle East) with particular attention to targeting different income segments. This way, selected promising markets in South Africa can be entered in a manner that accommodates and corresponds to the current development of Al Ain Dairy capabilities and market knowledge

2. Introduction: Provide some background information on the chosen organization in thecontext of marketing management.

CHOSEN ORGANIZATION AL AIN DAIRY

ABOUT AL AIN DAIRY

Al Ain Dairy is the largest dairy and juice producer in the UAE. Founded in 1981, by His

Highness Sheikh Zayed Bin Sultan Al Nayhan in Al Ain UAE. With original stock

imported from Australia, the farm now breeds its own over 3,000 head of milking

steers. It also has a camel farm with more than 200 dairy animals. The UAE has 26 dairy

farms with 15,000 head of milking cattle, but the dairy industry is still in its early stages

of development and consequently the majority of dairy products used in the country are

imported. However, Al Ain Dairy is a pioneer in the UAE dairy farm industry and has

made significant investments in dairy production technology including high-speed

packaging machines, bacteria testing equipment and well-equipped laboratories in

fulfillment to its vision which is, to be recognized as the preferred choice of dairy

products in households in the Emirates. The company has undergone a dramatic

transformation since its inception, perhaps more so in the last 7 years as the strength of

the brand got reinforced by popularity and loyalty from consumers and sales growth. Al

Ain Dairy today has a significant value proposition and unshakeable brand value. As the

company has evolved and diversified so too have its entire operations. Today, Al Ain

Dairy is not only embarking on its most radical transformation yet with the further

expansion of its plant, farm, and additional livestock and boosting of production outputs

by more than double, The company has been consistently delivering quality dairy, juice,

yoghurt and dessert products for over 30 years .From their impressive farm and factory.

The company is producing an ever growing portfolio of fresh dairy products, and it’s the

first company in the world to introduce Camel milk ice cream and Camel milk powder to

the mass market. This is to maintain and support their mission statement as they aim to

lead the dairy industry in milk innovation and to offer consumers with a variety of high

quality and safe products at affordable prices. The flag ship brand encompasses the staple

fresh cow milk and juice products, while the camel milk products are marketed under the

premium Camelait brand and includes a full range of fresh camel milk, flavored camel

milk, laban, ice cream and milk powder. They also offers a wide range of dairy and juice

products that everyone can enjoy, conveniently package in all size and price ranges.

These items provide a healthy alternative for those seeking a far more nutritious option

over standard cow’s milk. Camel milk ice cream and camel milk powder are the two new

products recently introduced into the market, with Lactose free milk as one of the product

in demand in the world. The company continues to stay at the forefront of innovation and

technology while holding true to its proud Emirati heritage, and as the company embarks

on rapid expansion plans, providing exciting new products to meet the changing needs

and testes of its customer. The company continues to grow and lead the dairy industry

and is on track for exponential growth in all sectors and eye the international market for

export of Camelait products. Due to their continuous innovation and hard work, Al Ain

Dairy has succeeded in its vision to be recognized as the preferred choice of dairy

product of household in the emirates. The company is a recipient of the ISO 9001 and

ISO 22000 certification, Awarded most innovative product by SIAL middle East and

received BBC good food award for favorite Dairy Brand.

Al Dairy Marketing Management Strategy

In an industry that is highly competitive with new players coming in like Unikai Food, DANONE and host of others a good marketing strategy is highly important in other to secure a comfortable market shared. Al Ain dairy in other to lead the industry and to stay competitive launched an innovative packaging( tetra pack) for fresh chilled milk made of more than 60 percent renewable sources to lead the fight back against environmental waste, while also giving consumers greater convenience and more choice. Al Ain Dairy uses various marketing strategy to create awareness. An increase in labor force in 2009 from 685 to 750 was a means to cope with its production level. it should be noted that theincrease in labor force was as a means to create more opportunity to the vast public thereby marketing the brand as there was an increase in production of 170,00 liters of milk per day has sales increase by 18 percent in the first quarter of that year. One way in which Al Ain dairy market its product is by product segmentation i.e. Dairy product,

Camelait products and Juice products. With a diverse range of milk, camelait and juices product the company is presence at all time and is able to provide varieties to its customers. While the dairy products are produced in various forms such as full fat and low fat, including milk, laban, breakfast drinks and smoothies and drinking yogurt. Whilethe camel milk have so many proven healthy benefits and significant fat reduction qualities and the juices produce are categorized as long life and fresh juices. The long lifejuices and nectars are processed at 90-95oc/ 2sec and have a shelf life of nine months. Allthis is just to be presence in the market and to give its consumers choices and varieties as they target all the mass population. Promotions and sponsorship is also carried out by Al Ain Dairy as a market campaign. With the help of modern day science, camel milk is nowknown as a nutritional power house and medical marvel which has led to an increase in demand around the globe. Al Ain Dairy has continuously adjusted and develops its business strategies and at the same time maintains its overall objective to create added value to its cooperative farmers in order to stay competitive. Al Ain Dairy main focus is on developing markets including Africa and Asia, though the company would like to continue to increase its market presence in emerging countries.

The above pictures show Al Ain Dairy innovative and diverse range of products as a means to market themselves and the presence in the market thereby providing varieties to its consumers.

Conclusion

However, Al Ain Dairy has previously been less willing to take on investment risks in markets with high uncertainty and corruption as operations are complex and come at a higher cost. Despite a commonly perceived difficulty in exploiting business potential in Africa and South Africa to be precise, there are several examples of positive market developments in this region. According to the International Monetary Fund, South Africa economic as increase to 1.1 percent as the economy is expected to rise radically in 2018. Additionally, a rapid population growth and a high degree of urbanization create strong

demand for dairy products in South Africa, leaving regional dairy industries unable to keep up with demands (Milk SA and Fairfield Dairy). Leaving the market attractive to international players. Until now, the opportunity of increasing its market presence in South Africa has been somewhat neglected by Al Ain Dairy overall global strategic focus,because the primary focus has been on more well-known and established dairy markets. With this in mind expanding to the international market will be a plus to them as they are already a leading dairy company in the U.A.E. Al Ain Dairy growing interest in expanding its market presence in South Africa can be supported by the strategic management decision. However, the combination of home markets facing saturation and a search for higher profit margins in new underserved markets is likely to push Al Ain Dairy towards further establishment in developing countries including South Africa. The challenge for Al Ain Dairy is thus to determine what entry strategy to pursue with regard to further market expansion as the conditions for doing business in South Africa are considerably different than the ones prevailing in Al Ain Dairy home market. Figure 1.1

Figure 1.1 shows South Africa economic status as per international standard. From the graph though south Africa economy may seem to be facing a decline one can possible saythat there is prospect of a successful increase by 2018 as 2017 saw an increase by 1.1 percent, the possibilities of an increase can by seen between 2009 to 2012.

Figure 1.2South Africa Population 1960-2017 | Data | Chart | Calendar | Forecast

The total population in South Africa was estimated at 55.9 million people in 2016,according to the latest census figures. Looking back, in the year of 1960, SouthAfrica had a population of 17.4 million people

The above figure shows an increase in south Africa population from 1960-2016 which means an increase in population provide Al Ain Dairy with an opportunity to gain a comfortable market share in the region despite the already saturatedmarket.

3. Application of theory to practice: The following concepts/theories/models should be covered

(1) Marketing process and strategies.

The development of a successful marketing strategy is an important step for Al Ain Dairyas it enables the company to move beyond word-of-mouth referrals and use marketing tactics to drive new customers to the organization's offerings in the South Africa market. Marketing campaigns can be expensive, requiring Al Ain Dairy to spend their budgets wisely. One tool that will be used by Al Ain Dairy in South Africa in setting a better marketing strategy. SWOT analysis which is strength, weakness, opportunity and threats analysis. The purpose of a marketing strategy is thus to support the process of a successful strategy on how to enter the market, the manner in which Al Ain Dairy venturefrom domestic to new geographical markets highly affects the success rate of its overall business mission. Choosing the right marketing strategy and techniques is therefore an imperative decision that requires a high level of resources and planning. Using the SWOTanalysis is vital as attention has been given for a market assessment that fully identifies the potential and thereby indicates the initial strategy Al Ain Dairy should use. Thus a market assessment of South Africa presents the scope and conditions of the market and industry, in which Al Ain Dairy would operate. Also a marketing strategy will identify AlAin potential customers and how they can attract more customers in the South Africa market.

SWOT ANALYSIS It involves the collection and portrayal of information about internal and external factors which have or may have an impact on business. The swot analysis is also a framework that allows managers to synthesize insights obtained from an internal; analysis of the company’s strength and weaknesses with those from an analysis of

external opportunities and threats as would be explain. The diagram below shows how swot analysis is been divided between internal and external factors.

Strengths

Being the first company to introduce camel milk, camel milk ice cream and camel milk

powder gives Al Ain Dairy an upper hand in the production of camel milk in South Africa

market. With the introduction of the new camel milking machine Al Ain Dairy will

increase its production rate to 3 to 5 per cent, which will see them milking 18 to 20

camels at a time. This is highly important for them as they are able to deliver their

product to their customers on time. It is worthy of note that most of Al Ain strength

comes from its product. The amounts of time al Ain spend on research in delivering the

best product to its customers its paying off, Al ain dairy is the first company in the UAE

to use natural sweetener called Stevia which effectively means they are reducing sugar

content in their juices by 30 per cent. This is very healthy as attention is been paid to

customers who want to make healthy choices. Al Ain Dairy currently has an approximate

of 14,000 Holstein cows which are the best milking cows in the world of milk

production. The company is continually investing in new technologies, systems and

processes that enhance safety, increase production volumes as well as enhance quality

control. The company has made a significant investment which saw the introduction of

state of the art facilities and massive upgrade in camel milking technology. Embarking on

a huge expansion which will involve further upgrading of technologies for production,

packaging and processing. It will also facilitate the vastly increased production levels

they anticipate for the future. With several award winning product al ain dairy is enjoying

a comfortable market share and high demand of its product all over the world especially

in the UAE. The chart below shows al ain dairy high penetration in the UAE market and

how their goods are been distributed and also the high demand of their goods as

compared to other companies in the dairy industry.

.

WeaknessesEntering the new market can be a great challenge to Al Ain Dairy since apart from their operations in the Middle East the company has no previous experience in such a market. The location of the parent company and its new market can also be a weakness since the two countries, UAE and South Africa are far away from each other, they can result to logistical problems. Entering South Africa wouldn’t be that easy for al ain dairy as they are already companies there who have already establish them self and are vest with the market. Companies like DANONE, Clover etc Breaking this chain, al ain dairy will haveto come up with its best strategy ever, more so the south Africa market is been control by the forces of demand and supply different from the UAE market which is control by the government. This means Al Ain dairy will have to concentrate more on its promotional strategy to beat its competitors. Differences in market structure also a hindering factor for al Ain Dairy. The dairy industry in South Africa differs from that of Al Ain home market because milk production is more traditional that is hand production. Another difficulty will be the introduction of camel milk. Since camel milk is not yet known in the region the introduction of this product will welcome a slow feedback as soar milk is best consume than camel milk. Breaking the market Al Ain will have to sell its product at lower rate in other to gain market share this will be a big blow for Al Ain as they are a big brand reducing their price will mean reducing their profit margin.

Opportunities

South Africa is a developing market that presents Al Ain Dairy with a big market Potential. There is not a reputable competitor of camel milk product within this market and since Al Ain Dairy is already a global company, many consumers will go for its products. With Al Ain dairy vast product diversification the market offers him a big opportunity as shown in figure 1.2 that South Africa is experiencing ] and increase in population which gives him an added opportunity to be presence everywhere in the market. The Government of South Africa has carried out structural reforms with the aim of attracting foreign direct investments making it easier for companies to venture into the new market without many problems. In addition, the increase consumption rate for dairy food in south Africa provide Al Ain Dairy an opportunity to expand and gain a comfortable market share. The fact that prices are formed as a result of the market demand and supply, this means the greater its market share and profit margin the greater its chances to control the market. The market provides a broad distribution channel for producers to able to choose which marketing channel to sell their product as varieties of choices occur between processor, retailers or distributors. With the ongoing demand of milk in South Africa. The market looks a better market for Al Ain Dairy to introduce its camel milk product and maximize profit. Consumers in the South Africa t are moved by quality, this means the company that can provide good quality product is able to dominatethe market. It’s of great advantage for Al Ain as they are more into delivering quality goods to their customer than just doing business. This is seen with the introduction of stevia in their juices which reduces 30 per cent of sugar in Al Ain juices. it is worthy of note that dairy product play a vital part in the early development stage of children, and the consumption of dairy product is beneficial to the health of the aging people.

According to the 2017 A.T. Kearney Foreign Investment (FDI) Confidence Index southern Africa represents the only Africa country in the countdown making it a safe country for investment. Despite its recent credit ratings downgrades, and political risks, South Africa has climbed back into the 2017 A.T. Kearney Foreign Direct Investment (FDI) Confidence Index. Figure 1.3 explains this.

Also, the newly released World Economic Forum Global Competitive Index ranks South

Africa as the 47th most completive economy of the 138 studied. The improvement in the

rankings, the best in five years, comes as the country has improved the competitiveness

of our markets and relationships between labor and business, made modest, but

important, progress in the quality of education, infrastructure, which is up five places

from 2015. Figure 1.4 explains this.

.

Figure 1.3 and figure 1.4 both explain South Africa improvement in terms of its economy,investment and infrastructure facilities. All this is provide an excellent opportunity for Al Ain Dairy as there are chances for growth.

Threats

Due to the unstable political crisis in south Africa , Al Ain Dairy profit margin may not

be constant as the currency may lost its value due to inflation, causing Al Ain Dairy to

suffer lose. With already establish dairy companies like Milk SA, Fairfield dairy and

DANONE which are the clear leaders in dairy industry in South Africa, the market seems

difficult to break. With the consumption of sour milk rather than camel milk products,

been the already existing choice for consumption. it will required al ain dairy more in

terms of promotion and education to the public on the benefit of camel milk. DANONE

stand as a major treat to al ain as he is the only company to have a double digit value

share at 41 per cent and benefits from its extensive range and strong brands and also the

benefits from established consumer trust, strong marketing support and wide distribution

reach. Internationally, South Africa is seen to consume more milk from Europe 31%, and

New Zealand 30%, than of home produce milk this is because milk coming from this part

of the world is regard to be less expensive. Therefore in other for al ain dairy to be able to

break the market he will need to sell its product at a lesser price which will be detrimental

to him in terms of its cost. Between 2001/2010, the South Africa dairy industry enjoyed a

sharp increased in price, but from 2011 till now the industry has been suffering from a

declined in price this is mainly due to the under performance of the industry as producer

were withdrawing from the industry which was stricken by economic crisis. The unstable

nature of the South Africa economic act as a threat, and the constant rise of xenophobic

attack may also cause a big threat and distraction to Al Ain Dairy as the company is not

family to such practices.

(2) A critical evaluation of marketing mix of the chosen organization

Marketing is offering the right product in the right place, at the right price, at the right time.’ The above gives us a clear understanding of the concept of marketing mix which is known as the 4 P's of marketing: Price, Product, Promotion, and Place The four elements are necessary to be studied based on researches to come up with a clear strategy to enter the target market and ensure that money is spent in the right place with a guaranteed revenue. The first step in introducing a new product to a market or an old product to a new market is to think as customers expected to think

PRODUCT

Product is an article or substance that is manufacture or refined for sale.

Al Ain Dairy is the largest and leading dairy company offering dairy product in UAE and the Middle East. Al Ain Dairy has provided various dairy products to meet the expectation of all classes by proving wide range of product including camel milk and

juices. The product are produce in various forms such as full fat and low fat, including milk, laban, breakfast drinks and smoothies and drinking yogurts. Camel milk has so much been successful that it has been Al Ain Dairy’s number one product attach with its healthy benefits. Al Ain Dairy also produces juices which are categorized as long life and fresh juices, the long life juice and nectars are processed at 90-950oc/2sec and are aseptically packed into prestenilised tetra packs which have a shelf life of nine months. Al Ain products are considered to be the best dairy products in the market. It’s a combination of healthy, tasty, and structured products. One of the unique features of Al Ain Dairy’s product is the attractive packaging. It makes it to stand out when compared toother product in the market. Another most interesting product in the Al Ain Dairy productline is the Camel milk ice cream and camel milk powder. The company is the first dairy company to produce camel milk ice cream. The company is always on the moving into bringing new and amazing product to its customers. With the introduction of the camel milk ice cream and camel milk powder , Al Ain dairy its able to gain a comfortable position in the dairy industry as focus will be in promoting its new product and gaining market share. With global exposure the product have already received SIAL Paris, SIAL Middle East and Gulf foods award. This helps them to meets the demand of their ever increasing customers and gain trust in the minds of their customer. The best and most interesting part of the company is that it spends most of its money on research and development of new products. Thus, it makes Al Ain Dairy to be prepared and able to meet up to customers’ needs and be able to meet up to competition in the long run. Al AinDairy Product display.

PRICE

It is the amount of money expected, required, or given in payment for something.

Price it is the only element in the marketing mix that produces revenue and should always

be study carefully.

Al Ain Dairy though considers being a premium and leading dairy company in the UAE.

The company gained its reputation from it continues innovation and offering of moderate

prices in accordance to the satisfaction of its customers. With this in mind, entering the

South Africa market will be of much importance to him as its pricing will be more on

customer satisfaction rather than customer extortion. Since most of its consumers will be

local consumers and needs to support them. They have always followed a stable pricing

marketing mix strategy compared to its competitors this is due to the demand of its

product. Al Ain Dairy also enjoys a high demand of its product giving him an upper hand

in its price setting. This can be consider as a weakness for them as they are entering an

unstable south Africa market which is been control by market supply and demand, as the

economic may varies at certain times due to political instability or economic down turn.

This can also be consider a weakness for the company as setting a stable price in a new

market, may cause its targeted customers to look elsewhere. But with this in mind Al Ain

Dairy have come up with discount coupons, discount on bulk buying and has also

produces product of various sizes and quantities to support consumers taste and wants.

Although this may cause a slowdown of the company sales prices, but at the same time

helps create awareness and maintains profit margins. Therefore the introduction of this

strategy helps to generate more sales and create customer relationships.

PLACE.

Place is a very important factor in marketing mix, it’s about the distribution channels that

is required to make the product available and accessed easily by the end user. Distribution

is concerning to make the product available in the right place at the right time in the right

quantity to reach existing and potential customers, the distribution is done by distribution

channels that is about moving the product from production to consumption

Al Ain Dairy uses intensive distribution channel. The company always makes sure that its

products are available to everyone and in every supermarket or hypermarket. Al Ain

Dairy act like a supplier to retail stores and other distribution company. They have a great

network of distributors. As a result, the products are available in most of the retail stores

and supermarket. In order for Al Ain Dairy to be able to penetrate the South Africa

market, they will follow the strategy of joint ventures. A joint venture is a strategic

alliance where two or more parties, usually businesses, from a partnership to share

markets, assets, and profits. Going into a joint venture with the big players of the South

Africa dairy industry will be of greater advantage for Al Ain Dairy as he will be going in

to share the customer’s base of its partner and create a name for himself in the

international market. .

PROMOTION

Promotion is the communication technique of the entire marketing function aiming to raise customer’s awareness of a product or brand, provide necessary information about the product verbally or visually. it is a key in generating sales and creating brand loyalty, promotion is successful when it reaches right audiences in the right time by any of means.Promotion has many tools can be in a physical environment by arranging events like trade shows, festivals and concerts, this type of promotion involve direct interaction with customers that help achieving immediate purchases.

Al Ain Dairy has adopted a subtle yet effective promotional marketing strategy. In other for Al Ain Dairy to compete in the South Africa market it is worthwhile for him to refrainit marketing campaign. As he will be facing a stiff market with company like Milk SA etc. Al Ain Dairy has set up a smart marketing strategy wherein it will be working on better communication strategies. It is very important to note that promotions and advertisement plays a very important role in the dairy industry in order to connect with customers. Al Ain dairy advertisements are based on products and targeted audience. Al Ain Dairy has products for every group I.e. .Kids, adult and parents. But it has mainly focus on parents as they have the decision making power to spend and making power on behave of children. The al ain dairy camel milk ice cream and camel milk powder have become popular due to exposure and global award winning programs. More so with lot of

TV commercials, the UAE home dairy company has become famous due to its production of camel milk. It is worthy of note that due to this product al ain dairy has received several awards making it brand name famous. Since the market is ever demanding and competitive al ain dairy has planned to sponsor more shows and event to promote its brand. As a strategy to stay different and gain market share with its product, the company has blends both ATL and BTL to give it customers both comfort and a good experience.

(3) The role of marketing models, tools and techniques in developing new products and

effective marketing plans. The models discussed should include at least one model among

(Porter’s Model, SWOT Analysis, and PESTLE) and at least one Model among (BCG

Matrix, Ansoff Matrix and Product Life Cycle Model). [30 Marks

Al Ain Dairy has gone through a dramatic transformation since its inception, perhaps

more so in the last 7 years as the strength of the brand got reinforced by popularity and

loyalty from consumers and sales growth. Al Ain Dairy today has a significant value

proposition and unshakeable brand value. Al Ain Dairy is not only embarking on its most

radical transformation yet with the further expansion of its plant, farm, and additional

livestock and boosting of production outputs by more than double, they are poised to

enter completely a new markets that will propel the brand even further. In other for us to

go further, we will need to further understand the market so that we can be prepared of

what lies ahead. With the successful deployment of porter five forces model, the

industrial environment of South Africa and the marketing success of the company can be

analyzed. The objective of porters five forces model is to beat the competition of market

by overcoming the challenges offered by rival companies. The five forces model was

developed by Michael E porter in 1979. According to this model the five forces that can

affect the profits of a company and can help to determine the prevailing competition in

the market are; new competition threat, threat due to substitute service or products,

bargaining power of suppliers, bargaining power of buyers, threat of established rivals

From the above mentioned factors three are part of horizontal competition that are marketing threats of rivals, new entrants and of substitute products. However, bargain power of customers and suppliers are vertical competition factors. These forces determinethe South Africa dairy industry structure and the level of competition in that industry. Thestronger competitive forces in the industry are the less profitable it is. An industry with low barriers to enter, having few buyers and suppliers but many substitute products and competitors will be seen as very competitive and thus, not so attractive due to its low profitability.

THREAT OFNEWENTRANTS

The threat of new entrants refers to the threat pose by new competitors in an industry.

Due to the increases in demand and population around the world, the dairy industry has

becomes one of the most successful businesses due to the wide range of technologies and

machine to milk cow and camel and increase in customers’ needs. Although the

possibility of new entrants to the industry is high and impose a risk of reducing the

market share, Al Ain Dairy strength and experience in the industry and its introduction of

the camel milk product and range of other product shall protect it from that risk as it

always renovate to attract more customers by focusing on its strategy and vision to

maintain value for money with quality products therefore can preserve a favorable

position and take fair advantage of it

BARGAIN POWER OF SUPPLIER

The bargaining power of suppliers is one of the five factors that control the amount of

competition in a particular industry. Due to Al Ain Dairy’s brand power of its

camel milk product gives him an opportunity to control the production of camel

milk product in the region. Also another supplier power which Al Ain Dairy may

like control is its ability to produce diverse product like dairy product, camelait

product and juice product. These factors enable Al Ain Dairy to gain a successful

percent stage of the industry market share as he is able to touch various categories

of buyers. Also due already established players in the industry the probability for

suppliers to lost control may also be high as they will want to sell their product at

a lower price to attract buyers. As shown the above the population of South Africa

will definitely gives suppliers an advantage because from our statistic it shows

that South Africa is experiencing an increase in population which means an

increase in demand. The company is making significant investment which will see

the introduction of state of the art facilities and massive upgrade in camel milking

technology. With the technology partner Full wood Limited, the company is able

to integrate state of the art technology customized to the physiology of the cows

and camel. With this discovery Al Ain Dairy will have an upper hand over its

buyers as he will able to deliver its product in accordance with south Africa new

R260 international standard which have seen many companies barking out

giving him the soul suppliers control in the market. In addition to that, the

company is adding a processing plant for ice cream production and has already

upgraded its technology by installing a remote controlled cold chain management

system. With all this latest development and introduction of new camel products

which is scarce in the market and has no substitute, AL Ain dairy holds a stronger

suppliers power in the market due to its unique products and technology.

Figure 1.5 shows an increase in the producer price indices of agricultural products from

March 2016 to March 2017

The above figure show an increase in price by supplier due to high demand of milk in South Africa as of March 2016 to March 2017. From the above chart one can say an increase in camel product in South Africa will give Al Ain Dairy Suppliers power in South Africa.

BARGAIN POWER OF CONSUMERS

As with the bargaining power that is alarmed by the consumers, Al Ain Dairy can deal

with it easily. The wide range of dairy and juice products produced by the company, Al

Ain Dairy is able to maintain its revenue even in time of recession. This is due to the

demand of dairy product and the necessity it brings to life especially for the young and

elderly in South Africa as shown previously. Al Ain Dairy always try to reach its

customers through a variety of different touching points and with key messages that are

genuinely conceived and with the mission to deliver a broad range of products that meet

the changing tastes of its community at an affordable price. The company has certainly

been rewarded with loyalty from the markets and consumers alike, Consumers buy into

the story. Al Ain Dairy tries to add value for its customers by striving to make

improvements to quality and to deliver products that really inspire. Making the company

buyers favorite

THREAT OF SUBSTITUTE PRODUCTS

In every potential operating environment, there is always opportunity for substitute and

that is not a favorable idea as they are deemed competitors. This means that despite the

fact that a market like South Africa being attractive, other substitute product can easily

saturate it if care is not taken. In other to deal with the presence of substitutes in the

market, Al Ain Dairy offered quality in allits products to ensure the sustainability of the

product inthe market since consumers in the South Africa market go for quality. In this

regard the company has adopted variety of collaboration strategies with their customers

in order to develop better understanding of consumer demands and their response. The

factors allow Al Ain Dairy to know more about its customers and their satisfactory rate

about al ain dairy products, and their reaction between al ain products and that of other

brand. The quality of Al Ain Dairy products is always maintained and it ensures costumer

trustworthiness and value for their money. With the company high penetration and perfect

distribution rate, Al Ain Dairy makes it difficult for consumer to choose other product to

theirs. They have a high penetration in the market and have perfected distribution which

has also been key to their success. Following table will help you understand the dynamics

of the UAE market

Threat of established rivals

Though the South Africa dairy market may look saturated due to big spending and the

existent of big names like, DANONE, Nestle, clover and milk SA. Al Ain Dairy is firmly

committed to its expansion plan and entry to the South Africa market, not to compete

with other established companies but to bring new products that truly inspired. The

company have recognized the potential for entering the South Africa dairy market for a

long time and wanted to study the changing demand of its consumer and perfected its

operation and supply change to be able to out beat rivalry. Everything the company has

been doing until now has been in preparation and positioning to be ready and is now

readyto face rivalry and out beat them with its product and brand name. There are key

product lines that are in demand and plenty of market shares for a recognized brand like

Al Ain Dairy. Though the customer loyalty rate is low in the South Africa market and the

growth rate is slow due to the low income rate of its citizen al ain dairy has produce

product for every group and income earners to ease them and make them to be able to

afford its product although the competitors are of equal size yet Al Ain Dairy is certain

that with the introduction of its product in the south Africa market, he can gain a

comfortable market share due to is vast product to every group and income earners.

A view of Al Ain Dairy product range from fresh milk to yogurts and juice to camel milk.

With porters five forces model Al Ain Dairy can successful eradicate its rival companies and

beat the competition in South Africa.

In line with the marketing model, tools and techniques in developing its product in the south

Africa dairy market Al Ain Dairy will use the Product Life Cycle theory to examine its

product profitability and life span in the face of competition in the south Africa market.

Product life cycle theory divides the marketing of a product into four stages: introduction,

growth, maturity and decline. The goal of the product life cycle theory is to reduce the

time to market, improve product quality, reduce cost, identify potential sales

opportunities and revenue contributions and reduce environmental impacts at end of life

of the product. In other to create a successful new product and be able to dominate and

out beat competitors Al Ain Dairy must understand its customer needs, the market and

competitors. In using the product life cycle theory AL Ain Dairy will be able to overcome

the increased complexity and challenges of integrating its products in the South Africa

market.

.

The product life cycle explain the product life of a product from introduction to decline. By using the product life cycle Al Ain Dairy will have to ensure that its product issold within the defined period and it’s at the heart of consumers.

1: MARKET INTRODUCTION STAGE

The market wants milk of appropriate quality that includes taste, appearance, hygiene andsolid. The price this market offer is based solely on its quality. with this in mind al ain dairy has invested more in product quality in other to out blow its consumers. At this stage Al Ain Dairy is concentrating more in the introduction of its brand in South Africa as camel milk product are not yet know. The growth of Al Ain Dairy product and market share in home country have let to the company expansion to the South Africa market. With increased in demand for dairy product in South Africa and the high volume predicted in the near future and also the country new international law regulation for dairy product. al ain decision to invest in the south Africa ,market is one that have seen the company go through great infrastructural and technological reforms to meet the demand of the market and the customers. The expansion or entering into South Africa will see the company operation been split into three key areas so as to be able to create awareness and be able to compete in all areas of the industry. Juice, dairy and camel milk

products. The expansion will see al ain dairy triple its infrastructure output and technology upgrades and new state of the art processing and packaging machinery as a means to increase efficiency and output so as to improve the quality of its product at the introduction phase in the South Africa market. With other company already in existent in the industry al ain dairy will boost its production by adding further 6000 to 8000 livestock; this is to minimize risk by spreading production operation across the region and offering the company greater flexibility in the new market in case of high demand of its product. At this stage the company is also poised to introduce and expand its production of the camel milk which is actually new in the market this is to diversify production and to give the company a comfortable market share in the dairy market. Product innovation and sponsorship programs are ways in which al an dairy is advertisingit’s self in the new market. After gaining a successful market share in the UAE Al Ain Dairy is poised to make its self known in South Africa. The company has provided several opportunities for youth to work and is offering scholarship for the underprivilegedall this is to create awareness and capture the minds of the low income earners, since the vast majority of the South Africa populations are low income earners. in line with this al ain dairy also support farmers with dairy extension. Linking up with them therefore provide access to a comprehensive support service.

2.MARKET GROWTH STAGE

At this stage the company intends to spend less but gain more due to lots of promotion and awareness created at the introductory phase of the product. Al Ain Dairy has seen its product grow and become consumer’s favorite in the previous years. Growth has been demonstrated year after year by approximately 14 per cent with profits around 20 per cent. All this have been in line with Al Ain objectives and forecast to gain a comfortable position in the dairy industry around the world especially in South Africa. This also has been seen with the launching of new products in the market adding to the high demand oftheir product all over the world. With the introduction of this new product Al Ain Dairy has gain massive recognition and award of its product, this award helps increase the brand name of the company making it irresistible to consumers. As the company continueto enjoy success due to promotion, new technology use in improving the quality of their product and customer satisfaction Al Ain Dairy tend to gain more market share and is able to compete and out beat the big players in the industry. At this stage their focus is been shifted towards maintaining quality and introducing new and irresistible product to its consumer as consumers wants are always unending.

3.MARKET MATURITY STAGE

At this stage the market become saturation and sales become slow due to already achieve target. Consumer desire for new product in the market prompts them to look elsewhere. After enjoying success with the launched of its product, Al Ain Dairy keeps on implementing new technologies for packaging and laboratories for bacteria testing. This is to keep the company and its product still competitive in the company. As new players come in the market is provided with varieties of product to choose from. Due to the

saturation of the company Al Ain Dairy is force to gain into more research to improve it is product and offer and something new in the market.

4.MARKET DECLINE STAGE

At this stage the product is facing a decline due the many choices available in the market. Decline in currency value also cause product decline. The presence a well established local and private sector firms which offer better opportunity to the communitymake competition intense in the market. Also due the foreign import substitution polices which have led to consumption diversification have open the market for foreign investor making al ain dairy product to face a decline due to the many substitute available in the market. At the stage the sales for al ain dairy product has decreased due imitation and the coming in of a new players. The decline of a al ain dairy product is mainly cause by the country open market economic policy in which resources allocation, price and other marketing decisions are primarily determined by the free market giving room for imitation and for new players to come in here al ain dairy is therefore force to embark on introducing new product like the cardamom drink, camel milk ice cream and host of others to enable them compete with new players in the industry. The diagram below shows the decline stage of the product life cycle.

1. Conclusions and Recommendations: Provide recommendations for adequatemarketing strategy for the chosen organization to expand the business in theglobal market. [15 Marks]

Based on the above thesis and the background of this work, the answers to the research questions are provided in this final part. There are a number of motives and strategies than can be use to enter the South Africa dairy markets that are of major importance. In order to clarify the connection between the different motives in the findings and conclusions, The most important motive for al ain dairy to invest in the south African dairy market are rapid population and economic growth in the south Africa market which have leads to an increased in demand for dairy goods . Naturally, legislations that

work in favor of the foreign company’s operations in the country are conditions that lay a foundation for economic growth and should therefore also be perceived as important reason to consider while thinking of investing in the South Africa market.

Further, the size of the country’s market is another important factor, since a large country with many inhabitants implies an enormous market potential for future economic growth.

An additional factor is saturated existing markets. This is a motive for the reason that the company’s existing markets are fully penetrated within some areas of products and services. This means the market is easy and penetrable and is as well productive and profitable.

Communication improvements in south Africa is of important as al ain dairy can handle its operation without hindrances and get to its target market with ease.

Also one important factor to consider is infrastructure before deciding upon a suitable strategy. This naturally includes investigating if there are functioning distributions Systems. Access to quality material such as raw material, qualified labor andSufficient technology is also important factors of influence to al ain dairy decision to invest in the South Africa market. .

Far from the positive factors influencing and investment in South Africa, there are some

hindering factors if looked strictly investment in this market would be withdrawn.

Corruption is another problem in South Africa and Africa in general that has to be taken into account. The country is ranks poorly in the surveys conducted by Transparencyinternational (a global civil society organization leading the fight against corruption).Consequently setting up the company’s operations may be delayed and instancesof bribing experienced. Economic problems that are less significant are for example a fluctuating inflation rate and an unpredictable rate of exchange

The legal framework is also a significant problem since there are many at times noclear rules that apply to all companies. As an example, licenses and permissions are required to be able to function in the market and these can be difficult and timeconsuming to obtain because of the heavy bureaucracy. The non-Eastern business practices can also take in the form of different accounting principles and the fact that businesses are based on personal contact.

More so South Africa has been suffering from frequent xenophobic attack which firstly create and unsafe environment for busy and secondly causes inflation as businesses are not operating during such times.

RECOMMEDATION

However base from the above studies, one can actually say that, the South Africa market though not smooth as other foreign market maybe is full of opportunities and is worth the

risk. More so the capacity, name and strength of Al Ain Dairy in addition to the analysis and factors influence the entry, the marketing strategy should be clear considering all these elements, effective and flexible to deal with challenges

In other for Al Ain Dairy gain a successful market share he will have to use the strategy of a joint venture. Since it decrease risk. Acquisitions can be used when the acquired company has local knowledge and when the government allows it. In the future, new establishment and straightforward acquisitions can also be used when the business climate has improved. No matter what strategy is used, Al Ain Dairy needs to consider local customs and values, which includes non-westernized and Eastern business practices and heavy bureaucracy.

More so in order for al Ain dairy to simplify contacts with the government, a local partneris preferable. This should in addition increase the competitiveness since the company willgain local know-how and might increase its credibility among the customers in the country. This will provide the al Ain dairy with information concerning local business Practices.

As the company targets different type of customers with respect to their cultures, ages, genders, interests and their wants and needs, the company has to relate the variety to the wide range of products that meet the needs of each category. Identify target customers for each range of products will help pinpoint the advertisement and better “speak the language” of prospective customers to get a higher return on investment

Al Ain Dairy will need to implement low prices, since camel milk consumption is new in the region. Also due the unstable economy.

Al Ain Dairy should include online sales in consideration of a unique selling point at the store and un availability of distributers. They should also provide vans for supply of product especially in the rural as means of creating awareness and increasing sales so as to avoid losing customers who are not driving and don’t have cars

The company needs to know that the legal framework does not treat all firms equally and therefore some competitors can have unjust advantages. All of this favors a joint venture strategy or a safe acquisition since these two strategies provide the company with a local partner and local knowledge.

Also the South Africa workforce is highly skilled but do not have cross-competences. Forthis reason, it might be necessary to hire western personnel to the company’s Operations in transition markets