Introduction
Jouf Water Company is one of the leading mineral water brands in Qatar. The brand has achieved massive success in the local market as one of the most trusted bottled water in the country. It is in the interest of the company to explore the market beyond national borders. The regional market has a huge potential, especially in Saudi Arabia and the United Arab Emirates. When making an entry into a foreign market, Prange advises that it is important to take a number of factors into consideration (56). In this paper, the researcher seeks to analyze the appropriate strategies that this firm should use in the new market, based on marketing mix elements, to realize the same level of success as has been witnessed in the local economy.
Discussion
Positioning of the Product in the New Foreign Market
When entering a new market, one of the factors that must be considered is finding an appropriate product positioning strategy. The firm will have to decide if it is appropriate to maintain the current product positioning strategy or if it should be modified to fit in the new market. Figure 1 below shows the company’s brand and the message that defines its positioning approach:
As shown in the figure above, the product is currently positioned as natural, healthy drinking water. This positioning strategy should be maintained because most people all over the world are shifting from soft drinks to water because of health concerns. The same narrative should be maintained. The new market will still use the same product positioning message.
Product Strategy in the New Market
When entering the new market, the management of the firm will need to determine whether it will be necessary to modify the product or not based on several factors. One of these factors is the brand name that should be used when launching the product. It is highly recommended that this firm should maintain the brand name that is used in the home market. The current brand name has already gained strength in the home market. This approach will enable this company to gain regional dominance instead of being viewed as a conglomerate of small fragmented units in different countries (Keller 82). The brand elements such as logo, colors, and icon should also remain the same to emphasize the fact that it is the same company in Qatar that has expanded to the foreign market. To ensure that the product is superior to that of its competitors, the management may need to improve its quality by having an accurate balance of minerals while at the same time ensuring that the true taste of freshwater is maintained. It should have the health benefits desired by customers. It will enable it to compete favorably against market rivals such as Dasani, Oasis Water, Nestle Water, and Falcon Spring Drinking water.
The targeted regional market is not significantly different from the home market in Qatar. The cultural practices that inform the buying behavior of customers are the same across the region because of the shared religion and socio-cultural practices. As such, it is prudent for the management to maintain the characteristics and features of the product. It will help in promoting its identity regionally. A Qatari national visiting Dubai will easily identify this trusted water brand with ease because of these features of the product. However, it may be necessary to adjust the product range, especially the size of water bottles, based on the local standards in the foreign market. Such adjustments may be influenced by the local policies or the need to compete fairly with market rivals. The firm will also need to make adjustments to the additional services associated with the product in the foreign market based on the local trends. For instance, it may be necessary to deliver the products to specific customers as an after-sale service to promote loyalty. The guiding principle is to ensure that the company’s products and services are seen as superior to that of rival companies.
Pricing Strategy
According to Kim and Mauborgne, one of the biggest challenges that a firm often faces in a new market is setting an appropriate price for the product (54). The pricing goal for this company will be to have a price that is not only acceptable to the targeted customers but also able to sustain the success of the company in the local market. Having a price higher than the market average shows the customers that it is of high quality. However, it may lock out many potential customers who may opt for cheaper products. On the other hand, setting low prices may misrepresent the brand because it will be associated with poor quality. The strategy will, therefore, be to set the price high enough to demonstrate its quality, but in a way that is affordable to the majority of customers. Factors such as average market price, the price set by top brands, and the purchasing power of the targeted customers will influence the pricing strategy (Majchrzak 112). A review of the market shows that a packet of 12 Aquafina Bottled Drinking Water, each 500ml costs 8.24 AED. It is one of the cheapest brands in the market. Al-Ain Zero Bottled Water, one of the top brands in the market, charges 10.46 AED for the same quantity of water. Striking a balance between the two market extremes will be critical. The Jouf brand will go for 9.95 AED for the same quantity of water. It will be slightly higher than the market average and slightly below the most expensive product in the market.
Promotion Strategy
Promotion of the brand and product will be critical to ensure that the product penetrates the market despite the current competition posed by the local and international companies. The promotional objective when launching the brand will be to create awareness about the existence of this company in the foreign market and to convince customers that it is the healthiest of the existing water brands. The main message in the adverts within that market will be the health and quality factors. The message will emphasize the fact that this product is of high quality and healthy for its consumers. The management will need to choose appropriate elements of the promotional mix that will assure it of the desired impact. Advertising will be the primary element that will be used because it will enable the company to reach a large audience. Other supportive elements such as public relations and sales promotions will also be employed to promote the brand.
Distribution Strategy
According to Neubert and Lesniak, when entering a new market, it is necessary to define the appropriate distribution strategy that will be less costly but effective enough to ensure that products are delivered in the market at the right time and in the right quantities (25). One of the effective distribution channels that will be used is that of a wholesaler or distributor. The firm will identify leading retailers in Dubai city. It will then distribute its products to these large retailers based on the agreement and arrangements that have been made. This strategy will help this firm to partner with already established firms (the local retailers) to make its products available to the customers. The firm may also have a sales team in strategic locations such as the large beaches where a large number of people often visit and are likely to purchase bottled water as they relax on the beach. The approach is meant to improve sales of the product.
Conclusion
Jouf Water Company is a successful bottled water company in Qatar. The United Arab Emirates, especially the city of Dubai, offers an attractive opportunity for it to expand its operations beyond the national borders. When entering the new market, one of the most important recommendations is to maintain the same brand that is already popular in the home market. The management must understand that socio-cultural forces that influence buyer decisions in the home market are the same in the new market. As it prepares for future development, it is also recommended that this firm should expand its product line. The expansion of the product line will increase the sources of income for the company both in the local and international markets.
Works Cited
Keller, Marcel. BMW, Entering the Automobile Market in Brazil: Critical Analysis and Evaluation of Automobile Market in Brazil. GRIN Publishing, 2014.
Kim, Cham, and Renée Mauborgne. Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business School Publishing Corporation, 2015.
Majchrzak, Timo. A Discussion of Market Entry Strategies for Emerging Markets. GRIN Publishing, 2014.
Neubert, Michael, and Myrna Lesniak. Global Market Strategies: How to Turn Your Company into a Successful International Enterprise. Campus Verlag GmbH, 2013.
Prange, Christiane. Market Entry in China: Case Studies on Strategy, Marketing, and Branding. Springer International Publishing, 2016.
Schaffmeister, Niklas. Brand Building and Marketing in Key Emerging Markets: A Practitioner’s Guide to Successful Brand Growth in China, India, Russia, and Brazil. Springer, 2015.