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Bateel Marketing Analysis

I. Current Marketing Situation

Company Background

Now a world-class brand in the high quality confectionery industry, Bateel started out with a simple concept, supplying a unique selection of high quality products to a well-defined market section within an upscale and beautiful retail environment. The idea was also unique, supplying a selection of products not available from some other source. Bateel's strong charm to consumers in various target market segments is based on our strategy and capacity to constantly develop and produce the highest quality products and maintain an impressive merchandising and syndication system.

Bateel's success is anchored on a solid creation and marketing firm, which is vertically integrated and includes farming, control, manufacturing, and high grade retailing functions. Bateel now specializes in the production and distribution of the complete selection of dates, and time frame and non-date premium confectioneries. The business is headquartered in Riyadh, Saudi Arabia with a local office in Dubai, UAE and employs over 3 hundred people. [1]

Company Products

There are mainly four 4 products that are made by the company, and they're:

1. Dates

Bateel offers more than 20 types of high quality times including famed Naboot Seif, Sokari, Kholas, Sekki and Khidri. Many of these date varieties can be purchased in fresh, Rhutab and the original Maknooz recipe.

2. Chocolates

That includes, Day Chocolates, Pralines & Truffles, Bateel Wrapped Chocolates, Sugars Free, Shape Chocolates.

3. Pastries

That is pastries and biscuits, Each is manufactured with high quality Bateel dates, in addition to other ingredients, pastries are made from fresh natural ingredients, nor contain preservatives or man-made dough conditioners. All pastry items are cooked by Bateel under rigid, quality managed conditions and are placed refrigerated until they can be purchased.

4. Other premium products

Bateel schedules and chocolates are complemented by an exclusive selection of night out and non-date specialties, such as time bars, sparkling date juice drink, Turkish joy and other delicacies. These delicacies are produced from the finest natural ingredients, free of preservatives, with recipes designed to meet the most challenging connoisseurs.

Other products are:

Date Jam, Gleaming Date Drink, Super fruit Cake, Date Club, Turkish Pleasure, Marrons Glaces, Night out Dhibs, Date Dhibs Syrup, Honey, Apricot, Fig, Particular date Honey Fig Spin, Date Cantucci, Time Panforte, Particular date and Walnut Cake, Fig and Walnut Nougat, Nougat Bar, Clementine au Chocolates, Bonbons, Particular date Calisson, Pate de Super fruit, Premium Italian Coffees Condiments, ESSENTIAL OLIVE OIL, Night out Balsamic Vinegar and Nuts.

5. Pre-packed specialties

Those will be the Bateel selective product stuffed as presents.

Company Branches

The company has many branches in different countries the following:

Africa with one branch:

  • Sudan with one branch.

Asia with eight branches:

  • India with two branches.
  • Indonesia with one branch.
  • Malaysia with two branches
  • Pakistan with three branches.

Europe with total of two branches:

  • Azerbaijan with one branch
  • United Kingdom with one branch.

Middle East with twenty-two branches as follows:

  • UAE with eight branches in Dubai and 3 branches in Abu Dhabi.
  • Jordan with one branch
  • Qatar with one branch
  • Oman with one branch
  • Bahrain with two branches
  • Kuwait with two branches
  • Kingdom of Saudi Arabia with 4 branches.

Product lines allocation as per the BCG matrix:

Product lines BCG allocation analysis:

Dates:

Allocating Dates between Celebrity and Cash cow is because of that Bateel established fact for dates, as they are as well high in demand comparing to other product at Bateel and due to the business is typically specialised in producing times with different flavours and fillings, in addition, the product is not new in market and individuals are already alert to it and demand it, therefore it has a higher market talk about and progress.

Chocolates:

In Bateel chocolates have low market share besides they have well known competition in this product brand who are much specific in chocolate products therefore they have a tendency to maintain low demand at Bateel. Alternatively chocolate is known as to be always a growing market as reported by [3]AC Nielson's Retail Audit estimate the UAE chocolates market at AED 546 million with a rise of 27% by value and 14% by quantity - MENAFN Press-08/10/2008. Furthermore to some companies are being keen to produce chocolate out of camel dairy with high quality after a recently available research the reveals that the chocolate market in the UAE is strong with 98% of respondents proclaiming to consume chocolates at least once a week - [4]29 Oct 2008.

Pastries:

Dates Pastries at Bateel aren't much known and people are not much aware of it unlike other popular non schedules pastries manufacturers, hence, they are to be in low demand at Beteel and low market show due to that they are not given enough attention by Bateel in terms of marketing and advertisement. Alternatively On average, daily use of schedules per capita was 114. 3 g, equivalent to 10 date fruits. However, it was mentioned that the younger population does not consume dates around the older society does. Nevertheless, studies showed the significance of dates in the UAE nation's diet taking into consideration the relatively high average utilization of schedules per capita. Copyright 2006 World of Chemical Industry[5].

And due compared to that reason Times in Bateel is placed as first product chosen by consumers furthermore that can be used as strong impulse to enhance the production of Dates pastries.

Other gourmet products:

Basically recently there are numerous specialties stores customized in gourmet products such as [6]"Gourmet Stop" that is known as to be the most significant store in UAE in producing unique endless gourmet products unlike other small area of expertise stores that contain limited Dates premium products like Bateel which on the other hand is definitely an benefit as its considered to be healthier in substances.

Product collection chosen:

Our product line chosen is Pastries, which includes Date "biscuits" and Date "cookies".

Why pastries?

The reason behind selecting the product line is the fact schedules are healthy in the first place specifically for kids, low in cost, high in nutrition, available the majority of the years, would be preferred for parents and people to provide it to kids instead of other kind of sweets, newly and creative baked dates pastries are always preferred particularly for banquets and wedding ceremonies mainly for men and women and old aged consumers though it was noted that younger population will not consume dates approximately the older human population does[7].

On the side, there aren't any rivals who are "specialized" in producing "Dates Pastries" unlike Bateel, as there isn't much who is creative and innovative in date's pastries.

Moreover, it requires little investment scheduled to the main raw materials "Schedules" aside from other elements is low in cost and available most of the entire year.

Target Market:

The target market are adults, men and women aged 18 and above, all public statuses, all nationalities and faith, residents and site visitors from all around the UAE those of income AED 3000-AED 6000 yearly and who are able to pay for high quality dates products, assorted and expertly and elegantly jam-packed and arranged for sale and sell to targeted customers for their special situations and situations.

II. Macro Environmental Factors and Opportunity and Concern Analysis

Macro environment comprises of a number of forces that an business cannot control. These factors have an effect on the efficiency of a business, its decision making process and its own performance. They are regarded as external forces such as current economic climate (GDP per capita, inventory levels, monetary development, inflation rate, unemployment rate etc. ), communal ethnic factors (demographic factors - religion, years, income level, and attitude of consumers and ethnic constructions), natural factors (hurricanes, flood etc. ) and competitive factor. The macro environmental factors are of grave importance to the UAE market as confectionary market gives maximum to the food exports of UAE. Since the market is known as to be among the most notable 10 largest markets on earth, environmental changes have to be studied so as to anticipate future changes in the environment as the analysis of the risks and opportunities helps the business to be at par with the changing circumstance. The primary factors affecting the organization at macro level are

Economic Factors

There are lots of scenarios which are found in an market such as wealth, depression, downturn and recovery. In an era of wealth, the GDP of your country heightens making its standard of living high pressing it on the road to success. The overall economy of the UAE is quite strong due to the fact of its petrol reserves but it includes over time added to its agriculture which contributes about 3 % to the GDP of the nation. It is becoming self sufficient in issues of food. The lovely and confectionary markets are widening at a larger rate. The inflow of large number of tourists in addition has added to the overall economy and has recognized sweet producing companies. The governmental guidelines regarding emiratisation have supported local citizens in getting jobs. The bigger education carried out by young lads has added to the economy of the country. (Market)

Social Cultural Factors

Society acts as an important factor to the success of a business. It is vital for the organizations to figure out the needs of the customers, their attitude towards the product produced by the organization. A strong cultural tendencies prevails in UAE symbolizing its traditions which does not provide flexibility to the various sectors of culture as might maintain other Western or American nations. Thus, an organization working in such a scenario needs to keep in head the ideals of its fellow individuals as any work which discriminates or humiliates their feelings may lead to an outrage in the folks. UAE has one of the major immigration rates on the globe due to incapability of its local people to utilize modern ware fares which can be completed by expatriates mainly from the subcontinents. The fast growing population does act as driving pressure for the sectors as it adds to the strength of the man power of the region.

Natural Factor

A company is posed by natural pushes depending on the locations it operates. Such a situation if experienced does indeed lead to lack of life and property and damage from such a calamity can be an inevitable experience. The two most frequent ways to respond to a big change in environment are reactive and proactive response. The marketing of the Marketing Combination helps in the reactive response. One of the 4 P's i. e. , places where the product comes by an organization also called circulation channel both physical and online could be optimized to avoid the level of loss. Most of the companies promote the go-green idea to draw in consumers as the urge to make Dubai green had been the top concern in 2008. Since then UAE has always advocated to market lasting development.

Competitive Factor

It forms the foundation of survival of an organization and street to redemption of another in market. A business that recognizes the needs of its customers more precisely and changes relating to the energetic change in the situation overpowers and outshines on the market. The research of competition is an important strategic tool which helps an organization aware of the talents and weaknesses of the other companies in its market. Since, the house confectionary market is displaying a high expansion rate, it allures various companies into the market to sell their product. Thus, it becomes very very important to the various companies in the field to judge the talents and weaknesses of others to stay at par with them. The higher the competition, the more alternatives it offers to the customers. Thus, it becomes main goal of the companies to hold their customers by giving them special offers and something extra from others in the same business. (Chapter 3 class notes)

SWOT Analysis

It has four tools to strategically plan a business enterprise. The four tools are to take a look at the advantages, weaknesses, opportunity and hazard in virtually any business to make it a success. Every SWOT analysis has an final result or objective such as in cases like this it is to help the high quality confectionery industry, Bateel become global leaders.

Strengths

  • The company focuses on the creation and circulation of complete range of dates and it has a higher market talk about and growth in dates as per the BCG matrix in UAE. It produces 20 different varieties of dates which can be exported to US increasing their strong market position.
  • The occurrence of stores in various countries, most 22 in UAE increases its distinctive expansion in the confectionary market. The own a lot of farms designed to use extensive high quality equipment to expand and furnish times. Such a vast capital and being the oldest of its kind creates a solid public image which really is a boon for the business. (UAE Confectionery)

Weaknesses

  • The chocolates, pastries and non night out products are growing fast in market i. e. , they may have a fast development rate compared to the particular date products but the products increase less that 20% of the show in the markets. The chocolates and pastries are neither much known nor are preferred.
  • The company has large number of stores in UAE but lacks to provide the same performance when compared with the entire world. On exceeding the boundaries of Arab countries plus some of the sub continents, no-one seems to realize the company. It has only 2 branches in Europe and none in American continent. The further expansion of company will limited if it does not explore the others of European countries and America.

Opportunities

  • The company can improve in the chocolates and pastries retailing by increasing their market share and by using better promotional strategies. Since, Bateel strives to provide pastries with time frame; the pastries offer better nutritional value at reduced prices than modern chocolates, yet scrumptious adding to the benefit it provides and its good image in the marketplaces. Company can take appropriate action matching to its express in BCG matrix.
  • The time products can be sold to all people in various age ranges from children to old. The particular date products are popular in children because of their sweetness but it requires to take into consideration folks above 18 yrs. The times being the most natural of all products increase its demand and hence provide opportunity to explore.

Threats

  • The small market share of the business in the delicious chocolate, pastries and non particular date products seems to threaten its position in the market. To sustain on the market, it needs to explore a way to exceed its limitations and shell of date products. The presence of better companies in the products also does not complement its expansion. Since the progress rate of pastries is greater than night out products, it poses a significant concern before the company to have serious activities.
  • Considering environmentally friendly factors, pest infestation is the foremost menace to the date industries in UAE which is rising by 2 percent regularly. Such a plague could cripple the strong hold of the industry. (Particular date Palm Research and Development Program)

References

  1. Economy (n. d. ) Retrieved on March 15, 2010 from http://looklex. com/e. o/uae. economy. htm
  2. Date Hand Research and Development program (n. d. ) Retrieved on March 15, 2010 from http://datepalm. uaeu. ac. ae/subpages/datepalmcultural. html
  3. Chapter 3 School records (n. d. ) Retrieved on March 15, 2010 from http://www. udel. edu/alex/chapt3. html
  4. UAE Confectionery (n. d. ) Retrieved on March 15, 2010 from http://gulfnews. com/mobile/business/features/uae-confectionery-is-the-icing-on-food-export-cake-1. 524603
  5. http://www. bateel. ae/about-thecompany. html
  6. http://www. bateel. ae/main. html
  7. http://www. menafn. com/qn_news_story_s. asp?StoryId=1093215036
  8. http://www. thedubailife. com/home/news/news-sports/worlds-first-camel-milk-chocolate
  9. http://www3. interscience. wiley. com/journal/112597329/abstract?CRETRY=1&SRETRY=0
  10. http://www. arabianbusiness. com/545998?tmpl=print&page=
  11. http://www3. interscience. wiley. com/journal/112597329/abstract?CRETRY=1&SRETRY=0
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