Market Feasibility Analysis Of Online Marketing

With the advent of Globalization, companies around the world are seeking the help of the web to save themselves. Not only is Internet the most effective method of communication nowadays, but it also is the cheapest way of advertising. It exposes a business to a vast sea of customers that use internet all over the world. Various Online Portals like eBay, Amazon, Yahoo, etc have helped develop a platform for businesses to market and market themselves online. This helped businesses to sell their goods online faster.

The job was taken up to examine the feasibility of the web Marketing in UAE in order to provide an chance of an upcoming UAE Structured Online Website SmilingAds.

To understand why, we first have a secondary research about several other Online Portals and their working models. We also tried out to discover which will be the goods that are extensively sold online. This would help SmilingAds concentrate on their customers consequently. Further we analyzed if similar routine would be possible in UAE or not.

After having a track record research done, we completed a review with the manufacturers, marketers and retail shop keepers. We picked the companies - Electronics, Home/Kitchen ware, Sports Machines and Car Accessories. The businesses were chosen on Random Sampling basis. This survey helped us understand the market tendencies better and to see what are the anxieties of the business enterprise towards entering INTERNET MARKETING.

(from studies + recos)

The research can be further enhanced by analyzing different types of sectors and segmenting each industry predicated on how big is the business. This would give an improved understanding of how each industry behaves in UAE market and also understand who can be the potential businesses who want to use SmilingAds. Similarly, this might also help SmilingAds modify its model in a manner that would suit its aim for businesses in order to generate maximum income from this site.



In UAE, online marketing continues to be in a very nascent stage. Predominantly, businesses use the traditional way of sales, which is performed through retailers. The methods of adverts are also limited by TV, Radio, Newspapers, and Magazines. However recently there have been some online portals which may have appear. Some businesses do venture in internet marketing, in addition to other methods of advertising. SmilingAds, a family-owned set up business, also needs to part of this market for INTERNET MARKETING and Marketing.

With the development of downturn, a lot of businesses slowed down, a few of them closed down down too. At this time, businesses needed to sell their goods at the earliest opportunity. Since they were not getting sold in the shops, there was a need of advertising about the sales. Taking advantage of the high advert charges in other mass media, SmilingAds felt the necessity to create a web based website which would help people advertise at a much cheaper cost. This would be a great opportunity for SmilingAds to enter in UAE Market as a web Portal for Advertising and Sales.

This project was undertaken to carry out a market feasibility study for SmilingAds so as to understand the UAE market better and understand when there is a opportunity of growth of INTERNET MARKETING in the UAE market. The analysis was completed in Dubai only.

SmilingAds made a decision to frame its business design in order to assist the businesses within UAE using their sales to be able to maximize the traffic on the site. Some of the features provided by SmilingAds would be :

Complete assistance for the sales so that the Businesses do not need to carry out any online activities themselves

Cheaper way of advertising

Provision of advert banners on the site to catch the attention of customers' attention

Research Methodology

The entire project is carried out in 5 stages :

Statement of Problem

In UAE, businesses have been carrying out their sales in a normal way. Consumers stop by the shops and purchase the commodities they want. Internet marketing and marketing is still in a very nascent stage in this area of the world.

SmilingAds needs to explore this budding opportunity by providing the cheapest way of advertising and advertising online. The goal of this task is to study the market of UAE to comprehend what anxieties do businesses in UAE face about going into the Online Area. Also we tried to analyse the facts that can stimulate the businesses in UAE to explore their opportunities in the internet. This task would help SmilingAds to chalk out their strategies effectively so as to ensure significant returns in this new endeavor.

Research Objectives

The objectives to carry out the study are:

To understand the awareness and demand of Businesses in UAE to market and sell products online

To learn how to concentrate on businesses that are prepared to select for online sales and the way to increase the individual traffic for SmilingAds

To determine at what costs the firms are willing to sell the goods Online and for online advertising

To know what products (overstock / existing) are businesses prepared to trade online

To determine whether businesses prefer to deliver the goods or ask the customers to keep these things picked up by themselves using their warehouse

Information Areas Captured

To understand the marketplace feasibility of the Online Advertising and Marketing for the B2B Portions, the info will be captured for the next areas:

Online Trading and Advertising Websites

Awareness of the websites

Factors that drive them to choose these websites

Frequency of usage

Drivers for Online Trading

Reach of Market




How much people are currently spending

Willingness of businesses going for Online trading and advertising


Categories of Products for online Trading

Sale of Overstock / Existing Products

Quality of products


Reasons for retailing/buying

Mode of Delivery

How long people ready to wait for buying/selling

Research Challenges

The challenges that we faced while carrying out the research are :

Conducting the Survey with the local shop owners / managers

Asking shop owners who are not into Online advertising

Research Limitations

The Market Feasibility can be further studied better by enhancing this task in the following ways :

Analysing different establishments and segmenting each industry predicated on the size of the business

Understanding how each industry behaves across various segments

Understanding how each section of businesses respond across different industries

Analysing which would be the target customers of SmilingAds

Studying the sectors with their segments along with the target consumers who visit SmilingAds and purchase commodities

Calculating the Conversion Rate of the website and then modifying the business enterprise Model to be able to ensure a higher Conversion Rate


Literature Review

Ecommerce Process

The entire procedure for Ecommerce can be described the following :

Customer gets into order with his credit card information and directs it to merchant

The merchant sends an invoice and information certifying his identification and his banks

The consumer acknowledges the same and dividends back again to the business

The business generates an authorization and transmits it to their standard bank for clearance

The merchant loan company send the same information on to the acquirer

The acquirer transmits back a response to merchant loan provider after getting acknowledgement from customers bank

Customer loan company confirms to the merchant bank.

Merchant bank transmits an authorizing meaning back to Vendor.

Based upon this the merchant authorizes the business deal and ships the merchandise to the client.

Role of Ecommerce in assisting businesses

Ecommerce is one of the key innovations in age the internet. It requires buying, offering and fulfilling repayment through digital communication. A set of computers are linked by way of a network on which transactions are done. It removes the barriers of their time and distance. It allows the end user to log on to the internet anytime may be day or evening and purchase or sell anything with the click of a button. As the trades are done electronically it minimizes any human problem while producing the transactions, rises speed and stability and also the cost of sale is lower. It is more useful for listing niche products as customers for the products are usually few but in a vast software industry it will gather good number of customers. Additionally it is the cheapest method of conducting business. Ecommerce also helps in minimizing the price of sale which provides the businesses with higher profit margins.

From a customer's perspective it reduces the time taken up to shop, they are able to make smarter decisions, quality time is reduced on invoices and also showcases the various products to the buyer. It specifically reduces enough time, manpower and cost towards documentation, error detection, modification, guidance and paperwork. The other benefits are in the functional area by assisting to reduce both manpower and time.

Secondary Research

Business style of top ecommerce websites:


EBAY was created in the entire year 1995. The perspective was to create a virtual software industry for buyers and vendors to communicate for the deal of goods and services. The merchandise stated ranged from collectibles to more traditional industry like the cars. The purpose of EBAY was always to increase the average selling price as this might benefit it to earn much more money. Buyers get to view and buy free of charge whereas the vendors need to pay two business deal fees the one that is insertion payment for listing the product online and another one is the final value which is costed after the sales of the merchandise. EBAY also launched the concept of highlighting a few of the listings and charged a higher premium to the product lister. The repayment and delivery is then upto the customer and owner. EBAY however collects the exchange fees predicated on the final value. Ebay has a 11. 5% customer alteration rate.

Classification of the parts in the EBAY website:

There are 3 main areas in EBAY. They are simply BUY which is made for the customers, SELL which is perfect for the vendors and Community which is good for sharing encounters and product surveys by customers. In addition they have two additional sections called as My Ebay and Help. My Ebay section is utilized to track the customers account and the Help section is employed to provide all information on help related topics.


Amazon mostly uses online as the function for sales, whereas its competitors were predominantly advertising using offline such as physical stores. That is extremely costly as they have to pay high grade rents for central locations and also have to pay incomes. Amazon on the contrast has a central syndication center which allows them to market for less price by paying lower local rental prices. In addition they believe in taking benefit of the consumer transfer towards the internet. By also having a large central warehouse Amazon is able to store large quantities and various types of books, as compared to its competition. Its competitors have now began to move online but the competitive edge clubbed with the good reputation of Amazon has made its challenging to permeate to the online space. Amazon has a 9. 6% customer alteration rate.

Classification of the sections in the Amazon website:

Products are categorized based on departments. You will discover separate portions for advertisers, retailers, businesses and creators. All the latest products are detailed on the homepage. There's also additional areas for "Get to know us", "Earn a living with us", "Why don't we help you".

There are also two additional areas for "My Cart" and "Wish List".

Top products which are sold online:


Computer Hardware

Computer Software


Toys/Video Games

Videos DVD's

Health and Beauty

Consumer Electronics



Office Supplies

Linens/Home Dcor


Sporting Goods


Small Appliances

Tools and Garden


Competitors of SmilingAds :

Some of the other online portals in UAE:

www. araboo. com

www. gulfnews. com

www. souq. com

www. priceoutme. com

www. dubai. vc

www. dubaishoppers. com

www. soukbazaar. com

Analysis & Interpretation

Sample Size

We conducted the review at 36 retailers in Dubai. The outlets were selected at random, but the sectors that we focused on, were Gadgets, Apparels, Perfumes, Athletics Equipments, Household Commodities.

The pie chart above shows the industry-wise split up of the firms that people interviewed.

We preferred only those companies where we're able to talk right to the person in-charge of deciding when and where you can advertise and sell commodities for his or her company. The rest of the companies, we screened out because the decision makers weren't available. Many of them were the Owners/Partners, Advertising & Sales Managers, etc.

Mode of Advertisement

The pie graph below shows the break up of the settings of advert that companies that people interviewed use presently. The count is more than the real test size because of multiple responses by the respondents.

We observed that many companies do not advertise at all. They rely on the location of the shops to tap potential clients. They do believe in having their own Customer base and stick to it.

We also witnessed that not many companies prefer heading online to promote. However on probing, we emerged to learn a UAE-based Online Site had completed a Sales Pitch where they had directed salespersons to various outlets in the market segments for putting up advertises for his or her firm. As of this time did the firms went in advance and set up their ads on the web Portal.

The respondents weren't very comfortable in disclosing the investments in each method of advertisement, whichever they used.

But predicated on a few positive reactions that we acquired, the following are a few of the investment funds :

Newspapers : AED 3000 - 5000 monthly. Some were only 1 time advertisements, while a few were yearly basis advertises

Television : This is a very uncommon mode of advertising. It cost around AED 30000 per year

Radio : As per most of the respondents, this was typically the most popular and effective way of advertising in Dubai. Around it costs AED 20000 per year

Magazines : This is also quite popular, specifically for the consumer electronics industry, with an investment of around AED 3000 - 5000 per calendar year.

Online Portals : Some companies use the Free Advertisement Listings that are available. But some invest around AED 100 which is normally a one-time fee.

Own Websites : A whole lot of companies favor having their own websites. However they do not advertise these websites in other stations.

Pamphlets : That is a very common way of advertising that can be used in Dubai. Roughly AED 2000 can be allocated to this setting of advertising.

Sponsoring Occurrences : This method is common for the Apparels and Electronics industry. Companies sponsor situations or even set up their banners at some occasions for advertising.

Also, though about 75% in our respondents were content with the advertisements predicated on the increase in the footfall in their shops, around 25% weren't satisfied as the advertising did not cause upsurge in the footfalls in their outlets.

Need to Sell Goods that were not for sale in shops

When asked if any stock had not been moving out or any other commodities that would have to be thought, below is the break up of the responses.

However, the products that were to be sold were the stock that the outlets sold, and not anything in addition to the key business.

Modes for offering goods

The pie graph below shows the breakup of the many settings used for advertising goods. The count is more than the real test size because of multiple replies by the respondents.

It was obviously seen that businesses here in UAE choose the traditional way of sales by advertising directly to the customer or using personal contacts. The companies who had been advertising in different stations, used the advertising for publicizing about their sales.

Advertise or Sales Online?

Below graph implies that most of the businesses aren't advertising online. Those hateful pounds are using Online Media to promote. But hardly any businesses use online mass media for offering their goods.

As it could be seen from the graph, most of the companies here in UAE do not like to market online. Nonetheless it is observed that we now have some companies who do use Online Portals to advertise online. An extremely small part of companies use online multimedia to advertise as well as sell their goods.

Advertise Online

Commonly Used Websites

The graph below shows the consumption of some widely used websites.

However in Dubai, we found that most of the companies who resorted to the Online Portals prefer websites that are UAE centered.

Factors for selecting website

The pie chart shows the factors the companies consider to choose their Online Portals.

We found that some of the companies selected the web Portal only due to Online Portal mailing salespersons personally to go to their shops and providing complete assistance to them.

Reasons for Not Advertising Online?

We found 27 out of 36 companies that had not advertised online ever. When we probed to find out what are the reasons for which the businesses are not into advertising online, we found only 4 companies who said they were thinking of joining online advertising and establishing their own websites.

But the rest 23 of these had a poor take on advertising, especially Online Advert. We found 11 companies who weren't interested in advertising. They presumed in their own customer basic that they have and do not think that advertising can help them expand.

Also the others 12 companies were content with the current advertising that that they had in other mass media. They believe that their customers are not Internet Savvy. So they won't get much response if indeed they go online. That is a major reason businesses in UAE are yet not checking out their options in the internet. Besides, understanding of Online advertising and marketing is a significant hurdle.

Selling Goods Online?

We found only 3 companies out of 36 which were retailing goods online. The design of choosing the web site was assorted. Two of these use Amazon. com, while other uses its own website for the sales. One even select UAE based website to sell goods. The reasons for choosing these websites were mainly due to the high Consumer traffic and Trustworthiness of the websites. However for all the 3 companies, no matter whether the Online Site is dedicated to the UAE market.

Two of the firms charged their goods at a discount for Online sales, while one company priced the goods at par with the purchase price offered in the outlets. Two of the companies were satisfied with the sales online, and one was not, only because of the website cannot draw in Consumers.

While one company preferred to sell their goods online without talking about the brand name, the other two preferred talking about their name while advertising online.

Also all 3 companies preferred providing the products at the doorstep of the customer by charging a supplementary cost. However one company was open to having the buyer drop with their shop to get the goods themselves.

All the 3 companies gave an equal inclination to online sales as well as sales in the retailers. Also while one company generally waits for 4-6 weeks to market their goods online, the longing time for sales online doesn't matter for the rest two companies.

For handling the web sales, two of the firms have their dedicated team to focus on the online sales. But one company gets the help of the website for the same. Likewise, one company prefers to have an Online Portal that delivers the complete assistance with the sales online, whereas the other 2 companies wouldn't normally choose any assistance for carrying out their sales online, given that they already have an ardent team for managing the same.

Does not Sell Goods Online

We would prefer to advertise online, however, not sell goods online.

When posed this question, 13 of the 28 companies who didn't sell online disagreed and offered the suggestions that they would like to sell online. However 10 of the firms agreed to the statement that they would go online limited to advertising rather than selling.

We consider advertising online to be the cheapest mode compared to other channels.

The above graph signifies the responses that we got. It represents the actual fact that businesses in UAE do not view advertising online to be the cheapest mode. This was because they haven't explored it to determine about the options they can have for advertising Online.

We would like web sites having high number of customers looking at the products.

As seen in the graph above, the majority of the businesses choose websites having high number of customers browsing the products.

We may use online sales of products to dispose off old products

The above graph demonstrates businesses in UAE firmly disagree to this statement. A standard statement that we got when we posed this question was that they often decrease the price and sell off old goods in the shops. But they would not use Online Multimedia to do the same.

We would prefer to sell the goods without needing the Brand Name

Again here most of the businesses strongly disagreed to this statement. One solid statement that came up up very commonly was that they might always sell their goods with the brand.

We would enter in Online Sales only if the Online Portals provides us with all the current assistance to perform our sales online, without we having to do it ourselves.

From the graph above it is clear that almost all of the businesses have trust this assertion. However a substantial portion of the samples have strongly disagreed to the statement. They are the companies which may have their own infrastructure necessary for venturing in the Online World.

Demand of Online portals that focus on the UAE Market

There is a big proportion of businesses expressing No. This is because they regard joining Online Marketing means the usage of the complete world. They would not need to restrict themselves to UAE Market by themselves.

Inclination to try SmilingAds

As per the responses we got, almost all of them who said Yes, described that they would decide trying out SmilingAds only when it is not too expensive.

Conclusions & Recommendations


From our research, we arrived at the next conclusions

Businesses in UAE prefer to handle their businesses in the traditional way by providing right to the Consumers. They aren't much inclined towards advertising.

The main anxiousness of the Businesses is the fact that if the Individuals are not Internet Savvy, it doesn't make sense for them to go Online for advertising and retailing their goods. You won't yield in virtually any returns.

Businesses in UAE are not Internet Savvy. However they might prepare yourself to try out Online Advertising if they are convinced.


Based on our study and evaluation of the findings, we recommend the next to SmilingAds

Since Online Marketing and Sales is in an exceedingly nascent stage in UAE, it might be better to launch SmilingAds website in 3 stages

Stage 1 : Online Advertising

Here we can let the Businesses not only post the advertisings about their contact details, but also provide them with areas for creating their advertising about their sales, savings, etc that can catch the attention of consumers.

We can keep a an eye on the number of Consumers that visit our websites. Also we can ask the firms frequently about the footfalls in their retailers. This would let us know if we have created an online site that works well with respect to Advertising.

Stage 2 : Online Marketing

Once Step 1 1 is achieved, a survey can be executed to see if the Businesses who have posted advertising on SmilingAds are enthusiastic about reselling their goods online on SmilingAds. At this stage a Go-No Go Decision can be produced about establishing system for online buying and selling.

MODES OF Advertising for SmilingAds

The businesses in UAE answer well if they're convinced to go surfing. We recommend SmilingAds to truly have a strong Sales Pitch which would include appointments to the outlets to ask them for adding their advertisings on SmilingAds. This would ensure the businesses to consider SmilingAds for INTERNET MARKETING.

Also since consumption of Internet continues to be in a budding level in UAE, advertising for SmilingAds can be carried out through Radio, which is a quite effective way of advertising here in UAE. A Newspapers Ad can also be directed at promote the website. This would draw in Consumer traffic to the website.

Advertising Campaign

The advertising campaigns may include attractive and catchy information that Consumers look for. Make it appear that SmilingAds will encompass all information under one rooftop. For example "Find out about the sales and special discounts in your area", etc. This might make the firms feel that this might get Consumer traffic. Hence they would want to put their ad on the site.

Website Design

The website should obviously indicate the decision Center number such that it stands out. This might help Businesses which want out for assist with call SmilingAds for Sales Guidance, and finally post their advertisings on SmilingAds.

The website should be designed in a manner that gives a professional look and also simple to use. The prospective audience should be considered while designing the website. It should be easy for a user to get the required information. Besides, the companies could be classified as per their industries. This might make it easy to locate a company.

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