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Cereal Market in the Gulf Countries Proposal

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Updated: Jan 10th, 2021


In a number of the Gulf countries, the process of westernization has been incorporated at a rapid pace (Azzam & Rettab 2013). This leads to several outcomes that are of interest to the author of the current research. The central focus of this research project is the increasingly competitive growth of the cereal market in the UAE, particularly Dubai (Al Qaydi 2014). The concept of competitive growth of the cereal market in this area depends on some critical things that have to be addressed within this business project (Pirani & Arafat 2016).

The rationale for research on the topic of cereal market in the UAE is based on the fact that this market segment expands every year, and it may be necessary to come up with a correct outline of expectations and predictions before addressing the possibilities of extending the market and introducing finger millet cereal. The importance of this research lies in the creation of a theoretical basis for the future analysis of the market (El Battay & Mahmoudi 2016). The researcher will provide the readers with several relevant ideas regarding the cereal market in the Gulf countries and discuss the future of this particular segment, supporting the discussion with relevant evidence from the literature (Hozayn et al. 2017). The importance of finger millet for the cereal market will also be discussed and rationalized (Quaydi 2016). The author of the business project will review its impact on the business segments of other countries and apply these concepts to the Gulf countries.

Research Theory

To characterize the marketing system that will be used for this business project, the researcher decided first to define it and establish the research theory that will serve as the basis for this business research (Hair 2016). This is why the researcher will take into consideration the size of the UAE market and the probability of entering the market and gaining the top spot. Also, the theoretical framework proposed by the researcher suggests that all the tasks and responsibilities that are included in the process of marketing the breakfast cereal segment must be summarised and addressed before the risk-taking and deployment (Quinlan 2015). Taking all of the stated above into account, the researcher concluded that such concepts as business unit strength and industry attractiveness have to be implemented. When we speak of the market attractiveness, the first thing that has to be addressed is the size of the market. In the UAE, the breakfast cereal market grows annually, so it is important to come up with a winning strategy as soon as possible (Hassett & Paavilainen-Mantymaki 2015).

Another thing that must be included in the discussion is a set of PESTEL factors. The UAE is currently going through the process of westernization, and its economic state of affairs can be perceived as one of the most fruitful in the world (Collis & Hussey 2014). Considering the Western direction of the country’s development, the researcher can conclude that the social factor is also rather important in how a rather high percentage of the nation is interested in new offers coming from the breakfast cereal market. Moreover, the country’s budget hints at the fact that there is a possibility of using various modern technologies which may significantly facilitate the process of marketing the finger millet cereal (Qureshi et al. 2016).

This is important from a legal point of view. The current condition of agricultural and environmental factors in the UAE shows that there is a rather bright opportunity that should be pursued (Rios & Campo 2013). Another decision that was made by the researcher was the inclusion of Porter’s five forces in the theoretical framework of the current project. Judging by the core aspects of this instrument, the breakfast cereal segment does not display the presence of severely competitive rivalry despite its incessant growth. Buyer and supplier powers can be described as sufficient (mostly because the majority of the UAE residents are craving more breakfast cereal options) (Shanin & Salem 2015). While there is a threat of other new entrants, the researcher is certain of the fact that the introduction of finger millet cereal will distance the company from its rivals. Considering the exclusive nature of finger millet cereal breakfasts, the chance of substitution is critically low.

To apply these principles to the business units, the researcher will address all of the determining factors which may contribute to the future success of the product that is being marketed. First of all, the researcher believes that it is necessary to define these determining factors (Sreejesh, Mohapatra & Anusree 2014). Next, the magnitude of each of these factors will have to be estimated. Third, the researcher will evaluate the level of attractiveness of the product against each of the factors that were mentioned above. The further rating of the business units of the breakfast cereal will be calculated based on the weight of the decisive factors and their ratings. The last step within this theoretical framework will be, to sum up, the ratings for each of the business units and translate them into the strength of the business units (Tuck & McKenzie 2016).

Throughout this proposal, the author will critically evaluate the probability of increasing market share using introducing finger millet cereal and enhancing the brand’s equity. The researcher will also be interested in defining the profit margins to outdo the competition and assist in coming up with strengthened distribution channels. After doing this, the researcher will be able to create a matrix that will display all the data regarding the theoretical framework that was described above. The GE matrix will also critically affect the harvest/divest strategy (Shanin & Salem 2015). This segment is highlighted by the researcher because they are certain of the fact that the introduction of finger millet cereal will help them to make more money than the amount invested. The author of the business project decided not to use the two-dimensional approach. The GE matrix will become a rather useful tool because it commonly helps marketers to allocate the available resources properly and expand their product line (Tuck & McKenzie 2016). In perspective, the future of finger millet breakfast cereal should be perceived based on its integrated marketing potential.

Dissertation Context

The dissertation context revolves around the breakfast cereal segment in the UAE. The rationale for this is a critical increase in the breakfast cereals market in 2016 (approximately 7%) (El Battay & Mahmoudi 2016). The number of Western emigrants also significantly contributes to the development of this niche category as breakfast cereals are not so popular among the citizens of the UAE. Therefore, outlining a new breakfast option (finger millet cereal breakfast) means a large room for growth for any company that will take on the challenge. Kellogg remains to be the most widespread cereal option for the UAE residents, with a market share of approximately 43% (El Battay & Mahmoudi 2016). The deep-rooted presence of this company on the territory of the UAE seriously benefits their success, so the researcher believes that competition is necessary. The income from breakfast cereals is expected to increase by at least 5% by the end of the next forecast period. Even though the niche of breakfast cereals is not yet “mature,” the researcher is certain of the fact that there is a robust customer base that will support the new product.

Bearing in mind the increase in the population of the UAE, the growth of the breakfast cereals segment may also be subject to the residents’ interest in trying something new and exploring fresh cereal breakfast options. Because we are living in the age of technology, the next decade in the UAE may go under the auspices of breakfast cereals. The cereals and bread categories are the fastest-growing segments in the UAE business right now, and their volume share is the highest out of all private and state enterprises. The context of this dissertation is also directly connected to the question of rising health awareness among UAE citizens. For instance, using different marketing instruments, the researcher will be able to elicit the willingness to switch to a low-calorie menu and choose healthier alternatives (finger millet cereal included). The wealth of the population is expected to contribute to the development of the cereal segment. The author of this business project is certain of the fact that the decision to introduce finger millet cereal to the UAE market will create an adequate level of competition and underwrite the process of renewal of the citizens’ lives.

Reference List

Al Qaydi, SS 2014, ‘Food security in the United Arab Emirates: the role of the state in overseas farm crops production’, American Journal of Scientific and Educational Research, vol. 1, p. 172.

Azzam, A & Rettab, B 2013, ‘Food price cap policy and household welfare in the UAE’, International Journal of Economic Policy in Emerging Economies, vol. 6, no. 1, pp. 64-77.

Collis, J & Hussey, R 2014, Business research: a practical guide for undergraduate & postgraduate students, Palgrave Macmillan, Houndmills.

El Battay, A & Mahmoudi, H 2016, ‘Linear spectral unmixing to monitor crop growth in typical organic and inorganic amended arid soil’, IOP Conference Series: Earth and Environmental Science, vol. 37, pp. 1-11.

Hair, J 2016, Essentials of business research methods, Routledge, New York, NY.

Hassett, M & Paavilainen-Mantymaki, E 2015, Handbook of longitudinal research methods in organisation and business studies, Edward Elgar, Cheltenham.

Hozayn, M, El-Bassiouny, HMS, El-Monem, AA & Abdallah, MM 2017 ‘Applications of magnetic technology in agriculture, a novel tool for improving water use efficiency and crop productivity: 2. Wheat’, International Journal of ChemTech Research, vol. 8, no. 12, pp. 759-771.

Pirani, SI & Arafat, HA 2016, ‘Interplay of food security, agriculture and tourism within GCC countries’, Global Food Security, vol. 9, pp. 1-9.

Quaydi, S 2016, ‘The status and prospects for agriculture in the United Arab Emirates (UAE) and their potential to contribute to food security’, Journal of Basic & Applied Sciences, vol. 12, pp. 155-163.

Quinlan, C 2015, Business research methods, Cengage, Andover, MA.

Qureshi, AS, Hussain, MI, Ismail, S & Khan, QM 2016, ‘Evaluating heavy metal accumulation and potential health risks in vegetables irrigated with treated wastewater’, Chemosphere, vol. 163, pp. 54-61.

Rios, V & Campo, ED 2013, Business research methods: theory and practice. ESIC, Madrid.

Shanin, SM & Salem, MAM 2015, ‘Food security in the United Arab Emirates (UAE): the great competition between the agricultural and forestry sector on irrigation resources’, International Journal of Research in Science, vol. 1, no. 1, pp. 19-23.

Sreejesh, S, Mohapatra, S & Anusree, M 2014, Business research methods: an applied orientation, Springer, New York, NY.

Tuck, E & McKenzie, M 2016, Place in research: theory, methodology, and methods, Routledge, New York, NY.

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