Emirates Industry for Camel Milk & Products in the UK Report

Introduction

The report was written in order to provide aid to Emirates Industry for Camel Milk & Products (EICMP) as an international business consultant. Since the authorities of EICMP, a dairy producer of the UAE, are planning to enter the UK market, presenting camel drinking milk and other products made of camel milk, they need to receive a detailed report, in which the market conditions of the UK are examined, a marketing mix created, an HRM strategy is formed, the market entry modes are evaluated, and recommendations made to adopt one of those entry modes.

In this report, I covered the following vital issues.

First, I studied the background of the company to learn about its specificities, which would allow me to develop better guidelines with the consideration of these specificities. I examined the history of EICMP, the range of products it manufactures, the reputation of the organization, its production facilities and their power, and the positions of the company in the local market and in the international one.

Second, I performed the analysis of various factors of doing business in the UK. I evaluated ten factors and rated the suitability of each of them. Among them are political stability, free market, inflation, labor force, the simplicity of starting a business, the needs of an average customer, the level of competition, the efficiency of the competitors, taxes, and getting electricity. In general, I concluded that the UK presents favorable market conditions for EICMP.

Third, I developed a marketing mix, consistent with the company’s mission, including the requirements to the product, place, price, and promotion. Additionally, I developed precise guidelines for the HRM policy.

Finally, I evaluated the six modes of entry to a new foreign market. As a conclusion, I decided that distribution (export) will the most beneficial mode for Al Aid Dairy due to its suitability to their product.

Company Background

Emirates Industry for Camel Milk & Products (EICMP) is a dairy producing firm founded 25 years ago in the UAE. It was established as a partially governmental organization and established a brand name “Camelicious”. The company assumed the responsibility to produce fresh and high-quality dairy products for the population in the times when canned and powdered milk for the only option. EICMP was the first dairy producing company in the domestic market, and it has successfully fulfilled its task to make the UAE self-sufficient in dairy production.

Nowadays, EICMP is the country’s most popular brand, as well as it is a leading company in market innovations. EICMP is the winner of numerous award, including the prestigious Sheikh Khalifa Excellence Award. The company is also known for its attention to environmental issues; the production is released in recyclable PET packaging since 2003 (“Emirates Industry for Camel Milk & Products (EICMP)” par. 1-5).

EICMP offers a full range of dairy products, including camel milk products and cheese, and deserts. In March 2015, the company introduced the word’s first camel milk powder and ice cream, which are already sold in the UAE and have a chance to make a success on a global market. EICMP has been on the domestic market for more than twenty years. The firm is currently expanding its international markets, covering Sweden, Denmark, France, and Australia. In 2011, it was reported that EICMP held 38% of the domestic dairy market, and the share is going to grow. The company had 26 cattle farms in 2009, with more than 15,000 cows producing 167,000 tonnes of milk a year (“Emirates Industry for Camel Milk & Products (EICMP)” par. 5).

Country and Market Analysis

The analysis of the marketing conditions in the UK includes the following factors.

1. Political stability. The UK is known as a remarkable example of political stability, so the owners of the company have no reason to fear any abrupt political changes. 10/10.
2. Free market. The UK authorities perform very little interference into the domestic market, making it highly suitable for businesses. 8/10.
3. Inflation. The inflation rate in the UK is negative; this October, it fell by 0.1% and is predicted to continue falling, which is suitable for the company (“United Kingdom Inflation Rate” par. 1). 9/10.
4. Labor force. In the UK, there are currently 1.82 million unemployed people. Creating new working places will attract the unemployed individuals. It must not be forgotten, though, that the country’s labor force is used to certain levels of wage (“UK Labour Market, September 2015” par. 4). 7/10.
5. Starting a business. The UK has favorable conditions for starting a business, for which the country was given the 17th place in the world by Doing Business (“Starting a Business” par. 1). 10/10.
6. Customer needs. Customers in the UK are used to diverse and high-quality dairy products. Additionally, camel milk is not a highly popular product yet (“Dairy in the United Kingdom” par. 3). 7/10.
7. The level of competition. In the country, there are several popular brands producing dairy products for the population. The level of competition is rather high (“Dairy in the United Kingdom” par. 2). 6/10.
8. The efficiency of the competitors. Despite the heated competition, not all dairy producers provide camel milk. The only efficient rival is the American Desert Farms. 8/10.
9. Taxes. The UK presents a very convenient form of paying taxes. For the efficiency of the mode of taxpaying, the country was given the 15th place in the world by Doing Business (“Paying Taxes” par. 1). 10/10.
10. Getting electricity. The UK services allow to get a quick access to the electricity network. 9/10 (“Getting Electricity” par. 1).

Marketing Mix and Staffing Policy

As I specialist, I worked out a brief marketing mix, which is intended to help EICMP to enter the UK market successfully. As it is necessary, the marketing mix refers to 4P: product, place, price, and promotion. The mix also takes into consideration the fact that the company has to respond to the global standards but apply to the local tastes and requirements.

1. Product. EICMP is recommended to introduce not only drinking camel milk but also the secondary products such as the new camel milk ice cream.
2. Place. The company is advised to introduce the products not only to giant supermarkets but also to convenience stores, which will allow to reach out to the customer.
3. Price. To defeat the rival, the company is recommended to establish lower prices.
4. Promotion. Internet advertising is much more efficient than any other. In advertising, it is recommended to make a stress on the health benefits of camel milk and its higher food value compared to cow milk.

In human resources management policy, the company is strongly recommended to follow the next guidelines. First, the employees have to be selected based on their level on cultural adaptability. Second, the hires should be trained before being assigned a job. Third, a clear reward strategy should be worked out and introduced to the employees to increase their commitment and devotion.

Market Entry Strategy

The advantages and disadvantages of the following six marketing entry modes were evaluated.

1. Exporting. A distributor purchases the product and sells it to local retailers. It is a good choice for the initial activity since distributors know the local market better. However, is will not allow to establish lower prices.
2. Licensing. Foreign firms are allowed to make the product on this particular market. It makes the entry quick, but the proprietor loses control over the product and places its reputation at risk due to the incompetency of a partner.
3. Franchising. A partially dependent firm makes payment to the proprietor to sell its product and use the brand. This mode is money-saving but risky because of the impossibility of total control over a franchisee.
4. Wholly owned subsidiaries. A parent company owns another company, which enters the new market. This mode allows to control all the operations, but the expenditures will be high.
5. Joint venture. Two (or more) companies agree to join their efforts to create a third company and divide the revenue. It allows to get greater capital and technologies, but the risk is very high since both partners experience distrust.
6. Strategic alliance. Two or more organizations unite for a precise period of time only to make a certain product and divide the income. This will ensure a quick entrance to a new market if the ally is experienced and well-known in this market, but the risk is high because of the distrust.

Of all these modes of entry, I would recommend distribution. First, it is a usual mode for packed food products. Second, the risk is lower than the other modes present.

Conclusion

This report was written for EICMP, a UAE company producing dairy products, who prepares to enter the UK market. To perform the task, I started with studying the company background to learn about its specificities. Then, I analyzed the conditions of the market in general and the market of dairy products of the UK. Next, I worked out a marketing mix with the specific requirements to the product, place, price, and promotion. Finally, I studied the six modes of market entry, including their advantages and disadvantages for EICMP. In conclusion, I found out that distribution was the best mode of entry for this company due to its suitability for packaged dairy products.

Works Cited

Dairy in the United Kingdom 2014. Web.

Getting Electricity 2015. Web.

Emirates Industry for Camel Milk & Products (EICMP). n.d. Web.

Paying Taxes 2015. Web.

Starting a Business 2015. Web.

UK Labour Market, 2015. Web.

United Kingdom Inflation Rate 2015. Web.