Introduction to the product and choice of country
Introduction to the Product
The technology is developing at an amazing pace all over the world. This is from information and telecommunication technology, manufacturing technology among others. But perhaps the most unlikely places that one would expect to encounter latest and state of the art technology is in the plumbing sphere.
This has been changed by Miscea, a faucet manufacturer in Germany Augsburg. This company which is based in Switzerland holds exclusive distribution rights in the United Arab Emirates. This company has developed a range of sensor activated faucets that spares the user the need to touch the stainless steel gadget to turn the water on and off (Edwine 2007).
The conventional Miscea faucet is used to dispense a range of sanitizing agents such as water, soap, detergents, and lotions among others (Edwine 2007). All the user has to do is move their hand to the appropriate sensor to dispense what they wish from the faucet.
For example, if one wishes to dispense soap to wash their hands, they simply point their hand towards the section labelled soap, and then place their hands below the dispenser to await the magical dispensation. Temperature of the water for washing hands is also controlled by a mere flick of one’s wrist. The whole operational procedure of this state of the art faucet sounds not unlike a magical wand story from children fantasy books.
Miscea 4.1 is a new product which is an enhancement of the conventional Miscea faucet described above. It combines the features of the conventional Miscea faucet with new ones. The new Miscea 4.1 is specifically designed for the consumers in the health sector. These include hospitals, laboratories and other public and private medical institutions (Edwine 2007).
The new features in Miscea 4.1 enable the management of the hospitals or any other institution to keep tabs on the level of hygiene hands compliancy of the staff members. The management, through the use of this product, will be able to record the time, locality and frequency of each of their staff member’s utilization of the new faucet. This is done by keeping tabs on the amount of liquid used by the members of staff, its identification-whether it was soap or disinfectant.
A notable feature that sets apart Miscea 4.1 from the conventional Miscea is the use of a small tag that the members of staff are called upon to attach to their clothing. This new tag is no different from the usual name tags used by the members of the staff. The difference between the two is that the former has a miniature digitalized screen with small bars that look like the code bars on supermarket merchandise (Edwine 2007).
The small bars on this tag have the ability to glow from red to green depending on the member of staff’s frequency at the faucet. The more times the faucet is used by the member off staff, the more the tag glows towards the green extreme. After a certain period of time elapses from the last visit to the dispenser, the tag will glow to yellow, then to orange and then to green.
It is important to note at this juncture that each hospital has a defined hand hygiene compliancy rate. The members of staff are required to wash their hands after, for example, twenty minutes. This is despite the fact that the member of staff may not be performing any medical procedure.
The advantage of this new Miscea 4.1 faucet is that it maintains the level of hand hygiene compliancy rates among the members of staff at an all time maximum point. This is given the fact that members of staff are visually reminded to wash their hands regularly by the colour code of their tag.
Colleagues, noting the declining colour code on their fellow member of staff’s tag, have the ability to orally remind them to wash their hands. After all, no one will wish to walk around the hospital corridors displaying to all and sundry that they have not washed their hands. The management of the hospital will also be able to monitor whether their members of staff are adhering to the hand hygiene protocols. Correctional measures, in cases where level of compliancy is low, will be effectively executed.
This is a marketing plan for this Miscea 4.1 faucet. It is targeted at consumers in the medical sector of the United Arab Emirates’ country. These include the dentists, hospitals, laboratories among others. This company will be selling this product through wholesalers and retailers in the country, and they will be the exclusive distributors of the same.
Introduction to the Target Country
As earlier indicated, this is a marketing plan for Miscea 4.1 into the United Arab Emirates. The United Arab Emirates, as the name suggests, is a conglomeration of seven emirates that is located in the south eastern part of what is known as the Arabian Peninsula (Cricinfo 2009). The Peninsula is located in the south western part of the Asian continent, snuggled on the Persian Gulf (Cricinfo 2009). It neighbours the Oman and Saudi Arabian countries.
This introduction to the United Arab Emirates is going to cover the economic, political, legal and cultural analysis of the country. This is to give the Miscea 4.1 marketer an overview of the country within which they will be operating. To come up with a competent marketing strategy for the product, it is important to have a clear picture on the culture and life of the people that the product will be marketed to.
History of the United Arab Emirates
The geographical area that is today referred to as the United Arab Emirates was in the past occupied by people whose major economic activity was anchored on the waters of the surrounding ocean. They were converted into Islam in early 7th century (Sheikh-Miller 2010). Carmathians, a dissident sect in this region, formed what became a powerful sheikdom (Sheikh-Miller 2010).
The latter’s army took control of the city of Mecca, but it later disintegrated. Its citizens turned into piracy, terrorising world merchants who used the waters given their strategic geographic location. In the year 1820, the British enforced a partial truce after piracy threatened the existence of the Oman and Muscat Sultanates, major trade partners of Her Majesty’s (U.S. Department of State 2007). This was turned into a permanent truce in 1853, and the region was as a result known as the Trucial Coast (Cricinfo 2009).
In 1971, the British withdrew from the region, and the states under the Trucial coast formed a federation that was referred to as the United Arab Emirates (Cricinfo 2009). Initially, nine states were under the auspices of the Trucial states. Two of them, Bahrain and Oman, opted out of the federation, and as a result, the United Arab Emirates ended up with seven states. This is how the latter day’s United Arab Emirates came into being.
Geography of the United Arab Emirates
The United Arab Emirates is made up of seven emirates. These are Dubai, Abu Dhabi, Sharja, Ajman, Fujairah, Umm al-Quwain and Ras al-Khaimah (US Department of State 2007). Abu Dhabi is the capital city of the emirates, and forms the seat of the emirates’ political and economical activities. It is the second largest city after Dubai.
The United Arab Emirates covers an area that is approximately 82,880 square kilometres (Sheikh-Miller 2010). The topography is largely a desert, but there are few agricultural areas especially around the oasis (Sheikh-Miller 2010). The United Arab Emirates is hot and humid environment, given the desert nature of the area. The area also records low annual rainfall.
The map of the United Arab Emirates below displays the geography of the country vividly.
Cultural Analysis of the Country
According to the 2007 census records, the United Arab Emirates has a population of approximately 4.4 million people (Cricinfo 2009). The population growth, as of this census, was about four percent per annum. Ninety six percent of this population is made up of Muslims. Different cultures and beliefs are tolerated in this country, as contrasted to other Muslim nations such as Iran and Iraq.
The institution of the family is highly regarded in this nation. Traditionally, a lot of importance was attached to the extended family. But this has changed with the interaction of this country with the rest of the world. Nuclear family tends to be the most favoured currently. A nuclear family in this country tends to be made up of two parents, an average of seven children and a live in house help.
Men are the heads of the households, and they tend to control businesses and other significant economic activities. Women are employed in teaching, medical and other nurturing careers. The woman is responsible for the management of the nuclear family while the man is at the work place (Sheikh-Miller 2010). Arabic is the national language of this country.
The literacy rate, as of 2003, stood at 77.9 percent (US Department of State 2007). Majority of the illiterates are from the older generation of the population. This is given the fact that a large number of the population is made up of labourers of foreign descent (Cricinfo 2009).
Economic and Political Overview of the Country
As of 2006, the GDP of the country stood at $163 billion (US Department of State 2007). The annual growth rate of the economy, according to estimates of the same year, was 9.7 percent. Per capita GDP stood at $37,000 while inflation rates ranged between 10-13 percent (Sheikh-Miller 2010).
The seven emirates each have a ruler, making the country assume a federal like type of government. However, all of these rulers are under the leadership of the head of state and a prime minister. The president of the emirates, who is also the head of state, is currently Sheikh Khalifa bin Zayed Al Nahyan (Sheikh-Miller 2010).
The president is also the head of the state, and the position is currently held by the ruler of the Abu Dhabi emirate. The prime minister, who is the head of the government, is currently Sheikh Mohammed bin Rashid Al Maktoum (Sheikh-Miller 2010). He is the current ruler of Dubai emirate.
The political environment in this country can be described as relatively stable as compared to other Muslim nations. This is why Abu Dhabi remains the major city in the country, given that a large share of this country’s oil comes from deposits in Abu Dhabi. Dubai, given her large population and economic growth rate that is nothing short of impressive, takes hold of the deputy president and prime minister’s portfolios (Sheikh-Miller 2010).
Market Audit and Preliminary Marketing Strategy and Plan for Miscea 4.1
Summary
The United Arab Emirates is a conglomeration of seven emirates. The major source of foreign exchange for this region is oil, given that this country has the world’s third largest oil deposits. The capital city of the emirates is Abu Dhabi. This is also the political and economic hub of the emirates.
Each of the seven emirates has a ruler, but the seven emirates are led by a president who is deputised by a prime minister. Islam is the major religion of the emirates, and to this end, ninety six percent of the population subscribes to this faith. However, it is important to note at this juncture that other religions and cultural practices are tolerated in this country, unlike in other Islamic nations. However, all residents of the country, regardless of their origin and religious orientation, have to show respect to the Islamic religion.
The economy of the emirates is one of the strongest in the Middle East and in the larger Asian continent. Experts estimate that it is growing at a rate of 9.7 percent (Sheikh-Miller 2010). Most of the businesses are owned by men, while women are charged with managing the familial affairs. The combined population of the emirates, together with the foreigners who makes up a substantial number of the labour force, is about 4.4 million (Sheikh-Miller 2010).
The above is a brief description of the market that the product, Miscea 4.1, is targeted at. The latter is an improvement of the conventional Miscea faucets that have been embraced by medical institutions for their hygienic disposition. This marketing plan aims at developing a blue print to market this product in the United Arab Emirates.
Market Audit for the Miscea 4.1 Faucet
Introduction
This marketing audit is designed to give an overview of the product in the context of the target market. It will include an evaluation of the product, whereby the relative advantage, compatibility and complexity of Miscea 4.1 faucet will be analysed. This will also include trialability and observability of the same where applicable. The major problems and possible resistance to the product will be analysed.
The second component of the market audit for Miscea 4.1 faucet will be market analysis. This will involve a description of the market, whereby geographical and other features of the physical market will be identified. Channels for product distribution will be highlighted, together with advertisements and promotion tactics for Miscea 4.1 faucets. Competitive advantage of this product in the market will also be carried out, together with an analysis of the market size.
Government participation in the marketplace
The role of the Government will also be analysed putting in mind that the Government policies directly affect investments in any country. The UAE government is consistent on improving business relations with trade and investment partners in US and Asia. The Government’s open policy in implementations of the latest technologies in the different sectors of the economy can be rated as a positive indicator in the political environment and a great opportunity for the company.
Through the Ministry of Health the Government may help in recommending the use of the Miscea 4.1 system in the Hospitals. This will be a Governments move to ensure high standards of Hands hygiene are observed. This can be the role of the Government in enhancing success of the system in the United Arab Emirates.
Miscea 4.1 Faucets
This product will be hailed as a state of the art gadget by the market, and the marketing strategy must ensure that the advanced technology of this product is highlighted. The conventional Miscea faucet is itself a technological masterpiece and Miscea 4.1 is an improvement on this.
In his book Diffusion of Innovations, a scholar by the name of Everett Rogers identified the chief characteristics of innovations that affect its adoption (Rogers 1995). Given that Miscea 4.1 is an innovation, and the marketing plan is aimed at enhancing the adoption of the technology, the five dimensions of innovation adoption will be seminal in analysing it. These are as follows:
Relative Advantage of Miscea 4.1
Relative advantage is conceptualised as the advantage that the new innovation holds over existing ones (Plesk 2003). When compared to the conventional Miscea faucets, Miscea 4.1 holds a definite relative advantage. First, the management of the hospital is able to monitor the members of staff that is adhering to the hand hygiene protocols and those that are not. This is by examining the colour codes of their tags.
Conventional Miscea faucets are efficient in utilisation of water. According to Edwine (2007), the faucets save about 70 percent of water as compared to other faucets. Miscea 4.1, given its ability to monitor whether the member of staff used a detergent or soap in washing their hands, extends this efficiency to the utilisation of the detergents and soap.
Compatibility of Miscea 4.1
Before the introduction of an innovation, there are values and experiences that are in existence within the target population. The extent to which the new innovation is compatible with these values and experiences is referred to as compatibility of the same (Pankratz, Hallfors and Cho 2002).
Miscea 4.1, in this context, can be described as highly compatible. Hospitals and other medical institutions prioritise hand hygiene, and measures are already in place to enforce this. Miscea 4.1 merely complements the efforts of the medical fraternity staff in their endeavour, and is likely to be adopted as a result.
Complexity of Miscea 4.1
This is the level of difficulty of the innovation when it comes to comprehension and use of the same (Rogers 1995). Miscea 4.1, given the existence of the conventional Miscea faucets, is not complex. It is easy for the staff to use and understand, provided that they are aware of the meaning of the various colour codes. This means that it is likely to be embraced by the target consumer.
Trialability of Miscea 4.1
This can be conceptualised as the ability of experimenting with the new product on a trial and limited basis (Baskerville and Pries-Heje 2003: Pankratz, Hallfors and Cho 2002). Miscea 4.1 can be experimented with on a trial basis. The hospital management can put a small number of their staff on Miscea 4.1, and monitor the effects of the new technology.
Observability of Miscea 4.1
This is the extent to which the effects, negative or otherwise, of an innovation are visible to other people apart from those who innovated it and those using it (Pankratz et al 2002). The effects of Miscea 4.1 are observable. Colleagues who are not wearing the tag for Miscea 4.1 can see the colour codes on their workmates, and can discern the extent to which they are adhering to the hygienic hands protocol. The management can easily observe the results of the usage of Miscea 4.1 by monitoring the rate at which the members of staff are using it.
Resistance to Adoption of Miscea 4.1
Given the characteristics of Miscea 4.1 as an innovation, it is clear resistance to its adoption will be minimal. It is a product with advantages above the existing conventional Miscea faucets, and can be easily utilised.
The Market for Miscea 4.1
This marketing plan is for the whole of the United Arab Emirates, meaning that Miscea 4.1 will be marketed in each of the seven emirates. The United Arab Emirates is one of the emerging economic giants in Asia, and this factor will influence the marketing of the Miscea 4.1 in this region.
Transportation and Communication in the United Arab Emirates
The government in this country have spent considerable sums of money on roads and communication infrastructure. Construction of roads, ports and such other infrastructures accounts for thirty seven percent of the total project value in this country (Cricinfo 2009). This is especially so in Abu Dhabi and Dubai, the economic hubs of the emirates.
United Arab Emirates’ airports are some of the largest in the world. A case in point is Al Maktoum International Airport. Analysts are of the view that this will be the largest in the world by in a decade’s time (Cricinfo 2009). Sheikh Khalifa bin Zayed Al Nahyan, the president of the emirates, have indicated the importance that the administration attaches to the infrastructure by the budgetary allocations to the same. US$4.4 billion was allocated in 2009 for various projects among them road networks and communication channels.
All the major cities in the United Arab Emirates are linked by an extensive road network (Cricinfo 2009). However, it is important to note that the roads in the western and southern parts of the United Arab Emirates are somehow primitive; they are not as developed. This is given the fact that they go through deserts and such other difficult terrains. Residents in these areas rely on airplanes for transport in these regions.
The United Arab Emirates is bordered by the ocean on two sides. This has led to the construction of major ports in the country. These include Port Jebel Ali, Port Khalid, Port Rashid, and Port Zayed among others.
Consumer Habits in the United Arab Emirates
If the number of shopping malls and duty free shops is anything to go by, then it is not far fetched to purport that the united Arabs emirates is a shopping hub which attracts people from all over the world. A case in point is the Dubai shopping festival. This was started in the year 1996 and has continues to attract shoppers from all corners of the globe (Aliqah and Al-rfou 2010).
The United Arab Emirates has a thriving manufactured product market. Consumers here seem to prefer manufactured goods as opposed to non-manufactured goods such as agricultural products. These are for example textiles, cars and electronics. Manufactured goods account for 59 percent of total trade in the country (Cricinfo 2010).
Product Promotion and Distribution
This marketing plan proposes that this company be the exclusive distributor of Miscea 4.1 faucets. This means that there will be no middle men between the distributors and the retailers. The company will deal directly with the wholesalers and the retailers (Blake, Neuendorf and Valdiserri 2005).
Sales promotion will be made through advertisements through the media. Adverts will be placed on the internet on websites that are accessed by the target client. Other adverts will be placed on publications that are read by the target audience. There will be no advertisement through the popular media such as radios and televisions. This is given the fact that this product is not meant for the general public but for a specific audience (Bradford and Florin 2003).
Prices will depend on the number of intended users for the medical institution. It will also depend on the quantity that the client orders. Roughly, this will range between 5,000 and 8,000 United Arab Emirates dirham. Cash and cheques will be the two modes of payments that will be accepted. Credit facility will also be offered. Government institutions will have ninety days within which to clear their debts, while private institutions will have a number of sixty days within which to do the same.
The Marketing Plan for Miscea 4.1
Executive Summary
The analysis allows us to outline the best strategies to follow for the achievement of the company’s strategic goals. The company’s strategic goal is to produce and distribute the Miscea 4.1 product which is a health hygiene product. We also intend to venture into the U.A.E market where there is a big market for hygiene products. Miscea 4.1 is a new product being launched for the first time and it targets to help the Hospitals management to maintain the hygiene standards of the hospitals by digital monitoring. This product is going to be a successful innovation to improve hygiene in the U.A.E medical fraternity. The marketing strategies will enable to reach a market size of an estimated twenty thousand medical services hospitals and dispensaries. Its forecasted sales growth prospect is 6.9% over the next 5 years ($443,029.47 profits).
The major objective of this marketing plan is to ensure that Miscea 4.1 is selected as the product of choice by major medical institutions in the United Arab Emirates. The objective is to introduce the consumer to the product, and to establish their loyalty to the same.
Target Market
The target market for Miscea 4.1 is the medical institutions that are situated in major urban centres of the United Arab Emirates. These include hospitals, laboratories, research institutes and such other institutions. The targeted medical institutions must have a source of power, given that the product is powered by electricity. This means that the major consumers for this product are medical institutions located within or around town centres in the United Arab Emirates.
Expected Sales
This marketing plan targets to sell two thousand units for the first three months after the introduction of Miscea 4.1 into the market. At an average of six thousand dirham per unit, this will fetch the company around ten million dirham within the period. One unit costs around two thousand to manufacture. Profit before factoring in other expenses such as transportation will thus stand at around eight million dirham.
Promotion Mix
As earlier indicated, advertisements and sales promotion will be used to create publicity for Miscea 4.1. To this end, advertisements will be placed on hospital and other medical institutions websites. The marketing plan also proposes for the use of the company’s website to market Miscea 4.1.
Other promotional tactics that will be offered is after sales service. The company will provide the client with a technician who will assemble the unit at no extra cost to the client. The company will also provide the client with experts who will train the staff on how to use the faucet, again at no extra cost to the client.
Distribution for Miscea 4.1
As earlier indicated, this company will use the wholesalers and retailers to distribute the Miscea 4.1 faucets. A total of twenty two retailers in various parts of the United Arab Emirates have already been selected for this. These will be complemented by fifteen wholesalers, two in each of the emirates and three in Abu Dhabi. The retailers and wholesalers were selected depending on their volume of sales and other criteria. Those with an annual sales volume exceeding ten million dirham per annum were the ones that were take into consideration.
A combination of sea ports, airports and road transport will be utilised. Roads will be used given the fact that major cities in the emirates are connected by roads. As such, road will be used to transport the product on short distances, for example within the city. Airports will be used to deliver the products to those parts of the United Arab Emirates that are remote.
These are for example those medical institutions that are located in the deserts and which have power supply to operate the Miscea 4.1 faucet. On the other hand, sea ports will also be used to transport the goods on long distances that are connected by the ports.
Situation Analysis
Miscea 4.1 has a vision to be one of the leading Hygiene and health care product distributed and the leading product for dispensing disinfectant and soap in most hospitals in U.A.E. It will continue to provide the other products to its customers and maintain effective cost effectiveness service standards.
The company has carried out effective study in the health and medical sector and it realised a need of hygiene maintenance since many hospitals and health care services are required to observe a high level of hygiene standards while attending to the patients and also for safety purposes and avoid infections. This is the specific purpose why Miscea 4.1 was developed. To cater for the need of improving hygiene conditions and maintain cleanliness to avoid infections.
Competitive Advantage
The company has a competitive advantage over other products since they are offering one new product with new features in the market. This makes Miscea 4.1 a unique product with unique features. This gives the product a competitive advantage over other dispensers which can only dispense one liquid at a time.
The technology is also so far only with Miscea 4.1 since it is digital and has electronic features that notify the staff on their level of hygiene. This makes Miscea 4.1 a better product rated than other company’s products in the market. It has a to work for a positive image in the market and also to maintain its industry lead since by the time the other companies copy the technology Miscea 4.1 would have made amicable strides.
Core competencies
- New technology that is meeting the hygienic monitoring needs of hospital and laboratory hygiene.
- Efficient monitoring of Hygienic conditions in the health service centres.
- Technology at affordable prices.
- Unique Innovation and in the market lead.
Marketing Objectives
The objectives of the marketing plan are strategically based on 3 criteria: to create a strong consumer awareness towards a completely new dispenser product with new features, to establish a wide product recognition through the capture of market shares in the health and hygiene sector, and to become the top market leader in that hygiene segment within the forecasted sales figures.
These major objectives are the ones we see to accomplish as we launch the Miscea 4.1 product in the UAE’s Market. The health and hygiene sector is fundamental for the success of the sale projects. The entry into the United Arab Emirates is as a whole subsidiary of the company that is based in Switzerland.
The firm owns 100 percent of the stock and its establishments. This makes a full owned subsidiary investment by a UAE national who will be the exclusive distributor of Miscea in the United Arab Emirates. The company will offer two years warranty when a unit of Miscea 4.1 is bought and it will also offer an incentive of free liquid for as long as the client uses the system.
SWOT Analysis
Our main strategic focus will be to penetrate in to the UAE market by advertising aggressively to make a mark in market. Our target would be to capture clients in the Government and private sector in the medical sector. The health and hygiene standards board can be approached in order to sensitize on the use of the product in the various health services providing centres. They will improve the hygienic conditions.
Table 1 Budget for product launch.
Reference List
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