Al Ahlia Gulf Line Marketing Analysis Report

Introduction

Al Ahlia Gulf Line (AGL) is a leading manufacturer and marketer of soft drinks in the United Arab Emirates (UAE). Some of brands marketed by AGL in the UAE include Fanta, Arwa, Burn, Coke, and Sprite. Coca Cola is a leading company in the world. Coke’s brand equity is also strong in the UAE. The parent company began in 1892 after Charles Candler incorporated the organization.

The company originated in the United States. Today, Coca Cola markets its soft drinks to consumers across the globe. The company’s background dates back to 1886 when Candler’s father, John Pemberton, came up with the original “Coca Cola formula”. By 1899, Coca Cola was a leading company in America.

In the past years, the company has promoted the best business practices thus becoming a leading player in the global soft drink industry. In the UAE, Coca Cola (AGL) began its operations 1989. The company has succeeded in the region due to its quality bottling operations and distribution systems.

Marketing Environment

There are different macro and micro environmental factors that affect the performance of a business. Micro-environmental factors are the “internal” aspects affecting a business. Macro environmental aspects are those factors that a firm cannot control. In the UAE, Coca Cola has been considering such macro and micro environmental aspects in order to emerge successful.

Micro Environmental Factors

Organizational Aspects

The company embraces the best managerial strategies. This makes it easier to establish the best internal policies, objectives, and strategies.

Consumers and Suppliers

The company has to consider the bargaining powers and expectations of both its suppliers and consumers in order to remain profitable. The managers should consider the best principles in order to ensure the company is on the right path towards success.

Competitors

There are different “fast food” companies in the region. These companies produce fruit juices and mineral water. As well, Pepsi is a leading marketer of soft drinks in the UAE market. These competitors might affect the company’s performance.

Marketing Mix

Al Ahlia Gulf Line (AGL) uses the best marketing mix in order to remain successful. The marketing includes aspects such as “price, place, promotion, advertising, and quality of its products”.

Macro Environment Factors: PESTEL Analysis

Political Factors

Al Ahlia Gulf Line (AGL) operates in a politically stable country. The region has a reliable political climate and labor practices. However, insecurity is also common due to terrorism and insurgencies.

Economic Factors

The UAE is definitely portraying a positive economic growth. This explains why the company should always consider the economic factors in order to remain profitable. The company can succeed in the long term.

Social Factors

The region is experiencing a socio-cultural change. The MNC should consider such changes in order to succeed in this market.

Technological Factors

The company should consider new technologies because they influence logistical operations, product development, and service delivery. These are critical aspects for the company.

Environmental Factors

The world is presently becoming aware of the environment due to climate change. AGL should consider the best practices in order to safeguard the environment.

Legal Factors

There are certain legislations affecting different companies in the UAE. These range from ethical practices, business policies, environmental legislations, and food safety measures. It has been necessary for the company to reconsider such legal aspects.

Segmentation

One of the company’s favorite products is “Coke”. The use of segmentation can make Coke successful in the UAE. In order to make this particular product successful, AGL should consider the idea of “multi-segmentation” as detailed below.

Geographic Segmentation

Al Ahlia Gulf Line (AGL) can target different regions whereby more individuals will consume the product. The main regions will include the major urban centers and cities in the country.

Demographics

The company can target the population based on income levels, gender and age. For instance, the company should target individuals between 16-45 years of age. This population has a good income and is willing to spend money on luxury products.

Psychographic Segmentation

Many consumers are conscious about brands. That being the case, more consumers will be willing to consume Coca Cola’s products.

Current Target Market

There are certain values that describe the target market for Coke. Most of the consumers have similar needs and expectations. The first thing to consider is the issue of geographic location. The potential consumers are in the urban areas. As well, the company should consider certain issues such as demographics, lifestyles, and behaviors. Most of the targeted consumers are between 16 and 45 years of age.

The company can use “socioeconomic segmentation” in order to market its product successfully. The issues to consider include gender, occupation, personal expectations, and education level. The company will also have to consider the attitudes, lifestyles, and behaviors of its consumers.

Description of the Market Opportunity

The existence of a “marketing opportunity” makes it easier for a company to realize its goals. To begin with, the company has a unique brand equity thus making it a major competitor in the industry. The country is today receiving more tourists and investors.

The UAE is also experiencing a robust growth in terms of economy and political stability. More consumers are becoming financial stable and aware of their expectations. This has contributed to a “lifestyle change” thus presenting new opportunities to market Coke to the consumers.

Marketing Analysis

The study focused on key aspects such as “economic position”, consumer expectations, and public awareness. The study also examined the past and current position of various soft drinks in the UAE market. After conducting the survey, the gathered information presented the behaviors of the potential consumers.

By so doing, it was possible to establish the existing opportunities for the company. As well, the respondents provided a “detailed description of the existing opportunities for Coca Cola” in the market. This made it easier to come up with a clear description of the marketing opportunity for the company.

Proposed Product

Al Ahlia Gulf Line (AGL) can successfully introduce a new product in the UAE. The best product to introduce in this market is “Diet Coke”. Based on the existing marketing opportunities, AGL can market Diet Coke successfully to the consumers. The marketer needs to use the “three levels of the product”. The first one is the “core product”. Coke’s brand equity will make this level successful.

The second level is the “actual product”. Diet coke can help people address their health problems and benefit from the product. Finally, the company needs to use the best marketing mix, promotions and advertisements to add value to this new product in the UAE market.

Diet Coke SWOT Analysis

Strengths

• The product is healthy and tasty.
• Diet coke has succeeded elsewhere.
• It is competitive in the market.
• The company’s “brand equity” is unique.

Weaknesses

• It is a new product.
• Marketing incentives are lacking for Diet Coke.
• Can be described a “foreign product”.

Opportunities

• More consumers are sensitive about their health.
• More people are consuming soft drinks.
• Coca Cola dominates the market.
• There are stable economic and political factors.

Threats

• There is competition from substitute goods such as “fresh juices”.
• There is competition from Pepsi.

Proposed Pricing

The pricing strategy for Diet Coke should be in accordance with the existing competition and consumer expectations. The product’s price will be slightly higher than that of the competing products. The approach will make Diet Coke a “superior product”. The price should also be sensitive to the prices of other competing companies such as Pepsi.

Proposed Distribution Process

After introducing the product and identifying the targeted consumers, the company will use its effective supply chain system. The approach will ensure equal distribution of the product across the UAE.

The marketers and distributors will be monitoring the level of consumption in order to promote a steady chain supply for the new product. The supply system will include distribution centers, convenient stores, shopping malls, and customer outlets.

Proposed Promotion Mix

Promotion is an important aspect of marketing mix. AGL should employ the right personnel to market the product directly to the consumers. As well, sales promotions will sensitize the people about the benefits of the new product. The company will also use sporting events to increase awareness.

The company will also use different media and celebrities to advertise Diet Coke in the country. The use of internet-based promotion will make the product successful. For example, AGL can embrace the use of different social media in order to market its new product.