Introduction
Dubai is currently one of the major global business hubs and a tourist destination. The real estate industry has hugely benefitted from the growing relevance of this city. According to Low, the real estate industry in the United Arab Emirates in general, and Dubai in specific, has witnessed massive growth because of the investments made by both the government and the private sector (79). Most of the new buildings in this country are being designed to be environmentally sustainable. The concept of green building is becoming relevant in cities such as Dubai and Abu Dhabi as the stakeholders try to find ways of protecting the environment. Most of these new designs are energy sensitive.
They are designed to conserve energy as a way of enhancing sustainability. The use of renewable energy has become a major factor among the current players in the real estate industry. In the United Arab Emirates, the use of solar energy is becoming popular because of the consistency and intensity of sunlight throughout the year. Solar panels, previously less common in the country, are becoming the alternative energy option for many homes and industrial settings. That is why the solar panel is becoming a popular product in the real estate industry. Dubai Solar Panel Dealer Limited is a new business entity that distributes solar panels from various manufacturers in the cities of Dubai and Abu Dhabi. In this paper, the researcher seeks to come up with an effective and marketing plan that can be used by this firm to tap into the growing real estate industry in the country.
Situational Analysis
Conducting a situational analysis helps in understanding the microenvironment and some aspects of the macro-environment within which a firm operates (Valentin 112). A SWOT analysis helps in identifying internal and immediate external factors that may affect the way a firm operates in the market. Dubai Solar Panel Dealer Limited is a new firm that is just getting into the existing market of solar panels. One of the main strengths of this firm is flexibility. It is small in size and it can adapt to various changes in the market without straining. The management can easily monitor market trends and initiate operations based on them. Another major advantage of this new firm is that the management is headed by a team of experts in the field of sales and marketing. In our survey, we noticed that most of the existing solar panel distributors were started and are being managed by individuals who do not have any college degree. However, we are a team of experts who understand how to monitor and respond to emerging market forces. This will be an advantage once our firm becomes operational. This company is new in the market hence there is no negative reputation that may make it unattractive to the customers.
Dubai Solar Panel Dealer Limited has several weaknesses worth noting. One of the biggest weaknesses is the lack of experience in this industry. This firm is just getting into the industry and it is not aware of the existing forces in the market. It may take a while for this firm to gain experience in the industry. The limited financial resource is another weakness. As a new firm, the company wholly relies on funding from the owners. Rival firms that are already making profits, therefore, have an edge over it. As a new firm that has no financial history, it may not be easy for Dubai Solar Panel Dealer Limited to access loans from a financial institution. It means that it may not easily financial expansion projects unless the owners are willing and able to provide the needed financial support.
The market has several opportunities that this firm can take advantage of to achieve the desired growth. The biggest opportunity is the growing real estate industry that is now keen on using solar panels as a way of promoting the sustainable industry. With an effective marketing strategy, it will not be difficult for this company to get clients within the city of Dubai and Abu Dhabi. The emergence of local solar panel manufacturers means that this firm can get the product locally instead of importing from other countries. It will help lower the cost of doing business. The growing size of the middle class in the United Arab Emirates is another opportunity that expands the market size for this firm.
The external environment has several threats that this company should be ready to deal with effectively. One such threat is competition. Several firms are already offering this product in the market. Some of the local manufacturers are also considering delivering their products directly to the customers, eliminating distributors such as Dubai Solar Panel Dealer Limited. The management of this new company will need t come up with ways of dealing with this threat. The popularity of alternative products, especially electricity and gas also affects the market for solar panels in the cities of Dubai and Abu Dhabi. The SWOT analysis is summarized in the table below.
Table 1: SWOT Analysis table.
Source (Developed by author).
Identifying the Segment
According to Swain and Jägerskog, segmentation is very important in marketing because it enables a firm to focus on a particular section of the market that is most desirable (78). For a small firm such as Dubai Solar Panel Dealer Limited segmenting the market is critical because it allows the management to concentrate on a group of customers whose needs can best be met by the firm’s existing products. The real estate, as mentioned before, will be the general market that will be targeted by this firm. However, we shall focus on high-end real estate products. This is specifically so given that most of the low-cost housing in the country lack ostentatious fixtures and fittings.
As Low says, housing units that target low-end clients often lack fixtures such as water heater solar panels, one of the most important products that our company will be selling in the market (55). These segments of customers do not even understand what climate change means and the need to reduce carbon emissions into the atmosphere. The middle class and high-end customers know what climate change is and appreciate the need to use sustainable energy sources. They appreciate the importance of solar energy and will be willing to spend money on fittings such as solar panels. Real estate developers are keen on putting up houses with solar water heating panels. They also put up solar panels for lighting and running electronics as a way of cutting down the cost of electricity. They know that these are some of the factors their customers will focus on making purchasing decisions.
Identifying the Target Market
After selecting the appropriate segment, the next important step is to identify the target market. In our new company that sells solar panels, we will need to identify a group of customers that makes the most sense doing business with in the real estate. According to a survey conducted by Boxwell in the United Arab Emirates, the majority of the homeowners often purchase their houses from real estate developers (43). The middle class and the high-end customers prefer purchasing homes other than getting involved in the construction. As such, the target market will be the real estate developers in the country. The cities of Dubai and Abu Dhabi will form the initial market before expanding to other emirates within the country.
As such, developers in the two cities will be the primary targets for this firm. Through our initial market survey, we were able to establish that leading real estate developers in the country often prefer purchasing most of the fixtures and fittings from the manufacturers directly to cut down their costs. As such, this firm will target mid-sized and upcoming real estate developers in the country. This company will also target individual homeowners who may want to install or replace their solar panels. As a team in the management, we plan to find ways of adding value to our products to help in attracting large real estate developers who are currently picking their products from the suppliers directly. Adding value to our products will make it unique from those purchased directly from the manufacturers. The initial target market of mid-sized and small real estate developers will help this firm to achieve initial growth and earn revenues that will be used in expanding its operations.
Identifying the Positioning
At this stage, the firm has identified the target market that it shall focus on once the operations begin. The next important marketing process is to identify the appropriate positioning strategy that will be used. As soon as this firm starts its operations in the market, it will be necessary to ensure that its brand occupies a specific place in the minds of the targeted customers (Punzel 87). Our brand must be distinguishable from other brands offering the same products. Our target customers are the rich and middle class who are sensitive to the environment and are keen on doing their part to protect the environment. As such, our product will be positioned on two premises. The first premise will be a luxurious product that meets the needs of high-end products.
The additional value that we intend to add to the product is purposefully meant to make it more luxurious than when it is used as it is from the manufacturers. Our brand will be emphasizing in class. The entire system will not only be providing electricity and hot water to the housing units but also add unique decoration to these homes. There will be an additional value to the product that will make customers appreciate the need to purchase the product from our company. We will also be dealing with first-class products, and this will be reflected in our brand positioning. Our clients are very sensitive when it comes to the quality of the products they purchase. As such, our solar panels and its system, and the water heater solar panels will be of very high quality. This will be reflected in the manner in which the products shall be positioned.
The second premise will be on environmental conservation. These customers are sensitive about the issue of environmental conservation. They can afford to use fossil fuel, but they are committed to fighting climate change. As such, they will be more attracted to the brand if it is positioned as one keen on protecting the environment. Our products will be promoted as those keen on protecting the environment. The high-quality system means that wear and tear is not a common problem with our products. Those who use our products will be assured of their longevity, which would translate to a limited amount of wastes resulting from them.
As Valentin says, some of the materials used in making solar panels may be environmentally hazardous if not properly disposed of (38). The more one is forced to replace the entire system or part of the system, the more the environment will be polluted by these wastes. However, the long-lasting systems sold by Dubai Solar Panel Dealers Limited will enhance the conservation of the environment. This is besides the fact that the solar panel itself reduces the use of fossil fuel. We also intend to position products as being safe to use both domestically and commercially. For those who purchase our products, there will be free installation. For the first two years, maintenance will be offered at no cost. However, in subsequent years the installation will be done at half the market price. Our experts will ensure that the system poses no threat at all to the home or industrial users. We believe that this positioning strategy will help this firm gain a competitive edge over the existing rivals in the market.
The Four Ps
Analyzing the marketing mix elements will help our team to understand factors that will influence customers’ purchasing decisions towards our products. It will also help us in determining how we can create a pool of very loyal customers as soon as we start operations in the market. Analyzing the product, price, place, and promotional elements will help our team to define an appropriate marketing strategy that should be used in once Dubai Solar Panel Dealers Limited starts its operations.
Product
The first element in the marketing mix is the product. As Boxwell notes, the product is what a firm offers to its clients in the market (29). Dubai Solar Panel Dealer Limited will be offering three different categories of solar panels in the market. The first category will be solar panels for domestic users. This is one of the main products of this firm and it is estimated that it will have the biggest market. The solar panel for domestic use is becoming popular in the United Arab Emirates and our team estimates that there will be impressive sales once this firm starts selling this product. The figure below shows solar panels already fitted for domestic use.
The second category of the product that this firm will be selling will be water heating solar panels. Many homes are currently using electricity to heat water for domestic purposes. The use of electricity is expensive and may not be sustainable in the long run given the unreliability of hydroelectric power in the country. These panels will be a perfect alternative. Once installed, the only cost that the user shall incur is for maintenance. The figure below shows the product after being installed for domestic use.
Companies in the United Arab Emirates heavily rely on fossil fuel and hydro-power to drive their engines. However, the sustainability of these two sources of energy has been put to question. Firms are now under pressure to find alternative sources of energy. Solar energy has come out as one of the best sustainable sources of energy, especially in countries with reliable sunlight throughout the years. Many firms are now setting up solar power plants to help them generate power to supplement other sources of energy. Our company will be selling them the solar panels and other installation equipment to put up such systems. The figure below shows solar panels set up for industrial purposes.
The three different categories of the product discussed above will form the main product portfolio within our company. In each of the three categories, there will be fixtures and fittings to help in the setup. Our firm will be selling the entire system. For those who need parts of the system for repair and maintenance, they will get them from the firm. Our team of experts will be responsible for fixing the system, at no extra fee, once the customer makes the purchase.
Price
Pricing is another critical component of the marketing mix that defines the purchasing decision of the customers. The purchasing strategy is often based on the positioning approach that the firm takes in the market. As mentioned before, most of the products offered by this company will be positioned as high-end products that attract premium prices from the customers. As such, the firm will charge its products at a price slightly higher than the average market price. Each product will be priced differently based on size and purpose. According to Punzel, when charging premium prices, a firm must ensure that there is an additional value that the product offers which distinguishes it from other products in the market (48).
This will be the first and one of the most challenging assignments for our team once this firm becomes operational. Trying to find how to add value to the solar panels or the entire system may not be a very easy task given that the product is not manufactured by our company. However, our team has already received possible suggestions that we intend to pursue and we believe they will create the difference we desire. As a firm that will be charging premium prices for the products, it will be necessary to ensure that the product delivery method itself is also superior. The customers, every time they visit the facilities of this firm, should feel that they are valued. Through superior products and product delivery methods, the high prices that this firm will be charging on its products will be justified.
Place
The place element is another area that this firm seeks to create differentiation in terms of how it offers its services to the customers. Boxwell observes that place elements involve having the product in the right place and at the right time when the clients need it (38). Our products will be made available to the customers through two main platforms. The first platform will be the brick-and-mortar stores that will be put up in the cities of Dubai and Abu Dhabi. This firm will set up retail stores in these cities to allow customers to come and inspect the products before making the purchase. The stores will be strategically located, specifically in areas where there is high real estate development. Low advises how brick-and-mortar stores are planned often determine the likelihood of a customer to make a purchase (81). Carelessly planned stores may not attract premium prices from customers. We have a plan in place to ensure that our store plan will reflect the positioning strategy that we have embraced.
The second platform will be online selling. The United Arab Emirates has one of the highest penetrations of smartphones in the region. Many people now rely on their phones and laptops when they want to look for a product on the market. Most of these people also make their purchases in the online platforms to save them time. Most of the current rival firms are not offering their products on the online platform. As soon as this firm starts its operations, there will be an active website where customers can visit, view the available products and their prices, and make a purchase. They will be allowed to make online purchases using various mobile and online payment methods. Once these customers have paid for the product, our sales agents will physically deliver the product to the place chosen by the customers. We believe that this approach will help out the company to gain a competitive edge over the competitors.
Promotion
Promotion is the fourth and very important element of the marketing mix. According to Swain and Jägerskog, reaching out to the target customers and informing them of the existence of the new firm and its products is very important (61). In the section above, the positioning strategy that will be used was discussed. The message will be passed through an effective marketing strategy. Dubai Solar Panel Dealers Limited will need to convince the target customers that it has the best quality products at the most reasonable price possible. It must make the customers believe that it offers high value in the market. For this firm to achieve the intended success in the market, the following are the promotional issues that our team will focus on once we start to operate.
Societal marketing philosophy
Companies that were operating in the market before the Second World War did not have a problem selling their products in the market. Competition in the market was relatively slow and their main concern was to manufacture products that would meet the huge demand in the market. The marketing philosophy orientation at that time was production. They aimed to produce as much as possible because they were guaranteed the market. During and soon after the war, sales orientation became popular. The focus of firms shifted to sales as they tried to increase their profits.
Firms made efforts to ensure that as much of their products as possible were sold in the market. In the twentieth century, the competition started becoming stiff and firms had to embrace marketing philosophy as customers became more demanding. As such, firms started focusing on how to meet the needs of their customers while at the same time trying to achieve organizational objectives. In the twenty-first century, the societal orientation of marketing has become the only way of survival. It requires firms to not only meet the needs of the customers but also take into consideration societal needs. It is this approach of marketing that Dubai Solar Panel Dealers Limited will embrace.
This firm will conduct market research to understand what current homeowners expect when purchasing solar panel systems. Our team of experts will also conduct scientific research- with the help of other technocrats- to try and determine the environmental impact of solar panel systems. With the knowledge gained from the research, our company will strive to deliver a product that meets the needs of the customers in the best way possible while at the same time protect the environment. In our promotional campaigns, we intend to inform the customers about how our products work to protect the environment. We will remind them of their commitment to environmental conservation and what we as a company are doing to help protect nature. We will inform them that this company is not just interested in profits. It is keen on meeting their needs in a way that is sensitive to the environment. Achieving both goals at the same time may indeed be challenging. However, we are committed to going beyond our current capacities to achieve this goal.
Sales promotion
Dubai Solar Panel Dealers Limited is a new company that will heavily rely on sales to enhance its sustainability in the market. The management will come up with various sales promotion strategies to ensure that the rate of stock turnover is as high as it possibly can be in this competitive market. One of the ways of promoting sales will be the after-sale services that we shall offer to our customers. Currently, most of the rival firms do not offer free installation of the system. However, our company will grant customers free installation of the solar system once they make the purchase. This offer is intended to entice the customers. All the customers of our solar panels are granted a warranty of 12 months.
Within this period, this firm will repair the system and make any necessary replacements as long as there is no physical damage or deliberate electrical damage to the system. It will be a clear message to the customers that our firm is not just interested in quick profits but also in creating a long-lasting relationship with the customers. As mentioned before, our team is committed to creating additional unique value to the products that it will be selling in the market. The uniqueness of the products will help in attracting more customers to purchase the product. The other approach that the marketing team will use to promote sales is to hire sales agents. These agents will physically visit various construction sites and offices of real estate developers and try to convince relevant officers that our product will offer them high value. These sales agents will also visit various homes that are yet to be fitted with solar systems and try to sell our products to them.
Advertising
We intend to invest heavily in advertising. Customers must be made to understand that our firm exists in the market. Initial advertising will primarily focus on promoting the brand. Currently, there is no one other than our team members and close associates who know that we do exist. High-end customers highly value brand. They prefer purchasing a product from well-known brands. As such, the investment will be made to create awareness about our brand. The firm will also promote the products offered under this brand. The quality of our products and the unique value that they offer to the customers will be brought out in our promotional campaign. In our advertising, we will remind the audience about our commitment to the environment and the role that our company will be playing to conserve our environment.
Valentin advises that a firm should carefully select an appropriate medium of reaching out to the target market when advertising (90). Dubai Solar Panel Dealers Limited will invest in mass media marketing. We will majorly use television and radio advertisements to reach out to the customers. Our company will not ignore the importance of social media marketing given the high number of people living in the United Arab Emirates who rely on social media for communication purposes. We will mainly use Facebook, Twitter, and YouTube to reach out to the target audience in the market. Using both the social media and mass media to reach out to the audience in the market will be appropriate because of the segmentation approach used. The market was segmented based on financial capability, not age. As such, the medium used must target both the elderly population and young people who make up the target market.
Public relations
According to Swain and Jägerskog, a firm can only survive in the market if it maintains positive public relations (19). The society not only offers a firm the customers it needs but also the employees, the suppliers, security, and many more. It is, therefore, critical for our company to make a concerted effort to ensure that its relationship with the public remains positive. This positive relationship will be achieved in various ways. We intend to ensure that our products or general operations do not cause any significant negative impact on the environment. The company is built on the premise of protecting the environment. That will be the primary aim of all our activities. We also intend to ensure that our operations or products do not cause any negative social impact on society.
We believe that we shall add value to the society through creating value to the residents in terms of employment opportunities and other benefits. Most of our employees will be residents. This approach of hiring human resources is meant to ensure that the firm gets local support from the community. It is expected that misunderstanding might arise between the firm and various stakeholders in society. In our team, some experts will primarily be responsible for public relations. In such cases, they shall act swiftly to address the misunderstanding and restore positive relations between our firm and the affected stakeholders. Our corporate social responsibility will also be designed to maintain a positive relationship between our firm and the public. Our main programs will involve environmental conservation and helping the less fortunate in our society.
Implementation and Control of the Marketing Plan
After developing the marketing plan, the next and very important step is to implement it to achieve the desired objective. Low notes, one can have an excellent plan, but if it is not executed properly, then it may not be possible to achieve the expected outcome (41). The implementation of the plan will be done by the owners and the employees who will be hired. Given that the plan is already drawn, the management will need to identify those who will take part in undertaking various activities. There will be five different departments each with specific duties. The departments will include marketing, finance, human resource, procurement, and risk management. The plan that has been discussed in this paper focuses primarily on the marketing department. The marketing manager will have a team of employees to work on different tasks. The department will have different units. The units will include sales, advertising, public relations, and marketing research.
The sales department will be responsible for controlling all the sales activities. The department’s main goal will be to ensure that there is a high rate of stock turnover. The sales agents will work in this department. It is the department that will be responsible for delivering the products and installing the system once customers have made the necessary payments. The sales manager will be directly answerable to the marketing manager. Advertising is another unit within this department.
It will be playing an important role in creating awareness about the firm’s brand and its products. Through the funding that it will get from the finance department, this unit will develop promotional campaigns that will be used to reach the customers. The unit may hire experts to help it in developing television and radio commercials. Once the commercials are developed and approved by the marketing manager, the head of the advertising unit will ensure that they are delivered to the target audience through the mass and social media platforms. This unit will work closely with other units to ensure that what customers are promised is what is delivered to them.
The public relations unit will be responsible for all the activities relating to the general public. Of particular interest will be to maintain a positive relationship between this firm and the general public. Employees in this unit will be keen to gather any complaints in the social and mass media or any other source relating to the company. Before addressing any of these complaints, the issue must be brought to the attention of the marketing manager by the unit head. If the marketing manager considers it appropriate to involve other authorities, then the general manager or other departmental heads will be involved.
The marketing manager will then instruct the unit head on how to respond to the issue. The unit will ensure that any misunderstandings or issues of concern to the public are addressed in the most effective way possible. The marketing research department will be responsible for all the activities involving research in this department. Monitoring the new market trends, identifying the emerging opportunities and threats, and developing effective plans that can be used to counter negative forces in the market are some of the responsibilities of this unit. The head of this unit will work with other units and other departments to ensure that solutions to major concerns in this company are based on research. It will receive regular funding from the finance department based on the research that is needed.
Conclusion and Recommendations
Dubai Solar Panel Dealers Limited is a new company that will be selling various solar panel products for both domestic and commercial use. Our team has conducted market research and is aware of the existing gap in the market within the United Arab Emirates. We intend to offer premium products that will primarily be targeting high-end customers, especially those who are keen on cutting down their energy expenses and protecting the environment. As a new firm that has never been in operation in any market, this company will be relying heavily on market research and strategic alliance with partners such as suppliers and organizational buyers to achieve the intended success. The firm will use both mass and social media platforms to reach out to the target audience and to achieve the desired goals. The management appreciates that there are challenges that this firm will face. However, its success will depend on its ability to overcome these challenges. The following are the possible recommendations that the management will need to put into consideration.
- In its initial operations, the company should focus on a specific market segment that can meet its needs in the best way possible. This will avoid focusing on a broad market that has limited returns for this company.
- The management of this company should focus on both mass and social media marketing because of the nature of the target market. Mass media will help in reaching out to elderly customers while social media will help it reach the youth.
- The firm should create a reputation as one that offers very high value as soon as it starts its operations. This should be reflected in the quality of products and how customers are handled.
Works Cited
Boxwell, Michael. Solar Electricity Handbook: A Simple Practical Guide to Solar Energy: How to Design and Install Photovoltaic Solar Electric Systems. Greenstream Publishing, 2012.
Low, Linda. Abu Dhabi’s Vision 2030: An Ongoing Journey of Economic Development. World Scientific, 2012.
Punzel, Thomas. Marketing Plan for the Launch of Traveladviser.net. Grin Verlag, 2013.
Swain, Ashok, and Anders Jägerskog. Emerging Security Threats in the Middle East: The Impact of Climate Change and Globalization. Wiley, 2016.
Valentin, Erhard. Business Planning and Market Strategy. SAGE Publications, 2015.
Westwood, John. How to Write a Marketing Plan. Kogan Page, 2013.