Introduction
New investments often experience hardships while trying to penetrate a strange business market where competition and consumer profiles are still unclear. Since the operational techniques of a new investment are unfamiliar, the products are unique, the customer base is unidentified, and the market challenges are still unknown.
Thus, penetration and endurance of such businesses is often a challenging endeavour (Deffuant & Huet 2007). An emergent business venture must therefore consider a number of factors and develop a set of strategic actions that probably assist in the marketing of the new business.
United Arab Emirates is among the fastest growing middle-income nations where investors have identified suitable towns and cities to locate their lucrative modern businesses (Al-Sheikh 2011). Elegant state-of-the-art shopping malls are among the most appropriate business ventures that entrepreneurs have developed their investment interests in creating (Al-Sheikh 2011).
Using the PESTEL method and the 4Ps strategic audits, this report presents a marketing technique that a new shopping mall venture would adopt to manoeuvre in the UAE business market.
Overview of the new investment
Each business venture has its own developmental and planning strategy that includes the business infrastructural arrangement, business location, and business departmental arrangement (Vag 2007). The intended business establishment will have three main business sections or departments identified as the Kids Play Corner, Department Stores, and the Shopping Mall section.
The Kids Play Corner of the shopping mall is a strategic department that often allows children to have fun and entertainment as their parents explore the various business segments within the mall. Department stores section will be a strategic business department within the mall where each business ruining within the mall will have an opportunity to display its varied business products ranging from a number of consumer goods and services.
This is the mall section where a variety of products such as furniture, cosmetics, clothing, home appliances, and electronics would be available for the consumers to choose. The shopping precinct will encompass several outlets.
The marketing strategy for the Mall
Any emergent business investment must consider developing a strategic marketing technique that would allow its operations to commence and its business portfolio to dominate a market segment (Deffuant & Huet 2007). To respond to the increasing opportunities and the mounting challenges that would be eminent in the Dubai marketplace, a strategic planning for marketing the mall would be essential.
In any business marketing action, the variables of an effective marketing are the human capital, the product of the business, finance aspect of the business, the promotional techniques, the pricing strategy, and the marketing channels that include the marketing places (Goi 2009).
The strategic marketing plan of the intended mall will involve the inclusion of the 4Ps marketing model that will guide the development and marketing of the mall business. The 4ps marketing technique involves an understanding of the four marketing-mix elements or variables of effective business marketing that involve the business product, the price of the products, the promotional techniques, and the marketing place.
The products of the invention
Shopping malls normally offer a continuum of business products because they act as one-stop shopping centres to household goods and commercial products (Al-Sheikh 2011). The intended shopping mall is not unique in this aspect, but the mall will transform the product diversification to advanced heights.
The intended shopping mall will mainly concentrate on the state-of-the-art products that come from the local merchandisers and the importers. Consumer goods, commercial business products, clothing products, machinery, agricultural products, consumables, technological products, and electronics will form the foremost merchandize for the shopping mall.
The variety of the products will form a stable platform for attracting all forms of consumers with varied abilities and preferences (Hussein 2009). With the greatest focus being the trendy goods and technological products, the shopping mall will be able to attract millions of youngsters who often admire the trendy products.
Efficient branding, quality control measures, proper packaging, and offering of warranties on some products will be some strategic actions of adding the value of the products.
The price of the products
One of the most important elements of the 4Ps marketing strategy is the price of the goods or services that a business segment seeks to produce or distribute to the consumers. In market penetration, an emergent business invention must consider the number of pricing techniques that are likely to impel shoppers or buyers to purchase the offered products or use the services provided.
Pricing is the approach of designing the costs of products or services (Al-Sheikh 2011). Since the intended shopping mall seeks to create awareness, penetration, and reputation of its merchandize and services, the pricing technique will focus on the penetration marketing techniques.
As a competitive advantage, the business will consider selling its products at relatively lower prices compared to the prices of its established competitors. This approach would attract the middle-income earners who often prefer fair-prized products (Al-Sheikh 2011). Based on the 2010 population statistics, majority of the Dubai nationals are middle-income earners who spend on relatively cheap household goods.
(This figure explains the need for low pricing while the product is still marketable)
Promotional technique
The third important variable of marketing under the 4Ps marketing model is the concept of business or product promotion (Muga & Santamaria 2010). Business or product promotion is one of the most important elements of marketing mix where entrepreneurs or business inventors establish various strategies of advertising and publicising their products, services, or brands in the marketplace.
Emergent business ventures must understand that any new idea or innovation on a product or service requires a comprehensive technique of ensuring that the consumers understand the business portfolio (Muga & Santamaria 2010).
The intended business invention seeks to use a continuum of promotional techniques to make public relations, exhibitions and publicities. Advertising-the intended business will employ an advertising strategy based on the old advertising model and the modern advertising business model.
Concerning the traditional advertising strategies, the intended business will use televisions as the effective traditional marketing instruments (Goi 2009). Commercial broadcasting is still an imperative marketing technique where televisions play an important role in promoting new business ideas and emergent businesses.
The intended business will strategize a marketing plan where advertisements of business promotions will appear during the intervals of important broadcaster programs and significant bulleting durations to enhance public relations.
Televisions are important advertising instruments because they allow marketers to air their advertisements on a broad public spectrum with limited bias over accessibility (Varadarajan 2010). Televisions are entertainment tools found in most households because of their easy accessibility and availability, and there programs pull family members together.
Through a digital marketing platform, the intended business venture will utilize modern technological elements to create public attention and public awareness depending on each target group. From a broader marketing platform, the shopping mall will have a general website where all marketing techniques, product pricing details, and daily news concerning new products will be available. An independent website allows the customers to find specific information concerning a business venture (Varadarajan 2010).
Social media platforms are important marketing tools of the modern businesses. The shopping mall will target famous social media platforms such as Facebook, MySpace, Twitter, Google+ and Netflix to create a stable marketing foundation that will target the youth population and other teenagers.
During some specific occasions where a pull of customers may be available, the shopping mall marketing team will employ field promotional techniques such as roadshows. During the roadshows and field marketing, general exhibitions, discounting of products and explanations concerning the business portfolio and its product will take place.
Price reduction and discounting techniques are prominent mix marketing techniques that allow marketers to make more sales and promote products effectively (Ergen 2011). Products that demand quick selling and disposal to the market such as household consumables will receive high discounts and electronic goods will be on instalment-purchasing plans.
Where applicable, field marketers will use direct selling, wholesale selling, retailing, and peer to peer selling. Such promotional techniques will be a strategic move towards an effective market penetration and survival.
Marketing place for the venture
One of the most important variables of marketing found in the 4Ps marketing model that is essential in the marketing mix is the place of marketing the products or services. The place concept of the 4Ps marketing model involves marketing strategies such as the designated distribution channels, the transportation modes, the warehousing facilities, and the techniques of inventory control.
Since all the variables of marketing normally work concomitantly, the intended shopping mall business will have a mega storage facility known as the mega warehouse that will stock the essential products of the mall (Satit, Tat, Rasli, Chin, & Sukati 2012).
This warehouse will create a space to stock a variety of products and brands, it will allow branding and rebranding, necessitate quality control measures, and enough stocking. The main marketing will occur within the mall premises where marketing strategists of promoting products will determine the daily marketing strategies. A transport system is essential for marketing the mall products and services.
The shopping mall will use specific locomotive facilities branded in the titles of the company to transport products to its venders, carryout field promotions, and transport the purchased products to the actual buyers. The mall will contain a spacious business centre where a display of the products will be easy and an efficient display area will allow the marketers to arrange the systems effectively.
Special offers, direct deliveries, gifts, frequent promotion, and endorsements, are essential place variables that often create an effective awareness (Satit et al. 2012). In the subsequent months of operation, the dynamic model of investigating the consumer behaviours and perceptions concerning the products and services offered will be very imperative in accessing the overall business progress of the shopping mall.
The dynamic business-marketing model will help the shopping mall management to investigate the continued progress and success of the business and renovate new strategies of amplifying or improving the services and products that requires amendments.
The PESTLE model in the invention
While considering the business idea of a shopping mall in the United Arab Emirates especially within the Dubai city, the PESTEL business model is vital to establish the critical aspects that underpin the intended business. The PESTLE business model is a strategic analysis business instrument that investigates the Political, Environmental, Social, Technological, Legal, and Economic that are likely to affect a business initiation and progress (Watts & Dodds 2007).
Apart from the internal marketing strategies that are likely to affect the initiation and progression of a new business venture such as a shopping mall the PESTLE model contains important external variables that have a direct influence on the business.
The PESTLE model often describes the process of environmental scanning to identify the political factors, the environmental concerns, the social aspects, the technological issues, and the legal and economic issues that influence the development and progress of a business (Watts & Dodds 2007). The intended shopping mall business depends on all these variables to manoeuvre.
Political matters to the business
Dubai is gradually becoming the global focus for new inventions, modern technologies, and innovative business due to its welcoming political environment. The Dubai government has often been willing to support investors especially the internal business entrepreneurs who promise to innovate businesses that would offer employment opportunities and boost the national revenue.
The political development of Dubai has been tantalizing with significant progress eminent in its interaction with other countries in joint businesses and its reforms in the business policing. Internal investors have an advantage in undertaking or establishing local business ventures in Dubai because the government has huge tax waivers on the local entrepreneurs.
The Dubai government has limited restrictions on the commercial imports and this will allow the business to acquire goods from various suppliers within Dubai and beyond borders. The swift transport links, the enhanced communication systems, the improved trade associations, and the internationalization efforts of the Dubai government predict a successful endeavour.
Environmental concerns to the invention
One of the greatest components of the business model that determine the survival of a new investment in a new marketplace is the actual environment in which the business carries out its routine operations (Watts & Dodds 2007). In environment, analysts consider examining the success of a business venture in terms of the surrounding elements that make an emergent business successful.
A market population is an important variable of an environment, which influences a business in terms of market growth and sales (Watts & Dodds 2007). The population of Dubai nationals is growing rapidly and the youth population that often ascribes to lavish and state-of-the-art ventures is at pinnacle.
Business relies on the people who make up the consumer population and the client groups. Security is another significant variable (Watts & Dodds 2007). Dubai has well-secured town zones with elegant streetlights that light-up the entire town, consequently making the targeted marketplace a safe environment. The rising business competition within the Dubai towns makes UAE a reasonable investment centre.
The social aspect to the business
The social life of the dwellers in a targeted market largely determines the reception and progression of a new business in a new environment. As a microeconomic aspect of determining the progress of an emergent business, the social dynamics of a targeted market place is a determinant of a business.
According to Singh (2012), the influence of the societal attitudes or the demographic trends in a targeted marketplace is often indispensable given its repercussions market opportunities, perceptions of the shoppers, and on the overall strategy of the business.
The educational status of the individuals, the levels of civilization, the cultural influence to the population, and the gender aspects are social components that frequently influence the survival of a new business (Satit et al. 2012).The idea of investing in shopping mallsin Dubai is renowned and has already received a great credence.
Therefore, the intended shopping mall business may not face perception problems, non-civilization issues or cultural problems.
The technological aspect to the business
Technology is a modern concept that seems to influence the success of businesses in their conventional locations and in their new positions. In the progression of a business, technology is both an internal and external variable that determines the successfulness of a new investment (Karakaya, Badur, & Aytekin 2011).
Despite the extensive growth in the new technologies that are moving business in Dubai, the shopping mall aims at installing sophisticated business technologies that will boost product value, service efficiency, the innovation of the employees, and the overall business value.
The use of modern electrified staircases, sophisticated car parking sheds, dazzling electronic stair lifts, modern surveillance systems, the geographical positioning locators, and the store search technologies will enhance service delivery within the mall (El-Adly 2007).
The shopping mall will seek to integrate the locally assembled technologies and the imported technologies to achieve optimum performances in the customer care, accounting services, internal mall movements, children play section, security department and in the communication and coordination departments.
The legal concept on the venture
All nations across the world have rules and regulations that govern the people and their social and commercial activities within the boundaries (Karakaya et al. 2011). The most important business component that determines a business success in a marketplace located in a defined nation is compliance with the laws and policies of the state.
Dubai is an independent state with rules and regulations that govern business operations and investments. The amended legislation of Dubai concerning foreign investments and indigenous investments seem to favour the Emiratis especially those who are seeking employment or those who want to invest in the non-oil sector (Al-Sheikh 2011).
Dubai is currently discouraging overreliance on the crude companies and non-oil companies seem to receive substantial government support from the Dubai government. Compared to its competitors, the intended shopping mall wants to employ a team of legal experts and advisors to develop policies and regulations that match the business system and work concomitantly with the legal stipulations of the UAE.
The economic concept to the business
Finance is the greatest mover and determinant to the success of a business. Despite being an emergent business with a limited financial stability compared to the veteran business tycoons own the Dubai Mall and other mega business malls; the intended shopping has strategized several means of financing the business.
According to Ergen (2011), the financial stability of a firm determines the success of its operations, the contentment of its workers, and the satisfaction of its consumers. Although far from making lucrative advances in its operations compared to its close competitors such as BurJuman, Festival Waterfront Centre, Mercato Shopping Mall, and Mirdif City Centre, the intended shopping mall shall have enough financial support from the major banks of the UAE.
The business will remain insured since its initiation, will seek willing business partners, and will liaise with the government funding systems to financial assistance when necessary. Prospectively, the shopping is optimistic that the civilized Dubai nationals will embrace the idea wholeheartedly.
Business development strategies
The intended shopping mall is viewing business from a prospective and optimistic outlook. The shopping mall will shift from it proposed penetration techniques towards market expansion. In three to four years to come, the company seeks to invest smaller shopping malls around the rapidly growing sub-urban towns of Dubai.
Singh and Prashar (2013) state that the demographics trends of the Dubai nationals are changing rapidly as the government policies of establishing a strong non-oil sector continue to dominate the recent UAE changes (Singh & Prashar 2013).
The future of the Dubai nationals is gradually reshaping from reliance on oil revenues to technological ventures and agriculture. With such reasonable trends in demographics, the Dubai population will soon surge around the rural areas and plummet within the cities.
From a strategic planning perspective, the shopping mall will focus on expanding the mall business around the rural areas to bring about a new era of urbanization and industrialization of the countryside zones.
Conclusion
The intended shopping mall business is among the most lucrative ventures that are affecting receiving attention across the United Arab Emirates. The intended shopping mall will use strategic analysis tools such as the 4Ps marketing model and the PESTLE business environment model to identify the major concerns and opportunities that are likely to influence the initiation and the future operations of the business.
Consumers not only need to shop in malls that have diverse products, but they also admire to shop in malls that have acknowledged the essence of modern technologies and changes in the corporate world. Improving the status of the products, offering unique product promotions, and analysing the competitors, are essential business variables that determine an effective business initiation and progression.
Additionally, understanding the political, environmental, social, technological, legal, and economic issues of business helps inventors to strategize.
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