Introduction
Marketing has become an integral part of modern organizations. The Dubai World Central (DWC) is an integrated state organization that conducts a variety of business operations in the local, regional, and international markets. Its activities include the management of air traffic, logistics, and the development of leisure facilities, among others.
The hub aims at tapping the eight integrated economic facets as it offers the most important urban transformation of the region into an economic power, facilitating trade, and transport, which are the key drivers of Dubai’s growth and government’s excellence. A robust marketing strategy for such an expansive economic driver is vital since value creation is paramount to the success of the establishment. This paper aims at providing an elaborate report on how the DWC marketing function is achieved to create and establish customer value and relationships.
Current Situation Analysis
Economic leadership closely correlates with global trade dynamics and patterns. In this regard, Dubai exposes itself to numerous vagaries of world trade, especially with its open economic structure. Being a significant node in global logistics networks, Dubai offers DWC an already established system that will suit its operations. With the growth of the world population and the integration of Asian nations in the global economy, the demand for transportation, aviation, and logistics continues to grow rigorously.
Microenvironment
The internal environment is an important aspect of any organization. It determines the strengths and weaknesses of the business. The internal settings also have significant effects on the external business environment. The DWC’s microenvironment is a strong and unshakable one, as it comprises eight business districts that aim at integrative operations. The organization is an all-encompassing facility that addresses aviation, leisure, residential, and logistic functions, among others, in its areas of operation. The Airport facility is currently operational. This accomplishment is the first phase of the project.
The aviation facility can handle over 600,000 tons of cargo in a year. It has been programmed to operate in a 24-hour economy. At present, the airport has over 60 planes besides a fuel firm and fire station. It also runs various line maintenance units that ensure proper progress of activities. Many organizations that operate at the local, regional, and international levels will remain in a position to reap thoroughgoing benefits since the firm is focused on increased cargo capacity and passenger handling in the near future. The expansion plan will also allow the handling of more aircraft. This situation will ensure improved efficiency; hence, the improvement of the economy. With this enormous strength, the Al Maktoum International Airport is determined to provide the surest aviation and logistics solution to the growing Dubai aviation industry.
Besides, DWC will offer diversified services, including leisure, accommodation, travel, and business exhibition platforms, all of which are interdependent. The business park district offers first-class commercial buildings and offices whose central location aligns with the DWC goal of becoming the leading center of commerce, logistics, and aviation industry huddle. The design of the business park focuses on facilitating business at the entire hub. It is endowed with car parking ratios besides ample and conducive space for fast and convenient transactions. Additionally, the unrestricted market and promising contract conditions make the business environment suitable for the development of commercial operations.
The business park is designed to encompass high-end facilities such as office buildings that are tactically positioned at the entrance of DWC. This set of circumstances ensures quick links to major cities such as Dubai and Abu Dhabi, among others. Furthermore, the park is well structured to promote flexibility that offers a chance for companies to manage their operations in an enormous facility. The open plan that is adopted by the facility is a clear indication of possible extensions in the near future.
The state-owned organization has adopted a multimodal logistics strategy that provides access to the UAE’s main transport and aviation systems. There is also an anticipated collaboration with the Al Maktoum International Airport and Etihad railway network, among other transport systems. This strategic location provides the DWC with unmatched connectivity and flexibility. Customers have all the reasons to love DWC’s logistics services.
The DWC, together with the Ali Free Zone, has collaborated to establish a flexible and unrestricted business environment with a view of providing opportunities to diverse businesses across the globe. The strategic positioning of the DWC provides fast-cycle logistics businesses with the necessary infrastructure, space, and access to facilities. The business settings make the DWC an appropriate economic hub for local, regional, and global establishments that are associated with its operations. The management of the flow of activities in the facility is facilitated by various infrastructures such as warehouses, integrator mechanisms, and cargo forwarders, among others. In addition, the district offers a Free Zone with an unrestricted capital transfer and nil taxes.
Macro-Environment
According to Itani, O׳Connell, and Mason (2014), a business macro-environment encompasses the factors that exist outside the organization, which affect its plans to achieve its goals. The factors in the macro-environment include those forces that the organization has little or no control over, such as political, legal, economic, technological, and socio-cultural factors, among others. Political forces within which the DWC operates, being a government-owned entity, provide a favorable climate for the organization to thrive (Itani, O׳Connell, & Mason 2014). For instance, the Free Zone initiative creates room for the logistics and aviation businesses to enter and venture in.
The government of the UAE acknowledges the global importance of the hub as an important hub for the transportation business. In this regard, it formulates policies that affect the industry favorably. For this reason, the future for DWC is very bright. In addition, the economic factors surrounding Dubai World Central are inevitably promising as the hub is located strategically in a region that is renowned for a stable economy. Dubai is a tourism destination attracting people worldwide (Goyal Wasan & Tripathi, 2015).
With the completion of the Al Maktoum International Airport, DWC stands to attract more investors and travelers to access the many business opportunities available at the expansive hub. The world’s population continues to grow rapidly. As the number of expatriates continues to amplify, there is a corresponding increase in the number of travelers to Dubai. This situation will boost the profitability of the economic hub. Additionally, technological factors are vital forces that determine the success of any organization, particularly in the contemporary world.
DWC is at the front line in embracing technology in all its operations. For instance, the organization adopts the Al Maktoum International Airport has devised a smart electronic system to accelerate the processing of entry permits for local commodities to and from the free zone. In fact, DWC seeks to embrace technology in its eight districts as it aligns itself with the government’s ambition to transform Dubai into a smart city. The firm is the first free zone in the region. As a result, it has taken the initiative to encourage its customers to enter the zone through online registration, which is easier and convenient. This strategy stands to pull many businesses into the hub (Itani, O׳Connell, & Mason 2014).
Target Market and Positioning
Dubai World Central targets customers within Dubai, Middle East, Southeast subcontinents, and Africa markets. Itani, O׳Connell, and Mason (2014) reveal that the location of any establishment is a key determinant of the success of its business endeavors. In this context, DWC is strategically situated close to related facilities such as the Al Maktoum International Airport and Free Zone. This business position allows the organization to deliver wide-ranging services and products in the free zone business environment.
Due to its adjacent location and direct infrastructure connection with the Jebel Ali Port and Free Zone through the Dubai Logistics Corridor, the DWC seeks to facilitate the movement of commodities from air to sea and vice versa. The establishment is first of its kind, creating a convergence of businesses and people from within Dubai and the international businesses. Being one of the focal trading hubs in the world, the firm boasts of the advantage of its mid-way location between Asia and Europe.
As a result, transport has become an integral role that the country has invested in. DWC finds itself in an already established environment where the aviation business has been experiencing exponential growth even during the 2008-09 economic crises. Given the documented history of positive performance and favorable macro-environmental factors, DWC’s future ambitions are well insured. The busy cargo and passenger transportation business in Dubai provides a feasible business opportunity for the DWC (Itani, O׳Connell, & Mason 2014).
SWOT analysis
SWOT analysis for a company is a critical examination of the strengths, weaknesses, opportunities, and threats that affect its operations. The strengths and weaknesses of the organization usually arise from its internal business settings that affect its operations. However, opportunities and threats occur within the external settings that involve competition, consumer behavior, and market trends, among other factors.
Strengths
DWC boasts of various internal strengths. The integration of its eight districts, including residential, leisure, accommodation, Business Park, the Al Maktoum International Airport, among others, the establishment success is highly achievable in the long term. DWC utilizes tech-savvy product development as it seeks to become the leader in goods handling.
The establishment of the Free Zone, the first-ever in the region, provides the firm with a competitive advantage as it naturally attracts logistics and aviation businesses with zero taxes. This non-restrictive entry into the DWC free zone is a vital driver of economic growth. Each district employs excellent customer relationships and value creation with a view of achieving the ultimate ambitious goal of the government, establishing a smart city (Goyal Wasan & Tripathi 2015). The strategic location for DWC in what is geared towards becoming the leading global center of commerce and logistics and aviation center provides a framework for prosperity in the long-term.
Weaknesses
Dubai World Central opens up to a very competitive cargo business environment that has been in existence for many years, the leading cargo handlers FedEx. The hub is still under construction, costing the owner billions of dollars. The firm has a long way to go before it begins recording its first profit digits.
Opportunities
Dubai has lately become a feasible business destination for many global corporations. As a result, it provides a suitable business environment for the DWC organization. The country facilitates the global flow of goods, services, and people between the Asian and other continents. For instance, it is advantageously situated to favor business transactions in the Middle East, South Asia, and North Africa, among other global regions. The location of the state-owned establishment at the pivotal center for global logistics offers it an opportunity to accomplish its objectives. It further cements Dubai’s leading position as a logistics and trade hub (Goyal Wasan & Tripathi 2015).
In addition, the firm has an added advantage since the Jebel Ali Port is the only considerable container port in the region. Its linkage to Singapore, Rotterdam, and the Al Maktoum International Airport via the Dubai Logistics Corridor (DLC) minimizes time wastages and transport inconveniences. This situation accelerates the speed at which cargo moves from sea-to-air/air-to-sea. The firm also enjoys a number of trans-emirate transport systems that underpin its logistics objectives.
The network also provides unprecedented levels of connectivity, velocity, and top-level efficacy. With every skyrocketing demand for transportation, DWC ventures to help facilitate the flow of goods. Moreover, the state-owned firm has an opportunity to introduce various aviation services that will benefit a broad category of businesspersons and professionals, such as producers and aviation consultants, respectively.
Threats
One of the significant business districts is the Al Maktoum International Airport, whose operations began recently. The airport faces stringent competition from the established and experienced airports, including the enormous and busy airports. In addition, the airspace capacity for Dubai and regional players are far stretched as many players continue to flock the industry. With the Al Maktoum International Airport projections to handle more than 160 million passengers, it adds on the already saturated airspace. Reports also indicate that Doha and Abu Dhabi intend to open their own airports to service their national carrier among other airports. This move implies that customers who are currently utilizing the Al Maktoum Airport will shift, thereby reducing the number of flights operating there (Goyal Wasan & Tripathi 2015).
Marketing Mix Analysis and Recommendation for DWC’s Products and Services
Marketing is a process of exploration, creation, and delivery of value that the target market desires. In the rigorous wave of technological advancement, marketing has been revolutionized with the traditional marketing mix now elaborate on in the online platform. 4Ps in marketing mix refers to product, price, place, and promotion. The role of the marketing manager is to control the 4P parameters in an attempt to emerge victorious in the competitive aviation industry in the UAE. For an international business such as the DWC, online presence is crucial to cater to the expansive customer base that cannot be reached through traditional direct marketing strategies (Ramaseshan, Ishak, & Rabbanee 2013).
Online product policy is a key phenomenon, especially for service providers, including aviation and logistics, in addition to after-sales services. The merchandise entails the combination of goods and services that the organization offers to the target market. DWC has a proactive digital marketing forum whereby customers can purchase and closely follow up on their commodities and services. The organization operates an interactive website whereby information about its products is available. In addition, it provides diverse knowledge about the spaces to let, prices, ticket availability, and Business Park updates, among others. Since the DWC establishment is still under construction, the marketing management provides updates on the progress and completed areas (Ramaseshan, Ishak, & Rabbanee 2013).
Upon completion, the DWC hub is anticipated to handle sizeable volumes of cargo and passengers. Social marketing has become part of the 4Ps marketing mix. The platform calls for innovative strategies as it plays a crucial role in product awareness creation in the twenty-first century. To overcome both micro and macro-environmental constraints, DWC marketing management ought to aim at embracing unique product differentiation, such as offering low-cost luxury flights to attract demand.
The UAE aviation market is highly flooded. As a result, product differentiation is not an option if the DWC intends to thrive in a competitive business environment. The central location of the hub near the expected railway network headquarters and the Jebel port gives the firm a competitive advantage over both domestic and regional hubs. Dubai World Central integrates many districts that offer a one-stop-shop for its customers. For instance, for luxury travelers seeking accommodation and leisure, shopping among other products and services, DWC provides them with even extra services such as car parking, among other after-sales services. Information on these and other benefits ought to be available to customers for the organization to achieve success in creating customer value (Tălpău 2014).
Behavioral segmentation is considered important in the target market analysis to establish informed decision-making during product development and pricing strategies. For this reason, DWC will need to invest in extensive research with a view to digging for information and spending behavior of its customers. Quality services can only be provided by first establishing the customers’ needs and expectations. The management attaches immense importance to product planning to attract new customers and sustain the already existing ones. Product promotion is a marketing mix that the company acknowledges, and robust advertising initiatives are already in place (Tălpău 2014).
DWC employs both traditional and new promotion campaigns with e-commerce taking the center-stage to reach international markets. Direct sales are conducted within Dubai and in the retail outlets throughout the UAE. Telecommunication services are operational to facilitate feedback and inquiries. DWC is e-transformed with online presence given special importance. Social network marketing is an important aspect that the organization acknowledges as it has Twitter, LinkedIn, Facebook, and Instagram accounts to facilitate interactivity between suppliers, customers, support, and feedback (Tălpău 2014).
Conclusion
Marketing forms the top most important part of any organization as it is the outlet mechanism for attracting profitability. From the aforementioned, DWC being an integrated organization operating diverse businesses from a common ground, robust marketing initiatives have been employed to place the firm strategically above its competitors and to achieve the anticipated ambitions. The company has many competitive advantages as it obtains favor from the government, its strategic location, and the growth potential of the region as a whole. The environment in which it operates favorably provides thrust for the organization. However, it faces some challenges, particularly the stiff competition from established cargo handlers who have long been in operation. The future of the DWC hub remains bright as the firm seeks to become the leading cargo and passenger handler in the region.
References
Goyal Wasan, P & Tripathi, G 2015, ‘Revisiting Social Marketing Mix: A Socio-Cultural Perspective’, Journal of Services Research, vol. 14 no. 2, pp. 127-144. Web.
Itani, N, O׳Connell, J & Mason, K 2014, ‘A macro-environment approach to civil aviation strategic planning’, Transport Policy, vol. 1 no. 33, pp. 125-135. Web.
Ramaseshan, B, Ishak, A, & Rabbanee, F 2013, ‘The role of marketing managers’ commitment and involvement in marketing strategy implementation’, Journal of Strategic Marketing, vol. 21 no. 6, pp. 465-483. Web.
Tălpău, A 2014, ‘The Marketing Mix in the Online Environment’, Bulletin of the Transilvania University of Brasov, vol. 7 no. 2, pp. 53-58. Web.