Introduction
Organizational leaders need to consider the trends recorded in the local and foreign markets before making the relevant investment decisions. The selected product for this analysis is that of petroleum and the identified country is South Africa. The United Arab Emirates (UAE) remains one of the leading sources of this commodity in the Middle East. A proper marketing strategy will support the process and ensure that positive results are recorded within a short period.
Country and Opportunity Analysis
South Africa is currently one of the fastest growing economies in Africa due to the presence of favorable policies and conditions. In 2018, its gross domestic product (GDP) stood at 368.3 billion US dollars (“South African economic,” 2020). Its potential long-term economic growth stands at 3.5 percent (African economic outlook, 2020). With a population of over 57 million people, it remains one of the best destinations for marketing petroleum (“South African economic,” 2020). This African industrial hub requires different sources of energy to support critical sectors, such as transportation and mining. Citizens who have vehicles require petroleum to achieve their aims.
Target Market Analysis
A detailed analysis of this market can guide investors to make informed decisions. The economy of South Africa has been growing steadily at around 3-5 percent annually (“South African economic,” 2020). In terms of culture, the people are diverse and belong to different racial backgrounds, including whites, Africans, and the Dutch. The country is politically stable due to the presence of effective frameworks, voting processes, and citizen rights. The government utilizes the Constitution to support the implementation of laws that resonate with the needs of all citizens and companies. The market environment is free, competitive, and controlled in a fair manner.
Segmentation, Targeting, and Positioning: Competitive Advantage
In terms of segmentation, the marketers of petroleum need to identify specific industries and areas that could benefit from the product. The leading ones would include manufacturing, automobile and transportation, and construction sectors (“Analysis on South Africa’s petroleum,” 2019). The targeting process will focus on different customers in each of these sectors to meet their demands. The company will promote positioning in such a way that the intended petroleum products are of the best quality and resonate with stakeholders’ demands.
The level of competition is extremely high since there are various companies that purchase crude oil and market various byproducts to local customers. Some of the leading ones include Castrol, Azanian Oil Company, and PetroSA. These organizations have mastered the art of doing business and consider evidence-based approaches to meet their customers’ demands (African economic outlook, 2020). However, their presence should not deter the targeted investors from focusing on this market.
Competitors’ Strengths and Weaknesses: Marketing Strategy
The leading competitors in the selected field include Castrol, PetroSA, and Azanian. They all have similar strengths and weaknesses that any investor would need to take seriously. The major strengths include the presence of established networks across the country, improved brand names, strong customer bases, and the ability to meet the demands of more clients (“Analysis on South Africa’s petroleum,” 2019). The outstanding bottlenecks include the requirement to import crude oil, absence of sustainable business models, and industrial rivalry.
With this knowledge, it is evident that an international market approach is essential that focuses on the existing weaknesses to meet the demands of more customers. Since UAE is known for producing high-quality crude oil and subsequent products, the local company will venture in this country, attract more partners, and become competitive. However, the involved leaders will improve the marketing model continuously and consider the demands of more customers.
Differentiation Strategy
The concept of differentiation is appropriate and capable of supporting the delivery of high-quality products that meet the demands of more individuals. Cost leadership could be realized by reducing operational costs though continuous improvement and reduction of wastes in supply chain. With proper coordination and acquisition of petroleum from the UAE, the company can deliver it to more customers at a cheaper price. A focus strategy would also be appropriate to meet the demands of more drivers and manufacturing firms that rely on various petroleum products, such as clean diesel and petrol (“South African economic,” 2020). The aviation sector will also be considered to support the intended business model.
The application of international tools, such as the 4P marketing mix, will deliver positive results. First, the company should use competitive prices that are attractive and admirable to more customers. Second, the available petroleum products should reflect the image of the UAE and deliver the highest level of quality (“Analysis on South Africa’s petroleum,” 2019). Third, the intended marketing model should support more people in different parts of the country through proper promotional strategies. Finally, gas stations and refilling center should be opened in various urban and rural centers depending on the level of demand.
Conclusion
The above discussion has presented a summarized marketing plan for a UAE investor or company that intends to do business in South Africa. The above suggestions will minimize the negative implications of competition and streamline operations. The involved leaders will apply each attribute efficiently, monitor the existing challenges and rivalries in the petroleum industry, and introduce new improvements to support the realization of the intended goals.
References
African economic outlook 2020: Developing Africa’s workforce for the future. (2020). African Development Bank.
Analysis on South Africa’s petroleum market, 2019. (2019). GlobeNewswire. Web.
South African economic outlook. (2020). Focus Economics. Web.