External Environmental Analysis
Marketing Plan Guide
In groups maximum of five (5), create a marketing plan for either a new wearable tracking device,
new pharmaceutical breakthrough product, new first of its kind restaurant in the UAE, new
flying car, a revolutionary new method of local transportation like Dubai’s Hyperloop, new
destination e.g. deepest point in the ocean, space travel, new type of secondary education,
any other original idea (only one idea)? Click the link below and see the new hyperloop details.
https://www.khaleejtimes.com/news/transport/video-rta-unveils-hyperloop-prototype-in-uae-
innovation-month-
Your group will need to analyze the various environments (external, competitor and consumer) that
relate to the product and based on this analysis, you’ll will develop an appropriate marketing strategy
for the new product and brand.
When preparing the group marketing plans it is important to draw on research to support your critical
analysis and application of concepts. It is essential that your research is referenced. Correct
referencing is important because it identifies the source of the ideas and arguments that you present,
and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism.
The marketing plan report is due on Saturday December 8, 2018. As it is a group project, it is very
important that all sections flow together. I strongly encourage you to create the marketing plan using a
Google Document so that you can see and comment on each other’s contributions. It is each
student’s responsibility to ensure that the workload is equitable between team members. Teams
experiencing problems with one member should report this immediately.
Students are required to submit their assignments in group via Safe Assignment as well as a
hardcopy during the class time. Reports containing plagiarism will be awarded zero and all group
members will be reported for academic dishonesty.
Solution
Executive summary
The establishment of a new company or business in the market requires market planning
which involves different components to ensure its success. The World Wide plane seeks to
establish itself in Dubai UAE by offering a variety of quality dishes, for example, Indian
Chinese, Arabic and Italian. However, it must conduct an External environment analysis which
involves demography, economy, culture, politics, technology and natural environment. The
environment external analysis creates a platform for the restaurant to formulate better strategies
to handle the market. The market plan also involved conducting a market analysis which looked
at competition in the market and competitive strategies employed by competitors. The planning
incorporated need analysis and decision-making process to find a way to attract more customers.
The company also incorporated segmentation, targeting and positioning to ensure that the
strategies incorporated by the restaurant suit the market. Furthermore, it incorporated different
strategies; branding, pricing communicating and distribution enabled World Wide Plane to
establish itself in the industry.
External Environmental Analysis (PESTLE Analysis)
Demographic Environment
The demographic environment encompasses issues related to population, age distribution,
beliefs and culture (Voiculet et al., 2010). These factors are fundamental in establishing a new
business; furthermore, understanding these factors makes it possible for a business to come up
with the best strategies to suit the market. In this case, the worldwide plane has to look at the
cultural stipulation, population and age distribution in Dubai, UAE its first market. Currently, the
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UAE is a mixture of cultures and nationalities hence increasing the chances of the restaurant to
succeed by incorporating different dishes. The age structure of UAE’s population is that the
majority is youths and who are ready to explore new services presented in an industry. The
World Wide Plane offers a new experience of a half suspended plane hence attracting the
majority of the population.
Economic environment
As aforementioned, UAE is the first market that the World Wide Plane will establish
itself hence increasing its chances to attract more consumers due to the strong country economy.
UAE boosts of a strong economy where the majority are employed and have capital to spend,
therefore, the consumers have a high purchasing power. The restaurant is bound to bring a new
service sensation in the industry hence increasing the chances of attracting consumers to spend
their money. Most of the people in UAE are stable economically this enables them to have
disposable income that they can spend on new services presented in the market.
Cultural environment
The UAE is made up of different cultures due to an increase in the number of expatriates;
furthermore, it is important to understand that the UAE is one of the most multicultural countries
in the world. According to Elbanna (2010), the multi-cultural environment presents a better
platform for the business to thrive since the company is able to offer a variety of services that
suit the cultures in the UAE. The restaurant plans to offer different foods, for example, Italian
and Indian hence making it possible to meet the needs of customers in the market. Furthermore,
the availability of different foods in a multi-cultural environment provides an opportunity to get
new customers especially those who want to try new food. The restaurant purposes to offer food
belonging to different cultures, therefore, meeting consumers demand and expectations.
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Political environment
The political environment of a market determines the success of the business, the UAE
boasts of a stable political environment hence making it safe to start and operate a new business.
UAE offers a stable market for World Wide Plane to operate and maximize its profits without the
fear of business closure or relocation of consumers hence minimizing the chances of having
customers (Albanna, 2010). Furthermore, UAE’s goal is to diversify its economy by including
tourism as a source of national income. This strategy provides a positive environment for World
Wide Plane to operate. The government policy plays a pivotal role in the establishment of a new
business. The need for UAE to support the diversification of the economy has prompted the
country to provide security hence increasing the probability of the business to grow.
Technical environment
The advancement in technology is a factor to consider during the establishment of a
business. According to Voiculet (2010), technology is a competing advantage for most
companies since it enhances service delivery. World Wide Plane is in the service industry which
requires technology to enhance service delivery in the market. Currently, the UAE is a
technology hub hence offering a better platform for the company to establish itself. The
advancement in technology offers an opportunity for the company to integrate its operation with
Information Technology systems to ensure delivery of high-quality services.
Natural environment
Natural environment determines the success of the business since it provides the raw
materials for a business. This is a challenge since the UAE imports most of the raw materials
related to food; World Wide Plane requires vegetables and spices to ensure it delivers nice
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dishes. This requires the company to strengthen its supply chain to ensure that it does not
encounter a raw material shortage in its establishment.
Competitor Analysis
Competition analysis is important during the establishment of a business since it allows a
new company to establish better strategies to penetrate the market. Furthermore, it provides more
information about other businesses in the market and how to handle the competition by
formulating better strategies. According to Slater, Mohr & Sengupta (2010), competitive analysis
enables a new business to formulate a market plan by evaluating the uniqueness of a product or
service, grouping competitors. Furthermore, competitor analysis assists a business to master the
strengths and weaknesses of competitors hence formulating possible strategies to outdo them.
Direct and indirect competitors
Direct competition arises when companies provide the same products to consumers in the
market, therefore, increasing the level of competition. World Wide Plane has to conduct a
competitor analysis to know which businesses offer the same products and services. This creates
a platform for the business to understand the strengths and weaknesses of the competitors hence
facilitating better competitive strategies to handle the market. On the other hand, indirect
competition is where the competitors offer different services or products but consumers can use
them as an alternative (Slater, Mohr & Sengu, 2010). Assessing the strengths and weaknesses of
indirect competitors will enable World Wide Plane to formulate a strategy that will reduce their
influence in the market, for example, some of the first food restaurants.
The table uses a scale between 1 and 5; five shows the factor is very strong, 4 show it is strong, 3
shows it is mild, 2 indicates weak and 1 denotes very weak.
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Factors World Wide
Plane
Competitor 1 Competitor 2 Competitor 3 Competitor 4
Price range 5 4 4 4 5
Market share 2 5 2 3 4
Target
customers
4 3 2 3 4
Quality 5 4 5 4 4
Advertisement 5 5 3 4 2
Competitive position
The key competitors in the market have an affordable price range to attract more
customers. The affordability of prices is an issue that World Wide Plane has to consider as it
establishes itself in the market. The company has to come up with a price that is affordable for
high-quality services. Nowadays consumers want value for their money; they try to do a
comparison between the price and the quality of services offered by a company. Advertisement
is another strategy that most of the businesses in the industry implement to ensure that they
attract more customers (Slater, Mohr & Sengu, 2010). Promoting a business creates awareness
about the existence of a business hence increasing the chances of attracting more customers.
Some of the businesses have opened more branches to increase their capacity to serve more
customers efficiently. Therefore, it is important for World Wide Plane to come up with a strategy
that creates a platform to serve more customers efficiently. Quality is also an issue to consider
when doing the market plan, most of the businesses offer quality food. This requires the World
Wide Plane to ensure the provision of high-quality services that can outdo others in the industry.
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Customer behavior
Consumers behavior is a key aspect in market planning that World Wide Plane should look at
before establishing itself in the UAE market. Consumer behavior refers to the purchasing
character of customers in the market, for example, do they purchase personal goods or household
goods (Singh & Singh, 2014). The consumer market comprises of individuals and household
goods or services which are parameters that determine consumer behavior. Furthermore,
different market stimuli determine consumer behavior, for example, price, promotion and place.
Needs Analysis
Need analysis looks at how products or services address customer needs; the analysis
provides a platform for the company to gauge the marketability of services. In this case, the
needs analysis enable World Wide Plane to gauge the marketability and profitability of its
services in the UAE market. Currently, the consumers need to fulfill the social needs which are
aligned with culture. As mentioned earlier, UAE is a multi-cultural environment due to a high
percentage of expatriates. This requires the World Wide Plane to consider a multi-cultural
dimension when incorporating marketing strategies, moreover, it should consider, the cultural
background of its consumers when delivering services. One of the strategies that the restaurant
has incorporated is the provision of a variety of foods belonging to different cultures, for
example, Italian and Indian.
Decision-making process analysis
Decision making among consumers depends on different variables in the market, for
example, price, culture, promotion and technology among others. These variables determine
whether a consumer will purchase a particular product or service. Firstly, the consumers make
decisions based on their needs, for example, the need for a consumer to indulge in an Arabic
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meal will make him seek the services of World Wide Plane. Based on needs, Maslow’s theory
explains the reason why consumers make certain decisions. According to Singh & Singh (2010),
the external stimulus, for example, an advertisement can enable a consumer to make better
decisions. The restaurant plans to incorporate word of mouth, promotion and advertisement in
order to facilitate decision making among the consumers. The information in the making
facilitate decision making, the consumer tends to seek information about a service before settling
for it. The information provides the consumer with a variety of options hence making them do an
evaluation based on different stimuli in the market, for example, price and culture. After the
evaluation of decisions the consumer makes a purchase and evaluates the purchase whether it
meets his expectations.
Segmentation, Targeting and Position (STP)
The product market comprises of different cultures and age group, however, the youths
make the majority of consumers. STP comprises of three stages, determining the consumers
existing in the market, selection of the best segment to serve and adjusting the services to suit the
segment (Natter et al., 2008). Segmentation is an important component in market planning since
it enables a new business to analyze the consumers in the market. Furthermore, the identification
of consumers enables the company to find their needs; in this case, the consumers required
cultural foods. There are different segments in the UAE market depending on demography,
behavior and geography. Demographically, the market is made of the youth and the old since
they have the purchasing power due to employment or the businesses that they run. However, the
youth occupy a larger segment of the market hence the need for the restaurant to customize their
services to ensure the inclusion of the youths. Market targeting involves the identification of the
largest segment in the market and customizing the services to fit the market. In this case, the
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youth occupy the largest portion of the market hence the need for World Wide Plane to formulate
strategies that suit them.
The strategies involve the provision of entertainment and high-quality foods to meet the
consumers’ needs and expectation. According to Natter et al., (2008), pricing is also a
fundamental strategy since some of the youths are students and depend on their parents. The
positioning strategy gives the company an upper hand in terms of outdoing its competitors after
studying their strengths and weaknesses in the market. The restaurant focuses on providing a
variety of goods from different culture, for example, Arabic, Indian and Chinese. This strategy
enables the restaurant to outdo its competitors by providing a variety of food and services that
meet the demands of the multicultural environment.
Product and branding strategy
The restaurant seeks to provide a variety of services under the same roof hence meeting
most of the consumers demand. Different restaurants in the UAE have specialized in single
dishes, for example, Chinese or Arabic, however, World Wide Plane looks forward to providing
all the dishes in the same restaurant. The product mix of the restaurant involves the Chinese,
Italian, Arabic and Indian dishes. The provision of a variety of dishes under the same restaurant
in a multicultural environment will give World Wide Plane a competitive advantage in the
industry (Bruwer & Johnson, 2010). There are times when consumers require different dishes yet
they are in the same family hence limiting their wants, World Wide Restaurant offers a variety of
option hence meeting the consumers’ needs. The restaurant intends to use a website to enhance
its interaction with the consumers; it further looks at inviting the consumers to develop different
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menus. The company intends to target the youths through online advertisement via YouTube and
Face book hence attracting more consumers.
Pricing strategy
Conducting market analysis before the establishment of World Wide Plane enabled it to
understand the market pricing in Dubai, UAE. Most of the restaurants offer affordable pricing
hence increasing the level of competition between the direct and indirect competitors. According
to Yan & Pei (2011), a business needs to formulate a better strategy when it comes to pricing to
ensure that it captures the youth segment in the market. The price range for fast food in the UAE
is between $3 and $9; therefore, the restaurant should come with an affordable price to offer
cultural food in a competitive market. The restaurant intends to use both value and competitor-
based pricing strategy. The value-based pricing enabled the restaurant to provide cultural food at
a profit since it required more raw material to produce. The price range was between $8 and 12$,
furthermore, the restaurant provided high-quality dishes to its customers. The company looked at
the price range of its competitors and decided to settle for below $12 per plate in order to avoid
compromising on quality (Yan & Pei, 2011). Currently, the demand for cultural dishes has
increased in Dubai hence increasing the probability of the restaurant to generate profit. As
mentioned earlier, the restaurant invites the consumers at times to come up with a new cultural
dish recipe which requires the setting of prices. The labor and raw materials are among the
determinants for the new price. An increase in raw material prices or a reduction in its supply
prompts the prices of dishes to increase.
Marketing communicating strategy
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The marketing communication strategy for World Wide Plane involves product, place,
price and promotion (the 4 P’s) (Gurau, 2008). The restaurant selected a city that is thriving and
advocates for economy hence promoting tourism. Tourism attracts visitors from different
countries hence increasing the cultural stipulation of the city. On the other hand, the youths and
adults in UAE belong to different cultures and providing a variety of dishes increases the
probability of the restaurant to thrive, UAE’s population provides a positive environment for the
restaurant to grow due to the large population. The price offered by the restaurant is affordable
this strategy gives it an upper hand by competing favorably in the market. The restaurant
incorporates different promotion strategies, for example, online marketing, word of mouth and
use of billboard to advertise its services. In order for the restaurant to develop a positive
communication strategy, it incorporated the steps of communication effectiveness. Identification
of the desired outcome enabled the company to target the youth and the adult who had higher
social media consumption (Gurau, 2008). On the other hand, it identified the barriers that could
result in ineffective communication, for example, language. This made the restaurant to use
different languages to promote its products, for example, English, Arabic and Hindu. The
restaurant purposes to seek feedback in order to adjust its strategies and services to fit the
market.
Distribution strategy
One of the distribution strategies that the restaurant intends to incorporate is the provision
of different dishes under the same roof. Most of the restaurants in the UAE specialize in a single
type of dish hence failing to meet some of the consumer’s demand, especially groups that require
different dishes. World Wide Plane intends to provide different dishes, for example, Chinese,
Indian and Italian, therefore, increasing its chances to meet consumers needs. The distribution
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channel for the restaurant involves the farmers and producer, wholesalers and middlemen, the
restaurant which acts as the retailer and consumers (Paksoy, Pehlivan, & Kahraman, 2012). The
restaurant uses mostly farm products which are either supplied by middlemen or wholesaler. The
restaurant uses the produce from farms to make dishes and sell them to consumers. The conflict
arises between middlemen and farmers who at times offer lower prices for the farm produce.
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References
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