When a new product is introduced in the market then it is important to have a feasibility plan so that desired goals and objectives can be achieved effectively. This report is about developing a new business of Ice cream at Saudi Arabia. In this context, report will cover all the important areas through which organization will be able to promote their product in an effectual manner. Further, it covers different ways with the help of which product will be made easily available to the customers. It is important for entrepreneur to make feasibility plan which will enable to make business more effective. There are mainly five steps which are involved in developing this plan which are as follows:
Deciding upon the need to develop a feasibility study
Before developing a plan, it is important to conduct an analysis through which scope of establishing the product can be determined. When product is decided then appropriate steps should be made so that time and money can be allocated efficiently. Further, demand of the proposed idea should be identified. Moreover, competition within the market should be analysed so that appropriate steps can be taken so as to compete effectively. Challenges which fall on the path should be identified and suitable steps must be taken so that barriers can be resolved easily. In every business operation, it is suggested to take suggestions from experts as they will be helpful in identifying the areas in which changes can be made. After this, a proper time table should be developed which will help in having a systematic process so that desired goals can be achieved in an effective manner.
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Conducting market analysis and research
Place where product will release should be analysed properly. Strengths, weaknesses, opportunities and threats should also be identified so that product can be introduced effectively. Questionnaires should be developed so that customer’s needs and requirements can be identified in a proper manner. This is very helpful in developing product according to the wants of service users and this will also enable to satisfy them. Moreover, business can survey directly in order to identify the requirements and perception of customers. Further, strategies which are used by competitors should be analysed and accordingly, proper plan should be developed which will enable to compete effectively.
Technical and organizational analysis
After the analysis, a proper place should be selected by which firm will be able to provide services to their customers easily. It is very essential to select the best place by which customers can be attracted. In addition to this, space, areas, nearby organization, etc. all should also be identified and should be structured properly. It is important for the business to identify proper sources through which materials can be gathered and products can be developed. Suppliers have a great importance as they are the one who deliver material for developing product. Further, cost should also be determined for the product which has to be sold to customers and profit margin should be made so that firm may not face losses.
Daily expanses which business will face should be identified and accordingly, proper way should be developed with the help of which day to day operation can be handled effectively. Operating cost should be evaluated as it includes material, rent, wages, etc. Revenue should be predicted as it will help in knowing that whether business is gaining profit or facing losses. Sources should be found for funding so that business operation can be easily operated.
Competing feasibility study
Once all the stages are completed, then findings should be analysed. Budget should be developed so that accordingly, decided plan can be implemented. From the analysis done, at first financial prediction should be analysed and accordingly, proper plan should be developed which will enable to take a feasible action in order to achieve the objectives. Proper balance should be made in between the financial needs and estimated business profits.
By following the above given feasibility plan, entrepreneur will be able to make their business effective and will be able to attract customers and gain profit.
Marketing is determined as a process with the help of which organization conveys information to their customers regarding their products or services. On the other hand, it is a form of communication process among customers and business entity (Ambily and Beena, 2012). The present report is based on Ice-cream and its business operation to be started at Saudi Arabia. According to a survey conducted, it was found that in Saudi Arabia, rate of Ice Cream consumers in 2014 was 6.8% of CAGR and it has raised to 7.2% CAGR in 2015. This shows that rate of consumers for cited product is increasing. Thus, it can be stated that there is a huge scope of introducing a new business for Ice cream. As per the climate of Saudi Arabia, there are mainly two weathers such as winter and summer. Along with this, there is availability of very low annual rainfall. Maximum temperature recorded here is 52 degree Celsius. This shows that Saudi Arabia is a hot place and launching sweet and sugar ice cream will be beneficial. Main objective of this study is to identify the areas through which cited product can be promoted effectively in Saudi Arabia. There are many firms which provide similar product but it is essential to attain competitive advantage with the help of adopting strategies which will enable to compete effectively (Kolodziej, 2014). With this respect, research will help in knowing the needs and requirements of customers and accordingly, services will be provided which will satisfy them.
With the help of this study, different ways through which product can be promoted will be determined. Further, it will help in identifying the factors which influence the customer’s buying behaviour. Moreover, it will cover the various market forces which create demand for the product.
The product which will be delivered to customers of Saudi Arabia will be sweet and sugar ice cream. In cited country people prefer to consume ice cream after having food, mainly after lunch or dinner (Jaffe and Albarda, 2013). The product will be provided in different flavour like chocolate, vanilla, strawberry, mixed fruit ice cream, etc. In other words, it will cover all the important flavour which people prefer. Customers can also enjoy different scoops for all the different types of flavours provided to customers. It will be sold according to the weigh it will contain. Mostly, this type of flavours are provided by other organizations but the cream which will be provided will hand made with crispy chocolate pieces on all the flavours (Berthon, Pitt and Shapiro, 2012). In addition to this, jumbo cup will be provided in which it would contain one scoop from all the different flavours.
Joseph Abraham and Jackson Thomas
Al-Sharafeyah, Jeddah Saudi Arabia
Telephone number and Email address
+966 10 578 2619 and its email address is firstname.lastname@example.org
M.B.A. in Marketing done by Joseph Abraham
M.B.A. In Human Resource done by Jackson Thomas
Work history and background
Joseph Abraham started his mat wring career at 23 while working as a telephone fundraising for Action Aid. At that time he was studying in University of Bristol. His first marketing role came during charity fundraising. His formative years were spent by working for a marketing agency that dealt with overseas clients. During this time he also secured Chartered Institute of Marketing Diploma. This was followed by securing MBA with distinction. He then joined Clarity Blue that was a database specialists company and became a Director of Marketing.
Jackson Thomas worked as an assistant HR manager in Phonic Hearing Systems which dealt with design, development and distribution of hearing devices. He has a bachelor’s degree in arts from Trinity College followed by masters in Labor Relations from Cornell University.
Market assessment can be defined as a process through which detailed and objective evaluation is done for new business product or business idea. In other words, it can be stated as comprehensive analysis of market trends, competition, opportunities, environmental forces, constraints, etc. (Phillips, Cordell and Moore, 2013) It helps in developing a path through which business can be effectively operated. With this respect, all the above given factors will be stated for sweet and sugar ice cream. There are different tools which are available with the help of which such assessment can be conducted. Following are the market analysis done for sweet and sugar ice cream:
Assessment the market demand
It is very important to understand the market demand so that product can be delivered to customers effectively (Thomas, Desai and Seenivasan, 2012). In this context it is very essential to make use of different step through which market demand can be identified. With this respect, following are the things which should be followed by the entrepreneur:
Ask right questions: The main aim of introducing any product should be satisfy the customers needs and requirements. So it should be asked that whether the product will be able to satisfy customers requirements (Burgess and Steenkamp, 2013). Further, question should be asked that who will be target customers. Moreover, who all re the competitors and what all strategies are been adopted by them in achieving their goals and objectives. Lastly, are there any type of legal issues or restrictions.
Google it: All the feature or benefits which the customers will get through the product should be determined. In addition to this, all the organizations which provide similar products should be identified (Shankar and Perumal, 2014). Moreover, the strategies which they adopt on promotion their product should also be identified as it will help in making strategies for sweet and sugar ice cream.
Collecting feedback: Proper questionnaires should be made which will help in understanding the areas and the customer's perception towards the product (Sheth, Parvatiyar and Sinha, 2015). Further, it will also help in determining the requirements of customers and accordingly services can be developed with the help of which customers can be satisfied effectively. Feedback will enable to know the drawback which competitors many by having and those areas can be resolved in the product which entrepreneur wants top deliver.
Sell something: Customers should be provided with samples so that reaction can be noted. Through this, the drawbacks which service users feel can be known and appropriate steps can be taken to improve the product according to customers feedback (Brown, 2013). As there are many organizations which provide similar products and by providing samples the product can be improved.
Target audience and price of product
The market selected is Saudi Arabia and people of all the age group prefer to have ice cream. With this respect, the total population of this country is 28.83 million in 2014. Among which the total the age group can be divided on the following basis:
Illustration 1: Population of Saudi Arabia
(Source: Ice cream market in Saudi Arabia. 2013)
Illustration 2: Population according to age group
(Source: Ice cream market in Saudi Arabia. 2013)
From the above diagram it can be stated that the people from the age group of 20 to 29 are high. In this context, the people who prefer to consume ice cream is for the age of 10 to 60. Thus, it can be stated that the population or the target audience/ potential customers is very high for sweet and sugar ice cream.
The GDP rate of the country is also increasing. It is very helpful in increasing the purchasing power of customers (Saha, Ara and Khan, 2012). People are able to purchase effectively according to their requirements. Following are the GDP rate of Saudi Arabia:
Illustration 3: GDP rate of Saudi Arabia
(Source: Ice cream market in Saudi Arabia. 2013)
With the increase in GDP rate the economic condition is also improving. But few years back the GDP rate was very low but in present scenario the condition is improving and it is forecasted that the GDP rate will increase at an increasing rate.
Illustration 4: Consumer price index
(Source: Ice cream market in Saudi Arabia. 2013)
From the above diagram it can be stated that the product will be able to contribute effectively as the consumers price index is increasing at an increasing rate (Ice cream market in Saudi Arabia, 2013). This will be helpful for the business as more and more customers will buy the product as the purchasing power of service users is high.
Market factor which create demand for the business
There are many factors through which business can increase the demand of the product, in this context, following are the factors which can be followed:
Demand and supply: It is very important for the business to understand the demand for the product and accordingly they should make the supply (Dutta, 2015). If the firm do not make the product available according to demand, then it would negatively affect the customer's perception. Thus, it is essential to supply the ice cream according to demand.
Advertisement: There are many promotional tools which can be used by the business in order to promote their product. Promotion is very helpful in increasing the sales and the demand of product. Through promotion customers will get to know about the product and if the product does satisfy its customers needs, then it will positively increase the demand (Yunus, Zulkeflee and Ilias, 2013). The various tools which can be adopted are television, newspaper, social sites, etc.
Unique product: As it was stated above there are many organizations which provide similar product. In order to attract customers its is essential to make use of strategies which will help to attain competitive advantages. With this respect, ice cream should be provided in different flavour by adding extra ingredients.
Price: Price can be determined as one of the main factors with the help of which demand for the product can be influenced. There are different pricing strategies which can be adopted by the business. In this context, market penetration should be adopted as according to this strategy the price of the product will be kept low at initial stage (Topcu, 2015). When customers will get to know about the product, then price will be raised. This is very effective in increasing the demand of the product.
Government: The government has the power to make changes in the fiscal and monitory policy. In this context, when changes are made in these policies, then business has to make change in the prices of the product. If the rates of these policies are raised, then the price will also increase. On the other hand, it the rates are decreased, then the price will also fall.
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Forecasting the potential demand
In order to determine the forecast of potential demand qualitative data will be collected. This will help in understanding the requirement of customers and to make changes in their services accordingly (Chik, Bachok and Sulaiman, 2012). Firm will make use of questionnaires and this will enable to forecast demand for the product. There are many ways through which demand can be forecasted, which are as follows:
Gathering information: Firm should collect data from customers by making questionnaires, make them fill up suggestion forms, etc. (Spiller, Fitzsimons and McClelland, 2013). This will enable to make a proper data with the help of which forecasting will be possible.
Determining the approach: The sales which has been made by selling the product will enable to identify the potential demand for the product.
Judgement approaches: Judgements should be made so that customers will be able to develop an estimate for which they can make their sales increase.
Time series approach: This will enable to make an estimate for the approx time period in which they will able to make their sales effectively (An entrepreneur's guide to assessing market potential, 2015). This is made according to the current sale which the business earned from their product.
Opportunities and Threats
The sweet and sugar ice cream there are many opportunities and threats which they will face. Among which following are the opportunities to the business:
Potential target audience: There are about 28.83 million people in Saudi Arabia. More specifically the age group from 20 to 29 are the highest. In addition to this, the age group which prefer to consume ice cream if from 10 to 60 (Chik, Bachok and Sulaiman, 2012). In this context, it can be stated that the firm will be able to get huge profit as the target audience is very large.
Increase in GDP: There is an increase in the GDP level and this has helpful in increasing the purchasing power of customers. This is a type of opportunity as customers will buy more.
Following are the threats which are faced by the business:
High competition: There are many organizations which provide their customers ice cream and this is a type of threat which they face.
Rules and regulations: The policies followed in this country are very strict and it is very important to provide the product in high quality (Yunus, Zulkeflee and Ilias, 2013). All the rules and regulation should be followed so that it may develop a good perception towards the firm.
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Market research techniques
There are different types of techniques which can be followed in order to make the market research. Following are the different market research techniques which can be followed:
Personal interview: Customers can be personally interviewed and the needs and requirements could be known for them (Saha, Ara and Khan, 2012). This will also help in determining the areas in which customers need improvement.
Telephonic interview: Potential customer can be identified and through telephone information could be collected for them. According to the changes which they want accordingly improvement can be made and service users can be satisfied.
From this report, it can be articulated that in conducting any research, it is very important to have market research. This will help in identifying the potential market in which business can be operated. Further, there are different tools which help in conducting the environmental analysis like SWOT, PESTLE, Porters five forces, etc. This tools enable to identify the factors which support the business operations. It also helps in identifying the areas in which firm needs to take proper steps to over come the barriers.
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