INTERNATIONAL BUSINESS PENETRATING MIDDLE EAST MARKET: OPPORTUNITY OR THREAT LG

Executive summary

The current paper aims at discussing international marketing with an example of the LG company that is tending to build a factory either in Egypt or in Oman with concerning to the different strengths, weaknesses, opportunities and threats in each of the two countries. The company is trying to manufacture a new product called OLED which are new displays used for saving in power and place as well as providing better display for devices such as TVs, smartphones and others as the technology is new and will replace the crystal displays in the global market. The current paper is studying the company's potentials and their relation to the available chances in the two countries, Egypt and Oman through some different means of analysis such as PESTLE analysis, SWOT analysis and studying the feasibility in each country based on these analysis to find that Oman is the better choice for LG factory to be established there due to some reasons such as the governmental support to foreign investments, less taxes, better importing system, better economical and political stability in Oman and cheap work force. Egypt is not preferred as a result of some main reasons such as the non stable situation regarding politics, dollar availability and dealing, work force, high taxes on imported items, difficulties of establishing a foreign plant and shortage in safety measurements. The study will also present a number of obstacles that the company will face during establishing the plant and achieving the project such as the difficulties of working with women in Oman as this is one example for cultural obstacles and as the high and changing salaries of engineers, holidays related to religion are too many in addition to the 8 hours that represent the maximum working hours for Omani as the company may need workers to stay longer to end better. 

Table of contents

TOPIC	PAGE
ABOUT LG	4
SCOPE OF WORK	5
PRODUCT PROFILE	6
EXTERNAL ENVIRONMENT ANALYSIS	8
MARKET/SECTOR ANALSYSIS	11
COMPATITORS ANALYSIS	14
SOWT ANALYSIS	16
INVESTMENT FEASIBILITY	19
MODE OF MARKET ENTRY (OMAN)	20
OBSTICALES	21
REFERENCES	22

1. About LG

LG electronics is a multinational company for producing electronics and it is mainly a South Korean company with a headquarters in in Yeouido-dong, Seoul, and a member of the LG Group. The company is employing about 83.000 employee distributed for working in the international 119 local subsidiaries. The company gained in 2013 about USD 53.1 billion (KRW 58.14 trillion), from global sales. There are five divisions the company is operating in including the home entertainment, home appliances, Energy solutions and air conditioning, mobile communications and vehicle components. CEO of LG Electronics is Mr. Bon-joon Koo, who was assigned as Vice Chairman of LG Electronics on the date of 1 October 2010. In 2011, LG Electronics was second-largest television manufacturer in the world.   

2. Scope of Work

LG electronics is investing in the Middle East in many electronic products including refrigerators, TVs, washing machines, cooking appliances, built in appliances and mobile phones and it has good investments in many countries of the Middle East, the company is studying opening a new plant for producing OLED or organic light-emitting diode displays for larger TVs, smart watches and automotive displays and this will be in Oman and in Egypt to supply the future need for O

3. Product profile

The new product is produced to provide a new display type which is used for cutting power use, showing colors in a brighter way and making thinner devices.  This new technology was produced to be a replacement for the smartphones liquid-crystal displays as the OLED is sought by big companies such as Apple for its iphones in 2018. It is said by LG that there will be 10 trillion to be spent over the product along with three years' time period in order to produce and market these advanced technology of displays that provide the customers with advanced screens with a brighter picture that is also sharper than the LCDs. The new product is able to save power and space as they are not in need for a backlight. The new product is needed as a result for the slow LCDs sales especially in the smartphones and other wearable devices. The company tends to invest in the new product to surprise the market with its known rivals by it and it tends to invade the Middle East countries such as Oman and Egypt with the new product marketing plan that can be better than anything in the market. (Timesofoman, 2016)

4. External environment analysis (Oman and Egypt)

4.1 General information

	Oman (Asia)	Egypt (Africa)
Capital	Muscat	Cairo
Area	309,501 km2	1,002,450 km2
Population	4.2 Million persons	87,5 Million persons
Language	Arabic, Most educated people speak English	Arabic and most educated people speak English and some add French
Currency	Rial (OR)	Gunaih(Pound Egyptian )
GDP	23,315  $ per capita	2,970  $ per capita

The report Oman, (2015) World report Egypt, (2015)

2. PESTLE analysis

	Oman	Egypt
Political	The country is a Sultanate ruled by the Sultan. It is stable with limited political freedom. Taxes for importing products is very low without taxes among GCCC. Good relations with world countries and neighbors. Many labors are foreign workers. WTO member since the year 2000. A tendency towards Omanization.	Egypt began to have a quite stable politic situation. Election rules the country by a president. A level of publicity freedom. Imported products are under high taxation rates. Local business entities are under high income tax system. The market is dominated by local workforce. Relations with neighbors are ok but with some issues with Israel, Sudan and Libya. Bureaucratic system limits external investments.
economical	The economy is growing. It is a country with high income. Growing GDP per capita is (26,000$ per capita) that is ranked as the 50 globally. Economic freedom index score is: 67.9 and there is a low unemployment rate. A growth in demand for electricity. The government provides high support for local manufacturers. Interest on loans and factory rent are low	The economy is growing but not with a good level. Lower middle income. Growing GDP per capita (3000$ per capita) the economic freedom is low with a low industrial production. There is a high demand on electronics in the market and sales are high.
Social	People are of the Islam religion. People are divided socially into tribes and families. 81%literacy rate. Good education.	People are of the Islam religion and there are Christians. People are divided socially into families from Cairo, Delta or Upper Egypt and minority Bedouin. 72%literacy rate. Good education.
Technological	High technology based business. high interest with IT in life and education. Modern network, communication and high interest in modern technologies in mobiles and internet. There are plans for the GCC train. The country enjoys modern transportation systems. There is lack in media channels and media industry. Few number of radio stations and TV channels.	Low interest in technology based industries but the people like to purchase the latest trends of technology appliances. Old transportation but good communication and internet. Lots of media channels such as radio stations and TV channels and satellites.

  Bbc, (2015) -internations, (2015)

5. Market sector analysis

market demographics

Oman

Oman is showing that its customers are consuming high amounts of electronics and smartphones that the new product can be used with as this

The market shows that there are many updates in that field and people are attracted to the new and updated products and this is seen in the PC, AV, smartphones and handset segments which shows that in the year 2017, there will be more sales as growth is expected in the Omani spending on electronics by consumers according to the spent in 2016 and this is conditioned with the stronger performance of companies manufacturing and distributing such products in the Omani market and with the economic conditions in Oman as risks are able to exist. Demand on the new product is underlying with the growth of Omani population and the reduced prices of the different devices and the introduction of new supportive devices that can have new features such as the current product of OLED.

There are many updates and developments in the industry as follows:

-Computer Hardware Sales: USD257mn in 2016 and expected to beto USD282mn in 2019, with a percentage of of 3.2%. Tablet market is expected to grow from 2017 with demand for hybrid notebooks.

-AV Sales: USD175mn in 2016 and expected to reach USD187mn in 2019, at a percentage of 1.5%.

-Handset Sales: USD737mn in 2016 and expected to be USD759mn in 2019, at a percentage of 1.7%.

-Smartphone sales: It is almost stable and there are expectations for them to grow in the next years.

Figure 1 Oman Smartphone Sales

Egypt

It is thought that the Egyptian market is a promising market for electronic consumption as the market there reflects that although there is a negative effect of the currency depreciation in Egypt, people are still purchasing electronics and there are expectations for growth in the industry there as there are expectations for market settlement there but slowly as sales of the year 2014 in electronics were very high. The country is witnessing a rise in people's income but there are government restrictions regarding exported items and taxation laws. There is a growth in smartphones and tablets demand with the need for new updates such as the OLED.

Latest Updates & Industry Developments

Computer Hardware Sales: were USD916mn in 2015 and became USD 965mn in 2016, up 5.3% in terms of US dollar AV S ales: were USD648mn in 2015 to be USD671mn in 2016, up 3.5% in terms of US dollar Handset Sales were USD2.12bn in 2015 to USD2.26bn in 2016, increasing 6% in terms of US dollar terms.

Customers

Customers include all social categories such as adults, teenagers, males and females. They can be included within families, companies and schools.

Market needs

High quality

Products such as electronics are needing to be of high quality as they need to be able to endure many applications and uses. The market I full of Chinese electronics that lack many quality measurements and customers need new high quality products.

Punctual delivery

Punctual delivery is a major need for retailers who distribute to customers as this makes the market flourishing and apply the customers' need of having many varieties to choose from.

Competitive price

Competitive prices are needed to boost the high competency in the market with the existence of cheap Chinese products.

Variety of options

OLED products should be diversified to include smartphones, tablets, cameras, handsets, PCs and other electronics as well.

Customer service

There should be high quality customer service that encourages customers to purchase the products.

6. Competitor analysis

Porter's five forces

Figure2 :Porter's five forces

Market Rivals

The electronics market is full of famous companies that tend to invest in the OLED products including TVs as its market is expected to go over $10 billion globally in 2019 and its share is also expected to rise from 1% to 10%. Companies such as Samsung electronics will start marketing its OLED products in the Middle East in 2018. There are some Chinese electronics companies in Asia are releasing some OLED displays panels. Japanese companies such as Panasonic and Sony are going to enter this field soon. Skyworth started in marketing some OLED products in 2014 and there are other companies such as High Sense, Haier and TCL are preparing to invade the market too. (Jin, 2016)
 Threats of entrants   When LG is making a plant in Egypt and Oman; this will take a lot of time that allows other companies to establish the competing plants there and this will raise competition and long time will reduce the opportunities of LG in the market. The Chinese and Indian products that are cheap and have strong position in the Middle East market can threaten the LG new products and reduce its value especially when they produce the same OLED electronics or imitated copies of them. High quality will enable LG products to penetrate the market and get a strong position against other rivals.  

Threat of substitute products

The market is full of different companies that at any time can produce new technologies in the same field and can produce new products that can compete with the LG products and reduce its sales.

Bargaining power of customers

Power of customers can be controlled by LG when quality and price pass over other products in the market such as those cheap Indian and Chinese products as well as the expensive European products in the market.

Bargaining power of suppliers

Suppliers' power can be maintained when LG provides them with the best offers and keeping different suppliers for having substitutes if there are conditions the suppliers aren't able to supply the company.

Competitive position of LG Oman and Egypt

According to Torraleja et al, (2012), Brown strategic clock can refer to the current competitive position of LG in the Middle East market and how it can make use of its resources and abilities to invade the market with its new OLED devices and this can be seen from the Brown diagram:

The diagram shows how the company can provide a moderate price of the product without monopoly of the price as it can be risky and the company can provide high quality product in compared to others in the market and this can be shown through differentiation and hybrid products in order not to lose the market share and beat competitors.

7. SWOT analysis

SWOT analysis will be used to help the company decide how to enter the two markets of Egypt and Oman as it declares the strengths and weaknesses in each of the two countries regarding the marketing for a new product there and the opportunities and the threats that the company may face there.

Oman

Strengths Low taxation system. Human resources of high quality. High individual income. Strategic location. Franchising many businesses as being local factories. A public demand for innovation in electronics. The Omani people is seeking new devices and smartphones. The strategic location of Oman in the Arabian Gulf. Low operational costs The country has good relations with neighbors. There is high possibility for meeting the needs of the customers. Low transportation costs.

Weaknesses Difficulties in manufacturing all parts in Oman. Time consumed in establishing the plants. High costs of lands for the plants. High costs of engineers. Omanization restrictions can delay the projects and lead to undelivered at deadlines.

Opportunities Oman is enjoying political stability Good banking loans for local manufacturers. Low difficulties resulting from bureaucracy. People are easily attracted to updated electronic versions. Good economy and healthy social measurements for electronics. The year 2018 will witness opening the GCC train. High public increases for smartphones, TVs and other electronics updates especially in displays.  There are advantages provided for local electronics that support Oman. The government doesn't make it hard on investors to market their products in Oman.  Low costs of Asian labors. Increased constructions of factories in Oman.

Threats The Omani market is full of different electronics companies with high technology and high diversity. Not enough human capabilities. The weather in Oman may be of bad conditions at any time. The government changes the employees' wages without referring to the companies of the private sector. Problems of visas for residents non Omani employees.

Egypt

Strengths Strategic location in the Middle East. Low costs of employees, engineers and labors. Egypt is considered a leader in the global electronics market. People are trying to find new trends in technology. Reaching customers easily via different media channels. reasonable costs of land renting for the factories. The country has a large number of population.

Weaknesses High capital costs. Difficulties in manufacturing all parts in Egypt. High costs of exported materials. High taxation cost. Low individual income.

Opportunities The country began to enjoy political stability. The economy is growing. Local products are receiving many advantages. Local franchises are favored there. High demand for constructing different factories and manufacturing plants. Local products are under lower taxes. The strategic location of Egypt is a good opportunity for making other businesses with neighbors. The company can save from the local labor costs. Adequate quality of transportation systems. High efficiency in communication and advertising tools.

Threats The different companies are prevailing in the market and affecting the production. High bureaucracy and difficult laws regarding building plants. High crime ratios, low safety and security measurements and problems with dollar dealings. The economy of Egypt is not stable and doesn't support good foreign investments and it has many problems regarding the currency and dollar situation there as there are many restrictions on dollars dealing there in Egypt and the factory may stop working and make loss if there are problems regarding the dollar.

8. Investment feasibility

Any project needs to have a feasibility study in order to measure, expect and realize the different benefits or harms that the project may be liable to when it is executed and it is also useful to estimate the risks to the project after application and how to avoid them. The above SWOT analysis and PESTLE analysis can tell many things relevant to the project and the feasibility of it such as how much time is to spend in order to finish the project, how it can be scheduled, what strengths can be there for the project to make use of, what weaknesses can affect the project and how the products can be marketed in specific time period. The current situation can be understood if the strengths and weaknesses were understood well in each of the two countries and if LG company considered methods to make use of the opportunities provided for the company. Both countries are suitable for establishing the factories but Oman's external environment looks better and at the same time, Egypt population is encouraging to attract more numbers of customers. Oman's plant seems to be easier to be built due to the governmental opportunities provided to the investors there and the opportunity to find many facilities related to the project and Oman can also be a gate to the other Gulf countries easily which means a very big audience and many new customers for purchasing the new product. The threats in Egypt can be more effective in choosing one country as the problems and differences in Dollar dealings can affect the success of establishing the plant there in addition to the threats from high taxations imposed on foreign investments and on imported products which makes Oman is a better market for beginning launching the new OLED displays devices for the previously mentioned reasons and for the different strengths and political stability there. This makes Oman is the most suitable market to be chosen for establishing a plant for OLED displays and different relevant devices using them and marketing these products by LG companies as the feasibility of success is higher in Oman rather than in Egypt electronic markets. The coming parts will present the mode of entry to Oman's market and how this can be done by LG successfully and the different obstacles that the company may face as challenges in the Omani market.  

   

9. Mode of entry

The new plant will cost Apple the supplier for LG about 10 trillion ($8.7 billion) and the money will also be allocated for increasing the production of the OLED as they will be used for cutting the use of power and delivering customers with a very thin device that has brighter colors. The factory will be assigned for manufacturing organic light-emitting diode displays that can be used with very large TVs, automotive displays and smartwatches. The products will be delivered to the market through media channels in Oman at first and in the Gulf after that to spread into the Arabian Gulf after Oman. This will be at the first half of year 2018 when the plant establishing and work is done. The OLED technology will be a substitute for the smartphone liquid-crystal displays. The factory will also produce new panels that are power and space savers due to the absence of backlight. This investment can raise the company's share to Samsung in the market if time was well used. LG is deciding to enter the Omani market by franchising the new displays business via OLED technology in a local factory that manufactures and distributes the new product in Oman with plans to market it in the Gulf area after that to increase the business and reach larger customer scales. The factory will manufacture the different sizes of the OLED displays and assembles them with the different parts of the devices. Many companies will work with the LG company as suppliers for different parts such as Apple company. Apple is LG Display’s greatest customer, representing for about 25 % of sales, according to Bloomberg supply chain analysis. The South Korean company has reported a 30 % decline in third-quarter operating profit as prices and demand fell. (timesofoman, 2016)

 

10. Obstacles

Among the different challenges and obstacles the company may face is the cultural challenge that makes the society of Oman not able to employ a large number of employees due to the avoidance of employing women in that society. Another challenge is some restrictions on employing women as they should wear Hijab which will be solved by imposing uniform women who work in the factory should wear that is formed of a long sleeved Abayaa and a Hijab or something like that as the company has to respect the social and cultural customs and religious beliefs of Oman. Another problem is the big number of religious effects and rules that make holidays related to religions are too many and may affect the work soothe company should make a balance between the holidays and the work. The maximum work hours is another obstacle that the company may face during establishing the factory as there may be different shifts and this problem will be dealt with by the contracts and the employees.  

Domestic Violence in Kuwait

Domestic violence is a very emotional and difficult topic to address.  However, if you are a victim of domestic violence it is essential to know what your options are, both legally and practically, in Kuwait.  These are not as extensive as they would be in the United States, but that does not mean that victims of domestic violence are entirely without redress.  Below is information about domestic abuse gathered from meetings with police, lawyers, judges of Family Court, and American women living in Kuwait.  We hope you find it useful.

Spousal Abuse

In Kuwaiti culture, problems of spousal abuse are often dealt with within the family, which is the core institution of the society.  Kuwaiti families often consider it an embarrassment if they cannot successfully address such problems without outside involvement.  These attitudes are reflected in Kuwaiti law, which considers an assault against another person to be a misdemeanor, rather than a felony, unless a weapon was used.   Cultural factors may place pressure on the abused spouse not to seek legal protection or even medical treatment.   However, if you are the victim of spousal abuse and wish to be protected, you must file a complaint with the police and any injury, of course, should receive prompt medical attention.

Documentation of the abuse is critical when filing a complaint with the police.  Hospitals and clinics can provide a report documenting injuries sustained and treatment received that can be submitted with your complaint.  English-speaking medical personnel are generally available in all medical facilities.  However, many police officers do not speak English.  If at all possible, when filing the complaint bring with you a friend or family member who speaks fluent Arabic.   In response to a complaint, the police typically will ask the abusive spouse to report to the police station to discuss the complaint and sign a statement of intended future good conduct.

Be aware that Kuwait does not have any type of shelter or home for victims of spousal or other domestic abuse; abused spouses are expected to return home based upon the abusive spouse’s pledge of future good conduct or make private arrangements for shelter with family or friends if they are not comfortable returning home.

Documentation of abuse, preferably via a complaint made to the police, is critical if the abused spouse intends to seek divorce.

Resources for Victims of Abuse

The Americans Overseas Domestic Violence Center is a group based in the United States that works with abused American women and children in foreign countries. They can provide online and over the phone crisis counseling for those in need. Please click here for more information.

The National Coalition Against Domestic Violence website provides a wealth of information on resources and information for those who have been a victim of domestic violence. Please click here for more information.

The National Domestic Violence Hotline website provides additional resources and information. This group operates a hotline with advocates for victims and anyone calling on their behalf to provide crisis intervention, safety planning, information and referrals to agencies in all 50 states, Puerto Rico and the U.S. Virgin Islands. Assistance is available in English and Spanish with access to more than 170 languages through interpreter services. Please click here for more information.

ONE IN THREE WOMEN IN KUWAIT IS A DOMESTIC VIOLENCE VICTIM

Kuwait Times | Lisa Conrad | Photo: Yasser al-Zayyat/Agence France-Presse

One in three women in Kuwait is a domestic violence victim

Domestic violence in the Middle East, including Kuwait, is a relatively unexamined topic. With a severe lack of information, prosecutions or victims coming forward, it's difficult to identify the extent of its prevalence and why it takes place.

According to Dr Moez Doraid, the Officer-in-Charge of the UN Women's Division of Management and Administration, "The Arab region has the lowest number of countries with laws against domestic violence, sexual harassment and marital rape.

The continuation of such violence is defended by cultural generalizations, Dr Doraid adds, with many officials insisting,"That problem doesn't exist here because our culture and family traditions ensure that women are protected.

The remedy for such generalizations is not difficult, however, he continues: "Conducting a scientific, objective survey and independent survey, by the state or by a civil society organization would dispel any inaccurate generalizations.

The issue of the available data or lack thereof on domestic violence was covered in the recently released Human Rights Watch 2010 country summary on Kuwait:

Perpetrators are rarely arrested

"There exists no data on the prevalence of violence against women in Kuwait," it stated, continuing, "Victims are often reluctant to file complaints with the police because redress for domestic abuse through the criminal justice system remains elusive. Perpetrators are rarely arrested even when women file complaints with the police that are regularly supported by medico-legal evidence.

Whilst no solid data is available, the Ministry of Justice revealed back in January this year that over one-third of Kuwaiti women suffer domestic abuse.

The information was collected from couples who had attended counseling. This data only represents those who have tried to improve their marriages, however, whether domestic violence was involved or not. This means that the sections of society which remain totally silent on the subject aren't represented, so the number of women suffering in silence can't even be approximated.

Hush-hush

One Kuwaiti woman, Sara, offered her perspective on why domestic violence is kept quiet:

"For a lot of women here, marriage is everything. It's such an exciting thing that so many women yearn for; it's a fairytale they crave ,but the unlucky few end up in nightmares. If you reach for a solution like trying to prosecute or leave [your husband], you sacrifice that image of the perfect daughter and wife, which many aren't willing to do. Reputation means a lot - too much.

Fahad, who is also Kuwaiti, added: "What women can do in that situation exactly, I don't know. It's hard, and if her family aren't supporting her in prosecuting her husband, she really will have nowhere to go." If a domestic abuse victim does decide to go to the police, a lengthy procedure will await her as she tries to prove her allegations.

On the law covering this issue in Kuwait, the US State Department states: "A woman may petition for divorce based on injury from abuse, but the law does not provide a clear legal standard as to what constitutes injury. In addition, a woman must provide at least two male witnesses (or a male witness and two female witnesses) to attest to the injury suffered."

No shelters or hotlines

As Fahad commented, finding somewhere to go without family support can be extremely difficult, as, according to the US State Department, there are no government-sanctioned shelters in Kuwait for victims of domestic violence or hotlines to provide advice.

The issue of domestic violence is not one specific to Kuwait or even the Middle East as a whole as its prevalence, unfortunately, spans the globe. "From our experience and expertise over decades, the problem of domestic violence exists in every society in every country from Sweden to the Maldives to India to Africa to Brazil, you name it, it's everywhere. It's one of the most prevalent, silent, forms of violence which often goes without punishment," says Doraid.

UNIFEM reports that, globally, up to six out of every ten women experience physical and/or sexual violence in their lifetime.

Dearth of enforcement

However, enforcing laws against violence against women will take time, says Doraid: "In many Arab countries, we are not at the stage of enforcement yet, because in many there are no laws regarding these issues yet.

Building the capacity of state institutions and other institutions to secure the application of the law, enforcement, and protection against corruption, interference and intervention in judicial and legal processes is needed.

Corruption

Corruption is a central factor preventing successful prosecution, as watchdog organization Freedom House reported the practice of abusive husbands offering bribes to police to drop the case.

Furthermore, the US Department of State notes that Kuwaiti law "does not specifically prohibit domestic violence, although victims may file a complaint with police and the abusers can be charged with assault. Arrests and prosecution for domestic abuse are uncommon due to a strong cultural and social bias in favor of seeking to resolve such issues within the family.

Among the most advanced regional nations in protecting against violence towards women are Tunisia, Egypt, Jordan and Morocco while sexual harassment in the workplace is outlawed in Algeria, Iraq, Morocco and Tunisia, says Dr Doraid.
Culture doesn't have to be something working against protecting women's rights, however, but can in fact be used to defend them.

Dr Doraid explained: "It's key to underscore in the Kuwaiti context that legislation securing the protection of women's rights and moving towards equality is grounded in Islamic jurisprudence and tradition.

We see opportunities for complementary relationship between Sharia and Islam with the emerging universal human rights and value systems. It is in the roots and foundation of these values. There is a variety of interpretations of these fundamental points, and there is every opportunity for progressive interpretation.

Marketing Plan Oman Shapoorji

Executive Summary

The current marketing plan discusses the different marketing options that can be used by Oman Shapoorji for constructions in order to open a new market for the company in Kuwait. Kuwait and Oman are both countries of the GCC which makes it a good idea to begin a new business in Kuwait as Omani company. The plan includes the main marketing objectives that explain how and why OSCO is entering the market of Kuwait. The plan also provides a view about the company and its services and how to enter the Kuwaiti market. The marketing plan depends on the marketing mix to discuss the different marketing areas such as price, product, positioning and other areas. There is an action plan with dates and activities and there is also a designing for the integrated marketing communication, designing the marketing channel and the e marketing strategy. It is recommended that extra research can be done by the company to add to this current marketing plan and improve it and complete any shortage or needed information within it.  

Marketing Objectives

The following objectives are relevant to the company's plan to enter a new market:

1. Increasing the market share of the company's services.
2. Expand the company's business into the contracting market in order to raise the profit margins.
3. Expand the company's services and reduce its costs.
4. Increasing the company's business in Kuwait, the Gulf area and the Arab world by entering a new market where the company's business can be expanded.
5. Establishing a new office with new employees in the Gulf area in Kuwait.

Introduction

Oman Shapoorji is intending to enter a new market which is North African countries. Oman Shapoorji has proved its success in the Gulf area and it is one of the leading construction companies in Asia. This is a marketing plan that identifies the main features of the new market that the company is intending to enter and the features of the business product area that will be marketed in Kuwait.

The Company

Oman Shapoorji Company LLC (OSCO) was established in 1975 as a major construction company that had a big share in Oman's economic renaissance and was of an outstanding distinguished activity in the construction field. The company has stakeholders in Oman and India as it has stakeholders as owners in Shapoorji Pallonji and Company Limited 150 years now.

Services

OSCO has provided many services for its customers in Oman such as building many of its famous landmarks and infrastructure as it provides its services for both public and private sectors. It is also providing other services as being a facility management division and among these services are maintenance services, operation services, housekeeping and cleaning services provided for Muscat Palace Complex and Associated Properties and other important places such as Ministries and governmental Houses. The company also has an in-house MEPI Division that provides complete mechanical, electrical, processing and instrumentation services and solutions for buildings, hospitals, hotels and other industries and infrastructure works.    

Target Market

OSCO is currently working in the Omni market. The construction business in Oman is great and increasing with heavy investments in the infrastructure, transport, tourism and other private buildings. The government of Oman is focusing on building a future rail line that connects Oman with other areas in the Arab Gulf.   Oman is planning for making the construction of 6 airports and new port cities. Oman is characterized with increasing population which makes it important for having more infrastructure and construction projects in the Sultanate as the infrastructure in Oman are representing 61% of all construction projects in Oman. It is also having strong residential and commercial developments that require lots of construction work. Oman is also having many tourist construction projects that is associated with many private and governmental construction projects related to private businesses or the governmental real estate projects such as housing projects. According to data got from the publications of Oman's Ministry of National Economy, there is a growth at the construction industry of Oman in 2007 estimated with 34.7% representing RO470.7 as it was in 2006 RO349.5 Million and in 2005 RO292.1 Million. (Deloitti, 2014)

The company is intending to open a new market in Kuwait which is a country that is although it is small, it has many construction projects that are continuously increasing. The construction market of Kuwait has much strengths such as the movement of Kuwait government forward and there are many developments in many sectors related with constructions. The Public Authority of Housing and Welfare is allocating much money for housing projects by the help of the oil and gas sector in Kuwait. Real estate is also receiving rising investments as there are transactions that are increased estimated with 40% increase in 2013 with about 7.27bn $. These reasons made Oman Shapoorji tends to open a new market in Kuwait. (Oxford Business Group, 2015)

Market Segmentation

Geographic

The market of Kuwait is considered a neighbor market to Oman where OSCO is established which raises the chances of the company's success based on its location for the new market.

Demographic

Kuwaiti people only represent about one third of the people living there so the company may also address those living in Kuwait with construction business from non Kuwaiti. (Indexmund, 2015)

Psychographic

As to the psychographics of Kuwait, people of Kuwait are always keen on the environment which is a basic value the company focuses on as the company never uses forbidden or harmful substances either to living creatures or to the Earth.

Behavioral

The company depends on respecting the behaviors of the customers in Kuwait in addition to respecting the rights of intellectual properties and all relevant rights to construction activities.

PESTLE Analysis

Political	Kuwait is a semi democratic constitutional emirate with a hybrid political system divided on the elected parliament and the government which is controlled by the ruling family. Kuwait is a Gulf country and one of the GCC countries and it is known for having freedom and political rights for Kuwait and non Kuwait. In Kuwait, the legislature is the National Assembly which has the power to remove ministers from their positions. Kuwait has a stable political life as almost all citizens are Muslims; Sunna and Shia and both are living together in peace which makes it a good country for a new business to flourish there as the government is also welcoming businesses coming from different world countries especially those of the GCC.  (NYTIMES, 2015)
Economic	Kuwait is a rich country that has about 6% of the oil reserves of the world. It has an economic freedom that is of 62.5 score which results in its having a 74th freest economy in the 2015 index. This makes it a very good market for OSCO new business activity. Its government encourages trade and business activity from other countries of the world especially countries of the GCC such as Oman and this can be regarded via its regulations and legislations that facilitate economic activities including taxes and import and export laws and legislations. It has monetary freedom, labor freedom and corruption freedom as clarity and honesty are the basic policies of the economic activities of Kuwait. Kuwait is known for its active construction industry as the country has many construction works which makes it a good area for OSCO to open a new market there. (Heritage, 2015)
Sociological	Since the 19th century, Kuwait was a country that was under Ottoman Empire control then it became an independent sheikhdom after the first world war under the protection of the British Kingdom., it became a fully independent country in 1961. The country enjoys much oil production.  Kuwait's culture depends on a history of tribe life as an Arabian Gulf country but within time, the country turned to be very modern in all life aspects such as education and construction. The country has many residents from many countries all over the world but the country is struggling to save and keep its Kuwaiti identity and this is clear in the traditions of families and the way Kuwaiti build their houses and homes. As a GCC country, Kuwaiti people welcome other GCC businesses in the country and the government encourages them.  (Elliott et al, 2012)
Technological	Kuwait is enjoying high levels of technology as the country has very developed transportation system known with its updated and developed airports and highways inside the country and those join it with other countries whether by land or by air or sea. The technology is found in all its communication systems including telephone codes, internet and media. There are four broadcasts owned to the state in addition to a satellite channel. The country has different private channels used on the latest technologies which makes marketing there is effective by the latest technologies of media and social media. People are interested in the latest technologies in everything especially communication and social media. Kuwait has a development plan that includes a scientific and technology plan which ensures good investment future for business entities. (Zahran, 2014)
Legal	Kuwait is a country of the GCC and its legal system which is based on the country's civil law jurisdiction as the laws of Kuwait are based and derived from the laws of Egypt which is an Arab country deriving its laws from France. Kuwait has a court system with six major divisions which are the family, civil, commercial, criminal, administrate and leases. Its commercial legislations are good and suitable for any business to invest in Kuwait as it provides good tariffs for importing and exporting materials in addition to its availability for joint ventures and work of agents. As it is a GCC country, it has good laws related to Gulf countries and business with them such as free passing for goods across Gulf borders and its allowance for samples and advertising materials coming from a Gulf country to be duty free. (Doronin, 2013)
Environmental	Kuwait is a country that has hot climate in summer and Cool in winter. It is a desert country with a dry climate and different climate from other countries where there are winds and rains in different times of the year. There are very high temperatures in summer and very low temperature in winter but winter months don't last too much time. (Doronin, 2013)

Marketing Strategies

7Ps

Product

OSCO is providing its construction services as its product added to plumbing, maintenance and mechanical and electrical services. The company provides all types of construction services including facility services and services of constructing many different things such as buildings, houses, infrastructures, buildings, mosques and holiday resorts. The company focuses on its services quality as it has a quality policy that ensures delivering the products at high levels of quality according to the demanded feature and designs. (OSCO, 2015)

Price

The company has a pricing strategy that depends on the market demands, consumers expectations, abilities and value of the service to money. Pricing of the construction services presented by OSCO are paralleling with the international pricing policies for construction services and are matching the Arab and Gulf world expectations and abilities. There is a pricing policy that is based upon investigating the market in the Gulf area and find out all relevant prices of the services presented by the company and to compare prices to international prices of plumbing, electricity, mechanical, painting, floor fixes and other relevant construction works and then to set the prices of the company to be attractive for clients compared to other companies locally and internationally.

Promotion

OSCO depends on a promotion plan that ensures good spread for the company's work into Kuwait. Promotion plan includes advertising for the company's projects and services into Kuwait by using many advertising channels targeting both public and private sectors to develop effective advertising plan and reach as many customers as possible. The company depends on media channels such as TV, radio and the internet to recognize people of Kuwait with the company's strengths and abilities. The company aims at using more advertising channels than competitors in the Gulf area use as it will focus on promotional products to be delivered to project managers, engineers, public customers and companies. A sponsorship is going to be done during February to support Kuwait national day celebrations. A charitable initiative is also going to be done by the company for charitable events in Kuwait such as Ramadan and support for cancer. Print media and website media are going to be well designed and presented for Kuwaiti people. (Taylor and Smith, 2004)

Place

OSCO depends on the place factor as Kuwait construction market is a Gulf market which is not completely different from Oman's while Kuwait building and construction tends to be very modern but modernization is also found in Oman. Place is well chosen by the company because Kuwait besides being a Gulf company, it is a rich company with good construction activity as the Kuwaiti government has announced that the projects of building constructions are participating with a very big share in Kuwait's economy estimated with 42% of the construction projects pie of the year 2015 as they express the township project development in Kuwait that is included within the Public Authority for Housing Welfare that is aiming at providing the public national with affordable houses in addition to the infrastructure.  (Thebig5hub, 2015)

Process

The company's planning process depends on four major orbits which are: the company's current situation, what is needed for improving it, the future target of the business, which ways should be followed to reach competitive advantage and how to use these ways effectively. The company has a processing plan that employs all the available resources of the company to apply it in addition to a time schedule for ensuring the time needed for each process involved within the marketing plan needed for entering the construction Kuwaiti market. The current market situation is first analyzed and then an action plan is set to specify the different activities to be done. (Entrepreneurial Insights, 2015)

Positioning

OSCO depends on its position in Oman and Asia to build a brand position in Kuwait where there are many customers already know the name and brand of the company as its projects are well known around the Gulf area and Asia. Emphasizing the current distinguishing features of the company can be used for positioning it in Kuwait via advertising means and this can ensure its credibility. Positioning can be based on discussing the Kuwaiti market and its needs in order to compete other business entities in the field of construction by assuring the best services provided by OSCO to clients in Kuwait.

People

The company depends on a well trained staff for invading the Kuwaiti construction market, they are well trained and prepared including engineers and workers in all construction fields. The staff includes effective human resource managers that focus on training the employees such as those working in the customer service and in the sales management. The company focuses on Kuwaiti customers as they are targeted by its plan to market for its services in Kuwait and it focuses on their love for modernization in building and construction field.

Designing the E marketing strategy

Product and Brand Strategy

The company intends to use e marketing as a means for implementing the marketing plan successfully. Many elements will be addressed by the e marketing strategy including  online websites for the company that includes its plans and intentions in developing and upgrading the construction industry in Kuwait in addition to a declaration about the company's done projects and the services it provide its customers with. E marketing can be used to enhance a place for the company online through being available in banners' ads and being existed in the construction related sites by providing online advice through the company's consultants. Increased information will be provided for customers about the company, its business and the fields and services it can provide them with through the sites found online and the online advertisements. (Fowler, 2015)

Online Advertisements

The company will focus on the ads found online to prove its existence to all people of Kuwait so all Kuwaiti forums, Facebook pages, Instagram, Twitter and websites related to engineering and constructions or those related to people interested in home designs, landscape, interior designs and building will be used for advertising for the company using different advertising channels such as banners, You tube commercials and discussions where consultant from the company will work for giving advice to young engineers and those interested in the company's facilities and services from Kuwait.

The internet as a promotion element

The company will use the internet to send a message to people about the business of the company and why it is investing in Kuwait, this will be for building a customer business relationship build on trust and understanding as when customers realize that the company is respecting Kuwait and its history as a Gulf country and is intending to present its services for the country to meet the Kuwaiti taste and the taste of  a Gulf country people. (Yannopoulos, 2011)

Designing the marketing channel

Customers' needs

Kuwait is a country with a high GDP and the customers are enjoying good construction projects by many companies inside and outside Kuwait. There is considerable successful construction development in Kuwait and this raises the level of quality and creativity customers need regarding construction and all relevant works such as plumbing, electricity and mechanical works. There is a high need to support the infrastructure with modern technology in construction works.

Channel Objectives

1. Providing the market with job opportunities.
2. Providing creative solutions for housing projects in Kuwait.
3. Minimizing the shipping distance of the channel and decreasing the handling amount between Oman and Kuwait for the materials used by the company.
4. Choosing a suitable shipping company for reducing costs.
5. Establishing a competitor channel in a country strong in construction projects.

Major Channel Alternatives

There are some intermediaries for carrying the channel work such as marketing agencies, offices, contracting firms and exclusive distributors. (Rosenbloom, 2011)

Designing the integrated marketing communication

The company tends to develop an effective integrated marketing communication program involving an advertising program and a program for relationships of the company in Kuwait such as relationships with other firms that can share in helping the company make a successful promotion campaign.

Communication platforms

Direct Marketing

The company uses the direct market of Kuwait to market its services through many direct channels such as companies that have partnership with Oman Shapporji in Kuwait.

Advertising

Advertisements are used for making communication relationships with the customers in Kuwait through reaching as many people as possible and the company can target different types of clients to address via advertisements as they can be directed to engineers and contractors or for ordinary people who can find the merits of the company and recommend its services to other companies.

Sales Promotion

Sales promotion is used as a marketing platform for increasing the communication policy with all stakeholders and to open new horizons for the company in Kuwait. Sales promotion will focus on the achievements of the company in Oman to address the availability of doing other resembling achievements in Kuwait.

Public Relations

Public relations depend on the company's relations with different facilities of Kuwait and different construction agents in addition to the relations of the company with the public clients through charitable participation, sponsorships campaigns, donations and participation in the events that are interested to the public in Kuwait such as festivals of February and Ramadan and sports activities of the famous football and other sports clubs there.

Steps in marketing communications program development

To ensure the success of the program, there should be the following steps to develop it:

1. Focus on the target audience of Kuwaiti and non-Kuwaiti potential clients, their needs and expectations.
2. Designing a message for communication which is quality and innovation are the main policies of Oman Shapoorji.
3. Establishing a budget for communication platforms.
4. Measuring the results and evaluating them. (Pelsmacker and Kitchen, 2004)

Detailed action plan

Activities	Start Date	End Date	Description	Objectives	Who is responsible	How
Message platform	1-1-2016	1-2-2016	Invading the market of Kuwait by the message of quality which reflects the company's policy.	Ensuring the good innovated work of the company.	The human resource management of the company.	Using media channels, websites and social media.
Positioning	1-2-2016	1-3-2016	Taking a position among construction companies in Kuwait.	Showing the best of the company's abilities in Kuwait's market.	Marketing agents and distributors	Using advertisement and public events to reach the public and private companies
Brand implementation	1-3-2016	1-4-2016	Providing some participations in the Kuwait community events such as charity and social events	Building a brand relationship with the Kuwaiti customer	Marketing agents and management	Using the public events and associations and advertising channels
Evaluating success	1-4 -2016	1-5-2016	Measuring the market and customer ability to engage the company into marketing business	Recognizing the level of success of the marketing strategies to improve it when needed	Management of the company	Using online questionnaires and surveys in addition to making discussions with engineers and contractors.

Evaluation and recommendations

The current marketing plan should be evaluated according to the outcomes and reactions of the addressed audience and expected clients. The purpose of evaluation is to measure the degree of effectiveness of the marketing plan and the strategies used within it and to find the best and worst solutions used during the time duration of the plan. All stakeholders should be engaged during the different monitoring stages as all activities should be monitored and results should be investigated. Evaluation is to be done on two stages: at first evaluating the process and how marketing is achieved and the second stage is evaluating the outcomes of the marketing plan. All the marketing mix elements should be evaluated in order to find out any shortage or problems that may face the business when being implemented in Kuwait. Evaluation shouldn't neglect any part of the marketing plan and it should be done over time stages and time planning. 

Consumers behaviors regarding the services provided by OSCO should be evaluated and measured, they should also be analyzed in order to find out the percentage of the acceptance of the company and its services in Kuwait, how far they find the services are convenient to Kuwait in their prices, level of quality and other relevant important information such as innovation and providing new services for Kuwaiti people. Evaluation should be applied according to a program for evaluation and this should be done through some steps including engage stakeholders in the evaluation process, describing the marketing plan, determining the purpose from the marketing plan, gathering suitable evidences about the level of acceptance to the service after monitoring and investigating, justifying the reached conclusions and ensuring the lessons learned and making the important needed implementations.

It is recommended that the company should reach conclusions that are clear and can be understood in order to find out the reasons for any shortage in the plan. The company should make comparison studies and researches about how construction businesses opened new markets in other areas or countries and how they used proper marketing plans for setting a position for themselves in the new markets. Their plans should also be studied to reach lessons and implementations that can be added to the company's marketing plan and change it to the better. It is recommended to do more researches to find out how this current marketing plan can be improved and developed. It is recommended that the company finds out new innovative and creative ideas for marketing to be added to this plan in order to match any new idea that may appear in the market related to constructions and the relevant activities to this industry such as any new advertisement technique or any suggestions related to human resource management to reach better levels of success to the marketing plan.