Water bottles from Oman Oasis were selected as the major product for the market. This product specification was related to the mineral water business. Water bottles are considered the efficient supply of water reserves to areas where large storage tanks are not accessible. The product includes a plastic bottle that has different capacities for water. Its material is plastic which can be recycled for other uses besides the storage of water (Cheng & Liu, 2017). The amount is classified on the base of milliliters. Approximately three or four sizes are present for water capacity. The use of this product is to provide hydration to people on economic standards.
The current stage of the product life cycle is the final route because the design has been proposed and most of the items are sold commercially to the consumers. This product moves from the consumer stage and follows up the production and recycling stage to storage (Xu, et al., 2016). The product life cycle is connected with the initial point of manufacture. Simple technology is required to fabricate the plastic pet bottle. The material is also economic and friendly to human health.
The prospective consumer country in Africa where this product will be introduced. The consumers will be teenagers and middle-aged people because the need for water is higher in the African environment (Gao, et al., 2015). The selected market will apply adaption to the consumer product because the Oasis water bottles have a different design to store water bottles. The three major designs for providing ample amount of water is the strength of Oasis company.
The Oasis water bottles have been selected for the introduction of the produce in the environment of Africa. Africa is a developing country and the need for drinking water exceeds the expectation as most the people have less reach to the water (Dibrell, et al., 2015.). This study the market of the selected country and its demographic conditions.
2.1 Identification and critical evaluation of major environmental influences
The internal environment of Africa constitutes the bodies responsible for providing drinking water. This product will analyze the internal market based on the market policies and distributors. If the internal environment is balanced then it will give an advantage to the product market (Hoareau, et al., 2017). The internal environment will also research the need for water bottles and the potential number of consumers present in the country.
The external market of Africa will look for the competitors present in the same area for water supply. A number of companies operating will also provide ample information for Oasis company to develop its marketing plan. Water bottles have a potential demand in Africa because rare companies are present on this side for supplying water (Becherer & Helms, 2016). The secondary sources are used by the domestic consumers which are not safe for the whole public.
By introducing Oasis water bottles people of Africa will have the convenience of consumer safe drinking water with the help of pet bottles. This will also increase the use of water bottles for drinking purposes.
The political environment will affect the addition and adaption of water bottles. In Africa, there is an unstable balance of power. The main resources are confined to specific people and most of the inhabitants have less reach towards the market product (Gupta, et al., 2016). The political factor will affect negatively Oasis. In a developing country, there are challenges that product has to face in order to gain an advantage in the developing market.
The legal factors will be a plus side for Oasis company because in Africa legal terms are willing for the imported products (Constantiou & Kallinikos, 2015). This market will prove fruitful for investment as the water bottles will be a perfect idea to target the increasing demand for safe drinking water. This will also affect the sizes of bottles because in Africa fewer competitors are present in terms of the mineral water business.
The technological factor will aid the marketing of mineral water in Africa because Oasis company has developed standard bottles which can be recycled and used for water storage (Lim, 2018). The market competition does not have this technological factor and the market is not revolutionized. The developing situation of Africa provides an opportunity to increase the investment of companies and gather more consumers for water bottles.
Economics will also be an advantage for the product because it will be introduced in a range where more people can have resources for drinking water (Hawn & Ioannou, 2016). The economic environment of Africa is too stable as fewer funds are present to support people’s needs. The company has a great opportunity to use economics to increase the consumer population.
The culture of Africa will be an important factor in analyzing the external and internal market. This will investigate the space market and the need for the Oasis water bottle concept. The bottles will be introduced as a startup and requirements will be managed to have a better response from the African market. This product will have an advantage for all people. The need for safe and reliable drinking water can provide a change in the lifestyle and culture of people.
2.2 Competitor analysis of strength and weakness
The level of competition will be less compared to the developed countries. In Africa, there are fewer mineral water chains working and most conventional methods are used for drinking needs. Oasis products will experience competition from market sellers outside Africa because a link will be present for the drinking water resource (Chen & Miller, 2015). The company needs to expand its water services and manage an effective prize list for customers in Africa.
The top competitor in Africa is Fine waters. The strength of this company is related to the increasing customer relation and efficient supply of water to the customer. The African environment supports the Fine water strategies and this is the reason it is hard for the new entrant to balance the competition levels (Banerjee & Chandy, 2015). The strengths also dictate some negative concerns for the company. The first area is the distinction of sectors in Africa. Fine water has limited regions for the bottled water business. This is confined to the domestic level.
Internationally fine water has less quality as compared to other bottled companies. This is the reason that Fine water does not manufacture the bottles in the same facility. This consumer’s time for final packaging and delivery is affected by the company (Kannan, 2017). Oasis will use this point to position its market because all the bottled business is done under the same facility and there is technological innovation involved in the Oasis company.
2.3 Identification of three modes of entry for the Company
Oasis can use a variety of methods to enter the consumer market of Africa. These modes are explained as:
The first mode of market entry will be franchising the company for a solid place in African Market. This will not only affect the local competitors but also help the Oasis company to lay a solid foundation in Africa without the hassle of supportive formalities (Fernandes, et al., 2014). Oasis will use the local dealers to build a partnership in Africa and all the processes will be transferred from Oman. The investment will remain secure and the market will boost up because of fewer charges for market entry. The product will be sold at the base of retail as a customer can easily have bottled water from stores.
The second model will be a joint venture where the African company will provide Oasis with a place to boost the economy. This will decrease the marketing cost of the company and provide a simple layout for water bottle popularity. In this mode, the product will be transferred from the sales center and open area for the user (Daszkiewicz & Wach, 2014). The company will continue to provide its water bottles to the Africa facility and this will be an efficient method for market entry.
The third model will be a direct entry into the African market where Oasis will have to purchase the license of the mineral water business. This will be a legal activity and it will provide a connection for the company to promote water bottles to the customers (Hernández & Nieto, 2015). The market success will be gathered with the help of promotion and the user will have the freedom to buy the water bottles from the production facility as well as the sales center of the company.
2.4 Identification and discussion of two market strategies in the marketing plan
The market strategies which will be used for the marketing plan will be direct marketing and indirect marketing. The indirect marketing company will provide information about the product and its description to consumers without the second change. The representatives will launch a survey and promote Oasis water bottles to the African consumer.
In the indirect strategy, African media and electronic tools will be used to plan the size of the market and mix (Cavusgil & Knight, 2015). This will be done from the market segmentation as teenagers and middle-aged people will be divided into different groups. The main function of the marketing plan is to plan the marketing activities and propose a path for product development.
2.5 Identification and Evaluation of the degree of risk involved
Oasis will face barriers in the form of cultural and economic conditions to propose the water bottle business to the local market. The first barrier will be the regulation imposed by the African markets. The quality and value will be limited and business rights for the middle east company will also hinder the development of the product.
Another barrier will be the language and promotion sources. In order to market, the bottles all over the countries will be targeted. The language barriers will reduce the advertisement and the cultural tradition will also negate the development of the product. The market entry barrier will also be an area that can provide an obstacle to product development.
In order to launch the product in Africa, Oasis company will address the barriers to market strategies. The first barrier will be removed with the help of a joint venture as the African company will be approached for the major investment and production will be launched through the domestic company. The problem of culture will be resolved with the help of promoting the specification of products to the masses (Stahl & Tung, 2015). The need for water will outlay the difference for the company. The economic condition will be addressed by product development. Bottles will be introduced to cater to different needs in Africa. This will help the people to build trust in the company.
Direct and indirect market adjustments will be made in order to balance the need for the product. This will import the internal and external factors for the African market. The new product will look into the need and economics of people. The Oasis company have product varying on the base of size and design of water bottles.
The risk which will be involved in the exploration of water bottles will be related to the finances and transportation. It will also highlight the threats to quality. The company will be exposed to the risk of quality standards (Fratocchi, et al., 2014). Water bottles will require correct design and storage requirements. If this requirement is not fulfilled then it will affect the reputation of the company.
The design of the water bottles will also be exposed to copyright claims as the company would have to regulate the product. The main threat will be from competitors present in the market. These groups will restrict market entry. The process of export will also be a specific source of risk for the company (Beamish & Lupton, 2016). This will involve a huge amount of finance for a joint venture or partnership. If the initial cost is mismanaged company will face losses in terms of monetary funds.
The risk present in outsourcing and replicating specifications also adds to the Oasis company. This can affect the business areas of the company and reduce the efficiency of business parameters.
This risk can be minimized by maintaining a secure channel with the African market and utilizing domestic sources. The company can export its services in steps to reduce the financial loss and earn more profit from water bottles. The partnership events will secure the water bottles business because in this way one of the business sources is related to the African mineral water chain.
This study involved the introduction of a specific product in a developing country. The selected product for the market was Water bottles from Oasis company and the country was Africa. The section of this country was based on the product demand and requirement. The internal and external environments were identified and analyzed for product suitability. It was found that some area of the environment was productive while few areas negate the inclusion of the product in Africa. The market modes of entry were proposed for the Oasis company. These were based on a critical analysis of the African mineral water market. This was the area that helped the product to have a suitable place in the market. In order to define the market position weakness and strengths of competitors were analyzed. The weakness was the first element of the company’s marketing strategy. Target market strategies were used in relation to a marketing plan and sources of risk were found.
The product development and inclusion will have sources of risk present in the market. These risks will measure the marketing strategies and concepts used by the company. The risk was resolved for the company and it was recommended that mineral water is the best business idea for the developing country. This will not only provide convenience for the drinking water facility but also change the lifestyle of isolated people.
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