Question

Apple Inc. is an American multinational technology company hired you as Marketing Manager of Saudi Arabian Region and you have to answer the below question from your own words:

a. Environmental Analysis

(Conduct an environmental analysis that looks at and comments on Saudi Arabia and your network of business contacts, competitors and customers.)

b. Target Market Analysis

(Identify the target market, describing how the company will meet the needs of the consumer better than the competition does).

c. SWOT Analysis

Conduct a SWOT analysis for Apple company based on your research.

Strengths: List the strengths of the business approach;

Weaknesses: Describe the areas of weakness in the company's operations;

Opportunities: Examine factors that may improve the business's chances of success;

Threats: List the external threats to the business' success.

d. Marketing Mix (4 P's ) Analysis

Describe each of the 4Ps of your chosen company.

Product or Service

Identify the product or service by what it is, who will buy it, how much they will pay for it and how much it will cost for the company to produce it, why a consumer demand exists for your product, and where the product sits in comparison to similar products/services now available.

Place

Identify the location of the business, why it is located there (strategic, competitive, economic objectives), the expected methods of distribution, and timing objectives.

Promotion

Describe the type of promotional methods that will be used. Identify techniques such as word of mouth, personal selling, direct marketing, sales promotion etc. television, radio, social media and newspaper ads.

Price

The prices of the products or services that reflects the overall company strategy. Should be competitive as well as a reflection of the quality, costs and profit margin.

Answer 1

ECONOMICAL OVERVIEW: Saudi Arabia is a politically stable country, which follows absolute monarchy. Saudi Arabia has the second largest oil reserves and sixth largest natural gas reserves in the world. It is the second-largest petroleum exporter in the world. Saudi Arabia has strong international assessments of the business environment. Industrial is the main sector, which is driving the economic growth of Saudi Arabia.Saudi Arabia is highly dependent on oil revenue, which is one of the main challenges. If oil prices go down, it directly affects the country’s GDP. Another challenge for Saudi Arabia is low R&D investment.

SMART PHONE REVOULTION : A report of the Kingdom’s smartphone users produced by On Device Research suggested that by the end of 2019, 90 .5% of the population – nearly 27m people – owned a smartphone, and 97% of users used their device to access the internet on a weekly basis. Significantly, smartphones have rapidly overtaken more established technologies as the primary means by which Saudis access the internet. According to Global Media Insight, a UAE-based digital consultancy, the number of people accessing the web through laptops and desktops decreased by 17% in 2018, while the number of people going online via their smartphones rose by 19%. More Saudis now access media through their smartphones than any other channel, including television, on-demand TV, radio, newspapers and magazines. The commercial implications of this development are significant; as a result, establishing exactly what Saudi smartphone users are doing with their devices has become of paramount importance to a range of industries.Thus the vision to launch a significant product which owes a class in rest of the market will definitely mark a place in the revolution of shift from android to iphone users.

NETWORK OF BUSINESS CONTACTS : Having good relationship with the high volt of saudi business tycoons will help me in launching the Apple Products . Top companies like SAUDI TELECOM COMPANY are over a good connect with me and so tieups within their network will ensure us a very good and wide launch to the Saudi maerket. Other business legends ruling the market are National Commercial bank,Al-RAJHI BANK , since having good connect with their top management they will also support us through providing loans to the franchise investors in a less interest rate which will make our product more available at ease in the market.

PROSPECTS

HIGH LEVEL OF SMARTPHONE USE, CHINESE BRANDS APPEALING VIA AFFORDABILITY

In 2019, feature phones continued to slump in Saudi Arabia, with a double-digit decline in sales, while smartphones saw further growth in popularity, and a positive performance. Saudi Arabia ranks third globally in terms of smartphone usage, with almost three-quarters of the population using smart mobile devices.

SMARTPHONES SEE INCREASING APPLICATION ACROSS SAUDI SOCIETY

The number of people accessing the web via laptops and desktops decreased by 17% in 2018, while the number of people going online via their smartphones rose by 19%. An increasing number of Saudis now access media through their smartphones rather than any other channel, including television, on-demand TV, radio, newspapers and magazines.

ONLINE PAYMENTS’ GROWTH TO BOTH BENEFIT FROM AND CONTRIBUTE TO INCREASED SMARTPHONE PENETRATION

Saudi Arabia has announced the largest 5G commercial roll-out in the Middle East and North Africa (MENA) region. The roll-out will make over 1,000 Mhz total spectrum available for cellular services, while around 10,000 5G base stations will provide Saudi consumers with MENA’s fastest and most extensive 5G coverage.

COMPETITIVE LANDSCAPE

HUAWEI THE ONLY MAJOR PLAYER TO SEE VOLUME SHARE GAIN THANKS TO INNOVATION

United Matbouli Group continued to lead sales of smartphones in 2019, thanks to its well-established brand Samsung. Samsung offers a wide variety of smartphones with different features, options and prices to meet the needs of Saudi Arabian consumers.

OPPO INVESTS IN BUILDING SAUDI PRESENCE

Despite economic turbulence, the high penetration rate of mobile phones in the country represents a major reason why mobile companies have invested in launching products, or increasing their brand presence in Saudi Arabia. OPPO arrived in the country in January with the launch of the R17 series.

SPECIALIST OUTLETS TO RETAIN LEAD BUT ONLINE SALES SET TO SEE GROWTH

Over the forecast period, as the mobile phone market is heavily populated with international brands, Saudi’s smartphone market will be an interesting space to observe. Domestic tech start-ups will use new smartphone functionalities as a base for the development of their own products and services, which will further contribute to smartphones’ uptake in coming years.

Target Market Analysis :

The Trends of Apple’s Target Market Demographics

Men outnumber women on a 2:1 basis when it comes to purchasing Apple products.
The average age of an Apple customer is 35-44.
1 in 4 people in the 18-34 age demographic express a strong interest in purchasing an Apple product at some point in the next 6 months.
Apple users are 94% more likely to be affluent than others who utilize mobile devices on a regular basis.

When this comes to Saudi the 18-44 age group rules the split of population with nearly 64% of the total population which shows the probabiity as well as the opening we are having to rule the market after its launch.