Question

Please read carefully.

Your younger sister wants to start a business that sells a product in the UAE. She found a supplier in France who can provide her with one of these products:

- Coffee (for 5 dhs/coffee bag)

- Mascara (for 5 dhs/mascara)

From your own words and understanding of entrepreneurial marketing. There is not right or wrong answer as long as you provide good reasons from your understanding of entrepreneurial marketing.

1. Which product do you advise her to sell? (0.5 point)

2. Why? (1 point)

3. Which approach of pricing do you advise her to follow? What price do you suggest? why?  provide complete explanation with example (1.5 points)

4. which approach of selling you advise her to use (direct or indirect) And why? Where do you advise her to sell? and Why? provide complete explanation with example (2 points)

Provide complete long answers with explanation. Avoid short points, show me your understanding.

Answer 1

1) Coffee

2)United Arab Emirates practices a version of Arabic coffee culture through out the middle east. It is one of the most developed coffeeshop markets in the world . consumers are said to have an appetite for aspirational western brands. Mascara will be brought by only a segment of the population. On the other hand coffee is loved by all.

So it will be better if the sister sells mascara.

3) Sister should use market penetration pricing.

She is trying to enter UAE coffee market.Number of sellers in the market is already large.ln order establish herself as a seller in the market , she should offer something competitive. A low price will be a great method to attract customers.profits will be low at the beginning due to it.But it will help to establish a brand name and will be profitable for her in the future.

4) lt will be better if she does direct selling.

Customers like the imagery of coffee and they do have emotional ties with it.since sister will be a new entrant in the market, direct selling will enable her to form solid relationships with customers. She will be able to do her business at low cost. Risk will also be low.she will be able to have a flexible working schedule . li will also help her to sharpen her business skills and achieve personal growth.

She should sell in retail outlet in a shopping mall since location has always been crucial factor in the success of coffee shops .UAE shopping malls are always filled with people. So she won't have much trouble in getting customers.via Retail shop she will also be able offer the customers a place for sitting when they get tired after shopping, which will also help to boost her sales.