Production Adaptation And Modification Marketing Essay

The project is related to marketing research regarding launch of Trish McEvoy Perfume in the foreign market that is UAE. The marketing techniques are discussed in the research where the product could be launched successfully. The company has its stores across three nations which are United States, United Kingdom and Ireland. The company is trying to setup its store in the luxurious market of UAE. The company has developed a marketing plan in which various techniques are provided to take care of prior launching the product. The product adaptation technique is based on the product component model where three components are present which are core component, packaging component and support service component. The next step is related to promotion mix where various promotional tools are discussed in order to promote the product, distribution of the product is also described which basically covers all over from origin to the destination place. There are numerous channels of distribution which are discussed in our marketing plan. Last but not the least there is description related to price determination where the roles of transportation costs, handling expenses, insurance costs, custom duties and retail price are discussed.

General Introduction-

Trish McEvoy is the renowned makeup artist and a kind of innovating entrepreneur who was born into beauty through her grandmothers Berlin Perfumery. Trish McEvoy was founded by her at the age of 25 and also turned the start-up into a multi-million dollar company in five years. Trish was famously known for the Power of Makeup from her first job to the hosting house makeup workshops. In the year 1978, she opened nation’s first medispas in New York City. This Care Centre was basically opened with the partnership with her husband who was a renowned dermatologist. In the market of major business conglomerate, trish was independent from years and also manages all the operations of the company. There is a vast collection of cosmetics, organizational accessories, skincare, and fragrance which can be found inside more than 200 luxury stores and boutiques throughout the US, Ireland and UK. (The power of makeup, 2012)

We will be describing about the marketing plan of the company as Trish is planning to start a boutique in the luxurious country like UAE where people believes in luxury. There are various aspects seen in order to check the versatility of the product in the international market.

Marketing Background of UAE-

The United Arab Emirates is basically a federation which is situated in Arabian Peninsula Gulf. UAE shares land border with the countries namely Oman and Saudi Arabia. Lead Generation and internet marketing has an astounding potential of influencing people where UAE consists of nearly 3.8 million internet user and also it was reported that internet advertising marketing size is nearly $US 6.6 billion. According to recent surveys and reports, it was found that 56% of people residing in UAE perform online research prior buying anything and 46% also claimed that they used the report of this kind of online review prior buying anything.

Social Networking sites are more popular in the country where there are more than 2.3 million Facebook users. Search Engine market share is basically lead by Google with majority share of 89.9% which is followed by Bing and Yahoo. Ecommerce could also be the best option among the international business entering into the market of UAE where 52% of people are online shoppers that is they did not found the product at offline shops so they shop it online. Mobile Internet is also gaining market share for marketing where more than 11 million mobile phone users are residing in UAE. Smart Phones are introduced by the mobile companies which provide internet on run that helps in accessing internet anywhere.

Marketing Plan-

Production adaptation and Modification-

Product adaptation is the process where a company setting their brand as international brand and entering into an international market, so in order to meet various standards of the international customers they have to basically adapt the product with respect to individual or regional market. There is a need to establish a brand which can be applied globally or could be altered in order to fit in the local markets. The Trish McEvoy is an international brand which has prior experience of the international market as there are stores situated in United Kingdom and Ireland. The core component of the Trish McEvoy is beauty skin care products from where it has started their journey. The service of the company decides how well company could perform at international market. Many of the organization make mistakes like taking their successful product out from the domestic market and launching it in the foreign market. As Trish McEvoy products are manufactured according to the needs of the US people, so little modification is needed in order to get their products accepted in the UAE market as there are many difference in physical features of UAE as compared to US people.

According to the Product Component model, there are three components which are described as follows-

Core Component –

The core component designs the platform for the product where Trish McEvoy has beauty skincare products as its core product.

Packaging Component –

In this part of the product component model, the company like Trish McEvoy takes care of the trademark, brand name, Price, Quality, styling and Package. All of the above should be with respect to the foreign market where the product is being launched.

Support Service Component –

This is not in the case of Trish McEvoy where it deals with the repair and maintenance, warranty, deliveries etc. The company basically manufactures beauty products which does not support services component.

Promotion Mix-

There are basically various tools for the promotion as the company could use various promotional tools to enter the foreign market. The market promotion tools which should be used according to the present scenario of UAE will be-

Social Networking Sites-

These are the present best promotional tool which can be used in any country across the globe. There are around 2.3 million Facebook user in UAE out of which 66% are male and rest are female. The UAE facebook users generate 2.7 billion page views each month and this could be the best way to promote the product as according to my views.

E-Commerce-

This is the second promotional tool where 31% of UAE customers accepted that they have used online shopping for the products which were not available on the offline shops. There is a tremendous potential for the internet marketers in order to gain the advantage from the gap left by the UAE shopkeepers. (Lead Generation and Internet Marketing in UAE, 2012)

The total cost of the promotional tools will not be that much as the two most important promotional tools are working online which requires not such big investment. There will be small investment in both the tools where both the tools are online. The promotion should be cost effective as if a particular company is getting cheap promotional tool then there should be not much spending on the promotional tools instead they should invest in some other place where results could be improved.

Distribution-

Distribution is also one of the steps of the marketing research where all the procedures are taken care from the distribution from origin to destination place. There are various steps taken for the distribution of the product in the foreign market which could be described in below steps-

Labeling Regulations-

Basically, the government of UAE enforces a shelf like standard for more than 100 products. There are manufacturers present in UAE which are established shelf life are accepted for other food products. The manufacturers should provide print production and expiry dates with the original label.

Documentation Required –

When a international brand is entering into UAE market, there are various rules and regulations which has to be followed by the company. The documentation which is required while entering the foreign market is to provide print production and dates cannot be altered after the fact. The supplier from United States is advised to work closely with the importer in order to make sure that requirements of local shelf-life are fulfilled. (International Marketing Strategies)

Insurance-

The product should insured before it is launched in the international market as it would try to provide safe side to the company and there is minimal risk in this. The product could be insured in either of the country. It is one of the important step that is taken by the company before falling into international market.

Channels of Distribution-

There are basically two kinds of distribution channel which are prime importance and we will be selecting one for the Trish McEvoy as the other one could be cost effective. The two distribution channels are –

Retailers

Wholesale Middlemen

At present time, most of the companies are avoiding the second option as it increases their own cost. The company used to prefer opening a retail shop of its own and try to cut an extra cost of Wholesale middlemen. Trish McEvoy is also trying to apply the same concept with their products as it could also help them to cut the cost which results in forcing them to concentrate on their basic business.

Price Determination-

The last but not the least and one of the most important part of the market research is Price determination which also depends on various factors such as transportation costs, retail price, handling expenses and custom duties.

The transportation cost could be determined through various facilities available to transfer product from origin to destination place and at the minimum cost. The transportation cost in UAE is much lower as compared to other countries as fuel rates are also one of the important factor. The cost of shipping has doubled in the last 12 month where shipping of 20ft container from Jebel Ali to Rotterdam which is considered as the Europe’s largest port costs Dh3,300 while same 20 ft container cost Dh1,780 in the past few months before.

The company like Trish McEvoy also handles expenses in the foreign market which could be important in the later stage of recession.

The custom duties in United Arab Emirates are bit relaxed as compared to other countries where rules and regulations are bit harsh. Therefore, UAE is the most wanted place for this purpose. There is basically 10% import duty on luxury items and rest of the products 4%.

The insurance cost of the company should also be determined prior launching into foreign market as the product should be safely launched. The company could not take risk regarding foreign market. So, there is bit investment needed in the insurance cost.

The retail price could be determined through various surveys and reviews provided and also observe according to the market cost. (What is Product Component Model, 2012)

Recommendations-

We have discussed about the marketing strategies which should be applied by the company like Trish McEvoy in order to setup existing international brand in the luxurious foreign market of UAE. Some of the recommendations which would be helpful in some or the other manner are-

The company should try to cut the cost through removing middlemen at all the levels and try to establish contacts directly with the customers.

The company should also promote their product at all levels and not consider it as less important tool.

There are many price determinations technique which should be prior taken into consideration that is before launching the product in the foreign market.

The company should also take care of the culture, religion, caste and other things related to the specific region and make their promos according to the same.

The rules and regulations should be strictly followed in order to avoid any massacre in the foreign market which could lower down the brand image.

Conclusion-

The Trish McEvoy has readily explored itself in the foreign market in order to setup an international brand; the company has set up their brand in very short span of time which is impressive from their part. The company has setup its stores all over in US and some of the parts of United Kingdom and Ireland. There is proper marketing needed when a company goes down to launch a product in foreign market to make sure that they does not face any fall down. The company has setup a marketing strategy where Product adaptation is described where product component model is described, Promotional tools are discussed which basically discuss two promotion techniques used by the company, Distribution and various channels of distribution and at last price determination which probably decide the future of the product.