Marketing plan for Caudalie products in Saudi Arabia

Résumé du document

Caudalie, founded in 1993 by two people: Mathilde Bernard Thomas and Professor Vercauteren, features products made from grape pips (from wine producer: Laffite), which are considered to be highly beneficial for the skin. Two years later, the duo launched their first range of products. Keeping in mind the quality of this innovation in the market and with the help of an organized strategy, they decided to limit the number of products in order to prevent the market from being saturated.
Ten years down the lane, the company had introduced 35 products and 7 different types of oil under this brand. With a 180 employee strong workforce around the world, this brand was recognized in 25 countries.

In France, this brand is known for its anti-wrinkle products and is ranked third with respect to sales in pharmacy. With its 10 subsidiary companies in the world, its sales has increase by 30% annually and generate a turnover close to 60 million euros. The products are known for the originality of its components and positive feedbacks from the consumers.

Saudi Arabia represents almost four fifth of the Arabian Peninsula and more than a quarter of the oil reserves of the world; it occupies a powerful position at the global level with respect to the world energy.

Though it is a country which boasts almost all major brands on its market, Caudalie is virtually unknown here. Saudi Arabia remains a mystery to the West as the traditions and the behavior codes required of a company remains rigorously religious and faithful to society values.

Even if it comes across as a market subscribing to very different values, Saudi Arabia presents positive indicators which permit the companies to realize huge opportunities encouraged by the regulation changes.

Caudalie continues to progress in America, Europe and Asia and intends to augment its sales by introducing its current products in new markets in Middle East. With the help of Ansoff matrix, Caudalie can adopt a market development strategy.

With the help of Coface and Ducroire groups, the political and the economical prospects of the brand are characterized by a number of drawbacks. A relative volatility of the business environment can affect the behaviors of payment. Coface rating gives the brand an "A" to Saudi Arabia and a "B" for the Saudi business environment.

Saudi Arabia, in spite of its weaknesses, will have to necessarily overcome these shortcomings to consolidate sustainable development and constitute one of the most significant markets in the Middle East on short and long terms. Oil profits enable the country to mobilize financings of proportions inaccessible in many countries around the world.

It appears that the current tensions in the region with respect to the internal situation, the political and economic stability of the kingdom would have an impact.

Saudi Arabia is an absolute monarchy and is controlled by the Saud family. The constitution of the country is based on Koran and Sunna. No demonstration of another religion is accepted and those who express a different opinion are declared apostates and are liable to the death penalty.

The process of political expansion in the Kingdom is accompanied by an economic reform program, one which has been formulated to counter a high unemployment rate (between 10% and 16% according to the estimates). An objective is maintained towards the reorganization of the economy in an extremely favorable context, which is the link to the high pricing of the barrel of petrol. The main areas are:
-The diversification of the resources,
-The "saudization of employment",
-The liberalization and acceptance in the global economy (with accession to the World Trade Organization in December 2005),
-The foreign investments call
-The tourism market development
-The company privatization campaigns.

The Saudi economy remains heavily dependent on the oil sector (30% of the GDP, nearly 90% to exports and 75% of the budget revenue). Saudi Arabia is the leader of the oil market and is the leading oil supplier of USA.

Tags: Caudali products in saudi Arabia, vinotherpay, organic cosmetics market

Extraits

[...] The distribution in Saudi Arabia is increasingly complex and competing. The various distribution networks and means of mass communication exert a growing influence on the Saudi consumer. Like in others countries, the brand can use two distribution strategies: In pharmacies In selective retail stores We can exclude online distribution like we see below. If we compare USA and Saudi Arabia we can see that the USA have an important rate of internet users that can explain the success of CAUDALIE in USA in a first time thanks to online sales, whereas Saudi Arabia has only 22%. [...]

[...] One also sees appearing huge shopping malls projects in Jeddah. If CAUDALIE decides to choose to export it product in partnership with a local agent, it will be easier to sale its products in the most famous shopping centers, where its competitors are already represented. Like for example: SAKS Fifth avenue in Saudi Arabia XII Marketing communication strategy A Advertising campaign As regards communication, the censure remains omnipresent. The visual advertisings must be approved and validated by the committees of censure, and are often readapted. [...]

[...] Moreover the brand noticed that men are also buying its products. It can be another target for CAUDALIE. IX Product strategy A Product selection CAUDALIE should in a first time offer its higher and sophisticated product ranges: All of these 3 ranges are protected by a patent and can give another guarantee to the potential futures consumers. These products like we will see below, are the most expansive ones, from $42 to and can provide the level of the CAUDALIE quality to the Saudi consumer. [...]

[...] C Export issue The law has abolished the sponsor system in Saudi Arabia but it is advice to introduce brands with the collaboration of a local entity. Moreover it can be interesting for CAUDALIE to share the risk with an importer. Often those professionals are associated to distribution networks and can setting up advertising campaigns on local Medias. Finally, it can be a huge opportunity for CAUDALIE to sign a partnership with them in the objective to extend its Middle East coverage thanks to their regional activities for some of them. [...]

[...] D Political Saudi Arabia is an absolute monarchy controlled by the Saud family. The constitution of the country is based on Koran and Sunna. No demonstration of another religion is accepted and those which express a different opinion are declared apostates and liable to the death penalty. E Economical The process of political expansion in the Kingdom is accompanied by an economic reform program in particular fighting against an important unemployment rate (between 10 and 16% according to the estimates). [...]