Segmentation
Rettab, Brik, and Mellahi note that companies such as Bhatia Brothers Group operating businesses in the UAE use geographic (regional distribution of the consumer markets), behavioural, demographic, and psychographic variables to segment the market and stimulate responses from the customers (4). Bhatia Brothers Group specialises in tourism, hotel, cold stores, education, and franchising business. The company uses psychographic variables of the target customer to identify the right products and services to offer. The variables include self-image, attitudes, values, and personalities to competitively position their products and services in the market. Bhatia Brothers Group segments the market according to the demand for products for each market. Consumers of luxury products are classified among the high income groups. The market has different nationalities whose income is skewed in relation to the male-female ratio with a median household income of AED 11, 241.20 a month of which 14.2% is spent on food. However, marketing executives endeavour to ensure that limited resources at their disposal are used efficiently and effectively to fulfil the market segmentation objectives.
According to Lockamy III and McCormack, Bhatia Brothers Group practises demographic segmentation on the premise that two customers differ according to variations in income, preferences, nationality, cultural factors, social class, age, education, sex, religion, profession, and family life (10). For instance, market intelligence reports show that companies use psychographic variable such as self-image to sell luxury products, attitudes, values, and personalities. People in the UAE are distributed according to class, religion, and income levels, sex, age, and religion with Asians expatriates having the highest expenditure of 63%, UAE nationals occupy 14% of the market, Arab expatriates consist of 14%, and western expatriates making 9% of the market. Segmenting them accordingly has enabled companies to know the differences in consumer behaviour and competitively delineate the market based on observable consumer characteristics (De Mooij 23).
Market segmentation is also done according to the rate at which products are used besides factoring the brand loyalty and social and economic status of the users. Segmentation is based on company size, industry size, and the buyer purchasing behaviour. The criterion for segmenting such markets includes accessibility of the market through communication and distribution channels, situational factors such as urgency and seasonal trends, the size of the target market, the probability of generating enough profits, unique customer needs, and compatibility of a firm’s resources.
Targeting
The company targets those market segments that can lead the company to generate enough profits. Rettab, Brik, and Mellahi argue that Bhatia Brothers Group segments the market by first creating the target marketing which consists of the right segment to enter (7). However, to be successful, the important parameters that been used include understanding the structure of consumer demand, consumer needs, how to serve the market, and what to offer. Besides, companies engage in activities that enable them to generate actionable data for market segmentation by analysing competitor information (Rettab, Brik, and Mellahi 10). A summary of the steps for market targeting include providing quality products, identifying the market, financing the market, and accurately evaluating the competitors. In addition, the companies invest in the assessment of target markets and segment them according to growth and size besides segmenting the market according to the five forces of power of suppliers, substitute products, power of buyers, and level of competition, and the power of buyers.
The procedure for target marketing involves researching into the four basic strategies of differentiated marketing (making different offerings), concentrated marketing (directing marketing efforts to a specific market niche), undifferentiated marketing, and mass marketing (attempting to sell in the entire market without regard to market segments). For mass marketing, companies sell products to the mass market using persuasion to appeal to the customers to reach the largest number of customers in the country. The rationale is to discover those customers ready to consume the products being offered and to be able to develop the right products for the customers.
Besides Bhatia Brothers Group, the are many opportunities in the UAE that companies endeavour exploit by targeting high income earners. For instance, the target market for coffee brands involves wealthy customers who provide a good market for sustained profits. The growing demand for coffee enables vertical integration.
Companies in the UAE exploit the concept of brand affinity to successfully target the market. Besides target marketing is done by teams and executives using customised messages for specific consumer groups based on consumer similarities and preferences. The underlying element is product positioning that identifies the customers, their needs, and the best products and approaches to satisfy them.
Branding
Branding is done to distinguish Bhatia Brothers Group’s products and services from those of their competitors. It has been established that companies brand their products using brand expressions that constitutes the three elements of brand identity, personality, and positioning. The underlying paradigm is to differentiate their products by creating strong brand affinity. Brand affinity is developed by using labels on products that generally describe a product and those labels that provide specific description of a product (Rettab, Brik, and Mellahi 11). The rationale is to use the affinity to distinctly appeal to the customers to develop strong relationships with the brand. The key brand dimensions that company specialists consider when branding include brand ego, functionality, empathy, association, society, and functionality. Stephenson, Russell, and Edgar have noted that it results in the development of unrivalled brand loyalty by using themes that reflect the culture, sex, religion, and other variables that define the uniqueness of the UAE society (21).
Branding involves brand recognition that does not only involve brand awareness, but brand perceptions as well. The rationale is to distinguish brands from others based on brand discrimination. Companies use, navigation points, landmarks, and situations to ensure strong brand loyalty.
Communication
Bhatia Brothers Group and other companies operating in the UAE know how to create the right messages to communicate with the customers (Rettab, Brik, and Mellahi 14). The aim is to persuade customers of their products and services with the aim of influencing them to purchase the products or services being offered (Jamal and Naser 13). The underlying objectives are to audit brand performance, establish target audience profiles, create brand awareness, and develop unique selling positions.
The communication strategies include using advertising platforms that include the social media to communicate to promote ideas by expressing the benefits a customer derives by consuming a certain product. Most companies in the UAE use the marketing communication mix of personal selling where oral representation is used, advertising on different media outlets, sales promotions to stimulate positive responses from the buyers, and use public relations programs to maintain their market presence. In each communication strategy, the elements that are unique include gathering information about the target market, messages that convey solutions when a customer consumes a product, sharpening the brand look, communicating consistent messages to the customer, and using the right marketing mix to inform the market of existing products. The marketing communication mix that is applied includes the media, advertising, public relations, sales promotions, personal selling, sponsorship programs, and use of direct response marketing.
Positioning strategies
Different positioning strategies are as diverse as the companies operating in the UAE market environment. Some companies use the statement “pay less + expect more” to position their products in the market (Patwa, Dhoot, and Sundaram 20). The rationale is to solve marketing mix problems by communicating the right messages intended for the target market by use of product differentiation, documentation, and delivery mechanisms to competitively position products in the market (Rettab, Brik, and Mellahi 15). A good positioning statement shows clearly articulated customer benefits and competitive differentiation. Besides, positioning is done by closely linking the positioning process with branding. In addition, positioning is done to get messages into the mind of the customers by introducing multiple products into the market.
Recommendations
In conclusion, the recommended strategy for Bhatia Brothers Group involves defining the target market, evaluating market forecasts, establishing long term relations with the customers besides evaluating the political, economic, social, technological, environmental, and legal environments to determine the right marketing strategy. It is crucial to continuously conduct a SWOT (strengths, weaknesses, opportunities, and threats) analysis to develop the right marketing strategy besides integrating segmentation, communication, positioning, and branding elements into the proposed strategy.
Works Cited
De Mooij, Marieke. Consumer behavior and culture: Consequences for global marketing and advertising, New York: Sage, 2010. Print.
Jamal, Ahmad, and Kamal Naser. “Customer satisfaction and retail banking: an assessment of some of the key antecedents of customer satisfaction in retail banking.” International Journal of Bank Marketing 20.4 (2002): 146-160.Print.
Lockamy III, Archie, and Kevin McCormack. “The development of a supply chain management process maturity model using the concepts of business process orientation.” Supply Chain Management: An International Journal 9.4 (2004): 272-278. Print.
Patwa, Nitin, Abha Dhoot, and Akshay Sundaram. “The Effect of Emirati Culture on Western Cosmetics Buying Decision: A Strategic Marketing Analysis.” i- Manager’s Journal on Management 8.2 (2013): 14. Print.
Rettab, Belaid, Anis Ben Brik, and Kamel Mellahi. “A study of management perceptions of the impact of corporate social responsibility on organisational performance in emerging economies: the case of Dubai.” Journal of Business Ethics 89.3 (2009): 371-390. Print.
Stephenson, Marcus L., Karl A. Russell, and David Edgar. “Islamic hospitality in the UAE: indigenization of products and human capital.” Journal of Islamic Marketing 1.1 (2010): 9-24. Print.