Marketing Management - Abdullah AlOthaim Markets

Running head: MARKETING MANAGEMENT
To analyze the development of a market entry strategy for Abdullah AlOthaim Markets to
launch the organic food product in Saudi Arabia

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Executive summary
The main purpose of this project is to analyze the development of a market entry strategy for
Abdullah AlOthaim Markets to launch the organic food product in Saudi Arabia. Further,
different research method is used to systematic analysis of the project. In this way, case study
research method and literature review method is used as research methodology to complete the
research. It is also evaluated that both qualitative and quantitative research methodology is used
to analyze the data in a methodological manner. Further, secondary data collection is used to
gather the data from different existing resources. Along with this, content data analysis is used to
analyze the pooled information. From the result of the finding, it is analyzed that inflation rate is
declined in Saudi Arabia that is beneficial to launch the organic food products. In the last, it can
be recommended that management should use effective market entry strategy to launch the
organic food product in Saudi Arabia.

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Table of Contents
Part 1 Project Statement..................................................................................................... 4
Background.................................................................................................................... 4
Project topic................................................................................................................ 4
Purpose of this research.................................................................................................. 5
Literature review.......................................................................................................... 5
Research methodology................................................................................................... 5
Part 2: Project Report........................................................................................................ 5
2. Literature Review...................................................................................................... 5
3. Research methodology.............................................................................................. 10
3.1 Case study method.............................................................................................. 10
3.2 Data collection................................................................................................... 11
4. Presentation of findings............................................................................................. 12
4.1 Analyzing the data.............................................................................................. 12
4.2 Reflection on findings.......................................................................................... 19
5. Implications and recommendations............................................................................... 21
6. Conclusion............................................................................................................ 22
References................................................................................................................... 25

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Part 1 Project Statement
Background
Abdullah AlOthaim Markets is joint stock Corporation that is existing dealing in Saudi Arabia.
Its core activities are grocery stores, malls and wholesaling. It also deals in approximately 183
stores, 13 wholesale outlets, 27 convenience stores, and 143 supermarkets and hypermarket in
Saudi Arabia. Abdullah AlOthaim Markets had completely changed from Private Corporation to
public listed corporation (Abdullah AlOthaim Market, 2017). It is analyzed that market share of
Abdullah AlOthaim Market was 3.4% in Saudi Arabia in 2014 that was increasing. Further,
revenue of Abdullah AlOthaim Market is US$1.4 billion in 2015 that shows the higher market
growth.
Project topic
Abdullah AlOthaim Markets will launch the organic food product into the market of Saudi
Arabia in order to increase their business growth. Initially, the company faces different issues
due to tough competition from local competitors who already presented in the retail sector of
Saudi Arabia. These competitors are Al Raya, Carrefour, Bin Dawood/Danube, and Panda which
also focuses on organic food products. In the current scenario, the economy of the nation is doing
well hence its competitors has rapidly grown in the market by launching their products and
services in Saudi Arabian market (Al Mallakh, and el Mallakh, 2015).
There are different opportunities for Abdullah AlOthaim Markets that motivates it to launch the
organic food product into Saudi Arabia. These opportunities are gaining access to a large number
of new customers, lowering cost and enhancing the competitive position of the company in the
organic food retail market. This market development strategy will also provide an opportunity to
capitalize the organizational capabilities and core competencies to the company. Consequently,

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Abdullah AlOthaim Markets should analyze the development of a market entry strategy for
launching their organic food product in Saudi Arabia because; it will aid the company to
generate the higher revenue and growth (Alrashidi, 2016).
Purpose of this research
The key purpose of this research is to gain understanding regarding the development of a market
entry strategy for Abdullah AlOthaim Markets to launch the organic food product in Saudi
Arabia. In this way, this research identifies the different modes of market entry and also
addresses the factor affecting the selection of entry mode. This research also recommends the
strategies to avoid the factors which may affect the selection of entry mode.
Literature review
The following theories (concepts or frameworks) that relate to this topic are:
Market entry strategies
Transaction cost theory
Research methodology
For collecting the qualitative data, 3 case studies will be selected related to the research topic. It
is beneficial to get the data regarding the development of a market entry strategy. For
quantitative data, different online sites will be used to statistical measure the information
regarding research issue. Further, secondary data will gather from government publication
(Export.gov, 2017), online websites, and company websites. These data would be effective to
support the quantitative information.
Part 2: Project Report
2. Literature Review
Development of Market entry strategy

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This chapter offers detail understanding regarding conceptual structure for the thesis. It also
focuses on different concept and theories that are appropriate in foreign market entry tactic.
There are different ways of market entry by which Abdullah AlOthaim Markets can launch the
organic food products in Saudi Arabia. These are direct and indirect export and production in an
international market. According to Ayden et al. (2018), License is a significant technique in
which manufacturer can engage in expanding international operations beyond exporting.
Licensing is a feasible way for Abdullah AlOthaim Markets to launch the organic products in the
Saudi Arabia because there is lack of difficult to make direct investment and exporting the
organic food products.
In opposed to this, Behar and Ritz (2017) stated that contract manufacturing is another strategy
to market entry. It also entails contracting with the manufacture and gathering of products by
producer who is in the abroad nation. There is need for effective marketing strategy for Abdullah
AlOthaim Markets. This approach can be also implemented for launching the organic food
products and services as it will enable the company to decline the cost of production.
In the view of Michael (2014), management contacting is an effective development strategy for
market entry. This strategy focuses on domestic investors in global market who provide the
capital for a company while a company from outside facilitates the required know-how to
organize the business. This market entry strategy creates low risk for Abdullah AlOthaim
Markets in case they use a different type of purchase option.
On the other hand, Boddewyn and Boddewyn (2017) stated that the decision of manufacturing in
the overseas market creates an obligation for Abdullah AlOthaim Markets to launch the organic
food products in Saudi Arabia. Since, there are high market demand, government restriction, and
competitive pressure on the import of products and services and government actions. These are a