Tourism Development & Sustainability in Maldives

This assignment delves into the complexities of tourism development in the Maldives, focusing on the crucial aspect of sustainability. It requires students to examine the multifaceted impacts of tourism on the Maldivian society, economy, and environment. The analysis should encompass both the challenges and opportunities presented by sustainable tourism practices in this unique island nation.

Running head: MARKETING MANAGEMENT - MASTERS LEVEL
Marketing Management - Masters Level
Name of the Student
Name of the University
Author Note

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Executive Summary
The present report revolves around the marketing plan of the organization Salsa Royal
located in Male, Maldives. The organization is facing tough challenges in the market due to
certain factors like tight competition, similar product offering, branding and positioning.
Maldives is economically stable and market provides a business friendly environment for all size
of organizations. The following report presents the current situation of the market identifying
organizational strength and capability. Considering the present external and internal environment
of the business, this marketing plan proposed the product called Fish Balls, which is a new item
under the existing the category. As Maldives is observed to be technologically developed, the
organization is advised to select digital media for promoting the product and services. In addition
to this, the firm is suggested to focus on the large market such as the coastal area of Male, which
is mostly crowded by the foreigners.

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Table of Content
Introduction-....................................................................................................................................3
Overview of the company and Product/Service- Salsa Royal.........................................................3
Organizational goals at the product level........................................................................................5
Situational Analysis.........................................................................................................................6
Market............................................................................................................................................13
Market Programs...........................................................................................................................16
Implementation plan......................................................................................................................20
Evaluation and Control..................................................................................................................21
Supporting information..................................................................................................................23
Conclusion.....................................................................................................................................23
References and Bibliography.........................................................................................................24

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Introduction-
The following report is based on the marketing management of the organization Salsa
Royal located in Male, Maldives, which is a fast food restaurant. The organization is facing
some market challenges such as tough competition, similar product offering and inappropriate
market position. As the consequence, the organization is losing its market share. Thus, it is
essential for the organization to apply some changes to the operation to meet the customer
demands and strengthen the organizational position in the market. Mullins, Walker and Boyd
(2012) commented that marketing is the summation of all those activities that are linked to flow
of goods from production to consumption. The major purpose of the report is to develop an
appropriate marketing strategy that helps the organization in reinforcing the market position. In
the following report, an appropriate marketing plan has been developed which starts providing a
description regarding the product categories, sales and organizational mission and vision. The
report includes a situational analysis, which helps to analyze the external and internal factors that
have strong impact on the organizational operation. The report also proposed a new product,
which should be launched to the market as the addition to the customer retention strategies.
Overview of the company and Product/Service- Salsa Royal
Salsa Royal is one of the largest fast food restaurants located in the capital Male of
Maldives. The organization has a large category of fast food products. Salsa Royal provides
dinner, breakfast, lunch and reservation, seating and a complete eco-friendly environment. At the
initial stage of the operation, the organization gained a large amount of profits with limited
number of customers. In the recent time, the overall profits of the organization decreased by 21%
and the last year profit decreased by 3.9% (Sonstein et al. 2014. This scenario indicates that the

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organization is rapidly losing its market share and bearing the loss. The overall return on
investment has been less. More specifically, it has been identified that the initial operation of the
company was successful because the organization has variety of vegetable and non-vegetable
items that were largely accepted by the customers. However, people in Maldives are fond of sea
food and the restaurant did not put required attention to this category.
Strategic Focus and Plan-
Salsa Royal mission- The major mission of the organization is to “sell the food in a fast,
and friendly environment that appeals to pride conscious and health minded customers”. The
organization mission has till now received one of the lowest score in all the evaluations
conducted by Darbi (2012). The mission of the company is product oriented, which remains as
the disadvantage for any mission compared to customer-oriented. The product-oriented missions
tend to pay attention to the certain products and services instead of satisfying customers’ needs
or resolving the issues. Such product could provide less flexibility for the organization to expand
into other product markets. In overall, Salsa Royal does a poor job in implementing their mission
as communication tool to present the significant and valuable business information to
organization’s stakeholders.
Salsa Royal Vision- To become integrated food service group in the Asian regions delivering
consistent quality products as well as excellent customer focused.
Company competency – at the company level
As put forward by Mohamed (2012), the core competency of the company provides the
customers with the benefits while not being easy for the rivals of the company to cope or imitate
and provide leveragability for different products and market. In the case of Salsa Royal, Male,

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the core competencies involves its capability to provide a unique recipe on the basis of the food
items which has a distinctive taste. In addition to this, Salsa Royal also has significant expertise
managing as well as opening the restaurants in the global market. However, the organization
lacks a proper managing direction. In such a growing sector, the organization does not have a
proper technological base.
On the other side, it has also observed that the firm has poor bargaining power with the
suppliers, which would have enabled the organization to have suppliers at lower cost maximizing
the profit margin on the products sold. Conversely, it has also been observed that the
organization does not have proper understanding about the economies of scale with its local,
regional as well as international operations. Having such ability would have helped the
organization to reinforce its cost advantages with the suppliers. Moreover, ever since, Salsa
Royal has started the business, they have only focused on the chicken items but even though
people in Maldives are fond of seafoods, the restaurant did not implement any special initiative
on that category. This is because of the cost of supplies in another category.
Organizational goals at the product level
 To increase the customer offering large variety of products
 To present international food items to meet the demands of customers belonging to
different cultural backgrounds
 To maximize the profit margin leveraging the internal capability –such as distinctive taste
of food

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The above-mentioned goals are associated with the current ability of delivering products that
Salsa Royal could achieve. However, the organization does not have a proper strategic focus that
can be associated with the organizational goals and direction.
Identifying the mission/vision and core competencies Salsa Royal should help in creating your
new product
Based on organizational vision and mission, it can be mentioned that the marketing focus
of the organization stiff and stable, which would help the organization to implement new
organizational initiatives but due to the improper use of resource, the organization is not able to
reach its desired direction. However, it has been identified that current mission and vision is
associated with the new product and market development initiatives. The vision is to become an
integrated food service group in the Asian region and this vision can be achieved because people
from all Asian nations visit Maldives as their preferred tourist place. This can be used as the
strategic opportunity for extending the business. In addition to this, the mission of the company
is to sell the seafood items to fast and friendly environment. Nonetheless, company’s mission is
not associated with the product categories it has. Yet, as the focus is on Asian regions, certainly,
the organization could pay attention to this seafood category as Asians are used to this category.
Thus, the current mission and vision could contribute to the development of new product and
market.
Situational Analysis
PESTLE analysis-
Political –As put forward by Kothari (2014), Maldives is presidential republic; president
is on the top and as the head of government and head of the state. The president runs the

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executive branch as well as appoints the cabinet, which is further approved by the citizens.
Fishing and tourism are the major industries in Maldives, which provides the highest GDP to the
nation. Therefore, the government of the nation is supportive towards these two sectors. Here, a
significant fact is that as the governments support the tourism and fishing, the other sector such
as food industry, which is associated with these sectors receive an indirect help from the
government. The government invests in tourism, so that more foreigners or the other visitors
come to the nation and this frequency of visits of people is an advantage for the food sector
organization. Thus, it can be implicated that political environment in Maldives is stable for the
food industry.
Economical –A large proportion of Maldives economy is based on tourism, which
generate almost 28% of their GDP (Brander et al. 2012). In addition to this, fishing remains the
main occupation of people, where they receive priority from the government for the development
of their business. On the other side, the agriculture and manufacturing continue to play a lesser
role in the growth of the economy. Thus, it is certain that fishing sector plays a strong role in
nation’s economic growth, so Salsa Royal could utilize this base to its business. Suppliers’
demand is low due to the abundance of fish. Hence, low demand of suppliers remains as the cost
of advantage for the organization if the firm wants to continue the operation focusing on fish
items.

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Figure 1: PESTLE analysis
(Source: Brander et al. 2012)
Social –Islam is the only religion of Maldives, the open practice of all other religion is
strongly prohibited, and such actions are liable to the prosecution under the law of the nation
(Zubair, Bowen and Elwin 2011). This scenario indicates that considering the religious influence
in mind, the firm should design its product category, which means the prohibited food by Islam
such as Pork should not be prepared in the restaurants. However, the foreigners come from many
cultural backgrounds and in such context, they might ask for such items. However, as Maldives
is a sea-based nation, this might not be a big challenge for the organization, as seafood should
remains as its major category.

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Technological –It has been identified that government generates makes investment in
Research & Development but only those sectors that generate GDP. The country has developed
an international submarine cable Fiber-Optic Link Around the Globe, which connects the nation
virtually to other nations (Scheyvens 2011). In the recent time, the nation has embraced the web
technology, which helps people to remain socially connected. Thus, the development in the web
technology could certainly help the business in promoting their products and services and
creating market awareness. Presently, Salsa Royal is not involved in the social media, which
would have popularized the brand. However, the organization yet could use technological
advancement for the growth of their business.
Legal - As discussed earlier, the nation is biased towards the religious views and the legal
framework is developed considering this fact. However, when it comes to business, all
businesses are supposed to follow and implement the trade regulations. The non-compliance to
trade regulations could lead to penalty (Mayer 2011).
Environmental- The nation is completely concerned about the green initiatives. As the
initiative to the environmental sustainability, the businesses have to be involved in the action of
recycling the use of resource (Sovacool 2012). More specifically, all businesses have to be aware
of the use of resources and waste control initiatives. In 2014, the government banned the use of
plastics and excessive use of water. As the consequence, the firms have started using the used
water through recycling.
Porter’s five forces analysis
Bargaining power of the customers- (High)-It has been observed that due to the
economic stability in the nation, people in Maldives live enhanced life style; they look for high

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quality of products. On the other side, due to the availability of resources and suppliers of fish,
many small and medium size restaurants keep this item in their main course (Sambajee and
Dhomun 2015). Thus, the customers have many choices when it comes to food. Thus, the
bargaining power of the customers is high.
Bargaining power of the suppliers- (LOW)-As the availability of resource is high, the
demand of suppliers remains low. However, as the agriculture sector of the nation did not show
any sophisticated development, the food organizations observed a deficiency in the supply of
chicken items (Hassan and Gharleghi 2015). This is a probable reason for loss in profits of Salsa
Royal. Therefore, the level of bargaining power could differ on the basis of the sector.
Figure 2: Competitive Rivalry
(Source: Scheyvens 2011)

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Competitive rivalry- (High)-As Maldives is an attractive tourist locations, people from
many nations visit Maldives, which increases up the trade opportunities for the organizations in
the food sector. Many small and medium size fast food organizations established their operation
in the large cities such as Male in Maldives (Scheyvens 2011). On the other side, as the nation
has an abundance of fishes, many fast food restaurants establish the operation focusing on this
particular category. Thus, the competitive rivalry remains high.
Threats of new entrants-(Moderate)-Due to poor growth in the supply of agriculture and
manufacturing products, small and medium size food enterprises find it difficult to meet the
market demands. However, in other sector such as fishing, the availability of resource is high;
thereby, the small and medium size food enterprises open up the operation focusing on this
category only (Scheyvens 2011). Thus, the threats of new entrants moderate for the existing fast
food organizations in Maldives.
Threats of substitute products- (Moderate)-The threats of new entrants remain moderate
for the existing fast food restaurants because in the large cities of Maldives, many small shops on
the streets are selling fast food items, which certainly cover a particular area of the market (Jaleel
2013). On the other side, due to the technological advancement, the fast food organizations sell
the products through online delivery network, which also affects the market share of traditional
shops.
SWOT analysis
Strength
 An appropriate ambience inside the
outlet often attract the customers to pay
Weaknesses
 The organization observed the presence
of many competitors in the market,

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a second visit (Sattar et al. 2012)
 Taste and food quality are better than
other food outlets
 The organization could serve variety of
items under the single menu
 The firm has the ability to become
specialized in chickens
which is affecting the market share of
the organization.
 Due to lack of trained workforce, the
organization is not able to provide the
desired customer services
 Inadequate attention to the desired
products is also affecting the market
share of Salsa Royal
 The firm gained a poor understanding
about the market and the customers.
 The existing pricing strategy is not
effective and aligned to the product
strategies and market demands.
Opportunities
 Salsa Royal has the opportunity to
expand the business in a different
segment on the basis of the resource
available. Fish sector and tourism
sector in Maldives create the highest
GDP, Salsa Royal could diversify its
business into the same category
(Jayantha and De Silva 2011).
 Maldives is technologically developed,
therefore, the firm could promote the
Threats
 Due to availability of restaurants, many
small and medium size fast food
restaurants are accessing the market,
which certainly remains as the
significant threat for Salsa Royal as
Maldives is one of the smallest nation
with respect to population. Thus, the
market is limited.

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products and services to the large
market through social media platforms
 Due to the technological advancement,
the organization could increase the
customer base reaching the wide
market. For example, online order
service could be effective for the
organization because only a few
restaurants in Maldives have started
this service.
Table 1: SWOT analysis
(Source: Jayantha and De Silva 2011)
Market
As out forward by Hunt (2011), running a successful business is not like a field of
dreams, one could build it but they may not come true. Businesses should let people know about
the products and services they offer. While letting others know about the products and services,
formulation of marketing strategy is very important. It helps the organizations to determine
which customers they will serve and they will do it. The organization identifies the market, then
divides into different smaller segments, and then selects the most promising segment. Therefore,
Salsa Royal could focus on the following market segments to launch its new product.

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Demographic Segmentation-As put forward by Liu, Kiang and Brusco (2012)
demographic segmentation consists of dividing the market into the groups based on few
variables such as age, gender, family size, income, religion and nationality. However, as Salsa
Royal sells the fast food items, it should not follow any particular age group but the major focus
should be on the young people. When it comes to income, it has been observed that people in
Maldives follow a trendy life style due to the economical stability. As people in Maldives have
high disposable income, people look for quality of products. Salsa Royal needs to consider high
quality in the manufacturing of new product called Fish Balls.
Geographic Segmentation-As mentioned by Hassan and Craft (2012), any market
required to be segmented such as nation, states, regions, cities and neighborhoods. In the case of
Salsa Royal, the firm should focus on the large cities such as Male, Fuvahmulah and others.
However, apart from all these cities, the firm could also focus on tourist, commercial and
university canteen. Maldives is one of the attractive tourist locations and many people visit
Maldives for such natural beauty. Hence, Salsa Royal could use this as a significant business
opportunity- such as focusing on those particular locations that are crowded by country people
and foreigners.

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Figure 3: Market Segmentation
(Source: Papadopoulos and Laroche 2011)
Psychographic segmentation- According to Cleveland, Papadopoulos and Laroche,
(2011), psychographic segmentation can be divided into many groups such as personality and
life style. Even though, people in Maldives are bounded by the religious views, young people
have the tendency to follow the western culture. Thus, Salsa, Royal could implement a western
theme in the internal environment of the restaurant.
Target market- According to Papadopoulos and Martín Martín (2011), target market
remains as the process of assessing each market segment’ attractiveness as well as selecting one
or more market to get in. In order to generate profits, the organization could target the large
metro cities of Maldives such as Male. Male is the suitable choice for Salsa Royal, as the city has
the highest population excluding the foreigners who occasionally visit. In addition to this, most
of the large universities and colleges are located in Maldives. As commented by Pires, Stanton

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and Stanton (2011), organization with the limited could determine to serve only one or few
special segments; conversely, a company with a large amount of resource could decide to serve
several markets. Nonetheless, as the organization Salsa Royal has limited resource, it could pay
special attention to the selected market such as Male where it could generate profits.
Positioning- As mentioned by Basu (2011), positioning refers to a product to acquire a
clear, distinctive as well as desirable place to compare the products in the mind of the buyers. As
the company is advised to spread across the city Male, the firm should decide how it could
differentiate its market offering for each targeted segment. Salsa Royal should promote a high
quality position for its products. It needs to produce a high quality product and charge price as
well as distributes through high class dealers with the circulation.
The organization Salsa Royal needs to communicate through physical size that people
consume to judge quality. Moreover, in the case of Salsa Royal, it is required to mention that the
firm needs to provide the services in such a way that the customers build and carry a positive
image. Thereby, for those customers, the quality of products needs to be standardized. Moreover,
the company also needs to build an eco-friendly environment that certainly influences the mind
of the customers. Thereby, it is essential to mention that in product positioning, all external and
internal aspects should be considered, which would help to present a complete image.
Market Programs
The marketing mix is a business tool that is mostly used in marketing and marketing mix
becomes often crucial when determining a product or brand’s offering and this activity is
synonymous with the four Ps.

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Product- As put forward by Gordon (2012), a product can be defined as anything that
could be offered to a market for attention, actuation or the consumption that could fulfill the
needs. The company has an increasing availability of seafood, Salsa Royal should continue with
the seafood such fishes. Thus, considering the present scenario, the organization has been
proposed to develop and launch the product called Fish Balls. Salsa Royal should focus on the
coastal areas where most of the people visit and the foreigners come and they could observe that
they prefer fish items.
This proposal could work well as people in Maldives are fond of fish items. Moreover,
the organization is suggested to increase up variation in the category of fish. Apart from this
category, as the secondary option in the marketing plan, the organization also needs to increase
the variety in the chicken items. The people who come from Asian nations like India, UAE, and
Singapore prefer chicken items. The firm could satisfy their needs and demands. However, it is
also expected that people from other nations who are used to chicken items might prefer
something different that they might not have tasted before.
Product Categories- There are different products divided into the sections in accordance to the
differentiation in them.
 Fish (Fish Balls, Fish chop, Fish Kopta, Fish Roll, Fish Teaco and many more) Chicken (Chicken Roll, Chicken Bowl, Chicken Toasted Full Chicken, Grill and
Roasted Chicken and many more) Burger ( Chicken Burger, Fish Burger, Veg Burger and others) Snacks & side orders

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Price- Price remains as any amount of money and that customers have to pay during the
purchase of the product. When it comes to price, it is observed that economical state of Maldives
is stable and people have high disposal income (Masha and Park 2012). Thus, keeping the
quality of products in mind, Salsa Royal could develop competitive pricing strategy for the
proposed products. Likewise, any modified existing product should be sold at competitive
pricing strategy. The products of Salsa Royal should be priced high and the firm should target
both upper and middle class people of the target market. Dramatically, the firm needs to tickle
down the price insisting on the middle to lower class to penetrate both sides of the market.
Figure 4: Marketing Mix
(Source: Riaz and Tanveer 2012)

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However, to sell the existing products, the organization could pay attention to the lower
social class. It can also be mentioned that it is necessary for Salsa Royal to consider different
segments of the market while designing the pricing strategies for the products. In addition to this,
while developing the pricing of the products, the head office of Salsa Royal, should be involved
in the process, which means pricing of all products should be set by one single branch. Hence,
pricing needs to be aligned with the market demand and the stability in the economy.
Furthermore, as Salsa Royal is performing the operation in the domestic market only, it does not
have to consider global pricing strategy, which would have been dynamic. The price of all
products should be equal to the cost and the expected profits.
Promotion –As stated by Helm and Gritsch (2014), the promotion refers to the activities
that communicate the merits of the products and influence customers to purchase it. It remains as
the significant technique, which is used to inform as well as educate the selected target customers
regarding the organization and its products. However, for the promotion of products, the
organization could take advantages of technologies. For promoting the products in the wide
market, Salsa Royal could rely on social media platform, where it could present the details of its
products and services in a more detail manner through different social media tools such as
Facebook, Twitter and YouTube. In addition to this, the organization should promote its brand
by working on the logo of the firm. Especially, when it comes to a fast food restaurant, brand
logo is a significant aspect that customers often carry in mind. In addition to this, the
organization should consider the religious festival of Maldives such as Eid, Ramdan and other
event, where it could develop special deals and offers to persuade the customers.
Place- Place includes organization activities that make the product available to target the
customers. In this context, Gordon (2012) commented that high quality of products, effective

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pricing as well as promotional activities are of no use if the products are not available to the
customers. The organization needs to focus on the downtown of the cities, which remains
crowded. The advertising campaign should be arranged in the downtown of Male. All hoarding
featuring the products and services should be distributed to the populated areas of the cities. In
addition to this, the products and services should be placed to the convenient place such as
outside the campus of a large university in Male, so that customers could easily go as well as
enjoy the delicious foods.
Implementation plan
In order to focus on the target market and the above-mentioned segments, the
organization needs to implement an appropriate communication strategy. The organization
should focus on developing a communication program; this means, as the nation is
technologically developed, the organization could pay attention to social media platforms.
Certainly, social media is a large platforms, where millions of people are socially connected on a
regular basis. Thus, to create awareness among the people, Salsa Royal particularly focus on the
social media tools like Facebook, Twitter, YouTube and others to convey the messages about the
products and services. The social media tools should be used properly, which means, the firm
could create a public community page on a large social media tool like Facebook, where they
could post the latest updates about the products and services and the customers could see them
and react to it. In addition to this, the firm could use the most popular social media tool such as
YouTube, where it could publish a video featuring the products and services of Salsa Royal.
Apart from the communication strategies, the focus should also be on product
manufacturing. Due to the similar product offering, the firm might again observe a slow growth

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in the new strategy. Thus, the proposed product Fish Ball is a new item and it should be prepared
with the highest priority to give customers new experience in the category of fish. On the other
side, to make distinctive point in the product category, the organization needs to increase up the
variety in the products. This means, if Salsa Royal wants to particularly focus on the category of
fish, it has to maintain the variation in this category. This might also help the customers to select
their preferred option from the choices.
Salsa Royal also needs to consider technology in their services. As Maldives is
technologically developed, to reach the customers in the remote areas the firm could provide
online delivery services. In this system, the customers have the choice to select option and order
online. In implementing this service, the organization needs to maintain an effective delivery
services; this means, the focus should also on the distribution channels. The distribution network
should be broad and effective; the firm needs to ensure the delivery of products are not delayed.
To speed up the deliveries of the products placed online, Salsa Royal needs to hire people who
could implement this job. In addition to this, to maintain the quality of products, or to
differentiate the firm from the competitors, the quality of new and existing product needs to be
considered and maintained. In this context, Salsa Royal could hire new and experienced chefs
who have years of knowledge in multiple cuisine. Thus, such experienced people prepare the
dishes different people that customers might not have experienced before.
Evaluation and Control
Once the plan is implemented in accordance to the marketing needs, the organization
needs to measure the performance of the plan. In the evaluation procedure, the organization
needs to pay attention to all departments and stakeholders involved in the plan. Firstly, the

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organization needs to collect feedback from the customers regarding the newly developed
products and services. The marketing executives of the firm should assess the feedbacks and
identify the flaws, if any are there. Based on the identification, appropriate measures need to be
prepared and implemented. However, the evaluation should start after 6 months of
implementation of the marketing plan. In addition to this, the firm could do it by looking at the
sales, which should be going up and the firm needs to be careful regarding what measures the
organization is supposed to use.
The firm could do it by setting a longer sales cycle and to see the difference, the firm
needs to measure the number of new leads being generated. Likewise, in the feedback process,
the form should find out where they heard of the organization. In the feedback process, if they
found the response “I do not know” then, certainly, the firm needs modify the strategies. For
example, many customers might not have heard of the newly launched product and service;
hence, the firm must ensure that it is advertising its products and services in the right media. The
firm could select the media to suit the audience being specific as possible. Moreover, in the
control and evaluation plan, the firm needs to make sure whether the networking activities create
new opportunities for the firm. While measuring the networking activities, the firm needs to
track the source of networking enquiries. Similarly, the control team of the firm also needs to
make sure, whether the marketing tactics making it easier to sell the services. Like each
department related to the organizational activities mentioned in the marketing plan, the
organization needs to focus on the client demands and the point of differences.
The firm also needs to ensure the sales conversion rate and the firm could do it by
looking at the historical records as well as determine whether the rate of conversion has
enhanced and here selling remains as the significant factor of the marketing function. Lastly, in

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the evaluation process, the firm needs to look at the fact whether the plan does have a positive
return on investment. The organization needs to ensure whether the plan brings enough new and
repeat business to justify the expense. If not all these measures are taken into the consideration in
the evaluation process, the organization might not observe an expected return on investment.
Supporting information
In the marketing plan, especially in the communication strategy, the organization needs to
think of the public relation, which might help to communicate or reach the target customers.
Salsa Royal needs to develop a good relation with company’s public bodies by deriving
favorable publicity. By doing this, they could develop a good corporate image heading off
unfavorable rumors. As the public relation tools, the organization could use news, internet and
other relevant tools.
Conclusion
The above-presented marketing plan could help the organization to gain the market share and
reinforce the existing marketing share. The present scenario indicates that organization is losing
its market share due to both external and internal factors. Therefore, based on these issues, the
organization has been suggested to increase the list of food items based on the current market
demands. In addition to this, the firm has been proposed to take advantage of technologies as
Maldives is technologically developed. It is anticipated that the proposed plan could help the
organization to deal with excising business challenges.

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