Marketing Strategies of National Agricultural Development Company (NADEC) in Saudi Arabia

This report discusses the marketing strategies of NADEC in Saudi Arabia, its business orientation, and the evolution of its strategies. It recommends the use of cloud applications to improve efficiency and suggests growing alfalfa and other crops for cattle feed in Sudan, Jordan, and Lebanon. The report also recommends the use of GPS tracking devices and cloud-based systems to manage logistics and improve delivery performance.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the student
Name of the University
Author note

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Executive Summary
The primary purpose of this report is to elaborate on the marketing strategies of National
Agricultural Development Company (NADEC) in Saudi Arabia. It elaborates on the nature of
business orientation of company and the evolution of its marketing strategies. The report also
recommends the strategies that can help the company in improving efficiency of its services.
The report recommends that the company can use cloud applications that can help the
company in tracking shipments and in analysing of delivery performance.

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Table of Contents
Introduction................................................................................................................................3
Marketing and sales strategies of NADEC and its business orientation....................................3
Evolution of strategies and tactics of NADEC..........................................................................5
Improvement of current strategies.............................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................8

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Introduction
Marketing strategy refers to the plan of a business that helps it in reaching people so
that they can be turned into the consumers. Marketing strategy consists of the value
proposition, marketing message and information about target customer of a company.
Marketing strategy evolves out of the value proposition of a company that is indicative of
competitive advantage which a company has within the market. National Agricultural
Development Company (NADEC) is the biggest agricultural company in the Middle East
(Nadec.com.sa 2018). NADEC has a large vertically integrated dairy business within the
world. NADEC helps in providing healthiest nutritional product to the people living in Saudi
Arabia. This report discusses about the marketing strategies utilised by NADEC and nature
pertaining to its business orientation. The report also elaborates on the evolution of strategies
of the organisation owing to the changing market condition along with the buyer behaviour. It
also recommends how the current strategies can be improved upon by NADEC.
Marketing and sales strategies of NADEC and its business orientation
NADEC faces stiff competition in relation to the business activities- within Saudi
Arabia and in abroad. NADEC wants to develops its products both in Saudi Arabia and
abroad that helps in the marketing of the company. NADEC indulges in cost management
sales strategy that helps in increasing the sales of the company. NADEC also makes use of
local along with regional dairy that helps in attracting a large number of customers. Freshness
along with taste are the key in relation to the marketing strategy of NADEC. NADEC has
facilities which are located at the center of Saudi Arabia that helps in the marketing strategy
of the company. The company takes recourse to direct-to-store distributor pertaining to liquid
milk that greatly aids in the marketing of the company (Menon et al. 2015). NADEC lays
stress on the aspect of quality and it is instrumental in sending out trucks and the trailers that

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helps in the delivering of fresh products to around 30, 000 customers. The marketing strategy
of relationship marketing is employed by NADEC that focuses on the aspect of customer
building. The customer loyalty is improved upon by the company by the selling of the fresh
products and by using local products. NADEC has production structure that conforms to that
of the best global standard that is an integral part of its sales strategy (Solomon et al. 2014).
The production facilities of NADEC are efficient and it takes recourse to process
optimisation that helps in improving the quality of the products of NADEC.
The business orientation of NADEC revolves around that of product orientation. The
managers of NADEC focus on the aspect of manufacturing that helps in improving quality of
products of the company (Jobber and Lancaster 2006). The company makes use of milk that
is 100 % fresh and the milk is produced from the local cows that ensures sustainability
pertaining to the company. The milk goes through a process of pasteurization and
homogenisation that helps in retaining the quality of the milk. NADEC has introduced
Research and Development ( R & D) Innovation Centers that greatly caters to the taste of the
modern day consumers. State-of-the-art centers of NADEC helps in the developing of the
products and the packaging of NADEC. The center can help in the developing of high quality
product that can meet needs of both local along with that of the regional food markets.
NADEC is involved in product orientation and it has been instrumental in the launching of
various new products like Ayran laban, flavoured milk and different kinds of cheese
products. The R & D Center at Haradh is a significant aspect in relation to their business and
it helps in fast-forwarding the innovation process in relation to the company. Investments
have been made by the company that can help it in enhancing technological expertise in
relation to the dairy foods (Jaworski 2018). NADEC lays stress on developing innovative
along with nutritious products that can cater to the taste of the customer. The scientists and
the technicians of the company can help the company in the arenas of food processing along

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with packaging. Facility helps in providing different kinds of capabilities that ca help in
addressing the aspect of food research along with product development. NADEC delivers
superior products by making use of internal talent along with resources that has helped in the
building of a strong technical team (Morgan et al. 2018).
Evolution of strategies and tactics of NADEC
Nadec in the beginning focussed on the local market in Saudi Arabia. NADEC used
technology along with process that helped in catering the product to the needs of the
customer. NADEC however with the passage of time started to grow in the international
arena that helped in the marketing of the products of NADEC. NADEC has in the present age
bought its competitor Al Safi Danone that has helped in increasing the reach of the company.
The share capital of NADEC has risen 63 % to that of 1.38 billion riyals and it would help
both the companies in serving the customers. The policy of merger along with acquisition is
taken recourse to by NADEC that has helped it in expanding in the new markets. It has
helped in raising value of the company (Bijman 2016). The acquisition has helped in
strengthening the dairy products of NADEC and it has helped the company in expanding
footprint in UAE, Kuwait, Jordan along with Lebanon. It has been able to gain access to the
high-growth market that includes Iraq. The evolution of the strategies has helped in boosting
the cash flow of the company and cut the costs in relation to manufacturing, sourcing and the
supply chain. It has helped the company in earning revenue opportunities from that of the
wider distribution of the network along with trade optimisation (Thongplew, van Koppen and
Spaargaren 2016). The evolution of NADEC has taken place as the company currently uses
cloud-based technology that helps it in overcoming operational hurdles. This technology has
helped the company in cutting the costs that has helped it in making profits in Saudi Arabia.

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Improvement of current strategies
The current strategies of NADEC can be improved if it starts growing alfalfa along
with other crops for that of cattle feed within Sudan, Jordan and the Lebanon. Crops should
be harvested and transported to the dairy farm of Saudi Arabia. NADEC can improve the
current strategies by making use of new tools that can help it in communicating with shippers
along with the fleet operators in various countries. NADEC should move the logistic
application and also infrastructure into that of the cloud that can help the company in
improving its services (Borkfelt et al. 2015). Cloud applications would be able to help
NADEC in tracking the shipments and analyse the delivery performance. It can help the
company in reconciling payment within that of the real time.
The changing market conditions necessitate that NADEC take recourse to GPS
tracking devices that can be useful for company in monitoring the whereabouts of the trucks.
The GPS tracking would be able to help the company in determining travel time from that of
Sudan to that of Saudi Arabia. The cloud-based system would be able to help the company in
the identification of best shippers. It can help NADEC in the determination of fastest delivery
route. The managing of logistics in cloud can help the company in getting detailed
information about trucks, fuel requirements and the load capacities. It can help in the process
of automatic upgradation of that of the key performance indicators of the company. The
cloud application would be able to help NADEC in managing vertical along with distributed
operations. The systems should be integrated in cloud that can help the company in the
tracking of orders. It can help the company in syncing the manufacturing cycles with the
distribution schedules that can help the company in the process of delivery to the customers.
The apps should all be visible on the cloud that can help them greatly in the managing of the
order-to-cash process.

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Conclusion
Marketing strategy is indicative of business plan that can help the company in
reaching a large number of people. Marketing strategy comprises of value proposition along
with the marketing message of company. NADEC makes use of cost management sales
strategy that increases sales in relation to products of company. The company makes use of
regional dairy that can attract a lot of customers. Freshness is the key pertaining to marketing
strategy of company. The managers of company lay emphasis on manufacturing that
improves quality of the products. NADEC uses milk which is fresh and the milk of company
is produced from local cows that helps in the growth of company. NADEC at the outset
focussed on local market but it started to focus on expansion that helped the company in
relation to its sales strategy. NADEC should take recourse to the new tools that can help the
company in communication with the shippers and the fleet operators within different
countries. NADEC can move application in relation to logistics into cloud that can help
company in increasing the efficiency of its services.

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References
Bijman, J., 2016. Agricultural cooperatives and market orientation: A challenging
combination?. In Market Orientation(pp. 151-168). Routledge.
Borkfelt, S., Kondrup, S., Röcklinsberg, H., Bjørkdahl, K. and Gjerris, M., 2015. Closer to
nature? A critical discussion of the marketing of “ethical” animal products. Journal of
Agricultural and Environmental Ethics, 28(6), pp.1053-1073.
Jaworski, B.J., 2018. Commentary: advancing marketing strategy in the marketing discipline
and beyond. Journal of Marketing Management, 34(1-2), pp.63-70.
Jobber, D. and Lancaster, G., 2006. Selling and sales management. Pearson education.
Menon, A., Bharadwaj, S.G., Adidam, P.T. and Edison, S.W., 2015. Effective Marketing
Strategy-Making: Antecedents and Consequences. In Proceedings of the 1997 Academy of
Marketing Science (AMS) Annual Conference (pp. 224-224). Springer, Cham.
Morgan, N.A., Whitler, K.A., Feng, H. and Chari, S., 2018. Research in marketing
strategy. Journal of the Academy of Marketing Science, pp.1-26.
Nadec.com.sa (2018). [online] Available at:
https://www.nadec.com.sa/en-us/aboutnadec/nadecgroup.aspx [Accessed 10 Nov. 2018].
Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R.,
2014. Consumer behavior: Buying, having, and being (Vol. 10). London: Pearson.
Thongplew, N., van Koppen, C.K. and Spaargaren, G., 2016. Transformation of the dairy
industry toward sustainability: The case of the organic dairy industries in the Netherlands and
Thailand. Environmental Development, 17, pp.6-20.