Detailed Foreign Market Analysis and Export Strategy for Smart Watches

This report presents a comprehensive foreign market analysis focused on the potential for exporting smart watches to Saudi Arabia. The analysis begins with an executive summary and table of contents, followed by an introduction that highlights the current market segmentation based on features, style, and price. The objectives and scope of the study are clearly defined, setting the stage for a detailed examination of the Saudi Arabian market. The report provides an overview of Saudi Arabia, including its economic figures and demographics, followed by a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. A thorough market analysis is conducted, covering the political, economic, social, and technological environments, along with an assessment of customer behaviors and product demand. The competitive landscape is evaluated, identifying key players such as Samsung and Apple, and a competitive comparison is provided. The report also includes market segmentation and target identification, marketing strategies based on the 4Ps, and estimated budget for marketing communication activities. The report concludes with a summary of findings and provides references to support the analysis.

Running head: FOREIGN MARKET ANALYSIS
Foreign Market Analysis
University Name
Student Name
Authors’ Note

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FOREIGN MARKET ANALYSIS
Executive Summary
A smart-watch is a portable device which is designed to be worn on the wrist in a way
which is similar to that of traditional watches. Smart watches have touch screens, support
applications and often record the heart rate of individuals among other vital signs. Digital
watches being around for decades, the concept of smart watches is relatively new. It is
essential to assess the needs of individuals, the aesthetic taste as also the budget at the time of
the choice of smart watches.
South Korean smart watches are manufactured and favoured by several
manufacturers. In order to gain popularity from the different parts of the world there is the
need to export smart watches made in South Korea for gaining popularity. The smart watches
are extremely beneficial in terms of providing benefits to the users by showing important
notifications and reminding the users of any important tasks at hand.

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Table of Contents
1.1 Background:.........................................................................................................................3
1.2 Objectives:............................................................................................................................3
1.3 Scope:...................................................................................................................................3
2. Analysis..................................................................................................................................4
2.1 Overview of Saudi Arabia....................................................................................................4
2.2 Main Economic Figures of Saudi Arabia.............................................................................5
2.4 Business SWOT analysis.....................................................................................................6
2.5 Market Analysis...................................................................................................................7
2.5.1 Environment......................................................................................................................7
2.5.2 Customer...........................................................................................................................8
2.5.3 Product Demand................................................................................................................9
2.5.4 Competition.......................................................................................................................9
2.5.5 Price.................................................................................................................................13
2.5.6 Distribution.....................................................................................................................13
3. Comparative Market Choice................................................................................................15
4. Market Segmentation and targets.........................................................................................16
4.1 Segmentation......................................................................................................................16
Market Segmentation and Analysis:........................................................................................16
Marketing activities:.................................................................................................................17
5. Marketing Strategy...............................................................................................................18

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5.1 Generating Customer Value (4Ps).....................................................................................18
5.2 Marketing Activities...........................................................................................................19
5.3 Estimated Budget of the marketing communication activities..........................................21
6. Conclusion............................................................................................................................22
References................................................................................................................................23

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FOREIGN MARKET ANALYSIS
Introduction
The present scenario of smart watches is segmented in the market by the nature of
smart watches which are bought by the people namely Ultra-Premium, Premium, Standard
and Fitness and Wellness. The customers choose smart watches based on features, style and
price. A smart watch can also provide important information and notifications to the doctors
regarding the health condition of patients (Schaper et al. 2014). Smart watches are in tandem
with the modern day scenario and technologically advanced times.
Objectives:
The aim of this particular study is to understand the foreign market that is the
prospects for the export of smart watches in the country of Southern Arabia. The report aims
to create a proper marketing plan based on the conditions of the market and acceptability of
the product. The conditions in Saudi Arabia are to be studied in order to market the product
effectively and make the export procedure a success. The aim of the export of high end smart
watches is to gain a fairly significant market in the new country that is Saudi Arabia (Dawid
et al. 2017). The competition in the market needs to be analysed to succeed over the existing
competitors if any.
1.3 Scope:
The scope of the project report aims to clearly analyse the project planning which
involves the determination and documentation of a list of specific project goals. In this case it
relates to the analysis of the market. The report covers the analysis of the market in this case
the market of Saudi Arabia. The business analysis of the product export is to be calculated.
The need of smart watches in Saudi Arabia needs to be understood and the marketing plan
needs to be formulated accordingly (Agnihotri et al. 2016).

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FOREIGN MARKET ANALYSIS
Another important part which is included is the evaluation of the product in the export
market. In the present report, the actual need for the smart watches is to be understood in the
country of Saudi Arabia (Foxall 2014). The evaluation of the need of smart watches is to be
understood. The possible competition in the area needs to be understood and the promotional
activities of the watch also need to be looked into.
2. Analysis
2.1 Overview of Saudi Arabia
Saudi Arabia that is officially referred to as Kingdom of Saudi Arabia (KSA) is essentially a
self governing Arab state located in Western Asia comprising of the bulk of the Arabian
Peninsula. Essentially, with the land area of around 2150000 km2, the nation Saudi Arabia is
the largest state in Asia geographically and second largest state in the entire Arab world. The
nation Saudi Arabia is primarily encircled by Jordan as well as Iraq towards the north, with
Kuwait on the north east, plus Qatar, Bahrain as well as the United Arab Emirates (UAE) to
the eastern side, Oman in the southeast direction and Yemen to the southern side. In addition
to this, it is detached from the nation Israel and nation Egypt with the Gulf of Aqaba (Sheth
and Sisodia 2015).

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The nation Saudi Arabia possesses approximately 20% of the world’s proven reserves of
petroleum, positions as the greatest exporter of petroleum, and plays an important part in the
Organization of Petroleum Exporting Countries also simply referred to as OPEC (Armstrong
et al. 2015). The petroleum industry accounts for approximately 80% of budget revenue,
roughly 45% of GDP and 90% of export income.
2.2 Main Economic Figures of Saudi Arabia
Particular 2011 2012 2013 2014 2015
Population
(million)
28.37 29.2 29.99 30.77 31.52
GDP (in
billion US$)
671.24 735.97 746.65 756.35 654.27
GDP (for per
capita in US$)
20575.5 21056.3 21005 21183.5 21508
2.3 Demographics of Saudi Arabia
Population growth: The population of Saudi Arabia is approximately 33 335000
Population growth rate: 1.49%
Birth Rate: 18.78 births
Life Expectancy: 74.92 years
-Male: 76.89 years
-Female: 78.94 years
Rate of Fertility: 2.17 children that are born for every woman

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FOREIGN MARKET ANALYSIS
Infant Mortality: 14.58 deaths for every 1000
Structure of Age:
Age between 0 to 14 years: 27.6%
Age between 65 years and over: 4.2%.
Sex ratio:
At birth: 1.05 males for every female
People under 15: 1.05 male for every female
People between 15 to 64 years: 1.22 male for every female
Spoken Language: Arabic
2.4 Business SWOT analysis
Strength
-Largest Arab state with high GDP growth rate
and higher purchasing power that can provide a
good market base
-Innovative design
-Cost effective and simultaneously premium
quality (Foxall 2014)
Weakness
-Entry in a new market
-Initially low margin of profit (Sheth and
Sisodia 2015)
Opportunity
-Generating demand for superior quality product
-Generating higher job opportunities for people in
Saudi Arabia
-Altering customer requirements or else
Threat
-Acceptance of the company’s product in the new
market
-Swift change in technology
-Alteration in the needs of the customers

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FOREIGN MARKET ANALYSIS
preferences (Agnihotri et al. 2016)
2.5 Market Analysis
2.5.1 Environment
Political Environment: Saudi Arabia formally referred to the Kingdom of Saudi Arabia can
be regarded as the largest Arab state in terms of area of land. Essentially, the Kingdom of
Saudi Arabia is necessarily a monarch that is governed by King Abdullah. Fundamentally,
this nation is ruled by politically stable and undergoing political restructuring although in a
slow speed (Foxall 2014).
Economic Environment: The economy of Saudi Arabia behold appropriate rate of growth
and is anticipated to arrive at higher rate of growth in the upcoming period. The nation’s
economy is referred to as high income and can be considered to be the largest one in the area
of Middle East. It can be hereby mentioned that Arabia has a specific edge with strong
economical strength as well as weak opposition pattern (Sheth and Sisodia 2015). Yet another
issue of the nation is an unbalanced association between the public and the private sector
remain together.
Social Environment: The Al Saudi Family asserted that they are committed to uphold the
nation’s economic growth and be a part of the developed countries. In contrast, this political
situation necessarily affects the industry of smart watch positively as this specific industry
remains majorly uncontested in the market of Saudi. In particular, in terms of law, al smart
watch industries have the need to possess single as well as family section with segmentation

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FOREIGN MARKET ANALYSIS
of male and female segment delineated in order to adhere to the tradition as well as religious
necessities (Armstrong et al. 2015).
Technological Environment: Presently, Saudi Arabia is necessarily turning out to be more
focussed on technology. The expenditure on nation’s connectivity as well as human resources
has been enhanced. However, with the ever increasing growth of private sector, systems with
advanced as well as innovative technologies are being established (Hollensen 2015). Proper
efforts are also put in order to make IT an integral section of the Saudi Arabian education
system.
2.5.2 Customer
Behaviors
1)Target Segment Name: Trendy Sportsperson and athletes
Percentage: 23%
Demographics - 15-29 years, single, male/female
Behaviours: Educated secondary school and above.
2)Target Segment Name: Evolving Juniors
Percentage: 22%
Target Segment Name: Balanced Seniors
Percentage: 21%
Target Segment Name: Medical or elderly education
Percentage: 11%

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Target Segment Name: Women for the purpose of safety
Percentage: 10%
Target Segment Name: Travellers or adventurers
Percentage: 14%
2.5.3 Product Demand
The smart watch market can be said to be in nascent stage, despite elevated attention from the
technological giants to carry out the wave of technology innovation. There are several
barriers to particularly mass adoption.
Price: In essence, no clear value proposition is there for justification of a high point of price.
Look: Inadequacy of fashion appeal in a bid to undertake customer adoption.
Eco-system associated to app: Restricted separate apps and this limits functionality (Steck
and Tan 2016).
Smart watch continues to be a challenge due to different product classification that
necessarily cater to diverse niche areas that are sports, automotive as well as fitness and ,any
others (Verhoef et al. 2017). Analysis of smart watch market reveals that there is impressive
approximated market size growth. It can be estimated that smart watches reflect only 3% of
the total customer electronics expenditure by the year 2018.
2.5.4 Competition
As smart watches can probably be decoupled from present mobile devices, therefore, it is not
expected that various smart phone makers of 2nd tier or else other autonomous brands can
might emerge and compete with companies such as Apple as well as Samsung (Angell and

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FOREIGN MARKET ANALYSIS
Kraemer 2015). Essentially, it can be believed that Samsung as well as Apple can continue to
rule the space of smart watch. The main competitors of smart watch in the market of Saudi
Arabia include:
- Samsung Galaxy Gear:
It established the first and foremost foray of particularly the big four into this specific
wearable tech space. Essentially, in the initially the Samsung Galaxy Gear is now compatible
with different other Samsung instruments namely Galaxy S4, Galaxy S3 as well as Galaxy
Note II (Porter and Heppelmann 2015). In essence, the company announced that shipments of
the Galaxy Gear crossed the mark of 800000 in the initial 2 months of the establishment of
the instrument.
Advantage and disadvantages:
Sony Smartwatch 2: