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International Marketing Essay These are the factors which the business counterparts should look into seriously. Other thing that important for Secret Recipe before enter the new market in UAE, they also should concern about the Microenvironment. In this paper, we found some strength and opportunity of Secret Recipe such as good brand name as the strength and certification of â€Å"Halal† which Secret Recipe has can be the opportunity for them to enter the market, because UAE is a Muslim country so certification of â€Å"Halal† is very important if they want to enter UAE market. As a leading and largest cafe chain in Malaysia, with Halal certification awarded by Jabatan Kemajuan Islam Malaysia (JAKIM), Secret Recipe is committed to continue to adhere to the standards of preparation of all food and processing plant in the restaurant in accordance to the regulatory guidelines including HACCP and VHM guidelines. In a short period of thirteen years, Secret Recipe has experienced a rapid growth of over 250 cafes throughout the region. Now, Secret Recipe continuously strives to surpass its own accomplishments and to be recognized as a leader in the industry. . 1 BACKGROUND amp; SITUATION ANALYSIS Secret Recipe is a cafe chain which made up from different stakeholders. The stakeholders are Secret Recipe’s shareholders, customers, government, employees, activist, media and supplier. Secret Recipe has quite a lot of franchises in Asia market but only has one franchise in Middle East market which is Pakistan. In order to penetrate in-depth into Middle East mark et, Secret Recipe decided to open a new franchise in new Middle East country which will be in United Arab Emirates (UAE). In recent years, UAE has become one of the developed countries. It can be proved by its natural resources such as oil and gas. Other than that, service, tourism, trade have become their mainstay as well. However, to observe more about what factors has been influencing in their development, PEST analysis has been given. 2. 0 PEST ANALYSIS 2. 1 Political Factor By starting a new business in UAE, company should take extra precaution on the political issue of the country. The company needs to comply with trade rules which have been implemented by government. One of the rules is the company has to know exactly what kind of products or services that will be marketed. Besides that, there is an excess of politics that existed in the UAE; where government highly focused on their economy and political stability which also excites a lot of FDI in the country these can be seen from the pace of development that paralleled with the number of foreign workers in the country. 2. 2 Economic Factor UAE is a high income country where it economy is the world 33 largest according to the World Bank. Figure 1 Based on the figure 1, the GDP in UAE growth rapidly from year 1999 to 2008 but decline in year 2009 because of the world financial crisis but it recover rapidly from -2. 7% to 3. 2%. Figure 2 Based on the figure 2, the PPP of UAE also growth rapidly from year 1999 to 2010. As the GDP and PPP of UAE continually growth which may benefit to Secret Recipe because it show that the consumer tend to spend more. 2. 3 Social Factor The population of the UAE is about four million while the population growth rate is 3. 282%. While the primary language usage in the country is English, but there are some other languages which also can be used. In term of religion, the majority population in the UAE are Muslim, however in the recent time Christianity has grown in popularity paralleled with the number of foreigner in the country. It will be opportunity for Secret Recipe, because both of the home and host country have some similarities. So it will be easier for Secret Recipe to enter the market. 2. 4 Technology Factor In term of technology, UAE is technically advanced and it is vastly become one of the leaders in technological field. It can be seen from the internet users in UAE, there are a total of 78% (CIA, 2009) of population active in the internet network. Additionally, UAE owned many of state-of-the-art infrastructures and buildings like Burj al Arab which is known as the most luxurious hotel. 3. 0 MICRO ENVIRONMENT ANALYSIS 3. 1 Strength and Opportunity Secret Recipe was established in 1997. These 14 years of experience provide a good benchmark in standard and a strong brand advantages. Secret recipe has a 14 years’ worth of good history and experience in its culinary adventure. They gain a lot of recognition through awards and achievement not only in Malaysia but overseas as well. These strengthen brand power significantly. Furthermore, the restaurant was certified â€Å"Halal† since it is first commence. So with such certification they have the upper hand of experience which mean they did not have to put much effort in adapting and expanding in countries like Indonesia or Pakistan, which practically means less money spend in adaptation and implementation in the Muslim environment like UAE. 3. 2 Weakness and Threat Although Secret Recipe got a lot overseas management experience, but it was the first time their enter UAE market where was quite different that others country because of the factor such as culture differences. Thus, it will be a challenge for Secret Recipe because they do not understand about the daily life culture. The competitors can be the most important threat for Secret Recipe, because the competitors firstly enter the market before Secret Recipe. It was definitely a threat for Secret Recipe because the competitors have more knowledge about the market in the UAE and they are more aware about the existing culture in the UAE. 4. 0 SELECTING TARGET MARKET (s) 4. 1 Market Segmentation The market segmentation will be based on demographic segmentation such as age and income where play a crucial role for a company. Although foods and beverages of Secret Recipe can be enjoy by every customer, different age and income customer would have different purchasing power and buying behavior. 4. 2 Target Market Table below shows variety of target markets. As a cafe and restaurant, the target market for Secret Recipe will be young marriage couple where able to consume with their own power and willing to try new product. Target Market| Typical Breakdown| Preferred Lifestyle| Teenager| * Age between 12-19 * Schooling students with no income| * Willing to spend * Willing to taste new product| Young Marriage Couple| * Age between 20-34 * Classified from medium to higher classes consumers| * More spending power * Stable disposable medium and above income * Willing to taste new product| Marriage Adults| * Age between 35-49 * Busy with work| * | | * | * Brand conscious and a bit brand loyalty| 4. 3 Market Positioning Secret Recipe has successfully built its branding and strengthened the consumer’s awareness through the promotion – â€Å"Every Bite Gives You More†. The below figures show the brand position of our main competitor – Gulnaz , Reem Al Bawadi and Bice. High perceived Quality and status Gulnaz Gulnaz Bice Bice Secret Recipe Secret Recipe Extensive personalized serviceExtensive service Reem Al Bawadi Reem Al Bawadi High priceLow price Low perceived Quality and status Basically, Secret Recipe promotes its product based on the consumers’ perceived quality product and services with an affordable price. 5. 0 MODE OF ENTRY We suggest using franchising to open Secret Recipe in UAE. Franchising itself is a continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do (Adam amp; Armstrong 2008). The reason why we choose franchising is because by using franchising the owner (franchisor) of secret recipe will offers assistance in organizing, training for workers, merchandising, marketing and managing in return for a monetary consideration. It is an advantage that we would get when using franchising as a mode of entry. The benefits will we get it obviously will greatly assist us in running our business franchise in the UAE. For example the franchisee does not need to do training for workers, but the franchisor who will do it all for franchisee. It is because every franchisor already has a certain standard that is owned by them. But by using franchising as a mode of entry, it requires that as franchisee have to pay royalties to the franchisor with the initial agreement was made by them. 6. 0 MARKETING STRATEGIES (4Ps) Price: For pricing, we suggest Price-Adjustment Strategies to account for differences in consumer segments and situation. In Price-Adjustment Strategy there are 3 ways to do such as segmented pricing, psychological pricing, discount pricing. For these points we would prefer to use discount pricing. Because of this is the first Secret Recipe in the UAE, so by giving discount it will attract interest from the consumer. Promotion: Because of the Secret Recipe will open in UAE is the first Secret Recipe in this country, so we suggest to using pull strategy into the promotion strategy. In pull strategy they can use mass media advertising to attract interest from consumers. Because of this is the first Secret Recipe in UAE they just inform consumers about the new product to build primary demand. Place: We suggest franchising as the mode of entry to make Secret Recipe in UAE; it is because in UAE there is no Secret Recipe. But to open Secret Recipe in UAE, there are some things that certainly need to be noticed first before starting this business. The most important thing to note is that UAE is a country that has a majority Muslim population, so they must ensure the services that offer is lawful. Product: Secret Recipe is a service that fits in UAE; this is because Secret Recipe is a restaurant that does not use pork on the menu offered, so it can be consumed by Muslim people. Because of this is the first Secret Recipe in UAE, so this will provide something new for people in the UAE to enjoy it. 7. 0 CONCLUSION Secret Recipe is suitable for UAE citizen where most of the citizens are Muslim and Secret Recipe’s foods are â€Å"Halal†. From the PEST, SWOT and 4Ps factors that we analysed, by using franchising as the mode of entry, we believe that Secret Recipe have huge potential to be success in UAE. 8. 0 REFERENCES Agri-Food Trade Service 2010, The United Arab Emirates Consumer Behaviour, Attitudes and Perceptions Toward Food and Products, Agri-Food Trade Service, viewed on 12 November 2011, http://www. ats. agr. gc. ca/afr/5661-eng. htm#e BBC 2011, United Arab Emirates Profile, BBC, viewed on 12 October 2011, http://www. bbc. co. k/news/world-middle-east-14703998 Central Intelligence Agency 2009, Country Comparison and  Internet users, The World Factbook, viewed 17th November 2011, https://www. cia. gov/library/publications/the-world-factbook/rankorder/2153rank. html Foreign amp; Commonwealth Office 2011, Middle East and North Africa, Foreign amp; Commonwealth Office, viewed on 12 October 2011, http://www. fco. gov. uk/en/travel-and-living-abroad/travel-advice-by-country/country-profile/middle-east-north-africa/united-arab-emirates Franchise Direct 2011, Coffee Franchise Industry Research Business Report I, viewed 17th November 2011, http://www. ranchisedirect. com/coffeefranchises/coffeefranchiseindustryresearchbusinessreporti/74/220 Go Eat Out 2007-2011, Secret Recipe, Go Eat Out, viewed on 12 October 2011, http://www. goeatout. com. my/Restaurants/Promotions/Details/View/PID/32994/Secret-Recipe-Every-Bite-Gives-You-More. aspx Info franchise 2006, franchise in United Arab Emirates, viewed 17th November 2011, http://www. infofranchise. com/detail. cfm? IdNotizia=8136amp;IdSezione=18amp;strKey=com Qindexmundi, United Emirates Arab Population Growth Rate, Qindexmundi, viewed on 12 November 2011, http://www. indexmundi. om/united_arab_emirates/population_growth_rate. html Research and markets 2011, analyzing retail in the UAE, viewed 17th November 2011, http://www. researchandmarkets. com/reports/541162/analyzing_food_retail_in_the_uae Secret Recipe 2011, Secret Recipe Franchise, Secret Recipe, viewed on 12 October 2011, http://secretrecipe. com. my/? store=36amp;webpage=243 Slideshare 2011, UAE presentation, viewed 17th November 2011, http://www. slideshare. net/suranivikas/uae-presentation Themanagmentguru 2011, PEST Analysis of MICE industry in Middle East, viewed 17th November 2011, http://themanagmentguru. logspot. com/2011/01/pest-analysis-of-mice-industry-in. html Time Out Dubai 2011, Restaurant, Time out Dubai, viewed on 12 October 2011, http://www. timeoutdubai. com/restaurants/reviews/8114-reem-al-bawadi Uaeinteract 2011, Political System, viewed 17th November 2011, http://www. uaeinteract. com/government/political_system. asp UK Essays 2011, UAE Economy, viewed 17th November 2011, www. ukessays. com/essays/economics/uae-economy. php Wikistreetfood 2009, Franchise: Secret Recipe, viewed 17th November 2011, http://www. wi kistreetfood. com/Franchise:Secret_Recipe . 0 APPENDICES Social Factor Actual Expenditure (US$) and Projected Growth (%) in the U. A. E by Product Type Source: Euromonitor, 2010 Figure 3 From the figure 3, we know that the spending behaviour of UAE nations based on product type. It shows that the UAE nations would like to spend a large amount of money in food and non-alcoholic beverages and it increase from year to year. So it will be the advantages for Secret Recipe to enter the market. Marketing Strategies People: People are one of the elements of service marketing mix. People define a service. In case of service marketing, people can make or break an organization. Thus many companies nowadays are involved into specially getting their staff trained in interpersonal skills and customer service with a focus towards customer satisfaction. Because we use Franchising as a mode of entry, so we do not have to think too much about it. Because by using Franchising, so the Franchisor that will do the recruitment of their workforce and provide job training in accordance with the standards held by the owner of the brand name of Secret Recipe (Franchisor). Process: Service process is the way in which a service is delivered to the end customer. A good service will make consumers feel good about what we offer to them. For process, it would be better if we can set up what the consumer want, so it will give an efficiency of time to the community in the UAE. Because UAE is a country that does not have long to rest, people in UAE really appreciate the time, so they will not waste time waiting for things. By providing a fast process, it will attract attention and interest of the community in the UAE. Physical Evidence: Physical Evidence is a very important element in Service Marketing Mix. This cannot deny, because everyone would want something that looks real is better than others. Secret Recipe is a restaurant, so we should have chairs, tables, and good food. But if only by having those things, its too general because this is a basic thing that a restaurant should have. To provide something more than our