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TABLE OF CONTENTS

Executive Summary...................................................................................................................3

Preliminary Market Screening.................................................................................................14

Identifying A Product..............................................................................................................27

Industry Analysis.....................................................................................................................33

Customer Segmentation...........................................................................................................35

Product/Service Analysis.........................................................................................................37

Export Marketing Strategy.......................................................................................................41

Pro-Forma Financial Plan........................................................................................................48

PowerPoint Presentation..........................................................................................................53

Creative Brief...........................................................................................................................60

Bibliography............................................................................................................................64

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TOTAL BODY EXPORT BUSINESS PLAN

Top Body Fitness Equipment is a small commercial fitness equipment manufacturer. We

have been successfully operating in the United States for five years. In the last year, we have

had a growing number of requests to purchase our strength training product lines from the

Middle East. Subsequently, we have decided to develop a business plan to pursue Middle

Eastern market share. Our first strategy is to begin exporting our mid-range strength training

lines to the United Arab Emirates.

TARGET COUNTRY

The United Arab Emirates (UAE), once called the Trucial States, was formed on

December 2, 1971 after seven states joined and formed a federation. These states, also known as

Emirates, consist of Abu Dhabi, Dubai, Sharjah, Ras Al-Khaimah, Ajman, UmmAl-Qaiwain and

Fujairah. The 32,275 square mile country is mainly hot and dry desert terrain that sits along the

borders of Oman, Qatar and Saudi Arabia in the Persian Gulf. Due to the heat, the bulk of the

4,798,491 residents live on or near coastal areas where they may tolerate such high temperatures.

The UAE’s population consists of 50% South Asians, 19% Emirati National and 23%

that are other Arabs and Iranians. They are ruled by the absolute monarchy of the emirate in

which they reside. Each state is ruled by a sheik or Emir who presides over its own residents but

will turn to the federal government for major issues such as foreign affairs, defense and large

social programs. These Emirs are historically chosen based on tribal heredity and carry no

political party. The federal government is broken up into three branches (executive, legislative

and judicial) in which position are both appointed and elected through democracy. The UAE

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constitution’s primary goal is to unite the seven states creating a stronger and more independent

nation.

Prior to the formation of the country as it is today, the UAE was once the land for tribes

of nomads who pearled and traded; however, after the discovery of oil in the early 1960s the land

evolved and now receives extensive funding for infrastructure and social programs. This

economic boon has placed the UAE in a position to lead Middle Eastern affairs with its moderate

foreign policies. With petroleum and natural gas as its two primary natural resources, citizens

now enjoy a much better quality of life with higher incomes, higher education and a surplus of

trade. Both exporting and importing play a large role in the country’s economic success. With

majority of its imports from China, India and the USA and its exports making $210.5 billion, the

UAE carries a 126.3 billion account balance in its national currency, Emirati Dirhams or AED,

which is equivalent to $34.4 billion. Importing and exporting are the basis of the country’s net

worth as long as their trading partners respect the religion and ways of Islam.

Islam, the dominant religion, is taught and followed in the public schools and everyday

life of the citizens. Sharia or Islamic Law prevails over virtually all personal matters, the

economy and politics. These laws/beliefs prohibit the consumption of pork and alcohol for all

Muslim nationals. Although the majority of citizens follow the Islamic code and lifestyle,

religion is free here in that one does carry the right to practice the religion of their choosing. The

rights and privileges of citizens have definitely improved throughout the economic development

of this nation.

The UAE was once a nation where education was limited to only the wealthy and elite,

but it is now free for all citizens from kindergarten to a university level. This allows the majority

of the population to pursue a higher education. In fact, eighty percent of males and ninety-five

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percent of females pursue it. Although females are often educated, they still tend to choose the

role of mother and spouse with only 6% entering the work force.

Business in the UAE is significantly based on personal relationships and often holds

verbal agreements as legally binding. Many businesses are family owned and operated. It may

be beneficial to forge relationships with other people in the organization/family prior to

approaching the decision marker of said company. We intend to form and nurture any and all

relationships needed to make our company succeed.

SWOT ANAYLYSIS

After a thorough evaluation of our product line and our competitor’s products, we have

determined our company strengths to be high product quality/durability, affordability, innovative

modular design, wide variety of strength machines and a comprehensive website. As a company

in a practical world, we also have weaknesses include our lack of exporting knowledge, costly

freight expenses, major cultural and language barriers and the relative lack of brand awareness in

the UAE.

The fitness industry in the UAE holds promising opportunities that we intend to exploit in

the near future. These opportunities include a high and steadily increasing demand for

commercial strength training equipment, the development of new hotels and spas, strong

government endorsement of fitness, and an appreciation for new technology which are leading

towards a big social push for healthy living among residents. Conversely, threats must also be

taken into account. The primary threats we will face in the UAE are well established

competition, competitors offering strength and cardiovascular product lines, difficulty finding a

good distributor and the effects of the U.S. economic recession.

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SEGMENTATION & COMPETITION

We plan to specifically target luxury hotels/spas and health and fitness centers, while not

excluding any other possible customers. We are hoping to attract these segments because the

fitness market is growing rapidly in the UAE due to a vast increase in tourism, youthful citizens

and infrastructure investment. We sell high quality, affordable fitness equipment that is sleek

and innovative in design. This image of equipment is perfect for our target segments.

We are well aware of our competition and their products. We will have to overcome

some competitive obstacles and have already begun preparing for them. The biggest competitive

obstacles are the lack of brand awareness in the Middle East market and large, well-established

competitors. Our major competitors include Life Fitness, Nautilus, Cybex, Matrix and some

older Universal products imported to the UAE from China.

We would like to position our company as having products that offer high quality,

affordability and unbeatable customer service. We feel that these characteristics are essential for

targeting the luxury hospitality market. Keeping up with the newest technology will also be a

must; we will need to make sure that our product offerings are continually updated. We will

need to develop an effective promotional mix to introduce our products to specified segments,

focus on appropriate brand positioning and differentiate our product line from these large

competitors.

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PRODUCT CONSUMPTION

Our fitness products are consumer goods that have approximately ten-year life

spans. Initial orders for new facilities may consist of a number of items. Future orders will be

based on product wear, damage and new technology. Consumption will not be negatively

affected by climate because our products are designed to be used indoors. In fact, the high heat

and humidity may actually have a positive impact on consumption by driving customers inside

for physical activity. Inclement weather such as sandstorms may complicate ground

transportation within the region, but the country has excellent roadways, and geography will

have a negligible impact.

PRODUCT ADAPTATION

We plan to export a version of our mid-priced strength training line of fitness equipment,

but several factors must be adapted for the foreign market. Labels, product manuals,

maintenance schedules and warranties must be written in both English and Arabic. All machine

weight stacks must utilize the metric system of measurement, which is standard in the UAE.

Currently, none of our strength products require electricity. If we choose to market electrical

products in the future, they must be compatible with the country’s two hundred twenty volt

electrical supply.

CUSOMER RELATIONS

The primary customer relations requirements for our product line are installation,

technical support/minor repair and warranty return. Our distributors will be expected to handle

product installation and field support/minor repair. Initially, we will provide training for key

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members of our distributor’s organization on product knowledge, service and troubleshooting.

We expect our distributor to address major warranty issues and report them to our corporate

headquarters in a timely manner. Although our distributor will be required to keep a small

inventory of belts and other repair parts, they will also be available for purchase through our

website.

PROMOTIONAL MIX

We plan to utilize print advertisement in hospitality and fitness trade related magazines to

help create more wide-spread brand awareness within our target segments. Due to the personal

relationship style of business in the UAE, direct selling will be our primary form of promotion,

followed by trade shows. Both of these formats allow for direct contact with the customer and

can target our specific customer segment rather than the general public. We have also included

some funding for sales and channel distribution promotions, particularly to give personnel more

leverage for product introduction.

EXPORT STRATEGY

Large industry competitors in the Middle East typically utilize a foreign country

distributor to handle their product lines and showcase them in multiple storefronts or temporary

branded gyms/fitness clubs. As a smaller firm, our financial constraints and lack of international

marketing expertise have directed us to a different export plan. Our goal is to establish a

relationship with a home country middleman or export management company that already has a

physical presence in Dubai or Abu Dhabi. We will require an exclusive agreement and a

foreign-based showroom. We plan to negotiate a confirmed irrevocable letter of credit and ship

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our merchandise FAS Port of New Orleans. In this way, we plan to reduce our company’s

financial burden and overall risk, although we will have to relinquish most marketing control to

the intermediary.

PRICING & FINANCIALS

The fitness equipment industry in the United Arab Emirates is currently worth

approximately $50M (USD). In our first year, we expect roughly three percent market share or

the equivalent of $1.5M (USD). This equates to six hundred units considering an average unit

sale price of $2,500 (USD). Our first year’s costs of goods sold are about $1,320 (USD) per unit

or $792,000 (USD) annually. We are adhering to a cost plus price structure with a margin of

eighty nine to ninety percent before fixed costs/overhead.

CONCLUSION

As a company, we cannot ignore globalization as a trend in the fitness industry. Over

the last five years, we have achieved remarkable market share with respect to our company size.

Much of this is due to our tremendous design team and staff. The recent requests for our

products from the Middle East and Europe suggest that if we do not segue into international

markets, we will pay an enormous opportunity cost in the long run.

10
International Export Marketing
Plan Workbook
Professor: David Baker
University of Louisiana at Lafayette

© David Baker, 2007

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© David Baker, 2007 12
Introduction

This workbook was partially adapted from the International Marketing Plan Workbook
published by the Small Business Administration of The United States of America.

The purpose of it is to aid your group in the preparation of an Export Marketing Plan.

This workbook will lead you step-by-step through the process of exporting your product to an
international market. It is divided into sections. Each section should be completed before you
start the next or begin writing the Export Marketing Plan portion of your group paper. After you
have completed the entire workbook, you will be ready to write the international marketing plan
to export your product. The remaining chapters of this Guide will assist you in determining
where and how to find the resources to begin exporting successfully.

Note: When products are mentioned, services should be assumed also.

Planning
Why do companies need to complete an export marketing plan? Below are five reasons it is
worth the time and effort:

(1) Careful completion of a plan will helps evaluate the level of commitment to exporting.
(2) The completed workbook can help assess your chosen products’ potential for the export
market.
(3) A plan gives you a tool to help you better manage your international business operations
successfully.
(4) A plan helps communicate business ideas to persons outside a company. It is excellent
starting point for developing an international financing proposal.
(5) With a plan, the business is able to stay focused on primary objectives and has a
measuring tool for results as each step is achieved.

© David Baker, 2007 13


Why is planning so important?

“Plans mean nothing, but planning is everything”


- Dwight D. Eisenhower

The planning
process forces you
to look at your
future business
operations to
anticipate what
will happen. This
process results in better preparation for the future. Just as importantly, it gives you a
knowledgeable basis for tactical adaptation in a fluid competitive business environment.
The Plan itself may be adapted, changed, and updated regularly based on myriad changes to the
marketplace, but the process of planning is vital for marketing your product in an international
marketplace and at home.

Doing business internationally is not a simple undertaking. It requires much preparation and
research prior to the first transaction. A business needs to be willing to commit significant
resources of time, personnel, and financial capital to international expansion. It needs to adopt
an adaptive approach to differences in doing business in other countries and it needs to be
prepared to develop customer and channel intermediary relationships in a variety of different
settings with different cultural, legal, and environmental variables.

Business and Marketing Planning is done both domestically and internationally to assess your
present market situation, customer orientation, business goals, commitment, organization, and
financial feasibility. Both from a domestic and international perspective, this fundamental
business practice will increase your opportunities for success.

A plan must be revised on a continual basis as your knowledge increases about


international markets. It is a process and not a product. A systematically managed
process of revision and adaptation is a form of “knowledge management” that builds your
abilities and competencies to identify opportunities and export products to new and
profitable markets.

© David Baker, 2007 14


Preliminary Market Screening
The first step is to conduct preliminary screening of your country to define the physical, political,
economic and cultural environment in which you will operate your business.

The branch of government in the United States responsible for promoting export growth is
the U.S. Department of Commerce, through its Foreign Commercial Service. You can find
a wealth of individual country research from its export related website www.export.gov;
the web site has “Country Commercial Guides” for each country where there is a United
States Foreign Commercial Service presence.

In addition, the Department of State has background economic analysis and culture
reports on each country at www.state.gov, as does the Central Intelligence Agency’s
“World Factbook” which can be accessed at www.cia.gov.

Other helpful references you may wish to vist include:

• www.worldbank.org
• www.geographyiq.com
• www.infoplease.com
• www.globaledge.com
• www.executiveplanet.com
• www.tradeport.org
• www.ustrade.gov/website/CCG/nsf
• www.stat-usa.gov
• www.freight-calculator.com

Cultural differences, demographic and economic indicators of population, income levels, and
consumption patterns should be considered in the development of an export marketing plan. In
addition, statistics on local production trends, along with imports and exports of the product
category, are helpful for assessing industry market potential. Often, an industry will have a few
key indicators or measures that will help determine the industry strength and demand within an
international market. A manufacturer of medical equipment, for example, may use the number of
hospital beds, the number of surgeries and public expenditures for health care as indicators to
assess the potential for this product.

© David Baker, 2007 15


Step 1: Cultural Environment Analysis
The data in a cultural analysis should include information that helps the marketer make market
planning decisions. However, its application extends beyond product and market analysis to
being an important source of information for someone interested in understanding business
customs and other important cultural features of the country (Caetora and Graham, 2006).

A Cultural Analysis should at a minimum include relevant research regarding the following
questions:

• What is relevant regarding the country’s history?


• What is relevant about the country’s geographical setting? (i.e. location, climate,
topography)
• What is/are the official languages of the country? Are there any relevant dialects
within the country?
• What are the predominant religions and other belief systems?
• What is relevant about the country’s social institutions? (i.e. Family, Extended
Family, Marriage and Courtship, Male/Female Roles)
• What is relevant about Education in the country?
• What is relevant about the Political System/Structure of the country? (i.e. Parties,
stability, local vs. federal government control, etc.)
• What is relevant regarding the legal system? (Organization, code/common, socialist,
Islamic, intellectual property protection?)
• What are the relevant social organizations? (Social classes, organizations, Race,
ethnicity, and subcultures)
• What are the relevant Business Customs and Practices?
• What are the cultural views regarding aesthetics? (Fine Arts, Music, Drama, etc.)
• What are the current and historical living conditions in the country?
• What is relevant regarding National Dress and types of clothing worn at work?
• What are the primary recreation, sports or other leisure activities?
• What are the cultural views toward Social Security and Healthcare?
• Anything else you determine is relevant culturally to the country you have been
assigned.

Note! The following page has been pre-formatted for you to write a
Cultural Environment Analysis of your assigned country. Write a
Cultural Environment Analysis that is no less than 5 and no more
than 10 double spaced pages within this document.

© David Baker, 2007 16


Introduction/Cultural Summary:

The United Arab Emirates is comprised of seven states or “emirates” including Abu

Dhabi, Dubai, Sharjah, Ras Al-Khaimah, Ajman, UmmAl-Qaiwain and Fujairah located on the

Arabian Gulf. Due to significant oil reserves and exports, the federation enjoys a trade surplus

and high per capita income. Though the UAE culture is similar to that of its Arab counterparts,

moderate foreign policies have enabled the country to assume a leading role in Middle Eastern

affairs.

History:

Formerly known as the Trucial States, the UAE was established on December 2, 1971.

The traditional society consisted of two subcultures: tribes of nomads that roamed the desert and

sea-faring people concerned with pearling and trade. The culture changed drastically with the

discovery of oil in the early 1960s. Since then, oil exports have provided extensive funding for

infrastructure and social programs, which have completely transformed the country and

improved the quality of life for its people.

Geography:

The UAE is situated on the Arabian (Persian) Gulf, bordering Oman, Qatar and Saudi

Arabia. The country is approximately 32,275 square miles (roughly the size of Maine), the bulk

of which is desert. Coastal plains follow along the Gulf of Oman and Persian Gulf, and the Al-

Hajar al-Gharbi mountain range forms its eastern border. Due to the desert, the UAE climate is

typically dry with high temperatures (except in the higher terrain of the eastern mountains).

Most of the population is centered on the coastal areas where the weather is more tolerable.

Environmental issues include sandstorms, oil spills and lack of fresh water sources. The primary

natural resources are petroleum and natural gas.

Language:

© David Baker, 2007 17


Arabic is the officially recognized language, but English is more common for business

purposes. Due to the large number of migrant workers, Hindi, Urdu, Farsi and Filipino are also

prevalent in some areas.

Religion:

Islam is the dominant religion of the United Arab Emirates, as well as its neighboring

countries. Sharia or Islamic Law prevails over virtually all personal matters, the economy and

politics. Accordingly, pork and alcohol are often discouraged for expatriates and not allowed at

all for Muslim nationals. Unlike some of their neighbors, the UAE does allow for the practice of

other religions.

Social Institutions:

Social institutions are very traditional in the UAE. Gender roles are no exception.

Although women are often highly educated, they still opt for marriage and children. Only 6% of

the UAE labor force is female. Females who choose to work typically prefer positions that do

not require mixing with males. Legally, women and men are equal, but patriarchal ideology

prevails.

Emirati marriages tend to be arranged, and nationals are socially and financially

discouraged from marrying non-Emiratis. Extended households are being replaced by nuclear

families, and large families are promoted by the government. Husbands are expected to handle

the majority of family business matters, but the nature of the nuclear family household has

contributed to an increase in authority over domestic issues for wives/mothers.

© David Baker, 2007 18


Education:

Before the inception of the United Arab Emirate federation, education was limited to the

small minority of wealthy and elite. Since the formation of the UAE, the formal education

system has flourished via the supervision of the Ministry of Education. Today, education is free

for all citizens from kindergarten to university. Compulsory attendance until the ninth grade is

mandated by the federation; however, the majority of graduating students (eighty percent of

males and ninety-five percent of females) apply for higher education. A major focus of public

schools is to ensure that the traditions and ideology of Islam prevails in the UAE.

Expatriate children are allowed to attend public schools in the United Arab Emirates for a

nominal fee. However, most expatriate families send their children to privately run institutions,

many of which follow curriculum from their specific country of origin. The large number of

private sector schools and the diversity of their programs accommodate and help to preserve the

wide range of cultures that coexist in the UAE.

Political System:

The political system of the United Arab Emirates is somewhat complicated because each

separate emirate functions as an absolute monarchy, particularly on local levels. The Emirs, or

rulers, of these emirates have been historically chosen based on tribal heredity; thus, there are no

political parties. Each state maintains its autonomy on the whole, but each depends on the

federal government for major issues such as foreign affairs, defense and large social programs

(education, healthcare, etc.). Consequently, a percentage of the emirates’ revenues are

relinquished to the federation. The UAE constitution seeks to unite the seven states through

federal executive, legislative and judicial bodies. The constitution focuses on preserving

tradition, while adapting to modern standards. The cooperation among the emirates has been the

key element to successfully achieving political stability.

The executive branch is comprised of the President, Vice President, Prime Minister,

Federal Supreme Council and Council of Ministers (cabinet). Usually the Vice President and
© David Baker, 2007 19
Prime Minister positions are held by the same person. The President and Vice President roles

are pseudo-elected positions; i.e., the Supreme Council always elects the Emir of Abu Dhabi as

President and the Emir of Dubai as Prime Minister. The Federal Supreme Council includes the

rulers of each emirate. The FSC not only elects the President and Prime Minister, but also

appoints the Council of Ministers (cabinet) and Federal Supreme Court judges. The Supreme

Council Also handles some legislative duties such as proposing and ratifying some government

policy, treaties and national laws.

The legislative branch of the UAE is a parliamentary body called the Federal National

Council or FNC (not to be confused with the FSC), which consists of forty members. Half of the

FNC members are appointed by the Supreme Council, and half are elected democratically. The

federation has long-term goals to establish the Federal National Council as an entirely elected

body. The history of these emirates under monarchy rule dictates that the transformation to an

election system be implemented slowly, in order to be effective.

The judicial branch of the UAE federal government is primarily handled by the Federal

Supreme Court. The body is made up of five judges appointed by the FSC and is guaranteed to

by independent by the constitution. As in the U.S., the Supreme Court is charged with

determining the constitutionality of federal law. In the UAE, they also serve to mediate conflicts

between the separate emirates. The Supreme Court is generally more liberal than many of its

Arabic counterparts and applies some secular legislation, but the bulk of the legal system is

based on Sharia (Islamic Law).

Legal System:

Any matter that is not considered a federal issue is left to the individual emirate

governments. Although each local government may be run differently, most are organized with

departments that coincide with the federal government Ministries. Many have set up local

agencies to handle initiatives involving tourism, the environment, culture and health. The

regional ruling families hold traditional majalis, similar to town hall meetings, to hear grievances
© David Baker, 2007 20
from their people. As with federal legislation, local laws are patterned after Islamic law called

Sharia. Seven independent legal systems can complicate matters because one must contend with

each emirate on an individual basis.

Business law in the UAE favors Emirati nationals and local companies. The government

has heavy restrictions on foreign business in order to protect local entities. These restrictions

force companies to contract with agents. However, the U.S. Embassy advises companies to

become well acquainted with business partners and seek local legal counsel before forming such

contracts because it can be very difficult to legally dismiss non-performing agents. UAE offers

free trade areas which have successfully increased international investment and trade.

In specific areas, the UAE promotes foreign investment. Over thirty-two free trade zones

have been established in several emirates, which allow complete foreign ownership of the

enterprise with absolutely no import or export taxes. No corporate taxes will be levied on any

company in the fee zone for up to thirty years. An independent fee zone authority handles

necessary licensing and aids companies in forming free zone establishments (FZEs). FZEs are

limited liability companies that must adhere to their specific free zone rules and regulations.

Social Organizations:

The UAE society is categorized by the nationals (Al-Muwanteneen) and the immigrants

(Al-Wafedeen). The small population of nationals is more privileged. Four main social classes

of nationals in order of importance are: ruling sheikhly families, merchant class, new middle

class and low income groups. Immigrants are subdivided as top professionals (those with

international contracts), mid-range professionals (teachers, salespeople, etc), and semi/unskilled

workers (primarily Asian expatriates). Emirati nationals make up less than twenty percent of the

country’s workforce. Fifty percent are South Asians from India, Pakistan, Sri Lanka,

Bangladesh and the Philippines. Twenty-three percent of the workforce is Iranian or from

similar Arabic nations.

Business Customs:
© David Baker, 2007 21
Business in Arabic countries is significantly based on personal relationships. Many

companies in the UAE are family owned and operated, and major decisions are often made by

the patriarch of the family. It can be helpful, if not necessary, to forge relationships with other

people in the organization/family before approaching the decision-maker. The Emirati approach

to punctuality is similar to the Mañana attitude of Hispanic cultures; however, it is expected that

westerners arrive on time. English is generally acceptable for business practices, but all formal

advertisement and literature (including business cards) should be printed in both English and

Arabic.

Business agreements take place gradually in the United Arab Emirates. Etiquette is vital

in the UAE, and it is considered uncouth to begin discussing business before a short period of

small talk. It is extremely rude not to accept offers of hospitality such as coffee or tea. Hard-

hitting sales tactics are not effective in the Arabic culture. As such, business negotiations usually

take place over a series of lunch or dinner meetings. These meetings focus on the social aspect

of hospitality as much as the business being discussed. As in most Arab countries, verbal

agreements can be legally binding.

Aesthetics:

The Emirati aesthetic preferences can be clearly seen in its architecture. Local

governments work hard to safeguard Islamic-style architectural elements including arched

windows, gates and decorative stucco. Many of the municipalities encourage the use of

traditional local themes such as date palm trees, falcons, camels, the Arabian horse, pearling boat

and coffeepot.

The federation offers a wide range of support for writers, actors, folk dancers and artists.

The area has a strong tradition of music and folk dance, which are still celebrated today in

various festivals and on cultural holidays. Many state events incorporate of demonstrations of

storytelling and poetry as entertainment. Other than folk dancing, female participation in

performance arts is limited.


© David Baker, 2007 22
The youth of the United Arab Emirates are becoming more global in their tastes for

music and media. In recent years, the modern music scene has exploded in the larger emirates.

Dubai even hosts an annual heavy metal event called the Dubai Desert Rock Festival. Western

musicians who have performed in the UAE include: Aerosmith, Santana, Christina Aguilera,

Elton John, Pink and Cold Play. Though, most of the UAE’s television shows are produced by

other Arabic countries, Bollywood has taken the younger generations by storm.

Living Conditions:

The UAE boasts modern, comfortable living conditions, and this is true for Emirati

nationals as well as upper and middle class immigrants. Conversely, the Human Rights Watch

and the United Nations High Commissioner for Refugees claimed that lower class Asian laborers

were forced to live in crowded unsanitary conditions (2007). The UAE Ministry of Labor claims

to be addressing the issue by requiring that private businesses submit to international labor

standards. Unfortunately, the government has not implemented the proposed legislation allowing

unionization of labor and setting a minimum wage.

Dress:

Male nationals in the UAE favor the traditional attire of a white robe called a kandoura

and a white head clothe called a ghutrah with a black rope or aqal. These are well-suited to the

soaring temperatures and the desert sun. Traditional women’s garb is a long dress with a black

cloak called an abayah and a head cover or hijab. Men typically grow short beards and

mustaches, while women favor long hair. Due to the influence of other cultures over the last

thirty-five years, the younger generations prefer western style clothing. Regardless of clothing

preference, women are expected to dress very conservatively. Female tourists are encouraged to

wear sleeves down to the elbows and long skirts or pants.

Recreation and Leisure Activities:

The United Arab Emirates geography lends itself to a wide range of recreational

activities. Water sports are enjoyed all along the coastline; camel and horse races are particularly
© David Baker, 2007 23
popular in the interior, and shopping is a major pastime in urban areas. The country hosts a

number of formal sporting events, particularly in golf, soccer, tennis and cricket. Its numerous

resorts offer an assortment of sports and fitness based activities. Urban area hotels and theme

parks provide an array of nightlife options such as pubs, dance clubs and variety shows. Due to

Sharia, alcohol is limited to non-Muslim expatriates and tourists. Outdoor festivals for music

and the performing arts are also held during the cooler months.

Social Security and Health Care:

Emirati nationals benefit immensely from oil revenues in the form of social programs.

Comprehensive high-quality healthcare is provided free of charge and has substantially raised

Emirati life expectancy. Extensive infrastructure funding has led to the development of a

modern highway system and desalination plants for fresh water. Many nationals take advantage

of the free education system up to the tertiary level, which has successfully decreased illiteracy

rates. Other programs include social security, family allowances, subsidized utilities and low

income housing development projects (some of which have fallen under scrutiny). Of these

programs, immigrants benefit primarily from the healthcare program.

© David Baker, 2007 24


Step 2: Demographic Summary and Analysis

Country: United Arab Emirates


Source of Data: www.cia.gov, www.everyculture.com,
www.uaeinteractive.com
Population: 4,798,491
Age structure: <14years (20.4%) 15-64years (78.7%) >65years (4%)
Median age: 30.1 overall, 32 males, 24.7 females
Population growth rate: 3.689%
Birth rate: 16.02/1000
Death rate: 2.11/1000
Net migration rate: 22.98/1000 highest in the world
Life expectancy at birth: 76.11
Total fertility rate: 2.42 children/woman
Ethnic groups: 19% Emirati, 23% Arabic/Iranian, 50% South Asian
Religions: 96% Muslim (primarily Sunni), 4% Other
Literacy: 77.9%
Other Relevant Indicators: Less than 20% of the working population is Emirati. This
is due to the influx of migrant workers since the oil boom
in the late 60s.

Which of the Demographic Indicators above are most relevant to the success or failure in

exporting a product from the U.S.A to this country and why?

The most prevalent demographic indicator involving exports to the UAE is religion.
The primary religion is Sunni Muslim, and the associated ideology is pervasive throughout the
legal, social and business environments. Sharia shapes all laws, including business/contract
law, taxation and trade barriers/restrictions. Socially, Islam establishes “appropriate” gender
roles and customs that must be observed. In business circles, the Muslim religion requires
business to stop for prayer five times a day and dictates that no business should take place on
Fridays.
The extraordinarily diverse ethnic blend of the United Arab Emirates will certainly
make the exporter’s marketing job more difficult. The marketing mix must be adapted to target
a wide variety of ethnic groups due to the extremely high migration level in the country.
Considerations must be made for advertisement/promotional media, educational/warranty
materials and cultural preferences, to name a few.

© David Baker, 2007 25


Step 3: Economic Summary and Analysis

Country: United Arab Emirates


Currency
Currency: Emirati Dirhams
Currency code: AED
Float, Controlled, or Managed Float: Managed Float. Tied to USD since 2002
Economy
GDP (purchasing power parity): 184.3 billion USD
GDP - real growth rate: 260.1 billion
GDP - per capita (PPP): 39,900
Unemployment rate: 2.4%
Population below poverty line: 19.5%
Inflation rate (consumer prices): 20%
Current account balance: (in USD) 34.4 billion
Net Exports: (in USD) 210.5 billion
Exports (commodities/types)- Crude oil 45%, natural gas, dried fish, dates
Exports – largest partners: Japan 25%, South Korea 8.6%, Thailand 8%,
India 4.8%
Imports: Imports (commodities/types) 145.8 billion machinery, transportation
equipment, chemicals and food
Imports (largest partners) China, India, USA
External Debt: 126.9 billion
Economic aid relationships:

Write a brief overview of the current state of the economy in your target country including
identification of the most relevant indicators related to exporting a product from the U.S.A to
this country:
The economy of the United Arab Emirates has remained positive throughout the
recent worldwide financial problems stemming from the U.S. recession. This is chiefly
attributed to considerable overseas investments and assets. The government is continuing
with many long-term infrastructure projects to bolster the economy, and unemployment
remains low. The UAE maintains an export surplus, predominately due to crude oil.
Looking forward, the country is focused on developing an economic structure that will
promote diversification of business, so that it will not be wholly dependent on oil revenues.

The UAE boasts a high GDP per capita, a very low unemployment rate and well-
established government. These are overall signs of economic strength and stability. The
UAE and the USA have a solid business relationship; imports/exports between the countries
have increased consistently over the last five years. The fact that the UAE is considered the
business center of the Arabian Gulf, as well as its proximity to the growing Asian market
also makes it very appealing for US exports.

Identifying a product with export potential


Step 1: Secondary Market Research
© David Baker, 2007 26
Begin this process by researching your target market through the “Country Commercial
Guide” available at www.export.gov in the “Market Research”, Market Research Library
section of the website. Look in the chapter titled “Leading Sectors for U.S. Export and
Investment”. Utilize this secondary source along with additional secondary research to
brainstorm relevant products with export potential.

List below three product sectors/groups which you believe have export potential for your
assigned market. Briefly write down why you believe each product will be successful in your
assigned market. The reasons should be supported with your secondary market scanning research
from the “Country Commercial Guide” or other secondary sources you list.

Business Sectors with Export Potential Reasons for Export Success


Aircrafts/Aircraft Parts Tourism is on the rise. Dubai is quickly
becoming a business hub for the region.
Airport expansion/construction is currently
taking place. There is no local production of
aircrafts or aircraft parts.
Medical Equipment UAE has plans to establish 500 new health
clinics and 100 new hospitals over the next few
years. Healthcare is run by the government.
Air Conditioning There is a large boom in construction led by
population increases, coupled with an extremely
warm climate.
Sporting Goods Entertainment/leisure real estate projects are in
the works ($80Billion over the next 10 yrs).
New fitness center franchises are opening.
Large numbers of expatriates participate in a
variety of leisure activities.
Building Materials Billions of dollars in construction projects are
planned over the next decade.

What are some products within these sectors that are unique that should offer an opportunity for
Export success to this market?

Products with Export Potential


1. Diagnostic Medical Equipment
2. Aircraft Engines
3. Window Unit Air Conditioners
4. Fitness/Exercise Equipment
5. Steel/Iron Bars for construction

© David Baker, 2007 27


Step 2: Choosing a Product to Export

Critical Group Decision Point!!


Which of these products have you decided has the most
export potential?

Product chosen to export: Fitness Equipment

Step 3: Export Product Evaluation

What key selling points make your product attractive to end customers in your target country?
1. High Quality/Durability
2. Affordability
3. Sleek/Innovative Modular Design
4. Variety of Equipment (Strength)
5. User Friendly

Why do you believe international channel intermediaries will purchase your company’s
products? Note: (if your group is choosing not to use an intermediary and selling direct to the
consumer, you should be prepared to justify your channel strategy later in the plan.)
1. High/growing commercial demand for fitness equipment in UAE.
2. Increase in spare time for leisure activities.
3. Government actively supports/endorses fitness/health.

What specific secondary data did you use to arrive at this decision?

The secondary data that we used came from Country Commercial Guide from
www.export.gov. The Country Commercial Guide informed us that the demand for the
country's leisure retail outlets would likely increase at a high rate. The UAE Government
has also decided to move toward a five-day work week rather than the previous six-day
work week. This will allow expatriates and locals more time to enjoy leisure activities.
The government is also a strong supporter of sports, exercise and healthier lifestyles. All
of this information helped us to determine the strong reasons why intermediaries would be
interested in purchasing our fitness equipment.
These reasons also show that there is a lot of demand for our product in the
UAE. This means that the channel intermediaries will have a favorable market in which to
sell our products, which will in turn, lead to significant revenues. As long as the demand
for leisure activities continues to increase, it is likely that both our company and our
intermediaries will be able to break into this new market profitably.

© David Baker, 2007 28


Strategic Planning OMIT
Strategic Planning is the process of identifying a long and medium term vision for the direction
of a company along with measurable objectives for achieving that vision. In its simplest form,
the importance of strategic planning can be summed up by saying “If you don’t know where
you want to go, how will you get there?” Identifying realistic but challenging business
objectives that are strategically linked can be a challenging process in business environments
where competitive forces are fluid and perpetually changing. It is, however, a particularly
critical step in planning entry into the international marketplace.

Operational Planning is linked to strategic planning. It is done on a yearly basis and tracked
month to month and quarter to quarter. Ideally, operational planning involves measurable
tactical initiatives that are clearly linked to longer term strategic initiatives or objectives.

The “Balanced Scorecard” is one method used to link Strategic and Operational Planning and we
will use a basic version of this methodology in this workbook. It is a process first defined by Dr.
Robert Kaplan of the Harvard Business School and David Norton in the early 1990’s. Balanced
scorecard methodology builds on some key concepts of previous management ideas such as
Total Quality Management (TQM), including customer-defined quality, continuous
improvement, employee empowerment, and -- primarily -- measurement-based management and
feedback.

As described by Kaplan and Norton themselves:


"The balanced scorecard retains traditional financial measures. But financial measures tell the
story of past events, an adequate story for industrial age companies for which investments in
long-term capabilities and customer relationships were not critical for success. These financial
measures are inadequate, however, for guiding and evaluating the journey that information age
companies must make to create future value through investment in customers, suppliers,
employees, processes, technology, and innovation."

In brief, Balanced Scorecard methodology suggests that an organization is viewed from four
“balanced” perspectives with corresponding key performance measurements (metrics) that are
regularly collected, updated, and analyzed relative to each of these perspectives:

1. The Financial Perspective - What key performance financial measures are critical
for success in our market?
2. The Business Process Perspective - What business processes must we excel at
and how will we measure them?
3. The Customer Perspective - What are the key performance initiatives and
corresponding measurements that identify successful customer relationship management?
4. The Learning and Growth Perspective - What initiatives and corresponding
measurements will contribute to sustainable growth and leadership.

© David Baker, 2007 29


Step 1: Define a Long Term Strategic Vision OMIT
The vision/mission of an organization is a broad based organizational objective and it is usually
communicated as a statement. Strategic objectives and tactical operational objectives are
derived from the mission statement. In terms of this workbook, a mission should be identified
in relation to the long term objective(s) of the organization in terms of expanding its business
into the chosen target market (country).

What is the Long Term Strategic Vision/Objective for the company in this target country?

Step 2: Medium Term Strategic Planning


Define measurable medium term strategic goals related to your assigned country. What are
your financial, process, customer, and leadership two-three year strategic goals for your
international business products/services? There should be no more than 2-3 goals per quadrant
(i.e. Financial, Process, Customer, and Leadership).
Examples: Financial – Achieve 10% Net Operating Profit within two years, Achieve xx USD
sales in target market within two years, etc. Process - Expand physical distribution
opportunities through horizontal or vertical channel intermediary development, etc. Customer –
Achieve 15% end customer market share in unit volume within two years, etc. Learning and
Growth – Hire an export sales and marketing sales and marketing manager, complete
cooperative annual marketing plans with each channel partner, etc.

The Strategic Balanced Scorecard


Financial Customer
1 1
2 2
3 3
4 4
Process Learning and Growth
1 1
2 2
3 3
4 4

© David Baker, 2007 30


Step 3: Short Term Annual Operating Planning OMIT
Based on your long term vision and short-term strategic goals, you now need to define
measurable short-term Financial, Process, Customer, and Leadership annual operating
tactical initiatives that will help you reach your short term strategic goals/objectives. In other
words, you need to define what specific activities in the upcoming operating year will allow you
to reach your strategic goals.

Examples: Financial – Achieve break-even profitability in first year of operation within the
target market , Achieve $xx sales in target market in first year, Process – Establish an exclusive
agreement with a reputable channel intermediary within the first year, Establish a consistent
Freight Forwarder relationship, Establish a consistent term or sale and term of payment policy,
Modify product for metric definition or electrical standards, et., establish a cooperative annual
marketing planning process with intermediaries, etc. Customer - Attend international trade
exhibitions, Advertise for channel partners in international trade publications, Establish
cooperative promotional plan with channel intermediaries, acculturize packaging or product
ingredients to the target market, Learning and Growth - Hire export sales/marketing manage,
define roles and responsibilities of export manager.

The Tactical/Operational Balanced Scorecard


Financial Customer
1 1
2 2
3 3
4 4
5 5
Process Learning and Growth
1 1
2 2
3 3
4 4
5 5

© David Baker, 2007 31


Step 4: Strategy Mapping OMIT
“Map” the links between your Mission, Strategic Plan, and Operating Tactics. This involves
briefly explaining the links between your long term vision, strategic goals, and tactical initiatives
(this can also be done graphically by showing how each objective links to one or more objectives
at the higher level):

Briefly explain (or show graphically) how your Short Term Operating Plans/Tactics are linked to
your medium term strategic objectives and long term vision?

© David Baker, 2007 32


Industry Analysis
Step 1: Identify Secondary Industry Data
Locate secondary export data available on your industry. Example: Utilize the Country
Commercial Guide” from www.export.gov, identify major trade organizations within your
business sector, identify foreign government organizations that promote imports or trade,
etc.

What sources of secondary export data did you find for your product and country (Do not only
list those give above!)? List them below:

Data
Reliability
Name Website (if applicable)
(High/ Low/
Unknown)
AME Info www.ameinfo.com Unknown
American Business Council of Dubai
www.abcdubai.com High
& the Northern Emirates
Commerce, US Dept. www.buyusa.gov High
Country Commercial Guide www.export.gov High
Industry Canada strategis.ic.ge.ca High
International Health, Racquet and
cms.ihrsa.org Medium
Sports Club Association
UAE Interact www.uaeinteract.com Medium
Wikipedia www.wikipedia.com Low

© David Baker, 2007 33


Step 2: Identify Relevant Trade Associations
Based on your secondary research, list some trade associations that may be relevant to your
product?
1. International Health, Racquet and Sports Club Association – IHRSA
2. Global Fitness Association
3. National Sports Association – NSA
4. IDEA Health and Fitness Association
5. Sporting Goods Manufacturer Association – SGMA
6. Sport and Fitness Equipment Association – SAFEA

Step 3: Assess International Growth Potential


Find your industry’s growth potential internationally. Based on your secondary research, what is
your industry’s international growth potential? What specific secondary information are you
using to form the basis of this judgment?

The market for fitness equipment is expected to grow steadily due to a vast increase in
tourism, massive infrastructure investment and youthful citizens. Industry estimates vary from
ten to twenty percent. In-bound tourism has dramatically risen in the UAE over the last decade,
and over thirty new hospitality industry construction projects are in the works to accommodate
these travelers. Hotels in the UAE generally provide separate facilities for men and women due to
a strong preference for modesty by Muslim women.
The government sponsored infrastructure projects are increasing the standard of living for
most Emirati citizens, and expatriates enjoy tax-free income. A market with increased per capita
income combined with a young population is ripe for the fitness industry. Additionally, the UAE
has one of the highest gym usage rates in the world according to the Sportex Middle East Fitness
Expo organizers.

© David Baker, 2007 34


Customer Segmentation
It is important to not only identify the basic nature of the company or individual consumer of
your product, but also to “segment” the consumer population into relevant categories.
Segmentation of the customer base allows you to understand local consumption preferences and
market characteristics. Market or customer segmentation is the the process of grouping
customers into distinct groups that have similarities in needs, attitudes, habits, or behavior that
can be addressed through marketing tactics.

Depending on the product, segmentation can be based on a variety of customer characteristics


including cultural, demographic, economic, psychographic, and/or behavioral and attitudinal
variables (Examples include age, generational cycles, income level, education level, purchase
patterns, quality expectations, etc.)

Step 1: Identify the consumers of your product


Who are the consumers of your product?

Businesses

Step 2: Market Segmentation


How have you segmented the market and what is the estimated size and of each segment?

Segments: Estimated % of
Market
1. Luxury Hotels/Spas 30
2. Freehold Property 5
3. Health/Fitness Centers 30
4. Universities/Institutions 25
5. Dubai Sports City 10

Explain the basis of your market segmentation (i.e. age, demographic, purchase patterns, etc.)
along with a clear description of the group that each segment describes or represents within the
market.)

We have segmented the market based on the facility type because different types of
gyms will require different styles of equipment or different specific pieces within their line.
Each segment’s needs are primarily due to the fact that they serve different end users. By
establishing these categories, we feel that we can strategically alter our promotional mix to
address different needs.
Luxury hotels/spas service high-end travelers and will be interested in cutting edge
technology and sleek design to uphold their exclusive image. Freehold property owners
will most likely choose gym equipment with smaller, more compact products due to room
size constraints. Health and fitness centers serve the public and need durability in their
products to withstand the constant wear and tear. Institutions such as universities and
hospitals may have a variety of decision-making criteria and require specific procurement
procedures. Dubai Sports City is a very large entertainment complex that already carries an
array of other brands. Their needs would be best met by introducing products with new
technology.

© David Baker, 2007 35


Step 3: Identify Primary and Secondary Target Segments
Based on your market segmentation, what are your primary and secondary target segments that
you believe will be most attracted to your product?
Target Segments:
1. Luxury Hotels/Spas
2. Health and Fitness Centers

Briefly explain below your logic for targeting these segments over the others.

More and more luxury hotels and resorts are being built throughout the UAE. Hotel
and spa gyms must purchase high quality equipment rather than the cheapest product to
avoid constant repair issues and maintain and their exclusive image. Also, Health/Fitness
Centers are located all over UAE and are always looking for the newest and improved
equipment. Fitness club equipment has more wear and tear than in other venues, so their
turnover rate will be higher than that of hotels and spas. According to www.export.gov,
the next largest target market would be universities/institutions. Marketing to these
segments would prove to be much more difficult because of the legal constraints and
procedures involved with selling to government entities.

Step 4: Positioning
Based on your choices for target segments, what will be the meaningful 2-3 attributes of your
product and/or company that will differentiate if from the competition? (Examples: Wal Mart-
Every day lowest cost, Dell – Direct to consumer value with quality, Louis-Vuitton – status
symbol fashion accessory, Jet Blue Airlines – affordable, no frills travel, Target – Everyday
Value and higher quality, etc

Positioning Attributes:
1. High Quality/Durability
2. Affordability
3. Sleek, Innovative Modular Design

© David Baker, 2007 36


Product/Service Analysis
Given the market potential for your products in international markets, how is your product or
service distinguished from others? What makes it attractive or competitive? What are its
weaknesses in relation to the competition? What are potential threats to is success now and in
the future?

Step 1: Competitive Analysis


Sound business fundamentals require that domestically, as well as internationally, a business
must be fully aware competitive forces at work in the marketplace. A plan must be able to
briefly and concisely identify the competition in the target market and identify relative strengths
and weaknesses relative to your product.

Who are the largest competititors for your product in the target market?

Competitor: Product Estimated %


Market
Share
1. Life Fitness Commercial Fitness Equipment 30
2. Cybex Commercial Fitness Equipment 5
3. Nautilus Commercial Fitness Equipment 35
4. Matrix Commercial Fitness Equipment 10
5. Universal Commercial Fitness Equipment 20

What are the biggest competitive obstacles that will have to be overcome to establish your
product in the target market?

The biggest competitive obstacles are the lack of brand awareness in the Middle East
market and large, well-established competitors. Our price will not be the lowest available, so
it will take some time to prove that our equipment is more durable. We will need to develop
an effective promotional mix to introduce our product to specified segments, focus on
appropriate brand positioning and differentiating our product from our large competitors.
We would like to position our product as affordable, with high quality and excellent
service. These features are necessary to target the luxury hospitality market. Keeping up
with the newest technology will also be a must; we will need to make sure that our product
offerings are continually updated.

© David Baker, 2007 37


Step 2: Product SWOT Analysis
A “SWOT” analysis is a planning tool for summarizing “Strengths”, “Weaknesses”,
Opportunities”, and “Threats” intelligence regarding a business or its individual products gained
from the planning and environmental scanning process. An effectively executed SWOT
analysis should have the following characteristics (McDonald, 2000):

1. Focused on specific segments / products of critical importance to the organization’s


future.
2. Be brief and concise.
3. Identify KEY factors only.
4. List differential strengths, weaknesses, opportunities, and threats vis-à-vis competitors,
focusing on real competitive advantage.

Conduct a SWOT analysis of your product versus others in your chosen market:
Strengths Opportunities
1. High Quality/Durability 1. High Demand
2. Affordability 2. Government endorsement of fitness
3. Sleek/Innovative Modular Design 3. New hotel/fitness club construction
4. Variety of Strength Machines 4. Quickly developing technology
5. Health oriented segment (as opposed to
5. Comprehensive Website
fitness/strength oriented segment)
Weaknesses Threats
1. Novice Exporter 1. Well Established Competition
2. Competitors who offer Strength and
2. Costly Freight
Cardio Equipment
3. Difficulty finding a good distributor that
3. Cultural/Language Barriers
is not already under contract
4. Effects of the economic recession
4. Lack of awareness with UAE population
(financing, slower market growth, etc.)

Step 3: Key Selling Points


What are your product’s 3-4 best selling points/advantages relative to your targeted customer
segments?
Key Selling Points/Competitive Advantages:
1.High Quality/Durability
2.Affordability
3.New Technology/Innovative Modular Design
4. Minimal Maintenance
5.Variety of Equipment

© David Baker, 2007 38


What need(s) does your product fill in the targeted segments (see chart below regarding
Maslow’s Hierarchy of Needs; Self Actualization, Self-Esteem, Social, Safety, or
Physiological)?

Fitness equipment fulfills the self esteem and self actualization categories of Maslow’s
Hierarch of Needs. If used properly, the equipment enables a person to develop a lean, attractive
physique and an increased level of overall strength/health. Consequently, an increase in physical
attractiveness and health can lead to greater self esteem and the fulfillment of one’s potential
(self-actualization).

How complex is your product? What skills or special training are required to install your
product, use your product, maintain your product, and service your product?
Our fitness equipment line is simple to moderately complex. The majority of product
construction will be executed before export. Because products are modular, some assembly will
be required onsite, as well as occasional product servicing. This necessitates sufficient strength
to handle product weight and basic mechanical knowledge. Product use and maintenance require
no specialized knowledge. Product owners are expected to handle maintenance, which consists of
quarterly visual inspections for belt wear and signs of mechanical failure such as bent/broken or
loose parts. Detailed product manuals will and website support will be provided.

If your product is an industrial good:


1. What is the useful life of your product?
2. Is use or life of product affected by climate? If so, how?
3. Will geography affect product purchase; for example transportation problems?
4. Will the product be restricted abroad; for example tariffs, quotas or non-tariff barriers?

N/A

If your product is a consumer good:


1. Who will consume it? How frequently will the product be bought?

© David Baker, 2007 39


2. Is consumption affected by climate?
3. Is consumption affected by geography; for example, transportation problems?
4. Will there be product-related requirements, i.e. product certification, testing, special
government approval, quotas, etc.?
5. Does your product conflict with traditions, habits or beliefs or customers abroad?
Our fitness products are consumer goods that have approximately ten-year life spans.
Initial orders for new facilities may consist of a number of items. Future orders will be based on
product wear, damage and new technology. Consumption will not be negatively affected by
climate because our products are designed to be used indoors. In fact, the high heat and humidity
may actually have a positive impact on consumption by driving customers inside for physical
activity. Inclement weather such as sandstorms may complicate ground transportation within the
region. Although the UAE has a mountainous area, the population is centered along the coastline,
so geography will have negligible impact.

Step 4: Identify Product Adaptation Requirements


What product adaptation requirements must be met? (Example: labeling, Metric measurements,
AC or DC electrical, voltage, etc.)

Labels, product manuals, maintenance schedules and warranties must be written in both
English and Arabic. All machine weight stacks must utilize the metric system of measurement,
which is standard in the UAE. Currently, none of our strength products require electricity. If we
choose to market electrical products in the future, they must be compatible with the country’s two
hundred twenty volt electrical supply.

Step 5: Identify Customer Relations Requirements


Are there any features or requirements for utilization of your product that will have to be
addressed in order to sell it in your assigned market? (Examples: Installation, Technical Field
Support, Warranty Return, Consumable Supply Agreements, etc.) If so, who will handle
customer relations in this market?

The primary customer relations requirements for our product line are installation,
technical support/minor repair and warranty return. Our distributors will be expected to handle
product installation and field support/minor repair. Initially, we will provide training for key
members of our distributor’s organization on product knowledge, service and troubleshooting.
We expect our distributor to address major warranty issues and report them to our corporate
headquarters in a timely manner. Although our distributor will be required to keep a small
inventory of belts and other repair parts, they will also be available for purchase through our
website.

© David Baker, 2007 40


Basic Export Marketing Strategy
In international sales, the chosen “terms of sale” are most important. Where should you make
the product available: at your plant; at the port of exit; landed at the port of importation; or
delivered free and clear to the customer’s door? The answer to this question involves
determining what the market requires, and how much risk you are willing to take.

Terms of sale have internationally accepted definitions; learn to be familiar with the most
commonly used types and be prepared to include them in quotations. For definitions of INCO
Terms, see www.iccwbo.org/incoterms/faq.asp

Pricing strategy depends on terms of sale and terms of payment and also considers value-added
services of bringing the product to the international market.

Step 1: Determine Method of Exporting


Based on your secondary research, what is the channel of distribution orientation of other U.S.
firms that sell similar products in the country you have been assigned?

The larger companies develop a presence in the UAE with storefronts and showrooms.
In order to compete, smaller companies must have a significant competitive advantage. The
smaller companies generally use a combination of single service and full service middlemen
to sell, install and service their products. Most require exclusive agreements with each
distribution tier within the company.

Will you sell directly to the customer without intermediaries?


No
Why or why not?
The cultural barriers are far too great for a novice exporter to successfully handle
alone. Legally, a company must have a physical presence or a registered middleman in each
Emirate in order to do business. This would prove to be too difficult a strain on our
company’s financial resources to even consider. The UAE culture dictates that personal
relationships are necessary to run a thriving business. As in most countries, the longer the
relationship, the more reliable and profitable the business will be. Our company must take
advantage of the UAE’s booming tourism industry and cannot afford to wait to develop
substantial business relationships in each separate Emirate.

© David Baker, 2007 41


Will you use an Export Intermediary?

Yes
If so, what type and why?

Due to our lack of expertise in our target country, we have chosen to use home-
country exporters. The vast cultural differences between the United States and the United
Arab Emirates can lead to major marketing complications. Also, fitness equipment sales are
highly dependent on personal selling, and it can be extremely difficult to terminate contracts
with an Emirati-owned business. As such, we feel that a home-country middleman with a
presence in Dubai or Abu Dhabi and previous experience with this market would be an ideal
match for our company. This arrangement will definitely limit our control, but we feel that it
is worth the trade-off for significant risk reduction, which is essential in the current U.S.
economic climate. In accepting this lack of control, our company must be very careful in
screening prospective export intermediaries.

Regardless of whether you intend to use an intermediary or not, identify below the export
intermediary options available to you and their differences?
Merchant middlemen are located in the foreign country. This type of intermediary takes title
of the goods, and then sells them to consumers on their own account. They allow the
manufacturer to have little control over the distribution process.

Agent middlemen represent the manufacturer and arrange the sale of goods in foreign
markets. These intermediaries do not take title of the goods but work on commission instead.

Government-Affiliated Middlemen handle goods and services that are procured by foreign
governments or governmental agencies.

Home-country middlemen are intermediaries who are located in the manufacturer’s home
country. They provide many marketing services for those companies who have low
international sales volume and/or have little experience working in international trade. Some
examples are export management companies, trading companies and complementary
marketers.

© David Baker, 2007 42


Step 2: Parameters for an Intermediary/Local Representation Relationship
If you intend to appoint an export intermediary(s), answer the questions below in reference to
your channel partner requirements. If you intend to sell directly to the customer, answer these
questions in relation to your wholly owned local sales and service unit requirements:
1. What facility or facilities does the intermediary(s) need to service the market?

Our intermediary should have a warehousing facility, as well as a storefront/show


room to house a sample line up of our equipment

2. What type of client or channel relationships should your intermediary(s) be familiar with
in order to sell your product?

We need our middlemen to be familiar with the hospitality industry, particularly


luxury hotels, spas and resorts. Our intermediary should certainly need contacts
within the construction and/or tourism industries in order to take advantage of the
multitude of new resorts being built. Law mandates that our intermediary should have
registered agents in each Emirate. At a minimum, our distributor should have agents
in Abu Dabhi, Dubai and Sharjah (the larger, more populous Emirates).

3. Will your agreement be exclusive or non-exclusive? Why or why not?

Our agreement would have to be exclusive because we are a small firm trying to
establish our brand image in the UAE. To accomplish this, our product will need a
high level of support, and it is not feasible for an intermediary to properly service two
brands of strength equipment simultaneously.

4. What financial strength should the intermediary(s) have? (Note: this can be explained in
relation to your terms of payment strategy)
The product line we plan to market to the UAE is a high quality, mid-priced line of
strength equipment, not a low-cost/value line. The intermediary should have a high
level of financial strength due to the high prices that are typical of multiple large
orders. We expect our intermediary to have an irrevocable letter of credit, confirmed
by a large, stable financial institution located in the United States.
5. What other competitive or non-competitive lines are acceptable or not acceptable for the
intermediary to carry?

We only manufacture strength – style fitness equipment. We would prefer to have an


intermediary that carries a high quality cardiovascular-style line of fitness equipment
that could complement our product line. As mentioned above, we expect the
distributor not to carry any other strength fitness products. It is permissible for them
to handle other sporting goods such as team sports equipment, outdoor equipment, etc.
It is also acceptable for them to carry fitness apparel, shoes and other soft lines.

© David Baker, 2007 43


Step 3: Define International Pricing Strategy
What method are you using to calculate the landed (in country) price for each product?

Cost Plus

Why and what factors have you considered in making this decision?
Due to its close proximity to South East Asia, the UAE market has been inundated
with cheaply made, extremely low cost product. We are positioning our brand as high quality
and affordable, but not low-cost. American companies enjoy a reputation for excellent quality
in the UAE, and we intend to exceed those expectations. The cost of manufacturing fitness
equipment varies greatly with the price of steel, and it is generally expensive to ship due to
weight/size constraints. Volatility in the price of fuel only affects transportation costs even
more. A cost plus pricing strategy will allow us to take these factors into account and still
obtain a predetermined profit margin.

Critical Intl. Marketing Strategy Group Decisions!

Step 4: Identify Preferred Terms of Sale


Based on your analysis, what are your preferred international terms of sale
(INCOTERMS) and why did you choose them over other international terms
of sale?
Our preferred international term of sale for exporting strength training equipment to
the United Arab Emirates is Free Alongside (Port of New Orleans). Fitness equipment is
very heavy and transportation can be quite expensive, and by limiting our involvement to
road freight shipment from Lafayette to New Orleans, we can conserve a considerable amount
of cost. Likewise, we can reduce risk by transferring title of goods in New Orleans rather
than the destination port of Dubai. We also chose FAS (Port of New Orleans) because we
will only be responsible for export packaging, inland freight and port charges. Our
buyer/distributor will be responsible for the majority of logistics. We feel that our expertise
lies in our manufacturing technology, and we believe that a well-chosen intermediary will be
better equipped to handle these issues.

© David Baker, 2007 44


Step 5: Identify Preferred Payment Terms
Based on your analysis, what are your preferred payment terms and why did
you choose them over other terms?

The average price of one piece of strength training equipment is roughly two
thousand five hundred dollars. A full gym order is generally twelve to fourteen pieces,
which means one order may run approximately thirty to thirty-five thousand dollars. As
such, a distributor’s order can be quite expensive and thus carry a lot of risk for our small
company. We realize cash in advance would place an extremely high burden on our buyers,
but we must choose a term of payment that will lessen the high financial risks. Therefore,
we will require an irrevocable letter of credit that is confirmed a stable, domestic bank.

Step 6: Identify Preferred Mode of Transportation


Based on your analysis, what will be your preferred mode of international
transportation for delivery and why are you choosing it over other modes?

We have employed a modular design to the line of strength training equipment we


plan to market to the UAE. However, the large size/weight and odd shape of some of these
pieces render air freight too far expensive. The only realistic transportation method is ocean
freight. Conveniently, our manufacturing plant in Lafayette, LA is not very far from the
Port of New Orleans. From there, our distributor will take title to the merchandise and ship
it to Dubai City, which has the largest port in the United Arab Emirates. Our products will
be shipped via truck domestically and within the UAE.

Step 7: Define a Promotional Strategy


The basic objectives of Advertising and Promotion are to create Attention, Awareness, Interest,
and/or Desire to purchase a product. The promotional mix should be a balanced set of activities
intended to achieve these objectives.

Depending on your product characteristics, channel distribution strategy, and the country
you are targeting, promotional strategies will need to be acculturized in order to achieve
these objectives.

Promotional strategies and budgets for Business-to-Business products are usually dedicated
primarily to direct selling, sales promotions, trade publication advertising, and trade exhibitions.
Consumer Product promotional strategies are more Advertising and Promotion media related,
usually including channel intermediary promotional incentives, unless the company is pursuing a
Direct to Consumer channel strategy.

Based on your product, channel distribution strategy, and secondary research on your target
market, what will be the expected mix of tactics in your promotional strategy? What is/are the
primary objective(s) of each tactic in the promotional mix (i.e. “AIDA”: Attention, Interest,
Awareness, Desire, or Action)?

Promotional Mix AIDA Objective Estimated % of


© David Baker, 2007 45
Promotional
Budget
Direct Selling Interest/Desire/ 30
Mostly Action
Sales Promotions Desire/Some Action 10
Advertising (Print, Billboard, Radio, TV
Print Awareness/Interest 20
Billboard
Radio
TV
Retailer Co-op
Intermediary Co-operative Advertising and
Promotions
Channel Distribution Incentives and Promotions Desire/Some Action 5
Trade Shows and Exhibitions All 25
Internet / Electronic Awareness/Interest 10
Some Desire

Total AIDA 100%

Briefly justify your logic for choosing the promotional mix tactics and objectives listed above in
relation to your targeted segments?

Our company has little brand awareness in the target market, so we plan to utilize print
advertisement in hospitality and fitness trade related magazines. Due to the personal
relationship style of business in the UAE, direct selling will be our primary form of promotion,
followed by trade shows. Both of these formats allow for direct contact with the customer and
can target our specific customer segment rather than the general public. We have also included
some funding for sales and channel distribution promotions, particularly to give personnel more
leverage for product introduction. The UAE, like many countries, has a quickly growing
internet usage rate. As this rate increases and as our expertise of the country grows, we may
appropriate more than ten percent in future years.

© David Baker, 2007 46


Based on your secondary research, what are some specific industry trade shows or trade missions
will you participate in, if any? The following trade shows are held annually:

Trade Exhibition Name Location When Estimated Cost


1. Sportex Middle East Dubai December 30,000 USD
2. Beauty World Middle East Dubai June 10,000 USD
3. Sports Arabia Abu Dhabi February 40,000 USD
4.
5.

Do you need to consider the time of year to make travel to your assigned country? Why or why
not?

The climate is very warm for most of the year in the UAE, but it can be worse in July
and August. Realistically, most business dealings can take place indoors, so the climate will
not play a huge role. The month of September, however, is Ramadan. Ramadan is the Islamic
time for fasting and prayer. In the UAE, most inessential business dealings halt for the entire
month; so travel to the country will follow suit.

© David Baker, 2007 47


Pro-Forma Financial Plan
Step 1: Sales Forecast
Forecasting sales of your product is the starting point for your financial projections. Use realistic
estimates to produce a useful sales forecast. Remember that sales forecasts show volume only.
Actual cash flow will be determined by the cash cycle which includes supplier terms, delivery
dates, and payment terms and methods.

Note: Sales can be significantly affected by Terms of Sale and Terms of Payment. The relative
advantages and disadvantages of terms of sale and terms of payment should be considered in
relation to pro-forma sales volume. Taking into consideration terms of sale, terms of payment
along with build-up timing issues related to channel capacity, channel coverage, and delivery,
calculate the pro-forma sales volume as follows:

1. Fill in the units-sold line for markets 1, 2, and 3 for each year on the following
worksheet.
2. Fill in the sales price per unit for products sold in markets 1, 2 and 3.
3. Calculate the gross turnover/total sales (units sold x sales price per unit).

Gross Sales/Turnover Forecasts—First Three Years


We are marketing a mid-priced line of strength training equipment. We have determined that the
average cost of one piece of equipment in the line will be roughly 2,500 USD in the first year.
The fitness equipment industry in the UAE is worth approximately fifty million dollars/year.

Gross Sales/Turnover Year 1 Year 2 Year 3


Units Sold 600 940 1128
Sale Price/Unit 2500 2500 2500
Total Sales 1,500,000 2,350,000 2,820,000

© David Baker, 2007 48


Step 2: Cost of Goods Sold
The cost of goods sold internationally will differ from the cost of goods sold domestically,
particularly if significant product alterations will be required. These changes will affect costs in
terms of material, direct and indirect labor costs.

Understanding pass-through costs


In order to estimate your export cost of goods sold, you will need to add pass-through costs to
your domestic costs of goods sold based on your preferred international term of sale. To
ascertain the costs associated with the different terms of sale, it is normally necessary to consult
an international freight forwarder for a quotation.

Depending on the Term or Sale and the Terms of Payment, these costs are usually identified
separately on the invoice and passed through with little or no markup. A typical cost work sheet
will include some of the following factors. These costs are in addition to the material and labor
used in the manufacture of your product. For example, as shipment with the Term of Sale
“DDP”, or “Delivered, Duty Paid”, would include the following as pass-through costs:

export packing forwarding ocean freight


container loading export documentation bunker surcharge
inland freight consular legalization courier mail
truck/rail unloading bank documentation tariffs
wharfage dispatch
handling bank collection
terminal charges cargo insurance

On the opposite end of the Term of Sale spectrum, a shipment made “EXW”, or Ex-Works,
would not include any of the above listed pass-through costs other export packing in most
instances.

© David Baker, 2007 49


To complete the Cost of Goods Sold Pro-Forma worksheet, you will need to use data from the
sales forecast. Certain costs related to your terms of sale may also have to be considered.

1. Fill in the units-sold line for markets 1, 2, and 3 for each year.
2. Fill in the cost per unit for products sold in markets 1, 2 and 3.
3. Calculate the cost of goods sold—all products for each year—add down the columns.

Cost of Goods Sold—First Three Years

Cost of Goods Sold Year 1 Year 2 Year 3


Units Sold 600 940 1128
Cost Per Unit 1320 1320 1320
Total Cost 792,000 1,240,800 1,488,960

Based on your preferred term of sale, what specific pass-through costs have you included in your
cost per unit estimation and why?

Our term of sale is FAS Port of New Orleans. This requires us to handle export
packing, freight to the port and port charges. We will employ a freight forwarder to manage
these tasks and to handle all of our export documentation. For road freight, we assume full
truckloads of twelve to fourteen pieces on non-stackable pallets with a total weight of
approximately ten thousand pounds. With regular shipments, packing, freight and port fees
can be accomplished for less than one hundred dollars per unit.

© David Baker, 2007 50


Step 3: Projected Income Statement—Years 1 to 3 OMIT
You are now ready to assemble the data for your projected income statement. This statement will
calculate your net profit or net loss (before income taxes) for each year.

1. Fill in the sales for each year. You already have estimated these figures; just recopy them
on the work sheet.
2. Fill in the cost of goods sold for each year. You already have estimated these figures; just
recopy them on the work sheet.
3. Calculate the Gross Margin for each year (Sales minus Cost of Goods Sold).
4. Calculate the Operating Expenses specifically associated with the international marketing
program for each year.
5. Allocate the International Division’s portion of the firm’s overall domestic operating
expenses (International’s portion of lighting, office floor space, secretarial pool, etc.)

Note: For project purposes, general guidelines for each category as a % of Net Sales are
provided. These should not replace your group discussion of factors related to the specific
product or channel strategy you have chosen.

Intl Sales /Turnover General Year 1 Year 2 Year 3


Benchmark
International Sales 100%
Cost of Goods Sold 50-70%
Gross Margin 30-50%
Intl Operating Expenses
Legal/Accounting 1%
Advertising 2-5%
Intermediary Coop 2-5%
Advertising
Travel 2-5%
Trade shows 2-5%
Promotional Material 2-5%
Insurance 2-5%
Other 2-5%
International Division’s 5%
Domestic Expense
Allocation
Total International 20-50%
Operating Expense
Net Profit Before Income 5-15%
Taxes

© David Baker, 2007 51


Directions for Executive Summary and Presentation
1. Briefly read and familiarize yourselves with the workbook.
2. Organize group meetings and responsibilities to complete the various sections of the
workbook.
3. Complete the workbook by following the directions included.
4. Verify completion of the entire workbook. Your group should have finished all
sections in the workbook before continuing any further.
5. Once the workbook has been completed, write a five to ten (5-10) page double
spaced Executive Summary of your plan. Identify your audience. What type of
person are you intending to satisfy with this plan? The summary should briefly and
concisely address all the major issues that are important to this person(s). Write one
to two paragraphs that summarize each of the important sections. Do not
underestimate the importance of the Executive Summary! Keep in mind that
this will probably be the first item read by your professor and first impressions
are critical in successfully communicating a plan.
6. Prepare a Powerpoint presentation of your plan based on your executive
summary and any other information that you determine will be relevant to your
presentation audience. As a general rule, a Powerpoint presentation should be
concise, visually appealing, and contain information that compliments the speaker’s
delivery. Graphics, charts, embedded video, and secondary data that support the
speaker’s points are usually very helpful supplements to a presentation.
7. Organize and package your plan, executive summary, and a print out of your
presentation in an appropriate way to give it the most professional appearance.
Packaging is a critical component to marketing any product, including your
marketing plan. Attractive, eye appealing packaging, will make the reader more
interested in the content of your plan.
8. IMPORTANT!! THE FINAL PLAN PACKAGE YOU HAND IN SHOULD
INCLUDE THE FOLLOWING:
a. Title Page
b. Table of Contents
c. Executive Summary
d. A copy of your completed Export Marketing Plan Workbook.
e. A copy of your PowerPoint Presentation.
f. A bibliography/list of sources.
g. Any appendices that your group believes are relevant.
Slide 1

Slide 2

Ex
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• Once ca
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Slide 5

Social In
Slide 6

• Busines
persona
• Often h
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Slide 7

Slide 8

Strengths
High Quality/Dur
Affordability
Sleek/Innovative
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Slide 9

Com
Slide 10

• Lack of b
• Large,Pro
we
• Competit
• 10 year li
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Slide 11

Slide 12
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Co
• Include: L
schedules
• (Written
Include: i
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Slide 13

Pr
Slide 14

Gross Sales/Turnover

Units Sold

Sale Price/Unit

Total Sales
• UAE is a 60
CREATIVE BRIEF
TOP BODY FITNESS EQUIPMENT
United Arab Emirates Export Plan
November 17, 2009

Background
Ex: Provide the creative team with brief, relevant history of the company, product or program
– sufficient for anyone who knows nothing about it to get up to speed fast.

Top Body has been operating in the U.S. for five years and is known to sell the best
commercial fitness equipment. TFE sells a variety of high quality and affordable fitness equipment.
They also keep up with technology and can provide your company with the equipment that is best for
your end users.

Communications Objectives
Ex: State communications objectives such as reach X% of target market, increase
awareness, reposition, promote new feature, weaken competitor assault, etc).

We will utilize trade shows, trade publications and personal selling to increase awareness of
our product in the Middle East by 30%. We will also seek to develop a brand position of high quality
products and service with affordable prices. We will promote our sleek, innovative product designs
as cutting edge technology in order to attract and retain business in the luxury hospitality industry..

Tactical Objectives
Ex: The tactical objective is to (state hard business objective, eg increase sales by X%,
increase margin by X%, increase price tolerance, etc.).

We plan to target and acquire 3% of the fitness equipment market share in the UAE. By year
two, we expect to see sales reaching $2.35M or 5% of our target market. In year three, our goal is to
increase total export sales by 20%.

Proposed Media:
Ex: Television, Radio, Internet, Point of Purchase, Billboard, and/or Integrated
Communications along with an expected % breakdown between multiple media (if
necessary)

Initially, we need to place a strong emphasis on building awareness and desire. In order to do
so, we have set our promotional budget as follows: Direct Selling 30%, Sales Promotions 10%, Print
Advertisement: 20% (Trade publications), Channel Distribution Incentives 5%,Trade shows and
Exhibition 25% and Internet/Electronic 10%. 61
62
Corporate Facts
Ex: (Client name) was founded in (year) to (mission). (Client)’s office(s) is (are) at
(addresses, cities), where the company’s administrative infrastructure is located. The
company has a staff of about X people. More information can be found at (client website
URL)

Top Body was founded in 2004 to provide the commercial fitness market with a variety of
high quality and affordable fitness equipment. TBFE is located at 251 Fitness Road in Lafayette, LA.
The company has 70 employees, who all strive to provide the fitness market with the best possible
equipment. More information about TBFE can be found on the World Wide Web at www.tbfe.com.

Product and Service Facts and Benefits


Ex: Describe key products and services with benefits stated in customer terms.

Top Body manufactures and markets high quality commercial fitness equipment at an
affordable value. We offer a wide selection of strength training machines to health and fitness
centers nationwide. We strive to be the premier commercial supplier of state-of-the-art machinery,
and we focus on providing excellent customer service.

Company Structure
If needed to help clarify how the creative team should talk about the company, provide the
structure simply here (only as it is relevant to marketing or communications efforts).

Top Body Fitness Equipment is a thriving organization that sets the bar for innovative fitness design
and quality.

63
Customer Profile
(Provide demographic and psychographic profile of decision makers in the buying process.
Profile the type of company they work for, their job titles, and what they worry about (their
pain). Show how the buying process works.)

Demographics Phychographics
Employment status: hotel general managers/owners Values: customers happiness, hotels success, jobs, health
Age: 40-60 Interest: sports activites, modern technology
Gender: no preference Personality: professional, decisive or strong-minded
Race: 50% South Asians, 19%
Emiris, 23% other Arabs and Iranians
Income: $70,000 plus (per year)
Location: UAE

Company they work for


Industry: Hotel and resorts
Employees: 500-800 on average
Location: UAE
Hotel status: 4-5 star resorts

Awareness Levels
Ex: About XX% of customers are aware of (Client name), so we must presume zero
awareness in the marketplace. (It is important for the creative team to know how much
foundation work is needed to build recognition of the company, the products, and the
benefits in the client’s mind)
Since we are only operating in the United States right now, about 10% of the market in UAE is aware
of TBFE. We must try to increase our awareness level dramatically. It will take some time but we
have the will power to do so.

Competitive Overview
(Provide quick snapshot of industry, Gorillas or key players, and where the company fits into
the competitive space. State advantages and disadvantages for each competitor if possible,
and define the single “enemy” that will be the target for displacement with this
product/service)

Our key players are going to be our hotel owners and managers as well as our fitness/health club
owners and managers. Our competitors are going to be other commercial fitness sellers. Some of
these businesses will have an advantage on us simply because they already operate in UAE.

Corporate Positioning

64
Ex: Describe the corporate umbrella/brand positioning – the key elements of the brand
image to be communicated.)

We want our brand to be known as high quality products for an affordable price. We also want our
customers to know that we have a variety of equipment to fit the needs of their gym.

TBFE- helping your customers stay fit

CRITICAL SECTION!

Creative Focus
Ex: (put #1 and #2 top arguments for sale into one single line the creative team can use as a
bullseye to aim for)
Our product offers the newest technology, delivering the fastest results for an affordable price.
While we might not be the cheapest in the market, our quality is high.

Supporting statements
Ex: provide support for the claim in the Creative Focus – as many as you can. The creative
team will use these as the “meat” to flesh out selling arguments

The quality of our product line is obvious in its durability, ease of maintenance and excellent
customer service.

Tone and Manner


(use adjectives to help the creative team build the right tone – should support the brand and
the competitive advantages, eg. upscale, energetic, high performance

- delivers faster results


- cutting edge technology
- high quality
- affordable price

Mandatories
Ex: Corporate logo use and positioning in relation to product brand logo and positioning,
Website URL, Canadian/US/other spellings, Cultural references/non-references, other…

65
OurO==

We want our customers to associate TFE with helping your customers stay fit.

BIBLIOGRAPHY

AMEinfo.com - Middle East business and financial news, directory and current events. Web.

<http://www.ameinfo.com>.

American Business Council. Web. <http://www.abcdubai.com>.

Cateora, Philip R., Mary C. Gilly, and John L. Graham. International Marketing. 14th ed.

New York: McGraw-Hill Irwin, 2009. Print.

Dwyer, F. Robert, and John F. Tanner, Jr. Business Marketing: Connecting Strategy,

Relationships, and Learning. 4th ed. New York: McGraw-Hill Irwin, 2009. Print.

IHRSA - International Health, Racquet & Sports Club Association. Web.

<http://cms.ihrsa.org>.

Industry Canada. Web. <http://strategis.ic.ge.ca>.

UAE News and information - UAEinteract. Web. <http://www.uaeinteract.com>.

U.S. Commercial Service - Your Global Business Partner. Web. <http://www.buyusa.gov>.

U.S. Country Commercial Guide. Web. <http://www.export.gov>.

Wikipedia. Web. <http://www.wikipedia.com>.

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