Al Qassim Company:

This SWOT analysis for Al Qasim can provide a competitive advantage.

Strengths
-high growth rate
-reduced labor costs
-high profitability and revenue
-monetary assistance provided
-existing distribution and sales networks
Weaknesses
-future debt rating
-brand portfolio
-small business units
-cost structure
-high loan rates are possible
Opportunities
-new markets
-growing demand
-new products and services
-growing economy
-venture capital
Threats
-price changes
-financial capacity
-New Competitors

NOVA
Strenth:
Customer Loyalty: When given a choice, customers are loyal to Nova.
Instead of targeting all customers, Nova only needs to target new
customers in order to grow their business
Brand name: A strong brand name is a major strength of Nova. This
gives Nova the ability to charge higher prices for their products
because consumers place additional value in the brand
Weaknesses:
Online Presence: The online market is essential for displaying
information and selling products. A weak online presence can result in
lost opportunities for Nova

High Debt Burden: A high debt burden increases the risk

that Nova goes bankrupt if they make a poor business decision.
Increasing risks can increase Novas debt interest payments
Opportunities:
New Service: New services help Nova to better meet their customers
needs. These services can expand Novas business and diversify their
customer base

Innovation: New services help Nova to better meet their customers

needs. These services can expand Novas business and diversify their
customer base

Threats:
Bad economy: A bad economy can hurt Novas business by decreasing
the number of potential customers
Substitute goods: The availability of substitute products hurts Novas
ability to raise prices, because customers can easily switch to another
product or service
PEST Analysis:
Political: There is no tax imposed by the government. But the
government imposed a new low called Saudization to protect the Saudi
nationals from employment in the private sector, because most of the
private sector filled with foreign. The Saudi Ministry of Labor introduced
a program called Nitaqat. The program aimed at reducing
unemployment among Saudis.
Economical: The economy of Saudi Arabia is growing and the income of
the people increased. Thats created an important market for alqassim
company, but its starts to attract new competitors.
Social: No one can live without water. Everyone needs water so they
can survive. Population increased so the demand for water increased,
and they need clean water to became healthy and in a good shape.

Our main objective is to serve our customer with best way possible by
making our water clean.
Technological: Water consumption rates increased considerably as a
result of population increase. The higher living standards witch
changed domestic consumption patterns and helped improving health
care conditions, special growth of cities, and increased production and
water related various sectors of the economy during the last two
decades. The kingdoms water consumption increased by five-folds. The
agricultural sectors increased share in water consumption quite
conscious. Development endeavors sought to develop and conserve
water recourses, include both renewable and non-renewable resources.
Efforts were also pursued to implement large scale of sea water
desalination projects.

TRENDS
The rising population of Saudi Arabia is driving retail expansion in the
country. New neighborhoods are being created to cater for the
growing population, which is resulting in the growth not only of
hypermarkets and supermarkets, but also independent small grocers.
During 2013 Carrefour opened another branch in the city of Jeddah in
a densely populated location. On the other hand Savola Groups
Panda launched its own convenience store format in 2013, and
continued to expand, with 23 new stores in the country. This
explosive growth in retail infrastructure contributed to the continued
growth of bottled water.

Product Strategy Our new water flavor product will contain a lot of
kind of flavor, so the consumer can choose what they like. Its A
Combination of good and tasty water.
Price Strategy The price strategy is to lower the price as costs fall,
and then stabilize price if demand is strong.

Distribution Strategy Choose the best distribution system, make

sure physical distribution system is efficient so our product will be
available to every store, and provides home delivery to consumers.
Promotion Strategy - Lower promotion costs as sales increase. Make
packages with lower prices or buy 1 get 1 for free offers.

Objectives and goals:

Goal: is to make our brand popular and available in every markets and
homes.

Objective: We have set achievable objectives for the first 3 years

of marketing entry.
First year objectives:
During the water flavor initial year on the market, our objectives is
to sale 250,000 unit.
Second year objectives:
Our second year objectives are to increase the sales; our target is
to sell 500,000 units.

Third year objective:

In the third year we want to achieve a breakeven point and make
our brand popular.
Strategy Statement: advertisement and giving free samples will
help us to promote our new products, and thats can help us to
achieve our objectives.

(Source: Okaz Online Newspaper)

http://www.okaz.com.sa/new/Issues/20110108/Con20110108393374.htm

Market segmentation: we divided the market based on the

demographic factors. Water is important to everyone, so its difficult to

choose only one segment to serve and because everyone needs to

drink water.
Target marketing: Because water is important for everyone we had
to target all the market.

Demographic Segmentation of saudi arabia

55-64; 5% 65 & above; 3%

0-14 years; 28%

25-54; 45%
15-24 years; 19%

(Source: US Central Intelligence Agency)

http://www.indexmundi.com/saudi_arabia/demographics_profile.html

https://www.cia.gov/library/publications/the-world-factbook/geos/sa.html