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Written Analysis of Case (WAC)

Aura:
Designing Strategy and Status in Saudi Arabia

Submitted by:
Gutierrez, Maeverinn Lyel
Espiritu, Christian R.
Evangelista, Joimie
Macapangal, Cindy C.
Ratilla, Johann Margaret A.

Submitted to:
Mr. Francis H. Arroyo

Date:
December 05, 2016 (Monday)
STATEMENT OF THE PROBLEM
Should Abdullah target the mid-market customers or should he stay with the
high-end customers?
OBJECTIVES
To be able to come up with a better decision as to whom their focus be when
it comes to their target market.
SWOT ANALYSIS

Strengths Weaknesses
1.)They offer new products 1.) Aura has few resources to cater
frequently. both high-end and mid-market
2.)Brand name, Aura. customers.
3.)Marketing Tactics 2.) Aura failed to anticipate the right
4.)Quality products at value price. target market.
5.)Products are a different mix to 3.) Aura is uncertain of their target
what is available in the market market.
and very fashion forward. 4.) Pursuing both markets would
6.)Speed to market- offering new take significant resources and
products frequently concept. might cause confusion in the
market.
Opportunities Threats
1.)Aura was founded with the 1.) The Saudi retail industry is not
intention of targeting the large yet really developed
mid-market of Saudi Arabia, thus, 2.) Competitors; IKEA and Wal-Mart
having products that are who focused on economies of
affordable. scale for low prices as their edge.
2.)The company had gotten a lot of 3.) Pursuing both high-end and mid-
positive press in high-end media market customers will cause
outlets. confusion in the market.
3.)Aura was able to attract wealthy
customers into its store.
4.)Aura had strong conversion
rates.

ALTERNATIVE COURSES OF ACTIONS


Alternative 1
Start focusing on mid-market customers
Alternative 2
Stay with high-end customers
Alternative 3
Target both high-end and mid-market customers
RECOMMENDATIONS

Solutions for Alt. 2

Continue with catering the high-end customer with its yearly changing
products and slowly increase the prices in each product.
Increase the usage of media outlets including magazines and B2B
opportunities emphasizing the brand name.
Reasons why stay:
A.) Abandoning the higher-end customers could mean losing sales
B.) Saudi Arabians were known to splurge on luxury items.
C.) Young and affluent consumers prefer to spend on premium clothing and
accessories, they have high brand inclinations, and they aspire to emulate
Western lifestyles.
ACTION PLAN

Activity Description Person Budget Timeframe


Assigned