Marketing Communications Plan
LAUNCH OF THE DESERT DOME IN SAUDI ARABIA
Prepared by:
Benny Yip
(Course)
(Name of Tutor/Professor)
(Date of Submission)
Table of Contents
Page
Title Page 1
Table of Contents 2
I. Executive Summary 3
II. The Challenge 3
III. Situational Analysis 5
A. Climate (External Environment) 5
Political Factors Affecting the Implementation of the Project 6
Economic Factors Affecting the Implementation of the Project 7
Socio-Cultural Factors Affecting the Implementation of the Project 8
Technological Factors Affecting the Implementation of the Project 9
Environmental Factors Affecting the Implementation of the Project 9
Legal Factors Affecting the Implementation of the Project 10
B. Market (Internal Environment) 10
Company Analysis 10
Customer Analysis 11
Competitor Analysis 13
Collaborators 14
IV. Marketing Communications Objectives 14
V. Marketing Communications Plan 15
A. Branding 15
B. Target Markets 16
C. Creative Strategy 19
D. Tactics
E. Media Strategy 21
F. Cost/Budget 23
VI. Conclusion/Recommendation 24
References 26
I. Executive Summary
This marketing communications plan is developed for the implementation of the Desert Dome project in Saudi Arabia. The plan covers a description of the project; external and internal environment analysis; marketing communications objectives; branding, media and creative strategies; costing or the proposed budget for the project; and an assessment of the success of the project. Overall, the goals for this marketing communications plan include: 1) acquisition of information on the environmental climate and marketing conditions of Saudi Arabia; 2) development of a marketing communications plan to support the launch of the project; and 3) prepare viable advertising, promotional and other marketing communications tools appropriate to the target market.
II. The Challenge
This marketing communication proposal supports the launch of a desert water dome in Saudi Arabia. The desert water dome serves as a solution to the arid lands in Saudi Arabia and communities experiencing scarcity in water supply. Saudi Arabia deserts would benefit from the desert water dome. The desert water dome comprise a tourist spot located in the desert that provides an environment with ample supply of both sea and fresh water and a consistently good weather environment where people can enjoy the environment without experiencing the harmful effects of ultraviolet exposure outside. However, marketing the concept to consumers involves a careful consideration of the rate of success based on the characteristics of the target market.
For a number of decades now, large amounts of money have been invested across the globe to re-engineer deserts and other semi-arid places to transform these lands into habitable environments. Making deserts habitable involves the use of advanced technology. The science of transforming natural environments through technology is termed as terraforming. Humans have been engaged in terraforming for centuries now as environments are transformed according to the needs of humans. This implies that although, terraforming is an artificial activity, it is not something that people will repel because it has been a continuing human activity since the establishment of the earliest civilizations. The idea of terraforming deserts to create a water dome is expected to be generally acceptable to most customers. The success of the desert water dome would encourage innovations for the transformation of other hostile environments. The technology could even extend to inhabited areas due to the expected effects of global warming. (2004)
The desert water dome works through the application of the concept of biospherics. A biospheric refers to a self-contained system using chemistry and biology as tools and requiring the importation of solar energy. The desert dome does not seek to create a completely contained system such as what are envisioned for other planets. The dome is intended to enclose a small place and make a more livable environment for humans and other living things. The desert dome would have an open bottom so that the ground will be the dessert itself and water will be produced through the integration of hydrogen fuels inside the dome. (2004)
The dome itself is made up of carbon nano tube fibers containing nano computers inside the tubes. A computer program controls the size of the dome. The primary function of the nano computer system would be to monitor information on the condition of the enclosed environment such as temperature, humidity and other measures. The exterior of the dome serves as a solar cell and blocks ultraviolet radiation. The controlled environment provides a comfortable and healthy environment for its visitors. (2004)
III. Situational Analysis
The situational analysis looks into the specific context of the country and the market chosen for the launching of the desert dome. External environment covers the political, economic, socio-cultural, technological, environmental and legal characteristics of Saudi Arabia while internal environment refers to the characteristics of the market and competition in the business locality of the project.
Saudi Arabia is supported by an oil-based economy administered with strong government controls maintained over majority of the economic activities. The country has control over a quarter of world petroleum reserves making it an influential country in an oil-driven global economy. Saudi Arabia is also the largest petroleum exporter enabling the country to develop trade relations with many countries and play a lead role in the Organization of Petroleum Exporting Countries (OPEC).
A. Climate (External Environment)
Political Factors Affecting the Implementation of the Project
Saudi Arabia has established its monarchy as the central governing institution. This came about in the early 1990s, when the basic law declared that the country is to be ruled by a monarchy comprised of the male descendants of King . Apart from this, the Qur’an comprises the fundamental law of the country applied through the Shari’a. Due to this declaration, there is neither an election nor political parties in the country, except only in the municipal level in 2005. Although the king is ensured of leadership, he is accorded the responsibility to administer the affairs of the state in compliance with Islamic law and to maintain the consensus among the members of the royal family as well as the religious leaders. Legislations are made through the Council of Ministers together with the Shura Council subject to the ratification by royal decree and necessarily consistent with Shari’a. The justice system is run by religious courts whose judges are appointed by royal decree. Law ensures that the religious courts operate independently to ensure justice. With the enactment by the king of several decrees clearing the issue of royal succession, the political system of the country in the next decades is more or less established and stable. (2002)
The political environment in Saudi Arabia creates an environment conducive to the entry of investments. The country has also maintained a good relationship with other Muslim countries as well as the Western nations, making the country free from either inter or intra state political and military conflicts. The existence of political stability in the country offers minimal investments risks for people interested in introducing new products or services to the country. If Islamic law has been complied, political factors should not be an impediment for the introduction of the desert water dome in Saudi Arabia.
Economic Factors Affecting the Implementation of the Project
Saudi Arabia has developed into an economically thriving country since the discovery of oil in its territory in the 1930s. The oil resource of the country has propelled the growth of its industries and international trade especially in the 1960s and 1970s. Oil is attributed to 90 percent of exports and 75 percent of state revenue. After several decades, the country still boasts of more or less 260 billion barrels in reserves. At present, the country generates a GDP of 1 billion, a GDP per capita of ,870 and annual GDP growth of 1.2 percent. ( 2005)
Although oil prices in the world market is influenced by shifts in international relations, the economic performance of the country still places it as a strong state in the region and even in relation to western countries. This means that the economy of Saudi Arabia can support various economic activities, especially one as technologically complex as the desert water dome. The country can also offer potential consumers or visitors with the capacity to pay for access to the dome. Apart from these, Saudi Arabia is perceived as a country with a high degree of cultural tolerance so that placing the dome in Saudi Arabia would attract both domestic and international tourists.
Socio-Cultural Factors Affecting the Implementation of the Project
Although Saudi Arabia is a Muslim country, it is also culturally diverse. This is because the country has welcomed workers from different countries to support its economic activities especially during the time that it is gaining economic momentum in its industries. Different people of various socio-cultural backgrounds have been integrated into the labor pool of the country. This means that the country has a high tolerance for other cultures although it expects strict respect for Islamic beliefs and practices. Social norms in Saudi Arabia are based on the literal interpretations of Islamic texts and compliance is expressed in the way that Saudi Arabians dress and socialize. This means that for the dome to become acceptable in Saudi Arabia, the arrangement should comply with Islamic beliefs and practices. Thus, since the dome is expected to cater to domestic and international tourists, areas may be designated to segregate men and women in respect of Muslim practices but there would also be areas for international tourists to mingle. ( 2005)
Saudi Arabia has clusters of communities thriving in the deserts. Part of sustainable development involves the construction and operations of the dome with the least interference with the cultural life of these communities. Concern for the well-being of the desert-dwelling communities would encourage the cooperation of the local community in building the dome and in exercising certain levels of tolerance for the arrival of foreign tourists. ( 2005)
Technological Factors Affecting the Implementation of the Project
Oil extraction and processing involves technological capabilities so that Saudi Arabia has acquired the necessary technology to support its primary industry ( 2002). This implies two things in terms of the viability of the dome. One is the existence of a certain level of technology in country and the other is the high propensity of the country to accept the entry of new technology even as futuristic as terraformation.
Environmental Factors Affecting the Implementation of the Project
Saudi Arabia has a dry and hot climate since its territory comprise of deserts, which are mostly uninhabited. Few living things are able to survive in the uninhabited areas. Its deserts have an annual precipitation amounting to only 100 millimeters on the average. Only 2 percent of its total land area can support cultivation so that the country is also dependent upon imports to meet the needs of the people. (2005) Uninhabited deserts and water scarcity makes the country a viable candidate for the water dome, which would introduce water-producing technology to the country as well as provide investment opportunities for its business sponsors.
Legal Factors Affecting the Implementation of the Project
Saudi Arabia adheres to international business law (2005) so there should be no legal impediments in addressing the legal requirements of developing the desert water dome, except that there should be basic compliance with the applicable domestic laws of the country.
B. Market (Internal Environment)
Company Analysis
Developing the desert dome entails the cooperation of private and public entities. Private entities comprise of individual or corporate investors willing to fund the project and provide expertise in the different technical areas involved in the accomplishment of the task. These entities are engineers, architects, scientists, individual investors, sponsorship companies, and other people showing interest in launching the desert dome. Public entities refer to various government agencies with interest in the accomplishment of the project and willing to invest in both financial and technical aspects. Public entities may be the department of tourism and government owned and controlled corporations recognizing the construction of the desert dome as an opportunity for the investment of public revenue. Thus, the organization behind the construction of the desert dome is a conglomeration of various individuals and groups making monetary and technical expertise investments to the different areas of the project.
Since the organization, sponsoring the project is established especially for this purpose and the project is the first of its kind in the project location, there is no information in terms of the recorded market share of the organization. The organization is characterized by the culture of innovation since the construction of the dome is a pioneering task involving risks that is tempered only by the reliance of the various parties on their knowledge and skills in the different aspects of the project. This also comprises the strength of the organization. The organization’s weakness involves the difficulty in tying various interests, which if not property handled may adversely affect the completion of the desert dome.
Customer Analysis
The desert dome would tap into the tourism market. Tourism is the largest industry in the world both as service and employment provider (1987; 1995; 1996). This implies that there is a huge potential market for the dome comprised of domestic and international tourists. Domestic tourists are locals looking for alternative sites for rest and recreation especially during the summer when the weather is extremely hot. The desert dome providing an alternative environment where there is fresh water and lush vegetation would capture the interest of local communities. International tourists are people from different countries interested to try new concepts for rest and recreation.
A wonderful thing about the desert dome is the concept’s ability to draw the attention of different market segments. In the case of domestic tourists, the only distinguishing factor for market segmentation is income. However, other factors such as age, gender and cultural background are not significant distinctions. With regard to international tourists, income would also be the most important factor affecting the development of a market for the desert dome. In relation to other ways of segmenting the market, there is almost no other significant segment since the desert dome caters to various market segments. The desert dome would attract different kinds of people from scientific and engineering marvel enthusiasts to people searching for alternative types of rest and recreation. Thus, the dome is able to provide various facets of value, to different kinds of people, which strongly influences the decision to visit the desert dome.
Competitor Analysis
As an innovative concept, the desert dome cannot be directly compared to other tourism activities in order to determine its relative position in the market. There is still no generic term coined for this type of tourism service. As a pioneer in this type of tourism activity the organization launching the desert dome holds control over the development of its own market, the stable positioning of the company in anticipation of direct competitors, and the process of price setting and adjustments. This makes up the aggregate strength of the desert dome project, its ability to provide control over market factors and marketing practices. However, the organization should be weary of the possible downside of sponsoring an innovative activity, which are over or under shooting the price the market is willing to pay for the value expected to be derived from the desert dome and the lack of continuity in service enhancements due to the lack of competitors.
Collaborators
The completion of the desert dome depends upon the collaboration of several parties and marketing of the tourism activity involves several contributing individuals and groups. Marketing the desert dome is a joint venture between the government of Saudi Arabia and the organization that developed the project. This is because despite the private nature of the project, the state of Saudi Arabia remains to be the host of the tourism activity. Apart from the role of the Saudi government in promoting the desert dome, the organization also requires companies to invest in marketing the product through sponsorship. In this way, the organization is able to market the desert dome through product and service advertisements and promotions of sponsor companies in the same way that that its partner companies are able to market their products.
IV. Marketing Communication Objectives
Overall, the goals for this marketing communications plan include: 1) acquisition of information on the environmental climate and marketing conditions of Saudi Arabia; 2) development of a marketing communications plan to support the launch of the project; and 3) prepare viable advertising, promotional and other marketing communications tools appropriate to the target market.
Consequently, the marketing communications plan follows guidelines based on theories and best practices. The intended message is directly connected and relevant to the objective of influencing customers to purchase the product or engage the service. The marketing communications message introduces the benefits of the product or service, the manner that the product effectively solves problems or creates opportunities and the factor differentiating the desert dome from other tourism activities. This information is clearly expressed, straight to the point, and high-impact. (1965; 2004)
Several tools for persuasion exist in marketing communications. The tools used should be appropriate to the message and the target market. There are five main areas of persuasive tools: 1) public relations; 2) direct marketing; 3) promotions; 4) packaging and 5) advertising. The task of the marketer is to effectively communicate the essence of the company, brand, product or service being marketed. Essence that will be communicated refers to that deemed most important to the target audience. ( 1999; 1999)
V. Marketing Communication Plan
To justify the launch of the desert dome in Saudi Arabia, the marketing communications plan covers the entire gamut of strategies and activities to ensure the achievement of the sales and market penetration goals defined for the project. These strategies involves branding, the determination of target markets, creative strategy, tactics, media strategy as well as cost determination or budgeting comprising interrelated factors. There are, however, factors that affect the formulation of a marketing plan that needs to be taken into consideration before launching into a company-wide facilitation of the said plan. According to , they are the following: (1) message impact and credibility; (2) cost of using databases; (3) client expertise and knowledge of market goods and services; (4) mergers and acquisitions of marketing communication agencies; (5) mass media costs; (6) media fragmentation; (7) audience fragmentation; (8) the number of existing “me-too” products in the market; (9) power of the retailer; (10) global marketing and; (11) pressure on bottom lines (1996). Such factors were regarded highly before devising the full plan stated below.
A. Branding
The Desert Dome is to be established as one of its kind, comprising an alternative tourism site and activity for customers worldwide. As an alternative tourism destination, branding strategy revolves around the manner that marketing managers are able to set the project apart from other tourist sites and introduce the Desert Dome as an innovative project. Of the different forms of tourism, adventure and ecotourism are nearest to the Desert Dome in terms of characteristics. In relation to adventure tourism, the Desert Dome offers adventure because it introduces an experience that people has not experienced before. However, it offers a different kind of adventure because it utilizes high levels of technology to recreate an environment that is impossible to exist in the desert. With regard to ecotourism, the Desert Dome is similar to environmental activities because there is enjoyment of natural surroundings. However, the Desert Dome is different since it constitutes a simulation of a natural ecosystem. Thus, the Desert Dome offers a unique tourism experience that at the least equates the value expectations of customers for the money paid towards the experience. This branding strategy of differentiation from the typical tourist spots has been viewed by the marketing managers as a surefire strategy of perking up the interest of the potential market, and given the facilities within the Desert Dome, is bound to keep them coming back for more adventure and ecotour.
In terms of the development of the brand name and enhancement of brand equity, the brand name will be The Desert Dome to indicate that it is one of its kind or that it is the only desert dome in the world. Brand equity is enhanced through the aggregate of marketing communications mix highlighting the uniqueness of The Desert Dome and the sharing of actual experiences among networked people.
B. Target Markets
The Desert Dome will cater to customers worldwide, and such, is expected to be a profitable project due to the number of potential customers that the endeavor is expected to draw relative to a successful marketing communications campaign. Since the project is expected to be completed before the start of 2008, the initial number of customers is pegged at a minimum of 10 million for 2008 translating to a little less than 30,000 visitors in a single day. As the popularity of The Desert Dome picks up the number of both domestic and foreign visitors is expected to increase to 12 million in 2009, 15 million in 2010, and 19 million in 2011. By 2012, it is expected that the expected market for the dome will stabilize at 25 million for the succeeding years. [See Figure 1 Below]
Figure 1: Estimated 5-Year Increase in The Desert Dome Market
The expected aggregate market for The Desert Dome for these years will already ensure the organization of returns on their investment. Based on the five year expected revenue generating capability of the dome [See Figure 2 Below], the initial revenue for 2008 is 25 billion dollars followed by 30 billion revenue in 2009, 37.5 billion revenue in 2010, and 47.5 billion in 2011. At its peak in 2012, operating the dome would bring in 62.5 billion. Although, earnings or returns on investment are staggered, all expenses would be earned in three years.
Figure 2: Revenue Generation within 5 Years
Market segmentation for The Desert Dome is comprised of two interrelated groupings, first in terms of location [See Figure 3 Below] and second in terms of income [See Figure 4 Below]. In relation to market location, dome customers are comprised of international and domestic customers. Initially, there are more domestic than international customers because of the former’s proximity to the dome and the lesser cost incurred in visiting the dome. However, in the next five years there will be an expected increase in the number of international tourists due to the spread of the popularity of the dome around the world, mostly through the aide of an effective marketing communication plan and through the meeting of the expectations of the customers. This will go on until such time that half-and-half of total market is made up of international and domestic customers respectively. Moreover, this is viewed with Figure 1 since even if there are equal percentages of domestic and international visitors, the total number of customers doubled resulting to significant increases in both the number of domestic and international tourists. In relation to income segmentation, initial customers are expected to be people belonging to the high-income groups since this segment does not need to adjust to the additional cost that the dome experience would have on their tourism budget.
Figure 3: Market Segmentation by Location Figure 4: Market Segmentation by Income
C. Creative Strategy
The creative strategy for marketing the Desert Dome involves the development of a marketing message covering possible customer demands of customers belonging to the targeted market segments. In relation to the domestic market, the marketing message would be to provide a water and vegetation abundant atmosphere for rest and recreation accessible to them without leaving the desert to go to other countries or to the summer destinations in the country. Since most tourists have to go through the trouble of packing up and going out of the country just to experience such an atmosphere, the company developed a strategy that would impress on the proximity of the place to the customer’s origin and would therefore provide an edge over the other adventure and ecotourism spots abroad. In relation to foreign tourists, the marketing message for encouraging visits to The Desert Dome is the offer of a unique experience that they can only experience in Saudi Arabia through The Desert Dome. The exclusivity of the dome would encourage international customers to try this once in a lifetime experience. The uniqueness of the experience that the Desert Dome promises to extend will also be one of the main pulling forces for attracting customers from outside the country.
In relation to income segmentation, the marketing message to the high- income group is the opportunity to show their extent of wealth through a technologically advanced project. The Desert Dome is an advanced project with important ramifications for the future particularly since the world is experiencing incessant global warming. Those belonging to the high-income groups hold great interest in the dome not only as an opportunity for future investment but also for their personal protection and security. This means that people belonging to the high-income groups would be interested in not only rest and recreation but likewise in the technology behind the dome. In the case of middle-income groups, the marketing message would be the offer of a unique rest and recreation ecosystem in the desert. For this market segment, The Desert Dome constitutes an alternative tourist destination because of the unique experience it offers to customers together with the marketing message of having a unique rest and recreation experience valued at par with the price paid by customers.
The various market segments targeted by The Desert Dome means that the company has to maximize all marketing communication tools available to deliver these marketing communications messages to the desired target market through the appropriate tools. And because of the very diverse market that the Desert Dome is targeting, extra care should be given in utilizing these tools to effectively communicate the appropriate and desired messages to them.
D. Tactics
Marketing the dome involves the implementation of the complex process of communicating messages to target market segments. The process involves various elements, which are 1) sender; 2) message; 3) receivers; 4) medium or channel; and 5) feedback particularly applicable to two-way communications (2004). Since this is a general process, marketing communications for the launch of the dome should be specifically developed for the marketing context of the project. Key to the success of the communications plan is having control over the parties in the communications process, the information sent to and from the parties, and the channels of communication in order to achieve predetermined objectives.
The marketing communications objectives set for the medium term communications plan are 1) to achieve initial customer number for the first year of 10 million to increase within five years to 25 million visitors; 2) to achieve initial revenue of 25 billion and hike up to 62.5 billion during the fifth year; and 3) to achieve return of investment within the first five years of operation.
Apart from being guided by the objectives, the marketing should also be developed through the four-phase model. This model covers the initial phase of exploration and pre-setup followed by actual startup and then by consolidation to be concluded by maintenance or expansion (2006). The application of the model means that the marketing communications plan should again be based on the context of the objectives of the project and the plan involves a trial period to determine what works.
E. Media Strategy
Contemporary marketing communications mix is made up of advertising, sales promotions, publicity, direct marketing, cyber marketing and personal selling. These different tools work best for different kinds of market segments. As long as at least a single tool is utilized in the plan, there is an ensured market. However, to optimize the achievement of the objectives of the project, all these tools will be utilized. Although, all these may work for different market segments, cyber marketing, advertising, promotions and publicity are most effective for international tourists while advertising, personal selling, and direct marketing are most effective for domestic tourists. In relation to income segmentation, advertising, promotions and publicity attract those of the higher income groups while advertising, promotions and cyber marketing are top three of the most effective tools for middle-income groups. These are the tools identified and matched to the different target market segments because these are communications tools that are most accessible to them.
Table 1: The Desert Dome Media Strategy
Marketing Communications Mix
Actual Marketing Communications Activities
Advertising
Print, Television, Radio, Internet
Sales Promotions
Brochures, Papers, Studies, Trade Shows
Publicity
Interviews & Television/Radio Guestings
Cyber Marketing
E-mails, Website Maintenance, Online Advertisements
Direct Marketing
Customer Services or Call Center Services
Personal Selling
Passage of Positive Feedback over the Experience by Word-of-Mouth and other personal networking tools
Table 1 above shows the particular marketing communications activities to be implemented to launch the project. All these channels of communication are either directly or indirectly controllable by the marketing management team that increases the chances of actualizing these activities.
F. Cost/Budget
The budget for all the marketing communications tools to be utilized to launch the dome totals 1,000 or less than one million dollars [See Figure 5 Below]. This amount already covers all the tools. Advertising accounts for the biggest cost to be incurred in launching the project. This is because advertising is the most costly but the most far-reaching in terms of market reach. This is followed by electronic marketing, sales promotions and direct marketing. Personal Selling accounts for a negligible cost because the company only spends for customer satisfaction evaluations to determine the level of satisfaction that customers have in The Desert Dome experience. Apart from the initial cost, the venture would also allot 0,000 annually to maintain the marketing communications tools.
Figure 5: Cost for Marketing Communications Mix
Since these costs would accrue to the company in launching the dome, these expenses will form part of the financial reports of the company for the first year or 2008. To determine the feasibility of the budget set for the marketing communications plan, expenses should be compared with expected revenue generation capabilities of the project. Figure 6 below shows that in comparing expected revenue generation of the dome, expenses are easily offset by revenue generation.
Table 6: Comparison of Marketing Communications Cost and Expenses
This shows that the marketing communications budget allocation to launch The Desert Dome is both economically reasonable and feasible when the amounts are compared to the revenue generating capacity of the project.
VI. Conclusions/Recommendations
The Desert Dome is an innovative concept with great potential for actualization. As a project, the dome is offers a water and vegetation based ecosystem typically not seen in the Saudi Arabian desert. As such, it offers a unique experience to tourists, which is distinguishable with other forms of tourism. In relation to the feasibility of the marketing communications plan, the various valuation projections show that the plan is viable and efficient in achieving the objectives set for the project.
Since the actualization of the marketing communications plan is medium term, there are several activities to be accomplished in the exploration and pre-setup phase of the plan, which the marketing managers should be commencing as early as now.
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