Conclusion

This is the concluding post to our blog, as our research is now done. Research results and feedback are summarized in this post. Additionally, some issues were ignored during our research for the sake of this course exercise. These issues are discussed in the last section.

Why did we choose Qatar?

1.      Demand: Large derived demand for high quality litter bins, geographically concentrated. Stadiums, an airport, museums and many sorts of infrastructure projects are planned.

2.      Past experience: Company X has supplied the Dubai metro with XBins in the past. This positive experience from the region makes Qatar an easier choice.

3.      Existing partner: Company X has a partner in the United Arab Emirates that can assist sales and marketing efforts in the Middle-East.

Home/foreign market strategy and recommended changes for Qatar

Home: XBins are part of the parent company’s environmental unit, which also offers other products. XBins are manufactured in Finland, where they also enjoy a good market share. End customers in Finland are architects, construction companies, the public sector and facility managers. Domestically XBins are mainly sold directly to customers.

Foreign: Company X exports to over 20 countries (mainly metal litter bins), and has distributors in most of these. Local sales force in three countries. Distant markets have been entered because a customer has contacted XBin.

Qatar: The main change required for Qatar is an increasingly proactive attitude, which means a switch from a pull to push strategy. This implies that more resources are required than in past activities. Manufacturing stays in Finland.

Brand strategy & product portfolio 

The primary weakness of Company X is lack of brand recognition. In the context of Customer-based brand equity, XBins are in the Salience phase. The parent company’s brand is more visible than Company X, but abroad not even the parent’s brand is well known.

Our recommendation is to use the House of Brands strategy, according to which XBins would be sold under a stand-alone brand (separated from the parent). XBin needs its own brand identity, independent vision, mission, logo and slogan.

Regarding product portfolio, the full range will also be offered in Qatar. It is important to also remember that custom models are possible if the order is big enough.

Target customers/stakeholders, key messages and communication channels

Our research revealed that construction companies are our primary customers in Qatar. Any positive influence on architects engaged in projects in Qatar would be highly beneficial, as design litter bins have to fit into the overall urban design.

The competitor analysis revealed that the competitive advantages of XBins are Nordic design and environmental friendliness. The key messages are thus:

-          Nordic design

-          High quality bins manufactured in Finland

-          Nice to look at, easy to use

The main communication channels are:

-          The company’s web site, which should be upgraded to be as informative as possible

-          Brochures

-          Trade fairs/expo’s/seminars (these can be expensive)

Potential partners and channels

Figure 1 below illustrates the possible channel configurations of Company X to sell its products in Qatar.

Figure 1: Company X's potential partners and channels for the Qatari market

Difficulties and limitations disregarded in this project

Company X has very limited resources, both financial and human. We believe the aggressive entry into Qatar that our research results lead us to recommend, is very difficult to achieve in reality. As the primary limitation to enter Qatar is lack of brand recognition, marketing staff needs to be recruited.

A chicken and egg dilemma emerges: more people are needed to enable Company X to expand and sell more, but more sales are required to justify more people. It is unclear how much support can be expected from the parent company.

The original assignment this project was based on, limited us to a choice of country. However, in reality, choosing one country might not be the best or only option. Company X might instead seek to cooperate with multinational construction companies from the start. This is because, arguably, the country the bins end up in is not important to Company X. The construction companies are the customers either way.