MARKETING MIX OF ALMARAI

COMPANY: A STRATEGIC ANALYSIS

Final report

Students name:
1. Al-hanuf Faisal Al-Juhani (2417121)
2. Jude Al-Ghamdi (2416529)
3. Retal al-Asiri (2416217)
4. Renad Al-Shehri (2416427)
5. Hanadi Abdulrahim al-Sahli (2416434(
6. Ghala Al Shehri (2415952)
7. Lynn Al-Harbi (2416319)
Executive Summary

This analyzes the marketing mix of a hypothetical Saudi Arabian company, "Najm," with a
revenue of approximately 500,000 SAR (US$133,333). The report examines market
segmentation, competitive advantages and disadvantages, product offerings, pricing
strategies, distribution channels, and promotional activities. It concludes with
recommendations to enhance Najm's marketing strategy and achieve sustainable growth.

1. Company Background

Najm, established in 2010, is a Saudi Arabian company specializing in traditional women's

clothing. Headquartered in Riyadh, it operates retail stores in Jeddah and Dammam. While
initially focused on classic styles, Najm recognizes the evolving market and seeks to expand
its customer base.

2. Market Segmentation

Najm can effectively segment its target market by employing various criteria.

 Geographical: Targeting specific regions within Saudi Arabia based on population

trends, cultural preferences, and economic activity.
 Demographic: Focusing on customers based on age, income level, family size, and
occupation. This might involve targeting working women or homemakers with a
preference for traditional garments.
 Behavioral: Segmenting by customer behavior, such as shopping frequency, brand
loyalty, and purchasing occasions. Najm could target women who purchase clothes
for special occasions or everyday wear.

3. Market Analysis and SWOT Analysis

3.1. Competitive Landscape

Najm operates in a competitive market dominated by established brands. Strengths include:

 Deep Understanding of Local Culture: Najm possesses a strong grasp of regional

preferences and traditional clothing styles.
 Customization Potential: The ability to customize and personalize clothing caters to
individual tastes and needs.

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  Established Reputation: Najm enjoys a loyal customer base that values its
commitment to quality and craftsmanship.

Weaknesses include:

 Limited Brand Awareness: Compared to larger competitors, Najm lacks widespread

brand recognition.
 Product Category Reliance: Focusing solely on traditional clothing may limit market
reach.
 Marketing Budget Constraints: A smaller marketing budget compared to larger
companies can hinder brand promotion efforts.
4. Product Mix

Najm offers a diverse product mix of women's traditional clothing, including:

 Categories: Abayas, thobes, hijabs, and accessories like scarves and belts.
 Variety of Styles: Najm provides classic, modern, and contemporary designs within
each category to cater to diverse preferences.
 Size Inclusivity: Offering a range of sizes is crucial to accommodate various body
types.
 Quality Fabrics and Colors: Utilizing high-quality, comfortable fabrics in a variety of
colors broadens appeal to a wider audience.
5. Branding and Packaging

Developing a distinct brand identity is essential for Najm's long-term success. Here are key
considerations:

 Brand Development: Building a strong brand that resonates with the target market
can enhance brand loyalty and customer perception.
 Packaging: High-quality, reusable garment bags with the company logo can elevate
brand perception. Utilizing eco-friendly packaging materials can attract
environmentally conscious consumers.
 Labelling: Clear and informative labels with size, fabric content, and care
instructions are vital. Consider incorporating both Arabic and English labels for a
wider audience.
6. Pricing Strategy

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Najm's pricing strategy should consider the following factors:

 Cost-Based Pricing: Ensure pricing covers the cost of production, materials, and
labor.
 Target Market Awareness: Set prices that are competitive within the chosen market
segments and align with customer perceptions of value.
 Brand Positioning: Pricing can reflect the brand's value proposition. Higher-quality
materials and intricate designs might justify premium pricing.
7. Distribution Channels

Najm can leverage multiple distribution channels to reach its target audience:

 Direct Sales: Najm's brick-and-mortar stores in Riyadh, Jeddah, and Dammam offer a
direct sales channel with the opportunity for personalized customer service.
 Wholesale Distribution: Partnering with established clothing retailers can expand
reach and leverage existing distribution networks.
 E-commerce Platform: Developing an e-commerce platform facilitates online
purchases, enabling national and potentially international sales.
8. Promotion Mix

To increase brand awareness and engage with target customers, Najm can consider:

 Social Media Marketing: Utilizing platforms like Instagram and Facebook to

showcase products, engage with potential customers, and run targeted ad
campaigns.
 Influencer Marketing: Partnering with social media influencers who resonate with
the target audience can create brand awareness and drive product interest.
 Public Relations: Engaging with local media outlets and participating in industry
events can increase brand visibility and foster positive brand perception.
 Loyalty Programs: Implementing

RECOMMENDATIONS

Based on the marketing mix analysis, here are three key recommendations for Najm to
improve its marketing strategies:

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1. Expand Product Offerings and Cater to Emerging Trends
 While maintaining its core strength in traditional clothing, Najm can consider:
o Offering a capsule collection of modern interpretations of traditional wear,
catering to younger customers who appreciate a fusion of styles.
o Introducing a modest activewear line that caters to women who prioritize
comfort and style during exercise and leisure activities.
 This expansion addresses market demand for broader choices within modest
fashion.
2. Leverage Digital Marketing and Influencer Engagement
 Develop a user-friendly e-commerce platform with high-quality product images and
detailed descriptions. This allows customers nationwide and potentially
internationally to conveniently access Najm's products.
 Implement a strong social media presence on platforms popular in Saudi Arabia,
such as Instagram and Facebook. Utilize compelling visuals, influencer
collaborations, and engaging content that showcases Najm's products and brand
story.
 Partner with social media influencers who embody the brand's values and resonate
with the target audience. This approach can generate genuine product
recommendations and drive brand awareness.
 Explore online advertising options that allow for targeted campaigns based on
demographics and interests.
3. Cultivate Customer Loyalty and Brand Advocacy
 Implement a loyalty program that rewards repeat customers with points, discounts,
or exclusive offers. This incentive encourages customer retention and promotes
brand loyalty.
 Host promotional events or workshops at Najm's retail stores. This provides
opportunities for customer interaction, brand education, and product
demonstrations.
 Encourage customer feedback and reviews by offering incentives (e.g., discounts) for
participating. Positive reviews can build trust and attract potential customers.
 Offer exceptional customer service that fosters positive brand experiences and
encourages customers to become brand advocates who recommend Najm to others.

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By implementing these recommendations, Najm can expand its market reach, enhance
brand awareness, and cultivate customer loyalty. This strategic approach positions Najm for
sustainable growth within the competitive landscape of the Saudi Arabian fashion industry.

CONCLUSION

This report has analyzed the marketing mix of a hypothetical Saudi Arabian company, Najm.
We examined its market segmentation, competitive advantage and disadvantages, product
offerings, pricing strategies, distribution channels, and promotional activities. The SWOT
analysis revealed Najm's strengths in cultural understanding, customization potential, and
established reputation. However, limited brand awareness, reliance on a single product
category, and marketing budget constraints pose challenges. Recommendations focused on
expanding product offerings to cater to emerging trends, leveraging digital marketing and
influencer engagement, and cultivating customer loyalty and brand advocacy. Implementing
these strategies can propel Najm's growth and solidify its position within the competitive
landscape.

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