FINAL TERM PROJECT MARKETING MANAGEMENT 2010

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CASE STUDY

Dubai Internet City

To develop a 2010 Marketing Plan for one of the four Business Parks

Word Count: 3261 (Exclude Reference and Exhibits/Figures)

Deadline: April 18, 2010

Course Professor:

Professor Diana Derval

ROBERT KENNEDY COLLEGE

2010

FINAL TERM PROJECT MARKETING MANAGEMENT 2010

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Table of Contents

Part 1. Executive Summary...........................................................................................................4

1.1 Company Vision

1.2 Objectives

1.3 Target Markets

1.4 Mission

1.5 Key to Success

1.6 Ownership

1.7 Expense Budget Summary

Part 2. Situation Analysis and Strategy.........................................................................................5

2.1 Introduction: Market Description

Pakistan

2.2 Strategy Definement

Corporate Approach

Strategic Business Unit (SBU)

2.3 Governmental Influential over Dubai Internet City's Operation

2.4 Market Segmentation

Persona Framework: 3 Target Customer Segments

The segment which has the most potential value

Why choose KHI Techno Park?

2.5 Competitive Analysis

Direct and Indirect competitors for each persona

Competitors’ strengths and weakness

2.6 Unique Selling Proposition

The new Business Park’s competitive advantage(s)

To what extend is it sustainable?

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Part 3. Marketing Mix .................................................................................................................11

3.1 The Traditional 4Ps

Product: Services propose by the new Business Park

Price: Explaining the Business Model

Place: Distribution Channels

Promotion: Using the 6Ms to describe the primary marketing promotion

Part 4. Finance and Risks ............................................................................................................13

4.1 Financial Review

Revenue and expenses overview

Revenue contribution towards growth of Dubai Internet City

Additional Consideration – 3 main risks

Conclusion

Part 5. Exhibits and Figures ............................................................................................................

Exhibit 1: Map of Pakistan

Exhibit 2: Corporate Strategy

Exhibit 3: Market Analysis

Exhibit 4: Industrial Table

Exhibit 5: Competitors’ Strengths and Weakness Chart

Exhibit 6: Positioning Map

Exhibit 7: Traditional Concept of 4Ps

Exhibit 8: 6Ms

Exhibit 9: Revenue Review

Part 6. References .......................................................................................................................17

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EXECUTIVE SUMMARY

1.1 Company Vision - KHI Techno Park

"Vision without action is a daydream. Action without vision is a nightmare."

– Japanese proverb1

To do what we are best at and be recognized as a leader.

Our core values include:

a. Operational safety

b. Mutual trust and respect

c. Confidence

d. Teamwork

e. Doing What’s Right – honesty, ethical

and professional integrity

f. Customer Focus/Quality – primary

determinant of customer satisfaction

and loyalty

1.2 Objectives

DIC is planning to attract at least 200 businesses to the newly developed business park, aiming at

being as competitive as possible on par with Singapore (Singapore’s International Business Park)

which currently has housed 200 foreign and local companies. In addition, it would like to

achieve sales of AED5 million in Pakistan market by end of 2011.

1.3 Target Markets

To be able to penetrate into more than one of the key segments, with its strategic approach.

1.4 Mission

“It is with pride to service our partners with great attitude which lead towards our highest

commitment.”

Mission Statement

1.5 Key to Success

a. Be observant of needs

b. Find solutions to the needs

c. Be proactive to help

d. Be sincere

e. Go the extra mile

1.6 Ownership

Dubai Government.

1.7 Expense Budget Summary

Financial projections/Funds sought and usage.

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SITUATION ANALYSIS AND STRATEGY

2.1 Market Information

Introduction: PAKISTAN2

Strategic Position

Pakistan occupies a position where it can act

strategically as a focal point between South

Asia, Central Asia and the Middle East.

Situated along the coastline of the Arabian

Sea and Gulf of Oman in the south, it is

bordered by Afghanistan and Iran in the

west, India in the east and China in the far

northeast. Tajikistan also lies very close to

Pakistan.

GDP3 4

Pakistan has been growing rapidly as a

developing country5

6

7

8. With the recent

changes, where variety of economic reforms

were being introduced, it’s economy which

was originally a semi-industrialized has

grown with a very steady momentum and

stronger commercial outlook especially in

the manufacturing and financial services

sectors9. The framework of Pakistan’s

economy has changed greatly where

agriculture used to be the major contribution

and now it has shifted its focus towards a

stronger service base. Agriculture accounts

about 20% of the GDP, while the service

sector accounts for 53% of the GDP10

. In

addition, foreign investments have entered

and made significant impact on areas like

telecommunications, real estate and energy11

12

. Other important industries such as

apparel and textiles (accounting for nearly

60% of exports), food processing, chemicals

manufacture, and the iron and steel

industries13

have also demonstrated more

Exhibit 1: Map of Pakistan

Source:

http://www.lonelyplanet.com/maps/asia/pakistan

/map_of_pakistan.jpg

positive signs. Further, forecasts have shown

that in 2010, Pakistan economy would grow

at least up to four percent and could even

grow more with strong international

economic recovery14

.

Political Ties15

Pakistan and the UAE have developed and

enjoyed a very close bound relation through

their deep-rooted cultural affections, shared

same faith (Islam) and traditions, as well as

their geographical closeness and identity of

interests. These relations can be traced back

to UAE's formation in 1971, where both

countries’ bilateral relations and mutual

beneficial cooperation have progressed

steadily16

and they have seen evolved in

many projects and shown co-operation in

various related fields. Moreover, UAE has

emerged as one of Pakistan's major

economic and trading partners.17

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2.2 Strategy Definement

Corporate Approach

Arising questions like, “Which businesses should KHI Techno Park focus on?”, “Is this the right

business?” or ”What sort of businesses synergy do these businesses create or add to the

competitive advantage of the corporation as a whole?”

Exhibit 2: Corporate Strategy

Exhibit 2 illustrate as to how the Park could group or cluster its businesses by breaking it into three levels.

Strategic Business Unit (SBU)

The Park will need to create and focus on a business strategy where it could incorporates either

cost leadership or differentiation in order to achieve a sustainable competitive advantage and

long-term success in its chosen markets or industries. Alternately, to achieve a higher growth and

profits, using business concept like the Blue Ocean Strategy18

19

is highly recommended as this

could help the company to break the value-cost tradeoff and at the same time pursuing both

differentiation and low cost.

2.3 Governmental Influential over Dubai Internet City's20

Operation

The Government of Dubai has always been an influential figure in the development as well as

the overall operational in relation to DIC. In an interview21

, His Highness Sheikh Mohammed

bin Rashid Al Maktoum22

has mentioned with the Vision 2010 plan, it has navigated and brought

emirate on the next level in terms of shaping the overall economy.

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2.4 Market Segmentation

Karachi

Karachi is the largest city, main seaport and

financial and commercial capital of

Pakistan. The city is also the premier centre

for banking, industry, and trade. Karachi is

also home to Pakistan's largest corporations

involving those in textiles, shipping;

automotive industry, entertainment, the arts,

fashion, advertising, publishing, software

development and medical research [refer

Exhibit 2 & 3]. Karachi was ranked as a

Beta world city23

, alongside with its status as

a major port and the country's largest

metropolis. It account for a major share of

Pakistan's revenue.

A survey was done by World Bank on

February 2007, identifying Karachi as the

most business-friendly city in Pakistan24.

Exhibit 3: Market Analysis

Industries:

Automotives25

Media Iron/Steel

Advertising/Publishing/Public Relation Medical Research Shipping

Banking/Insurances/Investment/Financial

Service26

Oil and Gas27

Service Sector including

Tourism

Electronic Power/Energy Apparel/Textiles28

Engineering Pharmaceutical/Healthcare Transportation

Entertainment/Arts/Fashion/Record

Label

Software/Hardware

Development Telecommunication29

30

Information Technologies31

Securities Trading

Food Processing Chemical Manufacturing Real Estates Exhibit 4: Industrial Table

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Persona Framework: 3 Target Customer Segments

Persona 1:

Nandini Oberoi aged 37, a Pakistani born and raised in America moved back to Pakistan three

years back. A mother of two young girls aged 5 and 7, is a well respected businesswoman, own a

textile company and President of Women Entrepreneurship32

Society.

Despite her busy schedule, she always makes a point to wind down and relax with tranquility of

a luxurious spa. It is also her favorite place of meeting up with all her business associates.

Persona 2:

Abdul Latiff single, aged 34 is the Director of Sales in a telecommunication corporation. Travel

quite often for business meetings. A computer savvy and love collecting the latest gadget that is

introduced in the market. A fitness enthusiast and loves to workout at least four times a week.

Persona 3:

Ali Al Rais aged 46, an expatriate who has been living in Pakistan for the last ten years with his

family. Working as a HR Regional General Manager in an Oil and Gas industry. In between

breaks, Ali enjoy playing a game of chess, catching up with his acquaintances over a cup of

coffee after a long day of work and a game of football on his leisure time.

The segment which has the most potential value

According to one of the research done, it has shown that women entrepreneurs/workforce did

make a significant amount of contribution in the developing of Pakistan economic33

34

. I would

fully agree that by tapping into this potential segment would be the most valuable.

Why choose KHI Techno Park?

The enticing benefits which are offered by KHI Techno Park, is hard for one to resist upon. The

official website created will be effortless and in simplicity way where information contains are

very useful from new accounts to current ones. Navigation within the site is made easy with its

step by step instruction from ease ordering to new signs up. Value added pricing could either be

custom made to suit individual or partners could simply choose from the array bundle up prices

listed in the costing catalog and all these with just a click of a button. The speedy service will be

return within 12 to 24 Hours depending on the urgency of the issue and this assurance will draw

the trust on the reliability of the service that will be delivered by the new Tech Park. In addition,

the Park will be fitted with variety of amenities, from fully equipped gym to world class spa,

bistro, cyber café, travel desk, day care centre and many more.

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2.5 Competitive Analysis

Direct and Indirect competitors for each persona.

Direct Indirect

Persona 1 another Tech Park Spa/Beauty Centre

Persona 2 another Tech Park Gym

Persona 3 another Tech Park Bistro/Coffee shop

Competitors’ strengths and weakness

Strengths S

Global Reach e.g. Having

branches in some countries.

Low Cost Producer

Leading Positions

Product Innovation

Strong cash flow

Technological skills

Production quality

Weaknesses W

High turnover of employees

Price Discrimination

Hidden costs

Poor Management style

Location of offices on the

outskirts area

Weak brand of awareness

Low customer retention

Absence of important skills

Poor access to distribution

Unreliable service

Exhibit 5: Competitors’ Strengths and Weakness Chart

Positive Negative

Internal

Factors

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Even despite, the competitors hold the leading position but due to the poor management and

weak brand awareness this could serve as an advantage to KHI Techno Park to concentrate on

this area to attract the customers.

+

-

+ Brand Awareness -

Exhibit 6: Positioning Map

2.6 Unique Selling Proposition

“It is with pride to service our partners with great attitude which lead towards our highest

commitment.”

Mission Statement

The new Business Park’s competitive advantage(s).

The forthcoming KHI Techno Park which will be built on a 300-acre piece of land is the first

Business Park to launch with multi-functions and a state of art facilities, aiming towards the right

targeted groups with the right attitude through various channels and concepts.

It is strategically located in the prime business district where it could connect with all business

networks.

To what extend is it sustainable?

With over 24 industries along with an aggressive campaign clip in hand; KHI Techno Park could

go a long way in maintaining its uniqueness branding and clienteles.

Loca

tion

Other

Tech

Parks

Gym

Spa/Beauty

Centre Bistro/Coffee

Shops

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MARKETING MIX

3.1 The Traditional 4Ps

The whole idea of using the Marketing Mix is to increase the competitive advantages of the

organization. Variables can be mix and match or controlled in order to best satisfy customers in

the targeted market.

The traditional marketing mix model portrayed in below Exhibit 7 is used to generate a positive

response in the targeted market by blending these four items in an optimal manner.

“Giving the right product (service) in the right place, at the right price, and most important of

all at the right TIME!!”

What is understood by the above statement? It is simple! As a marketer, it means to create a

product (service) for a specific group of people, put it on sale some place which these same

people will visit regularly, price it at a level where it matches the value; and do all that at a time

they want to buy. Perfect solution!

Exhibit 7: Traditional Concept of 4Ps

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Product: Services propose by the new Business Park

Product can be physical or service offered to a consumer. The elements to consider during

product decisions include areas such as function, appearance, packaging, service and warranty.

Brand name ~ Quality ~ Scope of Service line ~ Warranty ~ Packaging ~ Functionality

“What does the customer want from the product/service?”

“What needs does it satisfy?”

Persona 1: A discount membership to the luxurious spa bundle with the whole package would

have been great.

Persona 2: A one stops shop of electronic devices.

Persona 3: Manpower services include hiring of workers and visa handling issue.

Price: Explaining the Business Model

When deciding on pricing, things such as the profit margins and the probable pricing response of

competitors should be taken into account. Pricing should not only include the list price, but also

discounts, financing, and other options such as leasing.

1. Pricing Strategy

Different pricing techniques that could be use to aim at different market segment:

a. Mark-Up Pricing

b. Target Return Pricing

c. Perceived Value Pricing

d. Value Pricing

e. Going Rate Pricing

f. Sealed Bid Pricing

g. Psychological Pricing

h. Promotional Pricing

2. Lifetime benefits

3. Classify the goods and services (i.e., GST taxable supply, GST free or GST inclusive)

4. Leasing Option - Price variance in term of rental of office space (e.g. permanent or

temporary)

5. Discounts/Promotion for new account

6. Bundling

7. Payment Terms/Mode of payment/Financing Options

8. Demand

9. Cost plus margin

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Place: Distribution Channels

Distribution decisions are those that are correlated with the channels of distribution that serve as

a means in getting the products or services to the target customers. It also includes market

coverage, channel member selection, logistics, and levels of service.

“How can the product/service be distributed?”

“Where can the customers look for the product or service?”

a. Through internet

b. Sending catalogue to the companies

c. Engage a sales team/force to promote the product/service

d. Organize trade fairs/exhibitions

e. Telemarketing

f. Advertising

Promotion: Using the 6Ms to describe the Primary Marketing Promotion

Advertising and Promotional Strategies are methods used and along with the cost of bringing the

product/service to the attention of the prospective or potential customers.

Further, these costs could even be higher compare to the product price; hence a break-even

analysis (ROI) should be performed when making these decisions. At the same time, it could be

useful to know the value of a customer in order to determine whether these additional customers

cost are worth acquiring on them.

1. Mission

The key objective of this promotion is to Build Awareness - Initial promotional efforts will be a

good kick start in establishing an identity. Marketer will need to critically focus on promotion as

this is one of the driving forces to reach the targeted customers effectively and at the same time

announcing to the entire market of their brand and services and what can be offered.

2. Means

To create and work around with a Pre-Determined ROI is easy but in reality speaking there is no

guarantee that the pro forma ROI indicator will show how successful the program is. But one

could determine the success of the product/service if does bring in enough new/repeat business

which could be in term justify with the expense.

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3. Message

The Unique Selling Proposition (USP) is simply helping to define the Techno Park and setting it

apart from other companies by their service, quality and price structure.

4. Moment

“Where and when is the best time can the marketing messages be promoted and send across

to the target market?”

Timing is extremely critical when delivering the products/services to the customers or verse

versa. Reaching the exact audience at the right moment will helps to connect to the real

customers for the business. The best moment to interact with the potential personas are during

their “idling” or to be more precise “waiting” time as these are the best opportunities to catch

their attention.

5. Media

How to reach the audiences? By using the below methods:

a. Television

b. Radio

c. Newspaper/Magazine/Directory

d. Cinema

e. Outdoor Media - Billboards

6. Measurement

In the usual context, traditional techniques such as profitability, market share and profit margins

are tools used to measure the success. But as time progress, the transitional process will need to

be shifted to more customers focused. Hence, measures such as customer acquisition costs,

conversion rates, retention rates, customer sales rates, loyalty measures and customer share

within a brand will be the measuring tools of success.

Exhibit 8: 6Ms

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FINANCE AND RISK

Revenue contribution towards growth of Dubai Internet City

Base on the information provided, 180 companies had signed up as tenants, including world-

renowned companies such as Microsoft, Oracle, HP, IBM, Compaq, Dell, Siemens, Canon

Logica and Sony Ericsson.

Exhibit 9: Revenue Review

Given the limited amount of information presented in the case study, the revenues calculated

are estimates and base on the following the assumptions.

Assumptions:

1. Targeting to attract 200, 400 or 600 businesses to use Dubai Internet City in Pakistan (KHI

Techno Park).

2. Offers two different service options: 1 month or 1 year lease option for new businesses.

3. Revenue is calculated based on the projections, number of businesses that will subscribe to

the various service options.

4. Gross Profit is calculated before deducting expenses incurred by DIC (using FY2004 Cost of

Revenue figures). These figures are indicative as DIC may have experience an increment or

decrement to its annual operating Cost of Revenue in subsequent financial operating years.

5. Figures are based in AED (United Arab Emirates)

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Additional Consideration – 3 main risks

In additional, there could be some potential situations (refer below) where the Techno Park may

face while attempting its plan. Care and consideration must be taken on these adverse effects.

External Force

a. Supply chain problem

b. Competitors’ reaction

c. Technology development/

advancement

d. Legal environment

e. Societal changes

f. Economic issues

g. Governmental concerns

Internal Factors

a. Loss of funding sources

b. Loss of key personnel

c. Production problem

Research Limitation

Marketers may experience difficulty in sourcing out quantifiable data to justify and support

certain subjects/findings. Additional methods, for example, questionnaires and surveys may be

required to perform data gathering to ensure that the information is relevant and up-to-date for

Dubai Internet City - Marketing Plan.

Conclusion

The current research for Dubai Internet City - Marketing Plan was not designed to evaluate

factors related to financial earnings. If the company decides to take on the project of building a

Techno Park in Karachi, taken together the purpose of this marketing plan is to perform a

feasibility study through a situational analysis and strategy and understanding; market

segmentation, competitive analysis, unique selling proposition and market mix which gives us an

opportunity to evaluate Pakistan (as a possible location) for Dubai Internet City to deliver a

techno-park service to its current and potential clients.

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