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Hind Al Oud Company

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rabia muhammad

on 28 October 2014

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Transcript of Hind Al Oud Company

Hind Al Oud’s Manufactured Product Range
Hind Al Oud Background
Hind Al Oud’s Manufactured Product Range
Perfume Industry :- Domestic & GCC range
Business Challenges Faced by Hind Al Oud
Current Issues to be addressed
Scanning the Environment (SWOT Analysis)
Proposed Future strategies/recommendations based
Porter’s five forces
Fatimah Saeed - 1039550
Reema Al Meaini - 1004176
Hind Al Oud Company
Strategies for Expansion
in GCC region

Distinctive Design of the Products

Unique & Elegant Perfume Identity

Differentiating theme

Impressive design showroom & retail stores

Hind Al Oud Background
Was stated by the board of director as to create local capability to deliver excellent value to Local and regional customers (GCC clients) by providing the customer the best quality with a high criteria , special products that considered as a strong competitor and continuous productive brand in the perfumes industries.

Hind Al Oud Mission

Is become famous strong preferable brand in the world in the perfumes industries through having unique identity of their products that recognizing the consumer requirement and need translating their behaviors and cultures

Hind Al Oud Vision

Perfume Industry

Perfume Industry :- Domestic & GCC range

Business Challenges Faced by Hind Al Oud
Higher costs as compared to the competitors in terms of costs of its labor and other operational costs.

There are a number of western brands which would also start to become a competition if the problem of costs persists for too long.

The customers are able to get similar products at a much lesser price.

High Cost

Less Price
The brand image of the company has still not seen the apex category. Hind Al Oud is still not a preferred brand in the upper class segment that is largely controlled by companies like Armani, Burberry and Calvin Klein.

Duplication which is largely affecting the brand image of quality of the company, as a result of which Hind Al Oud is not able to justify its high costs

The marketing philosophy used in Hind Al Oud is still not strongly existence while other domestic brands like: Swiss Arabian, Rasasi, Ajmal and Harameen are existing in the marketing competition effectively

Current Issues to be addressed
Some of the broad issues that have defined from the previous sub sections have been mentioned as under:

1) Competition from European brands that have a relatively better global brand image.
2) High costs that are incurred on account of increasing labour and manufacturing costs.
3) Duplication of products that have accelerated in the recent past.
4) Lesser presence in the market owing to constraints on area of sales.
5) Increasing competition from local brands and neighbouring countries’ brands.
Scanning the Environment (SWOT Analysis)
Market Segmentation Strategy

Product Innovation and Differentiation Strategy

Brand Marketing Strategies

Current strategies
Strategies/Recommendations based on SWOT)
Although, Hind Al Oud caters to the relatively expensive perfume segment, it is advisable for the company to undergo mass production so that the cost/bottle can be reduced.

In spite of the fact that Hind Al Oud caters to the youth which consist of more than 60% of the population of the GCC region, the company has not been able to promote itself in this niche segment. Hence, continuous promotion in universities and places of public visit like Dubai Mall and Carrefour hypermarket is highly recommended for the sales to improve in the region.

The company should position itself as the brand for the GCC region. This strategy will give tough competition to the relatively higher priced European brands like Armani and Burberry

Porter’s five forces
-Labour is cheaper in the GCC region as compared to European countries, hence bargaining power of suppliers will be lesser by expanding in the GCC region.

-Cost of technology in the form of MRP-2 is cheap because of competition high competition in the technology segment. Hence, cost of automation is less.

-Raw materials can easily be extracted from the GCC region, hence expanding along the GCC region will have lesser freight expenses

-Increasing competition has increased the bargaining power of buyers.

-Since, 94% of the GCC region people buy perfumes whenever they feel like, only those companies have a better chance to stay in the markets which have a greater brand image.

-There is price war with Swiss Arabia whose low costs
have attracted the customers.

-There is brand war with European companies which have a greater brand image in the higher segment.

-There is technology war with Rasasi because of its MRP-2 installed facility.

-There is quality war with Al Haramain because of its product differentiation strategy

Threat from competitive

Relatively low because of huge costs of setting up perfume industry in GCC region or European countries.
-Many people stick to deodorants because of the higher price of perfumes

-Duplication is a major threat posing to be a challenge because of lesser cost.

-GCC region has high sales of talcum powders also because of a torrid climate. Fragrance can be sourced from there as well.

Threat from substitution
The dilemma is whether Hind Al Oud should expand in the GCC region or in the European market which are the two highest potential markets for perfume industry ?

1) Improve the brand image
2) Provide solutions to the relatively more price conscious market
3) Increase availability in the GCC region
4) Improve the technological capacity
5) Have mass production of standardized products.

Manual labour is given the latest technology that operates in the perfume industry, then it will be able to bring a product in the market, in a shorter period of time.
The use of the latest technology in product making allows Oud to have a product differentiation in the perfume industry that runs in UAE.

Ensures an in depth market research to understand the latest trends and fads of the market
The bifurcation of the perfumes of the company does not only stick to gender and cost bifurcation, but it also based on parameters like the activities of interest, age and maturity

It is advisable for the company to undergo mass production so that the cost/bottle can be reduced. Looking into the potential of perfume market in the GCC region that has a growth of more than 10% per annum, the avenues for sales of this increased production would be high
Hind Al Oud caters to the youth which consist of more than 60% of the population of the GCC region, the company has not been able to promote itself in this niche segment.
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