Foreign market analysis

The purpose of this report is to design and examine a marketing plan for Bursar's in order to internationalist their business operations by penetrating the Egyptian market. As with the expansion of any business, Bursar's would face many challenges In exporting natural gas to Egyptian households which Is their primary target market. In order to ensure a smooth entrance to the business environment of Egypt, Bursar's would have to adopt a standardized product strategy because of the universal nature and application of natural gas.Secondly standardization would also benefit the company because the resulting economies of scale would reduce costs and the savings can be reinvested Into the company's promotional strategies. Another way for Bursar's to reduce their costs Is by using the existing distribution network of natural gas established in Egypt. The company positions Itself In such a way to take advantage of the increased demand for natural gas because of rising consumption in Egyptian households.The pricing strategy that best suits Bursar's is differentiated pricing, which would effectively hedge risks associated with global shocks to the gas arrest and various other political tensions. Given the marketing plan suited for Bursar's, the three year sales and expenses suggest that venturing into Egypt would be profitable for Bursar's as well as for Egypt in terms of meeting their energy requirements. 2. 0 Description of Target market 2. Political environment Foreign companies have enjoyed the benefits in terms of incentives that the government provides such as the rights to own lands, equipment and capital in Egypt for business operations and the right to export from Egypt without licensing (Hosannas, 2010). The volatile political environment in Egypt may be a barrier to entry for Bursars but sound marketing strategies may be able to overcome these Issues. 2. 2 Economic Environment Egypt has a GAP of $262. Billion and GAP per capita of $6700; the size of GAP per ca pita suggests that the use of alternative fuel for domestic purposes may be favored In such an economic environment. Egypt has foreign exchange reserves of $1. 7 billion (World Bank, 2014) as of 2014 and stable exchange rates means that any remittances and earnings sent back to Turkey would not be susceptible to many allocations. 2. 3 Cultural Environment conducting business operations. This shared culture and value may actually help Bursar's to settle within the business environment of Egypt.The use of natural gas as an alternate fuel which is CEO- friendly may actually be favored in a collectivist society such as Egypt. This would aid Bursar's for promotional purposes swell. 3. 0 Segmentation, Targeting and Positioning: 3. 1 Segmentation The gas sector in Egypt can be segmented into geographic, demographic, cryptographic and behavioral segmentation 3. 1. 1 Geographic Segmentation To reach customers on a broader level, Bursar's has to locate its stations on places where it will be available too large amount of traffic and a large number of residential households.Most people live in the capital, Cairo, the 16th biggest city in the world, where the population 9120000 people (Cairo Population 2013). 3. 1. 2 Demographic Segmentation The prices will be the same for all those who use them (households) although price discrimination exists within Egypt which will be elaborated later in the report. For residential purposes like cooking and heating people from all social classes will be sing the product, whereas for usage by vehicles, people in the lower and middle class families will be using the product.The upper class can easily afford to use petrol in their vehicles. Since the country has almost run out of its own supplies of natural gas, the country has no other option but to import. 3. 1. 3 Cryptographic Segmentation The advantages of using natural gas for household are that it is environmentally friendly and sound than that of other energy resources. Therefore t he reviews should be good by the environmental protection agencies (Peas) which would aid in the promotional strategies as well.