The Hot Weather
Saudi Arabia is a rich country in terms of economy, living of standards and culture. It is desert country therefore there are fluctuations in terms of weather and climatic conditions (Armstrong et al., 2015). During summer, it is too hot and humid, and in winters, the climate is too cold and chilled. Environment and people over there suffer from health problems like breathing issues. Therefore, there was a huge demand for air-conditioning in most of the houses.
Additionally, cutting down of trees, creation of building, installations of air-conditioning gave rise to environmental pollution (Johnston & Marshall, 2015). Environmental pollution creates major health issues for the people of Saudi Arabia. Due to increase of pollution problem led the people of Saudi to invent such a technology that can solve the problem of pollution and it can help to fight during summer season. As a result, Al Jazirah manufactured the evaporative cooler for the Saudi Arabia in the year 1973.
In order to integrate with regular air conditioning, the Saudi Arab country came up with new product called evaporative coolers that can solve the problem of Saudi Arabia. Arab country was the first world producer of this cooler (Hutt & Speh, 2012). This invention not only created its productivity but also helped a long way to solve the climatic and environmental problems of Arab country. An evaporative cooler is a type of cooler that save electricity, energy, is a big positive attribute of the company as positive impact, and results create more production. Its evaporated water it gives cooling effect to the users of Saudi Arabia.
In terms of competition, then due to innovation and modern technology, manufacturer of evaporated coolers created a new business, more production customers and there by created profit. There are five factories in Saudi Arabian country, and thirty showrooms that have evaporative coolers. Being the most innovative country, it became the number one producer and manufacturer of evaporative cooler in the world.
Saudi Arabia after the successful production of evaporated coolers; it extended its line of production by creating four factories in Saudi Arabia and one in Sudan. The country in terms of business profit, earns a huge success for its innovation and market. There are nearly 30 showrooms in Saudi Arab (Hollensen, 2015). Company for their innovative approach got award in the year 2010 by INNOVABIA. The success behind their invention is their constant focus on day-to-day life activities of the people of Saudi Arab country, their life styles and their problems.
After achieving good production in home country, Al Jazirah gave a thought on expanding the line of production in Sudan country, where there is one factory of evaporated coolers business. There should be more number of showrooms and factories in the local markets of evaporated coolers in Sudan, so that there can be more demand and customers, leading to more number of sales and growth of profit.
DANONE is a French company that came into existence in the year 1925. It is a company, which manufactures dairy items. There are various brands and products of DANONE, which has a good production scale in the market all over the world. Activia is dairy product of yogurt acts as a leading producer in the production stage, came into existence in the year 1986 in Spain. With the huge production in Europe, Activia collaborated with 68 countries, with robust growth in the manufacturing and sales.
Cooling Concepts
Compared to other products, it is the fast growing product across the world. In the year 2009, Probiotics came into existence as a fast growing product soon after a year of arrival of Activia (Lee & Carter, 2012). Still, the production rate of probiotics did not affect production of Activia. The company captured Activia hold for more than 76 percent of the market. In the year 2010, it rose to 84 percent. DANONE employed a very strong and innovative marketing strategy for Activia.
Due to robust growth in the sales and production unit, Activia became the largest producer of dairy across the world. After the existence of Probiotics business, Activia raise the various awareness measures in relation to the quality and usage of the product. It created a success and inspirational story for the rest of the business units in less than two years. Smart business and marketing strategies led the company to become a leader globally. Innovation and creativity adds to success in the business and industry.
Organized planning process in product marketing with standard quality is what marked the success of Activia. Additionally, creation of different new flavors in this product will encourage more and more customers and sales. Rapid growth of sales creates a positive impact on the growth of production and market rate also. Constant increase in the sales leads to increase in production automatically more supply with respect to consumer demand, therefore company earns more profit.
Activia is presently leading at top position; therefore, there are strength and weakness of every company and products. There is tough competition with the growing market. In terms of innovation, with the rapid and constant encouragement in the technology sector, company can maintain a positive and strong stability (Martín, 2015). If the Activia company unable to afford finance for updated technology and if unable to provide enough resources then company may lose its market position.
In case, DANONE faces premature failure in the Activia market then DANONE may avoid this threat by using few methods of business recovery. By raising positive, benefits of using the product and it good quality that is good for health, advertisements and campaigns, publishing the success story in the articles, magazines, source of media, can help to avoid premature failure of the market. The higher the advertisement will give more information to the public in general. Decrease in the price rates will also help to create more customers. Therefore, implementing these effective measures DANONE can avoid premature market failure.
Marketing means purchase and sale of products in the unique way to earn maximum sales. To maintain a good relation between customer and seller, there must be good communication that leads to encouraging of the customers in the best way (Wilson & Gilligan, 2012). Selling of a product depends on the percentage of influencing capacity of seller (Weinstein & Pohlman, 2015). A seller can get customers only when an individual has a full fledge knowledge and information about the product. More advertisement and research of a product leads to creation of demand; therefore, the product should be in relation to customer wants and needs as the market depends on Customer satisfaction.
An example of a hair care product established in Europe, for instance dove shampoo. The company produced good output in Europe, now with growing demand and sales, it want to expand in Middle East countries. With a set goals and plans, creating teamwork, collection of complete information regarding the company and the product, business can create customers. Therefore, good and accurate market plans help the business to grow more rapidly.
References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.
Johnston, M. W., & Marshall, G. W. (2015). Marketing management. McGraw-Hill Education.
Hutt, M. D., & Speh, T. W. (2012). Business marketing management: B2B. Cengage Learning.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Lee, K., & Carter, S. (2012). Global marketing management. Oxford University Press.
Martín-de Castro, G. (2015). Knowledge management and innovation in knowledge-based and high-tech industrial markets: The role of openness and absorptive capacity. Industrial Marketing Management, 47, 143-146.
Weinstein, A., & Pohlman, R. A. (2015). Customer value: a new paradigm for marketing management. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference (pp. 132-133). Springer, Cham.
Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. Routledge.
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