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Marketing Project

Industry marketing is the aspect of marketing services and goods by one company to another or to the end users (Lidstone & MacLennan, 1999). This paper discusses Fakhruddin Group particularly in personal Care Products (Sterling Perfume) as well as the introduction of the new product (SOFTA). Fakhruddin Group is a leading private, multinational company in the UAE for over forty years with a collection of successful portfolios that include plastics, trading, personal care, cotton wool manufacturing, property development and strategic joint ventures.  The company is based in the UAE and is headquartered at Nasser Square in Dubai.

Macro and Micro Environment

Human Resource

Fakhruddin Holdings has over 1000 employees across international borders.The company has seen several changes as it focuses to adapt and satisfy new international challenges. In addition, the organization has grown because of the contributions of employees. More than forty awards have been issued across varied disciplines that incorporated team performance, individual performance, new ideas, long serving member recognition and outstanding contributions (Fakhruddin Group, 2008).

Technological factors

The company keeps pace with technological changes in the industry. It utilizes green air technology to produce sanitation systems both for consumer and commercial use. In addition, the business has state-of-the-art factories that cater to the increasing customer demands. This does not only increase production efficiency, but also gives it a competitive edge in the industry.


There are currently more than seventy growing cosmetic organizations competing in the UAE market.  Additionally, there are too market leaders that command the industry.  As a result, it creates intense competition particularly to those smaller businesses as market leaders are exerting pressure on the smaller cosmetic companies. However, Fakhruddin Group is well established, therefore, it faces least competition. 

Socio-cultural factors

Since Skin Care is a general product, it does not meet or hold any major socio-cultural barrier. Nearly everybody uses skin care. Only ingredients may vary, but the company has a wide range of products just to cater for the market. In addition, because of appropriate promotions and advertisements, the company has not been negatively affected in any way.

Political-legal Factors

Businesses in the UAE are adversely affected by legal and political environment, which entails changes in laws, pressure groups and government agencies. However, the key thing is that the government encourages locally manufactured products. Therefore, Fakhruddin Group has an overhand on this environmental aspect. They manufacture locally except for that, at times, they make use of imported ingredients.

Economic Factors

In terms of Economic Freedom Index, the UAE scores extremely high particularly in fiscal freedom - 99.9%; labor freedom - 76.2%; freedom from corruption - 62% and freedom from government - 80.2%. Essentially, this shows that the labor market is flexible and that there is no corporate taxation at the federal level (Fakhruddin Group, 2008). In addition, the manufacturing site at the Sterling Perfume has a yearly production capacity of about 120 million pieces in the personal and beauty care industry. This is worth a lot and has enabled the company attain financial freedom.

Demographic Environment

The UAE has a population of about8,264,070 with a GDP per capita exceeding US$ 2,000 (FakhruddinGroup, 2008). That means that nearly everybody is wealthy. In addition,the citizens of the UAE are always willing to try something new or something that has extraordinary customer touch, and this has been the line that Fakhruddin Group has capitalized on.

A potential promising market has been established on men as they are about 50 percent of the adult population that use one-fifth of cosmetic sales (Kumar, 2012). Additionally, the senior citizen population in UAE is a huge growing market segment that should be emphasized as the needs of the population are rarely met. 

Market Segmentation

Target Market

Most people in the UAE live in the urban areas and belong both to middle and upper class. The target market for the product is mostly young, middle aged and old women. This does not mean that men do not buy the product. To be precise, this group falls between 15-50 years of age. Normally, members of this group buy the product for different reasons, but all in all, they always go for the product that gives them a chance to indulge their feelings in a special way.

Market Segmentation

Personal Features


15-50 years old


Both male and female

Social Class

Middle and upper class or high end market


Students, career people and professionals



All including Eid


Positive feelings, relationships, creation of bond and convenience

Rate of Usage

Light to medium users

Readiness Towards the product

Intending to buy, Interested

Attitude Towards the product

Positive, Enthusiastic



Want unique things and considers top of the line products more friendlier


Extravert, Expressive, Independent







Concentrated in Dubai

The marketing opportunity

Fakhruddin Group has always employed a much focused strategy. In addition, they moved into this sector with an aim of all segments with Lady Diana products. Besides, its network of distribution is stronger than those of its competitors. Nonetheless, the company could still enhance its distribution network. Currently, the company caters only to the high end urban dwellers particularly in Dubai. Therefore, the company should broaden the products consumer base by venturing in the untapped markets, especially in the low end and countryside dwellers.

Proposed Product

At the moment, the company relies more onLady Diana product as its major revenue earner; however, when closely looked at, the production of Lady Diana product is costly. This makes it positioned in high end market only. In addition, the distribution network of Lady Diana product is complex making it not to reach intended customers in time (Kumar, 2012). This leaves out potential customers who are allergic or do not like organic-based products. Therefore, the SOFTA product, which will consist of inorganic compounds: MgO, Mg (OH) 2 and MgCl2 (Eritzland, 2011). This mineral mixture is for the therapy or prevention of skin diseases, these conditions being undesired psoriasis and eczema (Pagano, 2008). These skin conditions affect millions of both young and old. The SOFTA product is not meant to compete with or face out Lady Diana product as they cater to different markets. In addition, the sales volume of Lady Diana product will not be affected as plans to notify customers will be initiated.

Benefits of the new Product

The product works for all types of skin and moisturizes without making the skin greasy.  In addition, the product has a nice, cool feeling. The goodness with its production is that, the mineral mixture is already determined unlike organic ones, which the company has to determine on its own. This means that its production cost will be much lower compared to Lady Diana; hence providing customers will buy a product that is cost effective.

Levels of the Product

  1. Core product: SOFTA.
  2. Actual Product: The brand name Sterling Perfume, the unique eye-catching packaging.
  3. Augmented Product: Assured or guaranteed satisfaction, but in the case where clients are not satisfied, the customer care center is always open for clarification.

ANSOFF MATRIX (Employed Strategy)

Existing Product

New Product

Existing Markets

Market Penetration

Product Development: SOFTA

New Markets

Market Development


Proposed Pricing

SOFTA will be sold at US$40 per standardized pack; any other pack will be varied accordingly. It is a reasonable set by the company based on the fact that nearly all its ingredients will be imported. In addition, this price has been set after giving an allowance or discount of 20 percent to retailers.

Approach of Pricing

The involved pricing approach is Value based. The company has set the price with regard to the perception of consumers. Precisely, the company is offering the right combination of product and its good quality at the price which is fair.

Involved Pricing Strategy

Product line pricing is the pricing strategy employed. The company has a wide range of products in this segment and so it has set the prices between products in its product line. To be precise, this pricing strategy has been used due to the cost variations between products, prices of competitors and customer valuation of different features.

Distribution Process

Retail outlets are the best chosen distribution channels for the product. With this distribution network, the company will be able to provide the product in a timely manner to the market while offering premium quality, expressive value for money and taste. At all times, the outlets will be an instrumental link for the company and lovers of the product.

Promotional Mix

The promotional mix to be used will consist of a combination of four methods of promotion:

  • Personal selling;
  • Advertising;
  • Publicity and;
  • Sales promotion.

The aim of advertising will be to stimulate sales, and create the new product image as well as build the company’s brand image. Specifically, magazines will be employed as they easily reach a specialist target audience and also have a longer life because of magazine circulation. Personal selling will be used to establish contact with potential clients. Sales promotions will be used to gain consumer and retailer confidence in the new product. Publicity will specifically aim to gain widespread understanding of the product among the potential clients. Overall, the promotional mix of the product will be informative, creating the product awareness at the time of launching.

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