study of dubai for global expansion

8/8/2019 Study of Dubai for Global Expansion

1/19

` The emirate has a flourishing retail industry and exhibits strong

fundamentals in its flourishing economy.

` ElUANORA objective was to find a mode of entry that would allow it to

reduce risk of failure and maintaining profitability, while offsetting itslongstanding global rival Wal-Mart.

Dubai presented many advantages for companies considering market

entry into Dubai in the recent years.

Despite a small population relative to other markets it served, Dubai

offers an unusual composition of Expatriates and local residents in an

economy with one of the highest standards of living and income in the

world.


2/19

` Elunora reviewed the laws and determined that a joint venture would be

best to minimize the risk of failure while having a qualified partner to

aggressively seek growth and manage operations.

` It will partner in a joint venture with Majid Al Futtaim, a pan-regional

conglomerate with retail experience in the Middle East.` The joint venture will be adapted to the market by changing the design

which will suite the socio cultural norms of the country.


3/19

` The market is extremely business friendly with many advantages like zero

corporate taxes in conjunction with very few barriers to trade.

` It has superior transportation networks, a well-defined legal system,

positive retail conditions, strong economic growth, low political, and

transfer risks


4/19

` Our brand evaluated Dubais market benefits and risks as well as the

modes of entry and decides in 2015 to partner with Majid Al Futtaim

(MAF), a major pan-regional company owning and operating mall

properties.

` The first benefit is that MAF owns the high-traffic malls and properties

that would be perfect for ELUNORAs location.

` Also, this could prevent other large apparel chains from entering the same

malls, limiting direct competition.

` MAF had operations throughout the entire Middle East, and this could

potentially allow the brand to expand to other countries in the Middle

East under the same partnership.

` MAF had experience in venturing with foreign retailers, and could handle

the operations. By positioning itself correctly in Dubai, we could then use

the waterfall approach to enter the remaining six emirates and capitalize

on the rising growth of standard of living in the UAE.


5/19

Third, we have to adapt to Islamic cultural holidays like Ramadan and Eid,

which would build its peak sales.

Operating hours in Dubai had to accommodate Dubais workweek from

Sunday to Thursday, and the weekend from Friday to Saturday.

` Price

` Price will be competitive pricing which will depend on the strong brand

name in 2015.


6/19


7/19

Due to very liberal Govt. Policies including tax incentives/rebates for attracting large chains to set up retail outlets havemade Dubai an attractive haven for fashion chains .

GOVERNMENTPOLICIES &

REGULATIONS

Due to similar customer profile as in the sub-continent , it wouldbe easier to market and the products would have higheracceptability and faster penetration.DEMOGRAPHIC

SIMILARITIES:

As market penetration depends on end cost of product, hencean effective market strategy would also depend onlowering/reducing the distribution costs. One of the importantcost reduction factors is the cost of labour.

CHEAPER COSTOF LABOUR

The local presence and infra/facility management provided bythe JV partner MAF gives ready access/ready retail outlets inthe shopping malls for our brand. This not only gives highvisibility thereby ensuring high footfall but at a significantlyreduced cost.

LEVERAGE THELOCAL

PRESENCE


8/19

` CRM is a comprehensive strategy & process of

acquiring & retaining customers to create superior

value for the company as well as the customers.

` It consists of the processes a company uses totrack and organize its contacts with its current and

prospective customers.

` To support these processes, various CRM

Software like SAP, ORACLE Sales force.com etc.are used.


9/19

The goal of CRM is to provide improvedservices to the customers, and to usecustomer contact information for targetedmarketing.

Customers being recognised and treatedas partners .


10/19

` Call centre management-` It is a web based CRM technology, that enables users

browsing a companys web site to leave a phone numberwhere company representative can call back with more

information.

` Customer service support-` It is a part of a companys CRM department that interacts

with a customer for their immediate benefits like discounts,

new collection, makeover etc.


11/19

` Sales force automation-

` It is software that automates business tasks like

inventory control, sales processing, customer

interaction.` Campaign management-

` It is a planning, executing, tracking and analyzing

of direct marketing campaigns like magazines,

newspapers.


12/19

` Integrated customer facing front end-` It is face to face interaction between the customers and sales man. This

system is used for marketing, sales and services.

` ERP integrations-

` Customers analytics` It comprises all the programming that analyzes data about an

enterprises customers for business decision. In this stage the loyal andprospective loyal customer can de categorised.

` Complete web integration-It allows end users to have access the

data function of a serve hosted application through internet browserwindow.


13/19

` In 3rd stage the strategic CRM will be followed

and will continuing:

` Strategic CRM updates and expands the originalcontent and combines into one,convenient value

that guides users through the entire CRM

implementation process, from strategic planning

software. This will help us in retaining thecustomer for a longer period.


14/19

` Goals Of The CRM Changes With Better Customer Service From 1st

Stage To 3rdstage .

` In 1st Stage The Goals Were Improve Service Operation And Increase

Sales Efficiency,

` In 2nd Stage Reduce Cost Of Interaction, Improve Customer

Experiences, And Increasing The Customer Interaction

` In 3rd Stage Cost Reduction & revenue growth and competitive

advantages.


15/19

` Database will be formed through the issue ofmembership card and card will be

` of three types :

` Silver Card (Minimum Purchases- more than Rs 4000Per Month

` Gold Card (Minimum PurchaseRs 10000 Per Month)

` EDURA card. (This card can be gifted to some one whowants to purchase gift for some one from the store.)


16/19

` Customer profitability analysis (CPA) is done on

the basis of transactions madethrough the

member ship cards.

` Platinum customers (most profitable).` Gold customers (profitable).

` Iron customers (low profitability but desirable).

` Lead customers (unprofitable and undesirable).


17/19

` IN HOUSE DEVELOPMENT

` It will be tailored made according to organization needs and structure thus it will

be flexible as compared to others.

` BUY LICENSED CRM SOFTWARE- This is purchasing software and

implementing in organization.

` OUTSOURCING A MANAGED SERVICE- This means hiring from outside will

be done.

` Advantage-

` 1. Most of the times lower cost.

` 2. Can adopt pay- as- you go approach with visible result.


18/19

` Steps Involved in customer Satisfaction through Service:

` Seeing problems from the customers perspective

` Communicating effectively through better listening

` Analyzing how customer perceptions are formed

` Managing anger and other service behaviours.

` Dealing with long-term consequences of service breakdowns

` Negotiating solutions

` Generating an action plan for improved on-the-job effectiveness.

` Reduction in check out time

` Faster check out of customers at the transaction or billing counter takes place due to the scanning of the items that the

customer purchases. The scanning of items through various technologies like RFID retrieves the item from the inventory

database and displays it along with its price on the screen of the cashier, which facilitates faster


19/19

` The group will maintain its records of customers by observing their purchasing habits &categories them into various groups like high revenue, moderate revenue & low revenuecustomers.

` Communication to the customers will be through various medium like SMS,E-mail, Mobilevans, Print media etc. This is the way to built a strong presence in the existing customers &prospective customers. oracle software data will be use to maintain database.

`

We expect some foreign collaboration from California based firm GREENPLUM to providenew software for data warehousing.

` The company boasts strong share of its profits from top line customers who provide themaround 70% of their revenues in total.

` The company will be going on the famous management principle i.e. 80/20 PRINCIPLEwhich says that 20 percent of variables cause 80% effect. In Elunora it can be related tothe fact that 20% of its top line customers provide 80% of its revenues in a year.

` This is the reason why the retail giant is focusing strongly on customer retention in order toboasts its sales numbers substantially.

`

study of dubai for global expansion

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