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Note that all information required in this section should be applied to each
targeted market separately whether local, GCC or international (export).
1. Product
A full, clear description of product or products including size (or sizes),
packaging as sold to customer and packing for wholesale distribution (if
applicable), brand/trade name and uses, plus a brief description of the raw
materials. If more than one product is to be sold, details of the product mix
planned (including any changes in mix foreseen during the project life). State
the proposed production program, year by year (for the first 5 years).
Samples, catalogues and/or photographs of the product(s), if available, shoed
be provided. Detail the standards and specifications applicable in the target
market(s) and state to which standard the product(s) will be made.
2. Supply
Details of current sources of supply of the proposed products to the Saudi
market (and other markets, if exports intended) i.e., companies both
manufacturing in Saudi Arabia and exporting countries. Capacity of supplying
companies, their product range and estimated market share. Names, addresses,
telephone, and fax numbers of local manufacturers and agents/distributors.
Relevant information from the MCI
licensed projects list should be included.
The objective is to paint the fullest possible picture of the current supply of
products. Sources of information should be stated.
3. Demand
Demand in any one year is generally assumed to be summation of sales from local
supply plus imports less exports (or re-exports). Where possible for
historical demand, supporting evidence from recognized sources, e.g., Foreign
Trade Statistics and OECD Export Statistics, should be included. State the
sales history of the sponsor and/or the foreign partner (if there is one).
Sales in the Kingdom and other markets are to be covered if exports are
envisaged. If other methodologies are used to establish demand, these should be
fully explained.
The history of demand over the previous five years, where possible broken down
by the major regions of the Kingdom should be provided. Should sales be planned
only in part of the Kingdom, then these particular areas should be covered
together with the national picture. If there are different market and/or
customer segments for the product e.g., retail and catering institutions. The
percentage market breakdown should be included. Where relevant, similar data on
export markets is required.
The future market size over the period covered by the feasibility study should
be estimated, including market segmentation. The methods and assumptions
underlying these estimates are to be explained. (often more than one
methodology can be justified in establishing future demand). The fund usually
evaluate projects based on total GCC demand.
4. Marketing Strategy
A brief statement of the sponsors rationale for the project including
definition of target markets, perceived strengths, and principal competitive
advantages. What is the sponsors
experience in this business or any related activities? (You can benefit from
a separate document on Guidelines For Marketing Plans).
5. Pricing
Prevailing market prices per product/package in the Kingdom (and other markets
where appropriate) and by main regions/cities if relevant. Ex-plant prices for
locally manufactured and CIF prices for imports. Where applicable, retail and
wholesale prices should also be provided.
State the sponsor proposed prices and pricing strategy should be described with
details of distributor, wholesaler and retailer prices as well as margin
structure plus sponsors historical prices if already selling in the targeted
market.
6. Projected Sales & Market Share
In the light of the estimated market size, show the projected annual sales
volumes until the project reaches its full, installed achievable capacity or
licensed capacity. Also slow the projects estimated market share on a year by
year (segmented, if applicable, by product and/or product group; units and
value, customer/market segment and region). Where have sales already been made?
What market shares have been achieved? And What were the sales volume and
value for the past three years (for each product)?
7. Competition
What is the internal/external competition to the project, e.g., competitive
brands, their price range & market share? How will competition affect the
ability of the project to achieve the estimated market share? What are the
strengths and weaknesses of individual competitors?
8. Distribution
How will the product(s) from the factory reach the ultimate consumer?
What distribution channels are proposed? How do these compare with those used
by competitors?
What transportation methods, storage facilities and warehousing will be used?
What is the cost, and how pays it?
9. Marketing Organization
Structure of marketing and sales department including staff numbers,
qualifications, nationalities, experience and job descriptions (Including CVs
of management if already recruited).
10. Sales Promotion/Marketing Support
Detailed plans for advertising and other sales promotion activities both to the
trade channels and consumer/end-users. Planned budgets and percentage of these
to estimated, broken down by type of media to be used. Rationale for the
proposed plans and projected expenditure. Information to be provided on
plans/budget for the company product launch.
11. Marketing Agreements
Copies should be provided of any marketing agreements (including Agency,
Representation, Trade Mark, Distribution etc., agreements) which may exists or
in draft whether these be with local companies or foreign partners. Indicate
the marketing input from such partners.
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