Marketing Female Fitness Equipment in Saudi Arabia free essay sample

It is now commonplace to find large organisations operating as multinational companies trading in a vast number of nations around the world. Expanding a business from one country into another isn’t just a case of setting up offices and carrying out operations as usual. There can be huge cultural incongruity between nations which can have a huge impact on the way in which a business conducts both itself and its operations in order to be successful. It is essential that any business wishing to expand trade into a new country avoids ethnocentric thinking and is willing to be flexible to the culture of that nation. McDonald’s fast food chain is an excellent example of a business that has adapted and thrived in over 119 countries in 6 continents. It has achieved this by building the business around the culture rather than imposing themselves upon it. Everything from their menu’s, the decor and the price differ hugely among the different culture’s they operate within. We will write a custom essay sample on Marketing Female Fitness Equipment in Saudi Arabia or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page For any exporter (in this analysis, it is home fitness equipment), it is easier to export to some cultures rather than others. If a culture is similar to the exporters own then it will make the process significantly simpler. The challenges arise when attempting to export to a culture that is significantly different from the exporters own. When exporting from any ‘westernised’ countries such as England or America to eastern countries such as Saudi Arabia or the United Arab Emirates the cultural differences to be considered are vast and incredibly crucial to their chances of success. Saudi Arabia is currently quite a lucrative and attractive market for investors, it is experiencing high economic growth due to its high domestic oil yield and it’s imports are at an all time high. The collective revenue on imports has increased by 2. 25% from last year and its current gross value has risen from $82,640,000,000 (2008) to $108,300,000,000 (2009), (index mundi 2009). There is currently an obesity problem in Saudi Arabia, particularly among women, with 28. 4% falling into the category of obese, (Eastern Mediterranean Health Journal, 2007). This can partly be attributed to the fact that it is very difficult for a woman to exercise without coming under criticism, particularly from religious leaders. Women cannot exercise in the same gyms as men for religious reasons and the only licensed women’s gyms exist only in government run health clinics, although a few unlicensed, illegal female gyms exist. The main point of opposition to women exercising in gyms is because, culturally it is believed that this will lead to vanity and them neglecting their responsibilities to their families. There are a great number of women searching for an answer to their exercise limitations, particularly from the women’s fitness group; Let Her Get Fat (LHGF). This creates a great opportunity to export home fitness equipment to Saudi Arabia. The potential for success is huge as in contrast to other countries, at home is the only place Saudi Arabian women can feasibly workout. Despite the increase in trade to Saudi Arabia there are still many challenges for those wishing to export there. The first challenge that needs to be addressed is the legal restrictions imposed on any foreign entities wishing to trade in Saudi Arabia. Under Saudi law, any person or business that is not 100% Saudi Arabian owned must gain a Saudi Arabian sponsor for their business in order to trade there, (the-Saudi, 2009). Acquiring a sponsor can be a very difficult process, as the sponsor assumes certain legal responsibilities for the business and its operations within Saudi Arabia and can thus be held personally liable for any breach of Saudi business regulations in accordance with the Ministry of Commerce (MOC). This sponsor not only allows the business to acquire a trading visa but also acts as an advisor and intermediary for its operations. The use of intermediaries is a big part of Saudi business culture, although this can tend to push up the price, the intermediary can provide invaluable information on trading culture thus allowing transactions to run much more smoothly. The sponsor / intermediary and the exporter will, of course, agree on a deal to make the sponsor’s responsibility worthwhile, thus sponsors can make very large sums of money if they prove to be effective. Saudi Arabia has one of the largest royal families in the world, and they have huge influence politically and legally and thus are very poplar targets of exporters to act as intermediaries. There are currently over 5000 Saudi Arabian princes (Datarabia, 2009), so it is not difficult to find a royal sponsor for lucrative business opportunities. To facilitate exports to Saudi Arabia there are even companies that will match up foreign business’s with a Saudi Arabian sponsor such as: www. princevisa. com. It is possible to trade with Saudi Arabia without a sponsor, however, it must happen off shore and it is very difficult to sustain a strong business relationship this way. Religion is a huge issue in Saudi Arabia with an estimated 89% of Saudi’s following Sunni Islam and 5% following Shi’a Islam, (state. ov, 2009). It is probably the biggest cultural difference to be considered. In England religion and it’s practices are very rarely considered when conducting business operations, in Saudi Arabia it is crucial that the Islamic religion and practices are respected and adhered to. When conducting face to face business (which is more highly apprecia ted than communicating through email or phone) in Saudi Arabia men should wear a business suit (as in western business), and a tie with the shirt buttoned up to the collar. In Muslim cultures women are considered as inferior and that men are, â€Å"a degree above women†, (answering Islam, 2008). For this reason it is extremely rare for a woman to be involved in business transactions. However, in the case of women’s attire, â€Å"a look of baggy concealment should be the goal†, (Geert Hofstede, 2005). No business will take place on a Friday as it is a Muslim day of rest, and thus contact to discuss matters of business should always be avoided on this day. It is also common for meetings to be interrupted to allow time for prayer, it is crucial that this custom is observed respectfully. Some may wish to attend a mosque for this or they may just pray somewhere private, such as their office. All visitors to Saudi Arabia are bound by both the religious and standard laws of that country. Clerics hold an immense amount of power and influence and religious police also exist with the power to imprison and hand out capital punishments. Although visitors are not expected to pray or wear traditional Islamic clothing they are expected to act in accordance with its rules. Perhaps the most specific cultural problem when exporting home fitness equipment to Saudi Arabia is that of marketing. Although this product is for both men and women, it is the males in this culture that are the gate keepers and that would be the buyers, thus the marketing must be aimed at males. Any images used in the marketing project would need to picture males using the equipment, and dressed in acceptable attire, under religious laws. The key to marketing the project to men, for the use of women, is to stress the point that it allows the women to lead a healthy lifestyle without removing them from their responsibilities at home. Like any culture there are many points of business etiquette that exist in Saudi Arabian culture. Firstly the left hand is reserved for hygiene purposes and thus is considered unclean, therefore the right hand should always be offered when shaking hands, and only the right hand should be used when touching food. Pointing or giving the thumbs up sign are considered offensive gestures and should be avoided, as should showing the soles of the feet and crossing the legs when sitting. It is also more common in Middle Eastern culture for the customers to give gifts to the suppliers, a role reversal of western culture. It is also common in western business to continue informal business talks and to facilitate business relationships by going to bars and clubs and drinking alcohol. Alcohol is illegal in Saudi Arabia and consuming it or bringing it in to the country can carry serious penalties. The same is true of pornographic images and pork. It is also considered better to avoid talking about religion or women, even to enquire about a family member’s well-being. The cultural differences that exist between England and Saudi Arabia are huge but business can still take place as long as its conducted by those who are open minded. The key is to be flexible and willing to adapt in order to accommodate. The liberal culture of England and the highly conservative culture of Saudi Arabia clash massively, but if the conservative cultural views of the country are respected by English exporters, especially in terms of religion, then a strong export link can be established. References Al-Othaimeen, A. (2007). Obesity: an emerging problem in Saudi Arabia. Analysis of data from the National Nutrition Survey. Available: http://www. emro. who. int/Publications/EMHJ/1302/article22. htm.