Agthia Group
Executive Summary
The report involves an analysis of marketing plan and strategy adopted by Agthia Group for its unique AL AIN Vitamin D water. The product is unique in the market in that it supplements the UAE market diets and serving the needs of a 78 % of the population that research has shown to have vitamin D deficiency. The marketing strategy for the product has been based on the vision, mission and core competencies of the firm. Through the integration of the 4Ps marketing mix to these aspects, the paper highlights how the plan has fared in the market and the improvements needed. Trust from stakeholders and product innovation have defined this marketing strategy. The use of integrated marketing communication to create a connection between the consumers and the brand can offer an improved strategy.
Company and product description
Agthia Group is food and beverage firm based in Abu Dhabi and with its operations in various countries including Oman, Turkey, UAE, and Egypt. It was founded in 2004.The company also undertakes manufacturing, distribution and even marketing of various products such as animal feed, flour, dairy, tomato pastes fruit juices and even baked goods. The company consists of two segments that include Consumer Business Division and Agri-Business Division under which its operations are undertaken (Agthia Group, n.d).
Product
In line with the vision of the company, the AI Ain Water was launched with a focus on uncompromising heritage and quality, a brand that could be trusted to live up to its promise. The production of AI Ain water was also done in line with the commitment of the company to offer a broad, nutritious and wholesome product for the consumer so as to promote a healthy style of living. The new product was produced with sustainability, innovation and knowledge aspects in mind in line with the market needs arising from Vitamin deficiency among the consumers. The introduction of the product was also in line with leadership position of ensuring that nutritious, quality and responsibility in production, that is under continuous guidance of commitment and duty. The basis of the product was an understanding of the pressing market needs and trying to meet those using innovative means. The AL AIN Vitamin D serves as a way in which such commitment may be achieved. The water container may be orange colored and became the only water bottle in the entire world to have Vitamin D and no preservatives. The production of this water followed a market research that showed a deficiency of the vitamin among more than 78 % of residents in the entire UAE region. This presented a great health risk to the consumers who have low exposure the sunlight exposure since most prefer to engage in indoor activities during hot summer periods (Agthia Group, 2018). In addition, the poor feeding habits and sedentary lifestyles make the matter worse since it leads to various health complications. This justifies the introduction of a product that would cater for the lacking vitamin.
Marketing plan
Vision
The vision of the company has been to get recognition as The Best Food & Beverage Company across the UAE market (Agthia Group, n.d).
Mission
The mission of Agthia Group is to offer super value to its shareholder through a number of ways: providing products that are innovative, trusted and nutritious to consumers and aligning the wellness and health needs of customers to the products; promoting the chosen growth categories and customer services that is efficient , reliable and profitable and thereby acting as the best partner; achieving excellence in the organization by embracing a corporate culture in which achievement, commitment, entrepreneurship, and teamwork are promoted and therefore, being the best employer; upholding social responsibility and being an organization that is environmentally friendly (Agthia Group, n.d) .
Core competencies in marketing plan
The core competencies of the firm are included in the highlighted company values that define its culture. The basic value upheld by the company includes determination, inclusivity, entrepreneurship, and authenticity. The expertise and knowledge are used in ensuring that top quality products are availed to all in the market. The determination involves being driven and committed to the creation of value through all activities and hence, being the best (Agthia Group, n.d). The company employs expertise and knowledge to make sure that the high-quality products it produces can be available to all, making the life of the consumers enjoyable. This is in line with the 4Ps tools for marketing mix, which describes the various types of decisions an organization has to make in the entire process of providing the product or service to the market. The product is a major concept in this tool. In making a decision about the intended product, one should consider some pertinent issues that will help in understanding the product they wish to sell (French & Gordon, 2015). These issues include the problem to be solved by the product, the product's benefits, and features, how it will be exceptional to the market and the consumers who are likely to buy it. These enable a firm to understand the benefit a customer may gain from the product in terms of the needs it will satisfy (French & Gordon, 2015). The features such as appearance or color and size will determine whether the product will appeal to the targeted consumers. The brand name, its differentiation in comparison to the substitutes in the market is important aspects that will influence the performance of the product in the market. The AL Ain Water was a product whose production was based on the available market information describing the deficiency of vitamin D in more those 78 % residents of UAE (Ahmad, 2018). The product serves the need for a product that would provide vitamin D to the public and such a product would be available to the whole population.
The benefits considered in the manufacturing the product was how the product would offer the required vitamin to the market. The product is aimed at being a convenient supplement to diet and lifestyle that is balanced, instead of providing a singular solution to deficiency in Vitamin D. The content of the product is also an important aspect considered since the product provides 50 IU that is suggested daily allowance in a 500ml bottle, and 331 IU in 330ml (Ahmad, 2018). This means that the product is able to contribute towards supplying the body with the daily required level of vitamin D in the body. In addition, the product is composed of the best mix of other important minerals for the human body. To maintain clarity of the water, it has no colors, flavors, and preservatives added to it so that to make it appealing to the consumers. These features are aimed at providing various health benefits to the consumers which include prevention of chronic illnesses such as heart disease, osteoporosis, multiple sclerosis and some cancers and various infectious diseases like tuberculosis. The product is unique in that it is the only manufactured water in the market that can provide such benefits to the consumers and is currently not facing any competition from substitutes in the market (Ahmad, 2018). Even though the product cannot offer all the desired vitamin D benefits to the consumers, it is a good supplement to a lifestyle that discourages limited exposure to sunlight. Its features can meet the needs of the consumers in the market since it comes in the right content and quantity while leaving out any destructive components such as preservatives common in other beverage products.
The mission of the firm involves making its products available and accessible to all people in the market who are in need. The pricing of the AL AIN Vitamin is in line with the 4Ps tool. The price of a product is determined by the value that buyers can derive from it, the established price points for such products in the market and the sensitivity of customer to price. This involves considering whether a small change in price can result in the desired market share and profit margin or will lead to a decline of these. This involves considering how the pricing of the product compares with other substitutes in the market (French & Gordon, 2015). A firm has to consider that entails the price of a given product including distribution location, distribution, and the markup price for retailers and the payments plans. The pricing of AL AIN Vitamin D at Dh2 for the 500ml bottle means that it can be afforded by many people in the UAE market who need it for replenishing Vitamin D in their bodies. A pricing above this would make the product unaffordable in the market, which is likely to attract substitutes that are lowly priced while a lower price below Dh2 means that the firm would not make desired return for the product. The pricing of a product has to be reasonable and align with economic patterns in terms of demand and the characteristics of the product itself. Understanding the consumer desires and the market conditions will enable a firm to set a price that a buyer is willing to part with while trying to satisfy his or her unmet needs (French & Gordon, 2015). This is the ultimate way in which a firm will achieve success in pricing strategy for its products.
The need for authenticity is a major competence for the organization and which forms the basis of AL AIN Vitamin D promotion, one of the aspects of 4PS tool. Promotion involves getting the message about a product to the entire target market by use of various methods such as online, press, radio, TV, billboards advertising (French & Gordon, 2015). The promotion of the AL AIN Water by the company is based on being genuine and honest by passing the right message to the consumer in regard to the product. The promotion message about the product is conveyed through various media billboards, TV and online advertising. The online advertising is a major component of the promotion and has focused on the content of the products and the benefits that consumers are bound to reap from it (Agthia Group, n.d). The environmental issues form an important aspect that is emphasized in the business model of the company and on which the firm places great focus. Aligned to the commitment of the company to UAE community and the firm have created various initiatives aimed at raising the profile of the major environmental issue. Key to this has been the reduction in usage of cups and bottles and improved bottle recycling so as to ensure that the AL AIN Vitamin D product captures the environmentally cautious public (Agthia Group, n.d). This is also in line with the firm's commitment to being honest and genuine in its dealings in a business environment that is becoming increasingly cautious on environment conservation and sustenance. As aforementioned, sustainability is a major value that is upheld and observed in the company's culture.
As a major manufacturing firm in UAE, Agthia Group has been able to establish a strong distribution network that has ensured that its products are accessible to everyone in the market, in line with its mission statement (Agthia Group, n.d). This relates to place, the last part of 4Ps tool. Placement involves deciding on the product should be sold, so that it is available to online merchants and retailers. Figuring out whether the product is suited to the selected place is quite important since consumers high-quality products but that are also available. It also involves the ease with which distribution channels can be accessed and how this relates to channels adopted by competitors (French & Gordon, 2015). An integral core competence of the firm is inclusivity which involves being open-minded to allow sharing and experiencing with various stakeholders including suppliers and elimination of any barrier. This is important in ensuring that a relationship is established with suppliers and right distribution channels that ensure that AL AI Vitamin D product taken to the appropriate marketplace. The firm has an established distribution channel, where over 4500 employees are engaged in the daily process of distributing the product (Agthia Group, n.d). The wide network in the local market ensures that product is distributed to all the key retail chains including supermarkets in UAE. The mission of the firm that involves daily consistency in the provision of quality and nutritious products for all people relies on the ability of the distribution process to deliver the product to the right place and at the appropriate prices and time. This ensures that the firm maintains its focus and direction in being the best provider of drinking products.
Situation analysis
The marketing strategy of Agthia Group has been based on innovation as the major driver of economic change, and which involves the creation of innovative solutions to emerging opportunities in the market. Marketing strategy involves having the right product at the right place and time and offering it at the right price. The strategy for Agthia Group in marketing the AL AIN Vitamin D water a marketing mix that is based on innovation in manufacturing a high-quality product, providing it in the appropriate marketplace , through sustainable promotion and price. The strategy has involved producing a product with the recommended mineral level to supplement the diet of UAE residents. Research and development have been a core aspect in the marketing strategy, which has revealed the need for such a product in the market considering the fact that over 78 percent of the population have vitamin D deficiency (Ahmad, 2018).
Based on knowledge and innovation, the firm has produced a product that is unique in the market and which attracts little competition at the moment. The strategy also involves a well-established distribution channel that ensures that its products are placed rightly in the market. Key to the distribution is a good relationship with suppliers and the efforts of a committed workforce that is involved in every operation of the organization. The pricing of the product is also convenient to the consumers and the firm, which makes the product accessible to the public and at the same time ensuring that the firm can maximize profits. The promotion of the products by the firm is done in various forms including billboards, TVs, and online advertisement so that to convey to the client a message on the health benefits of its products.
Evaluation and interpretation of the situation
The success of a marketing plan can be measured using various metrics including the response by customers, partners, expansion in terms of market reach or market share and return on investment. The launch of the AL AIN Vitamin D waters seems to have started on the right note, give the kind of response it elicited from key players such as the government minister. The vision of providing a product that meets the vitamin D needs of consumers in UAE market attracted applauds from the relevant authorities especially the Minister of State for Food and Security (Agthia Group, 2018). The marketing plan was able to achieve the first objective of gaining the trust of relevant partners including the government who are able to influence the bearing of the product's performance in the market. However, having just been launched, it is interesting to know the performance of the product in the market and the kind of response it will receive from consumers. The product is claimed to appear pure natural with no added flavors and color which is likely to appeal to the larger market in the UAE and beyond.
The initial response to the online market of the product is promising and with such a trend the product can attract a huge base of customers in need of nutritious water. The market response in the market in the little time the product has been on the market indicates positive outcomes but more needs to be done. The marketing strategy should focus more on the individual customer through personalized marketing. In case of a slow acceptance of the product by the consumers, it is important that the marketing plan embrace relationship marketing through integrated marketing communication. Relationship marketing is aimed at the creation of a connection between the brand and the consumer; the connection should be strong and emotional. The goal in this is to have a continuous passage of information to buyers after understanding their needs and relating their needs to the product being offered. Integrated marketing communication emphasizes on connecting the collected information about the customer and established needs to the product (Shimp & Andrews, 2013). The AL AIN Vitamin D product should fully be marketed through communication and creation of a relationship between the need for vitamin D and the benefits provided to cure the deficiencies. This will ensure that consumers are sensitized on the need for buying the product.
Summary
Agthia Group launched AL AIN Vitamin D water with a focus on uncompromising heritage and quality, a brand that could be trusted to live up to its promise of providing the solution for vitamin D deficiency. The marketing plan for the company is based on its vision and mission of providing the trusted and best quality products to the market. The core competencies in the firm are contained in cultural values which include determination, inclusivity, entrepreneurship, and authenticity. The marketing plan of the firm is based on high-quality products and effective distribution network to ensure everyone has access to these. The inventive and commercial spirit forms the basis of innovation in the company so innovative answers are provided for new opportunities. The marketing strategy of Agthia Group has been based on innovation as the major driver of economic change, and which involves the creation of innovative solutions to emerging opportunities in the market. The launch of the AL AIN Vitamin D waters seems to have started on the right note, given the initial positive response from partners and consumers. More customer-focused marketing strategy through integrated market communication is needed to create a brand –consumer relationship and drive up sales.
Conclusion
The marketing plan adopted by Agthia Group firm for the new AL AIN Vitamin D water has been based on the core competencies, vision, and mission of the firm. High quality, trust, innovation and customer needs have been the cornerstone of the marketing strategy. For improved performance of the product in the market, aggressive marketing through integrated marketing communication is necessary to sensitize the customer on the need for the product.
References
Agthia Group,( n.d). Everything we do at Agthia is wholehearted. Retrieved from: http://agthia.com/en-us/About-Agthia
Agthia Group,( 2018).Agthia Launches the World’s Only Vitamin D Water . Retrieved from: http://agthia.com/MediaCenterInner/id/1078
Ahmad, A., (2018).World’s first bottled vitamin D water launched in UAE. Retrieved from: http://gulfnews.com/news/uae/environment/world-s-first-bottled-vitamin-d-water-launched-in-uae-1.2158899
Percy, L. (2014). Strategic integrated marketing communications. Routledge. 6-11
Muhairi, S. J., Mehairi, A. E., Khouri, A. A., Naqbi, M. M., Maskari, F. A., Al Kaabi, J., ... & Shah, S. M. (2013). Vitamin D deficiency among healthy adolescents in al ain, united arab emirates. BMC Public Health, 13(1), 33.
French, J., & Gordon, R. (2015). Strategic social marketing. 87-89
Appendices
AL AIN Vitamin D water
