FINAL TERM PROJECT MARKETING MANAGEMENT 2010

CASE STUDY

Dubai Internet City

To develop a 2010 Marketing Plan for one of the four Business Parks

Word Count: 3261 (Exclude Reference and Exhibits/Figures)

Deadline: April 18, 2010

Course Professor:
Professor Diana Derval

ROBERT KENNEDY COLLEGE

2010

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

Table of Contents
Part 1. Executive Summary...........................................................................................................4
1.1 Company Vision
1.2 Objectives
1.3 Target Markets
1.4 Mission
1.5 Key to Success
1.6 Ownership
1.7 Expense Budget Summary
Part 2. Situation Analysis and Strategy.........................................................................................5
2.1 Introduction: Market Description
 Pakistan
2.2 Strategy Definement
 Corporate Approach
 Strategic Business Unit (SBU)
2.3 Governmental Influential over Dubai Internet City's Operation
2.4 Market Segmentation
 Persona Framework: 3 Target Customer Segments
 The segment which has the most potential value
 Why choose KHI Techno Park?

2.5 Competitive Analysis

 Direct and Indirect competitors for each persona
 Competitors’ strengths and weakness
2.6 Unique Selling Proposition
 The new Business Park’s competitive advantage(s)
 To what extend is it sustainable?

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

Part 3. Marketing Mix .................................................................................................................11

3.1 The Traditional 4Ps
 Product: Services propose by the new Business Park
 Price: Explaining the Business Model
 Place: Distribution Channels
 Promotion: Using the 6Ms to describe the primary marketing promotion
Part 4. Finance and Risks ............................................................................................................13
4.1 Financial Review
 Revenue and expenses overview
 Revenue contribution towards growth of Dubai Internet City
 Additional Consideration – 3 main risks
 Conclusion
Part 5. Exhibits and Figures ............................................................................................................
 Exhibit 1: Map of Pakistan
 Exhibit 2: Corporate Strategy
 Exhibit 3: Market Analysis
 Exhibit 4: Industrial Table
 Exhibit 5: Competitors’ Strengths and Weakness Chart
 Exhibit 6: Positioning Map
 Exhibit 7: Traditional Concept of 4Ps
 Exhibit 8: 6Ms
 Exhibit 9: Revenue Review
Part 6. References .......................................................................................................................17

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

EXECUTIVE SUMMARY

1.1 Company Vision - KHI Techno Park

"Vision without action is a daydream. Action without vision is a nightmare."

– Japanese proverb1

To do what we are best at and be recognized as a leader.

Our core values include:

a. Operational safety e. Doing What’s Right – honesty, ethical
b. Mutual trust and respect and professional integrity
c. Confidence f. Customer Focus/Quality – primary
d. Teamwork determinant of customer satisfaction
and loyalty

1.2 Objectives

DIC is planning to attract at least 200 businesses to the newly developed business park, aiming at
being as competitive as possible on par with Singapore (Singapore’s International Business Park)
which currently has housed 200 foreign and local companies. In addition, it would like to
achieve sales of AED5 million in Pakistan market by end of 2011.

1.3 Target Markets

To be able to penetrate into more than one of the key segments, with its strategic approach.

1.4 Mission

“It is with pride to service our partners with great attitude which lead towards our highest
commitment.”
Mission Statement

1.5 Key to Success

a. Be observant of needs d. Be sincere

b. Find solutions to the needs e. Go the extra mile
c. Be proactive to help

1.6 Ownership

Dubai Government.

1.7 Expense Budget Summary

Financial projections/Funds sought and usage.

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FINAL TERM PROJECT
SITUATION ANALYSIS AND STRATEGY
2.1 Market Information
Introduction: PAKISTAN2
Strategic Position
Pakistan occupies a position where it can act
strategically as a focal point between South
Asia, Central Asia and the Middle East.
Situated along the coastline of the Arabian
Sea and Gulf of Oman in the south, it is
bordered by Afghanistan and Iran in the
west, India in the east and China in the far
northeast. Tajikistan also lies very close to
Pakistan.
GDP3 4
Pakistan has been growing rapidly as a
developing country5 6 7 8. With the recent
changes, where variety of economic reforms
were being introduced, it’s economy which
was originally a semi-industrialized has
grown with a very steady momentum and
stronger commercial outlook especially in
the manufacturing and financial services
sectors9. The framework of Pakistan’s
economy has changed greatly where
agriculture used to be the major contribution
and now it has shifted its focus towards a
stronger service base. Agriculture accounts
about 20% of the GDP, while the service
sector accounts for 53% of the GDP10. In
addition, foreign investments have entered
and made significant impact on areas like
telecommunications, real estate and energy11
12
. Other important industries such as
apparel and textiles (accounting for nearly
60% of exports), food processing, chemicals
manufacture, and the iron and steel
industries13 have also demonstrated more
MARKETING MANAGEMENT 2010
Exhibit 1: Map of Pakistan
Source:
http://www.lonelyplanet.com/maps/asia/pakistan
/map_of_pakistan.jpg
positive signs. Further, forecasts have shown
that in 2010, Pakistan economy would grow
at least up to four percent and could even
grow more with strong international
economic recovery14.
Political Ties15
Pakistan and the UAE have developed and
enjoyed a very close bound relation through
their deep-rooted cultural affections, shared
same faith (Islam) and traditions, as well as
their geographical closeness and identity of
interests. These relations can be traced back
to UAE's formation in 1971, where both
countries’ bilateral relations and mutual
beneficial cooperation have progressed
steadily16 and they have seen evolved in
many projects and shown co-operation in
various related fields. Moreover, UAE has
emerged as one of Pakistan's major
economic and trading partners.17
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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

2.2 Strategy Definement

 Corporate Approach
Arising questions like, “Which businesses should KHI Techno Park focus on?”, “Is this the right
business?” or ”What sort of businesses synergy do these businesses create or add to the
competitive advantage of the corporation as a whole?”

Exhibit 2: Corporate Strategy

Exhibit 2 illustrate as to how the Park could group or cluster its businesses by breaking it into three levels.

 Strategic Business Unit (SBU)

The Park will need to create and focus on a business strategy where it could incorporates either
cost leadership or differentiation in order to achieve a sustainable competitive advantage and
long-term success in its chosen markets or industries. Alternately, to achieve a higher growth and
profits, using business concept like the Blue Ocean Strategy18 19 is highly recommended as this
could help the company to break the value-cost tradeoff and at the same time pursuing both
differentiation and low cost.

2.3 Governmental Influential over Dubai Internet City's20 Operation

The Government of Dubai has always been an influential figure in the development as well as
the overall operational in relation to DIC. In an interview 21, His Highness Sheikh Mohammed
bin Rashid Al Maktoum22 has mentioned with the Vision 2010 plan, it has navigated and brought
emirate on the next level in terms of shaping the overall economy.

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2.4 Market Segmentation

Karachi
Karachi is the largest city, main seaport and A survey was done by World Bank on
financial and commercial capital of February 2007, identifying Karachi as the
Pakistan. The city is also the premier centre most business-friendly city in Pakistan24.
for banking, industry, and trade. Karachi is
also home to Pakistan's largest corporations
involving those in textiles, shipping;
automotive industry, entertainment, the arts,
fashion, advertising, publishing, software
development and medical research [refer
Exhibit 2 & 3]. Karachi was ranked as a
Beta world city23, alongside with its status as
a major port and the country's largest
metropolis. It account for a major share of
Pakistan's revenue. Exhibit 3: Market Analysis

Industries:
Automotives25 Media Iron/Steel
Advertising/Publishing/Public Relation Medical Research Shipping
Banking/Insurances/Investment/Financial Service Sector including
Service26 Oil and Gas27 Tourism
Electronic Power/Energy Apparel/Textiles28
Engineering Pharmaceutical/Healthcare Transportation
Entertainment/Arts/Fashion/Record Software/Hardware
Label Development Telecommunication29 30
Information Technologies31 Securities Trading
Food Processing Chemical Manufacturing Real Estates
Exhibit 4: Industrial Table

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

 Persona Framework: 3 Target Customer Segments

Persona 1:
Nandini Oberoi aged 37, a Pakistani born and raised in America moved back to Pakistan three
years back. A mother of two young girls aged 5 and 7, is a well respected businesswoman, own a
textile company and President of Women Entrepreneurship32 Society.
Despite her busy schedule, she always makes a point to wind down and relax with tranquility of
a luxurious spa. It is also her favorite place of meeting up with all her business associates.

Persona 2:
Abdul Latiff single, aged 34 is the Director of Sales in a telecommunication corporation. Travel
quite often for business meetings. A computer savvy and love collecting the latest gadget that is
introduced in the market. A fitness enthusiast and loves to workout at least four times a week.

Persona 3:
Ali Al Rais aged 46, an expatriate who has been living in Pakistan for the last ten years with his
family. Working as a HR Regional General Manager in an Oil and Gas industry. In between
breaks, Ali enjoy playing a game of chess, catching up with his acquaintances over a cup of
coffee after a long day of work and a game of football on his leisure time.

 The segment which has the most potential value

According to one of the research done, it has shown that women entrepreneurs/workforce did
make a significant amount of contribution in the developing of Pakistan economic33 34. I would
fully agree that by tapping into this potential segment would be the most valuable.

 Why choose KHI Techno Park?

The enticing benefits which are offered by KHI Techno Park, is hard for one to resist upon. The
official website created will be effortless and in simplicity way where information contains are
very useful from new accounts to current ones. Navigation within the site is made easy with its
step by step instruction from ease ordering to new signs up. Value added pricing could either be
custom made to suit individual or partners could simply choose from the array bundle up prices
listed in the costing catalog and all these with just a click of a button. The speedy service will be
return within 12 to 24 Hours depending on the urgency of the issue and this assurance will draw
the trust on the reliability of the service that will be delivered by the new Tech Park. In addition,
the Park will be fitted with variety of amenities, from fully equipped gym to world class spa,
bistro, cyber café, travel desk, day care centre and many more.

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2.5 Competitive Analysis

 Direct and Indirect competitors for each persona.

Direct Indirect

Persona 1 another Tech Park Spa/Beauty Centre

Persona 2 another Tech Park Gym

Persona 3 another Tech Park Bistro/Coffee shop

 Competitors’ strengths and weakness

Strengths S Weaknesses
 Global Reach e.g. Having
branches in some countries.
 Low Cost Producer
 Leading Positions
 Product Innovation
 Strong cash flow
 Technological skills
 Production quality
W
 High turnover of employees
 Price Discrimination
 Hidden costs
Internal
 Poor Management style
 Location of offices on the Factors
outskirts area
 Weak brand of awareness
 Low customer retention
 Absence of important skills
 Poor access to distribution
 Unreliable service

Positive Negative

Exhibit 5: Competitors’ Strengths and Weakness Chart

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

Even despite, the competitors hold the leading position but due to the poor management and
weak brand awareness this could serve as an advantage to KHI Techno Park to concentrate on
this area to attract the customers.

Spa/Beauty
Bistro/Coffee
Centre
Shops
Location

Gym

Other
Tech
Parks

-
+ Brand Awareness -

Exhibit 6: Positioning Map

2.6 Unique Selling Proposition

“It is with pride to service our partners with great attitude which lead towards our highest
commitment.”
Mission Statement

 The new Business Park’s competitive advantage(s).

The forthcoming KHI Techno Park which will be built on a 300-acre piece of land is the first
Business Park to launch with multi-functions and a state of art facilities, aiming towards the right
targeted groups with the right attitude through various channels and concepts.
It is strategically located in the prime business district where it could connect with all business
networks.
 To what extend is it sustainable?
With over 24 industries along with an aggressive campaign clip in hand; KHI Techno Park could
go a long way in maintaining its uniqueness branding and clienteles.

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

MARKETING MIX

3.1 The Traditional 4Ps

The whole idea of using the Marketing Mix is to increase the competitive advantages of the
organization. Variables can be mix and match or controlled in order to best satisfy customers in
the targeted market.

The traditional marketing mix model portrayed in below Exhibit 7 is used to generate a positive
response in the targeted market by blending these four items in an optimal manner.

“Giving the right product (service) in the right place, at the right price, and most important of
all at the right TIME!!”

What is understood by the above statement? It is simple! As a marketer, it means to create a

product (service) for a specific group of people, put it on sale some place which these same
people will visit regularly, price it at a level where it matches the value; and do all that at a time
they want to buy. Perfect solution!

Exhibit 7: Traditional Concept of 4Ps

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

 Product: Services propose by the new Business Park

Product can be physical or service offered to a consumer. The elements to consider during
product decisions include areas such as function, appearance, packaging, service and warranty.

Brand name ~ Quality ~ Scope of Service line ~ Warranty ~ Packaging ~ Functionality

“What does the customer want from the product/service?”
“What needs does it satisfy?”

Persona 1: A discount membership to the luxurious spa bundle with the whole package would
have been great.

Persona 2: A one stops shop of electronic devices.

Persona 3: Manpower services include hiring of workers and visa handling issue.

 Price: Explaining the Business Model

When deciding on pricing, things such as the profit margins and the probable pricing response of
competitors should be taken into account. Pricing should not only include the list price, but also
discounts, financing, and other options such as leasing.
1. Pricing Strategy

Different pricing techniques that could be use to aim at different market segment:

a. Mark-Up Pricing e. Going Rate Pricing

b. Target Return Pricing f. Sealed Bid Pricing
c. Perceived Value Pricing g. Psychological Pricing
d. Value Pricing h. Promotional Pricing

2. Lifetime benefits
3. Classify the goods and services (i.e., GST taxable supply, GST free or GST inclusive)
4. Leasing Option - Price variance in term of rental of office space (e.g. permanent or
temporary)
5. Discounts/Promotion for new account
6. Bundling
7. Payment Terms/Mode of payment/Financing Options
8. Demand
9. Cost plus margin

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

 Place: Distribution Channels

Distribution decisions are those that are correlated with the channels of distribution that serve as
a means in getting the products or services to the target customers. It also includes market
coverage, channel member selection, logistics, and levels of service.

“How can the product/service be distributed?”

“Where can the customers look for the product or service?”

a. Through internet
b. Sending catalogue to the companies
c. Engage a sales team/force to promote the product/service
d. Organize trade fairs/exhibitions
e. Telemarketing
f. Advertising

 Promotion: Using the 6Ms to describe the Primary Marketing Promotion

Advertising and Promotional Strategies are methods used and along with the cost of bringing the
product/service to the attention of the prospective or potential customers.

Further, these costs could even be higher compare to the product price; hence a break-even
analysis (ROI) should be performed when making these decisions. At the same time, it could be
useful to know the value of a customer in order to determine whether these additional customers
cost are worth acquiring on them.

1. Mission

The key objective of this promotion is to Build Awareness - Initial promotional efforts will be a
good kick start in establishing an identity. Marketer will need to critically focus on promotion as
this is one of the driving forces to reach the targeted customers effectively and at the same time
announcing to the entire market of their brand and services and what can be offered.

2. Means
To create and work around with a Pre-Determined ROI is easy but in reality speaking there is no
guarantee that the pro forma ROI indicator will show how successful the program is. But one
could determine the success of the product/service if does bring in enough new/repeat business
which could be in term justify with the expense.

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

3. Message
The Unique Selling Proposition (USP) is simply helping to define the Techno Park and setting it
apart from other companies by their service, quality and price structure.

4. Moment
“Where and when is the best time can the marketing messages be promoted and send across
to the target market?”
Timing is extremely critical when delivering the products/services to the customers or verse
versa. Reaching the exact audience at the right moment will helps to connect to the real
customers for the business. The best moment to interact with the potential personas are during
their “idling” or to be more precise “waiting” time as these are the best opportunities to catch
their attention.
5. Media
How to reach the audiences? By using the below methods:
a. Television d. Cinema
b. Radio e. Outdoor Media - Billboards
c. Newspaper/Magazine/Directory

6. Measurement

In the usual context, traditional techniques such as profitability, market share and profit margins
are tools used to measure the success. But as time progress, the transitional process will need to
be shifted to more customers focused. Hence, measures such as customer acquisition costs,
conversion rates, retention rates, customer sales rates, loyalty measures and customer share
within a brand will be the measuring tools of success.

Exhibit 8: 6Ms

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

FINANCE AND RISK

 Revenue contribution towards growth of Dubai Internet City

Base on the information provided, 180 companies had signed up as tenants, including world-
renowned companies such as Microsoft, Oracle, HP, IBM, Compaq, Dell, Siemens, Canon
Logica and Sony Ericsson.

Exhibit 9: Revenue Review

Given the limited amount of information presented in the case study, the revenues calculated
are estimates and base on the following the assumptions.
Assumptions:
1. Targeting to attract 200, 400 or 600 businesses to use Dubai Internet City in Pakistan (KHI
Techno Park).
2. Offers two different service options: 1 month or 1 year lease option for new businesses.
3. Revenue is calculated based on the projections, number of businesses that will subscribe to
the various service options.
4. Gross Profit is calculated before deducting expenses incurred by DIC (using FY2004 Cost of
Revenue figures). These figures are indicative as DIC may have experience an increment or
decrement to its annual operating Cost of Revenue in subsequent financial operating years.
5. Figures are based in AED (United Arab Emirates)

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

 Additional Consideration – 3 main risks

In additional, there could be some potential situations (refer below) where the Techno Park may
face while attempting its plan. Care and consideration must be taken on these adverse effects.
External Force
a. Supply chain problem d. Legal environment
b. Competitors’ reaction e. Societal changes
c. Technology development/ f. Economic issues
advancement g. Governmental concerns

Internal Factors
a. Loss of funding sources
b. Loss of key personnel
c. Production problem

Research Limitation
Marketers may experience difficulty in sourcing out quantifiable data to justify and support
certain subjects/findings. Additional methods, for example, questionnaires and surveys may be
required to perform data gathering to ensure that the information is relevant and up-to-date for
Dubai Internet City - Marketing Plan.

 Conclusion

The current research for Dubai Internet City - Marketing Plan was not designed to evaluate
factors related to financial earnings. If the company decides to take on the project of building a
Techno Park in Karachi, taken together the purpose of this marketing plan is to perform a
feasibility study through a situational analysis and strategy and understanding; market
segmentation, competitive analysis, unique selling proposition and market mix which gives us an
opportunity to evaluate Pakistan (as a possible location) for Dubai Internet City to deliver a
techno-park service to its current and potential clients.

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FINAL TERM PROJECT MARKETING MANAGEMENT 2010

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