INTERNATIONAL MARKETİNG MANAGEMENT
WORKED OUT BY HİLAL İSOTÇU
AHMET SADAT
EROL CAN KULUK
FARUK MERMER
ENTRY OF
TURISH BATH
İNTO DUBAI
ABOUT DUBAI Dubai is a city and emirate in
the United Arab Emirates known
for luxury shopping,
ultramodern architecture and a
lively nightlife scene. Burj
Khalifa, an 830m-tall tower,
dominates the skyscraper-filled
skyline. At its foot lies Dubai
Fountain, with jets and lights
choreographed to music. On
artificial islands just offshore is
Atlantis, The Palm, a resort with
water and marine-animal parks.
ABOUT DUBAI
Dubai constantly competes with itself,
trying to magnetize tourists to a
dream-like world of attractions. This
drive is clearly visible in its tourist
attractions, landmarks, shopping
centres, parks and hotels. Although it
strictly safeguards its traditional
Islamic roots, it allows space for other
religions, a rare quality in the
conservative Arab world. Thankfully, it
has been successful in shielding itself
from extremism, making it one of the
safest places to visit in the Middle
East today. Dubai has emerged as a
cosmopolitan metropolis that has
grown steadily to become a global
melting pot as well as a business and
ABOUT DUBAI
Area: 4,114 km²
Founded: June 9, 1833
Government: Type municipality of a
monarchy
Population: 3.331 million (Jul 2019)
GDP per capita: 43,004.95 USD
ABOUT HAMMAM TURKISH BATH & SPA CENTER
A Turkish bath is a place of public bathing
associated with the culture of the Ottoman
Empire and more widely the Islamic world.
Hammam Turkısh Bath Center has faunded
in Istanbul at 1850. This traditional center
work for make their guest more relax and
happy since 1850.
There is one place in the Turkey. It is in
Sultanahmet Istanbul.
Qualified staff are working to make people
happy with the massage, face mask and
scrub service they offer.
In the facility guests can buy fin bath,
traditional bath, massage, foam bath, face
mask and massage services.
PESTEL ANALYSIS OF UNİTED ARAB EMİRATES
POLITICAL FACTOR
The United Arab Emirates is a constitutional federation. It
consists of seven emirates i.e. Abu Dhabi, Ajman, Dubai,
Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. Each
emirate is governed by a ruler, while the Federal Supreme
Council, highest constitutional authority of the Emirates,
consists of all the seven rulers. Abu Dhabi is the capital of the
UAE.
The UAE is considered a big power in the Middle East and has
considerable influences at global stage as well. It maintains
very good diplomatic and trading relations with the United
States, Saudi Arabia, India, China, and many other countries
in the region and beyond. However, its participation in the
Yemen war has strained its relations with Iran, a major
regional power.
It was also a key participant in the blockade of Qatar
beginning in 2017 (Encyclopaedia Britannica, 2019). It is
worth noting that the UAE has recently taken initiatives to de-
escalate the critical situations in the Middle East, particularly
its tensions with Iran.
PESTEL ANALYSIS OF UNİTED ARAB EMİRATES
ECONOMICAL FACTORS
The UAE is a member of a number of international economic and political
forums e.g. the UN, World Bank, IMF, Arab League, OIC, OPEC, and GCC. It
is the 27th largest economy in the world. Its GDP in 2018 was 414.18
billion US dollars .The GDP growth rate averaged 4.34%
Crude petroleum, refined petroleum, gold, diamonds, and petroleum gas
are the top exports of the UAE. Its top export destinations are India, Japan,
China, Oman, and Switzerland.
Gold, jewellery, cars, diamonds, and refined petroleum are the top imports
which the country imports mostly from China, India, Germany, the United
Kingdom, and Turkey .
The UAE is one of the richest countries in the world in terms of per capita
income. It has made remarkable economic progress over the years and the
factors that have mostly contributed to it are abundant natural resources,
economic diversification, innovation and inflow of foreign direct investment
(FDI). According to the World Investment Report 2019, the total FDI
received by the country from 2016 to 2018 was 30.4 billion US dollars.
However, the UAE’s over reliance on the petroleum sector is a weakness.
Generally, companies and individuals in the UAE do not pay any taxes on
income or wealth. However, major oil and gas companies, and subsidiaries
of foreign banks are liable to the corporation tax at a maximum rate of
55% .
PESTEL ANALYSIS OF UNİTED ARAB EMİRATES
SOCİAL FACTORS
The UAE is one of the most liberal countries in the Gulf,
though it is conservative traditionally. Particularly, Dubai is a
very dynamic emirate and a flourishing international
business centre. It is very modern and well-integrated with
the rest of the advanced world. It grew and evolved at a
rapid speed in the last two decades.
The total population of the UAE is approximately 9.8
million. Emirati nationals only constitute 20% of the total
population, making the country home to one of the world’s
highest percentage of immigrants. Most of the immigrants
living and working in the UAE are from India, Pakistan,
Bangladesh, the UK, the USA, Iran, Canada, China,
Philippines, South Africa, and Nepal. In fact, according to
some sources, over 200 nationalities live in the UAE making
it one of the leading cosmopolitan hubs in the world.
The life expectancy for men is 76 years and 78 years for
women in the Arab Emirates. Arabic is the major language,
while Islam is the major religion in the country. The UAE is
the 5th richest countries in the world Emiratis are very social
people, and families love to live together. They highly
advocate and practice religious, tribal, and traditional ties
and values of cooperation and care.
PESTEL ANALYSIS OF UNİTED ARAB EMİRATES
Technological Factors
The Emiratis are very keen on using social
media. They, on average, spend 2.56 hours on
social media daily. Approximately 82% of the
UAE’s population has profiles on Facebook
while YouTube’s penetration also stands at
82%. Other notable social media in use are
Twitter, LinkedIn, Pinterest, Instagram, and
Tumblr.
The UAE introduced the eDirham card in 2001
to facilitate payment for government and non-
government services. The government has
invested heavily in space science, life science,
nuclear science, and ICT over the years. In
fact, the UAE is currently the most attractive
ICT market in the Middle East.
PESTEL ANALYSIS OF UNİTED ARAB EMİRATES
Environmental Factors
The UAE is one of the most visited countries
in the world. Perfect balance between
traditional religious culture and modernity,
luxurious hotels, stunning shopping malls,
skyscrapers, crystal clear beaches,
historical ruins, indoor theme parks, and
versatile cuisine are some of the factors
that attract millions of tourists every year.
It is also worth noting that the UAE is
particularly safe for solo female travellers,
especially with hotels such as Dubai’s
Jumeirah Emirates Towers hotel and Dukes
Dubai dedicating female-only floors with an
all-female staff
PESTEL ANALYSIS OF UNİTED ARAB EMİRATES
Legal Factors
Due to the limited scope, the article offers
basic discussion on the UAE’s legal
environment. The UAE is a federal
constitutional monarchy. Its Labour Law
applies to all staff and employees
regardless of their nationalities. The
maximum working hours for an adult
employee is eight hours a day (48 hours a
week). However, it can slightly vary
depending on the types of business. As
mentioned above, the UAE is one of the
safest countries in the world with low
crime rates. It shows that rules and
regulations are applied very strictly in the
country.
PESTEL ANALYSIS OF UNİTED ARAB EMİRATES
Legal Factors
Investment Incentives: There are over 30 industry-focused
FTZs in Dubai that offer a combination of tax and business
incentives that are introduced to attract foreign investment. The
incentives usually include tax holidays for a guaranteed period.
For example, most FTZs offer a tax holiday of 50 years. The
extension of 100% foreign ownership is also common, as is the
suspension of any Customs duties within the free zone and the
provision of “one-stop shop” administrative services.
Withholding Taxes: There are no withholding taxes in the UAE.
Capital Gains Tax: There is no capital gains tax in the UAE. For
taxpaying entities, capital gains are taxed as part of business
profits.
VAT: From January 1, 2018 VAT at a standard rate of 5% was
applied to most goods and services, with some goods and
services subject to a 0% rate or exempt
Foreign Exchange Controls: There are no exchange controls on
the remittance of profits or repatriation of capital, and there are
virtually no restrictions on foreign trade.
COMPETİTİVE ANALYSİS
Substitutes (low):
The Spa and sauna centers are the
potential substitutes but it is not like
Turkish bath.
Turkish bath gloves are used in the
hammam. So human cleaning comes
to the fore in the Hammam Turkısh
Bath & SPA center.
In Turkish life, Turkish baths have
become not only a place for bathing,
but also centers for health, social
and cultural events.
It is healthier than potantisal
substitutes.
COMPETİTİVE ANALYSIS
Rivals (low)
There are a few the
only competition in
United Arab
Emirates.
It is very easy for a
newcomer to enter
with the same
service.
COMPETITIVE ANALYSIS
Suppliers (LOW):
The bath house is a
bathing area containing
hot and cold water.
With low demand the
suppliers have a low
bargaining power.
BURAYI TEKRAR
GÖZDEN
GEÇİRMELİYİZ
COMPETITIVE ANALYSIS
Buyers (HIGH)
The quality of the service is
important to the buyers, and these
buyers come to Glory Design
frequent. This means that the
buyers in the industry are less price
sensitive.
Low substitute availability.
High quality of service.
New Entrants : (LOW)
Turkish Hamam are traditional
bathing places for Turks.
Low cost of service development.
Moderate cost of doing marketing
SPA AND MASSAGE DEMAND İN DUBAİ
People live or have been in Dubai
have high income. Dubai is known
as a luxury city. So people spend
much money to enjoy. There are a
few Turkısh bath & SPA center in
Dubai.
People go there twice per month.
They spend 70-90 dolar for a
standart paket. Actually women
perefrences more than men
preferences in this case. When we
looked ın social media account of
this centers, we notice that their
contect women and their skin care.
SWOT ANALYSIS
Strengths
Strategic location
Favorable tax regime
Relatively liberal society
High per capita income
Weaknesses
Innefective promotion
Most of tourist from nearby
Higher intervention of government
Low repeat visitors
SWOT ANALYSIS
Opportunity
The welfare level is high so there is no
problem in demand
There are encourge between Turkey and UAE
Mutual discount of customs taxes
It can be seen as an attractive activity as it
is a touristic area
Threats
Increasing competition
Consumer demands to alternative industry
in target market like Spa Centers.
Lack of funds for advertising
Bad privatization
SERVICES PORTFOLIO
TRADİTİONAL SPA & SKİNCARE CAFE AND FİN AND
TURKISH BATH MASSAGE RESTAURAN FOAM BATH
HAMMAM T
(DÜNYA
MUTFAĞI)
SEGMENTATION
Geographıca Demographi Behavıoural Psychograp
l cal hic
İn Dubai 18-55 years • Love Pay more for
(Tourist or old natural quality and
local people) thing luxury
• love Like spend
massage money for
• love luxury.
traditional
• love
explore
new thing
TARGETING
Young and middle aged people (15-50)
People be in Dubai
People who like traditional bath,
massage, sikncare
Paying more for quality and luxury
POSİTİONİNG
The positioning will focus on the
services
Hammam offers high quality services
with the highest quality expert staff in
a pleasant atmosphere, which makes
guests feel at heaven.
MODE OF ENTRY
Foreign Direct Investment : When
businesses from one country invest in
businesses in another one.
Easy entrance into the market
Transparent regulations
No tariffs and quotas
Higher profit potential
Stable economy
High selling potential
Law taxes for ınvestors
MARKETİNG MİX
Price : We will use
demand strategy with
a skimming price
strategy since our
services are luxury
and high quality.
We will focusing the
quality by skimming
price strategy.
We will focus on to the
society with the luxury
consumption habit.
MARKETING MIX
Promotion: We are planning to use ads
through popular channels such as TV, social
media (instagram, twitter, etc.), billboards. ..
Because this is the most efficient way of
attracting customers
Special services for membership cards
Sponsoring tennis tournaments ( The Dubai
Open one of the most popular tournaments )
MARKETİNG MİX
PROMOTİON ;