Sonnamera UAE Market Entry Strategy

Sonnamera UAE Market Entry Strategy Student’s Name Institutional Affiliation Sonnamera Market Entry Strategy Introduction Sonnamera is an Asian food factory that deals with the manufacture of canned vegetables and fruits. The organization is looking to expand its distribution into the United Arab Emirates. Their distribution hub is based in Singapore and is strategically located to access markets in the UAE, European Union, and other global markets. The UAE market provides a suitable market for the expansion Sonnamera. Some of the critical factors that are considered when building an effective entry strategy include selecting the first market to access. The UAE is a political federation of 7 states: Abu Dhabi, Dubai, Umm al Qaywayn, Sharjah, Fujairah, Ajman, and Ra’s al-Khaima (European Commission, 2012). While the federal government oversees trade policies of the federation, different states have different statues and policies governing their markets (Akoum, 2008). However, since Sonnamera seeks to export canned foods and agricultural products, which contribute less than one percent of the market, entry into the industry is likely to be easy. Other elements of entry that the brand needs to consider include product position and choice of retailers and distributors. Since the UAE is now among the 20 most powerful first world countries, the product will target exotic consumers. The UAE is the world’s seventh-largest holder of oil and natural gas reserves. As such, the economy of the UAE is one of the most resilient economies in the world, despite the global economic trends that are highly influenced by changes in demand for energy. During the economic recession in mid-2014 and disruption of the economic system in the Gulf region due to the decline in market prices of fuel, UAE continued to register exceptional economic growth regionally and internationally (Zaremba & Szczygielski, 2019). The government has laid a long-term strategy to further economic growth is establishing the federations intention to diversify the economy and reduce reliance on fossil fuels and interest of global energy conservation. This has led to the dedication of funds in research to expand industries, assimilation of smart technologies, and the development of modern infrastructure to attract investment in different sectors (The UAE Defense Industry ICD Research, 2011). However, the exceptional culture interlinked with Islam and Muslim religion needs to be considered in product positioning and marketing. UAE Economic Analysis As established, the federal government launched the UAE Vision in 2010 that aims to integrate sustainable development goals (SDGs) before 2021. The vision comprises of\ four founding components: destiny, responsibility, prosperity, and knowledge. The vision has promoted the incorporation of SDGs in health, economy, education, government services, infrastructure, and housing across all the seven states. Since the UAE is making an effort to be integrated into global efforts unlike the federation’s conservative tradition, this will lead to more friendly trade regulations. This is intended to improve the countries’ performance in a range of international indicators compared to other participants globally. Notably, the emirates built t...