Required Market Information
Note that all information required in this section should be applied to each targeted market separately whether local, GCC or international (export).
Product
A full, clear description of product or products including size (or sizes), packaging as sold to customer and packing for wholesale distribution (if applicable), brand/trade name and uses, plus a brief description of the raw materials. If more than one product is to be sold, details of the product mix planned (including any changes in mix foreseen during the project life). State the proposed production program, year by year (for the first 5 years).
Samples, catalogues and/or photographs of the product(s), if available, shoed be provided. Detail the standards and specifications applicable in the target market(s) and state to which standard the product(s) will be made.
Supply
Details of current sources of supply of the proposed products to the Saudi market (and other markets, if exports intended) i.e., companies both manufacturing in Saudi Arabia and exporting countries. Capacity of supplying companies, their product range and estimated market share. Names, addresses, telephone, and fax numbers of local manufacturers and agents/distributors. Relevant information from the MCI licensed projects list should be included.
The objective is to paint the fullest possible picture of the current supply of products. Sources of information should be stated.
Demand
Demand in any one year is generally assumed to be summation of sales from local supply plus imports less exports (or re-exports). Where possible for historical demand, supporting evidence from recognized sources, e.g., Foreign Trade Statistics and OECD Export Statistics, should be included. State the sales history of the sponsor and/or the foreign partner (if there is one). Sales in the Kingdom and other markets are to be covered if exports are envisaged. If other methodologies are used to establish demand, these should be fully explained.
The history of demand over the previous five years, where possible broken down by the major regions of the Kingdom should be provided. Should sales be planned only in part of the Kingdom, then these particular areas should be covered together with the national picture. If there are different market and/or customer segments for the product e.g., retail and catering institutions. The percentage market breakdown should be included. Where relevant, similar data on export markets is required.
The future market size over the period covered by the feasibility study should be estimated, including market segmentation. The methods and assumptions underlying these estimates are to be explained (often more than one methodology can be justified in establishing future demand). The fund usually evaluate projects based on total GCC demand.
Marketing Strategy
A brief statement of the sponsors rationale for the project including definition of target markets, perceived strengths, and principal competitive advantages. What is the sponsors experience in this business or any related activities? (You can benefit from a separate document on Guidelines for Marketing Plans).
Pricing
Prevailing market prices per product/package in the Kingdom (and other markets where appropriate) and by main regions/cities if relevant. Ex-plant prices for locally manufactured and CIF prices for imports. Where applicable, retail and wholesale prices should also be provided.
State the sponsor proposed prices and pricing strategy should be described with details of distributor, wholesaler and retailer prices as well as margin structure plus sponsors historical prices if already selling in the targeted market.
Projected Sales & Market Share
In the light of the estimated market size, show the projected annual sales volumes until the project reaches its full, installed achievable capacity or licensed capacity. Also slow the projects estimated market share on a year by year (segmented, if applicable, by product and/or product group; units and value, customer/market segment and region). Where have sales already been made? What market shares have been achieved? And What were the sales volume and value for the past three years (for each product)?
Competition
What is the internal/external competition to the project, e.g., competitive brands, their price range & market share? How will competition affect the ability of the project to achieve the estimated market share? What are the strengths and weaknesses of individual competitors?
Distribution
How will the product(s) from the factory reach the ultimate consumer?
What distribution channels are proposed? How do these compare with those used by competitors?
What transportation methods, storage facilities and warehousing will be used? What is the cost, and how pays it?
Marketing Organization
Structure of marketing and sales department including staff numbers, qualifications, nationalities, experience and job descriptions (Including CVs of management if already recruited).
Sales Promotion/Marketing Support
Detailed plans for advertising and other sales promotion activities both to the trade channels and consumer/end-users. Planned budgets and percentage of these to estimated, broken down by type of media to be used. Rationale for the proposed plans and projected expenditure. Information to be provided on plans/budget for the company product launch.
Marketing Agreements
Copies should be provided of any marketing agreements (including Agency, Representation, Trade Mark, Distribution etc., agreements) which may exists or in draft whether hese be with local companies or foreign partners. Indicate the marketing input from such partners.
