All Shave in Saudi Arabia I. Problem Statement All Shave company sold a majority of interest of its company to Almin family in Saudi Arabia and from then, All Shave’s sales have dropped constantly. II. Underlying Issue Should Almin family accept the Mike Lacey’s aggressive promotional strategy or instead increase its products quality? III. Relevant Facts A. Company History: All Shave 1) Until three years ago, the company had been successfully exporting razors and blades to Saudi Arabia 2) The All Shave Company was sold to the Almin family due to possiblefuture import restrictions. ) The contract with Almin family was specified that the Almin family would “actively promote All Shave products”. 4) Mike Lacey, All Shave’s Middle Eastern Manager, believes that Shave’s previous success has made by strong promotion. B. Company History: Almin Family 1) The Almin family is a one of leading company in Saudi Arabia’s steel industry. 2) The Almin family acquired the All Shave Company to expand their market field. 3) Mustafa Almin, the head of Almin family, believes that a good product was its own best advertisement. ) The Almin family claimed that the company was still making reasonable profit. C. Marketing Mix: 1) The All Shave products were being sold from the Almin Warehouses.. 2)The advertisement was limited to a few newspaper and posters distributed by the industrial sales reps. 3)No additional salespeople had been added for All Shave promotion. D. Competitors: 1)Mike Lacey argues that the present results achieved by their competitions are made by strong promotion. 2)Mustafa Almin did not agree and claimed that the competitors’ achievement is made by high quality products. )Mustafa feels that to approach to the local market is the little advertising and long participation. IV. Strategic Alternatives A. The Almin family can accept Mike’s suggestion and increase promotional activity and advertisement to increase the sales. B. The All Shave Company can trust on local company, Almin family, and make higher quality products. C. The All Shave Company can take back the company and rule as they would do with their other company however, the restriction in import could be crisis. D.
Do more research: The All Shave Company could do more extend researchabout the local’s business culture and the strategies in the same field competitors. E. Do Nothing V. Criteria As Mustafa Almin said, the Saudi Arabian market is all about the quality of the products. He argued that people will go for the best quality products not the best advertisement product. VI. Selected Alternative and Why Alternative Strategy B seems to be the most effective alternative choice. To become a big part of local market, localize is main point.
The local’s favor will not change in short time therefore; the company needs to adjust their products’ aspect and the market strategy to the local market. The Almin family has been in local market with constant success. The Almin family understands the business culture and had proven before. After all the All Shave Company wants to make higher sales and maximize profit. In order to do that, the All Shave needs to accept the business culture in Saudi Arabia and product high quality products even though it might take longer period.