TABLE OF CONTENTS Introduction Facts and Figures Country Selection Theory PROS and CONS PESTLE Analysis Target Market Analysis Market Entry Competitive Analysis Service Plan Distribution Advertising and Promotion SWOT Conclusion References
INTRODUCTION BaseCamp International is a company that promotes cross-cultural learning activities that helps create global awareness, understanding between cultures and provides the platform for positive change. Some of the programs offered by BaseCamp are internships, languages, student groups and volunteers programs; It also offers hosting services in the following countries: Costa Rica, Nicaragua, Ghana, Ecuador, Peru and Nepal. BaseCamp International plans to set up business operations in Lebanon. The purpose of this marketing plan in to advise them about the market conditions of their target market.
INTRODUCTION CON’TBaseCamp International is a company that promotes cross-cultural learning activities that helps create global awareness, understanding between cultures and provides the platform for positive change. Some of the programs offered by BaseCamp are internships, languages, student groups and volunteers programs; It also offers hosting services in the following countries: Costa Rica, Nicaragua, Ghana, Ecuador, Peru and Nepal. BaseCamp International plans to set up business operations in Lebanon. The purpose of this marketing plan in to advise them about the market conditions of their target market.
Political System: Parliamentary Democracy Total Area: 10,452 km2 Languages: Arabic, English, French Religions: Islam, Christianity Population: 4.6 Million Urban Population: 86.6 % Population Growth: 1.7 % Workforce: 1.2 Million Literacy Rate: 88.4 % Currency: Lebanese Pound (LBP) GDP: $ 16.4 Billion Imports/Exports: $ 6.5 Billion/$711 Million Industries: Food processing, jewelry, cement, textiles, mineral and chemical products, wood and furniture products, oil refining, metal fabricating and others.
COUNTRY SELECTION THEORY Geographic, language and market similarities: It is easier, and therefore more likely profitable, for a Canadian firm to do business in The United States than in a distant, linguistically and culturally distinct nation. Product Adaptation: some products or services can be sold worldwide and some others need local customization. Language and cultural similarities also may lower operating costs and risks. Cost and resources availability . labor cost is a very big consideration. This must be balanced against the availability of competent and/or trainable Workers. Cultural forces: Attitude towards business, custom and religious belief, etc. Climatic Condition. Resource Availability: Labour, land, capital, materials. Political, economic and legal forces. Government regulations and risks. New products spread to similar countries first, but mature products are made by the low cost producer.
LEBANONPROS CONS Lebanon is very open to trade and Foreign business people who have foreign investment. settled in the country are annoyed Its economy is a free market economy. by corruption problems, the relative Non-control of foreign companies nature of arbitration in the issuing of capital licenses, customs procedures that are too complicated and the partiality Trade movement is also an undeniable of justice. advantage. Lebanon ranked 127 out of 178 Very educated and qualified workforce. countries worldwide in Transparency Good standard of living . Internationals most recent Corruption Perception Index. Limited investment restrictions. Foreign companies have complained Today there are considerable about impediments such as arbitrary investment opportunities in the field of licensing decisions, complex reconstruction of basic and productive customs procedures, archaic infrastructures, in construction and in legislation, an ineffectual judicial supermarkets. system, high taxes and fees, high Strategic geographical location. telecommunications and power charges, varying interpretation of Moderate Tax Rate. laws and a lack of adequate New and expanding infrastructure protection of intellectual property.
TARGET MARKET ANALYSIS Psychographics Demographics AdventurousMale and Female Geographics Active LifestylePrimary Age 16-26 Involved with CommunitySecondary Age 27-45 Worldwide Willing to lend a helpingModerate/Student Income hand“Budget Traveller”
The Lebanese economy has improved constantly over the lastMARKET ENTRY years, making Lebanon one of the regions top performers in terms of economic growth. Lebanon has a free-market economy and a strong laissez-faire (let do) commercial tradition. The government does not limit foreign investment; It is an environment in which transactions between private parties are free from state interference, including policies, taxes, tariffs and enforced monopolies however, the investment climate suffers from red tape (rigid conformity to formal rules that is considered redundant or bureaucratic), corruption, arbitrary licensing decisions, complex customs procedures, archaic legislation, and weak intellectual property rights. The Lebanese economy is service-oriented; main growth sectors include banking and tourism. The Government has generally followed a policy to encourage foreign investments. Full foreign ownership of businesses is free, subject to a very limited number of restricted activities such as exclusive commercial agency in relation to which Lebanese majority ownership is prescribed.
• Strategic Geographical Location: Lebanon is uniquely KEY positioned at the crossroads of Africa, Asia, and Europe.ASPECTS • Free Market Economy: Free enterprise and private initiative are the drivers of the Lebanese economy. OF • Liberal Financial Environment:MARKET With a free foreign exchange market, full currency convertibility policies, no restrictions on the inward or outward ENTRY movement of capital, and banking secrecy, Lebanon is truly ideal for conducting business.DECISION • Developed and Non- Discriminatory Legal Framework: Lebanon offers a well- developed legal framework that protects private property and grants Lebanese and Non-Lebanese equal rights.
Unique Living New and Environment Expanding : Infrastructure Qualified and : Thousands of Competitive years of history, With state-of-the-art optimal climatic Workforce: telecommunications conditions, a very Lebanon’s , a modern rich culture, and a Moderate workforce is well electricity network, vibrant nightlife Tax Rates: educated and multi- a new airport, justify Lebanon’s talented. Skilled expanding port “Pearl of the East” With maximum surname. tax rates of 15% labor is widely facilities, and an for companies available, yet at ambitious road and 20% for moderate fees. rehabilitation individuals, Leba program, Lebanon’s non’s fiscal infrastructure is quickly becomingKEY ASPECTS charges are one of the best in among the most OF MARKET moderate the region. ENTRY worldwide. DECISION
BaseCamp International is a firm initially established locally and wants to be expanded into foreign markets in response to foreign demand. The followings action should be taken during its entry and growth in their target market. Introduction Growth Maturity Decline• BaseCamp • Is this stage the • At this period the • As sales decline, International main objective strong growth in the company will should seeks to should be to build sales may have the following build product brand preference diminish. options: Revitalize awareness and and increase Competition may the product by develop a market market share. appear with similar adding new for the product. products. features and • Action to be taken finding new uses. at this point is to Reduce costs and defend market continue to offer it, share while possibly to a loyal on Introducti Growth Maturity maximizing profit. niche segment. Declin Discontinue the e product or selling it to another firm. Sales Product Cycle Theory Time
In-Direct Competition MARKET ENTRY Direct CompetitionAl-Nazih Pension AMIDEAST Exchange program between Americans and LebaneseHostel in Beirut, capital of Lebanon Provides education, professional training, exchange andOffers the best budget accommodation for all backpackers and development programstravellers on a budget 20,000 visitors each yearAdvertising Strategies- Travellers can find Pension Al-Nazihbusiness cards in many budget hotels and markets around the Advertising Strategies- AMIDEST has a few billboards acrossMiddle East Lebanon and a few in the United States, however they mainly stick to press releases and social mediaMarket Entry Strategies- Joint Ventures- partners with otherhotels in Lebanon share resources, but mainly because hotels Market Entry Strategies- Joint Ventures in United Statesin Lebanon usually have strong (FulBright) they also Competitiv e Analysis Global Competitors Hostelling International - Formed in 1909. It is the only global network of national hostel associations -Has more then 90 Youth Hostels in over 90 countries - They thrive on their quality and variety of accommodation - Advertising Strategies- Newsletter that you can sign up for, and a bit of social media Market Entry Strategies- Joint Ventures with other hostels so that they can use those political affiliations
SERVICE PLANHOW THE FIRM WILL ADJUST THEIR OFFER IN THE MARKET PLACE?Considering that the target market ofBaseCamp Internatioal is locatedworldwide. the company could keepthe same offer strategy. What wesuggest is to adapt their products orservices to what Lebanon can offerand be appealing to the targetmarket.Some of the adaptations suggestedare: Language programs: Promote languages courses in: Arabic, English, French. Hostels: advertise lodging in attractive cities of Lebanon. To Adapt volunteers programs toThe mode of International service is “Commercial Presence” Lebanon needs.
Basecamp International will use an integrated distribution method because we will be making an investment in a foreign market. But we would like to also use channel relationships, perhaps with The United Nations Volunteers. This way we would already have political affiliations, which would help us avoid conflict with corrupt government officials. We could perhaps set up our volunteers to do work for them and we could house some of their volunteers in return.
ADVERTISING AND PROMOTION STRATEGY• As advertising strategy we proposes a campaign through social media: Facebook, Twitter,and company’s website, developed to communicate ideas about BaseCamp products and services to potential consumers in the hopes of convincing them to buy those products and services.• Even though a small business like BaseCamp has limited capital and is unable to devote as much money to advertising as a large corporation, it can still develop a highly effective advertising campaign. The key is creative and flexible planning, based on an in depth knowledge of the target consumer and the avenues that can be utilized to reach that consumer.• As a business begins, one of the major goals of advertising must be to generate awareness of the business and its products. Once the business reputation is established and its products are positioned within the market, the amount of resources used for advertising will decrease as the consumer develops a kind of loyalty to the product. Ideally, this established and ever-growing consumer base will eventually aid the company in its efforts to carry their advertising message out into the market, both through its purchasing actions and its testimonials on behalf of the product or service.
MALE/FEMALE USER RATIO ON FACEBOOKIN LEBANON & AGE GROWTH
Strengths Weakness- Financial Environment- free foreign exchangemarket, no restrictions on the movement of - Highly Corrupt: Although there are low taxes,capital government can set up road blocks, no questions asked- Low tax rates for companies - Wars in Lebanon: Although Syria pulled pulled- New and expanding infrastucture: new airports, their troops out of Lebanon there is still a senseexpanding port facilities, and well established of discomfort and mistrust, may make peopletelecommunications Lebanon can expect to see a weary to visit Lebanonrise in tourism - Constant wars took a toll on some of the city’s in- Unique environment: historic sites, rich culture, Lebanon and may deter tourists from visitingbeautiful beaches, and unbelievable mountains some of those places.make Lebanon a beautiful place to visit SWOT Threats - Society may have a bad perception of Lebanon Opportunities because of recent turmoil- may make tourist hesitant to stay in Lebanon for a long period of- High Tourism Rates rapidly growing and timecontributes over 20% to Lebanons GDP - Safety and security concerns: The Department- Regaining image of “Paris of the Middle East”, of State in the U.S. urges U.S. citizens to avoid alltourists may want to explore travel to Lebanon. This may force tourists to stay- Opportunity to gain a massive reach because it away from Lebanon and in return stay away fromis such a unique group of services amalgamated BaseCampunder one roof. - Rising conflict between Israel and Lebanon may be unsettling to tourists travelling to Lebanon and may decided to hold off on travel plans.
CONCLUSIONLebanons economy and markets are best described as a private and liberaleconomy activity and openness to abroad with perfect capital and labor mobility. Theprivate sector highly contributes to aggregate demand it is a well-diversified sectorthat covers the totality of economic sectors and is a major pillar for growth andrecoveryThe strategic position of Lebanon, its mild climate and natural beauty, consisting ofsnow-capped mountains, valleys and the Mediterranean Sea, make it a naturaltourist attraction. Apart from its privileged geographical and natural situation,Lebanon benefits from qualified and experienced human resources, investmentfreedom and political stability.Based on the current situation of Lebanon we consider It would be a good idea forBaseCamp International to expand their business and offer as part of their portfoliothe attractiveness of having a rich cultural experience with their adventurous targetmarket
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