Bangladeshi Argo food processor are exporting their product to different countries throughout the world.This report is about the prospect of food and beverage market in Saudi Arabia. Jalal Uddin Arif has prepared this report for Olympic Industries Limited.This report might be used as a reference of initiating marketing campaign in Saudi Arabia. The report also outline some actionable marketing and communication strategy through which Olympic can establish their image and brand over there.

1. Study Conducted by-
Jalal uddin Arif
Management Trainee
Olympic Industries limited
Export Department

2. Saudi Arabia, officially known as the Kingdom of Saudi Arabia (KSA), is the
second largest Arab state (the first is Algeria) and comprises the majority of
the Arabian Peninsula.
Jordan and Iraq are on its north border; Kuwait on its northeast; Bahrain,
Qatar and United Arab Emirates to the east; Yemen to its south; Oman to its
southeast; and the Persian Gulf and the Red Sea to its east.

3. Kingdom of Saudi Arabia(KSA) at a
Glance
Capital Riyadh
Government Unitary Islamic absolute monarchy
Area 2,149,690km2
Population 33,000,000
Official languages Arabic
Currency Saudi Riyal (SR)
Source -Wikipedia

4. Demography and
Psychographs of Saudi
Arabian Market

5. Demographic Facts about
Saudi Arabian Market
 Total Population 33,545,713 ( According to World Population
Review).
 Population Growth Rate is 1.45 %
 Immigrants Make up around 37% of the total population,
according to UN data (2017).
 The middle age group of 15-64 makes up the greatest share of the
total population - about 64.8%.
 The population is expected to reach 40 million by 2025.
 Urban Population is 84%.

6. Top 10 cities by Population
Name Population
Riyadh 4,205,961
Jeddah 2,867,446
Mecca 1,323,624
Medina 1,300,000
Sultanah 946,697
Dammam 768,602
Ta'if 530,848
Tabuk 455,450
Al Kharj 425,300
Buraydah 391,336
Figure-1

7. Major Nationalities and Their Residents in KSA
Nationality Residents
Indians 2,450,000
Syria 500,000 - 2,500,000
Pakistan 1,500,000
Philippines 1,500,000
Bangladesh 1,300,000
Yemen 1,000,000
Egypt 900,000
Indonesia 850,000
Myanmar 500,000 (Rohingya)
Sri Lanka 350,000
Nepal 315,000
Lebanon 300,000
Jordan/Palestine 260,000
Sudan 250,000
Turkey 200,000
Somalia 65,000 Figure-2

8. Opportunities in Saudi
Arabian Market
 The bakery products market in Saudi Arabia is estimated to grow at an
8.2% compound annual growth rate (CAGR) - Foodex Saudi Arabia.
 According to Frost & Sullivan Saudi Arabia food industry expected to
grow at 5.9% between 2016-2020.
 Food & Beverage market of Saudi Arabia predicted to be worth $18.2
billion by 2020.
 Frost & Sullivan noted that the food industry is undergoing major changes
as social media, the internet, changing consumer purchasing patterns,
and hectic lifestyles impact dietary habits.
 Saudi users are highly connected, spending an average of 5 hours online via
computer and 3 hours through mobile phone usage.

9. Opportunities in Saudi Arabian
Market.
 Saudi Arabia is the largest importer of food and agricultural products of the GCC
relying on imports for 80% of consumption needs.
 Growing diversification within the Saudi economy to reduce the reliance on Oil,
‘Vision 2030’.
 The number of pilgrims (Over 7 million) visiting Saudi Arabia is increasing each
year creating demand for food services.
 Becoming increasing reliant on foreign supplies to satisfy their food consumption
needs, currently 80% of food consumed is imported.
 Low level of local competition in the area of F&B can make it an attractive area to do
business for South Asian Countries.
 An affinity for quick packaged foods is being developed, sales set increase by 39% in
2021.

10. Huge Growth of Mass Grocery
Retail(MGR) in KSA
Figure-3

11. Gulf Cooperation Council(GCC)
Imports Estimation
Figure-4

12. Comment of Saudi Government
Official
“Saudi Arabia is one of the largest
labor markets in the world with 11
million foreign workers from more
than 100 countries”
Adnan bin Abdullah Al-Naim
Undersecretary of the Ministry of Labor and Social Development

13. Major Digital Indicators
Figure-5

14. Internet User
Figure-6

15. Social Media User
Figure-7

16. Growth of Social Media User
Figure-8

17. Facebook User
Figure-9

18. Profile of Facebook User
Figure-10

19. Communication in Saudi
Arabia
Figure-11

20. Communication in Saudi Arabia
 The above statistics shows the channels that first
introduced internet users to a product or service that they
subsequently purchased in Saudi Arabia as of January
2018.
 In the period measured, the majority of internet users in
Saudi Arabia, about 33 percent, were first introduced to a
product by online advertising.
 The large majority of information accessed by web in Saudi
Arabia is in Arabic, followed by approximately 8% in English,
1% in French and 1% in other languages.

21. Communication in Saudi Arabia
 Heavy government presence in traditional public communications
channels, such as through the Broadcasting Service of the Kingdom of
Saudi Arabia (BSKSA)inclines many Saudis towards increased use of
social media.
 At the same time, the young demographic of the Saudi population lends
itself to higher volumes of social media traffic than in most comparable
markets.
 Around 75% Food and Beverage Businesses using Social Media as a
means to communicate with the public and advertise their products.
 Saudi Arabia is a major advertising market and the largest in the Gulf Region, where
it accounts for more than 40 per cent of advertising expenditures.

22. Present Status of Olympic
in
Saudi Arabia

23. Knowledge of Current
Customer
 Currently most of our customers are Bangladeshi
Immigrants and foreign workers who are staying
different cities in Saudi Arabia.

24. Previous Sales Record in Saudi Arabia
Figure-12
6,000.00
20,958.00
66,810.00
105,480.00
$15,456.00
$62,771.42
$231,597.00
$303,832.60
-
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
2014 2015 2016 2017
YoY Export Growth in KSA
Export in CTN Export in Value (USD)

25. Previous Sales by Percentage (14-17)
Figure-13
249.30%
218.78%
57.88%
306.13%
268.95%
31.19%
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
350.00%
Growth in 2015 over
2014 (%)
Growth in 2016 over
2015 (%)
Growth in 2017 over
2016 (%)
Sales Growth by Percentage
Export in CTN Export in Value (USD)

26. Previous Sales Record (All Country
2013-2017)
3,594.00 14,496.00
54,460.00
149,575.00
316,341.00
$48,022.88
$98,134.36
$248,952.57
$630,942.05
$1,052,098.90
-
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
2013 2014 2015 2016 2017
YoY Export Growth Report of Olympic (2013-2017)
Export in CTN Export in Value (USD)
Figure-14

27. Needs Fulfilled by Olympic
 We only export Biscuits and Candies but many
buyers want to buy various items from processed food
category in each consignment.
 Many food products exporters in Bangladesh are
exporting many different items from food category
 Our Competitors from Bangladesh are exporting
variety of processed food products to KSA.

28. Major Areas Served
 The biscuit of Olympic is served in area of Jeddah, It is the
largest city in Makkah Province, the largest seaport on the Red
Sea, and with a population of about four million people (as of
2017).
 It is the second-largest city in Saudi Arabia after the capital
city, Riyadh.
 Jeddah is Saudi Arabia's commercial capital.
 Jeddah is the principal gateway to Mecca and Medina, two of
the holiest cities in Islam and popular tourist attractions.

29. Jeddah At a Glance
Region Makkah (Mecca)
City 1,600 km
2
(600 sq mi)
Urban 1,686 km
2
(651 sq mi)
Population 3,976,000
Density 2,500/km
2
Website www.jeddah.gov.sa
Figure-15

30. Knowledge about Importers
 In Saudi Arabia our exporter is Salah Salem Bin Gobous,
from Jeddah. In KSA we don’t have our own
setup/distribution channel.
 In KSA most of the products of Olympic are distributed by
our importer Salah Salem Bin Gobous.

31. Areas of Improvements
&
Possible Strategic Moves in
KSA

32. Areas of Improvements
 We may visit our existing buyers to ensure them that
we care for them and to encourage for increasing the
orders or order quantities.
 Currently we are exporting 100% Biscuits per
consignments. we can include more items to increase
the amount per consignments.
 As we don’t have our own distributor in KSA, we may
introduce our own setup like other food exporter from
Bangladesh to gain more share of market.

33. Possible Strategic Moves in
Saudi Arabia
 Introducing Social Media Marketing(SMM).
Because-
 The growth of social media in KSA is the Highest (77%) in the world.
 Governments strict regulation in traditional media encourage Saudi
residents to use Social media.
 Around 75% Food and Beverage Businesses using Social Media as a
means to communicate with the public and advertise their products in
KSA.
 Promoting product through in Store advertising. (As in store
advertising is very effective in Saudi Arabia).(Figure-11).
 Customize add campaign targeting different nationalities.