This report analyzes exporting Bangladeshi desserts to Saudi Arabia. It provides an overview of the Bangladeshi dessert company and why Saudi Arabia was selected as an export target. The report outlines the market entry strategy including using a direct export model and appointing a local Arabian distributor. It also discusses investment needs, product localization, distribution, advertising and pricing. A SWOT analysis and organizational chart are included. The report then provides a detailed analysis of Saudi Arabian culture, consumer tastes, the food import market and regulations. It concludes Bangladesh has a strong relationship with Saudi Arabia and is confident its dessert exports will be profitable.

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INDEPENDENT UNIVERSITY, BANGLADESH (IUB)
Report on “Bangladeshi Desert Business Export”
Subject: International Management (INB-303)
Spring,2017, Section :01
Submitted to:
Ms. Tasneem Bareen Hasan
Lecturer, School of Business
Independent University, Bangladesh
Date of Submission: 28/03/2017
Submitted by:
Junait Husain Rahul
ID(1310911)

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Overview of Siwss dessert
Our Siwss dessert company is making sweetened frozen food product in Bangladesh. It is very
popular in Bangladesh. It has established in 2012. We have 16 outlets in Bangladesh. Our main
product is sweet like Chomchom, Sondesh, kacha golla, ice cream. We are in the business of
making people happy with our product. Every times our product brings out smile, every time it
makes your moment special.
Country selection
Bangladesh has been a very good relationship with Saudi Arabia. In business sector Saudi Arab
Provide facilities to Bangladesh which always helps to do business with them. Bangladesh and
Saudi Arab culture is little bit similar because of the country are Muslim based. Lots of
Bangladeshi people are living there and doing business with them. So we select Saudi Arab for
exporting our Bangladeshi dessert.
Market Entry Strategy
Export Mode
Whether to export directly or use domestic export representative
Our company product will export directly to the Saudi Arabia.

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Investment
We invest some own money and taking loan from local Bank.
Localization/adaptation
(Whether/how to adapt product, packaging, literature):
Our company will not initially modify current design or packaging of products. Our company
will initially use current product brochures and investigate need to translate promotional
materials into GULF market.
Distribution
Our company will initially appoint a local Arabian distributor that specializes in sweetened
frozen food products, can stock products locally as needed, is not already overloaded with other
accounts, and is willing to share costs of market development and promotion.
Advertising & promotion
Our company and its distributor will launch an aggressive promotion campaign focused on ads in
the major trade magazines and participation in the Saudi Arabia.
Product pricing
Though we are first in this business that‟s why we keep our product price quite low.
Product delivery
Product marking and labeling will comply with GULF requirements. We use shipping for our
product delivery.

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SWOT Analysis
Strength
It‟s not difficult to export sweets from Bangladesh to Saudi Arab. Its exporting cost is low. As
Saudi Arab is a Muslim based country we are making and processing it as a 100% Halal and we
must concentrate on the quality of the sweet. Our desserts tastes are unique and special from
other desserts. We have a good reputation to them.
Weakness
Our brand is not internationally recognized. We are doing business with Saudi Arab first time.
Increased of home countries material price.
Opportunity
Bangladesh and Saudi Arab relation is always been a very good. Saudi Arab always gives
Bangladesh some facilities. Saudi people likes dessert like Hainan is a sweet Saudi Arabian
cuisine that they eat during the winter. As Bangladesh is known as a Islamic country to Saudi
Arab it also helps us to export there. Because Islamic dietary laws are prevalent across
Bangladesh. Halal foods are food items that Muslims are allowed to eat and drink under Islamic
dietary guidelines. The criteria specifies both what foods are allowed, and how the food must be
prepared. The foods addressed are mostly types of meat allowed in Islam.
Stable Environment compared to other countries in the region.

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Threat
Lots of cultural desserts are popular in Saudi Arab. So it is difficult to make our product popular
within a short time. And as we are exporting it there it will creates the prices little bit high from
their national dessert.
Organization chart
Though we export our product we need to make an export department. Our company wishes to
greater control over export operation deal with international sales of all product.
R & D Production Marketing
Accounting
& Finance
Headquarters
Export
Department
Overseas
Sales Force

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Saudi Arab Culture
In Saudi Arab Islam is the national religion. The inhabitants lives are directed daily by the
religion and the rules are based on religious basis „Sharia. Hospitality is a natural consequence of
the generosity and friendliness of the tribe members. Pride is very significant for Saudi Arab
culture.
The honor is highly valued in the Arabian societies. Arabians are because Of this very polite and
respect others in order to be respected in returnPatience is highly appreciated because it is often
mentioned in the Koran.
The characteristics of Saudi Arab culture are: familism,islam religion and believe in meta-
physics, lack of punctuality, man domination, hospitality, bargaing on prices, honour ,high
emotional etc. The common problems are: unclear boarder line between business and private life
in Saudi Arabia, un-distending the work process, written and verbal agreements, levels of
hierarchy,
Strong social relationship (establishing business network), the shadow of Islamic
Religion over all aspects of life and business, etc.
Hofstede’s theory
Power Distance
Saudi Arabia scores high on this dimension (score of 95) which means that people accept a
hierarchical order in which everybody has a place and which needs no further justification.
Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular,
subordinates expect to be told what to do and the ideal boss is a benevolent autocrat.
Individualism
Saudi Arabia, with a score of 25 is considered a collectivistic society. This is manifest in a close
long-term commitment to the member 'group', be that a family, extended family, or extended
Comment [11]:

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relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal
rules and regulations. The society fosters strong relationships where everyone takes
responsibility for fellow members of their group. In collectivist societies offence leads to shame
and loss of face, employer/employee relationships are perceived in moral terms (like a family
link), hiring and promotion decisions take account of the employee‟s in-group, management is
the management of groups.
Masculinity
A high score (Masculine) on this dimension indicates that the society will be driven by
competition, achievement and success, with success being defined by the winner/best in field – a
value system that starts in school and continues throughout organisational life.
A low score (Feminine) on the dimension means that the dominant values in society are caring
for others and quality of life. A Feminine society is one where quality of life is the sign of
success and standing out from the crowd is not admirable. The fundamental issue here is what
motivates people, wanting to be the best (Masculine) or liking what you do (Feminine)
Saudi Arabia scores 60 on this dimension and is thus a Masculine society. In Masculine countries
people “live in order to work”, managers are expected to be decisive and assertive, the emphasis
is on equity, competition and performance and conflicts are resolved by fighting them out.
Uncertainty Avoidance
Saudi Arabia scores 80 on this dimension and thus has a preference for avoiding uncertainty.
Countries exhibiting high Uncertainty Avoidance maintain rigid codes of belief and behaviour
and are intolerant of unorthodox behaviour and ideas. In these cultures there is an emotional need
for rules (even if the rules never seem to work) time is money, people have an inner urge to be
busy and work hard, precision and punctuality are the norm, innovation may be resisted, security
is an important element in individual motivation.

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MARKET OVERVIEW
Saudi Arabia is the largest importer of food and agricultural products of the Gulf Cooperation
Council (GCC) countries, with a total population 150 percent larger than that of the combined
population of the five GCC states (UAE, Kuwait, Qatar, Oman and Bahrain).
In 2014, Saudi Arabia‟s population was estimated at about 30 million, and expected to reach 40
million by 2025. This, in addition the continued growth in in Saudi Arabia‟s economy in the past
decade which boosted per capita income to $26,400 in 2016, will fuel demand for food imports
since Saudi Arabia relies on foreign suppliers to satisfy about 80 percent of its food consumption
needs. The high per capita income, changing lifestyle and diets in Saudi Arabia are expected to
boost the demand for high quality food products.
The latest available U.N. trade data shows Saudi Arabia imported $19 billion worth of food and
agricultural products in 2014, a decline of about 5 percent from imports in 2014.The top five
suppliers of food products to the Saudi market were India with 11.7 percent market share, Brazil
10.8 percent, U.S. 7.8 percent, Germany 3.9 percent and Argentina 3.7 percent. The significant
decline in the Saudi agricultural and food products imports was mostly due to lower prices of
grains such as corn, wheat, barley and rice.
In 2014, consumer-oriented food products accounted for about 48 percent of total Saudi food and
agricultural products imports and reached about $9.1 billion. Brazil was the largest supplier of
high value products, with a market share of 14.1 percent, followed by India at 10.8 percent, U.S.
at 6.5 percent, France at 5.9 percent and Egypt at 5.6 percent.
The Saudi Food and Drug Authority (SFDA) is the sole Saudi government entity that sets and
enforces food products regulations and standards as well as it is the main agency that conducts
inspection of imported food products to ascertain that they meet established Saudi and/or GSO
regulations and standards. The SFDA has recently started to strictly enforce Saudi and GSO food
import regulations, standards and circulars particularly those related to allowable limits for food
additives and labeling requirements, which they were lenient in enforcing in past years. For
example, SFDA has rejected several containers of U.S. prepackaged food products for having
misleading health benefits claims. In the past several months, the SFDA has imposed temporary

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import bans on U.S. poultry and egg products from U.S. states that confirmed the presence of
highly pathogenic avian influenza (HPAI) in their poultry farms. The imports ban imposed on
U.S. beef in May 2012 is still effective despite continued negotiations between USDA and
SFDA technical experts. With Bangladesh
General Consumer Tastes Preferences
The Kingdom is a growing market for high value food products and consumers have affinity for
trying new food products, offering greater opportunities for new-to-market U.S. foods. Ready to
eat foods, home meal replacements, fast foods and "take-away" foods are increasingly popular
with the young Saudi population. The about 10 million expatriates that live and work in Saudi
Arabia create demand for greater diversity and ethnic foods. In the past two decades, Saudi
Arabia has experienced rapid socio-cultural changes caused by the fast growing economy and
increase personal income that allowed Saudis to travel to the West for education and tourism,
and to learn more about western food and culture. The rapid expansion in western style
supermarkets and fast food restaurants has significantly changed Saudi consumer tastes and
preferences. Increasing numbers of Saudis look for high quality foods and are willing to pay
more for quality. Most hypermarkets are now severing cooked meals, marinated meat, ready to
go salad and chilled pizza to meet the growing demand for prepared foods in retail outlets.
One of the noticeable trends in the Kingdom has been the decline in consumers‟ preference for
canned food products in favor of fresh or frozen food items. Frozen foods are perceived by
consumers as being of better quality than canned foods. Changing lifestyles and an increasing
number of women entering the workplace are driving demand for prepared foods.
Saudi consumers are becoming increasingly educated about food prices, quality, nutritional
value, food safety and packaging. They pay attention to expiry dates on products and enjoy new
products.

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Despite the fact that Saudi Arabia allows the importation of biotech labelled consumer packed
food products since 2001, no packaged foods with positive biotech labeling have been imported
so far because of limited knowledge and negative attitude of consumers towards foods
containing or made from biotech products. Saudi importers of high value food products do not
import biotech foods as they are concerned that biotech labeling could jeopardize their product
image and result in losing market shares. Saudi Arabia requires positive biotech labeling if a
product contains more than 1 percent of biotech vegetable (plant) ingredients.
Dining at fast food restaurants has become very popular among Saudi families and expatriate
workers. American fast food chains such as KFC, Burger King, and McDonald‟s as well as
casual dining restaurants such as Chili‟s, TGI Fridays, Applebee‟s, Sizzler, On The Boarder,
Fuddruckers and some local fast food chains such as Herfy and Kudu, import at least part of their
food needs from the United States. Large catering companies, especially those serving Western
expatriates, also buy a portion of their requirements directly from the United States.
Saudi Arabia is located between Europe and Asia. With its large expatriate population, the
Kingdom is a multi-ethnic society. Consequently, foods from around the globe are found in
Riyadh, Jeddah, Dammam, and other urban areas in the Kingdom. There are two basic consumer
categories in the Kingdom:
Saudi citizens (21 million) in 2016
Expatriates workers residing in the Kingdom (10 million)
Per capita income $25,400
Saudi consumers are discriminating consumers and enjoy new food products. With a young and
growing population supporting a significant increase in retail outlets, U.S. food and agricultural
exports to the Kingdom will continue to expand in the coming years.
A growing import demand for institutional-size food products by the catering sector is being
driven by the large number of expatriate third country nationals working in Saudi Arabia and the
increasing number of foreign pilgrims visiting the two holy cities (Makkah and Medina). There
are ten million expatriate workers residing in the Kingdom, most of who are single and from the
Sub Continent of Asia (India, Pakistan, and Bangladesh) and the Philippines. The number of
foreign pilgrims coming for Hajj and Umrah rituals is estimated at about eight million perannum.

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Saudi and middle income expatriates are the largest consumers of American consumer-oriented
products and the principal shoppers in Class A supermarkets. The consumers in Saudi Arabia are
becoming increasing educated about quality, nutritional value, price, and packaging. They pay
attention to expiry dates on products and enjoy new products.
Domestic supermarkets that offer a wide variety of food products will have the best chance for
prospering in this competitive market.
Conclusion:
Saudi Arabia is likely to extend duty-free market access to five products from Bangladesh,
including garment and pharmaceuticals, to enhance bilateral trade. BANGLADESH has long-
standing relations and burgeoning engagements with the Kingdom of Saudi Arabia. That‟s why
we are confident in our business strategy and condition to makes it profitable. We are exporting
dessert products

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Referance:
 Saudi Arabia export guide 2016, Hussein Mousa, U.S. Embassy, Riyadh
 https://en.wikipedia.org/.../Culture_of_Saud
 www.fromtourist2local.com/.../13-traditional
 https://www.google.com/search?q=what+kinf+of+product+export+from+bangladesh+to+saudi+
arab&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-beta&channel=fflb#
 www.thedailystar.net › Business