Tourism and Dubai

Dubai is one of the seven emirates in the United Arab Emirates. It is the second largest emirate by area 4,114km2 after Abu Dhabi. Dubai is considered to be the jewel in the Middle East. Dubai has risen to be a well planned and developed city from the oasis in the dessert. It is a young tourist destination which has gained popularity recently. Dubai is the most populous emirate of the seven emirates of Unite Arab Emirates. It is one of the few cities that have rapidly transformed itself into a developed city. Dubai is the link between the east the west.It is one of the major transit stops for all the airlines who are travelling around the world. In the year 2009 Dubai was hit with an economic crisis post which Dubai managed the downfall very well and since then it has had a booming economy till now. Dubai is certainly the destination of the 21st century. It has been popular with the tourist for its shopping festivals, malls and well developed infrastructure. Though Dubai was the first city to develop in the tourism sector in the Middle East it is very difficult to sustain because its neighbouring competitors are also striving hard to gain popularity in terms of tourism in the world.Dubai has over 2 million people from more than 200 nationalities, it is one of the most cosmopolitan cities in the world, just when you think you’ve seen it all, a new project is announced , whether it is the launch of a sports stadium, a mega commercial tower, a residential enclave or yet another shopping mall. Dubai is constantly on the move, striving for greater heights and more facilities and comfort for its residents and visitors. Product Offer Dubai has been one of the top tourist destinations in the world. Due to the impressive boom in construction on a very grand scale it attracts tourist all over the world.In the year 2009 Dubai attracted 7. 8 million visitors even though there was an economic crisis going on. Many tourist attractions have been built to attract the tourists. Dubai expects 15 million visitors by the year 2015. Dubai is popular because of its geographic location as it is very easily accessible by most of the Asian countries and the Indian sub-continent. Dubai is known for its splendid infrastructure, it has a wide range of products to offer to the tourist ranging from big sophisticated malls, parks, zoos, museums, stadiums, beaches and luxurious hotels.Dubai is also known for its masterpiece the manmade islands namely Palm Jumeirah, Palm Deira, Palm Jabel Ali and the world. Dubai has the tallest building in the world called the Burj khalifa and it has the 4th tallest hotel in the world called Burj al Arab and various night clubs and fine dine restaurants. Pricing Strategy Dubai has made a place for itself in the international market it has been up-to-date with all the latest demands and needs trending in the international market. Tourism has been one of the major contributors in Dubai’s economy. Pre-economic crisis Dubai was at its best only to see a ownfall in the year 2009 when the economic crisis hit Dubai. However, Dubai has managed to recover with the economic crisis and has done exceptionally well. As Dubai was doing really well prior to the economic crisis it had a psychological pricing strategy but post economic crisis in the year 2009, Dubai is trying to penetrate the market to get more number of investors and enhance its tourism industry so that it can rebuild. The visa rules and regulation in Dubai plays a major role for the visitors come in. It can be termed as differentiated strategy.Dubai is trying to accommodate more and more number of immigrants which would help the government to generate more revenue. Service concept Dubai has been one of the premium destinations to visit with a lot of attractions and places to see. It has built elite resorts and hotels, many heritage buildings, Parks and zoos and many manmade islands. Dubai is constantly trying to provide a memorable experience for its customers and make their stay as safe and convenient as possible. Dubai has information systems installed on the roads where an individual can search for all the nearby places and attractions.Dubai also has some future plans which it aims to complete by the year 2015 namely Dubai land, The World, City of Arabia, Culture village, Bawadi, Sahara Kingdom, Arabian Canal and Dubai International City. Key marketing strategies Due to globalisation countries all over the world are competing amongst each other, this is where the need of marketing comes into existence. Marketing plays an important role in ones business it helps to grow and develop a destination. A destination can have the top notch products but to let the world know about them it feels the need to market.In the same Dubai has also marketed itself to the world so that the world comes to know what it is offering. Prior to the economic crisis in 2009, Dubai is in the rejuvenating stage so it is trying to offer new products to the market which will attract more tourists and visitors. It has done exceptionally well in penetrating the market. It has also introduced various festivals, exhibitions and trade shows to attract the visitors namely Cityscape Global, Big boys toy exhibition, Dubai shopping festival and cityscape Global etc. These festivals, exhibitions, conferences and trade shows attract many nternational visitors. Dubai also has its own web site called www. definatelydubai. com on which an individual can know about the place at one go. Dubai has tried hard to market itself through various means like Advertisement, internet, television and public relations. Main target market There are various types of travellers that come into Dubai for various reasons, the main target market for Dubai are a) Airlines and ship crew: As Dubai is one of the major stops for all the airlines and cruise lines travelling around the world therefore, accommodating maximum number of airline and ship crews. ) Expatriates: 80% of the total population in Dubai are expatriates who enter Dubai for various job opportunities and settle in Dubai. c) Leisure travellers: Due to the luxury hotels all around Dubai and the recreational activities it is one of the hot spots for the travellers looking for leisure activities. d) Honeymooners: Dubai has a distinguished and unique facilities, it has luxury 5 star hotels which provide splendid facilities, hotels like Burj Al Arab and various other luxury hotels are the best hotels where this type of market segment can enjoy. ) Sports tourism: Dubai has one of the well built stadiums and the sporting activities that are promoted by Dubai are of a very unique nature. They undertake activities like sand skiing in dessert, horse race and came racing etc. Dubai has hosted the following international championships a) Dubai world cup – the richest horse racing in the world b) Dubai classic – the gold championship c) Barclays Dubai Tennis d) UIM World Powerboat racing e) Rugby 7’s f) Dubai snooker classic Main challenges faced:One of the major challenges faced by Dubai was in the year 2009 when it had an economic downfall. At that time the tourism and hotel industry of Dubai suffered losses, they introduced special discounts to lure the people to come to Dubai. It has a lot of cultural restrictions that would prevent some tourists from coming to Dubai. Also political stability in the neighbouring countries can have an effect of Dubai. Only the hotel industry in Dubai is competitive with 47 different brands to choose from. Environmental AnalysisEnvironmental analysis is nothing but a marketing strategy which helps a destination or an organisation to reach its marketing goals by outlining the techniques and behaviour you can take into consideration to reach your marketing objectives. It helps in evaluating the possible impacts of external environment and forces on the current strategies and growth of the organisation. Every destination feels the need to do an environmental analysis to have a competitive edge and as well as to know their strength, weakness, opportunities and threats to their business.Dubai as a leading tourist destination of the world (Kumar) aims to provide a memorable and cherishing experience to all its tourists. Dubai has a very competitive environment within the Middle East itself so the environmental analysis will only help Dubai to identify its current spot in the market and its strengths and weaknesses. Environmental analysis consists of the macro environmental scanning. Macro environmental scanning further consists of the following:- a) Political factors b) Economical factors c) Socio-cultural factors ) Technological factors e) Ecological factors f) Legal factors Marketing information system (MIS) Marketing information system helps in accumulating, handing out, storing and disseminate data in the form of data needed to carry out management functions. According to (Kotler) “A marketing information system consists of people, equipment, and procedures to gather, sort, analyses, evaluate and distribute needed, timely, and accurate information to marketing decision makers. ” It basically gives three types of information:- Recurrent informationThis type of data is supplied by the MIS regularly about the market share and customer awareness of a particular product or organisation. It may be supplied Daily, Weekly, monthly or yearly. (http://agbssem1. webs. com) Monitoring information This type of information is gathered from the frequent scanning for selected sources. This data helps in the concerned managers to be alert and identify potential problems. (http://agbssem1. webs. com) Requested information This information is made available in response to requests made by the marketing manager. Data has been collected through survey research.The MIS supplies the requested information in decision making. (http://agbssem1. webs. com) The information collected for a destination can be in various forms like No. of visitors, No. of accommodation, Development in technology and the annual revenue earned. This information is collected by the division of tourism, Dubai. As Dubai is one of the leading destinations of the world, it attracts visitors for various purposes like Sightseeing, travel packages, investments in estates, nightclubs and shopping. This helps to generate revenue for the government.As marketing information system helps to accumulate and keep data in the form of figures it will surly prove helpful for Dubai to formulate its strategy for its ongoing and fast growth in the market. The advantages of having a marketing information system are as follows:- a) MIS helps to recognise market trends in heed of value, designs of commodities and style. b) It facilitates marketing forecast and control. c) It helps in rapid supply of data which helps to take quick decision. d) It helps in making quality decisions. e) It helps to avoid crisis.Therefore, it is vital to have a marketing information system setup for any destination or an organisation to identify its current market and to be updated about its current trends. Environmental Scanning: Environmental scanning deals with process of researching and analysing events and changes that are occurring in the external environmental. (Hsu, Killion, Brown, Gross, & Huang, 2008) It refers to macro environment which consists of all the external factors that are political, economical, socio- cultural, technological and legal factors. It further consists of industries, companies, clients and competitors.Such factors play a major role in influencing an industry or a market. Environmental scanning is a process of carefully scrutinising of a company or a destination’s internal and external environments for the purpose of detecting initial signs of opportunities and threats which may affect or help in its existing and future prospects. Dubai has been a popular destination with many opportunities. Therefore, Environmental scanning will prove helpful to the destination to survive in the market and reach its full potential by getting to know about its opportunities and threats.As there are a lots of international tourist who are travelling around the globe and want to explore different countries in the world there is a need for Dubai to formulate proper strategies and do efficient environmental analysis to maintain the pace with its competitors. Dubai is emerging to be a powerful tourist destination so it has to be well aware of the opportunities in and around Dubai so it can capitalise on them. PESTEL analysis: PESTEL analysis deals with the 6 factors that are political, economical, social, technological, ecological and legal.PESTEL analysis will be a great help for Dubai as it would come to know about its competitors and threats to Dubai. It helps in formulating strategies for the development of a destination to grow in the market. It will help Dubai to identify the potential opportunities and exploit them. Political: Dubai is one of the seven emirates in UAE, The political conditions of Dubai is more stable than its neighbouring competitors. The government and the department of tourism in Dubai have helped a lot in the development of tourism in Dubai. Some political factors that influence Dubai’s tourism is as follows:- ) The government thrives to improve its international ties with other countries which could facilitate tourism industry in Dubai. b) The visa policies to enter Dubai are one of the major factors that attract a number of visitors. An international visitor does not need to apply for a visa in advance to visit Dubai. However it is only applicable to the countries listed in the GCC. It has a visa on arrival which makes it very convenient for the visitors coming in. c) A foreign national can own up to 55. 5% of the ownership of the business he is investing in which was 49% in the year 2011 however a foreign company can operate in three ways i. . a local sponsor, Tie-up with a national company or UAE national or through a private limited company or public shareholding company. d) The government has constantly tried to improve the safety of the tourists in Dubai and bring in many up-to-date facilities. Economical: Dubai has undergone a drastic change over the last 30 years, it has been a major business centre with a more active and diversified economy. As it has a very good strategic location it is one of the biggest re-exporting centres in the middle-east. Activities like trade, transport, tourism industry and finance has had a major contribution in Dubai’s economy.There has been a popular belief that the major contributions to Dubai’s economy come from oil, but it is the tourism industry now that has a major contribution in Dubai’s economy. Oil only contributes 6% of the total economy of Dubai. (http://dubai. ae) a) Dubai had an economy of US $92. 11 in the year 2011. (http://www. dubaitourism. ae) b) The tourism industry contributed 11. 45% of the total economy. c) Dubai has formulated certain strategies and plans to boost its tourism by the year 2015. d) Dubai’s hotels recorded a growth of 10% in visitors in the year 2011. e) Alternatively Dubai had a foreign debt of US $100 billion. ) It had a growth in its GDP by 3. 4% in the year 2011. g) Dubai has a multi-billion construction project taking shape to promote more tourist attraction and improve its infrastructure. Social:- Social factors consist of the demographics, Population, safety and the literacy rate of an organisation or destination. These factors influence the market growth of a destination. According to (DWTC, 2013) a) The population of Dubai till date is 2. 2 million. b) The male to female ratio is 1:3 Dubai has been a male dominant society for ages however it has now started to give more freedom to the women. ) Only 20% of the total population in Dubai are actually from Dubai rest all are expatriates which hail from 200 different countries. d) The native language spoken in Dubai is Arabic but as there are a lot of people from different other countries English is also well spoken. e) Dubai has a literacy rate of 94% f) The religion followed in Dubai is Islamic but an individual has a freedom to follow any religion he likes. g) The crime rate in Dubai is almost next to nil. Technological:- Technology plays an important role for any destination due to the travellers coming from all over the world.Dubai has invested a lot of money in developing its technology and infrastructure. Dubai has a lot of tourist attractions and tall buildings to see. Dubai has been up to date with the world in regards to technology. a) Dubai has the tallest building in the world called Burj Khalifa it is 828 meter tall which is equipped with highest elevator installation and also the fastest elevators at the speed of 64km/h. It would take just a minute to reach from the ground floor to the top floor. b) The city has free flowing tolling booths so the cars are automatically charged using Radio Frequency Identification technology. ) Dubai has one of the tallest hotels in the world called Burj al Arab. d) Dubai has a multi-billion construction project taking shape which has engaged around 30,000 construction cranes i. e. 25% of the total cranes worldwide. Dubai also has systems installed on the roads where anyone can stop and have a look at the nearest restaurants, pubs, nightclubs and other information. The infrastructures and technology of Dubai is well up to date which makes it very convenient for the visitors and tourists coming in and helps to make their experience more memorable. Ecological:- Dubai enjoys one of the best strategic locations in the world.It has had an edge over its competitors because of its strategic location and the government of Dubai capitalising on it. a) Dubai has scenic and beautiful beaches all throughout its coast. b) Dubai has also built 3 artificial islands namely Palm Jebel Ali, Palm Jumeirah, Palm Deira. c) The climate in Dubai is relatively very hot and dry. In the summers (July to October) the temperatures can go up to 40? C. d) According to (http://www. emirates247. com) Dubai is one of the cleanest cities in the world and is rated as one of the best cities to live and work in because of the rising labour and skill requirement. ) Dubai faces the problem of water the water is very scarce in Dubai which poses to be a major concern for Dubai as of now. f) Dubai has a very big International air port and is one of the major stops for all the airlines who are travelling around the world. Legal:- The United Arab Emirates is a grouping of seven emirates comprising of Abu Dhabi, Ajman Fujairah, Ras al Kjaimah, Sharjah, Umm Al Quwain and Dubai. The UAE constitution provides for an allowance of powers between the central government and the administration of each emirate.Dubai is bound with the federal law of the UAE but it has all the rights to monitors its own internal affairs and it also enjoy certain other rights. a) The use of any pornographic material in Dubai is strictly banned by the government. Certain other materials like drugs and anti-Islamic resources cannot be brought into Dubai. b) Two people of the opposite sex cannot hold hands in public or share any private space with each other unless they belong to the same family or married. c) Dubai has Zero tolerance policy regarding alcohol and drugs.Anyone found with even a minute quantity of drugs is subject to 4 years in prison before deportation. Alcohol and pork is tabooed in the Islamic religion. Though consumption of alcohol is allowed for non-Muslims but it should be only at licensed pubs or bars and the consumer should hold an alcohol license. e) Clothing of women should not be indecent the clothes should not be transparent or too short, where as for men they have to cover their chest at all times when in public. Environmental scanning procedure Areas for scanning| Medium| Responsibility | Reporting to| Timing|Customers| Hotel and resorts| Service staff of the hotel| Management and Head of departments| Daily| | Foreign Nationals| Staff and management| Dubai department of tourism and commerce marketing| Daily| Marketing Agencies| Advertising agencies| Service staff and management| Operation and journalism department of Dubai| Daily| | Newspaper| Journalists and staff| Operation and journalism department of Dubai| Daily| Transport System| Airlines| Staff and management| Dubai Transport department| Daily| | Cruise lines| Staff and management| Dubai Transport department| Daily| Economy| Inflation rateGDP per capitaRevenue| Hotels,Business organisations,Entrepreneurs,Investors| Dubai tourism and commerce management, Govt of Dubai| Annually| | Revenue| Hotels,Entrepreneurs.Investors| Govt of Dubai| Quarterly| | Foreign Exchange| Banks| Govt of Dubai| Daily| Technological| Automation of daily activities,Communication Technology| linked agency| Technological department of Dubai| Weekly| | Infrastructure| Govt of Dubai| -| Monthly| Legal| Minimum wage | Law and legislation department| Human Resource Department| Annually | | Laws| Law and legislation department| -| Annually| Socio-cultural factors| Age, Population, male to female ratio| Dubai statistic centre| Government of Dubai| Annually| | Education, Literacy rate| Ministry of Education| Government of Dubai| Annually| | Crime rate| Dubai police force| Government of Dubai| Annually| Situational analysisDubai has been doing everything to make itself the leading tourist destination of the world. It has explored itself drastically in the last few decades and still growing in the market day by day as one of the leading destinations, However as everything has some strengths and weakness in the same way Dubai also has its own strengths and weaknesses. It is very important for a destination to be well aware of its strengths and weaknesses and also about the opportunities that are in the market so it can capitalise on them effectively. A destination should know about the potential threats it has in the fast paced market so as to avoid any crisis or problems.Strengths and weakness are the internal factors whereas opportunities and threats and the external factors. (Hsu, Killion, Brown, Gross, & Huang, 2008) Strengths a) Despite of not much of economic contribution is done by oil. Dubai has some of the leading companies of oil who are still actively supplying oil all over the world. b) After the economic crisis of 2009, Dubai has seen a very fast economic growth. c) The infrastructure of Dubai is very beautiful and there are a lot of tourist attractions to see in Dubai such have the tallest building in the world and upcoming projects like Dubailand and underwater hotel. d) Dubai has some of the most luxury 5 star hotels. e) No political turmoil. f) High quality of transport and infrastructure.Weakness a) There is major scarcity of water in Dubai, Which can lead to possible wars between the neighbouring nations who face the same problem. b) There is a negative image of the Middle East. c) Dubai has very strict rule and regulations which prevents an individual to do anything he wants. d) Dubai has too many plans in the near future but not many completed projects. (www. studymode. com) e) It is deficient of natural resources. f) There are only 20% of UAE nationals of the total population of Dubai. g) Dubai attracts visitor more because of its luxuries but that might only appeal a small segment h) It has cultural restrictions. Opportunities ) The oil prices in the world market are booming this can boost Dubai’s economy. b) A lot of foreign investment is done in Dubai. c) Increases in number of employment and job opportunities for immigrants. Threats a) It has very strong competitors within the Middle East. b) It is estimated that Dubai will lose all its oil resources in the next 30 years. (Lee & Jain) c) It has a partial media exposure. d) Terrorism can further affect the image of the Middle East. Therefore, looking at the situational analysis Dubai has a booming economy even after its downfall in the year 2009. Tourism and hotel industry is fast booming which is contributing a major portion in Dubai’s economy.Dubai has many projects lined up regarding their infrastructure by the year 2015 after all the projects are complete, Dubai will be able to attract more number on visitors. Dubai has been very popular worldwide and one of the best places to live on earth. Dubai has to focus on its internal and external factors carefully so it reaches its full potential. Target market analysis One of major factors to be considered in the marketing is customer. Target market is a process by which the consumer tries to meet the needs and want of the customers in order to sell its product or service. In doing so the consumer not only satisfies the customer but also converts the customer into future investment for the organization or business.Target market process can be divided into various stages such as geographic, demographic, and psychographic. Hence target market plays a crucial role in development and sustainability of any destination or product. It is ongoing process and has to be carried frequently in order to go on with the trend. Dubai has been the most renowned destination in the world from many years. It has been one of the most happening cities in the world due to its unique projects features and event organized by them. Hence the main credit goes to The Department of Tourism and Commerce Marketing (DTCM) which was established in January 1997. Dubai? s hotels has one of the highest revenue par worldwide therefore attracting many international customers.The vision statement of DTCM is “To position Dubai as the leading tourism destination and commercial hub in the world” and the mission is “To develop sustainable tourism”. In the year 2009 Dubai experienced a tremendous downfall in the occupancy rate. The reason for the drop of the occupancy rate was the recession period in US which slowed down the occupancy rate in Dubai (DTCM, 2009b). So while doing a market research i. e. target market analysis it is important to carry out competitive analysis with the other contender /competitor in order to stay ahead of the competitor. The destination must provide a unique and different product which will attract the customers rather than the competitors. Market segmentationThe process of defining and sub dividing a large market into identifiable segments which has similar services or product to offer which matches the expectations of the customers. Hence marketing segment can be divided into two groups geographical segmentation and psychographic segmentation. Geographic segmentation Collecting and analyzing information according to the physical location of the customer or other data source. Geographic segmentation is often used in marketing, since companies selling product and service would like to know where their product is being sold in order to increase advertising and sales efforts in that particular location. 2011- Dubai Hotels and Hotels Apartments Guest by Nationality | | | | | Sr. o| Nationality| Hotels| Hotels and Apartments| Total| 1. )| Asia| 3,478,626| 848,640| 4,327,266| 2. )| Europe| 3,543,753| 603,551| 414,704| 3. )| Other AGCC| 2,377,681| 858,922| 3,236,603| 4. )| Africa (excl. Arab)| 887,942| 424,123| 892,664| 5. )| Russia/CIS/Baltic| 449,139| 617,13| 510,852| 6. )| Australia and Pacific| 189,136| 33,502| 222,638| The above table shows the distribution of visitors to Dubai on basis of geographic area and market for Dubai. Dubai enjoys a high no of visitors every year and is increasing each year from Asia and is mostly concentrated in the South Asia which compromises of Afghanistan, Bangladesh, India, Iran, Pakistan, and Sri Lanka etc.It also has many visitors from Europe and AGCC the AGCC region is Arab Gulf Country Council. It includes 6 countries Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and UAE. Thee least no of visitors are from Australia and CIS which is a common wealth of independent state. As Asia is the important market for Dubai as it attracts more visitors from that region so it should be more concentrated in order to gain more business. Based on the above data the information about the spending power of the visitors can also be gathered (DTCM, 2011a) Spending in Accommodation by Top 10 Source Market | | | | | Sr. no| Names of the Country| 2009| 2010| Total| 1. )| United Kingdom| $121M| $124. 9M| $245. 9M| 2. )| United States| $72. M| $82. 1M| $154. 9M| 3. )| Saudi Arabia| $53. 6M| $70. 5M| $124. 1M| 4. )| France | $36. 3M| $35. 9M| $72. 2M| 5. )| Italy | $26. 5M| $24. 6M| $51. 1M| 6. )| Russia | $24. 5M| $24. 6M| $49. 1M| 7. )| Germany | $23. 3M| $23. 8M| $47. 1M| 8. )| Kuwait | $19. 4M| $24. 4M| $43. 8M| 9. )| Switzerland | $21. 4M| $22. 3M| $43. 7M| 10. )| Qatar | $17M| $21. 7M| $38. 7M| According to the data above it clearly shows that United Kingdom, United States and Saudi Arabia are the top three countries which spend more on their accommodation in Dubai in which total accumulates to $254. 9M, $154. 9M, $124. 1M. This is almost equal to 61-66% of the entire market.Hence the country which spends on accommodation ranges from $35-$51M. The countries which spend the least on their accommodation are Kuwait ($43. 8), Switzerland ($43. 7) and Qatar ($38. 7). Data gathered from (DTCM, 2011a). Psychographic Segmentation Psychographic Segmentation is a strategy whereby the intended audience for a given product is divided according to social class, life style or personality. Hence the strategy is used to promote product. As Dubai is a popular city and it is important to distinguish its visitors based on their purpose of visit so as to understand their needs and wants better. Therefore there are 6 categories of visitors who visit Dubai which are as followed:-Psychographic Segmentation| Characteristics| Business Travelers| These are visitors who visit for business they have visited Dubai on regular basis for business they travel on their own and make their own booking and arrangements. The length of stay varies according to their business| Airlines and Ship Crew| This clientele are frequent visitors to the Dubai. All the arrangement is made by the company for which they work. The length of are from 2 – 3 days. | Conference Visitors| These visitors visit Dubai on a regular basis for purpose of attending a co-operate or business conference or seminars. All the arrangements are made by them. The length of stay is 6 – 12 days. Working Expatriates| These are the visitors who are visiting Dubai for the first time they have arrangements of own for accommodation but not in hotels. The length of stay may be one year or more. | Leisure Visitors| These visitors are visiting Dubai for the first time and make their own arrangements they prefer to stay in 5 star hotels. The length of stay is 5 – 10 days| Sports Visitors| These are sports person who visit Dubai for purpose of sports event all the arrangements are made by the organizers who organizes the event. The length of stay depends upon the duration of event. | Market Segment Psychographic Segmentation| Percentages| Business Travelers| 32%| Airlines and Ship Crew| 10%| Conference Visitors| 12%|Working Expatriates| 11%| Leisure Visitors| 25%| Sports Visitors| 10%| As the above data shows that the business travelers are the frequent visitors to Dubai with 32% as they visit for their business purpose and then come the leisure travelers with 25% they travel for the purpose of relaxing to enjoy or to take a break from their daily schedule. So the main market in which is attracted by Dubai is the business and leisure travelers. While the other market that contributes to the economy of the country are Airlines and Ship Crew (10%), Conference Visitors (12%), Working Expatriates (11%) and Sports Visitors (10%) (DTCM, 2011a) Potential markets profileFrom the data gathered about the visitors coming to Dubai we can define the potential target market for Dubai so that it can concentrate more on it to gain more revenue from its potential market. Hence after comparing and analyzing the data we have 3 potential markets for Dubai (DTCM, 2011) India: Statistics: * Population- 1,222,200,000 * Growth Rate- 1. 41% * Literacy Rate- 81. 4% * Unemployment- 7. 8% Access: Indian visitor require a visa for their arrival in Dubai from the travel agent or sponsored. Demographics: Male from 26-45 year of age group visit Dubai. Value: Indian tourist contributes about $702,142 to the economy of the Dubai. Characteristics:Mostly Indian travelers are visiting Dubai for the first time. The length of stay is very short as they take a quick break from their schedule to relax. Most of them are business or leisure travelers. They make their own arrangements and their main priority is safety and value for money. Major Activities: They mainly travel to visit friends and relatives or for employment opportunities. They are generally interested in shopping as Dubai is well known for its shopping festival. Their main interest is in gold ornaments, footwear, dress and electronic items. Mostly Indian visitors go for sightseeing, shopping, visit heritage site and beaches etc. Strategies:India is a developing nation and on the other hand the population is increasing rapidly. Each and every individual has knowledge about Dubai. So in order to attract more customers it should focus on the rural area and reach them and promote itself through media or giving out packages. United Kingdom: Statistics: * Population- 63,182,000 * Growth Rate- 0. 3% * Literacy Rate- 99% * Unemployment- 7. 8% Access: Tourist from United Kingdom get visa on arrival to Dubai at the airport. Demographics: Male from 21-45 year of age group visit Dubai. Value: It contributes $128. 3 million to the economy of the Dubai. Characteristic: They are mostly business or leisure traveler. They prefer to stay in 5 star or luxury hotels.They arrange everything by themselves they love to visit new places. They use hotels taxi or public transport to travel. Major Activities: It is found that visitors from UK indulge more in shopping rather than sightseeing. They love to explore new things hence they like to travel from one place to other. They pay less attention to the local food. They are more inclined towards adventure sports. Strategies: Even there is economic crises in UK it is found that they are the highest spender in the Dubai. They are mainly attracted towards shopping and accommodation so these factors should be kept in mind and steps should be taken to attract more visitors.More emphasis should be given in the food sector as the data showed the spending on food sector was very less. South Korea: Statistics: * Population- 49,779,00 * Growth Rate- 4. 8% * Literacy Rate- 3. 3% * Unemployment- 98. 1% Demographics: Male from 24-44 year of age group visit Dubai. Value: It contributes 1,545,329 to the economy of Dubai through Korean visitors. Characteristics: This is their mostly first visit to Dubai by Korean visitors. They are here for a very short period of time i. e. 4-6 days. They arrange accommodation and travel separately by themselves rather taking a package. The preference of accommodation varies from person to person. Activities:The Korean visitors are mainly attracted to shopping of heritage souvenirs, footwear’s, accessories. They mostly stay in group and move around the city for sightseeing. They mostly dine in the food courts in the shopping malls and restaurants. They use public transport to travel within the city. Strategies: As there is a growth in the market from the Korean visitors every year and it is twice the every year which shows that Dubai is capitalizing its market in South Korea. As the no of visitors from South Korea is increasing Dubai should take some intense steps to create more awareness among the mass to increase the no of visitors every year. Importance of Target Market ProcessTarget market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards. A well-defined target is the first element to marketing strategy (Wikipedia). Marketing mix is a process to differentiate it market and target them to sell your product, it helps us to identify the potential customers and sketch plan of action to achieve the goals set by the organization. It is important for a destination to market it product or service to the consumer. Target market helps us to place the product or service in the market in a right manner. It also helps us to manage the budget and the cash flow.Competitive Analysis Competitive Analysis (Aaker, 2006) is an analysis that is carried out to recognize your competitors and evaluating their strategies to establish their strengths and weaknesses in comparison to those of your own product or services. A competitive analysis is a vital part in making a marketing plan for your company. By conducting this analysis you can make out what makes your product or service distinctive, and therefore what attributes are needed in order to position yourself in the type of target market you are attracting. Assess your competitors by placing them in strategic groups appropriately as to how they vie for a market share.For each strategic group they following points should be taken into consideration. * Their product or service. * Their financial profits. * The growth pattern of the company. * Their marketing objectives. * The assumptions they have about the market. * Their current and past strategies. * The organisational structure. * The cost structure. * Their strengths and weaknesses. * Their sales strength in the business. * The marketing media they support The fastest and the easiest way to create a comparison are to create a competition grid with similar products or services with similar ones that exist in the market. Create a competition grid and then write the names of four or five competitive products or services.Across the top of the paper, write the main points i. e. the main elements and their characteristics it should consist of things like target market, pricing scale, reach in the market and extent of customer satisfaction for a product. For a service, list the potential customers, the availability of service, their home page, toll-free phone number facility and other facilities that are appropriate. A quick look at the competition grid will help you analyse where your product positions itself in the overall market. What are the potential barriers? The possibilities of outcomes that can be establish in order to avoid competition entering your market.Any weakness that can be a potential threat within the product should be exploited within the product development cycle. Significance of Competitive Analysis on Market Mix According to (Zeithaml, 2006) has given particular 7P’s for the service industry that manipulate the working of all the seven features of the marketing mix in a competitive analysis. The first step in a competitive analysis is to recognize the existing and possible future competition. A good SWOT analysis will help you find out your position in the market. Competitive strategies have basic five areas that the SWOT analysis falls into. * Product * Place * Pricing * Promotion * Process * People * Physical-EvidenceMarketing strategies basically revolve around the product life cycle where the development stage begins with the point of entry into the market and then the product begins to grow and becomes an endurable competitive product. Product: Dubai has an extensive range of facilities that are available for their customer in the means of exhibitions, trade shows, Sporting events, Beaches, Adventure sports, Zoo’s, Museums, Entertainment events and the most important Dubai Shopping Festival. Therefore competitive analysis helps Dubai to measure up to itself with its competitors and can analyse the condition based on the competency of product offered by them. It also helps them to determine whether they have the need to introduce any new products to the customers to attract more market-share as well as to increase its control over tourism.It also gives knowledge about the needs of the tourists and whether they are lacking in a product or they need development in it. Place: This gives the government what places they should target and what are the various options that its competitors are focusing on. It gives a brief idea on which countries are facing potential problem and those countries are having a good growth rate and their economy is maintaining stability. It helps them in having a good supply channel of their products to the world so that they can give the best out of them to the potential market and the world on a whole. Pricing: The pricing strategy of Dubai is based on a very thorough competitive analysis.It has helped them a lot in organising various tour package facilities to Dubai attracting a lot of number of visitors from around the globe to make it one of the best tourist destination in the world ranked 7th behind Madrid for value for money services provided by them. Promotion: Competitive analysis helps in formulating the promotional strategy and how its competitors are promoting their destinations. It also helps them in effective brand formation, increase in market response. The better promotion strategy the better is the market response. The brand image is usually formed due to the marketing strategy that they choose. Process: Process is the quality of the service and how the service is delivered to the tourist. It depends on the efficiency of the service delivery and the effectiveness of the service deliverer. This helps them in building an effective process on the customer front of the business.People: Competitive analysis helps in promoting the destination as a tourist commodity is upon the locals and the tourism department. Competitive analysis helps the authorities to educate those individuals that are directly related and know the strategy their opponents are using in educating their staff. Physical-Evidence: Physical evidence is one of the main criteria’s that have a major influence on the decision of the people coming to the destination. It depends on the external factors like the environment, accessibility, political stability, health and safety. Competitive analysis helps in realising what are our short comings and how do we fall short of in facing our contender.Some features of physical evidence like atmosphere and political stability cannot be changed but we can have power over issues like accessibility, health and safety of our customers. Various stages of Competition: There is competition for Dubai at every stage of tourism. There are approximately 10 million tourists that visit this destination every year and by 2015 they are expecting at increase in the number of tourist by at least 3 folds because of the increase in facilities and events that are coming are resulting in more growth and demand for the destination. Dubai has two levels of competitions like most of the destinations they are internal and external.The internal or micro are the competitions from within the country i. e. Muscat, Abu Dhabi and Sharjah. The external competition or the macro levels are all the competitions that are found in the external environment i. e. outside the country e. g. Singapore, Hong Kong, etc. Micro or Internal Competition: One of the main reasons for this is because UAE has one of the most numbers of developing destinations in its emirate. The internal or micro level competitors are Muscat, Sharjah and Abu Dhabi that are growing very rapidly and causing a threat to the market of Dubai. After Dubai the most popular destination is Abu Dhabi it is the capital of UAE and the commercial centre of UAE.It has one of the largest museums of the automobile giants Ferrari know as the Ferrari world (Abu Dhabi Tourism, 2013) that have displayed all the cars they have created till date and is one of the main destinations for car enthusiasts. Sharjah is the other competitor that runs behind Abu Dhabi and Dubai that a have a very high growing economy and tourism. Macro or External Competition: The major competitors to Dubai are China (Macau), Malaysia (Kuala Lampur), Singapore and Hong Kong. China is one of the best destinations for Chinese culture mix and a bit of modern culture. Macau is such destination that had an influence of a bit of Chinese culture and was a part of the British colonies that have a mix of British culture in it. It boasts a lot about its nightlife, casinos and its food.Therefore it is a threat to Dubai because of the strict Islamic culture of Dubai it does not have gambling permitted in the religion and Dubai being an Islamic based city therefore gambling is illegal and there are no gambling sites in Dubai. Singapore is another city that is a threat to Dubai because of its strong culture it only lacks behind Dubai because of its strong dollar rate still they have annual visitors of 10 million people per year. One of the main factors that these cities are a main threat or competition to Dubai is because of favourable and good climate throughout the year. SWOT ANALYSIS: Swot Analysis is the most renowned tool for audit and analysing the strategic position of the business and find ways of how to establish itself within the market and seeing what marketing strategies are the competitors are implementing and how does it differ from our strategy.In other words it is a method to find out the internal strengths and weaknesses and external opportunities and threats that are present in the market. SWOT ANALYSIS FRAMEWORK SWOT ANALYSIS OF DUBAI Strengths: The strengths on Dubai are it has one of the most vibrant cultures. They have a good boost for tourism they have good planning and a very clear strategy. They have a clear vision for their goals and how to achieve it. They have various aspects of culture and heritage like food, music and dance that can gain lot of popularity and should be shown around to people. There is healthy involvement of both the authorities and the locals and there is no sort of offence towards tourists. It is a well-funded and supported by the tourism board of Dubai.It has a lot of demand for tourism in the market both because of the luxurious hotels and the world renowned Dubai shopping festivals. According to ( Dubai Department of Tourism ;amp; Commerce Marketing, 2012) it has a very extensive target market that includes: * Cruise Tourism: * Cruise Tourism is one of the rapidly growing and one of the most attractive markets in tourism. This is becoming one of the increasingly popular ‘leisure activity’ worldwide. Cruise tourism that once had a perception of being made for the rich, only option for the aged, the natural choice for natural honeymooners, has gained an increased popularity among all the groups of the leisure market. In 1997, DTMC formally setup a department that looked after the growth and development of cruise tourism.Although it has been encouraging cruise tourism since 1990, it had its first large sized cruise ship in 1993 that had around 700 passengers. Today Dubai is one of the largest hubs in the middle-east. * Business Tourism: * Dubai Business Tourism is having a good hold in the industry. In 2002 Dubai formed its Dubai Convention Bureau (DCB) to facilitate growth and promotion of Dubai as a worldwide and best destination for business events. It also promotes Dubai in every event possible to make itself as the best destination for business not only in the emirate but also in the world. * Sports Tourism: * Dubai is known as the sport capital of the middle-east because it has the largest sporting events that are held every year.One of the largest events are Dubai Duty Free Dubai World Cup – The richest horse race in the world. * Dubai Classic – the Golf championship. * Barclays Dubai Tennis – Both for men and women. * UIM World Powerboat Racing. * Rugby 7’s. * Dubai International Rally. * Dubai Snooker Cup. * The UAE Desert Challenge. * Eco Tourism * The world tourism organisation (WTO) forecasted the world is drifting towards places like mountain tops, ocean beds and the ends of the earth. The shifting culture of the world is changing the conventional form of tourism i. e. package, beach and shopping based tourism destinations to a more personalised and life enhancing voyage.Dubai is well capable of giving eco tourism along with traditional tourism to their customers. There are lagoons and natural reserves along with its natural deserts that are capable of giving breath taking experience to its visitors. * Health-Care Tourism * With state of the art infrastructure Dubai is the best for the services in the world. It has various medical features and facilities that are cheap and affordable to people. Dubai has been providing services to the people at affordable prices and at a standard same to that of USA and UK. Dubai also wanted a slice of the growing economy therefore it quickly developed it infrastructure and reached the standards that of the best. * Spa Tourism Dubai has already been the best for resort tourism and now it can be definitely add ‘spa’ to the list of being the best at. It is definitely Dubai for tourist that are interested in spa’s that are rapidly growing in Dubai and is quickly becoming a hot spot which has in turn helped in the economy. The age old traditions of spa’ and wellness treatment that have dated back to the roman times have originated in the middle-east that are taking a new meaning in Dubai as themed spa’s that are being opened up by famous brands like Armani. * Education Tourism * This is a relatively new field for Dubai. They have are getting recognized very quickly because of Dubai knowledge village and Dubai academic city.Today a extensive range of education facilities are accessible at the emirate. It not only has given good quality of education to residents of Dubai but also has attracted the residents of neighbouring countries. They are not only cost efficient but also efficient as most of the institutes are the base of reputed institutes and universities in USA, UK and India. The tourism department has established a well developed plan that has helped them in having a focus on every existing market that available. No visa is needed for most of the tourists that come to Dubai. It has a well balanced and a mix match with other tourism sector to gain and attract proper popularity in the market.Dubai is well known for their yearly ‘Dubai shopping festival’ that attracts the most number of tourists and which has been a main factor in the growth and the developed of tourism popularity in the world. It has many man-made wonders like beaches, island and sky-scrapers that have resulted in more attracted tourists that have increased their revenue. Burj khalifa and Burj-Al-Arab are the two main structures that have become landmarks and status symbols for Dubai and its tourists. All of the above factors are the main reasons why Dubai has a competitive advantage over most of its competitor destinations. Weakness: Dubai has some weaknesses that are clearly identifiable.One of their main weakness which is also their advantage is their culture the problem is that it is same as compare to that of Abu Dhabi or any other middle east destination therefore the visitors that come here are mainly for cultural tourism and have come a number of times and they must be fond of the culture and the cultural monuments therefore they come here. The other reasons are that it is becoming one of the most expensive cities in the world because of the hike in oil prices and the inflation in the real- estate industry. In spite of low crime rate there are some instances of rape and drug abuse that have caught spotlight and have become a huge media publicity issue. Although it has a large target market but it has had impact on its market because of recession that had a market crash in USA.Another weakness is its climate condition its is severely hot in the day and in the night is very cold making it almost impossible to go out during the day thus affecting desert safari tourism which is one of the main target markets of Dubai. Dubai being an Islamic country Ramadan is their main religion therefore during this time the workers working patterns are altered. This has affected the tourism sector because the closing time of the restaurants and cafe’s that is altered during the time of the sunset because of their religious traditions. Opportunities: The main opportunities of Dubai are the ever increasing price of oil that can help in the growth rate of the economy along with the tourism economy. The demand for oil has increased so much that they can establish an upper hand in the market and can have momentary profits with it.Dubai has expected further growth in its tourism with adventure tourism seeking a growth by 15million visitors per year by 2015. This is mainly because of their extensive target market that encourages their traveller to take the benefits of not only a particular market but different markets during their time of visit. Dubai is the commercial centre for trade in middle-east and has one of the best trading facilities available to them that allows influence from both the emerging powers from the east and take the ideas and perceptions of west. Threats: One of the main threats to Dubai is its rival competitors because of their cost effectiveness.Neighbouring cities like Abu Dhabi Sharjah and Muscat. They are more cost effective than Dubai and have the same cultural and traditional facilities that are at the availability of the visitor. Nowadays cities like Prague and Istanbul are growing rapidly due to their cost effectiveness they provide the same type of tourism i. e. cultural attractions and have a good infrastructure for modern tourism. Market Positioning: Dubai has many ways of marketing itself and positioning itself in the market. It uses different forms of media like travel and tourism websites and different TV advertisements and different promotional tourism packages to promote itself in the market.One of their main promotion media is the emirate airline that is the airline started by Dubai emirate. It has a major market share in providing promotion for the destination. This has happened because emirate travels to almost all the major destinations in the world and is one of the largest operating airlines. Emirates airlines use marketing in both domestic and international market with its airlines. Competitors also use the same marketing strategy as Dubai like Singapore markets its destination in Singapore airlines and Hong Kong uses its Cathay Pacific for marketing. They mainly use guests with a long layover an option of the city tour which attracts and creates new guest as they get attracted to the city and feel like coming again.Hence market positioning strategy of Dubai is same as that of most of its competitors. Future plan of Dubai to endorse tourism and have competitive advantage above its competitors: Strategy 2015: According to (Depart of Tourism and Commerce of Dubai, 2013) it is the goals that Dubai has set in order to become the ultimate destination in the world. Travel and Tourism is one of the main sectors of Dubai and a strategic plan to thrust itself is necessary to have potential growth. The strategy is based on six main pillars * Human Capital It has developed world class training and development of human resource at all levels so that it can have development and training of employees at all the levels of tourism. * ProductivityDTCM has sophisticated technology to have an increased rate of productivity. It has e-commerce that helps in getting feedback from its customers and vendors that helps in maintaining efficiency. * Innovation DTCM has constant development with the introduction of their new website ‘Definitely Dubai’ that has helped the customers and industries in collaboration. This portal helps in the development and training the staff that is directly involved in tourism. * Quality of life Dubai has a very high standard of living. The rapid growth of the city has helped in the growth of quality of living of people, now they have very high income and have disposable income.Therefore it is possible for them to spend money in leisure and lifestyle facilities given by Dubai. * Institutional framework It is the type of framework that is developed for planning and tracking the development of the tourism sector so that the growth is monitored properly. It has developed DTCM which is the organisation that rates the hotels, restaurants and tour operators in Dubai. * Laws and regulations DTCM is responsible in issuing of licences to the operators. They also see that the operators are meeting the quality specifications set by DTCM. During the follow up that is carried on and see that none of them are exploiting or misusing the benefits provided by them.This helps in giving proper and quality of service to the tourist and have well satisfied guest and this helps in getting to the top of the ladder. These are the main pillars that Dubai tourism has set their standards to achieve their goals and their main target of having 30 million visitors every year. Conclusion: Dubai is one of the top rated destinations for tourism in the world. Earlier they relied on oil when they first discovered it during the 1970’s and had exploited it to a very large extent. The depleting sources has forced them to rely on new sources like tourism to keep the city ever-growing and having a decline in the growth. Mohammad bin Rashid Al Maktoum the sheikh of Dubai has developed a strategic plan for his priceless kingdom.He has set goals for Dubai that by 2015 it will have all its massive constructions making it not only the main destination for tourists but also the commercial hub for all the major companies. Product Strategy Earlier Dubai was considered as a dessert gem in the Middle East which was not known as a destination worldwide. It used to function as a small huts and kiosks in 1996 when the DTCM was formed. The government then identified the potential and developed the infrastructure. It vision was “To position Dubai as the leading tourism destination (DTCM, 2011a). Dubai has built an artificial island which resembles a world map. Due to which it has an advantage over it competitors. The main aim of Dubai is to attract high profile customer to boost the economy of Dubai.It has one more advantage of its geographical location as it situated halfway between Europe and Asia, few destinations takes more than 8 hours direct flight, only overnight flights from London, and 3 hours from Mumbai. Due to its geographical location it is convenient. Market Positioning Strategy Dubai is one of the top leading destinations in the world situated in the Middle East. It has positioned itself as a luxury destination. Due to economic crises there was a political instability but it has come out of it due the marketing strategies. The stages in which Dubai is now is called rejuvenation stage. It is trying hard to conquer the largest market share in the world.To do so Dubai is promoting itself to reach the mass through different mode of communications. Competitive Positioning Strategy: Advantages: * Country with abundant oil * Strategically positioned in the middle-east for trade and commerce. * Best in infrastructure (biggest mall, tallest building, largest man-made island) * Recently discovered gold mines that can be abundant resource for the future. * Dynamic and rapidly growing city. * Mix Cultural society and has a broad way of thinking. Brand Strategy: ‘Definitely Dubai’ is one of the best branding strategies that is used in the market to attract potential customers to the destination. * It projects the actual image that Dubai wants to project in its marketing. It is exclusive and exceptional exhilarating and adventurous. * Expresses an evident choice without hesitation. * It delivers all the promises that it assures. Definitely Dubai is taken from an Arabic art form and is made in Arabic calligraphy. It represents originality, easy going nature and awareness. It is written in red that depicts the contemporary style of the people and also depicts vibrancy. Marketing Mix Strategy: Marketing Strategy is a type of strategy that is used because it has all the factors that affect the strategy of the destination. They have the following main point’s product, price, place, people, physical evidence, promotion and process.Product: In the 1990’s Dubai was known for its oil and after the depletion of its resources it made its position in the tourism sector; it became one of the best destinations in the world and gained a major income from this sector. Price: Dubai has always had been a value for money thus making it one of the most cost effective destinations in the world. This has made it one of the best and effective pricing strategies. Place: It is placing the right target market for the right place which is important in selecting the type of people that come to the destination. People: Dubai has always had the best and the widest target market for its economy. This has had a lot of people coming to the city and this is the main target market of the city.Promotion: Dubai does its promotions in its events and it has one on the best taglines ‘Definitely Dubai’ which tells us that it has definitely got to be Dubai the best destination to host shows and various other events. References: Dubai Department of Tourism ;amp; Commerce Marketing. (2012). Retrieved from http://www. dubaitourism. ae/about/industry-segments Aaker, D. A. (2006, AUGUST 1). 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