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Strategic Marketing Plan For Oman Cable Industries SAOG

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This report is prepared for the Strategic Marketing Plan of the Oman Cable Industries SAOG which is in the business of selling industrial grade cables to the market of Oman, This report will present the market overview in light of the PEST analysis as well as the key competitors and the segmenting that this organization is looking at, further to that the report will also provide the situation analysis of the current situation that the organization is in as well as it will present the marketing mix and its different variables that the organization will use to achieve its marketing objectives. INTRODUCTION

The Oman Cables Industry is a corporate organization that was founded in the year 1984 in Oman at the Russayl area in order to contribute to the goal of development of the country of Sultanate of Oman, by Mr. Mustafa Mukhtar and Mr. Hussain Salman. The main products that the organization is involved in is that of XLPE and PVC Insulated Power Cables that meet the requirements of international standards like BS, IEC, VDE, these are generally crafted according to the customer specifications and requirements. This company has continuously managed to grow every year, the first year turnover for this company was Omr seventy five thousand but today this has increased up to Omr two hundred and seventeen million. The Vision of Oman Cables Industry is “To ensure that through our product offering, we remain a leader in our industry in quality and performance, exceeding the expectations of our customers and stakeholders” The Mission Statement of Oman Cables Industry is “To continuously strive for excellence in all aspects of our business through the integration of sustainable business development and innovation, enhancing shareholder value and outstanding customer service”


PEST Analysis
The macro environment is that environment which is external to the organization and yet can have a huge impact on the operation of the organization that operates within its forces; the following is the PEST analysis that has been conducted in Oman and highlights the main forces and factors that can affect the Oman Cables Industry. It will focus on four main components which are the Political, the Environmental, the Social as well as the technological forces.

The different political forces that could affect the operation of the Oman Cables Industry could be those such as the political stability in the country as when there is instability the trade and industries will decline but in the case of Oman the political climate is very stable and strong, secondly the taxation policies that are adopted in the country of Oman can affect the profitability of the company and in this case also Oman is having a non burdensome taxation structure that is just and fair, the Oman government is also providing many of the new industries and trade which are starting in this country with lots of facilities to help them to grow and develop along with the countries and is giving high importance to infrastructure project which very much require these types of cables. Economic

The economic forces that can affect the operations of this organization maybe those such as the growth rate of the economy as the company will be more profitable in those environments where there is fast economic growth and within the gulf region Oman is seeing a good growth rate that the other counterparts and this was around 9 % for 2008-2009.The rate of inflation is maybe a negative economic factor and this is seen to be a little high but always in a country which is growing it can be seen that this is normal and the rate was around the level of 3-4 percent in the year 2010. (http://www.arabianbusiness.com). The exchange rate of the country is also quite stable and can allow the companies such as Oman Cable Industries to do importing and exporting of their materials without large problems.

Oman is an Islamic State and follows these values in its society; however there is also a large and vast presence of expatriates in the country and the socio cultural environment of this country can be termed as multicultural. From the last few decades there has been a gradual growth in the modernization of this country and people are changing their outlook and looking for the progress of the country, this has made society to give a lot of importance to the growth and development of the country and this is helpful to organizations like the Oman Cable Industry as these form an important component in the modernization of the country. Technological

These factors are also very positive to the Oman Cables Industry as the country of Oman is witnessing an improvement in its technological arenas as the telecom and the internet sectors are witnessing much growth and development as well as the electricity and water project are being undertaken in the remote areas of the country which will further fuel the need for more cable as these are the basis means of connectivity which are being used.

A key competitor for the Oman Cables Industry company is that of “Al Kiyumi Electric And Trading Co. LLC” which was founded in the 1970s, this company is also one of the leading electrical supplier that is functioning in Oman and its portfolio included a wide range of electrical as well as Cable supplies. It produces a wide variety of large cables for the Oman industry as well as they are also involved in the import of certain forms of cables that cannot be manufactured in Oman locally. The other competitor who has recently been established in comparison to the other two companies is that of SURTECH Engineering Services, They are the main agents for POLYCAB cables which is a world renowned cable manufacturer which is rapidly expanding its markets all over the world. They also have a large number of internationally approved cables which are well known for their durability and quality. They are increasing their position in the gulf countries as well as Oman. SEGMENTATION AND TARGETING

Oman Cables Industry is an organization that deals with providing industrial grade cables to be used for a wide range of products, the products are produced by it locally to supply to the local market. The main products are LV power and control cables, MV power and control cables and finally Instrumentation cables which are industrial cables and hence the segmentation that is being used by the company is that of: Industry Type Variables

Which is when the company segments its products and services based on the Industry type which is a collection of factors such as their requirements, the type of jobs that they undertake, the purpose of the cables, for examples customer like the Ministry of Telecom needs such cables which are suitable for telecommunications as well as underground use, while the Ministry of Power and Electricity will require cables that are different from such specification and are tailored to their unique needs. Customer Type Variables

Apart from the above segmentation bases this company also makes use of customer type segmentation based on customer specification such as the frequency that they purchase as well as the size of the organization as well as the buying patterns and policies. As far as the Targeting of this company is concerned, it does attempt to target all the companies in Oman that are having a potential for use of Cables, however due to the limited production capability and given the rapid demand increase in line with the growth and development of the country the company is currently targeting to establish long term supply relations with the different Ministries in Oman and also looks for similar long term contracts with other Organizations.


Strengths- Weakness- Opportunities-Threats Analysis

This company has been able to garner for itself a large amount of brand name and reputation through serving the Oman Market from a long and continuous period The company is very much focused on the quality of its products and has in place a very effective material sourcing system that enable them to produce high quality cables. The company has a very wide and a diverse portfolio of cabling products and services. The company maintains a very wide distribution network which enables it to ensure that its products and services are able to reach all the parts of the country. The company also already has a large number of contracts with different organization for the provision of cabling on a long term basis which make it difficult for the competitors to succeed. Weakness

The marketing and advertising of the products and services that are provided by the company are not very well done. At present the production capacity is limited by the machine capacity and it is not possible to scale the production with the increase in the demands from the market. The research and development activities are not being given priority and the company has not been able to come up with any new and improved products. The company does not offer any import facility of the cables that are not available with it, which means that there are supply and demand gaps in the market. Opportunities

There are opportunities to offer more service in relation to the cabling products that are being sold, such as maintenance as well as inspection and testing of the products and services. The company can also look at increasing the supply of its products and services and then export the same to the neighboring countries which are also witnessing a revival of their economy and their industries. The company can look to expanding its production capacity as the Oman economy is developing and there are a large number of infrastructure projects which are being undertaken and which is creating a huge demand for the cables. The company can also look into moving into allied areas that are connected to infrastructure and make use of its expertise in these areas. Threats

The number of competitors that are entering into the industry is quite high; some of them are large internationally renowned companies that can reduce market share of Oman Cables Industry. Due to the industrial nature of the products and services that the company deals in the cash flow situation of the company is not very good and this can result in operational problems for the company in the long run. The different grades and the approval of the materials that are used in this area are always changing and in case the company cannot keep up then it may lose some of its contracts.


Al Kiyumi Electric and Trading Co. LLC


Good brand equity being present in the country for a long time.

Good supplier relations in international market able to import cables not available in Oman on time and at competitive pricing.

Wide variety of choice and brands available to the market.


Lack of in-house cables production unit.

Lack of long term contracts in the market for production and supply of cables.

Lack of marketing and relationship building efforts.

SURTECH Engineering Services


Internationally approved grade of material being used and approved by a large number of international companies

Increasing its presence and alliances in the Gulf markets.

Good and higher marketing initiatives by the organization to improve product awareness and brand image.


Lack of competitive pricing structure compared to others in the market.

Lack of production facility in Muscat that can respond to local standards and variations.


Under the Ansoff Matrix, the most appropriate strategy that could be applied by the Oman Cables Industry Company is that of the Market Penetration strategy as this a an appropriate strategy that can be used when the company is attempting to focus on selling products and services to its existing market and this is recommended give that the Oman market is witnessing a large demand for cables given the attempts of the government of the country to diversify the country as well as to focus on the development of the infrastructure of the country. Since the products are industrial grade products and services the use of the strategies of product development and that of diversification are not recommended as these are of a long term nature when used for industrial products and given the increase in the level of completion the company should take immediate action. The company can encourage new uses of the products as well as use competitive pricing and marketing for this.

The Oman Cables Industry can also make use of the GE Matrix in order to find out the way that it should take in order to move forward. In order to attempt this it will have to rate its products and service on the basis of market attractiveness as well as competitive strength, since the company is a strong producer in the LV cables market as well as there is a high demand in this area it is recommended that the company go in for this area and invest in this area whereas the HV cables industry is facing high competition from international brands that are providing higher quality and higher durability the company should look to divest from this area. INVESTLV Cables | INVEST| SELECTIVE INVESTMENT|



1. Increase the current market share of the company by the end of the year 2013. 2. Conduct more promotional activities to inform the customers of entire range of products by 30 %. 3. To launch two new variants of cables before the end of the year 2013. 4. Conduct more marketing analysis and marketing research 5. Conduct relationship building activities with at least 50 % of existing customers and promote existing products. 6. Increase the specification of the current line of products and convey the same to the customers in the market.


The price is an important factor as far as the cables industry is concerned as these are often of substantial values and amount and can add a significant amount to the cost of projects etc. the price is very much dependent on the production costs as well as that quality and the grading of the cables that are sought to be used. In order to achieve the objective of increasing the market share, the Oman Cables Industry will utilize the method of offering much bulk discounts on the purchase of the cables for large projects which will enable it to increase the revenue. In order to launch the new product the company will price them at a cost basis to enable to companies to test and to gain market share. Product

The product that the company is seeking to provide to the customers will essentially be built upon the same existing products and services. The specification of the current product will however be broadened to meet more local and international standards and these will then be conveyed aggressively to the customer to help them to increase the sales as well.The two new products which are to be launched by the end of the year 2013 would be those which have been identified as the one which the company is not currently having while the competitors are having or are importing and are also demanded by the market, this will enable the company to increase upon the current market share of the company.

The place of the promotion that the Oman Cables Industry wills utilize is also an important factor that needs to be considered, the distribution intensity that is appropriate to be used in this case is that of Exclusive Distribution. These will usually be concentrated towards providing of the materials at the place of the customer as these are heavy goods and need specialized form of transportation to the end place, the company will set up for this purpose three main points of delivery one in Muscat Region one in Sur and one in Salalah in order to achieve the end result of making it possible to not only launch new products but also supply bulk to buyers. Promotion

The PR activities that will be undertaken will be to highlight the work and projects that have been completed by the organization through publication in magazines and journals as well as the existing portfolio will be discussed by a key sales engineer with important clients to let them know the different range of products and services that can be supplied by the organization. Trade fairs and exhibitions that are held for industry are also a good place where from the companies can seek to increase its reach to the current customer and make them aware of the products and services. The method of advertising in newspaper, trade and industry journals as well as direct marketing to the existing suppliers will be used in the case of the new products which are to be launched. Different relationship building exercises will also be conducted to improve relations between the parties and build long term partnerships.

Resource requirements

Such as large marketing campaign will require a large number of activities to be carried out on behalf of the company and hence will require the use of adequate number of resources will be required for this purpose. There will be the requirement of the use of different means of communications such as internet, telephone and other means so as to communicate and build relations with the customers. There will be two sales engineers who will be required for this purpose and who will look into the aspect of the sales promotion through direct sales. There will be the requirement of the marketing personnel who will be one single person and will have the expertise to supervise the achievement of each ove of the above objectives. The money to be invested in this exercise would be quite high and would touch around the figure of Omani Rials One Million including the materials and the machine used. The material that will be required will be that of new raw materials and other to be used for promotion. There will need for machines of preparing the two new cables and this can be done by the modification to existing machinery sets,


* Chernev, A., (2009). Strategic Marketing Management, 5th Edition. 5 Edition. Brightstar Media, Inc. * Aaker, D., (2009). Strategic Market Management (Strategic Market Managment). 9 Edition. Wiley * Parry, M., (2001). Strategic Marketing Management: A Means-End Approach. 1 Edition. McGraw-Hill. * Zeithaml, V., (2002). Services Marketing. 3 Edition. McGraw-Hill/Irwin WEBSITES

Oman Cables, (2010). About Us. (Online). URL: http://www.omancables.com (Date Visited: 20th July 2012)

Jaju, A., Joiner, C. and Reddy, S. K. 2006,”Consumer Evaluations of Corporate Brand Redeployments”, Journal of the Academy of Marazketing Science, Volume 34, No. 2, pages 206-215, George Mason University and University of Georgia.

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