kế hoạch marketing xuất khẩu lao động trong lĩnh vực cơ khí, xây dựng xâm nhập vào thị trường của nền văn hóa trung cận đông e

KẾ HOẠCH MARKETING XUẤT KHẨU LAO ĐỘNG TRONG LĨNH VỰCCƠ KHÍ, XÂY DỰNG XÂM NHẬP VÀO THỊ TRƯỜNG CỦA NỀN VĂN HÓA TRUNG CẬN ĐÔNG Topic: Marketing planning for the product of company can enter

KẾ HOẠCH MARKETING XUẤT KHẨU LAO ĐỘNG TRONG LĨNH VỰC

CƠ KHÍ, XÂY DỰNG XÂM NHẬP VÀO THỊ TRƯỜNG CỦA NỀN VĂN HÓA

TRUNG CẬN ĐÔNG

Topic: Marketing planning for the product of company can enter the market of

Middle East countries Cultural (Saudi Arabia, Iran, Iraq)

Product: Labor exporting in the fields of Mechanical Engineering, Building

Market: Saudi Arabia market

TABLE OF CONTENTS

Foreword

I.1 Analysis of macro environment

1 Geography and population

2 Politics

3 Economic Environment

I.2 Analysis of the industry environment

1 The needs assessment

2 Competitive Analysis

II ANALYSIS OF CULTURE’S EFFECT ON THE MARKET

1. Saudi Arab Culture

2. How do the cultural differences between Vietnam and Saudi Arab affectbusiness?

3 Positioning

4. Selecting a market segment

ForewordWhy choose this market?

When the potential labor market like Korea, Taiwan is at risk of closure toVietnam Labor due to "labor escape," labor exporting in country in general and forour company in particular is difficult to fill the labor contract signed with Malaysiapartners because low wage in Malaysia do not attract workers

So company needs to explore new markets like the Middle East, Japan, and

USA, to make sure to catch the market and achieve better business results We group

06 propose Company a solution for labor exporting to Saudi Arab market and this

is a safe and good income market (political stability) Middle East is considered as

the open market, capable of receiving large numbers of foreign workers, not specifyquotas as other countries Industries receiving the labor are much diversified, tonearly 100 industries Most labor-intensive industry is now building and mechanicalengineering The number of Vietnam labor-received in this market is verysmall Therefore, the Ministry of Labor - Invalids and Social Affairs organizes thebusiness and workers Supporting Program to recruit in this market Ministry of Labor

- Invalids and Social Affairs set a target from 2010 onwards, each year will export50,000 workers to Saudi Arabia

I ANALYSIS OF EXTERNAL ENVIRONMENT I.1 Analysis of macro environment

1 Geography and population

The Kingdom of Saudi Arabia al-Mamlakah al-‘Arabiyyah as-Sa‘ūdiyyah,commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah,

is the largest state in Western Asia by land area, constituting the bulk of the ArabianPeninsula, and the second-largest in the Arab World It is bordered by Jordan, and

Iraq on the north and northeast, Kuwait, Qatar and the United Arab Emirates on theeast, Oman on the southeast, and Yemen on the south It is also connected to Bahrain

by the King Fahd Causeway The Red Sea lies to its west, and the Arab Gulf lies tothe northeast Saudi Arabia has an area of approximately 2,149,690 km2 (830,000

sq mi), and it has an estimated population of 27 million, of which 8.8 million areregistered foreign expatriates and an estimated 1.5 million are illegal immigrants

Saudi nationals comprise an estimated 16 million people

2 Politics

Saudi Arabia is an absolute monarchy, although, according to the Basic Law of SaudiArabia adopted by royal decree in 1992, the king must comply with Sharia (that is,Islamic law) and the Quran The Quran and the Sunna (the traditions of Muhammad)are declared to be the country's constitution, but no written modern constitution hasever been written for Saudi Arabia, and Saudi Arabia remains the only Arab Nationwhere no national elections have ever taken place, since its creation

No political parties or national elections are

permitted and according to The Economist's

2010 Democracy Index, the Saudi government is

the seventh most authoritarian regime from

among the 167 countries rated

On 25 September 2011, Saudi Arabia's King

Abdullah has announced that women will have

the right to stand and vote in future local

King Abdullah of Saudi Arabia

elections and join the advisory Shura council as full member and be able to run ascandidates in the municipal election, but the King never yet mentioned about notallowing women to drive cars and to live a life without male guardians.

The Al ash-Sheikh and the political role of the ulema:

Saudi Arabia is almost unique in giving the ulema (the body of Islamic religiousleaders and jurists) a direct role in government The ulema have also been a keyinfluence in major government decisions In addition, they have had a major role inthe judicial and education systems and a monopoly of authority in the sphere ofreligious and social morals

Monarchy and royal family

The king combines legislative, executive, and judicial functions and royal decrees toform the basis of the country's legislation The king is also the prime minister, andpresides over the Council of Ministers (Majlis al-Wuzarāʾ), which comprises the firstand second deputy prime

The royal family dominates the political system The family’s vast numbers allow it

to control most of the kingdom’s important posts and to have an involvement andpresence at all levels of government

3 Economy Environment

Saudi Arabia is the 19th largest exporter and the 20th largest import market in theworld Exports now represent all economic sectors Topping the list of exports tosome 90 countries are petrochemicals, plastics, metal goods, construction materials,and electrical appliances.

Saudi Arabia's command economy is petroleum-based; roughly 75% of budgetrevenues and 90% of export earnings come from the oil industry The oil industrycomprises about 45% of Saudi Arabia's gross domestic product, compared with 40%from the private sector (see below) Saudi Arabia officially has about 260 billionbarrels (4.1×1010 m3) of oil reserves, comprising about one-fifth of the world'sproven total petroleum reserves

The government is attempting to promote growth in the private sector by privatizingindustries such as power and telecommunications Saudi Arabia announced plans tobegin privatizing the electricity companies in 1999, which followed the ongoingprivatization of the telecommunications company Shortages of water and rapidpopulation growth may constrain government efforts to increase self-sufficiency inagricultural products

Oil price increases of 2008–2009 have triggered a second oil boom, pushing SaudiArabia's budget surplus to $28 billion (110SR billion) in 2005 Tadawul (the Saudistock market index) finished 2004 with a massive 76.23% to close at 4437.58 points.Market capitalization was up 110.14% from a year earlier to stand at $157.3 billion(589.93SR billion), which makes it the biggest stock market in the Middle East.OPEC (the Organization of Petroleum Exporting Countries) limits its members' oilproduction based on their "proven reserves." The higher their reserves, the moreOPEC allows them to produce Saudi Arabia's published reserves have shown littlechange since 1980, with the main exception being an increase of about 100 billionbarrels (1.6×1010 m3) between 1987 and 1988 Matthew Simmons has suggested thatSaudi Arabia is greatly exaggerating its reserves and may soon show productiondeclines (see peak oil)

Saudi Arabia is one of only a few fast-growing countries in the world with a relativelyhigh per capita income of $24,200 (2010) Saudi Arabia will be launching six

"economic cities" (e.g King Abdullah Economic City) which are planned to becompleted by 2020 These six new industrialized cities are intended to diversify theeconomy of Saudi Arabia, and are expected to increase the per capita income TheKing of Saudi Arabia has announced that the per capita income is forecast to risefrom

$15,000 in 2006 to $33,500 in 2020 The cities will be spread around Saudi Arabia topromote diversification for each region and their economy, and the cities are projected

to contribute $150 billion to the GDP

However the urban areas of Riyadh and Jeddah are expected to contribute $287billion dollars by the year 2020

In December 2005, Saudi Arabia joined the World Trade Organization (WTO), asignificant development that gives Saudi products greater access to global markets,creates jobs and encourages foreign investment

Year 2010 GDP is approximately 676 billion USD; income per capita is about

$25.345/year

I.2 Analysis of the industry environment

1 The needs assessment

Foreign employees: Saudi Arabia is a destination for workers who are seekingemployment from South, East Asia, East Africa and the Middle East Hundreds ofthousands of unskilled labor from developing countries have migrated to SaudiArabia

In addition to United Arab Emirate (UAE) and Qatar, Saudi Arabia is considered asthe market demand for huge labor from Vietnam Ministry of Labor - Invalids and

Social Affairs said Saudi market can absorb hundreds of thousands of foreign

workers/year

Saudi Arabia is an easy market, which may receive unskilled workers and workerswith professional skills The areas with diversified needs: oil and gas, nurse, assistant,engineering, construction

Recruitment Criteria to Saudi Arabia is also suitable for Vietnamese: male from 21 to

50 years old, 160cm height and weighs 60kg or more, graduate secondary school or

higher; have no criminal records; healthy enough to work in foreign countries inaccordance with the Ministry of Health regulation Except for skilled workers theymust have work experience of two years or more.

2 Competitive Analysis

As mentioned above Saudi Arabia market can receive hundreds of thousands offoreign workers/year Overall this market is not limited quotas So this is a hugemarket for companies to exploit

According to the Ministry of Labor - Invalids and Social Affairs, in 2009, Vietnamexported to the Middle East about 10,000 workers, of which the workers exported toSaudi Arabia is very modest about 1,000 workers

About the competitor:

employees/week, for Philippine is over 10,000 employees/ week Vietnam still has tocompete with other strong labor exporting countries as China, India

However, recently, Indonesia request Saudi to sign a memorandum on the protection

of employees and said it will stop sending labors to Saudi Arabia until the note wassigned Indonesia has been discussed for months demanding Saudi Arabia to increasethe minimum wage for maids and ensure the working conditions for workers inIndonesia Philippine has also imposed more conditions in the recruitment and use oftheir employees Arabnews.com quoted a spokesman of the Saudi Arabia Ministry ofLabor Hattab Bin Saleh Al-Anzi that Saudi will find the labor supply and house maidsfrom other countries "because many countries are interested in sending labors to

Saudi.”The statement is an opportunity for other countries to exploit this market (including Vietnam).

Ministry of Labour - Invalids and Social Affairs has been promoting the program toexport 50,000 workers to Saudi Arabia each year This actually increases thecompetitiveness of our company in particular and Vietnam enterprises in general.

• Domestic competitors

Our company is one of the enterprises licensed to export labors to Saudi Arabia byMinistry of Labor - Invalids and Social Affairs (over 50 companies) so the domesticcompetitors is now the licensed enterprises When market is favorable it willstimulate other firms entering the market

Because market demand is not limited so competition among recruiting firms mainly

in the skill and high or low cost to export labor

The company should:

• Align with policies of supporting to send labors working overseas undercontracts for the nine provinces: Nghe An, Ha Tinh, Quang Binh, Quang Tri,Phu Yen, Khanh Hoa, Ninh Thuan, Binh Dinh and Hau Giang to recruit theworkers with the low expense that employees need to pay so labor supply herewill be large (because employees in the rural areas is mostly the poor if thecost is too high, they will not meet financial requirement)

• Recruit skilled labor from the training institution in the country

• Recruit the worker back from another country because these people haveexperience working abroad

• Do well in training and retraining skills, foreign language proficiency foremployees Educate knowledge of Arab culture for employees Also need toeducate them about the typical cultures of China, Japan, U.S., Europe for thembecause there are many foreign workers come from different nationalitiesworking and living in Saudi Arabia

II ANALYSIS OF CULTURE’S EFFECT ON MARKET STRATEGY

1 Saudi Arabia Culture

The pilgrims are praying at the Masjid Al Haram Mecca

Water Park at Ri-ace

Saudi Arabia is a very conservative country with centuries-old attitudes andtraditions, often derived from Arab tribal culture This conservative tendency has beenbolstered by the austerely puritanical Wahhabi form of Islam, which arose in theeighteenth century and now predominates in the country The many limitations onbehaviour and dress are strictly enforced both legally and socially Alcoholicbeverages are prohibited, for example, and there is no theatre or public exhibition offilms Public expression of opinion about domestic political or social matters isdiscouraged There are no organizations such as political parties or labour unions toprovide public forums

Daily life is dominated by Islamic observance Five times each day, Muslims arecalled to prayer from the minarets of mosques scattered throughout the country.Because Friday is the holiest day for Muslims, the weekend begins on Thursday Inaccordance with Wahhabi doctrine, only two religious holidays are publiclyrecognized, ʿĪd al-Fiṭr and ʿĪd al-Aḍḥā Celebration of other Islamic holidays, such asthe Prophet’s birthday and ʿĀshūrāʾ (an important holiday for Shīʿites), are toleratedonly when celebrated locally and on a small scale Public observance of non-Islamic

religious holidays is prohibited, with the exception of September 23, whichcommemorates the unification of the kingdom

Islamic heritage sites

Saudi Arabia, and specifically the Hejaz, as the cradle of Islam, has many of the mostsignificant historic Muslim sites including the two holiest sites of Mecca and

Medina.One of the King's titles is Custodian of the Two Holy Mosques, the twomosques being Masjid al-Haram in Mecca, which contains Islam's most sacred place,the Kaaba, and Al-Masjid al-Nabawi in Medina which contains Muhammad's tomb

However, Saudi Wahhabism is hostile to any reverence given to historical or religiousplaces of significance for fear that it may give rise to 'shirk' (that is, idolatry) As aconsequence, under Saudi rule, the Hejaz cities have suffered from considerabledestruction of their physical heritage and, for example, it has been estimated thatabout 95% of Mecca's historic buildings, most over a thousand years old, have beendemolished.These include the mosque originally built by Muhammad's daughter

Fatima, and other mosques founded by Abu Bakr (Muhammad's father-in-law and thefirst Caliph), Umar (the second Caliph), Ali (Muhammad's son-in-law and the fourth

Caliph), and Salman al-Farsi (another of Muhammad's companions).Other historicbuildings that have been destroyed include the house of Khadijah, the wife of theProphet, the house of Abu Bakr, now the site of the local Hilton hotel; the house ofAli-Oraid, the grandson of the Prophet, and the Mosque of abu-Qubais, now thelocation of the King's palace in Mecca

Critics have described this as "Saudi vandalism" and claim that over the last 50 years

300 historic sites linked to Muhammad, his family or companions have been lost Ithas been reported that there now are fewer than 20 structures remaining in Mecca thatdate back to the time of Muhammad

Dress

Saudi Arabian dress strictly follows the principles of hijab (the Islamic principle of

modesty, especially in dress) The predominantly loose and flowing, but covering,garments are suited to Saudi Arabia's desert climate Traditionally, men usually wear

an ankle length shirt woven from wool or cotton (known as a thawb), with a keffiyeh

(a large checkered square of cotton held in place by a cord coil) or a ghutra (a plainwhite square made of finer cotton, also held in place by a cord coil) worn on the head.For rare chilly days, Saudi men wear a camel-hair cloak (bisht) over the top Women'sclothes are decorated with tribal motifs, coins, sequins, metallic thread, and appliques.Women are required to wear an abaya or modest clothing when in public.

• Ghutrah (Arabic: هرتغ) is a traditional headdress typically worn by Arab men

It is made of a square of cloth ("scarf"), usually cotton, folded and wrapped invarious styles around the head It is commonly worn in areas with an arid

climate, to provide protection from direct sun exposure, and also protection ofthe mouth and eyes from blown dust and sand

• Agal (Arabic: لاقع) is an Arab headdress constructed of cord which isfastened around the Ghutrah to hold it in place The agal is usually black incolour

• Thawb (Arabic: بوث) is the standard Arabic word for garment It is anklelength, usually with long sleeves similar to a robe

• Bisht (Arabic: تشب) is a traditional Arabic men’s cloak usually only worn forprestige on special occasions such as weddings

• Abaya (Arabic: ةيابع) is a women's garment It is a black cloak which looselycovers the entire body except the head Usually, the sleeves are decorated withstitched embroidery and different bright colors or even crystals, and the rest ofthe cloak is plain Some women choose to cover their faces with a niqāb andsome do not Recently, there's a move towards Abaya colors other than blackespecially in the Makkah Province in the west of the Kingdom

• Kameez/Kurta Shalwar is a men's and women's garment It is worn byPakistani people in Saudi Arabia

1 How do cultural differences between Vietnam and Saudi Arab affect on business?

1.1 The egalitarianism/hierarchy Countries ranked by the egalitarianism/hierarchy