- Introduction
Companies in Kuwait that wish to market their products are faced with challenges and problems that are peculiar to this country. Kuwait has a small, wealthy and relatively open economy that has been growing steadily since the gulf war . The main source of Kuwaiti income is crude oil that contributes 95% to the country export and income . The country is highly dependent on international trade for consumer goods as it does not have sufficient local production of these goods . Kuwait population has large disposable income and are likely to buy products manufactured by foreign companies . Kuwaitians have high interest in foreign countries .
- Problems Faced by Companies in Kuwait
The key marketing problems faced by various companies in Kuwait are:
- Changing Tastes and Interests of Consumers
Kuwaiti interests and tastes tend to change as they switch from traditional to new and trendy . Kuwaitis travel frequently in the areas of Europe and US and are therefore aware of the latest fashion and marketing trends that makes it challenging for companies to stay relevant to the consumer for a long time .
2.2 Indifference of Business Management to Marketing Programs
One of the major challenges of marketing in Kuwait includes the indifference shown by the business management towards marketing programs . Marketing programs need to be designed carefully after analyzing the business environment and the tastes and needs of the consumers. The passive approach of management towards marketing activity results in the development and promotion of outdated products and services, thus impacting the company profitability in the long run .
2.3 Fierce Competition
Local companies in particular face tough competition from larger foreign companies as the consumers prefer foreign products in comparison to the local products .
2.4 Inadequate Market Research
Companies that do not conduct appropriate market research to understand the needs of the consumers face challenges in the Kuwaiti market such as product failures or lack of product innovation.
2.5 Lack of Funds
Companies do not have adequate funds to conduct promotional activities to create the awareness about their products among the consumers. Such problems are common in small businesses operating in Kuwait. Companies such as small businesses do not have enough resources and skills to promote their products in the various traditional and digital media that limits their growth.
2.6 Product Quality
Product quality is a major factor that contributes to the failure or success of a product launched in the Kuwaiti market. Companies that are unable to produce good quality products face losses as marketing of low quality products generates negative customer feedback, and may also position the brand as that of inferior quality in the minds of the consumers.
2.7 Untrained Sales Force
Companies that have an untrained sales force that is unable to convince the customers to buy the product face limited product sales and therefore achieve lower profits. Trained and efficient sales personnel can engage with the customers and close the sales deals for the company. Companies do not have the necessary skills to engage in customer relationship and retention activities and this factor limits their growth in the Kuwaiti market.
2.8 Cultural Barriers
The Arabs consider business and personal relationships to be almost the same and therefore Arabs prefer to do business with the people they like and know . Arabs are proud of their local language Arabian and the language is a uniting force across the entire Arab world including Kuwait . Marketing companies, particularly MNCs face language as a barrier as they need to customize their solutions and product promotions in Arabic language to target the local customers.
2.9 Organizational structure and Work Culture
Gulf based organizations have a complex organizational structure and are often difficult to penetrate . In order to close big deals with Gulf companies based in Kuwait, MNCs need to take the help and guidance of local people experienced in sales and marketing in the region . Arabs prefer face to face communications over phone calls and email . Corruption and favoritism are another major problem that poses a challenge to the growth of marketing companies in Kuwait.
- Conclusion
Companies need to adopt localization strategies and customize their products and services to suit the needs of the local customers. Businesses should promote marketing as an independent business unit in their organizations and utilize the benefits derived from a trained workforce that can efficiently design and conduct marketing programs in Kuwait.
Works Cited
Alhajeri, Abdullah S B J. "The Financing and Success Factors of Small Business in Kuwait." PhD Thesis. n.d. PDF.
Al-Kazemi, Ali A. and Abbas J. Ali. "Managerial problems in Kuwait." Journal of Management Development (2002): 366 - 375. PDF.
Doronin, Dmitry. "Macro-level Market Analysis of Kuwait." Thesis. 2013. https://www.theseus.fi/bitstream/handle/10024/55142/Kuwait.pdf?sequence=1.
Irfan, Mohammad. 12 Tips for Doing Business in the Middle East. 2010. http://www.businessknowhow.com/manage/middleeast.htm. 6 July 2014.
Welsh, Dianne H.B., Peter Raven and Nasser Al-Mutair. "Starbucks International Enters Kuwait." Report. n.d. PDF.
