Market Entry Strategy

Abstract

This paper aims to study Lebanon’s market, which is a new market that is going to be entered by the Jordanian company, Mlabbas, in order to expand its business and become an international company, also it studies the Lebanese consumers perception towards apparel markets.
The goal and the main objective of this paper is to create an accurate and realistic picture of Lebanon’s market as a whole including economic, political and cultural and social analysis as well as the customer opportunities and challenges needed for this expansion in Lebanon’s new market. Mlabbas’s unique products are studied in details in terms of describing, pricing decisions, channels of distribution decisions and promotion decisions. Further more, the areas where Mlabbas stores will be open, especially Downtown Beirut, is going to be mentioned and estimated for future support for new retail space in its market area.

Table of contents

CONTENTS | PAGE NO. | Abstract | 2 | Introduction | 4 | Part|- Market Analysis | 5 - 13 | Part ||- Market Entry Strategy | 14 - 20 | Conclusion | 21 | References | 22 |

Introduction
Market entry strategy is the arranged system for conveying goods and services to another target market and dispersing them there. In this project the Jordanian business, which is Mlabbas will expand its stores and business into Lebanon’s market in order to achieve its goal in becoming a bigger and an international company.
Lebanon is known that is the home of fashion and unique trends and the aim of Mlabbas is to ensure this fact by offering more unique products that will specialize Lebanese people. Lebanon is a developing country that is able to welcome any type of new business to its market in order to expand it and increase its income. Despite that Lebanon is seen as a small country it has a big market potential.
Mlabbas offers unique and different products and services that are special for it, with a high quality and affordable prices by all levels and ages of customers. The products can be customized too, conveying what’s on customers mind into tangible things or items. Mlabbas is connected to its customers through stores or booths, in Beirut, Lebanon’s capital, that was one regarded as “ Paris of the Middle East”, in a way to reach them more easily and quicker.

Part |: Market analysis
Brief history
Lebanon has been the home to a several civilizations throughout a huge number of years, including the Phoenicians, Romans, Greeks, and Ottomans. Currently, it has a standout amongst the most different people in the Arab world regarding the religion and the ethnicity.
Lebanon is a little Arab nation surrounded from the east and north by Syria, on the south by Israel and on the west by the Mediterranean, and.as its legislative center is Beirut, which was once named the Paris of the Middle East. Its countryside is a position of rocks, cedar trees and sublime remains that look down from the mountains to the ocean. Also, Lebanon is known by that it is the only area in the Middle East, which doesn't have a dessert; in addition, it goes through an essential clear four seasons Mediterranean atmosphere with rainy winters, moderate springs, warm summer and consistent autumns. Alongside the developments' effect that occupied Lebanon through a huge number of years came to its top in the second half of the twentieth century, when Lebanon delighted in flourishing, a free economy and the title of Most Civilized and Democratic nation of the area.
On the other hand, this did not keep going long. The major Arab-Israeli struggle has found in Lebanon an arrival on which to move the battle. Syrian, Palestinian and Israeli strengths overwhelmed the Lebanese region moving their battle, subsequent to the 1970's to the nonpartisan nation, too little to guard herself. Damages, and a huge number of setbacks who are mostly Lebanese people, transpired in Lebanon. At the same time, moderately minor occasions were going ahead in the neighboring nations, which are Syria, Jordan, Egypt, Israel and the Palestinian domains. The UN Security Council issued a few resolutions with respect to Lebanon, which were issued, however the greater part of them were never authorized.

Cultural and social analysis
Languages:
The majority of Lebanese people are known by their Multilanguage speaking, as they speak Arabic; which is the official national language, with either French or English or both of them fluently; in addition to more languages that may be spoken too, such as Armenian and Greek. Religion:
Lebanon formally sees 18 religious groups of Christianity, Islam and Judaism, however there is no any official religion in it. The assessment of religion dispersion in Lebanon now is around 1% minorities, 60% Muslims and around 39% Christians. Religious stands out are fused from government and legislative issues. Christians are guaranteed half of the seats in parliament. The President is a Christian dependably yet the Prime Minister and the Speaker of the House are Muslims; then again, the Druze is allowed 8 seats in parliament. Religion influence roughly all the way of life regions for instance the family like partition, division, youth consideration, and legacy are dealt with in religious courts and there is not a uniform system for all occupants. The overall public money related approach incorporates only the usage of platitudes got from the monetary parts of free or private endeavor. Thusly, there are neither social nor religious effects nor preventions in the way business is driven.

Cuisine:
The Lebanon cuisine is the example of the Mediterranean diet. The Lebanese appreciate hommus, fool, and some other dishes of bean. Rice is a main dish, salted yogurt is basic in numerous dishes, meat and chicken are regular however are normally taken as a feature of a dish; on the other hand, Pork is less mainstream, as it is illegal below Islamic law.
Individuals almost never eat alone in Lebanon as eating is fixed to families. The Lebanese consider eating out a social experience. Subsequently, eating in restaurants is interesting because of the pleasant view that they usually have because of the Lebanon’s geography that affords many. The Lebanese have spread their cooking to all the parts of the world as it has turned out to be understood in fine eateries in London, Paris, New York and Sidney serve tabbouleh, kibbeh, hummus and babagannouj.
Clothing:
Nowadays, Lebanon is known by it is the most fashionable country in the Arab world because its people are very modern and up to date to the new fashion trend and because of that it is very hard these days to find the traditional cultural clothing.
In spite of the decreasing of the conventional dress, there is still a connection to it in Lebanon such as the Arab hat in some villages.
Because of the various cultural controls, the overall population of Lebanon experiences the unkind effects of particular national distinguishing proof. Aside from this, the customary qualities and society of this nation are stunning which can be seen at celebrations, services and people exhibitions.

Myths and superstitions:
There are many common and different Lebanese myths and superstition that people keep saying, and here are some examples of them:
- Itching and scratching which depends upon where you scratch and by what as everything means something other than what's expected; such as, scratching with your right hand means that you are either receiving money, or you are going to shake hands with somebody, while utilizing your left hand means you're going to burn through cash. On the other hand, scratching your nose means you're going to hear terrible news or you'll be unhappy at something.
-When you take your shoes off and then find that they are crossed; one on the top of the other, this means that you are going to go out again or if your shoes is upside down, this is a bad luck for you.
-Purse on the floor means that you are going to broke soon.
-When there is humming in your ear this means that there is someone who is talking behind your back.

Foreign Investment:
Lebanon has a very rich investment atmosphere that welcome overseas investments. The government provides incentives to attract both, local and foreign investments, by having low income tax quantities for individuals and industries. This has placed the country on the center of the economic diagram of the Middle East as a rout of multiple foreign multinationals.

Beauty: Lebanese people are popular with their beauty. From the viewpoints of the sociological and the social-psychological, beauty in Lebanon is seen as the eventual form of its social capital. For the present generations of Lebanese, the most essential part is image by the way you present yourself to society, even if it costs spending further than your incomes and collecting debt.
Education:
Inspirations can be seen in the Lebanon’s education system, remaining mostly to the country’s mixed population and the long history of overseas intervention. French missionaries are the first who started educational activities in Lebanon. Primary and secondary schools till know track the French system but universities are mostly based on the American standard. The usual Christian and Islamic effects have a significant responsibility in modeling the education system until these days.
Since 1997 and 1998, Lebanon’s educational organism has been experiencing chain of basic changes directed at modernizing progressions and methodologies of teaching while ensuring that the educational programs are more related to the necessities of local and international labor markets.

Economic analysis:
Population Size of Lebanon:
The extent of the population in Lebanon boosted from 2.6 millions to 4.3 millions, from 1980 till 2010. There is an expectation that the population will continue on growing to touch 5.323 million in 2045, then it is decline till it reaches 5.316 millions in 2050.

Population Growth in Lebanon:
The development rate of the populace in Lebanon changed all through the periods 1980-1985 and 2000-2005 in the midst of 0.20 for every penny and 4.18 for each penny, and took at 1.70 for every penny in 2005-2010.
Lebanon’s country’s business environment is:
- That has nowadays rebuilt its organization, by 80% of the fundamental infrastructure improved exploiting the finest technologies
- That has started a procedure of local capital business sector advancement and got too much of the time universal markets and that has as of late propelled top to bottom development arranged measures went for invigorating the economy.
- Lebanon's liberal economy depends on rivalry and private proprietorship. Administrations and keeping money divisions prevail, speaking to 70 per cent of the nation's gross national item. Agribusiness comprises 10 per cent and the mechanical part comprises the staying 20 per cent.

Lebanon GDP:
GDP is derived from Gross Domestic Product, and the GDP in Lebanon was worth 45.73 billion US dollars in 2014. The GDP valuation of Lebanon expresses to 0.07% of the domain economy. GDP in Lebanon has reached the center of 20.37 USD Billion from 1988 till 2014, coming to a record-breaking great of 45.73 USD Billion in 2014 and a record low of 2.72 USD Billion in 1989. The World Bank reports GDP in Lebanon.
Inflation:
The Lebanese economy has been adversely influenced by a continuous political stop and, in ahead of schedule September, parliament neglected to choose a president for the 29th time in the most recent year as the nation's two primary political pieces couldn't concede to an applicant. The political stalemate, which is preventing the legislature from pushing ahead with vital monetary changes, has additionally started vicious exhibitions. Also, the nation is experiencing the overflow impacts of the common war in Syria and over a million displaced people have fled to Lebanon so far this year.
Trade Challenges:
Beginning another industry in Lebanon, is generally straightforward as well as open to all, however trivial debasement is an subject. As indicated by the World Bank's opening a business in Lebanon involves a normal of 5 stages and 9 days, contrasted with the normal of 8.2 stages and 20.9 days in the MENA district.
As per Transparency International's 2011 Corruption Perception Index, Lebanon positioned 134 out of 183 nations overall and 14 out of 20 MENA nations. Outside organizations take griped about hindrances, for example, self-assertive permitting choices, high expenses and expenses, high information transfers charges, poor force administrations, moderate Internet administrations, differing understanding of laws, and an absence of satisfactory insurance of protected innovation.

Political and legal analysis
Politics of Lebanon:
Lebanon is a parliamentary fair republic inside of the general system of confession booths. The constitution gives the general population the pleasure to adjust their administration. On the other hand, from the mid-1970s until the parliamentary races in 1992, common war blocked the activity of political rights. As per the establishment straight races must be assumed for the parliament like clockwork. The Parliament, thusly, chooses a president like clockwork to a solitary term. Lebanon’s President is not qualified for re-race. The latest presidential race was in 2008.

Foreign relationships:
For Lebanon's initial three decades or so of autonomy, the remarkable component of its remote arrangement was its friendly relations with various nations. In the mid 1970s, around eighty conciliatory delegates were licensed to Beirut. As anyone might expect, the Ministry of Foreign Affairs was one of the biggest and most imperative services in the Council of Minister.

Regulations affecting marketing of apparel markets:
The worldwide clothing industry saw two particular emergencies in the previous years. The primary emergency is an administrative one, and it reached out over a time of ten years between (1995-2005). Amid this period, the World Trade Organization has eliminated the Multi-Fiber Arrangement that concocted special duties and portions on clothing imports of the US, Canada, and numerous European nations. The second emergency is a monetary one, and it happened at the season of the worldwide subsidence in 2008. The retreat influenced attire generation, prompting plant shutdowns and sharp laborer cutbacks in the division.

Intellectual property rights:
The copyright commercial ventures in Lebanon provide 4.74 per cent to GDP and 4.54 per cent to work. The legislature has an awesome part to play in creating so as to implement the protected innovation rights mindfulness midst the Lebanese individuals on the significance of such measures. It is not adequate to implement the law but rather individuals ought to be educated about the significance of this concern following by the initial training, and by this the part of the Education services come. Regarding licensed innovation, the rights are one of the fundamental states of joining the world trade organization.
Lebanon is a participant to a few global understandings identifying with protected innovation rights and began the procedure for promotion to the world trade organization, however couldn't join until today in view of its inability to legitimately execute the fundamental needed conditions.

Part ||: Market Entry Strategy
Introduction:
I am going to open and expand my Jordanian business, which is called Mlabbas, into the Lebanon’s market as Lebanon is considered as a developing country.
Mlabbas is an apparel business that makes variety of customizable designed products specially t-shirts for customer according to their orders, or the customers can just visit the store or the website and pick what ever they like, with a very comfortable prices that can be afforded by mostly all types of people and with all sizes.
My product is about doing and printing what ever the customer wants or wishing to have from designed words, picture, slogans, and even logos or anything else on a variety of products including, apparel, mugs, bags, phone covers, pins, aprons, as well as pillows.
Mlabbas objective is to keep the smile on every customer’s face by printing whatever is special to them or make them laugh, that comes along with remember Mlabbas’s role in that.
Lebanon's retail movement has generally been supported by the huge yearly convergence of Arab voyagers and Lebanese ostracizes into the nation. This has brought about the reliable and consistent extension of the nation's clothing division. Indeed, over the period 2009-2012, Lebanon's clothing business sector size developed by a normal yearly rate of 3.9%, showing a promising retail area. Then again, the present nearby political stalemate and security flimsiness combined with overflow impacts from the neighboring Syrian emergency have weighed vigorously on the tourism division, subsequently demoralizing tourism in Lebanon. The drop in traveler landings and the subsequent decay of vacationer spending contrarily influenced the development of Lebanon's attire market, which was at that point confronting lower neighborhood request because of reducing acquiring force. In that capacity, Lebanon's attire business sector size shrunk by 4.3% in 2013 recording an expected estimation of USD 580 million.
Attire request in Lebanon is for the most part fulfilled through imports, given the nation's constrained limit for household clothing generation. Truth be told, high generation cost, furious outer rivalry, and also low traditions obligation on imported materials and dress limited the extension of household clothing industry. Consequently, Lebanon has dependably been a net clothing merchant. Amid the year 2009, nearby generation involved 27% of Lebanon's clothing business sector while the staying 73% comprised of imported attire. On the other hand, as the nation saw a financial log jam in the previous couple of years alongside confronting expanded outside rivalry in the area, the offer of nearby clothing makers fell by five rate focuses to 22% of Lebanon's attire market while the offer of imports extended to 78%.
Target market and positioning
My target is to reach all the classes of people from top to lower classes with all ages. Downtown Lebanon's essential aim buyer markets for marketing, administrations, as well as diversion incorporate various kinds inhabitants, representatives, understudies and guests also.
Making an unmistakable position, in respect to contending brands, in the brain of the client is the point by having distinctive item with top notch and great costs that can be managed, and no different organizations can do or duplicate, additionally by being fruitful and make due in the commercial center.
Situation analysis
Mlabbas store will be opened in Downtown Beirut, Lebanon, which is nearly five blocks extended. It is generally constrained toward the north by East Vine Street and toward the south by East Oak Street. Inhabitants and organizations see downtown generally as 'rundown'.
The Downtown Lebanon Retail Market Analysis is intended to center monetary advancement endeavors to upgrade downtown Lebanon's retail business center and its station as a shopping endpoint.

Top Assets for Downtown Business Development
• Large, and developing commercial center: zone representatives, guests, nearby occupants and parkway explorers.
• Business-accommodating City group effectively looking for and succeeding with mechanical business development that empowers Lebanon's development.
• Existing business groups to expand upon with more than ten new business developments.
Top Challenges
•Some downtown belongings are in confusion as their long haul capacities are in danger.
• Organizational abilities to execute business advancement methodology are constrained.
• Lebanon has different business hubs that attract people who want to shop to several centers.
Marketing Mix
Product decisions:
Mlabbas brings an assortment of interesting and regularly irregular design and urban society to the Arab world, by the Arab world. By modifying anything goes ahead the clients mind on shirts, hoodies, stencils, kids and child clothing, embellishments, books, devices, divider craftsmanship and the sky is the limit from there. We can do an arrangement of shirts for the whole family with all ages, and obviously with exceptionally extraordinary costs for more than four traditions made requests in our items. Note that every one of our items are in an exceptionally uncommon, extraordinary, and superb that is uniquely made for our stores.
In October, every one of the returns of the buys goes to bosom malignancy projects to offer them with a motto some support with speaking ‘join Mlabbas in the battle against bosom growth’ and this can draw in clients to help in the bosom disease programs and find the opportunity to have from Mlabbas' one of a kind items too.
Lebanon is seen as a little nation, with a major business sector potential. It is transforming into an alluring buyer market, as apparent by the vicinity of universal style, which opened their new stores in Lebanon in the previous two years. Regardless of a little populace of a little more than 4 million, Lebanon's potential as a business opportunity for way of life and design items is great, given its high normal pay, solid spending force, sumptuous customer society and vigorous tourism area.
Another segment that makes Lebanon an eye-getting business sector is the luxurious buyer society. In accordance with the demeanor towards seeking after a quality way of life, Lebanese individuals by and large have a high affinity to spend. It is not shocking to find that numerous Lebanese spend an expansive segment of their salary on chic attire and extras, for example, those Mlabbas offers, and in addition in vogue contraptions like the iPad and iPhone.
Beirut, which is Lebanon's capital was once considered as ‘Paris of the Middle East’ and has pulled in numerous worldwide creators to set up shop there. Grasped by the refined society, numerous world-celebrated around the world style planners have been supported in Lebanon. As the junction of the East and West, Beirut is viewed as the style and way of life innovator in the Middle East. Beirut is turning into the design capital for the youthful era in Arab nations; for example, the Beirut Fashion Week, which is the first universal style show done in the Middle East as it has been held in Beirut for over 10 years.

Pricing decisions:
Almost all the levels and classes of people in Lebanon will be able to afford the prices of our products, that will be a best-cost provider, and in a very high quality. It is not our aim to target only the high class of people, but we try to reach all the levels of people. So we will produce our products and sell for approximately 20 to 30 US dollars per item and as calculated this is the best average price that the products can be sold in and can be afforded by the variety of customers. In a way that will be attainable for the customers, and profitable to our company. The most important thing to get profits and revenues is by covering the costs of the production, and expected revenue depends of the number of the products sold, that can vary between 150 and 700 US dollar per day, and the cost of those products, which can cost also between 15 and 20 US dollars per item. In addition, we expect to sell approximately 10 to 40 items per day.
Lebanon has an administrative situated economy, upheld by the high esteem included businesses like keeping money and tourism. The World Bank bunches the nation as an "upper-center wage" economy. With a for every capita salary over US$8,000, the costs of our things will be without a doubt achievable as likewise, Lebanese for the most part have moderately high open spending force contrasted with numerous developing markets subsequently offering a decent potential for buyer items.
Lebanon has been a typical aim for travelers from neighboring Arab nations to visit. Visitors spending were assessed to have come to US$8 billion in 2010, representing more than 20% of GDP. Lebanon is positioned as the nation with the second most astounding guests spending in the Middle East and this is the primary concern that influences our costs methodologies, as we focus on the travelers too to our store and in addition the way that Beirut, Lebanon's capital, was once viewed as "Paris of the Middle East", and has pulled in numerous worldwide creators to set up shop there and this has expanded the power of the opposition.

Channels of distribution decisions: Mlabbas stores will be opened in Downtown, Beirut a few stalls will be opened too in shopping centers, and this will be our channel to achieve clients and be reached with them in an up close and personal way and our items will be made and modified in the stores itself and our representatives will be doing them and our items will be sold by thing, independently however in the event that purchased in more than four thing a markdown will happen. Thusly of conveyance is the best and the most effortless to achieve clients and follow-up with them when they arrange they modified things so if any issue happen, it can be explained faster, moreover, more fulfilled and steadfast clients can be picked up and pulled in to such stores with an assortment of things and decent beautifications.

Promotion Decision:
The Downtown and the shopping centers will be a decent route for the store to be publicized without anyone else's input on the grounds that they are acclaimed and constantly swarmed so clients can be pulled in effectively to Mlabbas stores, The informal promoting media, is additionally a decent approach to message about the store's great administration, quality, assortment of items, altered things and reasonable costs that will draw in more clients and not excessive also. Clients can get our unwaveringness card, in which they can get focuses when obtaining any of out store's one of a kind things keeping in mind the end goal to get extraordinary endowments and advancements.

Conclusion
At last, Lebanese people and consumers have good appetite in trendy goods, and this can help my strategy and my company to succeed in Lebanon as opening Mlabbas Store in this developing country means having fashionable, unique and trendy items to wear or to use by the customers and this is the target of the Lebanese people is to be unique and fashionable.
Recommending Mlabbas’s items among people and marketing it will help in the succeed of this company, and at the same time more people can know about Mlabbas and its special products so they can get the benefit of it’s uniqueness and be different and Mlabbas can increase its productivity.
The areas where the stores will be opened in will make a significant and obvious way of helping in the profitability and the success of Mlabbas, such as the Downtown in Beirut that has a convenient location and immediacy to customer center and assistance with other businesses. In addition, the policies and regulations in Lebanon about opening new markets in it are not difficult or hard so that can make it easier for Mlabbas to expand its products to Lebanon and to soon become an international company.

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