Introduction
The Egyptian market presents an appropriate investment opportunity for the introduction of Mineral Fusion's Charcoal Gel Cleanser product. Other than selling in the U.S. market it would be vital for the executives to consider introducing marketing and distribution strategies that will facilitate the entry of the Mineral Fusion's Charcoal Gel Cleanser as a product in the emerging market of Egypt. The Egyptian market is characterized by a median age of about 24 years and a Gross Domestic Product per capita of approximately USD 3,514 (Gershoni, 2012). Besides, this market is regarded as being among the youngest yet poorest nations across the Arab nations. The deterioration of economic conditions in a given country implies that consumers have a higher likelihood of spending a significant portion of their time shopping and looking for affordable deals around informal outlets. Unlike the U.S. market, previous indicators in the Egyptian market have shown that the purchasing power of consumers is often adversely affected by rising prices of fuel and an increase in VAT on various products.
Economic Elements
The distribution of Mineral Fusion's Charcoal Gel Cleanser in the emerging market of Egypt would be expected to consider several economic elements. In this respect, the selection of a distribution channel to facilitate the availability of this particular product in the intended market would consider the nature of this market, the nature of this product, the middlemen, involved, and the size of the production unit, competition as well as the government policies and regulations. According to Khalifa, Dina, and el Sahn (2013), the distribution of products in any given market may be considered just as significant as the production process. As such, more emphasis would need to be placed on the selection of an appropriate channel of distribution for Mineral Fusion's Charcoal Gel Cleanser in the emerging market of Egypt. The distribution process of the Mineral Fusion's Charcoal Gel Cleanser may be directly done by the manufacturer or through the involvement of several indirect channels comprising of intermediaries or distributors. Another critical economic element for consideration in the selection of a distribution is the buying habit of consumers.
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The emerging market of Egypt presents a situation where their religious affiliation largely influences the consumers' habits. Islam is the most dominant religion in Egypt; thus, the behavior of consumers for any given product is mostly influenced by Islamic religious values and principles. Any economic element that appears to contradict Islamic values in the process of its distribution of the Mineral Fusion's Charcoal Gel Cleanser to the emerging market or Egypt is highly unlikely to achieve its marketing objectives. Comparatively, the USA market is considerably diverse and would require a completely different marketing and distribution strategy for Mineral Fusion's Charcoal Gel Cleanser as a product. To that extent, the distribution and use of Mineral Fusion's Charcoal Gel Cleanser are mostly successful in the U.S. market. Promotion, pricing, and marketing of a product such as Mineral Fusion's Charcoal Gel Cleanser in the emerging market of Egypt are likely to influence strategic decisions regarding the expansion of the product's market share (Gershoni, 2012). In that respect, the development of a coherent strategy plays a crucial role in the facilitation of strategic planning.
Infrastructure Elements
Several infrastructure elements are essential for consideration when distributing Mineral Fusion's Charcoal Gel Cleanser in the emerging market of Egypt. Some of these elements include trade statistics and key economic indicators where the U.S. dominates the market share compared to others like Egypt. Market adaptations may impact infrastructure elements considered in the distribution of products in the emerging Egyptian market in that particular market. In this respect, adaptations factors for any product that intends to venture into the Egyptian market should acknowledge that the Islam religion has extreme popularity in this market. Another infrastructure element that is likely to influence the distribution of this particular product in the Egyptian market is transportation (Mahajan, 2014). Since the liberalization of the air and maritime transportation by Egypt several decades ago, the private sector has mainly been involved in the provision of maritime cargo services such as supplying, loading, and distribution among several others. Egypt is among the critical strategic partners of the U.S., where the two nations are usually focused on advancing mutual commercial interests.
Besides, a significant part of this market is represented by the middle-class population, which implies that the marketing strategies adopted for Mineral Fusion's Charcoal Gel Cleanser should consider adaptation to the economies of scale. Such adaptation factors would be significant in the determination of the level to which this product can be acceptable in the emerging Egyptian market. While preventing the product from colliding with the religious values espoused by the dominant religion in this particular market may be an important marketing strategy, ensuring that the product is properly aligned to the religious, political, and cultural expectations is a more effective strategy in the facilitation of marketing strategy (Blaydes, 2019). In Egyptian society, women have a vital role to play in influencing the choice of the products that are used by members of their households. As such, a more efficient marketing and distribution strategy for Mineral Fusion's Charcoal Gel Cleanser would be expected to consider the preference of women a crucial element.
Political Elements
One of the political elements to be considered when distributing Mineral Fusion's Charcoal Gel Cleanser in the Egyptian market is political stability. Considering political stability, the present economic score for Egypt stands at 52.5 following an overall decrease by 0.9 from its previous score. However, the Egyptian market has in the recent past managed to thrive owing to a favorable political environment characterized by judicial effectiveness, business freedom, and monetary freedom (Khalifa, Dina & el Sahn, 2013). Other political elements that are likely to influence the distribution and acceptability of this particular product in the Egyptian market include overwhelming enhancements in the trade bilateral trade policies as well as property rights. To that extent, the economic policies championed by the political players in Egypt have succeeded in creating a favorable environment for the entry of new products into its emerging market. Besides, such political elements have always placed more emphasis on structural reforms related to business and fiscal strategies to enhance the business environment and restore the financial stability of the country following several years characterized by political turmoil.
Cultural Elements
The distribution of Mineral Fusion's Charcoal Gel Cleanser is considered as a new product in the emerging Egyptian market, and a significant part of the population is more conversant with its use. In that respect, several cultural elements are likely to influence the introduction of this product in this particular market. This product would be expected to be favorable and valuable to the Egyptian culture for it to be in a better position to be accepted by its emerging market. Essentially, the use of this product must not contradict some of the cultural values and principles that are highly valued. The observation by Gershoni (2012) indicates that culture is capable of influencing family, religious, social, and educational systems for a given group of people as well as their perception regarding a given product introduced in their market. To that extent, culture plays a central role in influencing the choices made by the Egyptians concerning using Mineral Fusion's Charcoal Gel Cleanser. Marketing in both the U.S. and Egyptian is bound to happen in environments that are influenced and shaped by various cultural aspects. The executives concerned with the marketing and distribution of Mineral Fusion's Charcoal Gel Cleanser in the emerging Egyptian market other than the United States’ market would be expected to remain sensitive to the various existing cultural factors.
Distribution Challenges
Distribution of Mineral Fusion's Charcoal Gel Cleanser in the Egyptian market is likely to experience several challenges. The Egyptian market is still dominated by a substantive number of small stores that are operated by families. In that regard, the concept of mass distribution of new products is a trend that is still taking root in this particular market and may only be accessible by a smaller section of the population with sufficient income (Radcliffe & Lam, 2018). Despite Egypt being a signatory to agreements made by international arbitration bodies, its courts have not always been able to recognize foreign judgments when it comes to commercial disputes affecting the distribution of new products. Resolution of such disputes often takes a longer duration, which is not affordable and economically viable for some companies.
The Egyptian government has shown a significant level of reluctance when it comes to the inclusion of clauses of international arbitration in commercial agreements and contracts except for the petroleum industry. Other challenges associated with increased investment and trade activities such as the distribution of products by foreign companies into the Egyptian market include cumbersome customs requirements and procedures as well as excessive bureaucracy (Blaydes, 2019). Distribution of the Mineral Fusion's Charcoal Gel Cleanser in the Egyptian market is also highly likely to experience challenges of non-tariff trade barriers, issue of intellectual properties, corruption, and skilled labor shortage.
Forms of Retailing
Various forms of training would be used in the sale of Mineral Fusion's Charcoal Gel Cleanser in the Egyptian market, just like it has been implemented in the U.S. market. In this respect, it would be necessary to establish a department store to avail a wide range of such products end-users. Another form of retailing in this particular market would involve supermarkets that would be expected to play a significant role in enhancing the buying power associated with relatively lower retail prices for this product. The executives should also consider warehouse retailing in the sale of this product to enable retailers to conveniently stock and display it. Others forms of retailing include the involvement of specialty retailers, discount retailers, and convenience retailers (Radcliffe & Lam, 2018).
Conclusion
In summing up, market and distribution of Mineral Fusion's Charcoal Gel Cleanser in the emerging market of Egypt would be a beneficial idea. However, it will require certain considerations, including economic elements, infrastructure elements, political elements, cultural elements, distribution challenges, and forms of retailing. The distribution process of the Mineral Fusion's Charcoal Gel Cleanser may be directly done by the manufacturer or through the involvement of several indirect channels comprising of intermediaries or distributors. A considerable component of the emerging Egyptian market is represented by the middle-class population, which implies that the marketing strategies adopted for Mineral Fusion's Charcoal Gel Cleanser should consider adaptation to the economies of scale. Economic policies that are formulated by the political institution in Egypt have succeeded in creating a favorable environment for the entry of new products into its emerging market. Marketing in both the U.S. and Egyptian is bound to happen in environments that are influenced and shaped by various cultural aspects. Distribution of Mineral Fusion's Charcoal Gel Cleanser in the Egyptian market is likely to experience several challenges. Different forms of training would be used in the sale of Mineral Fusion's Charcoal Gel Cleanser in the Egyptian market, just like it has been implemented in the U.S. market.
References
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text . Thousand Oaks, California: Sage.
Blaydes, L. (2019). Challenges to Stability in Egypt . Retrieved 27 July 2019, from www.hoover.org/research/challenges-stability-egypt
Gershoni, I. (2012). The Evolution of National Culture in Modern Egypt: Intellectual Formation and Social Diffusion, 1892-1945. Poetics Today, 13 (2), 325-350. doi:10.2307/1772536
Khalifa, Dina & el Sahn, Farid. (2013). Measuring the factors affecting Egyptian consumers` intentions to purchase global luxury fashion brands .
Mahajan, V. (2014, August 01). Understanding the Arab Consumer. Retrieved from https://hbr.org/2013/05/understanding-the-arab-consumer
Radcliffe, D., & Lam, A. (2018). Social media in the Middle East: The story of 2017 . Retrieved from https://ssrn.com/abstract=3124077
