➢ Men and women would not greet each other in public. ADMINISTRATIVE & POLITICAL DISTANCE ➢ Population is 32,742,664 ➢ Sri Lanka is 2 hours and 30 minutes ahead of Saudi Arabia.
➢ 4,191 km is the distance from Saudi Arabia to Sri Lanka ➢ Weather is harsh, dry desert with great temperature extremes.
The most common rate for imports is 22% and may increase to 24% 5% with 20% levied on commodities in 2017. Tariffs “Statuto agreement on contracts are now Table 1- PESTEL Analysis Source: Author's work based on (The Global Economy.com, 2016), (The-saudi.net, 2017), (Worldometers.info, 2017), (Business Culture, 2014) , (Istat.it, 2016), (Lawyersitaly.eu, 2015), (Ratetea.com, 2014), (Italy - Employment & Labour Law 2016 - ICLG - International Comparative Legal Guides, 2016) , (Srilankaembassyrome.org, n.d.), (ca, 2016), (Tradingeconomics.com, 2017) ,(au, 2017), (Gov.uk, n.d.) (Investsrilanka.com, 2016), (Euromonitor.com, 2016), (uk, 2017), (Saudilegal.com, 2016), (Lexology.com, 2016) 2.2 CAGE framework “The CAGE framework is an acronym for four broad components of distance: cultural, administrative, geographic and economic.
These four components often intertwine” (Ghemawat, 2007).
Italy was perceived to be the most captivating destination to market Serendib tea, given the country’s background and its familiarity to indigenous quality of food and beverage.
Since Up Country Tea Estate is a marketing-oriented organization, it discovered many opportunities in entering the Italian market.
● Number of Daily ● Riyal is the currency of Saudi Arabia. ● Main languages spoken in the country are Arabic, Urdu and English. ● Literacy rate is 98% ● Number of Radio Stations is 4709. ● Literacy rate is 94.7% Channels of distribution ● Large number of Airports ● Various Seaports currently operating in Genoa, Venice, etc. ● Current exchange rate of 1 Saudi Riyal = 39.97 Sri Lankan Rupee Control and Coordination ● ISO 9001 certification ensures high quality standards.
Italy is ranked 2nd of the Top 10 countries for ISO 9001 certification. ● ISO 9001 is needed to ensure quality criteria’s in Saudi Arabia. Choices ● Spend on food and Per capita Income is 312.82. ● Saudi Arabian consumers are 14 2.4.1 Country Attractiveness Table 5-Country Attractiveness Attributes Source: Author’s work ● Country Attractiveness of Italy ● Country Attractiveness of Saudi Arabia 16 Table 6- Country Attractiveness Score Source: Author’s work 2.4.2 Company Compatibility Table 7- Company Compatibility 17 2.4.3 Mapping the selected markets Figure 5- Country Attractiveness Mapping Source: Author’s work 2.5 Selection of a Foreign Market Several International Marketing models are adapted by marketers to analyse and evaluate various markets and country attractiveness for business purposes.
4 2.0 The analysis of the foreign market As an international marketing consultant for Sri Lanka’s Up Country Tea Estate (Pvt) Ltd, there are several various factors needed to be considered when analyzing foreign markets.
The author conducts PESTEL analysis, CAGE framework, 12Cs framework and Harrell & Kiefer model to evaluate the best suited international market to expand its horizon to in the proceeding report.