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2:47 PM MKET330+Take+Exam+Part+l (1) Readonly Iii/OIIQF Sign in to edit and save changes to this file. v Fall Semester 2018/2019 Take Home Exam Marketing Management MKET330 You have been appointed as the Chief Marketing Ofcer (CMOi of a newly established local cosmetics, health and beauty aid product firm in the local Palestinian market that seeks to address the needs and wants of Palestinian women. The Chief Executive Ofcer (CEO) has asked you for a recommendation about which product category the local firm should start with. Therefore, you have studied the sector, and have identied the categories as (1) facial care; (2) body care; (3) sun care; (4) hand care; (5) other miscellaneous categories. You also must help with the decision to either import products or manufacture products locally. Having asked for an initial assessment of the market situation in terms of consumption, as well as imports, you have identified the following information as being important in your analysis: Tobie 1: Consumption Level Trend Consumption 2011-2017 West Bank 43.43% Gaza Strip 20.37% Palestine 4.35% Table 2: Demand Side Analysis Table 3: Supply Side Analysis Product Total Value Product Total Value Facial Care 5 247,593,570 Facial Care 5 191,244,337 Body Care 5 57,161,231 Body Care 5 44,133,308 5 38,107,488 Sun Care 5 29,422,206 Hand Care 5 22,864,493 Hand Care 5 17,653,323 Others 5 15,242,995 Others 5 11,768,882 Total S 381,074,876 Total 5 294,222,057 Table 4: Cosmetic Sector Value Chain in Palestine (5) Cosmetics Value Chain 41......\" 5 191,244,337 5 219,471,501\"; 5 247,593,570 5 44,133,303 5 5054725937 5 57,151,231 5 29,422,205 5 $3,754,345.54 5 33,107,433 5 17,553,323 5 20.253.907.99 5 22,354,493 5 11,763,882 5 1350593555 5 15,242,995 Total 5 294,222,057 5 337,543,455.\" 5 331,074,375 2 Fall Semester 2018/2019 Take Home Exam Marketing Management MKET330 Tobie 5: Average Retail Prices \"3...... I 4 2:48 PM MKET330+Take+Exam+Part+l (1) - Read-only epl 9 Sign in to edit and save changes to this file. v Fall Semester 2018/2019 Take Home Exam Marketing Management MKET330 You have been appointed as the Chief Marketing Officer (CMO) of a newly established local cosmetics, health and beauty aid product firm in the local Palestinian market that seeks to address the needs and wants of Palestinian women. The Chief Executive Officer (CEO) has asked you for a recommendation about which product category the local firm should start with. Therefore, you have studied the sector, and have identified the categories as (1) facial care; (2) body care; (3) sun care; (4) hand care; (5) other miscellaneous categories. You also must help with the decision to either import products or manufacture products locally. Having asked for an initial assessment ofthe market situation in terms of consumption, as well as imports, you have identified the following information as being important in your analysis: Table 1: Consumption Level Trend Consumption 2011-2017 West Bank 713.43% Gaza Strip 20.37% Palestine 4.35% Table 2: Demand Side Analysis Table 3: Supply Side Analysis m m 5 22,364,493 5 17,653,323 5 15.242395 m 5 11,753,332 5 331,074,375 5 294,222,057 Table 4.- Cosmetic Sector Value Chain in Palestine {5) Cosmetics Value Chain Product Category Market Supply Intermediaries Market Demand 5 191,244,337 $219,471,503.13 s 247,593,570 5 44,133,303 5 50.547.259.97 5 57,151,231 5 29,422,205 5 33.754.345.54 5 33,107,433 5 17,553,323 5 20.253.907.99 5 22,354,493 5 11,753,332 5 13.505.933.55 5 15,242,995 Total $294,222,057 $337,543,45544 s 331,074,375 2:55 PM 36 MKET330+ Take+Exam+Part+1 (1) - Read-only = Sign in to edit and save changes to this file. V 2 Fall Semester 2018/2019 Take Home Exam Marketing Management MKET330 Table 5: Average Retail Prices Product Category Avg. Price USD Import Price USD Local Price USD Facial Care 103.89 135.06 72.72 Body Care 37.60 47.71 26.32 Sun Care 37.60 47.71 26.32 Hand Care 37.60 47.71 26.32 Others 37.60 47.71 26.32 Table 6: Consumption and Product Usage Product Category Main Usage # of Uses/Product Product Usage Life Facial Care Monthly-Several Times Monthly 48 .98 Months Body Care Daily 168 3.36 Weeks Sun Care Daily-Seasona 168 .36 We Hand Care Daily 168 .36 Weeks Others Daily 168 3.36 Weeks Table 7: Facial Care Consumption Type Table 8: Other Care Products Consumption Type Facial Care Usage Percentage Other Care Products Percentage Daily 12% Daily 52% Several Times per Week 4% Several Times per Week 22% Weekly 5% Weekl 7% Several Times per Month 21% 2-3 Times per Month 1% Monthly 39% Monthly 3% Less Often 18% Less Often 6% Never 1% Never 5% O2:55 PM 36 MKET330+ Take+Exam+Part+1 (1) - Read-only H Sign in to edit and save changes to this file. V Fall Semester 2018/2019 Take Home Exam Marketing Management MKET330 Table 11: Upper Income Scenario Table 12: Lower Income Scenario Upper Income Scenario Estimated Male Female Lower Income Estimated Male Female 20% of Monthly Monthly Monthly scenario Monthly Population Earnings 40% of Monthly Monthly Earnings Earnings Population Earnings Earnings Earnings Jenin 7,491.0 7,946.4 1,976.4 Jenir 1,450.0 1,538.1 963.3 Tubas 7,101.6 ,299.6 5,860.8 Tubas ,450.0 1,490.4 1, 196.7 Tulkarm 7,491.0 7,939.8 5,293.2 Tulkarm 1,450.0 1,536.9 1,024.6 Nablus 7,141.2 ,550.4 5,359.2 Nablus ,450.0 ,533.1 1,088.2 Qalqilya 9,002.4 9,682.2 4,527.6 Qalqilya 1,450.0 1,559.5 729.3 Salfit ,573.4 ,055.2 5,814.6 Salfit 1,450.0 1,531.5 983.4 Ramallah/Al- Ramallah/Al- Bireh 8,052.0 8,467.8 6,349.2 Bireh 1,450.0 1,524.9 1,143.4 Jericho 5,920.2 6,019.2 5,497.8 Jericho 1,450.0 1,474.2 1,346.5 Jerusalem ,467.8 8,791.2 5,167.8 Jerusalem 1,450.0 1,505.4 384. Bethlehem 7,873. 3,203. 6,382.2 Bethlehem 1,450.0 1,510. 1,175.3 Hebron 8,421.6 3,863.8 5,484.6 Hebron 1,450.0 1,526.1 944.3 West Bank 7,926.6 8,355.6 5,603.4 West Bank 1,450.0 1,528.5 1,025.0 Table 13: Palestinian Intermediaries in Cosmetic, Health and Beauty Aid Sector Intermediaries Cosmetics & Toiletries Beauty Salons Pharmacies West Bank 210 499 701 Gaza Strip 40 78 255 Palestine 250 577 956 Table 14: Geographic Distribution of Intermediaries Intermediaries Cosmetics & Toiletries Beauty Salons Pharmacies North WB 36 144 317 Central WB 70 221 167 South WB 54 134 217 Gaza Strip 40 78 255 Fall Semester 2018/2019 Take Home Exam Marketing Management MKET330 Table 15: Competitive Dynamics of Palestinian Market for Cosmetics, Health and Beauty Aides (Values in USD)2:56 PM MKET330+Take+Exam+Part+| (1) Readonly apnea Sign in to edit and save changes to this file. Fall Semester 2018/2019 Take Home Exam Marketing Management MKET330 Table 15: Competitive Dynamics of Palestinian Market for Cosmetics, Health and Beauty Aides l' Values in U50) etitive ary Leader Challenger Follower Fol lower Niche Niche Niche Niche FirmA Firm B Firm C Firm D Firm E Firm F Firm G Firm H Total cers 47,075,529 35,305,547 14,122,559 9,415,105 4,707,553 2,942,221 2,353,775 1,755,332 117,533,323 ters 70,513,294 52,959,970 21,133,933 14,122,559 7,051,329 4,413,331 3,530,555 2,547,999 175,533,234 117,533,323 33,255,517 35,305,547 23,537,755 11,753,332 7,355,551 5,334,441 4,413,331 294,222,057 Table 15: Percentage of Product Categories Produced or imported by Every Firm Product Category Share of Cosmetics Cate ones _3 Part! Answer the following questions: 1. Describe the cosmetic sector's value chain and its components. 5. Describe the supply side forces and their role in the value chain. b. Describe the intermediaries and their role in the value chain. c. Describe the demand side elements and their role in the value chain. 2. Which of Porter's Generic Strategies would be most appropriate for the Palestinian market: a. In total 0. For the West Bank 5. For the Gaza Strip 3. Based on the information provided, briefly explain how the trend of consumption between 2011 2017 influences your choice of strategy. Fall Semester 2018/2019 Take Home Exam Marketing Management MKET330 I 4