Full Answer Section

Small-Scale Business in Saudi Arabia

Business Name: “Al-Jannah Sweets” – Traditional Saudi Desserts

1. Products and Services (4 Marks)

a. Product Description:

Al-Jannah Sweets specializes in producing authentic Saudi desserts. Our products are handcrafted using high-quality ingredients and traditional recipes passed down through generations. Our offerings include:

• Luqaimat: Fluffy, golden, and melt-in-your-mouth donut-like fritters served with a variety of syrups (date syrup, honey, sugar).

• Konafa: Sweet cheese pastry soaked in a rich sugar syrup, topped with nuts and often flavored with orange blossom water.

• Umm Ali: A rich, creamy dessert made with layered bread, milk, nuts, and raisins.

• Makhbous: A traditional rice dish with meat, vegetables, and a blend of aromatic spices.

• Baklava: Flaky pastry layered with nuts and drenched in honey syrup.

Technical Specifications:

• Ingredients: We source premium ingredients from local suppliers, prioritizing natural and organic options whenever possible.

• Preparation: All our desserts are handmade by skilled bakers who follow traditional methods and recipes.

• Packaging: We utilize attractive and eco-friendly packaging to preserve freshness and enhance the presentation of our desserts.

b. Competitive Advantages/Disadvantages:

Advantages:

• Authenticity: Our recipes are passed down through generations, ensuring the authenticity and unique flavor of traditional Saudi desserts.

• Quality: We use premium ingredients and traditional preparation methods, resulting in exceptional taste and quality.

• Customization: We offer customization options for certain desserts to cater to specific dietary needs or preferences.

• Freshness: All our desserts are made fresh daily, ensuring the highest quality and freshness.

Disadvantages:

• Limited Product Range: Initially, we will focus on a limited range of traditional Saudi desserts, which may limit our appeal to customers seeking a broader selection.

• Pricing: Using premium ingredients and handmade production may result in slightly higher prices compared to commercially produced desserts.

2. Marketing Plan (6 Marks)

a. Market Research – Why?

Market research is crucial to understand the target market, identify competition, and tailor our marketing strategy for maximum effectiveness. It will help us:

• Identify target customer demographics: Understanding their preferences, needs, and purchasing behavior is essential for product development and targeted marketing campaigns.

• Evaluate the competition: Analyzing competitors’ offerings, pricing, and marketing strategies will allow us to differentiate ourselves and create a competitive advantage.

• Determine market demand: Understanding the demand for traditional Saudi desserts in the local market will guide our product development and pricing strategies.

b. Market Research – How?

We will utilize both primary and secondary data for market research:

• Primary Data:

  • Surveys: Conducting online and in-person surveys to gather customer feedback, preferences, and purchasing behavior.

  • Focus Groups: Organizing focus groups with potential customers to discuss their opinions on traditional Saudi desserts and gather insights into their preferences.

• Secondary Data:

  • Industry Reports: Analyzing industry reports on the Saudi food and beverage market, consumer trends, and competition.

  • Online Research: Utilizing online platforms and social media to research customer reviews, competitor information, and popular trends.

  • Government Data: Accessing government data on demographic trends, consumption patterns, and local regulations.

c. Marketing Plan:

Product:

• Most Important Features: Authentic recipes, premium ingredients, handmade production, fresh daily.

• Special: Offers a taste of traditional Saudi culture and heritage through its unique dessert creations.

• Benefits: Provides a satisfying and nostalgic experience, perfect for celebrations, gatherings, and everyday enjoyment.

Customer:

• Target Customers:

  • Saudi nationals with a strong appreciation for traditional cuisine and cultural heritage.

  • Expatriates interested in exploring Saudi culture and trying authentic dishes.

  • Individuals seeking high-quality, handcrafted desserts for special occasions or everyday indulgence.

• Demographics: Families, individuals, millennials, Gen-Z, and older generations with a taste for traditional sweets.

Competition:

• Competitors: Existing bakeries and pastry shops offering traditional and modern desserts.

• Comparison: Al-Jannah Sweets will differentiate itself through its focus on authentic Saudi desserts, handcrafted quality, and premium ingredients, setting it apart from competitors.

Strategy:

• Brand Positioning: Al-Jannah Sweets will position itself as a provider of authentic and high-quality traditional Saudi desserts, celebrating the richness of the Saudi culinary heritage.

• Product Development: We will continuously expand our product range by introducing new traditional desserts and seasonal specialties.

• Customer Experience: We will focus on creating a positive and personalized customer experience, offering friendly service, personalized recommendations, and a warm and welcoming environment.

Promotion:

• Promotional Activities:

  • Social Media Marketing: Creating engaging content on Instagram, Facebook, and Twitter to showcase our desserts, share recipes, and highlight the cultural significance of our products.

  • Online Advertising: Running targeted online ads on social media platforms and search engines to reach our target audience.

  • Collaborations: Partnering with local influencers, food bloggers, and event organizers to promote our desserts and increase brand awareness.

  • Local Events: Participating in food festivals and cultural events to showcase our products and interact with potential customers.

  • Loyalty Programs: Implementing a loyalty program to reward repeat customers and incentivize repeat purchases.

• Promotional Budget:

  • Initial Budget: SAR 10,000 for the first year, allocated towards social media marketing, online advertising, and event participation.

  • Long-Term: Investing progressively in promotional activities based on market response and sales performance.

Distribution Channels:

• Online Sales: Launching an online platform (website or app) for online ordering and delivery.

• Physical Store: Establishing a small retail store in a strategic location to cater to walk-in customers and local demand.

• Partnerships: Collaborating with local restaurants, cafes, and grocery stores to distribute our products and expand our reach.

Sales Projection:

• Year 1: Projected sales revenue of SAR 500,000, with a focus on establishing a loyal customer base and expanding distribution channels.

• Year 2 & Beyond: Aiming for a 20% annual growth rate, with a focus on expanding product range, increasing online sales, and establishing regional distribution networks.

Statistics and Sources:

• Market Size: Refer to reports on the Saudi food and beverage market, such as those published by Euromonitor International or Statista, to understand the market size and potential for traditional desserts.

• Consumer Trends: Analyze data from social media platforms, food blogs, and industry reports to identify popular dessert trends and preferences in the Saudi market.

• Competitor Analysis: Research competitors’ pricing, product offerings, and marketing strategies to identify opportunities for differentiation and create a competitive edge.