Title: Globalisation of a Local Brand

Name: Yan Chen

Student Number: s0241465

Course Code: MRKT20018

Course Name: Global Marketing

Assignment Number: 1

Assignment Name: Report

Due Date: 23rd August 2013

Course Coordinator: Dr Parves Sultan

Lecturer: Sangeeta Rai

Tutor: Sangeeta Rai

Word Count: 2608 (excluding the reference list, executive

summary and transmittal letter).
 Global Marketing (MRKT 20018)
Marking Criteria Form for Written Assessment (40%)
Complete this section
Name of the student: Yan Chen Student ID: s0241465
Deadline: Week 7 Friday (23-Aug-2013) 03:00 PM AEST Campus: Brisbane OR
Assignment extension request granted:_____________days OR not applicable  Flex 
Late submission of __________days OR not applicable 
The report must be completed between 2000 and 2500 words Student E-mail:
Word count (introduction—conclusion): yan.chen@cqumail.com
Declaration: Type your name/place your signature below
Yan Chen

This assignment is my own work and in line with the University
requirements/policies____________________________
Criteria Marks Obtained Mark Comments
Completed marking criteria form
(This is the form, and place this completed form as the top-sheet of 1
your assignment)
Executive summary
(summarize the report in 3-4 paragraphs (in one page) with a short 5
background, major findings, and critical suggestions)
Table of contents
1
(contents with page numbers)
Introduction
(provide a brief discussion on "social business concept" and its
relation with the Wiggles, the Wiggles' current global markets and its
5
growth in terms of revenue and/or growth rates, national salary
comparison etc., discuss in one paragraph why is a global expansion,
particularly, the Middle-East market, important to the Wiggles?)
The environmental forces of the Middle-East affecting the
Wiggles
(Analysis and presentation of environmental forces including
economic, financial, social, cultural, political, legal, technological
and competitive factors that could affect the Wiggles business in the
10
Middle-East. Note: relevant data, information, and/or figure in terms
of market size, purchasing power, disposable income, market
demand, industry supply etc. from various secondary sources would
be useful for your report; please read the cases and contents of your
textbook)
Market potentiality in the Middle-East: analysis and discussion
(Based on an analysis and discussion of environmental forces, you
need to assess the market potentials of the Wiggles' products in the
10
Middle-East; you will use an appropriate method of market size
assessment, in this context, please read cases and contents of your
textbook, in addition to various secondary sources)
Conclusion
(based on your analysis and findings, you need to provide a 3
conclusion)
References
(use Harvard referencing and citation styles for (at least) 05 reviewed 5
journal articles, 02 textbooks and 03 Online/Web sources)
TOTAL 40
Overall feedback:
Yan Chen s0241465

Executive Summary

This report was written to analysis and discuss the marketing potentiality for
the Wiggles, Australia’s the best early childhood entertainment, which have
been providing educational service for global customers since 1991. This
global music group provides entertainment to families and children concerts,
CDs, DVDs, television, toys, play centres and theme parks, to name a few.

In order to expend its business, the Wiggles were considering opening a new
market in the Middle-East. Through the assessment of the political,
economical, social, technological and legal environment of the UAE, the
Wiggles found that a potential market can be launched in this non-English
speaking country.

It is concluded that there were both strengths and threats for this new move;
however, the Wiggles could better segment the target market, reach to their
target consumers, and promote purchasing via the strategic marketing plan.

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Yan Chen s0241465

Transmittal Letter

Dear Mr White,

Enclosed is the report I commissioned on 23ed August 2013 on the

globalization a local brand in the USA.

The main finds of the report are:

 that the growth of the Wiggles will be affected by the political,

economical, social, technological and legal environment of the USA.
 that there will be strengths, opportunities, weaknesses and threats
existing, if the Wiggles are considering placing a market in the USA,
 the Wiggles should consider of make some changes so as to cater the
needs of different consumers in the Middle-East as they have different
values and cultural background

I would like to acknowledge the assistance of the Wiggles management team

and particularly the global marketing researchers.

Finally, as a manager of the Wiggles, I would like to thank you the opportunity
this report gave me to familiarise myself with the Wiggles’ global marketing
plan, to develop my research skills and to evaluate my global marketing
decisions, which will be invaluable for future project.

Kindest regards,

Yan Chen

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Yan Chen s0241465

Table of Contents

Title Page
Executive Summary.......................................................................i

Table of Contents........................................................................iii

List of Tables..............................................................................v

1.0 Introduction.........................................................................1

1.1 Aim.................................................................................1

1.2 Scope..............................................................................1

1.3 Background Information........................................................1

2.0 Middle East Environmental Forces...............................................3

2.1 External Environmental Forces................................................3

2.1.1 Political Environment.........................................................3

2.1.2 Economic Environment.......................................................4

2.1.3 Social Environment...........................................................4

2.1.4 Technological Environment..................................................5

2.1.5 Legal Environment...........................................................5

2.1.6 Environmental Environment.................................................6

3.0 Competitive Factors in UAE.......................................................7

3.1 Market Size.......................................................................7

Source: CIA..............................................................................8

3.2 Purchasing Power................................................................8

3.3 Disposable Income...............................................................9

3.4 Market Demand..................................................................9

3.5 Industry Supply.................................................................10

4.0 Market Potentiality...............................................................10

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Yan Chen s0241465

4.1 Analysis..........................................................................10

4.2 Discussion........................................................................12

5.0 Conclusion..........................................................................12

5.0 Recommendations................................................................12

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Yan Chen s0241465

List of Tables

Table 1 PESTLE Analysis of United Arab Emirates.………….……………………………….3

Table 2 Age Structure of the UAE.………………………………………………………………….…8

Table 3 Age Group of the UAE……..……………………………………………………………………8

Table 4 SWOPT Analysis…………………..…………………………………………………………….11

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Yan Chen s0241465 Globalisation of a Local Brand

1.0 Introduction

1.1 Aim
The purpose of this report is to develop a good understanding
and critical reflection of global marketing principles and
practices for the Wiggles. Specifically, this involves the study of
marketing environment in UAE, the evaluation of global
marketing mix strategies and the analysis of global market entry
model, namely, social business concept, which is a popularized
business model focusing on innovation, financial and economic
sustainability, business expansion and improvement, and the
pursuit of a social, ethical or environmental goal.

1.2 Scope
This report will examine all the environmental forces the
Wiggles face in UAE, for the purposes of identify a potential
market for the Wiggles in the Middle-East. The research for this
report was conducted via the utilisation of peer reviewed journal
articles and textbooks accessed through the CQUniversity
Library.

1.3 Background Information

The Wiggles, established in Sydney, Australia in 1991, has been
regarded as the best early childhood entertainment. This
company has been providing educational service for global
customers for more than 20 years by the adaptation of the social
business model. This global music group provides entertainment
to families and children all over the world via concerts, CDs,
DVDs, television, toys and play centres, to name a few. In 2002,

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Yan Chen s0241465 Globalisation of a Local Brand

the Wiggles became the most successful pre-school

television program in Australia and they were also named as
Australia's richest entertainers from 2004 to 2008. By 2008,
the Wiggles had received many awards: 17 gold, 12
platinum, 3 double-platinum, to name a couple for sales of
more than 17 million DVDs and 4 million CDs. They earned a
$45 million in 2009 and earned $28 million in 2011 due to
the worldwide recession but still ranked second on the
Business Review Weekly’s list (Sources: Wikipedia: The
Wiggles).

The Wiggles, Australia’s highest-earning entertainers, have

already exported merchandise and conducted foreign direct
investment in many English-speaking countries: such as the USA,
the UK, Canada, Taiwan, New Zealand and the Republic of
Ireland. Obviously, in light with the social business concept, the
Wiggles are following the core social business principles so as to
create competitive advantage and drive good business outcomes.

Undoubtedly, global expansion can significantly contribute to a

growing business. In order to expand business, satisfy more
consumers, and maintain long-term financial sustainability,
nowadays, the Wiggles are shifting their attention to non-English
speaking markets. To be more specific, in order to reach a wider
group of customers and grow business, the Wiggles are
considering open a market in one of the top ten richest
countries, the UAE, which has successfully attracted a vast
number of international companies. (Sources: Wikipedia: The
Wiggles).

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2.0 Middle East Environmental Forces

2.1 External Environmental Forces

Table 1 PESTLE Analysis of United Arab Emirates

PESTLE Host country UAE

Political Federation of 7 monarchies with specified powers delegated to each

member.

Economic GDP: $49,800 (2012)

GDP: $49,400 (2011)
GDP: $48,400 (2010)
Free Trade Zones offering 100% foreign ownership and zero taxes

Social Religions: Muslim (Islam - official) 96%

Non-English speaking country

Technological Internet and Media free zones

Knowledge Village Free Zone

Legal Mixed lega l system of Islamic law and civil law

Member of the Gulf Cooperation Council (GCC)

Environmental Aim to promote environmental security and balance ecosystems and the
sustainability of natural resources.

Sources: Central Intelligence Agency

2.1.1 Political Environment

The United Arab Emirates (UAE), a federation of 7
emirates with 7 rulers, is a member of the Gulf
Cooperation Council (GCC) establishing a common
currency. The ruler of Abu Dhabi is the President of the
United Arab Emirates and the head of state. That is to
say, political power is concentrated in Abu Dhabi. Each
emirate has its own power over mineral rights and
revenues. The political climate is stable in the UAE;

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Yan Chen s0241465 Globalisation of a Local Brand

therefore, the Wiggles can open a market in this

country (Howell 2007, Kotabe et al. 2010).

2.1.2 Economic Environment

According to the Economist Intelligence Unit, average real
GDP growth was 9.3% from 2003 to 2007. In 2012, the GDP
of the UAE ranks second in the CCASG, third in the
Middle East and fifteenth in the world. The UAE, a
modern state with a high standard of living, has one
of the fastest growing economies in the world.
Obviously, the current economic environment in the
UAE will significantly contribute to a successful
business of the Wiggles (Dobransky 2011, Grant et al.
2007, Hassan & Halbouni 2013).

2.1.3 Social Environment

Traditionally, emirates are conservative; however, the
UAE is a liberal region, foreign newspapers, magazines, TV
and films are openly available. In the UAE, religion plays
an essential and influential role in shaping the UAE society
and culture. To be more specific, Islam has a significant
influence on laws, education, clothes, daily routines and
conversations. Family and tribal are highly influential and
they usually play an important role in shaping the value
and behaviour of an individual. Clearly, the UAE’s social
structure is formed by family and tribal. Therefore, the
Wiggles should respect the local religious belief and social
values so as to avoid any conflicts and gain recognition
from the consumer in the UAE (United Arab Emirates
2006).

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2.1.4 Technological Environment

It is clear that technology plays an essential role in
the development of a business. According to the
report (United Arab Emirates 2006), the UAE can provide
a first-class high technological environment for the
Wiggles.

Specifically, Internet and Media Free zones were

developed in Dubai and they lead ICT and media
companies with the latest and largest
communications infrastructure. This Internet city also
offers a high-grade of business-to-business interaction and
invaluable networking opportunities to numerous
companies. The technological environment has been
specifically cultivated to suit and benefit the needs of
different industries.

Furthermore, Knowledge Village Free Zone was also set as

a supplement of the Technology and Media Free Zone. It
mainly focuses on media, communications and information
technologies. The Media City in the UAE can enable a
favorable environment for the media industry, like the
Wiggles, as its goal is to attract and cultivate businesses
from different fields of the entertainment industry (Wilkin
2010). In all, the infrastructure available in the UAE can
promote a fast development of the Wiggles.

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2.1.5 Legal Environment

For the benefit of the future development, the
international marketing manager of the Wiggles should
understand the legal environments of the UAE. In free
zones, the condition for doing business is very attractive
because they offer 100 per cent foreign ownership and
zero taxation. However, these businesses have to build up
physical business in free zone. That is to say that the
Wiggles must set up firm roots in free zone region.
Moreover, there is no value added tax or sales tax in the
UAE. However, in the non free trade zones, foreign
ownership in all business can only hold up to 49 per cent
and at least 51 per cent of local citizen ownership is
required in the UAE. By doing this, it can place Emiratis
into leadership positions. Overall, comparatively speaking,
the risk of foreign investment for the Wiggles in the UAE
will be lower than the other countries because the UAE
cultivates a favourable and attractive business
environment for the Wiggles (United Arab Emirates 2006).

2.1.6 Environmental Environment

In order to promote environmental security and increase
biological security, the Ministry of Environment and Water
has been working hard on keeping environment clean and
safe for living and work of the current and next
generations via different methods. Many important
projects have been linked to environment fields. Take
Masdar City Initiative as a case point. Additionally, for the
purpose of encouraging environmental achievements,
supporting and promoting the implementation of Agenda,
the UAE has also established the Zayed International Prize

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for Environment and the prize is worth US $ 1million

(United Arab Emirates 2006). Undoubtedly, the above
discussion suggests that the Wiggles should focus on the
sustainability of the environmental environment in the
UAE for the purpose of the long-term business
development.

3.0 Competitive Factors in UAE

3.1 Market Size

The Wiggles will definitely have a large and youthful market in
the UAE. According to the statistic, the population of the UAE is
about 5.5 million, and 20.6 per cent are people who are under
14 years old while people who aged between 25 and 54, account
for 61.5 per cent of the total population in the UAE. Generally
speaking, most of this large group of mature adults are living in
household with their families and children. Therefore, the
Wiggles can segment these two age groups as its target
marketing. Parents and children can definitely be the potential
and loyal consumers of the Wiggles. Even though children are
the direct consumers of the Wiggles, parents will certainly be
influenced by their children. In all, the Wiggles will have big
market size in the UAE, if this company enter into the Middle-
East (McHugh & Jackson 2012, Kahnamoui 2013).

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Table 2: Age Structure of the UAE

Age structure
0-14 years 20.6% (male 577,599/female 551,346)
15-24 years 13.8% (male 449,258/female 306,410)

25-54 years 61.5% (male 2,570,054/female 798,070)

55-64 years 3.1% (male 127,569/female 40,996)

65 years and 1% (male 33,481/female 19,189) (2013

over est.)

Source: CIA

Table 3: Age Group of the United Arab Emirates

Source: CIA

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3.2 Purchasing Power

Purchasing power is the amount of goods or service that can be
purchased with unit of currency. It reflects the contribution of
the disposable income of the UAE’s population and indicates the
potential consumption as well. As the demand of the Wiggles
primarily depends on the consumers’ income; therefore, it is
wise to examine the purchasing power before placing the
marking.

According to the CIA report (2013), the level of the purchasing

power in the UAE is high as people in this region are wealthy and
they are more likely to spend, especially for their children. The
Wiggles is a well-known pre-school educational program,
providing entertainment to families and children through
concerts, CDs, DVDs and television, to name a few. That is to say
the Wiggles provide a variety of opportunities for people in the
UAE to purchase. Martikainen et al. stated in their book (2009),
consumers lose purchasing power when prices increase, and
gain purchasing power when prices decrease. Therefore, the
purchasing power of the Wiggles will be strong, as they do not
sell luxury goods.

3.3 Disposable Income

Disposable income is total personal income minus personal

current taxes. According to the statistics (2012), the UAE is

ranked sixth in wealth hotspot, eighth in income and sixth in

disposable income and fourth in luxuries worldwide. Obviously,

people who live in this region, normally have high disposable

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income, which indicates that the Wiggles can successfully launch

their products in the Middle-East region and make huge profits

(Martikainen et al. 2009, Siddiqui & Athmay 2012).

3.4 Market Demand

Market demand is the total demand of all consumers willing and
able to purchase a product. According to the law of demand,
customers are willing and able to buy a large amount at a lower
price. Financially, it is predictable that consumers in the UAE
are able to purchase the Wiggles’ products, such as CDs, DVDs
and toys, to name a few. However, the willingness of purchasing
the good will be the potential risk of the Wiggles, due to the
difference of the social environment between the home and the
host country (Wilkins 2010, Vadakepat 2013).

3.5 Industry Supply

The Wiggles, a global music group, provide consumers with a
variety of products, which indicates this company has different
industry suppliers, ranging from manufactories industry to
technological industry. The competition among suppliers is
definitely fierce, as the Wiggles not only has the rivals from the
local brands in the UAE but also from other countries (Yehia et
al. 2012).

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4.0 Market Potentiality

4.1 Analysis
Through careful examination and analysis of the environment
forces, this report will discuss the market potentiality of the
Wiggles in the UAE. Overall, the strengths, weaknesses,
opportunities and threats of open a market for the Wiggles in the
UAE will be listed in the following table:

Table 4: SWOPT Analysis

SWOPT Analysis
Strengths  The UAE's economy provides an ideal and appealing
investment climate for local and foreign businesses.
 The government control and regulation of private sector
activities is minimal. There are no tax on corporate profits
or personal income, no foreign exchange controls, trade
quotas or barriers
 The excellent infrastructural facilities, clean environment,
tolerance and cultural diversity, cosmopolitan lifestyle, and
contemporary public administration can greatly contribute
to a success of the Wiggles
Weaknesses  Language is a barrier which can hinder the wide spread of
the Wiggles
 The value and culture differences between the host and the
home countries may hinder the development of the Wiggles.

Opportunities  Growth market, favourable investment, environment,

environment, exchange rate, patent protection
 The potential market size of the Wiggles is large which
accounts for 82.1% of the total population in the UAE.
 The government can provide comparatively stable political
environment and favourable economic policies for the
Wiggles.
 It provides innovative facilities and infrastructure
Threats  It is quite challenging for the Wiggles to enter into the host
country with total different cultural background and social
values.
 Consumers already have their own preferences towards a
brand or a product; therefore, it is hard to make a change.
 It is risky to open a new market in a country with less stable

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political environment, compared to Australia.

Sources: Viaggi (2013), Rachid & EI Fadel (2013),Yüksel (2012)

4.2 Discussion
It is clear that, through the assessment of the external
environmental force, namely, political, economical, social,
technological and legal environment, the Wiggles can certainly
create a platform in the UAE. As discussed in this report, the
success of a global market is greatly attributed to the stable
political environment, the prosperous economy, the acceptable
culture, the innovative technology and sound legal environment.

5.0 Conclusion
In conclusion, from above evaluation, examination and analysis, a
comprehensive global marketing report is written for the Wiggles, a
well-known entertainment program. After a careful examination of the
political, economical, social, technological and legal environment of a
target region, the Wiggles is convinced to open a new market in the
United Arab Emirates (UAE), as there is a great potentiality for the
Wiggles in the selected region. However, according to the SWOPT
analysis, there are strengths, opportunities and challenging in open a
new market in the UAE. In order to avoid the detour, some
recommendations are provided so as to promote the success of the
business in the target country.

5.0 Recommendations
The following recommendations have been made:

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- Before entering into the UAE, the Wiggles should learn and be familiar
with Emirati culture and business etiquette. Understanding Islam’s
daily life and its business culture is the first step to conducting
successful business in the UAE.
- The entertainer should dress conservatively. It is important to dress
modestly. To be more specific, as a sign of respect, male should wear a
conservative suit while female should ensure their clothing covers their
legs and arms (Al-Othman 2011).
- Business meeting should never be scheduled during prayer times or any
of the major Islamic holidays, as this is a time for reflection and
celebration.
- The Wiggles can offer a standardised service at a lower cost than their
competitors. By doing this, it can allow the Wiggles to build its
competitive advantage on economies of scale.
- The Wiggles should adopt a differentiation strategy to better serve the
specific needs of customers. The Wiggles should try their best to keep
their service, product performance and symbol unique.
- Using STP strategy to develop a market plan for the Wiggles.
- Subtitle should be provided for the Wiggles TV program so the all the
audience can understand.

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