ll good.
As the population of Saudi Arabia grows it is expected that the consumption of perfumes will also grow. From statistics I found on the official website of the Saudi Embassy in Washington D.C, the population of the country is growing at an annual rate of 3%, and 60% of the population is under 18 years old. These two figures clearly present the potential of the market. The local market is growing, and as the average age gets into the twenties the consumption of perfume will also grow.
B). There are many leading brand names in the high price fragrance market. From France there are brands such as Chanel, Cartier, Christian Dior, Elizabeth Arden, Estee Lauder and many others. From the United States there are brands such as Calvin Klein, and Tommy Hilfiger. These brands have exclusive dealers in Saudi Arabia.
In mass market perfumes (low price perfumes) there are many small manufacturers that follow the three main market leaders. These three leaders are Beautimatic, European Perfume Works LLC, and Cindy Shahed. Each of these manufactures tries to be a low cost leader.
A). There are two market segments that Almusbah is focusing on. The first is the branded perfume segment which targets consumers of medium to high income. This segment of the market is either loyal to certain brand names or they follow certain fragrance trends. The second market segment is for mass market fragrances (low price fragrances). This market targets consumers who desire brand name fragrances but are unwilling or unable to pay the high prices.
B). The leading companies in the mass market segment are: Almusbah, Mahmood Saeed, and Alrehab. Respectively, these companies’s market share is as follows: 45%, 45%, and 10%. All three companies are in good financial condition, and they are all diversified in other businesses.
The leading companies in the branded fragrance segments are Gazaz, Bugshan, Almusbah, Mah...