Marketing Dates in Europe

Dates are fruits that are cultivated in the tropical climate, and are thus common in the Middle East, North Africa, and North America and in small parts of Spain. This article evaluates why, how and what aspects a company in the Middle East would want to use in internationalizing its markets to Europe. Kingdom dates was established in 1998 using 100% U.A.E. capital. It is one of the largest companies in the U.A.E working in the dates’ field. The policy of the company is always to generate new ideas in dates, and engage in the development of the date products, tastes and shapes like almond date, chocolate date, petit four date and honey date with almond. Kingdom dates products’ distribution is all over U.A.E, therefore its clients can find the products in all hypermarkets, in addition to their own specialized shops for dates, plus stands in the big centers, and their distributors in Dubai Duty Free, Abu Dhabi Duty Free, Deira City Center and Mall of Emirates. Kingdom dates has its own factory (Gulf Factory) located in Ras Al Kheima, with a very big factory space, supplied with the latest technologies and machines, which gives perfect new products. The factory fulfills the requirements of the health and cleanliness in all respects, since it is a HASSP registered firm in 2006.

Kingdom dates has a plan to venture in the lucrative European markets of France, U.K, Germany, Italy and the larger EU family. These countries account for 85 percent of total EU imports of dates in volume. Europe, and in particular the European Union (EU), is a key market for date exporters. The EU imports of dates represent only 10% of world imports in volume and they account for some 30% in value. This is a reflection that EU import prices for dates are comparatively much higher than the world average. The accessibility of most of these markets, especially in France and the U.K, is easy in that they have near zero obstacles to trade. The EU does offer a vast market for date products as the population size is big and the trade impediments in the block are little. Politically the vast EU block is highly stable and economically the region is enormous in terms of economic activity. The topography of Europe in general does favor some of the competitors (Tunisia and Algeria) in Middle East. However, the advent of technology in air travel does level the market field. The competitors from North Africa and North America do have some advantage in their production of Deglet nour dates and Medjool dates respectively that have a favorable recipient in the EU market. Kingdom dates specializes in production and processing of the common dates that are very popular with the U.K and German market segment. Though they fetch low prices, they have the highest moving rate in terms of sales. Through differentiation of the dates and value addition of the date’s products, Kingdom dates can be able to effectively venture in the EU trade block for profitable business.

Kingdom dates may use two market entry strategies in venturing the EU trade block. Exportation is one of the ways that Kingdom dates may use in its quest to have a share in the target market. Through this method, Kingdom dates has to find reliable agents that will in turn source for favorable buyers of its dates and related products. This may be time consuming and risky, as the agent does not bear any risk while holding the goods hence may prove too expensive for Kingdom dates. The best option and less risky strategy but effective is through having joint ventures. These are arrangements between two or more investors where they share ownership and control over property rights and operation. Joint venture is an all-embracing form of participation than either exporting or licensing. Kingdom dates can use this strategy in association with the hypermarkets and super markets in the EU block. This has its own advantages that well out way the disadvantages as well as the use of exportation method. They include sharing of risk and ability to combine the local in-depth knowledge with a foreign partner with know-how in technology or process, joint financial strength since the other associates will come in as investors and it may act the best option to be source supply of a third market segment.

Despite the challenges that may come with joint ventures as in not having 100% control of management and different views on expected benefits, careful mapping in advance of how and what to achieve will help to overcome this challenges.