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Marketing communications: (SWOT, PEST, Potter’s 5 Force Analyses)

Customer Context:

Economic development promotion is ultimately a marketing activity that has two functions; to promote a community and to improve the community’s product. To be complete, an economic development plan should include community development recommendations as well as those for marketing to an external audience. Great economic development initiatives involve the entire community working together to improve the local “product” while the economic development organization works to improve awareness and perception of the community in the outside world.


The Business Context:

DWI,DERMABIT WATERPROOFING INDUSTRIES founded in the year 1982 in the cites of Madina, Al-Jubail Al-Sinaiyah, Saudi Arabia's it’s target was to construct & modernize the industrial city. Sheikh Suleiman Al-Saleh and his son Hani are the owners of this company.


DWI is focused in the manufacturing of roofing and waterproofing products. The factory is producing a variety of customized bituminous products observing with major international standards and catering for every financial planning and environmental circumstances.  


In 1993 a further facility for the manufacturing of coatings and sealers was installed with the plan of offering customers the biggest choice of water proofing goods according to their own requirement.



Internal Marketing Context

Internal marketing informs citizens and business leaders of the economic development vision, persuades the region to adopt the target industries, and trains individuals to promote the community using a cohesive message. Through building local awareness, buy-in is established, and the community becomes a promoter of economic development. The resulting internal support considerably increases the chance of successful economic development.


Internal Marketing Recommendation 1:

The selection of target industries is a necessary action by state and local economic development agencies so that all marketing, workforce, and incentive policies are focused on areas with a high chance of success.


Internal Marketing Recommendation 2:

Target industry selection helps to coordinate partner organizations that seek to support economic development: community Builders, constructors, large business centers, local governments, and planning organizations.


External Marketing Context

External marketing is promoting a community to the outside world specifically target industry business executives, influencers (site selectors and media representatives), entrepreneurs, and young professionals. External marketing builds regional and national and international awareness and strives to put the Tri-Cities top-of-mind among its target audiences.


External Marketing recommendations:


Recommendation 1

Angelou Economics recommends that the Research District begins an external marketing campaign in spring 2006 that emphasized the marketing leverage with local and national partners.


Recommendation 2

Site selection and corporate strategy is now included in the domain of service providers such as construction companies, accountants, lawyers, and developers.


Recommendation 3

Professional interaction among peers is an excellent source for business development.


Recommendation 4

Co-marketing is a highly recommended tactic to leverage the interests of numerous entities for a common purpose: better awareness. PNNL will benefit from a long-term co-marketing campaign.


Recommendation 5

Tracking your customers and prospects is an important part of economic development, and today’s technologies and data companies allow an even more precise level of company research.


Recommendation 6

Relationship building face-to-face with companies is an important part of marketing and recruitment. Commit the time and budget to meet with target industry executives.


Recommendation 7

Maintain ongoing communication with state economic developers and state industry associations. Strong state support and awareness will be very valuable in driving prospect activity to the Research District. Speaking at various economic development and industry events are excellent public relations opportunities.


Recommendation 8

Industry associations and their tradeshows provide excellent opportunities for networking and marketing


Recommendation 9

As the a contact list is created, it also creates a quarterly newsletter to share updates about the company products


Recommendation 10

Angelo Economics does not believe that marketing should be expensive, particularly in the Age of the Internet. However, a stable marketing budget for supporting efforts in this Plan will be necessary.


Recommendation 11

“Public relations” describes activities that seek to enhance overall visibility to a wide audience. Effective PR will create awareness of the products, so that more direct marketing activities are more effective and successful.


Recommendation 12

Websites are a critical part of marketing for any organization, company, or community.


SWOT analysis

These analyses are reflection of Water proofing industry with the following - Strengths, Weaknesses, Opportunities and Threats


  • Detailed descriptions of all elements in Water proofing.
  • Finding solutions about complains by the customers.
  • Flexibility and variety in organization’s products.
  • Information available to the customers in all the detail.
  • Product knowledge to the suppliers and buyers.
  • Delivery control on suppliers


  • Getting involved in the construction sectors
  • New business opportunities for maintenance services
  • Entering in new markets



  • Numbers of products 55 plus
  • No standardized processes
  • Too big variety confusing to the customers



  • Copy of products is a big threat to the company.
  • The company is facing international competition.
  • Demand for productivity & profitability.
  • Demand for Just-In-Time is being increased in the modern business
  • There is a huge demand of quality control
  • Darmabit can be threatened by facilitating management and increasing the expenses
  • Use technology to decrease manual and routine
  • Employee resistance against latest technology
  • Additional regulations from EU and/or local authorities


PEST analysis:


Political environment:

Saudi Arabia became the 149th member of the World Trade Organization (WTO) on December 11, 2005.  Accession to the WTO will impact trade barriers and regulations as Saudi Arabia comes into compliance with WTO requirements.  As of the date of this report, Saudi Arabia does not have regulations and/or government restrictions impeding import and sale of equipment and services for construction material projects.


Political change complicates the planning activities of many firms. The political risk in a decision is the risk that political factors will invalidate the strategy and perhaps severely damage the organization. Examples are wars, political chaos, corruption and nationalization.


Major U.S. companies are expected to work on most of the upgrades and expansion of Saudi construction companies.  This is due to their record of long experience and technical expertise, in Saudi Arabia and internationally.  U.S. companies led the way in the Saudi construction industries, which followed U.S. based standards and specifications, and many of the people working at Saudi construction business as consultants and technicians are Americans.  Finally, the majority of Saudi decision makers in the construction industry received most of their higher education in the U.S.


Economic Environment:

The population rates are fastest growing in the world of the UAE and Saudi Arabia. UAE and Saudi Arabia are forecasting to grow by 2% annually by 2025 and will reach to the population of 69,000,000/- & 37,000,000/- in year 2025, compared to 4,500,000/- 23,000,000 in year 2006, respectively. There is an increasing demand in the infrastructure and construction work due to this increase. The fastest increasing population, coupled with the oil and gas windfall, has shaped a vibrant high-growth market in the two countries. And other than new housing demand is increasing day by day due to the home owners are demanding larger and superior housing and accommodation.


While seeing from some other’s view, the vast young population is looking onward to craft families will create great opportunities for housing property developers.


Social Environment:

Social change involves changes in the nature, attitudes and habits of society. Social changes occur continually, and trends can be identified which may or may not be relevant to an organization.


Many foreign engineering companies and construction contractors are operating in Saudi Arabia through joint venture agreements with Saudi companies.  These joint venture companies bid jointly with their local partners on major construction projects.  The Kingdom has enacted a new Saudi foreign investment law, which gives a foreign investor the same treatment as the national one with regard to incentives, privileges, guarantees, exemptions and easy financing.


These days construction industry is at the boom and there are a lot of projects which are under construction in middle-east such as Palm Tree, Dubai and a large number of other hotels which will enhance the potential demand of DWI products.

PORTER’S 5 force analysis:


The threat of new entrants to the industry:

The new entrant in to an industry will bring extra capacity and more competition. DWI has so much variety in products for waterproofing and has high fixed costs which often imply a high breakeven point. A high break even point depends on a large volume of sales and we have no threat of new entrants to the industry because we are maintaining it. We have made our good brand image and strong customer loyalty over a long period of time.

The threat of substitute products or services:

These days there is an emerging market of fiber roofings which can lessen the need of Waterproofing industry but it will take years to construct such type of constructions and we have also such types of material of waterproofing which can maintain the fiber roofings materials.


The bargaining power of customers:

Customers want better quality products at a lower price satisfying this will might force down the profitability of suppliers in the industry. How strong the position of customers is dependent on several factors:

  • How much the customer buys
  • How critical the product is to the customer’s own use
  • Switching cost of supplier
  • Product are standard items but these products can be easily copied
  • The importance of product quality to the customer.


The bargaining power of suppliers:

Suppliers can exert pressure for higher prices but this is dependent on several factors.

  • Whether there are just one or two dominant suppliers to the industry, able to charge monopoly or oligopoly prices.
  • The threat of new entrants or substitute products to the supplier’s industry
  • Whether the suppliers have other customers outside the industry, and do not rely on the industry for the majority of their sales
  • Whether switching costs for customer would be high


The rivalry amongst current competitors in the industry:

The intensity of competitive rivalry within an industry will affect the profitability of the industry as a whole. Competitive actions might form a price competition, advertising battles, sales promotion campaigns, introducing new products for the market, improving after sales services or providing warranties. Competition can stimulate demand and expanding the markets and competition will leave demand unchanged, in this case individual competitors will make less money, unless they are able to cut costs.


Recomended Readings

Marketing Communication: A Comprehensive Marketing Plan

Marketing Communication: Elements of Marketing

Marketing Communications: Marketing Integration

Marketing communication: Basic Marketing Planning

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