INTERNATIONAL MARKETING OF KUWAIT WITH SPECIAL REFERENCE TO McD

1. Mohit Bhat 5. Shivani Pandey2. Karan Gujral 6. Vivek Kumar3. Kajal Sharma

1 2 3 4KUWAIT - الكويت دولة 5 6

Population - 2.9 million

Area -17,818 sq km (6,880 sq miles)

Major language - Arabic

Major religion - Islam

Life expectancy - 74 years (men), 76 years (women)

Currency - Kuwaiti Dinar (KWD)

2 31 4Kuwait-BOP 5 6 Preliminary data of the State of Kuwait’s BOP of 2014

show continuing yet declining surpluses in the external balances.

The Current Account realized a surplus of KWD 15140 million (30.4% of nominal 2013 GDP) during 2014 against KWD 20210 million during 2013 (40.5% of nominal 2013 GDP).

The decline in the current account surplus reflects mainly the decrease in the value of oil exports which in addition to the rise in merchandise imports led to a drop in the surplus of the Balance on Goods .

Developments in the Financial Account of the State of Kuwait’s BOP during 2014www.marketresearchreports.com/countries/kuwait

1 32 4Kuwait-BOT 5 6 Kuwait recorded a trade surplus of 1,836.10 KWD

million in the third quarter of 2015, down from an upwardly revised 5,353.90 KWD million a year earlier, as low oil prices reduced export revenues.

In the June quarter of 2015, the country posted a downwardly revised 2,386.90 KWD million trade surplus

Balance Of Trade in Kuwait fell to 1836.1 KWD Million in Q3 2015 from 2386.9 KWD Million in Q2 2015. Kuwait Imports went down to 2334.7 KWD Million in Q3 2015 from 2441.6 KWD Million in Q2 2015.

Main imports are: machinery, mechanical appliances, electrical equipment and electronics, etc

http://www.tradingeconomics.com/kuwait/balance-of-trade/forecast

1 42 3 Kuwait-PEST Analysis 5 6POLITICAL ENVIRONMENT

Kuwait is the eighth richest country in the world per-capita.

To maintain the GDP growth, Kuwait is significantly expanding the non-hydrocarbon sector by spending in excess of $110 billion by 2015.

 $77 billion from this will be spent by the government on infrastructure investment and the manufacturing sector.

Kuwait National Assembly,  which consists of 50 members to be elected from 5 districts, 10 from each.

The function of the Assembly is to create laws to be approved by the Emir.

ECONOMICAL ENVIRONMENT Kuwait's economy is likely to grow at a much

faster rate than the global GDP over the next five years and reach an estimated $201.3 billion.

Oil and Natural Gas  contributes approximately 59% to the total GDP of the country.

Kuwait is also emphasizing on increasing their spending on R&D for developing new technologies for different industries.

The government has planned to spend huge sums on infrastructure.

The country has positive current account balance, strong fiscal and trade surplus with lower unemployment.

SOCIAL ENVIRONMENT 2.7million people living in the country, including

1.3 million of non-Kuwaiti citizens and additional 900,000 temporary workers.

The country is highly attractive for immigrants because of welfare economy and high salaries.

 Most of the immigrants are coming from South-East Asia and India.

 There are more than half million Indians living in Kuwait making 21% of total population.

TECHNOLOGICAL ENVIRONMENT Kuwait almost doesn’t produce any high-

technological solutions and there are no renewable energy sources in use currently.

 In terms of education and scientific literacy, the adult literacy rate in 2008 was 93.9%.

 As of June 2005 Kuwait allocates 13% of all public expenditure to education.

Kuwait has one of the largest shipping industries in the Persian Gulf region.

521 3 Future Trends in Kuwait4 6

The economy is highly dependent on the hydrocarbon sector for the country's export revenues.

Industrial sector is the fastest growing sector of the Kuwait economy which makes significant contribution to GDP.

Development of international airport, rail, road, and other infrastructure projects along with housing and real estate, and health and sanitation.

Mining and quarrying, financial services, and retail and manufacturing are the leading industries in the economy.Source http://www.tradingeconomics.com/kuwait/balance-of-trade/forecast

621 3 McD in Kuwait4 5

Operating in Kuwait since 1994, McDonald’s has grown to where it today boasts more than 68 restaurants and over 2,300 employees , geographically located to service customers across the country.

All McDonald’s restaurants in Kuwait are 100% locally owned and operated.

Al Maousherji Catering Company, the owner and operator of McDonald’s restaurants in Kuwait is proud to serve Kuwait some of its favourite food since June 15, 1994.

McDonald’s is testing its latest product, the Create Your Taste burger, in five countries including Kuwait

The launch of the CYT (Create Your Taste) platform, McDonald’s Kuwait is giving a taste of premium gourmet customization with the comfort of speed. http://www.mcdonaldsarabia.com/kuwait/en/contact_us.html

http://gulfnewsjournal.com/stories/510544757-mcdonald-s-uses-kuwait-as-test-market-for-gourmet-burger-strategy

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