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Saudi Arabia is a large market. There is a population of 4,,844. That number includes 5,576,076 non-citizens foreign workers (00). Saudi Arabia is one of the highest growth nations in the world with a growth of .7% a year (00). Children and young teens represent the highest proportion of the population in the country. 0-14 years 4.%, 15-64%years 54.8%, and 65 years and over are .%. Since the product is aimed at all of the population the age division is irrelevant. Most Saudis live in the urban areas (77.%), while the rest live in the rural areas (.7%). The largest concentrations of population are in Riyadh, Jeddah, medina, and Mecca
Saudi Arabia’s economy is based on oil production. Oil wealth made the possible the rapid economic development. There is low inflation rate of 1%. The GDP of Saudi Arabia is $4 billion (00). The purchasing power parity per capita was 11,080 in 00, and is in constant incline from year to year. The consumer prices rate is lower every year and was �0.51% in 00, thus prices of products are in decline. The government of Saudi Arabia subsidizes few aspects for the Saudi people, which allow the population to spend more on other things. Low taxes. The five plans- increase imports. Saudi Arabia’s government had six economic development plans since the 170’s. During those plans private enterprise and foreign investment were encouraged and foreign companies were welcomed in the country (country fact sheet, 14).
Since the product is already in presence in the country there is no special adaptation necessary by the consumers. The product is a necessity because of the water shortage and is part in normal life that the consumers look for anyway. There is a strong base for the soft drinks market in Saudi Arabia. In 001 the consumption of soft drinks in the kingdom was .7 billion liters, and is expected to exceed . billion. In 001 the sales of bottled water in Saudi Arabia increased by 7% in the year 001.
Even though Saudi Arabia’s government is in close relationship with the United States there is a negative factor in this country that affects the soft drinks market. From time to time there is a feeling of resentment against America, and American products. 00 there was a campaign in the country aginst the United States that encouraged the boycott of American brands. Two of the companies that were on the boycott list were Coca Cola ad PepsiCo. These two companies that control high share of the soft drinks in Saudi Arabia distribute mainly carbonated drinks. The soft drinks sector that mainly suffered from the boycott was the carbonated drinks rather then the bottled water sector, since they concentrate on the first sector. The product will be imported form another country, a country that the Saudis have no resentment against like Armenia or turkey.
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