Objectives

After having analyzed the current situation, the potential of the Saudi Arabian market, and the strengths and weaknesses of our product, we consider that setting objectives is extremely important for the progress of VEEN. Objectives have a significant impact on the future of every company because they are motivating, give focus and can be the driving force for achieving great results. In our case, we have set some financial and non-financial objectives which are explained in more detail in this post. 

Financial Objectives 

Financial objectives are regarded as crucial for VEEN’s survival. An expansion to a new market always involves a certain degree of risk. Setting specific, realistic, measurable, and time-scaled objectives can prove valuable for the future success of the product. Sales performance, profit margins and decrease of expenses are the three main pillars that can determine the progress of VEEN’s launch in Saudi Arabia.

•   Sales’ performance

VEEN Waters is a relatively new and small company with the largest portion of sales deriving from foreign operations. Sales’ performance depends on the distributor’s network and its ability to reach agreements with the most well-recognized hotel chains, restaurants and café lounges. Taking this into account, 8% of the global sales for the first year is considered to be an achievable goal regarding the expanding growth in bottled water in Saudi Arabia. 

•  Decrease of expenses

As we have mentioned in an earlier post, it is not easy for VEEN to decrease the price of its selling products due to the high costs that come from the orders from the glass company and the agreements with the distributors. Expanding to a new market means that a greater amount of orders (bottles) will be needed resulting in the increase of the total volume of them. We aim at a 5% decrease for the first year regarding this aspect. Decreasing the costs, also, aligns with VEEN’s goal to move to the premium segment of bottled water.

•  Wider profit margins

Accomplishing the two previous objectives, increase of sales and decrease of expenses, VEEN will have better chances to enjoy wider profit margins.

Market Objectives

Market objectives concentrate on maintaining the competitive advantage and improving the market position by creating long-term relationships with customers and clients.

• Higher levels of customer satisfaction

In a restaurant where VEEN is sold, it is recommended to complement the gourmet food offered. Receiving “personal” recommendations from the chef gives restaurant visitors the feel of exclusivity that should come with the purchase of a luxury product.  VEEN’s strategy to be only offered in a select few quality hotels and restaurants also gives the product a feeling of scarcity. This feeling of exclusivity and scarcity results in higher customer satisfaction.

• Increase awareness

Saudi Arabia is geographically far from Finland and many of the hotels’ and restaurants’ customers may not be aware of the Finnish tradition in high quality water. Increasing the awareness of the purity of our product and its competitive advantage is vital. Before the launch, an agreement with restaurants’ managers and chefs should be made in order to include in their menus a description of VEEN water. Leaflets in hotel rooms which will emphasize on the smoothness and low mineral content may serve the same aim.

• Position and Market Share

Positioning itself as a luxury bottled water, VEEN has to assure that it appears only in quality establishments that meet its global standards. The high price reinforces the perception of the high quality of the product. Our objective is to be positioned among the leading brands in the luxury segment. We can measure the success of our positioning through the percent of market share. Our goal is to hold 5% of the Saudi Arabian luxury bottled water market.

Internal Operational Objectives

Primary role of the internal operational objective is to assist in maintaining the firm’s core competencies. These competencies are the base of customer value and satisfaction and it can be possibly correlated to business processes such as production, marketing, finance, human resources, R&D, and distribution.

• Maintain long-term relationship with the distributor

For VEEN, it is important to establish an agreement with a local distributor which has good knowledge of the market and has the means to do research before the launch of the water. The specific actions can be found in the marketing mix post. Exclusivity of carrying the brand is one of the non-negotiable variables. VEEN has to invest in creating a strong relationship with the distributor from the very beginning, from the first contacts they have before the launch of the product.

Learning Objectives 

Learning objectives are based on the knowledge that the firm can gain from clients and operations in a different business environment creating better learning practices.

•  Transfer knowledge to new markets

Entering a new market is always a learning experience. VEEN commits to being open and flexible in order to take full advantage of the learning opportunities available. VEEN will be able to use this experience when entering new markets in the future and when operating in similar markets.


The achievement of these objectives is a way to align with the geneal goal of VEEN, which is gradually to move from the luxury segment to the premium one. 


Note: Due to the fact that we were not able to know the actual figures for the volume and value in sales and market shares in the on-trade channels, the percentages in the financial objectives part and the market share consist only an attempt to create specific and measurable objectives.