Case study According to a study conducted by Beauty World Exhibition, Saudi Arabia and the UAE are among the world fastest growing cosmetics markets. As the cosmetic industry is growing tremendously across the globe, Middle Eastern countries are home to the world’s highest consumption rates. According to a study conducted by Ashraq al-Awsat newspaper, Saudi Arabia ranks first among Gulf nations in consumption of skin and hair care products (Arabiya). Likewise, argan oil benefits are also being recognized widely especially in and Middle Eastern countries. A few cosmetic brands are selling argan based cosmetic products in Saudi Arabia but none of then can truly guarantee the authenticity of the oil (Askwomennet.com).

Argan Oil Company guarantees that their argan oil is genuine since they manage the whole production process. It is now looking to expand to the international market and position its line of products as a luxury brand. The Saudi market might be a great opportunity to start since it is a rich country whose women are huge consumers of cosmetic products.
Business overview
Argan Oil Company is a member of the leading companies in Morocco and specializes in the production of argan oil since 1995; it focuses on both cosmetic and culinary argan oil. The company holds many national prizes and has been honored and congratulated twice by the Moroccan king Mohammed VI. As argan oil has become increasingly popular for cosmetic use, the company also manufactures and packages various argan based cosmetic products, which are distributed in Morocco. (Arganoilco.com).
Product features
Traditionally, Berber women in southern Morocco use argan oil to keep their skin hydrated and reduce skin piples, acne, scars, chicken pox pustules, and to keep their hair strong and shiny. Argan trees are very scarce and is endemic only to the south of Morocco which covers only about 8000 square kilometers refered to as the Argan forest. It takes a woman 16 to 20 hours of work and an average of 60-100 kg of fresh fruit to produce 1L of argan oil (Harpelle and Muirhead).

Argan oil is also known as the “liquid gold” and it is simply food for the skin and hair. Moreover, argan oil has countless benefits and can be used as a nighttime moisturizer, skin toner, whole-body moisturizer, leave-in conditioner, overnight deep conditioning treatment, and also as a lip conditioner. That valuable oil is also good for exfoliating, acne, stretch marks, razor bumps and burns, nails, as well as dry feet and heels (Axe).
Market analysis
Argan Oil Company will first target the Middle Eastern market starting with Saudi Arabia. According to Euromonitor, the Saudi cosmetics market is the largest in the Middle East, estimated at over 60 billion Saudi Riyal (over £10 billion). On average, a Saudi woman spends 14,256 Saudi Riyal per year (approximately £2500) on cosmetic products (AL-Sughair).

I.    Market Analysis: The Gulf Region - Saudi Arabia
Saudi Arabia has been an infamous market for multiple multinational companies who failed to adapt to the complex Saudi cultural and religious environment.  The fragrance industry had its fair share of multinational failures, mainly due to the on going debate about the purity of alcoholic perfumes according to the Islamic faith. However, the whole debate came to an end when a Fatwa, a legal interpretation by a respected religious leader, has allowed Muslims to use alcohol-based perfumes. It is in 2012, that Dr Ali Ahmed Mashael has issued the Fatwa stating that, alcohol-based fragrances do not contain a high amount of ethanol, therefore, not affecting the purity of Muslim prayer. This statement has directly increased Fragrance consumption in the Gulf area, especially in Saudi Arabia (Euromonitor.com, 2015).  

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