In this paper I have prepared a recommended international marketing plan for Tolko industries. Tolko Industries was established in 1956 in a small town called Lavington, British Columbia. They offer softwood and a minimal amount of hardwood lumber to their current markets, some of which include: Chile, Spain, Jordan, Russia and many more. This project will be focused on their softwood lumber as it is highly utilized for construction purposes thus high in demand within the United Arab Emirates, our target market. Softwood is derived from Pine, Spruce and Fir. Tolko sells their lumber in per National Lumber Grades Authority (NLGA) standards. The quality management procedures involved in the processing and cutting of the wood are of the highest standard. Tolko is able to meet the standards and various grade and size requirements of the UAE market.
The United Arab Emirates is a Middle Eastern country which is boarded by the Persian Gulf, Saudi Arabia and Oman. There is huge boom in the construction industry that is taking place across the UAE which has increased and continues to increase the demand for wood and wood products. This will be a good way for Tolko to increase sales to smaller companies as well as sale in bulk to bigger construction companies catering to both small and big projects. The major competition to Canadian SPF in the Dubai packaging material industry is Chile and Brazil pine lumber. However, Canadian SPF is of higher quality and the price of Canadian lumber in relation to the high quality is reasonably affordable.
Entry into UAE market will be done with the help of an agent through direct exporting. The agent will work on behalf of Tolko Industries to sell the softwood directly to the customer as well as provide after sales service to customers to create a better brand image for Tolko. I think there is a lot of opportunity in the UAE because the economy is dependent on oil exports and they are trying to spread the economy by creating and concentrating on other sectors such as construction, booming businesses and Tourism sectors.