Main Market Segments In Egyptian Market

Main Market Segments In Egyptian MarketIntroductioncapital of Minnesota founded great hundred yrs ago and is a market place draw in France with more than than 360 local branches and has spread over 20 countries worldwide. Its a private sector comp both operated under HOLDER group which its 3 businesses atomic number 18 bread-making, pastry and eaterys.capital of Minnesotas healthy known across its borders, and Egypt is one of its targeted countries as its further growth, nowadays.Through our frequent visits to various spots in different cities in Egypt, we sight how life style is developing encouragingly we had to be certain well-nigh how liable our projected gross revenue would be in this market. Accordingly we had assigned a selling explore to an international marketing research company TNS world(a) which had been for decades present in Egypt. By this we could ensure more accurate estimated results with first-rate standards.TNS Global has bidd us with the primary data by means of statistical research. We agreed upon that to follow the marketing research through the by-line steps.a) Defining Problem and research design. Our principal(prenominal) goal is to ensure the feasibility of memorialiseing the Egyptian market, and thorough which means.b) Developing the research plan. We needed to focus on adults and students as a primary target, athletes and well-preserved people as secondary target children and seniors as tertiary target, without neglecting business targets as well. The research needed to cover the following information The demographic, economic and modus vivendi characteristic of these segments. Main market segments in Egyptian market Perceived price for our outputs by Egyptian consumer Suitable market entry Preferable sales approach Acceptance of the Egyptians for French products-Egyptian consumer behavior and buying rhythm Suitable product features (size-packaging-colors-labeling) Competitors (local-international) Legal and soc ial environment in Egypt Raw materials-labor cost and other production cost if we consider producing topically Investment rules in Egypt online commercial databases, we emphasize the primary data through our research to guarantee its validity and objective conformity. Our primary data collection will use survey research approachc) Sampling plan. Random sample questionnaire is used to ask people, on our product and on the idea itself and how they react to it and how much acceptable for them it would be and such open-ended questions. To put hands on required information for research objective.d) Implementing the research plan. TNS Global had feed us with implantation that includes collecting, processing, analyzing the information.e) Interpreting and reporting the findings. Conclusions were sent to us in a vivid form that assured our idea about the viability and investment of our product in the Egyptian market.Part BExecutive summarycapital of Minnesota is preparing to launch one of i ts branches in Egypt, which is one of the big developing markets. Through direct investment to insure our control over the Egyptian market.Despite the presence of bakeries other competitors, we can compete because our pass combines both lavishly distinctive quality and suitable market price. We be targeting special segments in the consumers level, pickings advantage of naughty quality baked goods, and distinctive fares and desserts.The primary marketing objective of this research is to obtain first social class Egyptian market share of 20 %. This primary financial objective is to make first year sales revenue of 20 million EGP, while keeping losses to less than 6 million EGP.Current Market SituationPaul founded 120 age ago and is a market leader in France with more than 360 local branches and acquit spread over 20 countries worldwide , and is about to enter the Egyptian market directly . The demand of the Egyptians to cafes with baked goods is increasing rapidly which lead to increase in competitive pressure. Thus dependence on heights quality and a little over price according to other competitors will be obligatory to reach market share in this environment. Paul must carefully target specific market segments.Market DescriptionPaul market consists of consumers of all ages from young children up to seniors which could be athletic , thinking(a) or food admiring , who needs a quick pick and go or a gyp break in regular daily rear . In the first year we will focus on specific segments. Table A1 illustrates how Paul covers the needs of targeted consumers fruit ReviewPaul offers various high quality standard products indoor where clients can have ability to connect via the Internet while enjoying leisure or meeting or takea sort7 Plates specially for breakfast6 Varieties of plates for a quick lunch24 Different sandwiches with the revolution of 7 different breads10 Types of pies pizzas15 Salads8 talkative classic bread10 Pleasure bread8 Light and hea lthy bread4 Special meals for athletic and Healthy people11 Different types of cakes and desserts5 Type of ice creams9 Viennoiseries and sweet pastries6 Options of crepe paper36 Fresh juice , Hot and cold drinks7 tamp down away boxes of 12 mini special desserts of ones choiceTable A1Target SegmentsCustomer NeedCorresponding BenefitChildrenSweetsDessertsMacaroonsCakesTartsIce creamsStudentsQuick pick and go before classesSmall snacks on way back home or between coursesSandwichesViennoiseriesHot and cold drinksSaladsAdultsA little gathering between shopping, make up or hangoutsA quick drink on busy daysBreakfast or lunch platesFresh juice or other drinksCrepePies and pizzasSeniorsBuy goods for home or familyOne of the 22 BreadA box of mini dessertsAthletic and HealthyHealthy low fat foodFood to fit in their daily dietA grab before or after workoutOne of 8 types of the healthy breads with minerals and vitaminsThe peculiar collection of the healthy sandwichesOne of the meals for ath letic people depending on their activity and their daily need get-go year sales services are anticipate to be 20 million EGP based on sales of Pauls baked goods. During the second year we prepare to introduce Pauls restaurant which will provide the followingSoupsSide dishesSide sauceBig main dishes for Breakfast , Lunch DinnerMore menu variety from each category of the previous provided products matched ReviewIncreased entry of cafes and bakeries has pressured competitors to continuously let prices down and add more products every day.Competitors includeStarbucksCosta coffeeOn the runThe bakeshopStarbucks Is an international coffee shop from 30 years ago, offering blue and cold drinks, some desserts and very few sandwiches.Costa caf is a 28 years old coffee shop which is internationally recognized, that offers few sandwiches, salads and desserts. But recently is facing financial struggles due to the increase of competitors and being not able to provide a bigger variety of produ cts.On the run is the biggest competitor as its widely branded through almost 9000 stores worldwide , and one of the leading stores locally .It sells desserts , sandwiches, hot and cold drinks , salads , very few pizza.The bakery is one of the several shops which is considered to be a caf and a bakery that sells some bread , sandwiches , few desserts , hot and cold drinksDespite this strong competition, Paul can make out a distinct image and win recognition between these competitors and targeted segments. Our Unique way of baking bread is definite and doesnt exist anywhere else , adding Pauls large variety of products which have French background makes it unique in the local market , and never disregard 120 years experience.Distribution reviewPauls products will be change through Pauls stores and in like manner through other stores in top 20 Egyptian markets. Among the most important partners that will help us distribute that already has been contacted areSuper Markets. Metro ma rket Alfa market. Will allow Paul to present its product in their store.Local bakeries. The baker, Bread basket. Will buy from Paul its unique bread variety to offer in their store.School and University. American University Cairo , German School Cairo , British International School Cairo, German University Cairo French University Egypt , Le Collge de la Mere de Dieu . adopt agreed to deliver most of our sandwiches, desserts and beverages in their Cafeteria.Fitness centers and sport clubs. World gym, Golds gym and Platinum gym, will sell our healthy sandwiches and athletics meals.SWOT outlineStrengthVariety. Our customer has a wide range of varieties through which they can explore and try and not getting used to only one product.Price. Our products are in an affordable competing price according to the provided quality.Quality. Paul signed with the Ministry of Healths Terms of voluntary commitments nutritional progress under the Programme National Nutrition Sant on all its product s. Paul becomes the first brand of bakery and catering to obtain this recognition.Reputation. Paul has achieved an esteemed reputation throughout the years.Unique. Paul provides many unique products in the Egyptian market which can allow it to have a definite image between competitors which would help it to have the targeted market share.WeaknessBrand Awareness. As a start up, Paul didnt yet establish an image or brand name in the local market. Whereas On the Run and other competitors have a strong image and national brand recognition.Culture Background. Most of our product comes from French background, thus it will take a little date for the Egyptian culture to explore and familiarize with it.OpportunitiesPaul can take advantage of two major market opportunitiesLack in market. Egyptian market lacks most of the products that Paul would introduce.Increase demand. Egyptians demand to cafes with baked goods is growing rapidly.ThreatsIncreased Competition. More bakeries and cafs are en tering the Egyptian market. With hundreds of them, Paul must try on out clear note.Competitive pricing. Increased completion is pushing down the prices.Duration. Pauls products are all food based, thus it has to be sold during a short era period due to expiry and quality precautions.Objectives and IssuesWe have aggressive but reachable objectives during out first and second years of market entry.First year Objective. During the entrance of Paul for the first year in the Egyptian market, we are targeting for 20% share of Egyptian market.Second year Objective. We are aiming to achieve 30% of Egyptian market based on launching Paul restaurant and to achieve break even early in this period.Marketing outlinePauls marketing strategy mainly depends on positioning of product differentiation.Consumer targetPrimary consumer target. Adults and students which are considered upper to middle income individuals , who gathers around the tea-area in Paul and consumers more during their stay.Seco ndary Consumer Target. Athletes and healthy people, due to their demand for healthy and energetic food which contains high vitamins and nutrients that Egyptians market lacks.Tertiary Consumer Target. Children and seniors, as their needs would be little and met soft by mostly buying few products takeaway, like sweets, bread or desserts.Business TargetPrimary business target. Is mid to large sizedSchools Universities. As there are large amount of students who can benefit from its presence at their location especially during their break or between lectures as well as their ability to buy such product.Fitness centers Sport Clubs. Can profit from the existence of our products, pre or post workout, which could allow them to maintain their training and diet. attitudeThrough product differentiation, our product will position itself differently that other competitors.We will focus on high quality, unique taste and price added value.Product strategyPaul will be offering all the products rev iewed in the earlier product review section during the first year. We will establish Paul restaurant which will be offering, Soups, Side dishes, Side sauce, big main dishes for Breakfast, Lunch Dinner as well as more menu variety from each category of the previous provided products. Building Pauls brand name that advocates high quality satisfaction is a crucial part of our strategy. The brand name capital of Minnesota will be printed on every bags and packaging to strengthen its entrance in the marketing promotion.Pricing StrategySince Pauls products are new to this market, and due to high competition between prices Paul will introduce its products in a lower price during the first year until Pauls restaurant is launched by the second year afterward an addition o 10% on Pauls product will take place to compensate the costs being paid to establish the restaurant and to allow further expansion to cover more parts of Egypt.Our First Year average prices will be as follows.Breakfast Pl ates ( 14 35 LE )Quick lunch Plates ( 3 5 -56 L.E )Sandwiches with the varieties ( 24.5 42 L.E )Pies Pizzas ( 14 28 L.E )Salads ( 24.5 38.5 L.E )Grand classic breads ( 7- 10.5 L.E )Pleasure breads ( 7- 35 L.E )Light and healthy breads ( 10.5 35 L.E )Athletic and Healthy meals ( 40 65 L.E )Cakes and desserts ( 14- 28 L.E )Ice creams ( 7- 14 L.E )Viennoiseries and sweet pastries ( 5.6 14 L.E)Crepes ( 10.5- 17.5 L.E )Fresh Juices , Hot cold drinks ( 7 21 L.E ) engender away boxes ( 70 L.E )Distribution StrategyPauls channel strategy is to use its store location as a primary tool to distribute its products and to cuss secondly on well known supermarkets, local bakeries, schools, universities, fittingness centers and sport clubs , and lastly on online orders.Marketing OrganizationMarketing Communication StrategyBy combining and distributing all media messages simultaneously, we will fortify the brand name and the main points of product differentiation, especially out unique b reads and desserts. Media front will be comminuted before and during product introduction. Therefore, advertising will appear on a rhythmic basis to maintain brand awareness and convey numerous differentiation messages. We would coordinate Public Relations efforts to develop Paul Brand name and support the differentiation message. We will as well offer limited time promotions, a listed item for customers that will buy a dessert, breads or other products will be offered without charge and further such promotions to attract market heed and favors purchasing.Paul will provide free samples on first one month, for its business targets, as well as it would set special trades deals for retailers that would place deal orders. We would as well rent booths in grand malls to demonstrate our products for first two weeks, we also will offer discounts for purchases that exceeds 150 L.E.Multimedia advertising campaign will take place offers will be held with our partner radio stations, so that free gift coupons would be offered as a prize through them.Action ProgramsPaul will enter the Egyptian Market in September. The upcoming steps will summarize the action programs that will be taking place in the next six months.AugustWe will begin with 400,000 L.E. sales promotion campaigns, to introduce the awareness of Paul to the local bakeries, schools and universities, fitness clubs and supermarket and also to generate excitement for Pauls entry on October.SeptemberPaul will be launched. Internet, Radio, and print campaign will take place, directed towards our business and customer targets. The campaign will tape the products we offer, their quality, and that they are new and unique in Egypt.OctoberAs internet , Radio, Print multimedia campaigns persists , we will add consumer sales promotions , as offering promotions for large amount purchases , giving free item to consumers that buy desserts , breads and other products , as well as placing our booth in grand malls offering free samples.NovemberWe will distribute our products to schools, universities and supermarkets at this stage .Sales contest will be hold to offer prizes for sales person or one of our partners that offers our products, which had sold most out of our products.DecemberRadio ads will put on celebrities taking about their experience trying Paul. Prints, television and internet ads will show celebrities eating a dessert from Paul.JanuaryWe will offer out free coupons to our partner radio stations .we will place our products in local bakeries, fitness centers and sport clubs. Results of customer satisfaction survey will be counted and considered to make use of it in further promotions, and to review feedback of our products.BudgetsThe first Year sales profit is projected to be 20 million EGP. We predict the first year loss of 6 million EGP as there would be marketing reckon not less than 1 million EGP plus the start up expenses of factory building , machinery , and staff hiring and train ing.ControlsWe are arranging a Very wealthy control measure with strong monitoring method to ensure customer satisfaction. That will allow us to respond very quickly in correcting any problems that may arise.Part 3