In this assignment I will tackle the option of launching an existing brand in the company portfolio that will be launched in a new country and I chose Egypt where I live to be the country for the launch. I will demonstrate through many internal, external and market assessments and planning how it can be profitable to launch the brand: “Slim Fast” in Egypt while using 1-2 products at the start up of the plan then add more as the demand increases for it. I will start with the situation analysis that will tackle Egypt’s critical situation and its influence on the marketing plan for the brand also the strengths and weaknesses of the brand, which might increase or decrease its competitive advantage in the Egyptian market. All information below are combined from many resources like: •Economist intelligence unit: Egypt Report
•El ahram and el Akhbar local newspapers.
I. Situation Analysis:
Generic and key facts about Egypt:
Full name: Arab republic of Egypt
•0-14 years: 32.7%
•15-64 years 62.8%
•65 and over 4.5%
•Male: 24 years
•Female 24.6 years
Population growth rate: 1.96%
Area: 1 million square meters, only 5% occupied with people the rest is desert Languages: Arabic the native language.
Population (July 2011 official estimates) Population: 88 million and its main cities are: •Greater Cairo (capital; Cairo, Giza, Helwan, 6th of October & Kalyoubia governorates) 18,440,076 •Alexandria 4,123,869
•Port Said 570,603
In January 2011, thousands of young Egyptians went into the streets leading the 25th of January revolution against the existing regime then, which resulted in the collapse of the whole existing political system. Since then Egypt is experiencing a lot of uncertainty and instability within the politics, economy and security. This instability is impacting the economy and trade enormously in a negative way but on the other side there is hope for a better future that can in the short term start boosting the economy and harness security which may result in a better future for the nation. PESTLE Assessment:
1.A new cabinet was formed in march 2011 after 3 consecutive cabinets post revolution 2.New people assembly, parliament that has 70% Islamists, 454 members for 5 years 3.More than 30 new parties were formed
4.Constitution is in the process of being written
5.No president currently and there is a fear from many groups that the next one will be a fanatic Islamist 6.Advisory Council was formed of 264 members and 60% of it are Islamists 7.Muslim Brotherhood is the dominating group and party that controls the political life in Egypt and huge fear that it turns to be like the old regime days. 8.High level of uncertainty in political outlook
1.Egyptian pound will continue to depreciate against the dollar in 2012 as capital inflows remain subdued and foreign-exchange reserves are depleted. The currency will average E£5.75:US$1 in 2013-16. 2.Inflation rate in 2011 was 13.8% compared to 12.8% in 2010 and 11.9% in 2009 3.The main source of income flowing in Egypt is through tourism which was cut by 70% in 2011 because of insecurity and terrorism 4.Foreign currency and gold reserve decreased from $35.7Billion in 2010 to $15Billion in 2011 5.10% of population has 80% of the wealth of Egypt.
6.Increase in the level of prices of Energy reflected in the increase of gas and petrol prices. 7.The Government is temporarily restricting imports of entertainment goods. Socio-cultural Forces:
1.High level of unemployment
2.High level of crime
3.The majority feel insecure because of the numbers of prisoners who ran away during revolution 4.People started choosing only the things they need and not all what they want because of many financial constraints and physiological insecurity. 5.In the large scale a lot of health problems (Diabetes, High blood pressure, extra weight …etc) coming mainly from the poor eating habits. 6.The rate of birth increased to reach 12.5% yearly, which means: Egypt grows by 1 Million every year in population. 7.
1.Egypt’s use of Internet and social networks increased by 200% in the last 2 years and all the political analysts agree that the strongest force now for marketing, mobilizing and impacting people is through social media. Egypt has almost 11 million users of Facebook in March 2012 compared with 5 million users in January 2011, which makes a percentage of 13.8% of all population are on Facebook. Egypt is ranked the number 20 of all countries in the world that has Facebook users. (www.socialbakers.com) 2.Egyptians between the age of 13 and 40 are likely to send and receive 20 SMS per day. 3.The number of mobile phone lines in Egypt grew in the last 10 years from 150.000 users to 62 Million users. 4.Egyptian youth are more likely to use the latest trends in fashion and give high importance on the shape of their bodies. Legal Forces:
1.Law is not respected in Egypt since the revolution but there are clear steps from the government to return the authority of Law in order. 2.All export and import laws are being revised to give more transparency to both importers and exporters. Ethical Forces:
1.Egypt social composition is as many other places in AFRICA has a huge Gap between the rich and poor causing many problems of negative outlook towards the rich people. 2.Also for the same reason the poor will always feel that the rich people don’t have any sensitivity towards them. 3.Egypt’s ethics is in a turmoil as the Islamic parties are pushing Islam to be the foundation of Ethics which might stop all Tourism, night life, arts and media …etc SWOT for Unilever Egypt and the “Slim Fast” brand:
1.Unilever has an excellent reputation in the market
2.Unilever is an established company in the market that has a strong internal organizational structure and some of best competencies in the market. 3.Existing relationships and channels with retailers and buyers 4.Wide variety of successful products existing for years in the market 5.Slim Fast is already a successful for more than 25 years in countries like USA and England and has many success stories. 6.Slim Fast promotes good health and this is needed by all Egyptians 7.Slim Fast as a brand has wide variety of products which at least 3 of them acceptable by the Egyptians 8.Unilever produces its products locally and Egypt has many factories producing food, personal care and home care which will help if there will be a new brand like Slim-Fast to be produced locally. Weaknesses:
1.Most probably can be seen by many people as optional products not needed therefore under the present financial circumstances they won’t buy it 2.The brand’s English name might slow the sales of the brand because of the Islamic negative outlook towards western products. 3.The target group that will use this brand are the rich people and this is a small target. Opportunities:
1.Slim Fast will be one of a kind in the Egyptian market as all other diet supplements are either perceived as medicines or with no efficiency 2.No competitors especially with Slim·Fast Optima Shakes who have a similar product. 3.Egyptians are suffering from lots of pressure and promoting a healthy trusted and dietary brand like Slim-Fast will attract many if we used the right marketing strategies for that. 4.This brand can be combined with other health solutions and be sold as a solution (ex: Gym programs, diets …etc) Threats:
1.Political and security instability can impact the sales of the brand negatively 2.Raw materials may increase which might increase the price of the products 3.Some competitors may arise and they will think in the same way.
PESTLE and SWOT Conclusions from Assessments:
A. Conclusions drawn from PESTLE assessment by priority:
a.Egypt is getting closer to a more stable and transparent era where the new president, the new people’s assembly, the new government and the advisory assembly will all work on the country’s economical and political advancement starting form 2012. b.It is obvious that whoever has in its marketing plans clear strategy to access and penetrate the Internet social networks and know how to use these tools the best, will reach the masses of people and be able to impact them. c.Whatever products that can bridge the gap between the rich and the poor will be respected by the masses (Maybe this will push us to think about the Corporate Social Responsibility’s services that Slim-Fast can bring to the grass root level of people) d.It might be wise not to invest a lot in the beginning of launching any new product as many things can happen that may change the customer’s taste, but to find a process of continuous assessment for our customer’s needs and tastes. B. Using the S.W.O.T matrix we can reach what are our strategic Goals:
OpportunitiesObjectives that will use strengths to take advantage of opportunities a.Creating Marketing plans that can use existing unilever customers and whole sellers to reach to all market planned segments smoothly. b.Create and combine Slim-Fast products with other products or services to promote health and draw the Egyptians out of the pressure of gaining weight.Takes advantage of opportunities by overcoming weaknesses a.In branding the products choosing Arabic/Egyptian slogans even maybe changing the name to an acceptable Arabic name, to get over any negative sentiment towards a western product. b.Combine the Slim- Fast products with solutions that can benefit all social levels in Egypt. ThreatsUsing strengths to avoid threats
a.In production trying to use local raw materials as much as possible to avoid any increase in raw materials prices resulting form changes in exchange rates.
Minimize weaknesses and avoiding threats
a.Accelerate the strategy for getting the brand in the markets and ensure that Unilever is the market leader for this brand and this will give the company a push ahead of all its competitors b.In packaging the product we can create a very cheap version that can be sold in the rural areas under the same name or another name. II. Marketing Objectives:
Description of Slim-Fast! Brand:
Product description and specifications (adapted from www.unilever.com): •Slim-Fast is a brand that helps fill the gaps between main meals with a low level of calories products but yet gives a feeling of filling for up to 4 hours. •The Slim-Fast brand has a wide variety of products like milk shakes, high protein chocolate bar, powder shakes …etc that can fit the taste of a wide variety to people. •Products are composed of high level protein and fats
•The Slim-Fast ready made shakes are designed especially to all who have problems in digestion that’s why it is lactose and gluten free, also lower in fiber, added to this a combination of 24 vitamins and minerals for active adults. •Today it’s the world’s most clinically tested food-based range of weight management products, with over 30 published studies. Benefits:
a.Slim-Fast will be able to satisfy the needs of the customer who: •Are seeking to loose weight and cannot control the hunger for long. •Want to have a filling, healthy, delicious and available type to snacks b.Slim-Fast will fulfill the consumer need by:
•Making the Slim-Fast products available at a reasonable price for the consumers •Making an easy access to these products within all kinds of shops and through the internet •Integrating the Slim-Fast products within complete weight loss programs that can be personalized for all consumers and help them to find a balanced and healthy diet plan through the Internet or by making those plans available at the shops for free. c.Consumers especially women, will value the benefit of having shakes and chocolate bars with competitive prices with all similar kinds but with very low amount of calories and promoting good health. d.The products will surely make all people who will use them feel better enjoying nice snacks and not feeling guilty gaining weight. e.Not only that the brand promotes an online system where everyone can tailor a weight loss plan and follow it, but it also provides a qualified team of people who can answer the calls of consumers and reply on their questions regarding the weight loss plans and give them 24/7 support either by phone or e-mails. Marketing Objectives:
Based on the choice of having an existing brand to be marketed in a new market, and based on Asnoff’s strategies matrix, Asnoff (1987): I found that the strategy I will be using is a “Market development Strategy” which focuses on developing this new market through new segments, new distribution channels and new geographical areas. From Asnoff and all external and internal analysis I started with Unilever big vision and then I adapted “Slim-Fast’s” mission for the Egyptian market and broke this into big goals and then into details SMART objectives as follows: The long term objective that we want to reach is:
The long term Goal is: 10% of all Egypt population will buy at least one of Slim-Fast’s products daily, in 4 years. Specific objectives:
1.500,000 Egyptian to enroll in the Slim-Fast weight loss program at the end of year 1. then grow to 2 millions before the end of year 4 2.Establish a very strong Customer Relation Management System with a very effective data base process and equipped people to manage it at the beginning of year 1. 3.Establish a strong R&D team able to assess continuously the needs of the consumers, at the beginning of year 1. 4.Allocate all possible geographical and innovative types of channels of distributions for the brand, beginning of year 1 5.Implement the 3 steps Slim-Fast weight loss program with a personalized plan for every individual registered, starting year 1
6.Creating the online social networks pages and channels serving the consumers, year 1. 7.Choose the right pricing strategy that can allow the medium and high social level to buy at least once per day, Slim-Fast’s products and build the break even point around it, at the beginning of year 1.
III. Marketing Plan
1. Market Segmentation and target market: Who are our target Market segments? Slim Fast Brand is a unique brand that needs accurate data regarding the amount of people potentially can buy it and the channels of distribution in the market baring in mind: Profitability, Reachability and Measurability. The market segmentation criteria that I chose are:
a.Demographic: The population characteristics who likely will use the brand: 1.Gender: Women and men (Will give a bit more focus on Women) 2.Age: 18 – 60 (60% of Egypt population) 3.Social level: (upper class 5%, middle class 15% and lower middle class 25%) b.Geodemographics: The geographical areas where the brand can be sold including the right target groups who can buy the product: 1.All universities: The age that psychologically will need always to stay fit and use healthy, there are more than 7 million students in Egypt’s universities and it is a great segment of people who can use the brand.
2.Main shopping malls in the main cities of Egypt: These are the places that attracts the 20% of the high and medium level of Egypt but there are too many options of other brands, so it needs double the effort to market Slim-Fast there. 3.All sport clubs, fitness centers, sports academies and gyms: I think this will represent the real future for the brand as the market is already open to receive any low calorie new product, but we need to invest in making these segments as the family of Slim-Fit by using CRM and internet combined weight loss program. 4.All higher-level vacation destinations: An existing segment of the market that will also buy any low calorie delicious type of snacks. 5.All private compounds around Cairo and Alexandria: are great places where the brand’s products can be sold.
Strategic Position analysis for Geodemographics (Shown in the graph below) and the clear priorities that we need to focus on in terms of market segments: •Will help in narrowing down the above segments into few where we need to focus more. •Will tell us which are our priorities in investment in which segment. •After analysis of the Geodemographics criteria I found that we need to: 1.Harvest: B3: All sports clubs, gyms and fitness centers and B5: all private compounds in Egypt 2.Grow: B1: the universities where if we have the right effective marketing campaigns this will soon be a Harvest and B4: The vacation destinations which needs also some investment in campaigns especially before the summer 3.Exploit: B2: all big shopping malls as it needs a huge investement and effort trying to make the brand much more seen that other brands, I guess it is a very important segment but we will wait for year 2 to start focusing on it. 4.Nothing to be avoided now but we will give a high priority to what we need to harvest and grow.
2. Positioning and Differentiation
The key positioning and differentiation criteria for Slim-Fast derived from the S.W.O.T. and surveying what the customer really need in a product that can help in loosing weight are: 1.Low Calorie kept at 200
2.Variety of products (Shakes, Chocolate bars …etc)
3.Delicious (It really taste good not like the usual diet products) 4.Healthy (no side effects, tested and proofed)
5.Accessible (in all the shops with any size, buy through the internet) 6.Price is below average (The average price of all Chocolate bars, shakes …etc is $1 to $2per item, Slim fast products will be kept at $1 or below with some promotions and in some geographical areas) 7.It is more than a product, it is a plan for weight loss
8.The 24/7 support for weight loss plans (No company has anything like that in Egypt) Making all these criteria the basis fro differentiation will position Slim-Fast brand as the favorable for many Egyptians and will lead us to a huge increase in sales, which can reach the preset big goal of having 10% of all Egyptians using at least one product of Slim fast daily in 4 years. 3. Marketing Mix:
Below is an outline for the (4Ps: Product Branding, Pricing, Promotion and Place of distribution).
Since our main target segments are all sports related communities, universities and the high social level then the components of branding will help us reach those: a.Identity:
i.Logo: The same international logo will be used to build on the success of the brand ii.Slogans: should be with Egyptian slang to reach the masses iii.Name: should be the same like the international brand
iv.The use of images should include Egyptians and Egyptian places b.Message/s: should promote better life, better health, a new life style i.Satisfy your hunger without gaining weight
ii.Live longer, live slimmer
iii.Slim can be fast
iv.A new beginning thinking afresh about weight loss
ii.Radio, especially FM music channels in Arabic and English iii.Posters in clubs
iv.Booths in clubs and universities
vi.Social networks (facebook, Tweeter …etc)
d.Character: answer the question why this brand can be trusted? i.Highlighting that the brand started since 25 years ago and still millions around the world using it successfully ii.Highlight that it is not only product but the company is providing customer service 24/7 to help people find the best weight loss and good health food formula. e.Brand’s relationship with People
i.The brand should highlight special groups who are our main target groups among them: (Sports oriented people, Women from medium to high level socially, university students) ii.Brand should carry the message of: “Join the family of Slim-Fast” iii.The brand should highlight its Corporate Social Responsibility in the market for poor people as it is discussed in the PESTLE analysis.
Because the market is still young in terms of products like Slim Fast, also because we want to reach the masses of people to buy the product I will use the Penetration pricing strategy where I want any product to be sold a little bit lower that the market benchmark from products that somehow similar to Slim Fast’s brand. The benchmark in the market is between $1 and $2 (Researched and compiled from real prices in the market with brands like Nestle’, labanita, Cadbury and galaxy). So we will keep the price per unit at $1 and in some geographical areas maybe lower.
3.Promotion: Below is the promotional plan for year 1:
i.Launching event with media coverage (Month 1)
i.Broadcast ads on TV and Radio (5 times per day week 1 and 2 of each month and 2 times per day week 3 and 4 of each month) ii.Billboards in the main roads of key cities in Egypt (All year) iii.Billboards in sports clubs (All year)
iv.Through a reliable CRM system sending e-mail shots with (Biweekly e-mail with a process to grow the Data base) iii.Marketing materials
i.Brochures with Slim Fast programs (To be printed in Month 1 and distributed all year) ii.Flyers and posters sports oriented to be given in clubs, in soccer tournament …etc (To be printed in Month 1 and distributed all year) iv.Sponsorship
i.For events that has to do with Sports and fitness (one every month) ii.For events in universities that can equip university students for the work environment (once in every one of the biggest 5 universities in Egypt) 2 in Cairo, 1 in Alex, 1 in Menia and another one in Suez. v.Exhibitions and Fairs
i.Participate with a booth at every mass exhibition in Cairo and Alexandria (Almost 24/year) ii.2 Job fairs per year for university students while inviting HR managers from 100 different companies and start matching fresh grades with positions in those companies or even with internship programs. (Twice per year) vi.Publications: print a multi diet booklet integrated within it the Slim-Fast products and gives it away. (Printed month1 and give it away all year) vii.Free samples:
i.Give away free samples at the Cairo Alexandria toll (every weekend in the summer and spring) ii.To be given in carnivals and country fairs.
i.For everyone who will register on the website will get 1 drink for free form Slim-Fast ii.For everyone who will order a box of 24 units will have a 10% discount ix.Website and social media
i.Start a state of the art website linked to the customers’ Data Base and e-mail system. (once at the beginning of the year and to be maintained weekly) ii.Start a web campaign that includes a massive presence in social media like facebook (10millions users in Egypt)
4.Place of distribution:
i.Through all retailers who deal already with Unilever
ii.In all Sports Clubs in Egypt
iii.Booth in every university of Egypt
iv.In high level trips in Egypt.
4. Marketing Mix – Global and E-Business:
E-business can play a major role with the brand as follows:
i.Customers who buy any Slim-Fast product can get online access to the brand website and enroll themselves into the personalized Weight loss program ii.If we were able to use the social networks in an efficient way we might reach 10 millions with our brand messages. iii.Having a strong CRM software and a team who can make the distances shorter between the customer and the company in terms of complaints, new ideas …etc iv.Slim-Fast can use the E-commerce which might help the customers to buy the brands products online and pay with their credit card and maybe the company can have a delivery system that makes it easy for the goods to reach home. v.Tied to the E-commerce system many services can be provided like reading success stories, reading products specs, partaking in the contests and innovation processes …etc
IV. Marketing Budget for the Brand:
Based on the above promotional plan and after taking the average between 2 local companies in Egypt (Pledge and Seed) on the prices of all items below is the marketing budget for year 1 for the brand Slim-Fast. All calculations are in Egyptian Pound where 6 Egyptian Pounds = $1
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