Juhayna Juice Marketing Plan Final 1 PDF

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JUHAYNA JuiceMarketing Plan8/19/ JUHAYNA Juice Marketing PlanTABLE OF CONTENT: Table of Contents TABLE OF CONTENT: Table of Contents SITUATIONAL ANALYSIS: PRESNTED BY Error! Bookmark not defined. SWOT analysis PESTEL Competitive Analysis Market analysis MARKETING OBJECTIVES MARKETING STRATEGIES STP ...

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JUHAYNA Juice Marketing Plan 8/19/20

JUHAYNA Juice Marketing Plan

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JUHAYNA Juice Marketing Plan

TABLE OF CONTENT: Table of Contents TABLE OF CONTENT:........................................................................................................................................................... 2 PRESNTED BY ........................................................................................................................ Error! Bookmark not defined. SITUATIONAL ANALYSIS: ................................................................................................................................................... 3 SWOT analysis ................................................................................................................................................................. 3 PESTEL............................................................................................................................................................................... 5 Competitive Analysis ...................................................................................................................................................... 7 Market analysis ............................................................................................................................................................... 9 MARKETING OBJECTIVES ................................................................................................................................................. 10 .............................................................................................................................................................................................. 10 MARKETING STRATEGIES ................................................................................................................................................ 11 STP ....................................................................................................................................................................................... 12 Market Segment............................................................................................................................................................. 12 Market Targeting .......................................................................................................................................................... 14 Positioning statement .................................................................................................................................................. 15 Perceptual Map: ............................................................................................................................................................. 16 MARKETING MIX ............................................................................................................................................................... 17 Product ............................................................................................................................................................................ 17 Price ................................................................................................................................................................................. 19 Place ................................................................................................................................................................................. 20 Promotion ....................................................................................................................................................................... 21 BUDGETING ........................................................................................................................................................................ 23

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SITUATIONAL ANALYSIS: SWOT analysis 1. Strengths: o o o o o o o o o o

Biggest Market share. Strong brand name. Strong & high experienced management team. Wide variety of business portfolio & products. Well established distribution matrix. Well established and financed R&D division. Reasonable product price which enables strong competition in the market. Concentration on healthy products. Spread in a large number of countries all over the world. Availability of capital for expansion or expenses.

2. Weaknesses: o Lack of resources for packaging. o Lack of skilled functional & technical skilled workers. o Seasonality of production reduces plant capacity utilization increasing capital requirements and it restricts product mix. o Instable prices of fruits which affects the profit margin. o Dependability on imports in areas of shortages, such as milk powders. o Processing industry is smaller in scale than the main international competitors. o Scale in marketing is better than average but also below main international competitors, leading to cost disadvantages. o Emergence of strong competitors such as Almaraai.

3. Opportunities: o Egypt benefits from a large pool of cheap labor, particularly useful for labor intensive commodities. o The government will continue to invest in land reclamation projects, increasing area available for agricultural output and so cattle breeding. o Efforts towards banking-sector consolidation should bring down the cost of private sector credit and fuel small business growth over the long term. o Both global milk consumption and international dairy trade to continue to grow over the next decade. o There is a phenomenal scope for value addition with innovations in product development, packaging and presentation such as Butter, Yoghurt and Cheese. o Introduction of value-added products with different flavors, Ice creams, flavored milk, Dairy sweets, etc. are to be undertaken. P a g e 3 | 23

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o High birth rates which opens an opportunity for Infant foods as milk is a basic for nutrition.

4. Threats: o Urban construction is taking over on the already limited land suitable for agricultural production. o With the prices of many agricultural commodities increasingly volatile, Egypt will face increasing competition for many key imports. o Poor irrigation and diminishing water supply. o Most countries in the world have huge long-term potential to increase milk supply. o Global competition will be tougher “USA, New Zealand, Brazil, Pakistan, China and Saudi Arabia”. o Cost of production on-farm increases to an uncompetitive level driven by production (not profit) focus and/or compliance costs.

5. Strategic Choices INTERNAL  STRENGTHS

WEAKNESSES

EXTERNAL ↓

OPPORTUNITES

THREATS

OS STRATEGIES

WO STRATEGIES

Using the Strength of Juhayna R&D to introduce Value Added Products Taking advantage of their Market Share and brand name to hunt the opportunity of the high birth rate and the shortage in the market.

Filtering and seeking of good skilled workers Going global makes Juhayna cooperate and integrate the processes to achieve the economies of scale The government aid will support in stabilizing the prices of supplies and raw materials.

TS STRATEGIES

WT STRATEGIES

Exporting will be done carefully choosing the target markets to access e asily and smoothly The availability of capital will facilitate the access to any market and operations will function successfully in all alike markets.

To secure resources of supplies and raw materials It is so important, the research and development functions are of very high importance Cooperation and integration of processes with suppliers of packages and know-how transfer for future further expansion.

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PESTEL Political: Bio-security, food safety & other regulations from the ministry of health - Government future trends will most likely be more transparent, helping firms not politically connected with the government secure lucrative contracts - Following the new GATT Treaty, opportunities will increase tremendously for the export of Agricultural products in general and dairy products in particular.

Economic: Egypt GDP per capita 5.6% in the end of 2019. In addition to its population being the largest in the region, the fact that disposable incomes are set to rise markedly over the long term means Egypt’s country structure benefits from probably the most dynamic upside potential, which confirms the country’s standing as one of the Middle East’s most exciting investment destinations. Key Economic variables: Availability of credit& Level of disposable income Low wages in global terms are advantages for foreign investors, however it’s a disadvantage on the side of demand as the disposable income is low although it is slightly increasing. Interest rates 9.25% in 2019. Inflation rates Headline CPI published by the Central Agency for Public Mobilization and Statistics 9.2%. in 2019. Egypt Inflation Rate averaged 9.0%. Government budget deficits Despite a reduction, a number of restrictive tariffs remain in place and serve as a barrier to entry for many international brands. Consumer Spending in Egypt increased to 1257 EGP Billion in the fourth quarter of 2019 from 1248 EGP Billion in the third quarter of 2019.

Socio Cultural: Social, cultural, demographic, and environmental changes: With a population of 90 million, Egypt is the largest market in the Arab world. Population growth at 2.0% is considered high compared to developed countries. Nearly 45.0% of the population is under the age of 18, which creates a sizeable consumer base. Income per capita is enjoying higher than average growth as a result of ongoing economic reforms. The expansion of the middle class segment, economic openness and better living standards have improved health consciousness across growing segments of the Egyptian population. Industry statistics point to strong growth for years to come, supported by favorable demographic and economic profile. Technological: The use of automated systems is taking over; it helps so much in reducing the time of production while increasing the capacity and production. Example: the microchip injected in cattle to monitor and make sure that all the herd has been milked. Also there is the infrastructure of communication and connectivity P a g e 5 | 23

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that made it easier to communicate and so manage the supply chain. GDP - per capita (PPP): $6,600 (2011 est.) country comparison to the world:136 $6,600 (2010 est.) $6,400 (2009 est.) The high tech laboratories that enable fast and accurate examination of the products for healthy concerns and also for the R&D 2.3. Juhayna Food Industries Direct Competitors Competitive Forces, Identifying rival firms Juhayna is well positioned in the local market supported by its long track record, brand recognition and comprehensive product offerings. Juhayna‟s wide distribution network provides it with a competitive edge compared to other players as it enables it to reach out for different market segments in an efficient manner.

Ecological: o Health and Safety legislation has increased in developed countries o Labor market laws are becoming more complex in developed countries o External measures for CSR becoming increasingly well used to measure the impact of large corporations. o Increased regulation of advertising – especially when aimed at children – in developed countries.

Legal: o Agriculture, Irrigation & Fishing Crude Oil, Mining & Natural Gas Manufacturing Industries & Petroleum Products Electricity & Water Construction & Building Transportation & Communication Wholesale & Retail Trade Financial Services, Insurance and Social solidarity o Although there is a law prohibiting Urban construction taking over on the already limited land suitable for agricultural production, however there is not much enforcement - Some lack of awareness that lead to poor irrigation and diminishing water supply - High unemployment may lead to political resistance to privatization plans. o Regulations on labeling for food have increased in many developed countries

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Competitive Analysis Brand

Company

USP

MS

RMS

JUHAYNA

INTERNATIONAL CO. FOR MODERN FOOD INDUSTRIES (EL DAWLEYA)

23%

Leader -------

Almarai Juice

El Marai

15%

Follower 65%

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LAMAR Juice

Alexandria Agricultural Compan

10%

Challenger 43%

Beyti

The International Company for Agro Industrial Projects

8.7%

Niche 38%

Faragello

The Egyptian Food Company

4.3%

Niche 18%

Others

Others

35%

Nicher

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Market analysis Sales of Fruit & Vegetables Drinks Continue To Grow in 2019 Despite inflation high rates Sales of soft drinks in Egypt continue to grow in volume and value terms in 2019 yet slightly slower than the average CAGR growth achieved during the review period. New product launches and continuous advertising support maintained demand in spite of the economic slowdown. Still fruit/vegetable juice showed positive and strong growth rates. Consumers’ health awareness and changing life style drove the demand for fruit/vegetable juice. Saw healthy growth due to continuous marketing support, while other, less established, categories, including low calorie cola carbonates, showed strong growth in 2019, albeit growing from a small base. Sales of soft drinks will continue to grow over the forecast period, with healthy growth in both volume and constant value terms. A number of factors will be responsible: firstly, Egyptian demographics will drive sales. The country has a population of nearly 105 million consumers, more than 35% of whom are young consumers. Secondly, the hot climate and extended summers boost sales of fruit/vegetable juice. And lastly, the rise in the number of food service outlets will further increase demand for soft drinks.

No. of Acc/Users in (000)

9

2015

143,325,000 143,038,350 142,751,700 142,465,050 142,178,400 141,891,750 141,605,100 141,318,450 141,031,800 140,745,150 140,458,500 140,171,850 139,885,200 139,598,550 139,311,900 139,025,250 138,738,600 138,451,950 138,165,300 137,878,650 137,592,000 135,872,100 137,305,350 137,018,700 136,732,050 136,445,400 136,158,750 135,585,450 135,298,800 135,012,150 134,725,500 134,438,850 134,152,200 133,865,550 133,578,900 133,292,250 133,005,600 132,718,950 132,432,300 132,145,650 131,859,000 131,572,350 131,285,700 130,999,050 130,712,400 130,425,750 130,139,100 129,852,450 129,565,800 129,279,150 128,992,500 128,705,850 128,419,200 128,132,550 127,845,900 127,559,250 127,272,600 126,985,950 126,699,300 126,412,650 126,126,000 125,839,350 125,552,700 125,266,050 124,979,400 124,692,750 124,406,100 124,119,450 123,832,800 123,546,150 123,259,500 122,972,850 122,686,200 122,399,550 122,112,900 121,826,250 121,539,600 121,252,950 120,966,300 120,679,650 120,393,000 120,106,350 119,819,700 119,533,050 119,246,400 118,959,750 118,673,100 118,386,450 118,099,800 117,813,150 117,526,500 117,239,850 116,953,200 116,666,550 116,379,900 116,093,250 115,806,600 115,519,950 115,233,300 114,946,650 114,660,000 114,373,350 114,086,700 113,800,050 113,513,400 113,226,750 112,940,100 112,653,450 112,366,800 112,080,150 111,793,500 111,506,850 111,220,200 110,933,550 110,646,900 110,360,250 110,073,600 109,786,950 109,500,300 109,213,650 108,927,000 108,640,350 108,353,700 108,067,050 107,780,400 107,493,750 107,207,100 106,920,450 106,633,800 106,347,150 106,060,500 105,773,850 105,487,200 105,200,550 104,913,900 104,627,250 104,340,600 104,053,950 103,767,300 103,480,650 103,194,000 102,907,350 102,620,700 102,334,050 102,047,400 101,760,750 101,474,100 101,187,450 100,900,800 100,614,150 100,327,500 100,040,850 99,754,200 99,467,550 99,180,900 98,894,250 98,607,600 98,320,950 98,034,300 97,747,650 97,461,000 97,174,350 96,887,700 96,601,050 96,314,400 96,027,750 95,741,100 95,454,450 95,167,800 94,881,150 94,594,500 94,307,850 94,021,200 93,734,550 93,447,900 93,161,250 92,874,600 92,587,950 92,301,300 92,014,650 91,728,000 91,441,350 91,154,700 90,868,050 90,581,400 90,294,750 90,008,100 89,721,450 89,434,800 89,148,150 88,861,500 88,574,850 88,288,200 88,001,550 87,714,900 87,428,250 87,141,600 86,854,950 86,568,300 86,281,650 85,995,000 85,708,350 85,421,700 85,135,050 84,848,400 84,561,750 84,275,100 83,988,450 83,701,800 83,415,150 83,128,500 82,841,850 82,555,200 82,268,550 81,981,900 81,695,250 81,408,600 81,121,950 80,835,300 80,548,650 80,262,000 79,975,350 79,688,700 79,402,050 79,115,400 78,828,750 78,542,100 78,255,450 77,968,800 77,682,150 77,395,500 77,108,850 76,822,200 76,535,550 76,248,900 75,962,250 75,675,600 75,388,950 75,102,300 74,815,650 74,529,000 74,242,350 73,955,700 73,669,050 73,382,400 73,095,750 72,809,100 72,522,450 72,235,800 71,949,150 71,662,500 71,375,850 71,089,200 70,802,550 70,515,900 70,229,250 69,942,600 69,655,950 69,369,300 69,082,650 68,796,000 68,509,350 68,222,700 67,936,050 67,649,400 67,362,750 67,076,100 66,789,450 66,502,800 66,216,150 65,929,500 65,642,850 65,356,200 65,069,550 64,782,900 64,496,250 64,209,600 63,922,950 63,636,300 63,349,650 63,063,000 62,776,350 62,489,700 62,203,050 61,916,400 61,629,750 61,343,100 61,056,450 60,769,800 60,483,150 60,196,500 59,909,850 59,623,200 59,336,550 59,049,900 58,763,250 58,476,600 58,189,950 57,903,300 57,616,650 57,330,000 57,043,350 56,756,700 56,470,050 56,183,400 55,896,750 55,610,100 55,323,450 55,036,800 54,750,150 54,463,500 54,176,850 53,890,200 53,603,550 53,316,900 53,030,250 52,743,600 52,456,950 52,170,300 51,883,650 51,597,000 51,310,350 51,023,700 50,737,050 50,450,400 50,163,750 49,877,100 49,590,450 49,303,800 49,017,150 48,730,500 48,443,850 48,157,200 47,870,550 47,583,900 47,297,250 47,010,600 46,723,950 46,437,300 46,150,650 45,864,000 45,577,350 45,290,700 45,004,050 44,717,400 44,430,750 44,144,100 43,857,450 43,570,800 43,284,150 42,997,500 42,710,850 42,424,200 42,137,550 41,850,900 41,564,250 41,277,600 40,990,950 40,704,300 40,417,650 40,131,000 39,844,350 39,557,700 39,271,050 38,984,400 38,697,750 38,411,100 38,124,450 37,837,800 37,551,150 37,264,500 36,977,850 36,691,200 36,404,550 36,117,900 35,831,250 35,544,600 35,257,950 34,971,300 34,684,650 34,398,000 34,111,350 33,824,700 33,538,050 33,251,400 32,964,750 32,678,100 32,391,450 32,104,800 31,818,150 31,531,500 31,244,850 30,958,200 30,671,550 30,384,900 30,098,250 29,811,600 29,524,950 29,238,300 28,951,650 28,665,000 28,378,350 28,091,700 27,805,050 27,518,400 27,231,750 26,945,100 26,658,450 26,371,800 26,085,150 25,798,500 25,511,850 25,225,200 24,938,550 24,651,900 24,365,250 24,078,600 23,791,950 23,505,300 23,218,650 22,932,000 22,645,350 22,358,700 22,072,050 21,785,400 21,498,750 21,212,100 20,925,450 20,638,800 20,352,150 20,065,500 19,778,850 19,492,200 19,205,550 18,918,900 18,632,250 18,345,600 18,058,950 17,772,300 17,485,650 17,199,000 16,912,350 16,625,700 16,339,050 16,052,400 15,765,750 15,479,100 15,192,450 14,905,800 14,619,150 14,332,500 14,045,850 13,759,200 13,472,550 13,185,900 12,899,250 12,612,600 12,325,950 12,039,300 11,752,650 11,466,000 11,179,350 10,892,700 10,606,050 10,319,400 10,032,750 9,746,100 9,459,450 9,172,800 8,886,150 8,599,500 8,312,850 8,026,200 7,739,550 7,452,900 7,166,250 6,879,600 6,592,950 6,306,300 6,019,650 5,733,000 5,446,350 5,159,700 4,873,050 4,586,400 4,299,750 4,013,100 3,726,450 3,439,800 3,1...