Marketing Project End

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Nour El-din Ali 2122501 01140647043

Yassen Mahmoud 2122531 --


Youssef Ahmed 2122533 --
Momen Mohamed 2122507 --
Mohamed Mohsen 2122521 --
Mohamed Sheriff 2122483 --
Mohamed Ayman --
Brand Audit
1. Segment

 The company was established with the purpose of supplying the


army and the national schools at the time, providing a quick energy
snack for the soldiers in the barracks as well as the school children
on the playground. At the same time, BiscoMisr was the main
confectionary supplier for the local market. For decades BiscoMisr
acted as the trusted supplier for schools, governmental
organizations, the army and the traditional market.

 BiscoMisr was handed over from the public sector to the private
sector at the height of the revived privatization program in 2005.
Since then, the company has seen a total makeover of BiscoMisr’s
name.
 The company was put up for partial sale in 1999 when the
privatization process was on a roll. The private investor bought a
stake in the company but did not take an active management at
the time.

 Just six years later, on January 16, 2005, BiscoMisr was fully
privatized. The new shareholders took over the management in
May 2005.
 In January 2015, BiscoMisr became a subsidiary of the
Kellogscompany
 The main purpose of the companies to produce and supply
different kinds of biscuits, filled in biscuits, wafers, mint candy,
cereals and cakes. Moreover, the company specializes in some sort
of seasonal products as Kahk and Ghorayeba. Such these seasonal
products are enjoying a high degree of popularity in the Egyptian
market due to the Egyptians tradition in special ceremonies

2. Product Sales

 While there isn't information available for a brand audit of Bisco


Masr, it is worth noting that Kellogg's acquired Bisco Misr, an
Egyptian biscuit maker, for $125 million. This acquisition is
expected to generate international interest in the Egyptian market
and increase acquisitions in the food sector to benefit from an
increase in domestic demand. Additionally, forecasts suggest that
headline food sales in US dollar terms will continue to recover over
2019 following Kellogg's acquisition of BiscoMisr. While there is no
information available on the current sales figures of BiscoMisr's
products, it is known that the company had a strong market share
for snacks in Egypt (20%)
 Kellogg has acquired 86% of shares in BiscoMisr, an Egyptian
biscuit maker, for $125 million. BiscoMisr is a well-established
industrial company in Egypt, established during the nationalization
program as the Egyptian Company for Foods. While there is no
information available on the current sales figures of BiscoMisr's
products, it is worth noting that the acquisition by Kellogg is
expected to generate international interest in the Egyptian market,
and there are suggestions that acquisitions in the food sector will
increase to benefit from an increase in domestic demand in the
country. Additionally, forecasts that headline food sales in US dollar
terms will continue to recover over 2019, following Kellogg's
acquisition of Bisco Misr.

Pestle Analysis
1. Political factors

 Government regulations: The Egyptian government regulates many


aspects of business, including taxes, labor laws, and licensing
requirements. Changes in government regulations can impact the
costs of doing business, which could affect BiscoMisr's profitability.

 Political instability: Egypt has experienced political instability in recent


years, including protests, civil unrest, and a change in government.
This instability can create uncertainty for businesses, which may be
hesitant to invest or expand in such an environment.

 International relations: Egypt's relations with other countries can also


impact businesses operating in the country. For example, changes in
trade agreements or tariffs could impact BiscoMisr's ability to import
or export products.

 Corruption: Corruption is a problem in Egypt, and it can impact


businesses in many ways. For example, companies may need to pay
bribes to officials to obtain permits or licenses, or they may face unfair
competition from companies that engage in corrupt practices.
 Economic policies: The Egyptian government's economic policies can
also impact businesses operating in the country. For example, changes
in interest rates or inflation could impact the costs of borrowing
money or purchasing raw materials, which could impact BiscoMisr's
profitability.

2. Economic factors

 Inflation: Inflation is a persistent issue in Egypt, and it can impact the


cost of raw materials and manufacturing. If inflation rates are high,
BiscoMisr may have to pay more for inputs like wheat flour, sugar,
and other materials needed for production, which could reduce its
profitability.

 Exchange rates: BiscoMisr is likely to import some of its raw materials,


so exchange rate fluctuations can impact its operations. If the
Egyptian pound appreciates against the US dollar, for example, it
could make BiscoMisr's products more expensive, therefore reducing
demand.

 Consumer spending: As a producer of snack foods and other


consumer goods, BiscoMisr's revenue is dependent on consumer
spending. Economic downturns or high levels of unemployment can
reduce consumer spending, which could impact BiscoMisr's sales.

 Government spending: Government spending can also impact


BiscoMisr's operations, especially if the government is a major
customer. Changes in government spending on infrastructure,
education, or other sectors could impact BiscoMisr's sales or
profitability.

 Competition: Egypt's economy has been growing in recent years, and


this has led to increased competition in many sectors. BiscoMisr may
need to invest in marketing, product development, or other areas to
remain competitive and maintain its market share.

3. Social factors

 Demographic trends: BiscoMisr's success is tied to its ability to appeal


to different demographics. Demographic trends, such as changes in
age distribution, income levels, and consumer preferences, can
impact the demand for its products.

 Lifestyle changes: Changes in lifestyle, such as increased health


consciousness or busier schedules, can impact the types of snacks
that consumers want. BiscoMisr may need to adapt its products to
meet changing consumer preferences.

 Cultural values: Egypt has a rich cultural heritage, and cultural values
can impact consumer behavior. For example, during Ramadan, there
is increased demand for sweet and savory snacks. BiscoMisr may need
to tailor its marketing and product offerings to align with cultural
values.
 Urbanization: Urbanization is on the rise in Egypt, with more people
living in cities. This trend could impact BiscoMisr's sales, as urban
consumers may have different snacking preferences than rural
consumers. BiscoMisr may need to adapt its products to meet the
needs of urban consumers.

4. Technological factor

 Automation: Advances in automation technology, such as robotics


and artificial intelligence, can help BiscoMisr streamline its production
processes and reduce labor costs. However, the upfront investment in
this technology can be expensive, so BiscoMisr will need to consider
the cost-benefit of implementing automation technology.

 Digitalization: The increasing use of digital technology, such as e-


commerce platforms and social media, can help BiscoMisr reach more
consumers and expand its market share. BiscoMisr may need to invest
in digital marketing and e-commerce capabilities to stay competitive.

 Food safety technology: Ensuring food safety is a critical concern for


any food company, including BiscoMisr. Advances in food safety
technology, such as traceability software and food testing equipment,
can help BiscoMisr ensure that its products meet quality and safety
standards.

 Packaging technology: Packaging is a critical component of any food


product, and advances in packaging technology can help BiscoMisr
ensure that its products stay fresh and appealing to consumers. For
example, packaging that uses biodegradable or recyclable materials
can help BiscoMisr reduce its environmental impact.

 Data analytics: Advances in data analytics technology can help


BiscoMisr gain insights into consumer behavior and preferences,
which can inform product development and marketing strategies.
BiscoMisr may need to invest in data analytics capabilities or partner
with third-party providers to stay competitive in this area.

5. Environmental factor

 Climate change: Climate change can impact agricultural production,


which can affect the availability and cost of raw materials like wheat,
sugar, and other ingredients used by BiscoMisr. Extreme weather
events, such as floods or droughts, can also disrupt supply chains and
affect production.

 Resource depletion: BiscoMisr relies on natural resources such as


water and energy to operate. Environmental factors such as drought,
depletion of fossil fuels, and water pollution can lead to increased
production costs or interruptions in production.

 Waste management: As a food manufacturer, BiscoMisr generates a


significant amount of waste, including packaging materials and food
waste. It is important for BiscoMisr to implement effective waste
management strategies to minimize its environmental impact.

 Environmental regulations: The Egyptian government has


implemented various environmental regulations that can impact
BiscoMisr's operations. For example, regulations on air and water
pollution can lead to increased compliance costs or fines if not
followed.

 Consumer preferences: Consumers are becoming more


environmentally conscious and may prefer products that are
environmentally friendly. BiscoMisr may need to adapt its products
and operations to meet these changing consumer preferences and
reduce its environmental impact.

6. Legal factor

 Food safety regulations: BiscoMisr must comply with various food


safety regulations in Egypt to ensure the safety and quality of its
products. Failure to comply with these regulations can lead to fines,
legal action, and damage to its reputation.
 Labor laws: BiscoMisr must comply with Egyptian labor laws, which
regulate minimum wage, working hours, employee benefits, and
workplace safety. Failure to comply with labor laws can result in legal
action, fines, and damage to the company's reputation.

 Intellectual property laws: BiscoMisr must protect its intellectual


property, including its brand name, logo, and product designs. It must
also respect the intellectual property of other companies and
individuals. Failure to do so can lead to legal action and damage to its
reputation.

 Advertising laws: BiscoMisr must comply with advertising regulations


set by the Egyptian government, which includes guidelines on the
content, targeting, and timing of advertising. Failure to comply with
these regulations can lead to fines, legal action, and damage to the
company's reputation.

 Trade regulations: BiscoMisr must comply with import and export


regulations in Egypt, as well as regulations in countries where it
exports its products. Failure to comply with trade regulations can lead
to fines, legal action, and damage to the company's reputation.

Micro environment Analysis


In January 2015, BiscoMisr became a subsidiary of the Kellogg
Company.

Competitors:
Ülker
(11%)

Mcvitie's
(23%)
Ülker with market share 11%

Mcvitie’s with market share 23%


• Leading confectionery
company in the MENA
region and well
positioned for future
growth
Strengths • High brand recognition
• Focus on quality and
innovation
• Global reach of group
products

• Underperforming
Weaknesses acquisitions impacting
performance

• Wide brand offering


• Variety of Mcvitie's
digestive biscuits
Strengths
• professional employees
• strong mastery in biscuit
industry

• low utilization of the


internet
Weaknesses
• lack of research &
development
S w
o T
1. Strengths

 Egyptian company that uses Egyptian raw materials to


produce its products which is good for the country's
economy
 cheap product
 Highly qualified work force
 Global commitment they are driving transformational
change by addressing the worldwide issue of food
security by providing 3 billion better days by the end of
2030
 Expand feeding and nutrition education programs to
reach 2 million children worldwide
 Support 500,000 farmers, their families and
communities with Climate Smart practices
2. Weakness

 Low budget to produce cheap products


 Poor brand awareness
 Lack of innovation
 Poor choice of design and packaging
 All of BiscoMisr products contains a lot of sugar most
biscuits in
 BiscoMisr faces quality control issues

3. Opportunities

 New packaging and logo design


 Make discounts on several items to compete with
competitors
 Emerging markets
 Make new products that targets all life stages
 Make new ads that gets people attention to buy our
products
 Government subsidize the main raw material for
BiscoMisr
4. Threats

 Alexandria factory's location is in a residential area so


very soon the government may obligate the company
to relocate
 A lot of new competitors are getting in the market with
lower prices
 People’s life style tends to be more healthy
 Many of high middle and high class prefers
international products over domestic Egyptian products

Marketing research
1. Primary data collection

 About who did our survey was 53% female and male was
47% remaining.
 There ages ranges between 8 to 60+ , from 8 to 20 was
about 30% , from 20 to 40 was 60% and the remaining 10%
was from 40 to 60+ .
 The salary range we got from our interviewee was 69%
their salary range from 4,000 to 8000 per month, 19% was
from 8,000 to 12,000 and the remaining 12% was from
13,000 to 25,000 per month.
 For the price range of “ BISCO MASR “ products , 11,8%
think that overpriced and 76,5% think appropriate and
valuable for its price , 11,8% remaining it’s either high or
low .
 And asked for the quality, we got a wonderful opinions of
95% from different ages adore “BISCO MASR “ quality
 For packaging we got 20% don’t suit to them and the
remaining 80% of votes was excellent packaging.
 We asked Egyptians always their biscuits , chocolates,
wafers , fresh ant tasty , all votes agreed
 As we asked people they know that “BISCO MASR” made
EID AL-FTR biscuits and cakes also , they answered 76,5%
was knowing and 23,5% didn’t have a clue about this .
 For the Ads , we asked our voters where they have seen an
ads for “BISCO MASR” ( TV , RADIO , BANNERS ) and the
answer , no one seen an Ads .
 We asked if “BISCO MASR “is spread across all Egypt, 70%
known “BISCO MASR” and 30% quiet agree about it.
 As for interviewees who prefer to buy biscuits from it daily,
41,2% MCVITIE’S , 29,4% ULKER and 29,4% BISCO MASR .

2. Secondary data collection

 MCVITIE’s : 23% has a share of biscuits market in Egypt


 ÜLKER : 11% has a share of biscuits market in Egypt
 BISCO MASR : 20% has a share of biscuits market in
Egypt

Marketing strategy
Segmentation

Demographic segmentation

 Our product target ages between 4 – 20


 It mostly focus on children
 Income levels is up to 10,000 K

Psychographic

 Lower Class To Upper Middle Class Customers Which they


usually prefer Price over Quality

Behavioral

 You can eat biscuits at any time especially with tea


Geographic

 Our product spreads all over the country but we focus on


upper Egypt due to their financial situation

Market objective
 Our goal is to increase the market share from 20% to
40% by the end of 2024
 Increase brand awareness through advertising
 Increase net income from 5.2M (based on latest
Financial report) to 8.5M

Targeting
BiscoMisr targets all social classes starting from the least whose
income is over 2700 (minimum wage) so all the social classes
could have the ability to buy.
There is a variety of flavors to satisfy all tests

The segmentation we should focus on:


Different segments can be targeted (demographic &
psychographic)

1. Demographic: We could target children by putting a toy of


famous cartoon characters inside the packages and also
make packages colors attractive for the kids

2. Psychographic: Low and middle income segments can be


targeted by making advertising shows how value for money
BiscoMisr products are.
Positioning
Unfortunately BiscoMisr don’t fulfill the consumer needs in a way
that competitor don’t, they are just trying to level up to
competition.
Product attributes
 Comes with different flavors
 Fairly priced products
 Acceptable quality

Product benefits
 A good snack to take during the day for reasonable price

PODs:
 BiscoMisr products are easily accessible
 BiscoMisr Products are good value for money
POPs:
 They target children more often
 Having variety of products

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