International Marketing

Final Project

Ellie Home
Marke’ng Plan Situa’onal
Analysis Summary:
Foundation / History:
Ellie Home was founded in 2013 by Nahla and Nour, two sisters who were Born and raised
in Egypt influenced by Egypt!s stunning art and culture and was moved by both its disarray
and allure. They work hard to produce expertly handcrafted pieces that leave a possitive
and long lasting impact.
Mission
To inspire the celebration of life with family and friends through the beauty of handcrafted
Egyptian designs for the table and home.

Vision
Bringing each house in the world a unique egyptian piece of art.

SWOT
Strengths
• Revive Egyptian Handcrafted Pottery Making (Traditional taste )
• Using Recycled Materials in making our products.
• We ensure sustainable quality and finish.
• We create customized pieces that are unique, creative and useful • Our products
are Eco friendly.
• Having one of the best training and development program in the industry to
increase the number of the craftsman
 • We work with many different NGO and community service organizations in order
to give back to the community and help empower women
Weaknesses
• Scarcity of craftsmen with unique and special talents.
• Available at limited physical locations.
• Lack of product diversity.
• We own small workshop, so the production is limited.

Opportuni’es:
• According to a survey conducted by the Economists, Italy ranks eighth with respect to
quality of life and has third largest gold reserves in the world so Italy enjoys a high
standard of living.
• Italians have historically been considered brand loyal, however this trend has been
changing in recent years, with consumers being more interested in trying new brands
(43% according to a survey by Nielsen declare to be open to change their favorite
outlet in case of interesting promotions from new outlets).

• Italian consumers often rely on the information provided on the internet and on social
networks, especially those coming from other consumers like comments and reviews
and Italy is the EU country with the highest share of influencers per population
(2.22%). In a recent study conducted by Buzzoole (2021), 85% of consumers
interviewed claim to take the opinions of influencers into consideration when buying a
product.
Threats:
• There is a shortage of skills in certain businesses and major unemployment in others.
The unemployment rate in Italy is 7.8% in October of 2022
• Weakness of the labor market, this is mainly because there are over 6.3 million men
and women aged between 15 and 74 who are not properly integrated into the labor
market.
• The inability to meet supply and demand in the country which affects 22.8 percent of
the total potential Italian workforce, with peaks of over 40 percent in the South.
• According to the GCI Report in the year 2010, the most problematic areas that act as
impediments to conducting business in the country are the Government!s
bureaucracy, tax rates and access to financing.
• Alessi workshop brand is a strong competitor known as a leading exponent of the
"Italian design factories”.
• Tognana brand is another strong competitor which occupies the position of market
leader as it focuses on innovation, renewal and diversity.
• L!Abitare brand is another strong competitor which blends Italian style with the
creativity of designers from all over the world. The brand offers services that combine
modernity and a touch of elegance with the history of Italian architecture.
• Italy is part of the trade system of the EU and importing and exporting are covered by
the EU Taxation and Customs Union Tax policy. The European Union (EU) indirect
taxation policy coordinates law on value-added tax (VAT) and excise duties and this
can give some countries unfair advantage over other countries.

PESTEL
1- Poli’cal:

Presiden’al authority:
The execu)ve power in Italy belongs to the Government . It exercises it through the Public
Administra)on which it heads and through the issuing of legisla)ve acts such as regula)ons.
The Government is made up of the Prime Minister (also called Head of Government, Premier or
Prime Minister) and the Ministers who deal with the individual sectors in which the state operates
(educa)on, health, economy, jus)ce, and rela)ons with other states.
The Government is also responsible for the domes)c and foreign policy of the country and must have
the trust of the two Chambers of Parliament, the Chamber of Depu)es and the Senate of the
Republic.

Cabinet:
Council of Ministers proposed by the prime minister, known officially as the President of the Council
of Ministers and locally as the Premier nominated by the president, the current deputy prime
ministers, known officially as vice presidents of the Council of Ministers, are MaLeo SALVINI (L) and
Luigi Di MAIO (M5S).
Government type: Parliamentary
republic

Cons’tu’on:
It was ini)ally established in 1848 (originally for the Kingdom of Sardinia and adopted by the
Kingdom of Italy in 1861) and was lately edited on 22 December 1947, adopted on 27 December
1947 and entered into force on the 1st of January 1948.

The Italian cons)tu)on consists of 139 ar)cles classified into 3 parts the fundamental principles, the
organiza)on of the Republic and the transitory and final provisions.

When changes were proposed by both houses of Parliament, passage requires two successive
debates and approval by absolute majority of each house on the second vote. A referendum is only
required when requested by one fi‘h of the members of either house, by voter pe))on or by the 5
Regional Councils where elected legisla)ve assemblies of the 15 first level administra)ve regions
and 5 autonomous regions of Italy and referendum not required if an amendment has been
approved by a two thirds majority in each house in the second vote. a) Legal system:
civil law system is based on judicial review of legisla)on under certain condi)ons in Cons’tu’onal
Court.

b) Interna’onal law organiza’on par’cipa’on:

Accepts compulsory ICJ jurisdic)on with reserva)ons and accepts ICCt jurisdic)on.

Parliament:
Parliament consists of the s. Parliaments meet in joint session only in cases established by the
cons)tu)on.
Descrip’on:
Bicameral Parliament or Parlamento consists of:
Senate or Senato della Repubblica (320 seats, 116 members directly elected in single seat
cons)tuencies by simple majority vote, 193 members in mul)-seat cons)tuencies and 6 members in
mul)-seat cons)tuencies abroad directly elected by party-list propor)onal representa)on vote to
serve 5-year terms and 5 ex-officio members appointed by the president of the Republic to serve for
life).

Chamber of Depu)es or Camera dei Deputa) (630 seats, 629 members directly elected in single and
mul)-seat cons)tuencies by propor)onal representa)on vote and 1 member from Valle d'Aosta
elected by simple majority vote, members serve 5-year terms).

Elec’ons:
Senate - last held on 25 September 2022.
Chamber of Depu)es - last held on 25 September 2022.
Judicial branch:
Supreme Court of Cassa)on or Corte Suprema di Cassazione (consists of the first president (chief
jus)ce), deputy president, 54 jus)ces presiding over 6 civil and 7 criminal divisions, and 288 judges,
an addi)onal 30 judges of lower courts serve as suppor)ng judges, cases normally heard by 5-judge
panels, more complex cases heard by 9-judge panels), Cons)tu)onal Court or Corte Cos)tuzionale
(consists of the court president and 14 judges).

Judge selec’on and term of office: Supreme Court judges appointed by the High Council of the
Judiciary, headed by the president of the republic, judges may serve for life, Cons)tu)onal Court
judges - 5 appointed by the president, 5 elected by Parliament, 5 elected by select higher courts,
judges serve up to 9 years.

Subordinate courts: various lower civil and criminal courts (primary and secondary tribunals and
courts of appeal)

Pressure groups:
Manufacturers and merchants associations:
Confcommercio
Confindustria
Organized farm groups: Confcoltivatori
Confagricoltura
Major trade union confederations: Confederazione Generale Italiana del Lavoro or CGIL [Susanna
CAMUSSO] (left wing)
Confederazione Italiana dei Sindacati Lavoratori or CISL [Raffaele BONANNI] (Roman Catholic
centrist)
Unione Italiana del Lavoro or UIL [Luigi ANGELETTI] (lay centrist)
Other: Roman Catholic Church
These are lists of a country's political, social, labor, or religious organizations that are involved in
politics, or that exert political pressure, but whose leaders do not stand for legislative election.
Trade agreements:
The Geographical Indica’ons Agreement, signed last November by EU Trade Commissioner Phil
Hogan and Chinese Trade Minister Zhong Shan, is the first major bilateral trade agreement that will
protect the 100 geographical indica)ons of each side, including 26 Italian products. Italy has a great
commercial tradi)on. Deep in the Mediterranean, the country is posi)oned and strengthens its
commercial poten)al not only with Eastern Europe, but also with North Africa and the Middle East.
In the past, Italy has had ac)ve rela)ons with Eastern European countries, Libya and the Pales)nian
peoples. Membership of the EEC from 1957 further increased Italy!s trade poten)al, which led to
rapid economic growth.

Trade with other EU Member States accounts for more than half of Italy!s transac)ons. Other
important trading partners are the United States, Russia, China and members of the Organiza)on of
the Petroleum Expor)ng Countries (OPEC). A‘er the Second World War, membership of the EEC was
the most advantageous economic factor in Italian trade. The subsequent accession of Greece, Spain
and Portugal to the EEC has led to fierce compe))on for Mediterranean agricultural products,
par)cularly fruit, wine and table oil. However, at the beginning of the 21st century, the enlargement
of the EU and the weakness of the new euro currency enabled the growth of exports to Italy. When
the euro reached parity with the U.S. dollar and eventually surpassed it, this advantage was lost and,
in the first decade of the 21st century, Italy maintained a nega)ve trade balance. The EU-Japan trade
agreement will make it easier and cheaper for them to do so.
Italy is a charter member of NATO and the European Economic Community (EEC) and its
subsequent successors the EC and the EU. It has been at the forefront of European economic and
poli)cal unifica)on, joining the Economic and Monetary Union in 1999.
On August 21, 2020, the United States and the European Union announced a trade agreement
regarding reduc’ons on tariffs on certain products of interest to each side. Under the agreement,
the European Union eliminated tariffs on imports of certain live and frozen lobster products on a
Most Favored Na)on (MFN) basis. European Union tariffs will be eliminated for a period of five years
and the European Commission will ini)ate procedures aimed at making the tariff elimina)on
permanent. The United States reduced by 50% its tariff rates on prepared meals, certain crystal
glassware, surface prepara)ons, propellant powders, cigareLe lighters, and lighter parts. United
States tariff reduc)ons are also on an MFN basis.
Italy has been a WTO member since 1 January 1995 and a member of GATT since 30 May 1950 and
also a member State of the European Union as men)oned above. All EU member States are WTO
members, as is the EU (un)l 30 November 2009 known officially in the WTO as the European
Communi)es for legal reasons) in its own right.

2-Economical:
Corrup)on is being tackled in Italy, but economic freedom is one of the worst in Western Europe and
public debt is very elevated. Economic performance is likely to be below peers in the medium term,
as produc)vity issues persist, and unemployment is high. Aging will con)nue to stress public coffers,
but health issues are less pronounced than regional counterparts. Internet use is one of the lowest
regionally and mobile subscrip)ons are growing only slowly, owing to a shrinking populace.
Economic indicators:
1- Italy!s GDP
Italy!s GDP 2021 = 2.1 Trillion compared to Italy's GDP 1.65 trillion euros in 2020
The gross domes)c product (GDP) measures of na)onal income and output for a given country's
economy. The gross domes)c product (GDP) is equal to the total expenditures for all final goods and
services produced within the country in a s)pulated period of )me.

GDP growth (annual) % = 6.6 with a huge increase from 2020 (-9)
Annual percentage growth rate of GDP at market prices based on constant local currency.
Aggregates are based on constant 2015 prices, expressed in U.S. dollars. GDP is the sum of gross
value added by all resident producers in the economy plus any product taxes and minus any
subsidies not included in the value of the products. It is calculated without making deduc)ons for
deprecia)on of fabricated assets or for deple)on and degrada)on of natural resources.

GDP per capita (current $) = 35,551.3

GDP per capita is gross domes)c product divided by midyear popula)on. GDP is the sum of gross
value added by all resident producers in the economy plus any product taxes and minus any
subsidies not included in the value of the products. It is calculated without making deduc)ons for
deprecia)on of fabricated assets or for deple)on and degrada)on of natural resources. Data are in
current U.S. dollars.
2- Unemployment rate (% of total labor force) = 9.8
Unemployment refers to the share of the labor force that is without work but available for and
seeking employment.

3- Infla’on rate (annual %) = 1.9

Infla)on as measured by the consumer price index reflects the annual percentage change in the cost
to the average consumer of acquiring a basket of goods and services that may be fixed or changed at
specified intervals, such as yearly

3- Social

● Income and expenditures

The average annual wage in Italy is 28k and they spend the majority of their monthly income on
different categories but housing, water, electricity, gas, and other fuels are by far the largest
category they spend money on. The category of food and non-alcoholic beverages comes in second
place followed by transporta)on.
 ● Education

Almost 28 percent of the people aged between 25-29 hold a university degree, which is a
low percentage as the Organization for Economic Co-operation and Development (OECD)
average is 48%, while a very small percentage of the elders aged 65 and more hold a
University degree.

● Social Classes

According to sta)s)cs done in Italy 52% of respondents stated to be part of the middle class and the
most popular posi)on in the middle class is freelance professional. The majority of unemployed
people felt to belong to the low class which is 37% of the respondents.

Hofstede
 ● Power Distance (PDI)
With a score of 50, Italy promotes decentraliza)on of power and decision-making as well as
equality. Younger people like teamwork and an open management style, and they generally
reject formal control and supervision. ● Individualism
Italy has a score of 76, making it an individualist culture that is "me" centric, par)cularly in the large,
affluent ci)es in the north where people might feel lonely even in the midst of a large throng.
Personal fulfillment is the path to happiness for Italians, who are highly mo)vated by having their
own unique life goals and aspira)ons.

● Masculinity

At 70, Italy is a masculine culture that values accomplishment above all else. Children learn early
that winning is essen)al in life and that compe))on is healthy. Italians display their success by
purchasing status symbols like a gorgeous automobile, a large house, or a yacht, and vaca)oning in
far-off locales. Since the workplace is where every Italian may find success, there can be intense
compe))on among coworkers to expand their careers.

● Uncertainty Avoidance

Italy scored highly on uncertainty avoidance (75), indica)ng that the people there do not generally
feel at ease in unclear circumstances. The high levels of masculinity and uncertainty avoidance in
Italy make daily living exceedingly demanding and unpleasant. Italians need to have enjoyable and
relaxing moments in their daily lives, such as a leisurely lunch or numerous coffee breaks, to help
them relieve some of the tension that builds up during the day.

● Long-term orientation

Italy's high score of 61 on this factor demonstrates the pragma)c nature of Italian culture. People in
pragma)c civiliza)ons hold that the situa)on, context, and )me all play a significant role in
determining what is true. They demonstrate a capacity to easily adjust tradi)ons to new
circumstances, a high tendency to save and invest, thri‘iness, and persistence in gesng things done.

● Indulgence

A score as low as 30 indicates that the Italian culture is Restraint. Socie)es that score low on this
dimension tend to be cynical and pessimis)c. Also, unlike an Indulgent society, a restrained society
does not value leisure and does control the gra)fica)on of their desires.
4- Technological

1- Italy!s popula’on in 2022

• Italy!s total population was 60.32 million in January 2022.

• 51.3 percent of Italy!s population is female, while 48.7 percent of the
population is male.
• At the start of 2022, 71.7 percent of Italy!s population lived in urban centres,
while
28.3 percent lived in rural areas.
• A look at how the population in Italy breaks down by age group:

3.7 percent of Italy!s popula)on is between the ages of 0 and 4.

7.0 percent of Italy!s popula)on is between the ages of 5 and 12.
4.8 percent of Italy!s popula)on is between the ages of 13 and 17.
6.8 percent of Italy!s popula)on is between the ages of 18 and 24.
10.7 percent of Italy!s popula)on is between the ages of 25 and 34.
12.4 percent of Italy!s popula)on is between the ages of 35 and 44.
15.8 percent of Italy!s popula)on is between the ages of 45 and 54.
14.9 percent of Italy!s popula)on is between the ages of 55 and 64.
23.9 percent of Italy!s popula)on is aged 65 and above.

# The median age of the popula’on in Italy is 48.0

2- Internet use in Italy in 2022

• There were 50.85 million internet users in Italy in January 2022.

• For perspec)ve, these user figures reveal that 9.46 million people in Italy did not use the
internet at the start of 2022, meaning that 15.7 percent of the popula)on remained
offline at the beginning of the year.

3- Mobile connec’ons in Italy in 2022

• 78.22 million cellular mobile connections in Italy at the start of 2022.

 • Note that many people around the world make use of more than one mobile
connection for example, they might have one connection for personal use, and
another one for work – so it!s not unusual for mobile connection
• The number of mobile connections in Italy increased by 634 thousand (+0.8
percent) between 2021 and 2022
4- Device Ownership

- Any kind of Mobile phone 97.3%

- Smart phones 97.3%
- Feature phone ( not smart ) 1.6%
- Laptop or computer 75.4%
- Tablet Device 53%
- Games Console 36.8%
- Smart Watch 28.1%
- TV Streaming Device 19.6%
- Smart Home Device 17.4%
- Virtual Reality Device 2.8%

5- Main Reasons for using the internet

• Finding Information 73.6%

• Following news and current events 67.4%
• Researching how to do things 60.7%
• Finding new ideas and inspiration 57.5%
• Researching places and travel 56.9%
• Staying in touch with Friends and Family 52.7%
• Watch videos , tv shows and movies 50.9%
• Listening to music 49.8%
• Researching Brands 45.1%
• Filling up spare time 44.8%
• Business Research 42.3%
• Education and Study 41.3%
• Researching Health issues and products 33.5%
• Managing finances 33.4%
• Sharing opinions 32.1%

6- Most visited websites

1. google.com
2. facebook.com
3. google.it
4. YouTube.com
5. wikipedia.org
6. amazon.it
7. bit.ly
8. repubblica.it
9. corriere.it
10. instagram.com
11. ebay.it
7-Social media sta’s’cs for Italy in 2022

• There were 43.20 million social media users in Italy in January 2022.
• Analysis reveals that social media users in Italy increased by 2.2 million (+5.4
percent) between 2021 and 2022.
• Social media users vs total Population 71.6%
• Social media users vs total internet users 84.9%
• Female social media users vs Total social media users 49.2%
• Male social media users vs Total social media users 50.8% 8- Demographic Profile

of Meta!s AD audience

9- Main reasons for using social media

- Reading news stories 48%

- Keeping in touch with Friends and Family 46.8%
- Filling spare )mes 46.1%
- Finding content 29.8%
- Looking for things to do or Buy 28.3%
- Finding products to purchase 20.8%
- Finding like minded people 20%
- Seeing what is being talked About 19.9%
- Sharing opinions 19.9%
- Pos)ng About your Life 18.8%
- Celebri)es and influencers 16.5%
- Finding content from Brands 16
10- Top used and favorite social media plaaorms
- WhatsApp 90.8%
- Facebook 78.6%
- Instagram 71.4%
- Tiktok 28.9%

11- Types of social media accounts followed

- Friends, Family and other people 50.7%
- Bands and musicians 33.2%
- Actors and performers 31.6%
- Channels or tv shows 26.2%
- Restaurants, chefs and foodies 25.4%
- Brands you Buy from 23.3%
- Influencers and experts 22.3%
- Brands you are researching 20.2%

12- Facebook users in Italy in 2022

- Data published in Meta!s adver)sing resources indicates that Facebook had 28.55 million users in
Italy in early 2022.
- Facebook reach vs total popula)on 47.3%

- At the start of 2022, 50.1 percent of Facebook!s ad audience in Italy was female, while
49.9 percent was male.
- Devices used to Access Facebook
• Use any kind of mobile phone 98.3%
• Only use laptop or computer 1.7%
• Use both mobile and computers 23.7%

13-Instagram users in Italy in 2022

- Numbers published in Meta!s adver)sing tools indicate that Instagram had 27.50 million users in
Italy in early 2022.
- Instagram reach vs total popula)on 45.6%

- In early 2022, 50.6 percent of Instagram!s ad audience in Italy was female, while
49.4 percent was male.

12- TikTok users in Italy in 2022

- Figures published in ByteDance!s adver)sing resources indicate that TikTok had 13.30 million users
aged 18 and above in Italy in early 2022.
- Tiktok reach vs total popula)on 22%
- In early 2022, 55.4 percent of TikTok!s ad audience in Italy was female, while 44.6
percent was male.
13- YouTube users in Italy in 2022

- Updates to Google!s adver)sing resources indicate that YouTube had 43.20 million users in
Italy in early 2022.
- At that )me, 50.8 percent of YouTube!s ad audience in Italy was female, while
49.2 percent was male.

14- Watching online video content

- Any kind of video 88.7%

- Music video 46.5%
- Comedy, meme videos 34.3%
- Tutorial or how-to video 37.4%
- Video livestream 25%
- Educa)onal video 17.1%
- Product review video 26.5%
- Sports video 22.1%
- Gaming video 14.9%
- Influencer videos and vlogs 15.9%

15- Use of online Financial services

- Use a banking, Investment or Insurance website Each month 33.8%

- Use a mobile payment service Each month 13.4%
- Own any form of cryptocurrency 6.3%

16- Online privacy and security

- Express concern About what is Real vs what is fake on the internet 59.2%
- Worry About how companies might use their online Data 34.7%
- Decline cookies on websites at least some of the )me 40.7%
- Use a tool to Block adver)sements on the internet at least some of the )me 31.8%
- Use a virtual private network ( VPN) to Access the internet at least some of the )me 20.2% 17-
Mobile connec’vity

- Number of Cellular mobile connec)ons 78.22 million

- Number of Cellular mobile connec)ons compared with total popula)on 129.7% Ecommerce
18- Financial inclusion factors

- Account with a Financial ins)tu)on

93.8% Female 91.6% Male 96.1%

- Credit card ownership 42.5% Female

34% Male 51.7%
- Debit card ownership 84.6% Female
78.2% Male 91.5%

- Made a purchase on the internet in

the past year 54.9% Female 50.8% Male
59.5%

19- Weekly online shopping ac’vi’es

- purchase a product or service online 47.6%

20- Online purchase drivers

- Free delivery 62.7%

- Coupons and discounts 47.4%
- Customer reviews 38.1%
- Simple online checkout 34%
- Easy returns 32.9%
- Next day delivery 28.1%
- Loyalty Points 25.9%
- Eco - friendly creden)als 19.7%
- Likes and comments on social media 13.1%
- Compe))ons 11.8%
- Interest free instalments 11.5%
- Exclusive content 9.9%
- Live - chat box 8.5%
- Click and collect 6.7%

21- Overview of consumer goods e-commerce

Number of people purchasing consumer goods via the internet 35.62$ million. 22- Consumer goods
categories

- Electronics $11.73 billion

- Fashion $15.78 billion
- Furniture $ 3.39 billion
- Toys , hobby , diy $3.18 billion
- Personal and House care $5.98 billion
- Food $3.05 billion
- Beverages $1.02 billion
- Physical media $1.81 billion

23- Top Google shopping queries

01- Amazon
02- Scarpe 03- Nike
04- Jordan
05- Samsung
06- Ikea
07- Gucci
08- Ebay
09- Jordan1
10- PS4

Digital Marke’ng 24- Sources of Brand Discovery

- Search Engines 46.6%

- TV Ads 35.6%
- Online retail sites 31.6%
- Word of mouth 30.7%
- Product comparison sites 25.7%
- Brand websites 24.2%
- Consumer review sites 24.2%
- Product samples 23.4%
- Social media Ads 22.2%
- Instore displays and promo)ons 19.8%
- Ads on websites 19.7%
- Tv shows and films 16.4%
- Company emails or leLers 15.7%
- Brochures and catalogs 15.2%
- Print Ads 14.2%
5- Environmental
● Because Italy is a member of the European Union, its environmental policies
largely fall under EU environmental legislation.
● Italy's shops and stores are not allowed to provide customers with plastic
polyethylene (PE) bags. Plastic bags in Italy must be biodegradable and paid for
by customers. A few additional cents were added to the bill of each grocery
shopping.
● Italy is used to pushing initiatives to decrease black carbon emissions in the
transportation sector in order to combat air pollution and climate change. Italy has
continually reduced emissions by co-funding a number of projects through the
Sustainable Mobility Fund.
● Italy was one of the 190 countries that participated in the 2022 United Nations
Climate Change Conference (COP27), which took place in Egypt in November
2022 and emphasized the urgent need for Parties to reduce global greenhouse
gas emissions immediately and sustainably across all applicable sectors to limit
global warming. The implementation plan of COP27 requires about US$4 trillion
each year to be invested in renewable energy up until 2030 in order to reach net
zero emissions by 2050.
6- Legal
Employment law:
1-Average salaries
Italian law does not expressly provide a minimum wage.
In 2022, the average salary in Italy is 28,500 EUR, which is approximately 1,624 EUR net per
month.
2-Working hours
Statutory normal weekly working )me is 40 hours (any hours worked beyond this limit count as
over)me) and employees must not work more than a total of 48 hours per week.
3- By law, the employer must provide the following informa)on in wri)ng to the employee:
● the parties' identification data
● the place of work
● the employment start date
● provisions relating to any probation period
● the duration of the employment relationship
● the employee's classification, level, qualifications and job duties.
● the duration of any probation period
● the number of holidays;
● the employee's working hours
● the notice period in the event of termination.
The main Italian labor laws are:
● Law 604/1966, which regulates individual dismissals; the Workers' Statute (Law
300/1970), which sets out rules to protect the freedom and dignity of employees, and
trade union ac)vity in the workplace and rules on employment;
● Law 223/1991, which regulates collective redundancies;
● Legislative Decree 66/2003 on working time;
● Legislative Decree 81/2008 on health and safety in the workplace;
● Legislative Decree 23/2015, which introduced new protections against unlawful
dismissals, applicable only to workers who are hired on an indefinite-term basis.
● Legislative Decree 81/2015, providing comprehensive regulation of employment
contracts, as well as a revision of the regulations on job duties.

Contract law:
The essen’al elements
Under Italian Law there are four essen)al elements a contract must have for it to be valid and
enforceable). These are:
Agreement of all involved par1es
Purpose
Scope
Form (if required by law)
If any of these elements is missing (e.g. the contract is verbal, whereas the law required it to be
wriLen), the contract is void or null.
1. The agreement:
For the contract to be enforceable, it is necessary that a consensus is reached between the par)es
on its content. Related to this are the concepts of offer and acceptance. Once the offer has been
made by one of the par)es and accepted by the other, the contract becomes enforceable.
2. The purpose
It is an essen)al element of the contract the absence of which can render it void. The Italian Civil
Code does not provide a defini)on of the term, but this is related to the legi)macy of the contract
with regard to its socio-economic func)on the par)es are aiming at with the contract.
3. The Scope
There is no exact defini)on for the scope but in the Code is specified that scope must be possible,
lawful, iden)fied or iden)fiable. All provisions must be present for the contract to be enforceable.
4. The form
With regard to the form, the Italian Civil Code affirms the principle of freedom of forms. A
contract can be valid both in a wriLen or verbal form, if there is not a legal requirement for the
par)es to convene their agreement in a specific form. Indeed, the law regulates when a certain
form is necessary for the contract to be valid.
Consumer protec’on law;
In Italy, the Ministry responsible for consumer policy is the Ministry of Economic Development,
whose main task is to assure consumer protec)on in the fields of compe))on and market.

The Italian consumer protec)on legisla)on, of European deriva)on, has been collected into a
consolidated Act called "Consumer Code” a fundamental reference Law covering the protec)on of
consumer and user rights.
The Consumer Code is, therefore, the single Act which covers and consolidates all the different
stages in the consumer dealings, from adver)sing to correct informa)on, from consumer
contracts in general to product safety, access to jus)ce, and consumer organiza)ons. ●
Consumer rights
1. The individual and collec)ve rights and interests of consumers and users are recognized and
guaranteed, and their protec)on is promoted at the na)onal and local level, through the regula)on
of rela)ons between consumer and user associa)ons and public administra)ons.
2. Consumers and users have recognized as fundamental the rights:
a) to health protec)on
b) the safety and quality of products and services
c) adequate informa)on and correct adver)sing and the exercise of commercial prac)ces according to
principles of good faith, fairness and loyalty d) consumer educa)on
e) correctness, transparency and fairness in contractual rela)onships
f) the promo)on and development of free, voluntary and democra)c associa)ons between
consumers and users
g) the provision of public services according to quality and efficiency standards. ● Minimum content
of informa’on
The products or the packaging of products intended for the consumer, marketed on the na)onal
territory, must be clearly visible and legible, at least the indica)ons rela)ng to: a) the legal or
commodity denomina)on of the product;
b) the name or business name or trademark and registered office of the manufacturer or of an
importer established in the European Union
c) to the country of origin if located outside the European Union
d) the possible presence of materials or substances that can cause damage to people, things or the
environment
e) the materials used and the processing methods where these are decisive for the quality or the
commodity characteris)cs of the product
f) the instruc)ons, any precau)ons and the intended use, where useful for the purposes of use and
safety of the product
● Indica’ons in Italian
All informa)on intended for consumers and users must be provided at least in Italian.
2. If the indica)ons referred to in this )tle are affixed in several languages, the same are also
affixed in Italian and with visibility and legibility characters no less than those used for the other
languages.
3. Indica)ons that use non-Italian expressions that have become commonly used are permiLed.
● Indica’on of prices per unit of measure
1. The price per unit of measure need not be indicated when it is identical to the
sale price.
2. For products sold in bulk, only the price per unit of measurement is indicated.
3. Advertising in all its forms and catalogs bear an indication of the price per unit
of measurement when the selling price is indicated.
4. This section does not apply;
a) to products supplied on the occasion of a provision of services, including
the administration of food and drinks. b) products offered in auctions.
c) works of art and antiques.

Environmental law:
The Environmental Code in Italy covers the main regula)ons for environmental protec’on in
the country and is in line with the European laws and principles regarding pollu)on or
sustainable development. The main agencies in charge with environmental control are the
Ministry of Economic Development, the Ministry of Environment.

1-Water pollu)on: Italy imposes strict regula)ons for the disposal of waste water. Companies in
Italy that do not comply with the regulatory regime for water pollu)on can face criminal and
administra)ve sanc)ons. Those who discharge certain dangerous substances face imprisonment
from two months to two years.

2-Air pollu)on: Permits and licenses are also needed in Italy for opera)ons that qualify as air
polluters. Air emission authoriza)ons and Sole Environmental Licenses are necessary for certain
businesses and they must be renewed accordingly.

3-Waste disposal: Special waste must be delivered accordingly to a third party that handles waste
management. The transport, recovery, disposal or inter-media)on of waste is to be performed
only with the required permits and authoriza)ons.
Porter!s 5 forces
Power of customers:
● Knowledgeable customers have high power over sellers and Italians tend to
research brands over the internet to be able to compare prices, materials, and
quality of different products to make a rational buying decision based on the
information they found. According to the PESTEL analysis we conducted earlier,
73.6% of Italians use Google to find information, and 45.1% search for information
about brands, and those figures indicate that customers in Italy have power over
the sellers.
Threat of subs’tutes:
● Ellie!s products vary between plates, mugs, and decorative pieces hence there
are several substitutes for their products. Ellie Home!s products can be
substituted by paper, glass, metal, plastic, or brass products that are available in
the Italian market with competitive prices and designs. Hence there is a high risk
of substitutes and it should be carefully addressed to reduce the effect of this risk.

Power of Suppliers:
● Suppliers in Italy have no power over Ellie because all their suppliers are based in
Egypt.

Threat of new entrants

• The risk that a new competitor creates for existing businesses in a given industry
is known as the threat of new entrants.

• This happens when a new company begins offering goods that Ellie Home is
already selling. Companies' profits can shift considerably when new players enter
the market.

• However, new entrants tend to be hesitant about starting a business if there are
entry barriers such as difficulty gaining access to suppliers and distribution
channels, obstacles to exit (high exit costs), brand loyalty, and high switching
costs.

• Due to the presence of major market players, the ceramic tableware market has
moderate to high entry barriers thus low to moderate threat of new entrants.
Leading competitors are implementing tactics including design innovation,
mergers and acquisitions.

• By interacting with its consumers and making the switch less desirable, Ellie
Home can prevent new competitors from entering the market. Offering special
benefits or promotions, establishing a strong market visibility and establishing
strong brand loyalty are some strategies to reduce the threat of new entrants.
• Also, Ellie Home can lower the threat of new entrants by focusing on establishing
huge marketing campaigns.
Rivalry
• This force assesses how fiercely the market is competitive.
• All the firms involved often benefit from some healthy competition since it
promotes new product and service development and prevents unnecessarily high
customer pricing increases. However, excessive rivalry in the marketplace can be
problematic for some businesses.
• Current competition to Ellie home in Italy is fierce including companies like
Tognana brand, L!arbitare, Biordi Art Imports, Deruta of Italy and Arte Italica that
sell ceramic dinnerware therefore Ellie home is using red ocean strategy.

1. Tognana brand: The quality, tradition and creativity typical of italian design are
constant features of Tognana!s collections.
 2. L!abitare: one of the market leaders in ceramic manufacturing in Italy.
3. Biordi Art Imports produce and sell ceramic mugs and dinnerware that are
handmade and painted by Italian artisans. Each piece is of very high quality, Biordi
ships their products all over the world and purchases ecofriendly packaging
material.
4. Deruta of Italy feature genuine Italian hand painted ceramic dinnerware
masterfully hand decorated by old school artists from Deruta. Deruta of Italy do
not use any glaze or color pigment with lead content in their dinnerware and
tabletop products.

5. Arte Italica has been a leader in Italian tabletop for years for their ceramic Tuscan
collection and iconic pewter.
Quan’ta’ve analysis

Alessi workshop Tognana

Price per piece 22$ 42$

Sales per year 2021 85,000$ 170,000$
Sales per year 2020 80,000$ 155,000$
PPG (value) 6.25% 9.68%
PPG = sales of current year – previous/previous

Objec’ves
• To Sell 30 thousand $ of Golden Breeze set by end of year 2023
• To Sell 4000 pieces of Golden Breeze set by end of year 2023
• Establish a partnership with 5 Italian food bloggers by the end of the year 2023
and develop discount codes for their followers.
• Establish an agreement with 5 reputable stores in different areas in Italy (CASA
Meraville, Gotti Store, CASA Arese, Punto Casa di Bicelli Fabio and Cose Di
Casa) to display Ellie!s products at their branches by the end of 2023.
• To collaborate with Italian artists and create a new set inspired by Itali!s art and
culture by the end of 2023.

Strategies
Generic Strategy 1-Differen’a’on strategy
Differentiation strategy involves the development of unique products that differ significantly
from those of competitors. We can use a unique value point (UVP) of our special handmade
designs and colorful products which attracts & improve our customers!$needs in Italy as Italian
customers recently showed interest in trying new handmade products.
Ellie Home offers more customiza)on and we can bespoke our products as the customer wishes, we
can customize color, size & designs to suite the client!s unique taste cause the customer sa)sfac)on is
our number 1 priority.

Benefits of Differentiation Strategy

1. Customer loyalty grows. Targeting a differentiated Egyptian handmade product to
the correct market segment in Italy of customers interested in artistic products can
 successfully build brand loyalty. When customers find a product that fits their
needs, they are more likely to make repeat purchases.
2. Customer satisfaction can improve.
3. Distinction attracts the right audience. Our unique handcrafted product meets
specific customer needs. As our product is sustainable, ecofriendly and resistant.
4. Specificity builds up brand image. Through online promotion & creating customized
special pieces to meet the Italian market quality and image.
2- Red Ocean Strategy
Current competition in the ceramic dinnerware market in Italy is fierce, hence we will follow the
red ocean strategy and try to outperform our current competitors by providing differentiated
products.

Growth strategies Market development strategy

Market development strategy is a business growth strategy that focuses on introducing exis)ng
products to new markets. We -Ellie home- will use market development strategy to develop new
opportuni)es to sell our product in unexplored market of Italy.
It is important to have a market development strategy because it can help you reach a wider
audience of potential customers and grow your business to reach our goal as a local brand that
competes in the international market.
Creating a professional market development strategy can also help you:
• Improve the quality of our product
• Acquire new customers
• Upsell current customers
• Develop new products or services
• Increase revenue margins
• Build organizational resilience
• Support long-term company growth
• Increase brand awareness

Swot strategies

# Weaknesses to strengths;
1. Scarcity of craftsmen with unique talents; include the craftsmen with special
talents in our training and development program and give them the opportunity
to share their talents and teach it to beginners.
2. Limited physical locations; work on increasing our branches by making mini
shops in different places to increase our availability.
3. Lack of diversity; focus on adding new varieties of our product and start on
training the craftsmen on it.
4. Small workshop, work on expanding our workshop and buy more machines
and materials to expand our production.

# Matching Strengths to opportunities;

1-egyp)an handcra‘ed; majority of Italian popula)on are interested in handmade products
2- Egyp)an handmade products and a new product in Italy!s market, consumers in Italy recently
interested in trying new products
3-our products are recyclable, thus environmentally friendly and will meet Italy!s environmental
code.
# Threats to opportunity
-Inability to meet supply vs demand: A‘er studying well the market dynamics (supply vs demand)
and conduc)ng our analysis we commit on supplying and shipping quan))es greater than usual
demand.
# Threats to strengths
-Tognana brand & L!abitare are with no words market leaders and offers same products as we do
but we have an edge that we offer more customiza)on we can bespoke our products as you wish,
we can customize color, size & designs to suite your unique taste cause the customer sa)sfac)on
is our number 1 priority. We strive to create products with designs that leave an impact on its
owner.
-Alessi workshop brand; The metal of brass reacts easily with salt and acidic foods when it is
heated, in addi)on mining the elements (copper, zinc, )n ) that make brass contributes to global
climate change by adding atmospheric carbon so it has a nega)ve on the environment .Our products
is manufactured using ceramic which is food safe and eco-friendly.

PRICING

We will follow cost plus strategy as on average the cost of our items is around 10$ to
20$ equivalent to 250 EGP to 500 EGP.

And we will sell it on average at 20$ to 40$ which is equivalent to 500 EGP to 1000 EGP.
As we will follow FOB ( free on board ) pricing regarding to the INCO-terms pricing , so
on average the cost till the El-Dekhila Port including shipping and Port warehouse will be
around 21$ to 41$ equivalent to 525 EGP to 1025 EGP.

Our Agent Will sells our products around 35$ to 60$ in Italy as final Price. As our
competitors prices around 30$ to 75$ .

Total cost and shipping Range is between 10 $ + 1$ = 11 $ to 20 $ + 1$ =21 $.

Total Revenue is will be from 0 to 41 $.
Break-even point:

-Total costs of 1 unit including FOB costs of shipping is within 11$-21$

(10$+1-20$-1) without the profit margin

- We have men)oned in our objec)ves that our target is to sell 4000 units of golden breeze by the end
of 2023

-Assuming that the total costs of 1 unit will increase each month )ll the end of 2023 as the product
will pass through its life cycle
-So, the total revenue of 1 unit will be equal (aler adding 50% profit margin) is from 21$-41$ -
Our break-even Point will be a`er the first quarter before the beginning of April .

Investment techniques:

Agent: we chose “ Kasanova shop” to be our agent where we will sell our products at
their shop. we chose kasanova as it is considered both at a national and international
level, the largest chain of stores of household products with more than 180 stores in
almost all the Italian regions. So in return we will be able to get known and spread there
easily.

Integration strategy:

Our entry strategy will be Vertical integration, as we will be selling our products using
another shop so we will work together in an integrated manner.
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