Presented by:

Ahmed El Komy
Mohamed Rizk
Moustafa ElFoly
Nada ElBardesy
 Table of Content
 Company Portfolio
 Company Main Products
 Company Products Segmentation
 Our Product
 The market volume and Market Share
 —Market Type.
 Competition
 Factors Affecting Supply
 Factors Affecting Demand
 Demand
 Elasticity
 Product Profitability
 —Conclusions
 The Milk Industry
Business to Consumer (B2C) share in sales 73%
 The Milk Industry
Business to Business (B2B) share in sales 10%

Mac, burger king, Starbucks

 The Milk Industry
Export Market share in sales 17%

• which 85% is from milk. Libya and the Middle East are the largest export markets.

• Juhayna estimates its market share in the Libyan packaged milk market was
approximately 20% in 2009.
 Market Volume
• The milk market is divided into two segments packaged milk which accounts only
for 15% of the total milk consumption and loose milk.

• The total packaged milk market has reached about 3.5 Billion EGP by the end of
2011.

• Packaged milk is expected to grow in the next period due to:

1. Educational campaigns.
2. low income segments.
 Market Share
• The milk market in Egypt is highly concentrated, with four players holding a
combined 94% market.

Plain Milk
Others 6%
Enjoy 7%

Beyti 9%

Faragello Juhayna
9% 69%

The largest player, Juhayna, had a dominant 69% market share in the plain milk segment
and 74% in the flavored milk segment last year.
• Juhayna is leveraging several of its competitive
advantages to support its market position as illustrated
below:
1. Its brand, which is one of the most widely recognized in
Egypt, as per a study by ACNielsen in 2009,
2. Its strong track record and knowledge of the Egyptian
market,
3. Its unmatched distribution network that is costly to
replicate, and
4. Its focus on several product categories, allowing it to
benefit from production and distribution synergies.
• Juhayna’s strategy to maintain a high growth
rate
1. Improving its cost structure by a further vertical integration
upstream (dairy and agricultural farms) and downstream
(distribution), as well as a further diversification of its supplier base.
2. The company is also considering tapping into other food categories
in Egypt to leverage its distribution network.
3. Expanding its product portfolio in its existing dairy and juice
categories. Juhayna plans to compete at all levels in its existing
product categories to meet increased competition and defend its
market share. This includes expanding its product range (for example
by adding new flavors for milk and yogurt, or different types of
packaging for juice) to cater to changing consumer preferences, as
well as broadening its coverage across all income brackets (for
example, by adding a new low-tier milk brand "Halibo").
4. Longer term, possibly expanding regionally by replicating its business
model in other MENA countries such as Dubai.
 Market Type
• The Market is Oligopoly.
• Imperfect competition refers to those market structures that fall between
perfect competition and pure monopoly where quantity supplied and prices
exists within those two market types’ values.
• For Low-end range packages milk the market tend to be almost Monopoly as
there is no existent competitor to Juhayna till now. They also launched a
low-tier packaged milk called “Halibo” to benefit from the expected
acceleration of consumer conversion to packaged milk. Those low-end
brands helped Juhayna to retain its leadership market position even with the
entrance of well reputed international players.
• We can expect that there is a kind of cooperation between the producers of
packaged milk by decreasing their supply to push the prices a little bit above
the marginal cost, as most of their prices for similar units are very near to
each other.