Tosaf Meeting in Cairo

By, Talaat A.Kader

Agenda
 To determine the required Market share of
Tosaf in Egypt

 Market Surveys of additives and colorants

and the Market size and market growth rate
in Egypt.

 The underlying causes of Tosaf absence

from the Egyptian Market.

How to penetrate the market and maximize

the market share and revenues
 Assessment
• Demand for polymer and plastics applications
continues to grow at a higher rate and looks set
to increase in the medium-to-long term.
• The market is driven by the tremendous growth
in packaging, building & construction, consumer
goods, and automotive industry.
• The agent of Tosaf in Egypt Has shown
success in penetrating the market in polymer, so
it is easy to cover additives market since they
are interlinked.
Tosaf Market Share
 The market survey showed that Tosaf
Market share is nearly Zero in all
segments except for sporadic
distribution for blown and injection
molding companies that uses some
white colorants.
 Tosaf is completely absent from the
densely manufacturing segments in
packaging and compounding. Which
can use huge quantities.
Causes of Tosaf Zero Market Share

 Tosaf, like other additives companies, are

providing a technical solution and business
products to solve customer problems and
increase his ROI.
 As seen from the market , Tosaf is marketing
and selling business solution in a very B2C
mentality.
 There is no professional network that
connects the company with target markets and
gain visibility and credibility.
 Strategies to Market Penetration

International company like Tosaf can penetrate the Market

easily by adopting the following Tactics:

1. Client relationship: to maximize the market share, Tosaf

Egypt needs to build deep relationship with a relatively
small number of Big companies. This is very critical to
landing long –term agreement – this strategy was Lufkin
strategy where it started with 2 long term agreements with
big oil companies and grew to comprise more than 30
customers covering all the country. In Business marketing,
the company needs to focus on the maximum few
 Cont.

In selling Business solution like additives, needs expert

knowledge of product and working as consulting firms.

In Business solution marketing, Tosaf in Egypt seeks more

proximity with customers through full product
understanding. The more proximity you have, the more
likely you are to succeed.

Market analysis Has clearly shown that successful

companies, were reliant on only 3 or 4 customers for more
than half their sales, representing quite a high level of
reliance on a relatively small number of customers.

Tosaf, through its agent can provide technical support and

technical consultancy. If so, it will have market dominance.
 Cont.

2. Acting as consultation Organization: starting off to act

as consultation firm can be a great way to reduce the risks
of staring up with Tosaf products. Connection by
consultation is the best way to get through the door.

3. Understanding the whole products: to be considered a

valid vendor, the company should participate as partner in
pain solution

4. Presales, post sales, and technical support

5. Centralized customer services
 Tosaf Target Market Share
Competition for Tosaf
Sources of competitiveness: There is no competent local
competitor in additives industry and there are local primitive
uncompetitive suppliers of colorants MB.
The major competitors of Tosaf are Shulman, Ampacet,
Constab, Dow, Basell, Clariant, ……..etc.

Since there are warehouses that retain spot stock for

customers, so Tosaf as international company has the same
share with above companies.
So, the Target Market Share should be 40% of Egyptian
Market
 Strategies to achieve the target
Market share

As have stated in the market plan sent before and

from previously mentioned analysis, it can be seen that
to achieve any market share, the company needs to
change the strategy. Without changing the strategies
and tactics in a changing work environment. Tosaf, in
spite of its size and weight will disappear.

So, there should be strategic decision to be taken to

. maximize market share and profitability in unsaturated
and responsive market.
Strategic planning to
maximize revenue

Strategic planning in the very best companies starts

with the setting of corporate objectives. Corporate
objectives usually contain at least the following
elements:
● The desired level of profitability
● Business boundaries
– What kind of products will be sold to what kinds of
markets (marketing)
– The size and character of the labor force (personnel)
– Funding (finance)
 Strategies

To achieve the target market share, the company can

adopt one of 3 following strategies
1. Establish Tosaf sales and service office in
Egypt to be Tosaf,Egypt.
2. Working through approved agent
3. Business partnership
 Tosaf Sales and service office
The office should be established and reporting directly
to Tosaf Regional geo-market. It should carry Tosaf
brand name and the trade mark

The office is managed by a management team reporting directly to

Tosaf and the market is segmented geographically or by end user
market or by main process :
1. Packaging segment Thermoforming
2. Construction extrusion
3. Household injection moulding
4. Automotive blown film
5. Contusions compounding
Approved agent

Work methods should achieve maximum

results and approved by Tosaf.

Consider the following factors:

1. The experience and knowledge of the
market
2. Reputation
3. Customer focus
4. Business capacity
5. Warehouse and sales team
Business partner

Business partner have the two specifications

of Tosaf office and agent.

1. He reports to Tosaf ge-omarket

2. He uses his own premises.
3. Making the segmentation and appoints the sales
team
4. Use Tosaf brand name in the marketing and
promotion.
5. He is responsible to achieve the target market
share and the target revenue.
Business partner

Business partner have the following benefits

1. As business partner I can collaborate on

forecasting, issue orders jointly with the factory
and mutually support order generation.
2. Benefits of the collaboration include greater
visibility, reduction of out- of –stock and
overstock problems.
3. Alignment of production capacity with customer
demand
Conclusion

The target market for Tosaf in Egypt is :

60% of additives
40% of colorants
tasks.”

Strategies to achieve that:

 Tosaf sales and central customer service center

 Approved agent
 Business partner

From my business and market plan I have sent

previously, I can participate in all the above mentioned
solution and that was the main objective of the meeting
and this study