Marketing Plan

Presented By : (Group 2M)

Omar Abd-Elkhader
Mohamed Fathy Aly
Khaled Mohamed Khalaf
Sayed Abd El Aziz El Sayed Elsafty

Value Chain Management

Agenda

1. About the company

13. Opportunities and threats
2. Vision and Mission
14. Business Portfolio Analysis (BCG
3. Objectives
Matrix)
4. Gila Products
15. Product market analysis
5. LED Lighting
16. Marketing Mix: Product
6. Needs and Wants
17. Marketing Mix: Price
7. Features and benefits for
products 18. Marketing Mix: Promotion

8. Market Segmentation 19. Implementation Resources

9. Market Targeting
10. Positioning and Perceptual Map
11. Environmental Analysis
(PESTL)
12. 5 Forces Analysis
Required
20. Implementation Schedule: Gantt
Chart
21. Implementation Estimated Budget
22. Implementation Estimated Budget
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About the company

• Gila was founded at 1892

• Acquired by Al-Tawakol at 1975
• Agency of Merlin Gerin and
Telemecanuque 1975
• Share holder in EMG Egypt 1986
• Gila signed its first UPS service
contract 1988
• Agent of Schneider- Electric 1993
• Built the first power panels factory in
Gesr ElSuez Cairo 1998
• Gila was certified an official Prisma
partner of Schneider Electric 2004
• Gila took the decision to be a data
center solution provider 2013
• Gila acquire the agency of Opple LED
lighting 2014

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Vision and Mission

 Vision Statement
Gila Electric vision 2020 ….. A largest manufacturer of lighting
products in Egypt using world-class technology, customer
service, inventions and Pioneer in the green-technology
initiative.

 Mission Statement
Improving people’s lives through meaningful innovation by
tracking global trends and understanding the challenges facing
people in their daily lives.

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Objectives

 Profit: high ROI and profit

 Sales: EGP 50 million in sales
 Market Shares: increase the LED light bulb
 Quality
 Customer Satisfaction
 Employee Welfare
 Social Responsibility: promote energy
 Efficiency

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Gila Products

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Selected Product: LED Lighting

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Needs and Wants

 Needs
– To maintain comfortable and
colorful themes that attract
consumers .

 Wants
– Wide Varity LED Lighting.
– Reduce Power Consumption.
– Long Life Time

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Features and benefits for products

9
Market Segmentation

 Indoors
– Homes, shops, offices, schools,
hotels, factories and hospitals

 Outdoors
– Roads (street lighting and car lights)
and public spaces, residential areas
and sports arenas, as well as solar-
powered LED off-grid lighting.

  Other Projects
– Such as horticulture, water
purification, Agriculture projects and
Automotive.

10
 Market Targeting

 The Indoor lighting market is the key targeted segment for our
company in long term.
 LED variants are approximately 3-5 times costlier than convention lighting,
but factors such as aesthetic appeal, design flexibility, and low energy
consumption are to help LED lights gain market share over T5, Fluorescent
or Incandescent lamps.
 Indoor applications in government and commercial spaces will be the first
movers, whilst residential segment is expected to follow with falling prices.

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Positioning and Perceptual Map

 Adds value to customer experience by having modern and “high-tech”

features at their fingertips to customize their room.
 Value Proposition: We provide our products with high quality and lower price.

12
Environmental Analysis (PESTL)

 Political
– Egypt reduction of electronic consumption.
– Governments policy incentives to improve energy efficiency

 Economical
– Expected growth of LED / energy efficient lighting market
– Higher increase in the Electricity bill

 Social
– Light consumption is high in Egypt especially in the Summer

 Technological
– Increase demands of alternative / energy efficient products
such as LED and green house.

 Legal
– Egyptian regulations such as Minimum CRI rating of 80,

13
5 Forces Analysis

 Industry competitors
– Considering the fact that the lighting market has no more than 2 top
competitors (Philips and Osram) whom eating's comprise 65% of the
market, there are few incentives to engage in aggressive pricing.

 Potential entrants
– Barriers:
› Patents and licenses for lighting components.
› Top lighting manufacturers are economies of scale,
› Entrants face high sunk costs considering the investment in R&D, licensing
and other costs hard to recover.

 Buyers
– Buyers have the power to choose between a large variety of lamps and
luminaires produced by competitors, there are no switching costs to
hedge that from happening.

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5 Forces Analysis(2)

 Substitutes
– There are no other substitutes for LED lighting till now except sunlight

 Suppliers
– There are few alternative suppliers like Oppel and OSRAM.
– The cost of switching are high considering the fact there are different
additional costs like transport, fees or custom component lines.
– The quality of the finished product greatly depends on the quality of the
components given by the supplier.

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Opportunities and threats

 Opportunities  Threats

– Growing market for energy – Cheaper competitive products

efficient products

– Macroeconomic changes
– Emergence of new markets,
services and customers
– More competitors enter the
market
– Technological change

– Taxation law (recognized through – Foreign competitors making

energy efficient tax credits) similar products, but utilizing
cheap labor
– Government regulation and
policies

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Business Portfolio Analysis (BCG Matrix)

Low Market Share

High Market Share

Star Question Mark

High Growth Rate

LED Lighting Wireless LED

Cow Dog

High Growth Rate

CFL Incandescent light bulb

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Product market analysis
Market
Current
Market Penetration
• Gila Sells LED bulb
• Are In Decline Phase of PlC
• Energy Saving Lamps
Current
• Sell at lower price and same
amount
• Product can either fade away
or make minor profit
Market Development
• Expand Current Bulbs to
Spas and Clubs
New • Lack of interest and decline
could prevent expansion and
sales
Products
New
Product Development
• Time for wireless Led Light Bulbs
• Current Markets of Families
• and Average Young Consumers
• Risk as I-phone compatibility too
specific and expensive
Diversification
• Sell to brand new market of
hospitality
• Good expansion and large
industry
• Diversify Gila product line
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 Marketing Mix: Product
• Our product can be classified as a shopping
product

• Our Brand is OPPLE which is a worldwide

brand that give us a high quality product with
a competitive price .

• Product life cycle

› Incandescent technology is heading to the
end of the mature phase.

› Fluorescent lighting is in a growth phase

close to the mature phase. Is very profitable
for now.

› LED lighting is just entering the growth

phase, in the latest couple of years it has
grown very much due to the rising sales in
B2B sector.

› OLED lighting is the newest lighting

technology, more efficient than LED, still in
the emergent phase.
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Marketing Mix: Price

 Objectives: Gain market share, social responsibility

 Constraints: Newness of the product, type of competitive
markets, current economic condition
 Demand: Demand curves, price elasticity
 Costs: Associated with production
 Strategies: Skimming pricing
 Break-Even Quantity
Price = 50 EGP/bulb (Based on customary/target pricing) With
100% mark-up
BEQ = FC (P-UVC)
= 36 545 905.82/(50 – 40)
= 3 654 591 units
BES = 3 654 591 units * 50 = 182 729 550 EGP
sales

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Marketing Mix: Place
Selective Distribution Channels

Electric house NTT

Gila Branches in 12 Places

El-Saman El-Saman Diab Co.

Diab Co.

21
Marketing Mix: Promotion

 Advertising
– Brochures, Broadcast ads., Packaging outer, Packaging
insert, and Billboards

 Sales Promotion
– Sampling, Gifts, Trade-in, Rebate, and Coupons

 Personal Selling
Sales presentation, Sales meetings, Incentives

 Public Relation
– Seminars, Events, Charities, Press release and
Co.Magazine

 Direct Marketing
– Catalogs, Telemarketing, E-mail, and Fax.

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Implementation Resources Required

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Implementation Schedule: Gantt Chart

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Implementation Estimated Budget

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Marketing plan control process

To maximize the return on a marketing plan, there need to be

controls in place to monitor the plan’s progress.

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Thank You

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