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Research Brief

Background / Problem Definition


Packaged rice market in Egypt can broadly be classified as local vs. imported. Local brands
account for nearly 55% of market and face a stiff challenge from brands of imported rice
(BASMATI) which although priced significantly higher delivers a much better sensorial and
taste experience.
Ramses- a local brand- is the biggest player in packaged rice market with 40% market
share.
Within imported segment, Indira is the biggest brand with a share of nearly 22.5 %.
All the imported brands are available in three grades / variants differentiated mainly by the
fineness of grain and therefore respective pricing.
ISB (Indira Special Basmati)is the biggest selling and fastest growing variant of Indira .
Other variants in Indira portfolio are - Indira Regular & Indira Premium.
Appended table depicts the latest retail audit figures on market share and pricing of key
brands in market The packaged goods taxation in Egypt is multi-tier - dependent upon ex-factory price for
locally manufactured products and upon landed cost for imported goods.
The government most probable agenda in 2010 is to introduce the mixed tax system and
VAT which is assumed to impact ISB consumer price pushing it up for all imported brands as
well as for all local brands
So, Indira is planning to launch Indira Gold as a vertical down-ward line extension in Feb 10.
The new line is expected to catch the potential down-traders due to price increase and also
fuel up-trading from local segment and thus maintain the growth momentum of Indira in
different scenarios Scenario 1 :- prices for all brands go-up by 7%
Scenario 2 :- prices for all imported brands go-up by 8% and for local brands by 5%
Scenario 3 :- prices for all local brands remain same and prices for imported brands
increase by 5%
Research is needed to
- Seek consumers reactions to concept of Indira Gold
- Identify directions for concept & product improvement
- select a price-point for launch of Indira Gold so as maximize gains for brand and minimize
the extent of cannibalization
- estimate likely share for Brand Indira in above-mentioned 3 scenarios with or without Indira
Gold
Additionally, research should be able to provide directions on
scenarios if needed.

a few additional pricing

Action Standards
Launch Indira Gold if:
If any of the above excise scenario is effective
Total market share of Indira family increases or remain unchanged
Indira Gold concept has no gross negatives
Appendix 1
Total Imported packaged rice
TOTAL Indira
TOTAL Indira Premium Basmati
1KG
2 KG
5 KG
10 KG
20 KG
TOTAL Indira Special Basmati
1KG
2 KG
5 KG
10 KG
20 KG
TOTAL Indira Regular Basmati
1KG
2 KG
5 KG
10 KG
20 KG
TOTAL Sindh Basmati
TOTAL Sindh RUBY
1KG
2 KG
5 KG
10 KG
20 KG
TOTAL Sindh Gold
1KG
2 KG
5 KG
10 KG
20 KG
TOTAL Sindh Silver
1KG
2 KG
5 KG
10 KG
20 KG
TOTAL JASMINE
TOTAL JASMINE 555
1KG
2 KG
5 KG

MS- %
44.6%
22.5%
3.0%
0.3%
0.8%
1.1%
0.6%
0.2%
16.6%
2.5%
3.7%
7.3%
1.9%
1.2%
2.9%
1.1%
1.2%
0.6%
0.0%
0.0%
12.1%
7.9%
1.7%
2.8%
3.4%
NA
NA
3.9%
1.2%
0.9%
1.3%
0.5%
NA
0.3%
0.1%
0.2%
0.0%
0.0%
0.0%
10.1%
0.2%
0.1%
0.1%
0.0%
MS- %

Price LE

35
65
150
290
550
24
45
110
215
400
15
28
66
125
240
35
65
150
NA
NA
24
45
110
215
NA
15
28
66
125
240
35
65
150
Price LE

10 KG
20 KG
TOTAL JASMINE 55
1KG
2 KG
5 KG
10 KG
20 KG
TOTAL JASMINE 5
1KG
2 KG
5 KG
10 KG
20 KG
TOTAL local packaged rice
TOTAL RAMSES
1KG
2 KG
5 KG
10 KG
20 KG
TOTAL DELTA
1KG
2 KG
5 KG
10 KG
20 KG
TOTAL KARNARK
1KG
2 KG
5 KG
10 KG
20 KG

0.0%
0.0%
0.6%
0.3%
0.2%
0.1%
0.0%
0.0%
9.3%
1.5%
1.8%
3.9%
2.1%
NA
55%
40%
4%
7%
9%
13%
8%
12%
2%
1%
6%
3%
NA
3%
NA
NA
1%
1%
1%

290
550
24
45
110
215
400
10
18
40
125
NA
7
12
30
57
108
7
12
30
57
NA
7
12
30
57
108