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EVALUATION
OF LABANITA

JUNE 29

INGENIUM

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INTRODUCTION:
WHO ARE WE?

We are a market research company, our duty is to gather and analyze data about
customers, competitors, distributors and other actors and forces in the market place.
Marketing research may be quantitative, qualitative or a combination of both.
Qualitative involves statistical analysis, for example when a restaurant asks its
customers to rate its service on a scale from 1-10 this may be analyzed statistically.
Qualitative research focuses on descriptive words and usually involves observing
customers and questioning them about their consumption experience.
We chose to evaluate the marketing department of Labanita concerning its channels of
distribution with promotion and pricing and its design of the products and services to
be marketed.

NOTHING WORKS SUPERIOR TO ANYTHING SIMPLE

ENHANCING YOUR ITEM

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EXECUTIVE SUMMARY
Mansour Group produces their own brand but they also have their
own Distribution company. They distribute for Ferrero Rocher,
Bonjorno, Tuna sunshine, and Hair Code.
Mansour Group current productions are Labanita and Hayat. We
evaluated the marketing department of Labanita/Seclam.
Seclam was found in 1949 and they were the first to build a milk
production factory in Egypt. They produced their milk in glass
bottles.
In 1998 Seclam was acquired by Mansour Group and it was the first
company in Egypt to produce their milk in plastic bottles under the
brand name “Labanita”.

PRODUCTS:
 The Fresh Milk full cream
 The Fresh Milk Skimmed
 Long Life Milk full cream
 Long Life Milk skimmed

Labanita milk is available in Tetra Brik packages with each carton

containing 12 packages. Labanita has a shelf life of 6 months and
expiry dates are clearly indicated on all packages.

 Yogurt full cream

 Yogurt with strawberries 
 Triangle processed cheese
The cheese is made from carefully selected high quality ingredients and is based on
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their own blend of cow milk. This creamy creation comes in packs of 8, 16, 48, and
64 pieces and has a shelf life of 12 months

Marketing Department:
Labanita’s marketing department consists of a Marketing Manager
along with the senior brand manager. Next, we have two brand
managers and below every brand manager is an assisting brand
manager.

Marketing Functions:
Labanita does its own Sales, advertising, Consumer research
(quantitative and qualitative), branding, production, pricing,
Supervise manufacturing process, research and development.
 Quantitative research: is accomplished by surveying a scientific
sampling of your customer base. Surveys can be conducted by phone,
mail or online.
 Qualitative research delivers a deeper understanding or analysis of the
statistical findings of your quantitative research. For example, it can
help you determine why half your consumers don’t like your new
product.

Labanita achieves the two-fold goals of marketing which is attracting

new customers by meeting their needs and get in touch with them
either through on ground stores or through Social media. They a
Social media platform which is powerful in which they can
communicate with customers and promote their products through
advertisements. On the other hand, in order to maintain their current
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customers, they always keep in touch with them, for example Instore
activation where customers are asked if they buy Labanita’s products
and offer them sales and gifts if they do, they also use customer
service for any complains and they reply and compensate by sending
them the products and follow Customer Service policy where
customers have to be satisfied.

Is Labanita A Smart Company?

From labanita’s point of view, they try to do their effort maximum in

order to satisfy their customers, they try to produce and deliver the
most suitable products that meet their customer’s needs and they
always put their customer’s complaints into consideration. They
always try to equalize their delivery with their promise to meet their
customer’s expectations. However,customers will always expect
more regarding the quality and the product itself.

Is Labanita A Proactive Company?

It varies upon the problem labanita told us.
For example ‘’The availability of the product side’’, which means if
a product is missing from a store, they try as much as possible to
restore it. And if they got a call from one of the outlets ordering
milk, they make sure it is delivered it. They prepare daily reports
representing the outlets and stores they deliver their products to. In
case of return, they make sure to compensate their customers.
Regarding the manufacturing side
If they manufactured any product, they keep it in a preservative
power for some time, if it has any defects then it will not be released
in the market and they always make sure not to release any defective
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product in the market.

However, they can’t always succeed in doing that because for

example if they received a call from one of the supermarkets after
the working hours of the sales people they wouldn’t be able to solve
it

Labanita’s Relationship With Its Customers And Partners

Mainly their partners are traders and outlets. They try to give them
incentives and offer them discounts.

As for the suppliers Labanita keeps good relationships with its

suppliers. If they chose to work with one supplier they do not go for
another. They also assume that their suppliers give them the best
prices and the best machinery.
Concerning their customers they try to get in touch with them either
on ground or through their customer service program they have.

Labanita has a wide range of SBUs. They have the fresh skimmed
and full cream milk, Rayeb milk, flavored yoghurt drink (Yopa),
yoghurt also with different flavors, triangular cheese and the Tetra-
Pak milk.
The company divides its SBUs on product basis. They have the fresh
range products like the fresh milk for example which is usable for
human use for 7 days since the date of production and the dry, long
life products like the Tetra-Pak milk and the triangular cheese.
According to Labanita’s BCG matrix, the yoghurt is their star
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product and they are the 3RD in market as it has the biggest sales and
the fastest growth rate. They also made a big investment and
expansion regarding it they bought a new machinery for it as they
see potential in it in the market
As for the question mark it is the fresh milk as they generate low
cash but high market growth rate. For the cash cow is the Tetra-Pak
milk and the processed cheese they are also 3RD in the market
because they generate very high sales but relatively low market
growth rate and they don’t have a dog. They value each one of their
products very much but they consider their BCG matrix as fair

Type Of Distribution:
Knowing that Mansour Group is already a distribution company,
Labanita has a direct distribution channel that distributes mainly to
businesses (restaurants, hotels,…)  However, Labanita resorts to
indirect distribution channels through wholesalers and retailers that
are carefully selected according to their ability to deliver Labanita’s
products to the end consumer at its best conditions in good quality.
The type of distribution here is considered in between selective and
intensive. You'll find Labanita products in many supermarkets
however these stores are chosen carefully like stated before
according to their ability to meet the company’s storage conditions.
Those retailers have to prove that they have the capabilities (good
fridges, enough stocking places) so the products remain fresh in their
store.

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SUPPLY CHAIN OF YOUR PRODUCTS:

There are two different cycles, a cycle for an existing product and a cycle for
new products:

For new products it always starts and ends with the marketing department:
a. Marketing Department submits a proposal of the new product, precising
the specifications of this product, the benchmark, competition samples,
and flavors to the  R&D Department 
b. The R&D Department does their research in order to produce the new
products 🡪 
c. Then everything is presented to the Finance Department to calculate the
costs
d. Then the Procurement Department is directed to make a buying plan of
the materials needed for this product and organize everything (timing,
deliveries,…) 
e. Then starts the manufacturing based on the procurement department
plan
f. Production of goods
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g. Stock of goods
h. Dispatching of goods
i. Sales of goods 
j. Marketing department markets for the new products.

For existing products: the marketing’s department first task, the R&D and the
finance don’t take place when it comes to an existing products because this
data already exists, so the steps are:
a. Procurement Department makes a buying plan of the materials needed
for this product and organizes everything (timing, deliveries…) 
b. Then starts the manufacturing based on the procurement department
plan
c. Production of goods
d. Stock of goods
e. Dispatching of goods
f. Sales of goods 
g. Marketing department markets for the new products.

Segmentation Of Labanita’s Fresh Milk

 Segmentation: (Labanitas new fresh range) it's considered behavioral based on the benefit it
provides and that is because of the market 

product segmentation segmentation  segment target target positioning

category variable profile strategy strategy

Labanita demographic age groups 1.suitable housewives mass more for

fresh family size for all ages and working marketing same
milk psychographic consumption 2.affordable moms as they (Labanita’s
income 3.high have the fresh milk is
behavior quality highest characterized
4.suits purchasing by its foam so

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personal power of milk it offers this
preferences (whether it’s feature for
for their kids, the same
coffee price of the
consumption, competitors)
etc)

Marketing Environment:

Labanita’s marketing environments are economic, social and cultural

environments.
The economic environment consists of purchasing power and cost
structure while the social culture environment consists of different
product preferences such as lactose intolerance products or Greek
yogurt for people who stopped eating regular yogurt. The company
takes these changes into consideration and is currently working on
these desired products to respond to the changes that their customers
go through in order to maintain its customers.
Labanita’s marketing department is dynamic and flexible. The

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company is flexible because it can change its prices, change its
production level, marketing strategies, or even add new products. It
also adapts quickly to any change like the global economic crisis
that’s about to hit the whole economy in 2022 causing shortage in
materials, storage, delivery cars,..etc. Due to the global economic
crisis, there might be no containers for the milk to be stored, so the
company has insights and tends to prepare ahead for changes like
these in order to respond quickly. The company can overcome a
problem like that by providing an order for 6 months instead of 3
months to secure price and availability. The other component is that
labanita is dynamic which means it doesn’t require a lot of time to
make decisions and it also acts fast towards any change in order to
be able to compete in the market. If the company did not respond fast
to any crisis or change it would be out of the market in no time and
its customers will quickly shift to another substitute from the
competitors especially its milk products as the milk market is
saturated and has many substitutions.

Labanita doesn’t have any internet application however the company

has a website for Mansour group as a whole that contains all their
product lines and further details about each product and the company
as a whole in the following website:
http://mansour-int.com/about2.htm
You can’t purchase their products online yet but you can check all
your desired products on their website. The company also has a
social media platform on Facebook under the brand name Labanita
where they market their dairy products aside from other marketing
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strategies undertaken by the company outside social media.
The company doesn’t plan for an online purchasing platform as they
distribute their products, however if you want to order their products
online, you’ll find them on other shopping apps like Carrefour app.

Pricing Strategies:
It depends on the product. Sometimes they use the cost plus method
to reach the target ROI which is a pricing method in which a formula
is used to calculate the price to be set for a product to return a
desired profit or rate of return on investment assuming that a
particular quantity of the product is sold. Also sometimes they
determine the price based on the competition for example if a
competitor puts price x while having a stronger brand than labanita’s
and they’re the market leader in this situation therefore the company
has to set a price depending on the competition , so most of the time
it's these two options either the cost plus or competition based
pricing methods depends on the situation.

Promotion Strategies:
The company follows the push and the pull strategy. The push is for
the sales and point of sales, and the pull is through social media,
advertising through the page by adding recipe videos for how to use
the product or what the product could be used in. The company
adopts traditional and digital advertising methods for promotion.
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However, they have the direct marketing which is building
awareness in general and branding, also Labanita have the sales
promotion in stores and the offers written in flyers and TV
commercials. Additionally, they also adopt the personal selling
method for example: the merchandisers and salesmen that are in
stores to promote Labanita’s products.

Conclusion:

As a market research company we believe that Mansour group is a

very successful distribution company and since we were talking
specifically under Labanita’s brand name, we can say that the
company believes in marketing and tries keeping the brand name
among its competitors. The marketing department cares about
keeping up with its customer needs and always seeks further
improvement. Today there are many companies providing the same
products and benefits like Labanita but the fact that the company was
able to keep its brand name in the market without expanding its
product line as much as its competitors prove that it has loyal
customers and that marketing is pretty much the backbone of the
company and it’s what keeps the product line going in addition to
their high quality.

We think the company has strong and weak points. We’ll discuss the
strong ones first. After analyzing the marketing strategies of the
company we can conclude that the company knows who they’re
aiming their products at. As stated by the marketing manager during
the meeting, she mentioned that the one thing that makes their fresh
milk different from other brands is the consistency of the foam it
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produces which is preferred by a number of cafes and restaurants that

are considered loyal customers to the brand. The pricing of the
products is pretty much affordable in their other products like the
rayeb, triangle processed cheese, and yogurt, they don’t offer
something additional however they offer the same benefit of the
competitors for less price. Speaking of their weak points, we think
Labanita needs to expand their product line and start shifting their
focus from the quality of their current products to what the
consumers actually want. Labanita’s product line hasn’t changed that
much in a long time which caused many of its consumers to start
forgetting about it and quickly shift to other brands that have more
product variety. For example, there are multiple behavioral changes
that took place over
the years that Labanita’s hasn’t responded to yet, like people who are
lactose intolerant, people who prefer fat free yogurt and different
flavors (Labanita only provides full fat and only one fruit flavor), not
to miss the huge popularity of greek yogurt that’s consumed by
everyone nowadays and many companies started responding to such
changes rapidly which may cause Labanita’s consumers to shift to
other brands. To sum things up, Labanita is considered a successful
company with a successful marketing department however it needs
to work on rapid responses towards behavioral and demographic
changes that occur over the years and start advertising more on TV
commercials and social media platforms to build the brand name in
the consumers minds again.

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