KAHA Marketing Plan Project

Submitted To:
 Dr. Ahmed EL Samadicy
Submitted by:
 Ahmed Mahmoud Dakrouri
 Marwan Abd El-Menam EL-Seaidi
 Moataz Hegazy
 Mohamed Fathi Ahmed
 Youssef Taha

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 Table of Contents
 
0.0 Introduction: ..................................................................................................... 3 
1.0 Executive Summary .......................................................................................... 3 
2.0 Situational Analysis: ......................................................................................... 4 
2.1 Market Summary: ......................................................................................... 4 
2.2 SWOT Analysis of KAHA Company: ........................................................... 5 
2.3 Competition Analysis for Kaha Company: ................................................... 7 
2.4 Product Offering: .......................................................................................... 7 
2.5 Distribution: .................................................................................................. 8 
3.0 Marketing Strategy: ......................................................................................... 8 
3.1 Target Markets: ............................................................................................. 9 
3.2 Positioning ................................................................................................... 10 
3.3 Strategies ..................................................................................................... 10 
4.0 Marketing Mix: .............................................................................................. 11 
4.1 Product: ....................................................................................................... 11 
4.2 Features & Brand Structure: ...................................................................... 12 
4.3 Promotion: ................................................................................................... 13 
4.4 Pricing strategies ......................................................................................... 13 
4.5 Place/ Distribution Strategies ...................................................................... 14 
4.6 Marketing Research .................................................................................... 15 
5.0 Financials:....................................................................................................... 15 
5.1 Controls: ...................................................................................................... 16 
5.2 Implementation: .......................................................................................... 16 
- Referances: …………………………………………………………………….17

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0.0 Introduction:
Kaha foods was the first established company in Egypt in the field of packaging
preserved food with a capital cost 150 thousand EGP, where it was established in
1940 AD in a small factory in the city of Kaha.
It was nationalized in 1952 under the reign of Gamal Abdel Nasser, In 1962 the
company was merged with other companies under the same name Kaha Co. For
Preserved Foods – An Egyptian shareholding Co., Kaha Co. had a significant
supportive role in supplying the Egyptian army at war period.
In 1991 according to implementation government program 90% of the company
was sold to a private investor - Hassan Mohammed Auf Group, Due to the failure
of the investor to manage the company and the accumulation of losses, therefore
holding co. for food industries has filed lawsuits to recover the company, it
becomes a public company once again in 2002.
The company has 6 factories at the level of the governorates of the Republic and to
meet the needs of the global market.
Edfena Preserved Food Company was merged into Kaha Preserved Food Company
into one entity under the name Kaha Preserved Food Company on 06/16/2021.

1.0 Executive Summary

Kaha Company will remarket its products, in a mature market. The product has a
huge potential to be upgraded and taken to the next level and compete effectively
with many preserved food manufacturers if a strict product development plan is
implemented. We are targeting specific segments in the consumer and business
markets, take advantage of sale points existing for products and expansion plan to
establish distribution sale points and warehouses, serving the Delta and Upper
Egypt regions to meet the needs of consumers with a good quality product and
reasonable prices.
The primary marketing objective is to achieve first-year Upper Egypt & Delta
market share of 10 percent. The primary financial objectives are to achieve first-
year sales revenues of 200 million Egyptian pounds, keep first-year losses, and
break even in the second year.

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2.0 Situational Analysis:
In Situational analysis part we are going to discuss the company’s capabilities to
serve its targeted segment, plus the surveys, Researches & market intelligence part
to know our competitor’s position too,
If we apply this on Kaha Beverages, we need to know clearly the target segment
we need to work on, through knowing its size, needs in the product, so we can
match it, on the same hand how we are going to use the trends to grow the
awareness level of Customer to level of product loyalty.
Also in this part we should state competitors of Kaha that targets the same
segment, in terms of product features, price, distribution, and promos, so we can
settle down our market penetration strategy, and how to get the best of whom we
are targeting.
KAHA was established in Egypt in 1940, as company in packing the preserved
food, In 1952 it was nationalized with law from President Gamal Abdel Nasser,
and became under the umbrella of Holding company for food industries in 2002 till
now, in 2017 President Abdel Fattah El Sisi, signed on law to merge KAHA with
Edfina Company, and do whole reorganization and restructuring for both
Companies, in 2018 KAHA sold 70K Ton, with total revenue 118M EGP.

2.1 Market Summary:

 

Food & Beverages market size in Egypt is considered one of the biggest in the
Middle East due to our high population, and geographical distribution with
different preferences.
In Egypt, there are more than 7 brands that produce well known juices (Juhayna,
EL Maraie, Lamar, and Beity) , And more than 5 big names that produce pastes
and canned olives or beans (Americana, Fine food, Knorr,) , that mainly focus
on greater Cairo, and actually they are controlling it with High market share, and
different marketing channels, plus their huge marketing campaigns throughout
advertising, sales promotions, and sponsorship , and currently they positioned
themselves on Customer’s mind as Top of it.
Accordingly, best market penetration for Kaha products rebranding in both
(Food and Beverages) should be in Upper Egypt & Delta due to high need for
Kaha products, plus the buying power, product affordability, and average
income in those governorates.
Will divide our target segment to (B2C & B2B), and will expect their needs, so

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we can decide our product features, and benefits as follows:

Customer Targeted Corresponding

KAHA Product Customer Needs
Type segment Features/benefit
B2C Students (Primary Juices Colorful A. Production line
& Preparatory packaging, sugary B. that can apply trendy
stages) & refreshing designs in terms of
juices color & shape of
package
C. Match additives
through chemicals to
get sugary and
refreshing product
B2C Households Pastes or Canned Quality & % of Increase % of tomatoes &
(Mothers) (Olives & Beans) concentration design easily open
packages
B2B Restaurants All KAHA Size of product Special production line
Products itself, packing of for B2B Customers for
Carton, durability inside & outside packing,
& Expiration plus different additives
date of product. for all products that
extend expiry date

B2B Hotels (2&3 stars) All KAHA Size of product

Products itself, packing of
Carton, durability
& Expiration date
Of product.
2.2 SWOT Analysis of KAHA Company:
 

A. Strength:
• Heritage:
As the company exists in Egypt since 1940, and all Egyptians know its brand
identity.
• Diversity:
Kaha has diversification in its product from food & beverages in the form of
juices, jams, Agricultural canned products, beans, and Pates.
• Resources Availability & Government Support:
Kaha is considered to be owned by the government under the umbrella of
Holding company for industrial food, which follows ministry of Business
sector, that has more than 70K Employee.

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B. Weakness:
‐ Absence of R&D process which will highly affect the quality of the product.
‐ Lack of advertising & customer interaction in social media will lead to
lower credibility in the both Company & its products.
‐ Old fashioned design: which will lead the customer to lose interest in buying
obsolete product.
‐ Weak marketing channels & distribution which will lead to lower
accessibility to product, and less loyalty.
C. Opportunities:
• Variety of Market segment:
Kaha products can be used by different type of customer and different segments
with different ages (Students, Households, Restaurants, & hotels).
• Challenging prices & promos:
As Kaha prices considered to be lower by 20% than all its competitors, and the
seasonal promos Kaha do heavily support this.
Specialized in concentrated syrup in which it will be highly recommended
product from different segments.
New policy from the Egyptian government in consuming local goods, and
downsizing the
The imported amount from other countries, plus motivating local sector in
manufacturing.
Market penetration by 30% if Kaha focused on class C markets specially in
(Upper Egypt & Delta).
D. Threats:
• Aggressive competition:
Kaha can’t easily penetrate the market after long absence especially in
Greater Cairo.
• Low customer Positioning:
Although they can penetrate Upper Egypt and Delta Markets, however
customer positioning phase will take long period of time.
• Level of expertise & mentality of Governmental sector:
Kaha will face many challenges to achieve what they aim for with the same
resources with the same resources and employees, as many trainings and close
Follow up should be done in applying vision and loyalty programs for the
employees themselves.

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 2.3 Competition Analysis for Kaha Company:
 

In competition part, we will state main competitors of Kaha Company in different

products, and their current market position, plus providing high-level overview of
their market strategies in terms of promotional mix tools and distribution channels,
so we can decide the best rebranding strategy and focus on re penetrating the
accurate market with the right plan after positioning Kaha with its competitors.
For Food & Beverages we did the following exercise with Kaha competitors in
Upper Egypt & Delta:

Measurable
Best Juices AGA juices Kaha Juices
Factors/Company

Design Classic + Modern Classic with modern Classic

touch
Taste Modern Classic Classic
All retail shops & Hyper MOD Stores, Some 21 Owned stores, Ahram
Place/Distribution
Markets hyper markets+ 4 Market & Masria Market
channels
owned stores
Price Moderate Moderate Low
Advertising, Sales Promotion Publicity & Exhibitions Personal selling, online &
Promotion mix tool (Impulse buying), Internet & Digital
Online
People Private Sector Private Sector Public Sector

2.4 Product Offering:

‐ Keep vegetables and juices fresher for longer than they are fresh.
‐ Ease of use of products and saving time for the consumer.
‐ Jam contains a high percentage of sugars and fruits rich in vitamins and
nutrients.
‐ Removal of toxins and inactivation of some pathogenic microorganisms.
‐ Production of juices with different fruit flavors that taste like natural fruits and
are valid for a long time.
And we are going to choose one of mutual products between Kaha and its
competitors to compare its specs, price & offers on: (Mango – Tetra pack)

Kaha AGA
Volume 170 ML 250 ML
Fruit Concentration 70% 80%
Price 5 LE 9 LE
Ramadan Campaign 2.5 LE -

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2.5 Distribution:

Kaha currently owns 21 stores distributed over 10 Governorates as follows:

5 stores in Cairo, 4 stores in Alex, 4 stores in Sharkeya, 2 stores in Beheira, and
only 1 store in (Giza, Qaliobeya, Kafr El Sheikh, Monofya, Ismailia, and Port said),
where they can’t be easily accessed by their target segment.

Knowing that Kaha don’t distribute in Hypermarkets, or Kiosks , but after deciding
our Market segment, That Kaha will target C Class in Upper Egypt & Delta areas,
we found that the best penetration for the our distribution channels should be in
Banisweif, Qaliobeya, and Ismalia, using the hyper markets there like (Carrefour,
Ragab Sons, Mahalawy sons, plus the Kiosks , moreover Kaha can save Budget to
open 3 stores within the upcoming year in 3 centralized locations, in the mentioned
governorates).

3.0 Marketing Strategy:

Kaha’s market share in Egypt is 3.5% excluding Upper Egypt and Delta regions, so
we are targeting to serve those regions with our products (Jams, Juices, Beans and
Salsa) as a penetration market for the upcoming years, as the current population in
there is about 63,246,361 individual.
Then, we have set an aggressive but achievable objective for the first and second
years of market entry, focusing on market share of 10% increasing annually.
• First-Year Objectives. We are aiming for a 10% share of the UE & Delta regions
of focusing on (Jams, Juices, Beans and Salsa) through unit sales revenue of
200,174,733 LE.
• Second-Year Objectives. Reaching 20% share in there through ensuring revenues
of 400,349,465 LE.
Above results are elaborated according to our current price list of our
products.

Product Name KAHA Price List (EGP)

Jam 350 gm 11.9
Juice 200 ml 3.75
Salsa 300 gm 7
Beans 350 gm 9

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 Upper Egypt & Delta population are
Population served by
63,246,361
KAHA out of UE &
Current Sales 1st Year Planned Sales 2nd Year Planned Sales
Delta are 38,753,639
(3.5%) (10% of Population) (20% of Population)
Jam 350 gm 16,140,891 75,263,170 150,526,339
Juice 200 ml 5,086,415 23,717,385 47,434,771
Salsa 300 gm 9,494,642 44,272,453 88,544,905
Beans 350 gm 12,207,396 56,921,725 113,843,450
Overall Sales Revenue 42,929,344 EL 200,174,733 EL 400,349,465 EL

3.1 Target Markets:

 
As the government is executing the roads development plan nationwide of Egypt
which affects all business aspects in terms of distribution points and reachability,
Kaha’s strategy is based on a positioning of product differentiation and an
expansion plan for establishing distribution sales and warehouses, that serves Delta
and Upper Egypt regions to meet consumer needs with a good quality product,
reasonable and affordable prices.
Kaha is targeting all families and students in high school, college, and graduates
that consume daily food and beverages products, This segment can be described
demographically by age (9–16) years old different educational status for (Juice and
Jam products), while for (Salsa and Beans) it would target all age ranges (20-60)
years old knowing that all of sorts of income ranges are considered.
After searching for the average annual income for families in Egypt according to
Central Agency for Public Mobilization and Statistics report, that elaborates every
family have earn averagely 5,300 EGP/month (60,000 EGP / Year).

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3.2 Positioning:
 

Using product differentiation, we are positioning Kaha’s products as the most

versatile, convenient, value-added model for our households and personal use. Our
marketing will focus on the value and the condensed availability of Kaha’s point of
sales in Delta region as in (Beheira, Sharkeya and Monofeya and Kafr El Sheikh),
considering the expansion plan geographically especially in Upper Egypt to serve a
huge number of consumers.

3.3 Strategies:
 

Product: developing our currently products to meet all ages requirements,

accordingly we as students’ need joyful colorful packages for (Juices and Jams)
with different sizes whether 200ml or 330ml, while for beans and salsa, Kaha will
capitalize the resources of Egyptian land (Agricultural Territory) from best local
companies that could supply best quality of tomatoes and beans for our Salsa and
Beans.
Pricing: according to our research we found the increase of demand for some of
our products (Juice and Jams) during educational season from (September to June)
which will allow us to make some offers and promotions for all students in
different ages, attracting their needs through lower prices and good qualities of
products, while for other products such as beans and salsa we will play a great role
such in Ramadan season, introducing many offers and promotions for families
which will attract them instantly.
Distribution: Kaha’s will focus on a main distribution network by capitalizing the
strong existence in Delta and upgrading all transportation fleets, as it is a crucial
component for distributing the products. Our core objectives are to continuously
maximize the storage capacity of our trucks and the bounds of our network; the
more customers within our grasp and the more efficiently and inexpensively we
can reach them, the better positioned we are to capitalize on market opportunities
and deliver to the needs of our consumers.
Marketing Communications: By integrating all messages in all media, we will
reinforce the brand name and the main points of product differentiation. Research
about media consumption patterns will help our advertising agency choose
appropriate media and timing to reach prospects before and during product
introduction. Thereafter, advertising will appear on a pulsing basis to maintain
brand awareness and communicate various differentiation messages.

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The agency will also coordinate public relations efforts to build the Kaha’s brand
and support the differentiation message. To generate buzz, we will host a user-
generated video contest on our Web site. To attract, retain, and motivate channel
partners for a push strategy, we will use trade sales promotions and personal
selling. Until the Kaha brand has been established, our communications will
encourage purchases through channel partners rather than from our Web site.

4.0 Marketing Mix:

4.1 Product:
 

Products come in several forms. Consumer products can be categorized

as convenience goods, for which consumers are willing to invest very limited
shopping efforts. Thus, it is essential to have these products readily available and
have the brand name well known. Shopping goods, in contrast, are goods in which
the consumer is willing to invest a great deal of time and effort. For example,

consumers will spend a great deal of time looking for a new car or a medical
procedure. Specialty goods are those that are of interest only to a narrow segment
of the population—e.g., drilling machines. Industrial goods can also be broken
down into subgroups, depending on their uses. It should also be noted that, within
the context of marketing decisions, the term product refers to more than tangible
goods—a service can be a product, too.
Regarding Kaha, the product has a huge potential to upgrade and move to the next
level if a strict product development plan is implemented.

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 Product strategy:
 

To satisfy the needs of our premium customer we maintain the high quality and for
our best quality we get certificate from International Organization for
Standardization (ISO). We are ISO 9001:1985, ISO 14001:1990 certified company.
Hence our new product we are looking to provide the best quality products we will
take some measures, like
‐ Products are being produced with the help of superior quality high-tech
machineries made in Italy.
‐ We import the best quality fruits and veggies from region and also collect from
local suppliers.
‐ To maintain the quality and standard of our product, products are being tested in
our own laboratory, components of which are European and computerized.
‐ We strictly maintain the Hazard Analysis Critical Control Point (HACCP) in
every stages of manufacturing chain.
‐ Products are produced health wise and totally untouched.
‐ The products are free from any harmful chemical particles.
‐ The products are with pure quality & exclusively good for health.
‐ The products are marketed with high quality food grade package.

4.2 Features & Brand Structure:

 

Changing the product features will be a must due to the old and ineffective design
that exists.

‐ The carton packaging will be more environmentally friendly and

easier to handle and recycle, also a variety of designs will be
available to apply in case different products introduced.
‐ Also, exchange other products like preserved vegetables from the can into glass
jars to be easier in opening.

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‐ Keeping the old Kaha logo on the carton pack as to guarantee Kaha’s authentic
image in the customer’s perception.

4.3 Promotion:
 

‐ We make promotional activities for our product in different school, college,

various quiz competitions, debates, and so on
‐ Advertisements will be given in television, radio, internet, and billboards.
Advertising themes will be changed with time and promotional activity will be
carried out to generate the consumer
‐ In different occasion we will open special sales center where attractive point of
purchase display would be arranged to create positive image in consumer’s
mind.
‐ We will provide different incentive to our distributor.
‐ We will sponsor various cultural programs, national occasions, Religion festival,
other important day(s). Such as Eid El- Fitr, Eid UL Adha, Friendship day,
world Health day, World Child Day etc.
4.4 Pricing Strategies:
 

Pricing strategies are most important stage in marketing mix. As we are going to
launch a new product in the market, we do not have any idea whether the price
would be accepted or not by the customers. If we select extensively high price,
customers will not buy and volume of sales will be very low. On the other hand
setting lower price will not cover our costs. So we have to consider the following
things in selecting price.

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 Acceptance of product:
As our product faces competition against both fruit and beverage drinks, price of our
product should be accepted by customers. Our product fulfills both nutrition needs and
beverage needs. For this extra utility we will go for penetration pricing with our
competitors.
Maintaining market share:
If the product is accepted by customers in near future, more competitors will enter in the
market. So our price should be such that can protect our market share in the competition
period. Moreover we will need to lower the price to hold the market share at the time of
competition.
Earning profit:
As a business our main objectives is to earn profit. So we should not set any price that
will not cover the cost of the product. After covering the cost we set a profit margin for
our pricing.

Volume Nectar Price (EGP)

125 ml 2.5
230 ml 3.5
1L 11
Ramadan
20
product’s

4.5 Place/ Distribution Strategies:

 

Generally, there are different types of marketing distribution system. Consumers

are able to buy the products from different market place. All these distribution
strategies are consists of producer, wholesaler, retailer, and finally to the consumer.
There are mainly four types of marketing distribution channel:
‐ Conventional Marketing channel
‐ Vertical marketing channel
‐ Horizontal Marketing channel
‐ Hybrid Marketing channel
We select the conventional marketing channel to distribute our product. Our
products will be distributed mainly in local kiosks, supermarkets and key accounts
located in delta and south Egypt cities. The selected distributor will supply Kaha’s
products to the wholesaler and also to the retailer and the consumer will collect the
product from the mentioned retailers.
There are three types of distribution strategies:

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 ‐Selective distribution.
‐ Intensive distribution.
‐ Exclusive distribution.
We choose the selective distribution for our product. We will supply our product to
delta and south Egypt cities and demand will be analyzed based on data coming
from these cities.

4.6 Marketing Research:

 
During the initial phase of the marketing plan development, several focus groups
were held to gain insight into prospective customers. These focus groups provided
helpful insight into the decision making processes
An additional source of dynamic market research is a feedback mechanism based
on a suggestion card system. The suggestion card has several statements that
customers are asked to rate in terms of a given scale.
There are also several open ended questions that allow the customer to freely offer
constructive criticism or praise. For example the varieties of products and
vegetable lines are the satisfactory or more lines of products are required by
customers
Also, online surveys and questions on Facebook pages is an important tool to study
and analyze the general mood and satisfaction level of the customer.

5.0 Financials:
 

Are expenses we incur with or without production; they include items like rent,
utilities, interest payments and other ongoing expenses for facilities. We include
these costs as part of our marketing plan so that we can indicate our ability to
continue functioning financially while implementing the plan.
This section will offer a financial overview of the Company as it related to the
marketing activities. We will address break-even analysis, sales forecasts, expense
forecasts, and how they link to the marketing Budget.
Break Even analysis: determines the sales volume needs to start making a profit,
based on fixed costs, variable costs, and selling price. It often used in conjunction
with a sales forecast when developing a pricing strategy, either as part of a
marketing plan or a business plan.
Sales Forecast: is the process of estimating future revenue by predicting the amount
of product or services a sales unit (which can be an individual salesperson, a sales
team, or a company) will sell in the next week, month, quarter, or year.
Expense Forecast: is used as a tool to keep the organization on target and provide

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 indicators when a modification or correction is needed.
Marketing Budget: outlines all the money a business intends to spend on
marketing-related projects over the quarter or year. Marketing budgets can include
expenses such as paid advertising, sponsored web content, new marketing staff, a
registered blog domain, and marketing automation software.
5.1 Controls:
 
‐Help management measure results and identify any problems or performance
variations that need corrective action.
‐ The purpose of marketing plan is to serve as a guide for the organization. The
following areas will be monitored to gauge performance:
• Revenue- monthly and annual.
• Expenses- monthly and annual.
• Customer satisfaction.
5.2 Implementation:
 
‐ Is the process of taking the marketing plan and assigning team members to
execute it, setting deadlines to complete tasks, and creating the collateral needed
to achieve the marketing goals.
‐ The following milestones identify the key marketing programs, it is important to
accomplish each one on time and on budget.

Milestone Start Date End Date Manager Department

Marketing plan
Marwan Marketing
Completion 1-Jan-22 28-Feb-22
website Development 1-Jan-22 28-Feb-22 Fathi IT
Ad campaign (Summer) 15-May-22 30-Aug-22
Ad campaign (School) 1-Sep-22 1-Oct-22
Advertising Marwan Marketing
Ad campaign (Winter) 2-Oct-22 25-Mar-22
Ramadan Campaign 26-Mar-22 1-May-22
TV & radio commercials
-
-
social media marketing
Kiosk Marketing
(Beaches) 1-Jun-22 30-Aug-22 Youssef Marketing
Direct Kiosk Marketing (Zagazig
Marketing University) 26-Mar-22 26-Mar-23
-
-

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 Milestone Start Date End Date Manager Department
Pyramids Half Marathon 11-Dec-22 11-Dec-22
Events
Al-Farghal Mould 5-Jul-22 19-Jul-22
Crafiti Egypt 24-Jun-22 27-Jun-22 Ahmed Marketing
Exhibitions Cairo International Book
20-Jan-23 3-Feb-23
Fair
Blood Donation
1-Mar-22 1-Mar-23
campaigns Government
Sponsorship 100 Million campaign 1-Mar-22 1-Mar-23 Moataz Relations
public schools (German Department
1-Mar-22 1-Mar-23
program)

‐ Reference:
• http://hcfi‐egy.com/fullCo.php?id=65 
• https://www.facebook.com/kahafood 
• https://ar.wikipedia.org/wiki/Kaha  
• http://www.expoegypt.gov.eg/co/kaha‐co‐for‐preserved‐foods 
• https://hapijournal.com/wp‐content/uploads/2021/07

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