Nabulsi Shaheen

International Marketing
Home take Exam (Case Study)
Prepared by
Mohamed Fathy Thabet
Presented to
Dr. Ramy Khodeir

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Case debriefing
The case addresses the state pf the soaps, lubricants, and wax markets in Africa, particularly in
Kenya. The amount of USD 22.63 million that these goods in Kenya market and Africa as a
whole. Mentioning the overall gradual reduction in Egyptian soap exports since 2017 brings
attention to an ongoing issue with the company’s worldwide marketing tactics. Egyptian soap
producers operate in both the state and private sectors.

According to the circumstances, restrictions were imposed by the Egyptian government to forbid
the exportation of goods related to preventing infection and expansion of the pandemic,
including soap products. These restrictions had an extremely high impact on the Egyptian soap
producers as it will reduce their sales revenues generated from exportation, including exports to
the African market. It also caused a significant decline in the domestic market due to the fierce
competition over the in-country Egyptian consumer. The implementation of these restrictions
also resulted in a decline in overall Egyptian product exports and desperate need for these goods,
including soap products, in the African market. As a result, soap manufacturers and firms were
given a great opportunity to satisfy the enormous unmet demand of the continent.

Problem statement
Nabulsi Shaheen practices casual exporting, which is a low commitment approach to
international business where the company responds to unsolicited foreign markets through E-
commerce channels but doesn’t have a special division or significant effort for international
marketing. The company doesn’t have a strategy for internationalization and relies on online
marketplaces. Meanwhile, governmental decisions have motivated multinational soap
manufactures to seek internationalization in African markets.

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Critique
The Nabulsi Shaheen soap company was given a fantastic chance to grow its market share in
Africa. Yet, it might have been good to perform extensive market research before plunging
blindly into unfamiliar seas. It would have been possible to better customize marketing
techniques to the African market with the aid of demographic and cultural studies.
Using online platforms for product promotion may appear to be a cost effective B2B service, but
there are drawbacks. Customers may not be brand champions ore devoted to the business in
Africa due to the country’s limited access to e-commerce and digital market[laces. The business
should carefully select online merchants with a strong reputation to prevent falling into this trap
and to guarantee a nice customer experience. It should be conscious of the possibility of having
to start over if it decides to change its approach or withdraw from the internet market.
The ability of customer to make their own decisions may have increased because of
globalization. But this necessitates careful competitive differentiation on the [art of businesses.
While indirect exporting practices may reduce logistical and transportation risk, they can result
in lower profit margins and less direct interaction with poetential African clients for the
corporation.
As a result, selecting e-commerce market platforms as a method of entering the African market
might not be sufficient. Due to its limitations, it cannot assist in serving the interests of clientele
to capacity. Nabulsi Shahee Soap Company must be alert, strategic and ready to adjust to
difficulties of the African market if it is to prosper in this new market.

Alternatives
The trade agreements between Egypt and Kenya, functioning within the COMESA framework,
provide Nabulsi Shaheen Soap Company with an unrivalled chance to broaden its market and
take full use of the extensive free trade region. The investment climate for COMESA members
has never been better thanks to the removal of all tariff and non-tariff barriers, as well as the
unfettered mobility of people, service, capital, and investment.
In particular, the agreement makes it possible for the Nabulsi Shaheen Soap company to create a
foothold in the African market, particularly in Kenya. It also provides the right of establishment
and residence in COMESA member nations. IN reality, Egypt and Kenya have already agreed to
refrain from levying double taxes on imports, demonstrating their commitment to to enhancing
their economic relations.
It is crucial that Nabulsi Shaheen Soap Company takes advantage of this unique opportunity and
implements successful market entry methods to establish itself in the Kenyan market. The

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business could investigate many potential market entry techniques, such as direct exporting,
outsourcing, strategic alliance.
Direct Exporting
Due to the establishment of a no export tariff agreement between the Egypt and Africa under the
COMESA agreement, this market entry method could be extremely advantageous. This strategy
carries various liabilities as well as the potential requirement that Nabulsi Shaheen sell its own
goods for the COMESA members. This approach might be more expensive, and it might be
challenging to completely comprehend and deep into the complex and understudied African
culture. But direct export could be a fruitful strategy and more profitable for the company in
fascinating new market.
Outsourcing
Nabulsi Shaheen has an excellent chance to grow their company through outsourcing this entails
giving another business responsibility for their entrance and promotion processes. They can
significantly reduce their marketing and labor expenses by implementing this strategic strategy.
They could have to give up some control over direct sales in the African market as a result,
though. Setting specific sales goals with the company being outsourced can help to reduce this,
but it’s crucial to be aware of the potential trade-off.
An important consideration is that middlemen can occasionally be a little erratic. Although
outsourcing can lower transaction costs and benefit from economies of scale, it’s crucial to take
the future of partnership with the outsourced company into account.
Distributors, on the other hand, might be a terrific method to cut back on the expenses related to
market transactions. They can take advantage of economies of scale and lower potential
information expenses for a business. Overall, Nabulsi Shaheen has a lot to think about in terms
of distribution and outsourcing plans.
Strategic Alliance
By building solid with African Businesses that already sell cosmetics, Nabulsi Shaheen Soap
Company can expand its clientele. Together they can develop a mutually beneficial plan that is
competitive and productive. By providing these companies with their olive soap product, which
they can subsequently include in the manufacturing of cosmetics. Profit sharing is possible with
this tactic for each sale.
Nabulsi Shaheen can avoid the risk associated with selling in the African market by using this
cutting-edge strategy. They can only reduce risks but also solidifies the connection between the
two businesses, opening the door for the future partnerships and mutual advancement.

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Recommended Alternative and Implementation
Direct Exporting
The value of this approach may increase following careful regional and demographic study.
Nonetheless, because of the market’s strong profit margins and constant demand, this investment
is not only worthwhile but even exceptional. Nabulsi Shaheen will have complete control over
the brand, which is essential because distributors can only help with sales; they cannot invent or
alter the essence of the product.
Moreover, TRIMs, also known as trade-related investment measures, can be used to support
effective direct exporting for members like the COMESA agreement. This will enable the
business to overcome the bureaucracy and corruption problems that exist in Africa, lowering
trade barriers like tariff and quotas set by port officials.
After extensive regional and demographic research, the value of this strategy might improve. The
markets high profit margins and ongoing demand, however make this investment not just
worthwhile but even extraordinary. As distributors cannot create new products or change the
fundamental characteristics of existing ones, Nabulsi Shaheen will have exclusive control over
the brand.
There are a few things should bear in mind if Nabulsi Shaheen want to extend the business into
African markets. Prior to anything else, it’s to understand the various licensing requirements that
can be applicable to Nabulsi Shaheen goods or services. In addition, Nabulsi Shaheen must be
week-versed in the logistics of shipping to these countries and the billing procedure.
Nabulsi Shaheen won’t be able to accomplish everything on its own, of course. Retailers,
distributors, and representatives from other countries can help with it. The success will depend
on how well Nabulsi Shaheen can work with these important people. Nabulsi Shaheen will need
to collaborate with them to determine a reasonable price and to agree on the conditions of
contracts.

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