MID-TERM

MARKETING
Strategic Marketing
Plan Dr. Mohamed Khaled

AMER GROUP ID: 19221469

Email:
CO.
Represented By: Haneen
Joseph Habib
Haneen.joseph@gmail.c
om

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Task 1: Organization Summary
1.1 Organization Name:
AMER GROUP HOLDING CO.
1.2 Organization Info:

 Type of Organization:
AMER group is local For-Profit Organization; umbrella
company for subsidiaries engaged in hospitality,
construction, real estate development and agriculture.
 Organization Background and overview:
Amer Group Development is one of the largest real
estate companies in Egypt as it has expanded its
projects to reach the top in the real estate market and
has become a distinctive imprint of real estate history.
Amer Group represents a group of holding companies
listed on the Egyptian Stock Exchange in 2010 to present the highest projects
with distinctive architectural designs that match the developments of the current
era as keen to provide all services, facilities, and payment facilities to attract the
largest number of investors.
Overview:
FOUNDED BY MANSOUR AMER IN 2005,
Amer Group was founded in 1985 with over 20 years of success and continues to redefine
Egypt’s Real-Estate development as a leading company and creating landmark destinations
whether 1st or 2nd homes by bringing the ultimate family destinations into the market with
world class restaurant chains, hotels, and malls to accommodate every need of an Egyptian
family. Amer has not only succeeded in putting Egyptian resorts on the global tourist map,
but also contributed positively to the economy by creating 12,000 new job opportunities.

 Size of Organization:
According to AMER GROUP Annual Report (2021), the size of AMER group in terms of
its financial performances and work force are illustrated
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Sales were up sharply during the first quarter of 2021 versus the previous year's first
quarter. During the first quarter of 2021, sales at Amer Group Holding Co SAE totaled 1.02
billion Egyptian Pounds. This is an increase of 237.4% from the 303.49 million Egyptian
Pounds in sales at the company during the first quarter of 2020. This was the largest same
quarter increase in sales since the third quarter of 2014. During the year ended December of
2020, sales at Amer Group Holding Co SAE were 1.39 billion Egyptian Pounds (US$88.63
million). This is a decrease of 7.1% versus 2019, when the company's sales were 1.49 billion.
WORK FORCE: No of Employees: Large organization (1000-2000) employee

 Range of Products and Services provided

Real Estate Hotels and Resorts
Development  ownership and
 real estate property operation of hotels and
investment,
resorts
development and
Ex: Porto Marina Resort &
management; civil
Spa, Porto Marina Golf
contracting for
Resort, Porto Sokhna Beach
commercial and
Resort & Spa, Cancun Resort
residential
& Spa and Porto Tartous
Ex: Porto Marina, Porto Sokhna, Hotel,
Services
Portfolio
Shopping Malls Casual Dining
Restaurants
 ownership and  the Group owns
operation of and operates
shopping malls international
Ex: Meeting Point New restaurant
Cairo, Golf Bay Mall and franchises
Sky Mall Ex: Chillis 19002, Studio

All Services: Hospitality, Real Estate, Commercial Real Estate, Commercial & Residential
Construction, Lodging & Resorts, Restaurants, Construction, Travel and Tourism, Vacation
Club, Furniture, Air Lines, travel agency and air cargo services,

 Key Customer Segment

Real State, Hospitality, residential, resorts and other services for the customer
(B2C) Business to Customer
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 Main Competitors “competitive analysis for Ending Period 2020”

Real-Estate Total Assets Revenues Relative Market
Sector Share

620.44M 188.52 M 0.76

4.44%
8.51B 1.1 B

8.51B 1.39 B 5.62%

20.04B 3.1 B 12.53%

48.97 B 4.68 B 18.92%

117.9 B 14.1B 56.9%

*The Table of competitors is listed according to organization from least

to max revenues reported
1.3 Stakeholders:
Seven Markets Model for Stakeholders Analysis
Description
Model
Internal Markets The major internal aim of AMER Group is to ensure that the operation of the organization such as
developing is optimized by ensuring that every induvial employee and departments, that has close
interface with the customer, provides and receives excellent service to be best representatives of the
organization to get customer’s awareness and interest.
Supplier Markets Large percentage of AMER’s revenues are spent over materials, goods, machines, furnituring, etc.
from a large range of supplier network. Recently, AMER group formulates an appropriate relationship
strategy with its suppliers to avoid the quality issue that it faced last years in order to satisfy its
customers and purchase units with better trust.
Referral For AMER group point of view, the best marketing is done by its own customers which is why
Markets
customer loyalty ladder, but they are not the only sources of referral to AMER’s current projects.
Referral sources for AMER include its development and real -estate brokers, insurance org, which
already have good relations with them. Noticeable and continued improvements in AMER’s sales.
Employee Markets For a long time, AMER faced problem issues about labor force for paying low wages and salaries and
long working hours without days-off which made a big gap between the employees and the group that
lead to unloyalty from the labors to the organization.
Influence Markets Being a developer that offers mixed-use, family-oriented destinations, AMER group depends largely
on its Media and press center for launching new projects and resorts to influence its segment of
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customers.
Customer Markets emphasizing on the acquiring of new costumers and building long-term customer relationships. AMER
group takes the transactional route, once successful, its transferred to the next prospect which is mean
a little effort goes into keeping that customer such as the issues concerned with the handover.
Shareholder relationship After the spin-off of the two groups:] AMER and PORTO [ groups, the shareholder relationship’s
structure developed and each has its revenue sharing arrangement whether in real-estate or other
sectors. Shareholders such as representatives of “SOL Global holding limited, Fineby Estates, AMER
WAKF LTD, and others have the total rights to take decision in every meeting holded in sake for value
maximizing for the AMER Groups.

Task 2: Analyzing Internal and External Environment using

relevant frameworks
2.1 PESTEL Analysis of Macro Environment:
Macro Factors External Factors Potential of Time Frame Type of Implic Relative
Impact Impact ations Import
ance
1- “The new construction law taken
by Government regulations” that
require new licensing applications High Long-term Opportunit +ve High
y
with notarized contract “Laws not
applied on armed forces
development.

2- Determination and limitation of

number of floors governmental High Long-term +ve High
policy, significant increase in unit Threat
P prices during the next period as
well as the closure of some areas
Political and band construction on it.

3- Suez Canal Political situation

considered an investment bright
spot for infrastructure development
such as the contract with Russia to Medium Long-term +ve Medium
Opportunit
produce construction trucks,
y
tractors, RC products as well as
facilitating export for organizations

4-Grand Ethiopian Renaissance

Dam threatening the safety and Medium Short-term Not yet Medium
stability of Egypt affecting the
Threat
public relations relative to AMER.
1- Economic Trend: COVID-19 effect
on Investment 2021:
Global Growth projected 6% in 2021,
Moderating to 4.4% in 2022 Medium Long-term Threat -ve Medium
E * AMER reducing the -ve effects on the
sectors of the group through the overall
Economical performance of the subsidiaries/
High Long-term Opportunit +ve High
2-Unemployment Rate 7.4% y

3- Inflation Rate 5%
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Increase GDP Egypt rate: 5.7% High Long-term +ve High

Opportunit
4- Exchange rate: 15.69 y
(Largely affecting exporting to Org. Medium Short-term +ve High

Threat
1- The No of Households in Egypt: 25
million in 2020, which is an increase of High Long-term Opportunit +ve High
about 1.8 percent compared to 2019. y
(AMER targets family mix-use projects)

2- Middle Social Class rate: 30%

S (The MC is “entrepreneurial” class
Medium Long-term +ve Medium
Opportunit
Social driving investment in AMER and
considered the most segment attracted to y
its projects.)
+ve High
3- Rate of Age “25-54” =37.9% High Long-term
(Most important demographic segment
to AMER) Opportunit
y
1- The Growth of Digital Technology
has also increased the number of
players in the industry. High Long-term Opportunit +ve High
T * Partnership between Orange & AMER y
Technological for non-cash payment &collection
services through Orange Cash
supporting the digital transformation to
create a cashless society.
1- The Law of Protection of
Competition and Prohibition of High Long-term Opportunit +ve High
Monopolistic Practices in Egypt y
L “Law No. 3 of 2005 and its
Legal Executive Regulation”

2- Law 5 for 2021: changes in Not yet

some provisions of real estate Medium short-term Medium
Threat
transaction Tax: 2.5%

2.2 Porter’s 5 forces Analysis of Micro Environment:

Forces Observation Level of
Impact
1- use of specialized production technique, such as smart homes technology used in upcoming
organization’s commercial projects, primary and secondary homes such as Porto Said tourist and High
residential resort.
Rivalry between
competitors 2- Achieving service differentiation with a unique competitive advantage makes the competition
high, for example AMER’s group (developer of Porto Said) well known to offer in his projects” for High
the first time in Egypt, you will be able to own a residential and touristic project together, with all
the required services with the highest level of luxury” among the most promising investment cities
such as Port Said. High
(High)
3- Ability to achieve brand loyalty by using one visual branding in Porto Said project “Under the
slogan "Live life in a new concept" High

4- Having the access to other competitors’ activities through “Market intelligence “ High

5- the only way to increase its market share is to take it away from a competitor. There is also a
higher degree of protectiveness to any existing share in the market, as once lost, it may be hard to
regain. “Size of competitor”
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1- The power of supplier in AMER’s industry doesn’t pose too much threat as compared to the power of buyers High
as there are large number of suppliers and ever-growing in housing or hotels industry related to Porto Said
hotel, thus they rarely can affect input costs or put strains on the project’s managers.
Bargaining power High
2- Porto Said resort make use of extensive network of suppliers and chooses backward integration to lower the
of suppliers power of supplier on it or demanding high prices. Networks include furniture, fixtures, household goods,
foodstuff, marketing companies, interior designers, property maintaince, and landscape suppliers, etc.
(LOW)
3- As being one of the largest resort-mixed use making companies, AMER’s availability of substitutes of High
suppliers for its projects with high service and quality maintained which also lowers the switching cost from
one supplier to another.

1- Porto said is among the most promising investment cities, but at the same time it is considered a mid- Low
attractive project to the demographic segments living in Port Said with their limited and traditional concepts
of housing and living. Such factor considers the concentration on the project “Actual buyers from the Port
Said “will be relatively low at the beginning due to pricing laws and the new innovation of housing which
Bargaining power may increase the power of customers.
of buyers 2- Also, the availability of alternatives to the consumer purchasing a unit with high to mid pricing rather than High
renting apartment for 3 nights with lower prices makes the customer has more power while purchasing unit or
(High) choosing to spend his vacation on Porto Said’s hospitality packages.
High
3- the high knowledge the customer is earning from the large number of built-in promotions for variety of
compounds and resorts and the availability of price list knowledge and performances put AMER’s project
under consumer’s high power.
1- A high production-profitability, or economy of scale, is an entry barrier that can lower the threat of entry; High
capability of Mass customization in AMER’s project (Porto-Said resort), suggests a production system that
has the stability of quantity (“mass”) and the flexibility of custom design (“customization”) giving more
emphasis on customer-orientation
High
Threat of 2- High initial capital investment to inter into industry required; AMER’s Porto said project already poses a
new entrants large capital investment in offering its services with the highest level of luxury and sophistication.

3- Product/Service high differentiation; Porto Said Resort offers very distinct and varied purchasing of units
such as fully finished with price of subtract per meter for units in the most luxurious tourist sites and High
destination with facilitation in installments and down payments

(LOW) 4- High switching cost such as using Convenience lower the threat of new competitors; AMER’s large range
of fully-fledged family-mix use residential city, many basic services and wonderful features keep their High
customer attracted and increase the value of switching to another organization.

5- The difficulty to get governmental authorization to enter in Housing development industry High

6- Using Patency “unique”; AMER’s latest Updating legacy apps and moving to the CLOUD, RPA, and E-
Payment for time-consuming. Global Brands Group, market leaders in the Digital Transformation
industry, partnered with AMER GROUP to design SAP on Azure providing uninterrupted services to its High
customers.

1- Porto Said resort, cultural and architectural leap, on the Mediterranean coast, to be a turning point, towards Low
modernity, unprecedented tourist and entertainment services, and a magnet for the entire area surrounding
Port Said. Such features make it harder for customers in this area to find substitutes with same performance
Threat of and lower prices.
Substitutes
2- Many low-mid class customers prefer when in vacations to rent a small apartment from an individual Low
owner rather than resorts with higher prices, but with Porto said services, the willingness to rent from
individuals with no services and safety provided is very low and the customers considered loyal to AMER’s
(LOW) projects for many years which increases also the switching cost of purchasers.
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2.4 VRIN Resource and Capability Assessment “Internal”:

Physical resources  Amer group, a leading Real-Estate Developer, offering mixed-use, family-oriented destinations.
AMER has diversified businesses in the primary and secondary homes market, as well as hotels,
shopping malls and restaurants
- 10,000 units delivered
- 5 shopping malls
- 10 All Year-Round Destinations
- 10 million M² Land Bank
 Porto Said spans over 100 acres/feddan with:
1- 5-star Hotel: 450 rooms, with its all-necessary hospitality services
2- Hotel High Street with Beach view Apartments (Unit A, B, C, D, E, F) and (P1, P2,..P7)
3- A walk with a length of 1200 m, which includes the finest international cafes and restaurants that serve a
range of delicious international food and drinks.
4- Private Beach, shopping mall, Theme club and sports club, Medical Centre Hospital, Mosque,
Cinemas, and offices
5- Hyper Market with an area of about 5.974 square meters, located only 10 minutes from Port Said centre.
Tangible

6- International School NIS

7- 3,500 Residential Units “Apartments, villas, penthouses”
 Strong financial backing from the new projects revenues and profits comparing to 2020
 Promising profit growth figures for Q1 2021 – strong 237.4 Revenue Growth (%) – revenue 1.02B –
Gross Profit 552.01 – operating income 427.81 – Net income 105.84
Financial resources  Cash From Operating Activities 320.04, Cash from Investing Activities -25.06
 Porto Said Revenues: achieved 40 percent (2.8) billion pounds in sales out of a total target sale of 7
billion pounds.
 Service Technology used: Partnership between Orange & AMER for non-cash
payment &collection services through Orange Cash supporting the digital
transformation to create a cashless society.
Technological
resources
 Systems-Based: AMER’s well-known for its planning sectors and civil contracting and coordination
Organizational resources  Amer Group moved to Microsoft Azure, CLOUD, SAP solution, RPA bolstered by the exceptional
uptime and reliability of Azure—laying strong foundations for the company’s future business
acceleration
Human assets and  Lack of employees training sessions and innovation and need to be more focused on
intellectual property  Large No. Of un-experienced leaders and employees working in Porto’s group which reflects
organization’s image and minimum invest in their professional development.
 Low wages and no days off for many workers.
 Qualified managers and owners with many years’ experience in industry
 By mentoring employees find new ways to approach business and deliver results. In a dynamic and
continuously changing business world, it is no doubt that the human capital and not the fixed or tangible
assets that differentiate an organization from its competitors
 Amer Group has carried out many huge tourism projects in the most important Egyptian tourist cities and
Intangible

Brand image and secondary homes outside Egypt internationally which gives a good brand image.
reputation  One of must-change customer point of view on AMER is the late deliveries of units and not completed
on time as well as the quality of interiors and finishing inside customer’s units and apartments 3(for
Porto Said Finishing Ultra Deluxe is a higher, luxurious finish than the Super Lux finishing and with
international materials that will be attached to the contract
 Promising change forecasted to be in Porto Said to enhance brand image.
 Porto Said resort make use of extensive network of suppliers and chooses
Relationships backward integration to lower the power of supplier on it or demanding high prices.
Networks include furniture, fixtures, household goods, foodstuff, marketing
companies, interior designers, property maintaince, and landscape suppliers,
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 Using incentives by giving relative commission on each deal done by the real-
Organizational culture
estate agents as promoting.
and incentives
 Amer group emphasizes sharia'a compliance in the operations of its businesses. In
particular, the group intends to continue its practice of not serving alcohol or
permitting gambling facilities, bars, pubs, or discotheques in its developments
 This is a conducive environment that attracts customers who seek hotels,
entertainment and dining options that respect their own values and culture in
markets.
 Strengths: Weaknesses:
S1- AMER group business expansion both locally and W1- Conflicts arisen among Amer group and its
10 internationally MENA region & development projects in subsidiaries in MENA region and the continuous court
Primary/Second home markets. lawsuits cases.

S2- Creating paths to invest in differential types of S2- The reputation of the group among the customers
business to increase group’s investment performance by and real-estate sector of the deceleration in projects
not targeting specific segment & achieving diversification. deliveries and completion issues.

S3- Builds up recurring revenues from its commercial, S3- Labor problems and the low-wages and vacations
residential, healthcare, touristic, and educational projects. issues among the company’s employees which results in
the unprofessional workers in Porto’s group that
S4- Focusing on developing and constructing in less- reflects the brand image of Amer
concentrated areas of Egypt to increase tourism activities
in such hidden touristic places. S4- Quality issues within its old projects, commercial
and residential apartments which makes customers re
S5- Supporting the digital transformation in transactions think about purchasing AMER’s high-end residential
activities to create Cash-Less Society. units.

S6- Promising change adopted in production/service

techniques that is largely noticed in the backup of the
company’s revenues for Q12021 and
Land-Acquisition to enhance Brand image.

S7- Amer group emphasizes sharia'a compliance in the

operations of its businesses creating conducive
environment that attracts customers who seek hotels,
entertainment and dining options that respect their own
values and culture in markets

Opportunities: Threats:

O1- Increasing opportunity for AMER’s T1- Continuity of the legal

group projects to succeed in Real-estate challenges threaten the work of real estate sector “Law
sector and return back its great position as 5 for 2021: changes in some provisions of real estate
result of Government regulations” that transaction Tax: 2.5%”
require new licensing applications and
specific contracts from the new
construction laws for any organization
involved.
T2 - Determination and limitation
O2- The good political situation in Egypt of number of floors governmental policy, significant
and the numerous agreements with the increase in unit prices during the next period as well as
MENA regions and global contracts along the closure of some areas and band construction on it.
“Suez Canal” for facilitating exporting can
support the international relations for T3- Grand Ethiopian Renaissance Dam conflicts
AMER’s group expansion of reginal resorts. threatening the safety and stability of Egypt affecting
the public relations relative to AMER’s project outside.
O3- The decrease in un-employment rate as
well as the large economic growth T4- Global Growth projected 6% in 2021, Moderating
“Increase in GDP” in the region after the to 4.4% in 2022 due to the pandemic instability and not
reducing of Pandemic COVID-19 giving Vaccine guide awareness for taking it in MENA
regions.
Q4- increase of about 1.8 percent in
Households resulting in increase in demand T5- A newly establish of any new competitors’ entrant
for Real-Estate sector (AMER targets family the market will be strong, competitive to Amer.
mix-use projects)

Q5- Law of Protection of Competition and

Prohibition of Monopolistic Practices in
Egypt allowing chances to other lower
market share organization involve in
constructing the new cities with less price
regulations.
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Task 4: Develop Two Marketing OBJECTIVES

Objective 1: The management team of AMER’s group attempts to

achieve “3.5 billion” pounds of sales of Porto-Said of total target of 7
billion at the end of the fourth quarter of 2021.

Objective 2: The management team with compliance with the

marketing team of AMER’s Holding plans to complete and deliver 30%
of Porto-Elminya commercial units “1200 of total 3800” over the next
12 months.

Resources
(capmas.gov.eg)
‫الجهاز المركزي للتعبئة العامة واإلحصاء‬
https://www.cia.gov/the-world-factbook/
https://amer-group.com
https://amer-group.com/wp-content/uploads/2020/07/Brochure-1.pdf
https://amer-group.com/wp-content/uploads/2020/07/Brochure-1.pdf
https://www.investing.com/equities/amer-group-holding-financial-summary
https://www.reuters.com/companies/AMER.CA
https://www.zawya.com/mena/en/stock/1008648/amer-group-holding-co-sae/AMER.CA/
https://realestate.eg/en/developers/amer-group
https://www.egypttoday.com/Article/3/99124/Amer-Group-records-profits-of-LE-1-38B-in-2020
https://www.cio.com/article/3611861/cloud-rpa-e-payments-transform-legacy-operations-at-amer-
group.html
https://gbrands.com/an-optimal-digital-transformation-experience
https://www.elmogaz.com/591468
https://enterprise.press/wp-content/uploads/2020/09/Egypt_Real_Estate_Report_-_Q3_.pdf
https://openknowledge.worldbank.org/bitstream/handle/10986/32812/Understanding-Poverty-and-
Inequality-in-Egypt.pdf?sequence=1&isAllowed=y#:~:text=In%20Egypt%2C%20a%20notable
%20share,income%20on%20education%20and%20health.
‫جريدة إسكان مصر | التفاصيل الكاملة لمشروع بورتو جروب بالمنيا الجديدة‬ (iskanmisr.com)