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Table of Contents

I. ASSUMPTIONS FOR THE PROFILE AND MARKETING PLAN...................................... 3 II. COMPANY PROFILE KIRIAZI GROUP ........................................................................... 3 1. 2. 3. 4. HISTORY AND OVERVIEW .............................................................................................3 COMPANY FACILITIES AND PRODUCTS....................................................................3 CUSTOMERS........................................................................................................................ 3 COMPETITORS ...................................................................................................................4 EXECUTIVE SUMMARY ...................................................................................................5 SITUATION ANALYSIS AND MARKET SUMMARY................................................... 5 SITUATION ..................................................................................................................... 5 Company Analysis ....................................................................................................... 5 Product Offering.......................................................................................................... 5 Competitor Analysis .................................................................................................... 5 MARKET.......................................................................................................................... 6 Market Attractiveness (Local Competitors): .............................................................. 6 Business Strength (Local Competitors): ..................................................................... 6 Market needs: .............................................................................................................. 6 3. SWOT ANALYSIS................................................................................................................ 6 STRENGTHS ................................................................................................................... 7 WEAKNESSES ................................................................................................................ 7 OPPORTUNITIES ........................................................................................................... 7 THREATS......................................................................................................................... 7 4. CUSTOMER: SEGMENTATION, TARGETING AND POSITIONING....................... 7 SEGMENTATION ........................................................................................................... 7 TARGETING ................................................................................................................... 8 POSITIONING................................................................................................................. 8 5. MARKETING STRATEGY................................................................................................. 8 PRODUCT........................................................................................................................ 8 PRICE ............................................................................................................................... 8 PLACE.............................................................................................................................. 8 PROMOTION AND ADVERTISING ............................................................................. 9 6. INPUT OF OTHER DIVISIONS IN MONITORING THE MARKETING STRATEGY ........................................................................................................................... 9

III. MARKETING PLAN - Campaign Title: Quality.. A good reason to come back ...............5 1. 2.

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SHORT TERM/LONG TERM IMACT..............................................................................9 EXPENSES ....................................................................................................................... 9 MARKETING CAMPAIGN ............................................................................................ 9 TARGET CUSTOMERS ............................................................................................... 10 SALES............................................................................................................................. 10 ALTERNATIVE MARKETING STRATEGY ................................................................10

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I.

ASSUMPTIONS FOR THE PROFILE AND MARKETING PLAN


The company profile briefly mentions customers and competitors but they are discussed in the plan The companys performance declined in the past 3 years only The installed quality assurance system will improve the products reliability and customer service greatly In competitors, we focus in this stage on local competitors only (i.e:Market share = 100% for local competitors)

II.

COMPANY PROFILE KIRIAZI GROUP

1. HISTORY AND OVERVIEW KIRIAZI Group started its activity in 1985, established the by Mr. Kiriaco Kiriazi who established the first factory located in 10th of Ramadan city producing domestic Refrigerators. KIRIAZI to be one of the the most highlighted groups producing home appliances in Egypt. The Company operates with a total of 2000 employee and owns 4 plants. 2. COMPANY FACILITIES AND PRODUCTS With headquarters located in 10th of Ramadan, the company owns an administrative building and 4 plants for producing refrigerators, freezers, washing machines, gas heaters and ovens. The plants development carried on as follows (which cover a total area of 300,000 m2): In 1995, added a new factory in El-Obour city where washing machines and ovens are produced in different models. In 1999, added the third factory in El-Obour city where Refrigerators (new models) and Vertical Freezers are produced in different models. In 2005, added a new factory in El-Obour city where Domestic Electric & Gas water heaters are produced in different models. Our products are exported to many Arab countries. 3. CUSTOMERS KIRIAZI Group has enjoyed a constant growth for over 20 years. For the past 3 years, the company has been highly concerned with developing its level of quality and its customer service and After Sales benefits to cope with our customers expectations and needs who are considered our first priority.

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4. COMPETITORS KIRIAZI Group has maintained a highlighted position among its local and global competitors in the Egyptian market by continuous monitoring of its position and performance relative to its market competitors. The company exerts its outmost effort to maintain its competitive quality and position in the market.

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III.

MARKETING PLAN - Campaign Title: Quality.. A good reason to come back

1. EXECUTIVE SUMMARY The company has been facing a problem with its sales in the past three years. A marketing research has been carried and the majority of the complaints and reasons of customer preference of other products were: The repetitive malfunctioning of the products: This illustrates the poor quality of products relative to its substitutes Not responding to customer complaints, long time to repair the products, etc.: Poor customer service. The following market plan aims at introducing an analysis and marketing mix that mainly targets the mentioned problems.

2. SITUATION ANALYSIS AND MARKET SUMMARY SITUATION Company Analysis Status: The Company suffers from a drop in sales, market share, share of growth due to the mentioned problems the company lost its image and the trust of its users in the last 3 years. Goals: 1. Maintain the product development strategy in order to regain/maintain our quality reputation 2. Turn from loss to profitability taking into account the cost effective means of marketing Focus: Regain our customers trust and attract new ones focusing on our target

Product Offering The company offers a variety of home appliances, listed below: Refrigerators Deep Freezers Ovens Gas Heaters Washing Machines

Competitor Analysis KIRIAZI focuses in this stage on local competitors Total market share of Local Competitors in the Egyptian Market (% of market share) : o Fresh Electric 10% o Al-Araby 30%

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o Electrostar10% o Olympic Group 15% o Universal Group 15% Global Competitors in the Egyptian Market (include but not limited to): o LG o Panasonic o Kenwood o Samsung

MARKET The market is highly competitive due to the presence of a big number of suppliers of home appliances. The price difference is not very wide but quality and performance vary. It is also technology oriented. Prices drop when a new technology appears. Home appliances are always demanded despite that the demand drops in times of political unrests in Egypt and the financial crisis. Market Attractiveness (Local Competitors): Size of market: Big (Advantage) Competition: High (Disadvantage) Growth Probability: Medium (Advantage) Profitability: Medium Product Consumption Frequency: Low

Business Strength (Local Competitors): Market share: Dropped from 25% to 20% (1/5 of our sales) Share of Growth: Negligible compared to previous years Product Quality: Poorer than competitors, but new system regained the quality

Market needs: The consumer seeks satisfactory Value for Money This includes the following: Quality: The customer seeks a durable product that wouldnt encounter frequent failures. Functionality: The product should provide a set of options and functions that would make the product as practical as possible. After Sales Service: Customer service should be satisfying so as to help in establishing the customer loyalty. Customer complaints should be handled as fast as possible adequately so that they would trust our products and repeat their purchase when it comes to re-buying appliances (Trust the brand).

3. SWOT ANALYSIS The internal strengths and weaknesses and the external threats and opportunities

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STRENGTHS 1. Local brand: has a competitive price due to cutting off the export cost of the global brands 2. Local brand: faster maintenance better Customer Service 3. Highly qualified technicians for maintenance Good customer service 4. Capable quality assurance system Good quality products

WEAKNESSES 1. The poor trust in the companys quality 2. The limited financial abilities of the company 3. Focusing on quality makes diversification of products (to meet all needs) more difficult

OPPORTUNITIES 1. The postponed weddings and investment in homes that were postponed last year will be most probably scheduled this year 2. Companies who will want to carry on with their investments in a large quantity will want to invest in relatively lower price products.

THREATS 1. 2. 3. 4. 5. Political unrests (postpone investments/marriages/buying) Financial Crisis Customers not believing the campaign Customers preference to pay more for an international brand Fast developing technology

4. CUSTOMER: SEGMENTATION, TARGETING AND POSITIONING This section identifies the group of users who have similar characteristics and share the same need and groups of people whose needs are matched with the benefits offered by the company products. Also, it highlights the targeted customers who would help the company to gain back a good reputation, that would in return increase the companys sales. SEGMENTATION Demographic Segmentation: According to Life Stage: Couples who are planning for marriage or moving to new homes and need to replace their old home appliances with affordable ones. Sub Segment: Women main initiator/influencer (and probably decider) in the buying process.

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According to Social Class: Medium class: They can afford the product, internet users.

TARGETING Couples of middle class planning to get married Sub target: Women Old customers who suffered from the bad quality will help us regain the trust and attract others (word of mouth) (Expand number of users)

POSITIONING The company will re-position itself to be the fastest to handle customer complaints and provide competitive After Sales services.

5. MARKETING STRATEGY PRODUCT Packaging: protective but simple and from recycled material Refrigerators, ovens, freezers and TVs will come in different capacities and colors to suit different needs and tastes.

PRICE Prices of products will not drop than the price of our old products. Instead, we will offer more services for the same price.

PLACE Physical Stores: The company wont have any stores dedicated for its products only so as to save retailer costs in order to support the marketing campaign Products will be available at home appliances department stores: Carrefour BTECH New distribution channel: Online Store: The idea itself is not common in Egypt. This can be a competitive advantage if implemented correctly. This will reduce costs because the company wont need to spend as much on retailers. The company should provide an appealing delivery period (within 48 hours for example), providing the option of having a faster delivery with extra fees. Note: This will require the company to outsource delivery solutions.

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PROMOTION AND ADVERTISING Promotion To promote for quality and customer services: 1. Quality.. A good reason to come back: Launching a campaign that offers free maintenance for 3 months for customers who purchased our products in the past 18 months in case of fail to fix the product will be replaced. (Retain our old customers and increase customers by improving reputation) 2. Extend warranty: counting on the new quality assurance system, malfunctioning decrease. 3. Handling complaints: Complains picked in more than 2 days and maintenances exceeding 10 days will enjoy a free of charge maintenance. To promote for sales: 1. Provide Wish List section on the website where friends/relatives can buy for the married couple 2. Encourage customers to make online orders by offering 5% discount extra when ordering online. (Online shopping will be a competitive advantage for the company if it was well established) 3. Newly Weds Package discount: Buy refrigerator + freezer + washing machine get a free oven and gas heater encouraging cross selling

Advertising To minimize advertising costs: 1. Web advertising in social networking especially websites targeting women (affects: initiator/influencer/decider) 2. Banners in the department stores most visited by the customers aiming to buy home appliances supporting the Quality.. A good reason to come back campaign. 6. INPUT OF OTHER DIVISIONS IN MONITORING THE MARKETING STRATEGY Sales: Monitoring performance through sales Accounting and Finance: Monitoring performance through different analysis.

7. SHORT TERM/LONG TERM IMACT Expenses Marketing Campaign Website: 10,000 L.E

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Advertising: 100,000 L.E Repair campaign: Estimated units = 3000 Average cost of repair = 500 L.E Total = 3000*500 = 1,500,000 L.E Package Offer (per year): 400,000 Total budget = 10000+100000+1500000+400000=2,100,000 L.E

Target Customers Having their appliances fixed/replaced for free they will gain their trust in our products grab other customers with word of mouth increase sales Stable, then increase by time increase market share increase share of growth.

Sales

8. ALTERNATIVE MARKETING STRATEGY In case of failure of the previously discussed strategy the company can resort to rebranding (or creating a sub-brand), the company will spend more money on brand awareness and building a reputation from the beginning. This will require a bigger advertising campaign and more promotions in order to achieve the required level of brand awareness.

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