Omar Afendi Marketing Project.

New Brand and Repositioning Orsodi Stores

Presented by:

Mahmoud Amer

Mohamed adel

Omar magdy

Under supervision of:

DR.Mohamed abd elhamied

Company descriptionOmar effendi firstly was constructed and

named after “orosdi back“ who was a Hungarian army officer at abed el Aziz street at 1856.

By the year 1900 it had 60 branches around Egypt.

Then it was sold to an Egyptian Jewish who turned its name Omar effendi.

Then it was nationalized at 1957 with 69 branch.

It was one of the first brands in Egypt and middle east, then it passed through a long period of decline.

Omar effendi have been privatized at February 2007 by Saudi company “el-Nawal” for 500 million Egyptian pound without out giving the authority to the new owner to replace the actual employee or selling Cairo or Alexandria branches(general forces).

Now Omar effendi 83 branch and 68 store all over Egypt (fixed resources).

A new logo was designed by Design Bridge & we should mention that this company is responsible for branding and logos of retail and consumer giants such as Marks & Spencer, Lipton, KFC, Nescafe and the Champions league.

Strategic focus and plane

A.MissionI. Is to produce the best product with a superior

service to our consumer.II. Build a powerful reputation and strong trust to our

brand to be one of most valuable brands.III. To be one of the most valuable brands in Egypt.

B. Goalsi. Supply our customer with high quality product improve

the present image in the Egyptian market by representing new brands.

ii. More share in Egyptian home goods market reach 10% by the year 2010.

iii. A large increase in our brand value to be one of the top brands by the year 2013.

iv. Retrain employee to enhance employee customer communication & make greater opportunities to compare product with others.

v. To be more effective than competitors in creating and delivering service and communicating customer.

SMART

Financial goalsObtain real growth in earnings per share of 10% per year

over time. Obtain return on equity of at least 20%.Have public stock offering by the year 2010.

Situational Analysis (SWOT)Internal factors

Strengths Weakness

Management Experienced management

Distracted in branches improvement(83 branch & 69 store)

Offerings Wide variety of products

Low quality, high price, many competitors with higher quality & lower price

Marketing Widely distributed in most of Egypt main cities – Channels

This massive distributed distract the management from the optimum marketing plans.

Internal factor Strengths Weakness

Personnel High number of employee(about 5000)

Not well trained employees – lack of customer service experience.

Finance Huge resources and fixed capital

Sharply declines in sales revenue

Production Large variety of different types of products

Suppliers provide products from moderate to poor quality which put our institute in hard position against competitors – no supply chain.

R&D Poor efforts for studying market and consumer needs developing product & service

SWOT Analysis ContinuesExternal factors

Opportunities Threats

Consumer/Social Wide market with variable segments

The variety of exposure may distract the demand

Competitive High distribution, Distinctive name

Other large brands , Large malls, Small retailers with lower prices

Technology New logos, New out look

Old fashion style of database & selling management with high tech. competitors

Legal/Regularity Inability of replacing employment (5000employee)

item strengths weakness

Opportunities -opened market with variety of segments which could be covered by the variety of our products.-The high distribution of our branches will help greatly in product delivery.

-management could avoid distraction between branches by adopting new marketing plane with proper segmentation.-training employment will increase their performance.-get benefit of product variation by increasing its quality

item strengths weakness

Threats -avoid distraction of consumer between products by highly trained sales management.-differentiate from competitors with our variety of products and presence of new products.

-low quality, high price products and non trained employment will give our competitors a great advantage on us.

Industry Analysis: Trends of Home Goods Selling

Mainly the Egyptian consumption increased due to the out standing increase in population which produces a wide marketing field for our products.

From recent surveys Egypt population at this year is about 78 million and it is expected to rise to 90 million by the year 2020.

This population mainly concentrated in Cairo (10.73% about 7 million and 787 thousand) , Giza (8.1%),Alexandria (5%) and all of this areas are covered with a network of branches.

So from the previous survey we can conclude that consumption will grow in high rate especially in high standard areas in large cities.

EgyptPopulation (thousands)Medium variant1950-2050

Year Population 1950 21 514 1955 24 378 1960 27 798 1965 31 573 1970 35 575 1975 39 599 1980 44 433 1985 50 655 1990 57 785 1995 63 858 2000 70 174 2005 77 154 2010 84 474 2015 91 778 2020 98 638 2025 104 970 2030 110 907 2035 116 503 2040 121 619 2045 126 004 2050 129 533

Source: United Nationshttp://esa.un.org/unpp/p2k0data.asp

Competitors in house goods retailing marketBriefly we can divide our competitors into two main segments.

Generally we can say that there is no large specialist brand competition in market but despite of that we don’t have a large market share.

Competitors

Large Malls Small retailers with low prices

Customer AnalysisAt first we had a problem to make the best use of this large

network of branches.So we worked in three levels in segmentation process.The first level was geographic segmentation

(domestic) Geographic segmentationRest of regions

Regions which attract tourism

Regions which don’t attract tourism

Cairo ,Giza & Alex.

And that answer the question where are we going to sell our product?

The second level was the demographic segmentation which correspond to the geographic segmentation.

we will depend on standards of living in our classification. FirstlyCairo

Alexandria

Giza

In those regions we have a variety of living standards according to the site of branch.

So we adopted techniques to over come this point as we are going to discuss later in targeting.

And we are going to segment this region alone.

The standard of living in these regions varies from low to moderate.

Secondly Regions Regions which attract tourism

Regions which don’t attract

tourism

And the last level was the behavioural segmentation of regions which attract tourists.

As Matrouh & Agmy branches

As Fayom & Aswan branches

Behavioural segment according to occasion

Summer only All over the year

And that answer the question when do they want to buy?

Product Market FocusMarketing and product objectivesTo produce product that covers the needs of each area in

which we are placed.To achieve the three angles of consumer satisfaction triangle.

Product

Human factor Convenience

Human Resource Management

It is real crisis in the chain as they do not have strong HR and causes is decline in all area of professionalism.

It is real crisis in the chain as they do not have strong HR and causes is decline in all area of professionalism

Our Consultants team will create ISA very good structures and will cover also many job work profiles, job analysis, and job description for all staff.

In Addition cover the previous sides in Human Resource Management.

Target MarketsAt first we will define our marketing coverage strategy we will

follow differentiated marketing by giving a specific marketing mix to each segment.

And we are going to follow our segmentation by using selective specialization technique.

M1 M2 M3

P1

P2

P3

Firstly in Cairo, Giza, & Alexandriao In areas high standard of living we will change most of product

brands that we offer and we will change our suppliers with others that can provide us with new brands that match the life style of this areas.

oEXAMPLE: Nike and Adidas in textile, Toshiba, Sony and LG in electronics.

oAnd we are going to give paying facilities for high price goods specially electronics and furniture.

o But we were faced by a problem in the branches which is situated near the large malls which contain most of the brands but the solution was simple it was the full study of this malls and careful choose of new brands which are absent from this malls and we could even bring new unknown brands and open a new market.

o Then in areas of low standard of living we will be faced by a giant competitor which called Chinese product with low price and high distribution among retailers.

o So in response to this situation we will get to these goods suppliers and we will make better agreement with them (we will be key accounts for them) and we will get these goods at lower price.

oDue to the lower quality of these products we will form a committee to insure the quality of these products and we will limit some what the after selling service and it will include only certain products.

Secondly In RegionsA. Regions which don’t attract tourism It was obvious from the previous points that we will replace

most of our products so a question will remain where these goods are going to go?

Well this product will be offered in this regions with suitable offers and low prices.

B. Regions which attract tourism As our behavioral segmentation based on occasion our

targeting will be responsive to it.

Summer Active RegionsAs Agami and Matrouh and other sea side branches.We will focus mainly on swim wear and other swimming

equipment beside some other basic goods.All Year Long Active RegionsWe will focus on Egyptian style gifts with a competitive price

beside other basic goods. And by the end of this part we answered the question

How do they want to buy?

Point of DifferenceDifferentiation for our project is a need as in a large market

with high competition we have to compete differently neither we will fall over the market edge.

Our differentiation will depend on 5 points:

1. ProductWe produce a variety of products under one floor with, various

quality prices and designs which fit all types of consumer.

2. Service Superior quality assurance and after selling service.3. Personal Highly trained staff from with excellent communication skills from

cleaning workers to head manager.4. Channel Wide coverage with a connected group of branches which cover

most of Egypt regions.5. Image We will talk about it in detail in positioning. And here we answer Why do they want to buy?

Positioning The new logo was designed by Design Bridge, an international

branding agency who match the creative, passionate and independent image that Omar Effendi had decided to adopt.

And also we must mention the slogan which gives a good image about the variety of the product.

Marketing ProgramProduct StrategyAt first we should classify our products. Most of our products are consumer products and lies between two categories shopping products and specialty products.

And that answer the question

what do they want to buy?

In our project we tend to achieve the 4ps mix to be from top brands in Egypt.

So in response to that we pay a large attention to improve our service by training employee and by direct firm supervision.

Form a department for product quality insurance.

Product Place

Price Promotion

Promotion StrategyMainly we will depend on advertising in our promotion

strategy.At first we designed an advertisement in which we tried to

achieve the points: 1. Interest2. Information3. Trust4. Persuasion And we are going to use this printed advertisement

into 3 main ways:

1. We will use it as a printed advertisement in news papers and it will have a second role we will use it also as coupon for a discount (10% for all of our products) and that will provide wide distribution for our campaign and it will give a good motive for consumer to read our advertisement.

2. We are going to close the stores for about 2 months at least for improvements and we cover all our stores with this printed advertisement then we will reopen in a serial manner one store in each city to make booming and to decrease error.

3. We will also use it as billboard.

Secondly we will give attention to internal advertising by:

1. Improving the method of exposure of products by using shelves instead of stands.

2. Improving the way of packing by using modern style bags as image below.

Price StrategyAs we have got an aim complex in both market leadership

and quality leadership we adopted techniques to fit this mix.So we have to get a long with internal and external factors .

1. Internal factorsI. Market objectives: Both market and quality

leadership.

2- Marketing mix:

a. Product feature: In areas of high living standard it will be of superior quality and significant brands but in areas of lower standard the quality will be reduced which will influence the cost.

b. Advertisement: Will be fixed in all regions

c. Product distribution: Large branch network which needs high employment which make more costs.

d. Product delivery: We are going to depend on our network of branches in product delivery.

3- Costs:Production: Costs depend on suppliers.Distribution: we depend on the large distribution of our

branches.Sales: May raise costs due to high employment.

2- External factorsa. Nature of market demands:it was obvious from segmentation that we produce variety of

product to fit consumption according to region living standard.

b- Competition:oAs we explained before we will be able to expose our

product with prices lower than competitors with the quality demanded by the clients and in case higher prices products (new brands) we will be unique and differentiated in its production.

C- Other:oBecause Egyptians are not adapted for using e-marketing

we had to delay this service till later improvement.

Pricing StrategyAs we are going to penetrate market (in our new dressing) we

will use market penetration pricing strategy.As we are going to start with low prices and heavy advertising

and promotion.As we tend to penetrate market quickly and gain large market

share.

DistributionBCG MATRIX-GROWTH Share

Star ?ProblemChildren

Cash Cow Dog(Omar effendi)

Mar

ket

grow

th ra

te High

Low

High Low

Relative market share

Competitive Advantage

Maintain specialty Outstanding success

Hope for market growth

(Omar effendi)

Maintain cost advantage

Deg

ree

of

diffe

rent

ion

High

low

High Low

Relative cost

Tendency to buy Promotion & sales ,distribution are key

(Omar effendi)You have it made

Focus differentiation required Sales, advertising & branding are key

Omar effendi : zero level channel ( direct marketing)

Unique Undifferentiated

Wel

l kno

wnUn

kno

wnCus

tom

er k

now

ledg

e of

com

pany

Product Characterise