Nile Company agricultural industrialization (AGA)

Marketing Plan for AGA Nectar Juice Marketing Plan for AGA Nectar Juice

Prepared for, Dr. Mohamed Sobhy Cairo University, MBA, Group A, Marketing

LETTER OF TRANSMITTAL Dear Sir,

This is our Marketing plan for AGA Juice product, in the time of preparing this plan we had to face some problems in finding the right research tools to support our study, there were other difficulties about market statistics availability. We had to approach some contacts of real employees insiders and responsible managers at AGA to provide and release some real information which we used to base this paper on We have prepared this marketing plan on the basis of our own knowledge and also on the collected information from different sources, we tried hard to apply our marketing knowledge as much as we learn. If any type of mistake you notify please suggest us. Sincerely yours, 1. Sameh Saleh Hashem

2. Ahmed Hassanein Salem 3.Andrew Amir 4.Hoda Fathy 5.Mohamed Farag 6.Osama Ahmad Rashad

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Marketing Plan for AGA Nectar Juice Table of content

Contents

Page

1.Company Profile

3

2. Executive Summary

4

3. Products overview

5

4. company Analysis

8

5. Situation analysis

9

6. Competitor Analysis:

9

7. SWOT Analysis

11

8. Positioning

14

9. Market Segmentation:

15

10. Current distribution Channels

17

11.Customers Expectations and behavior factors

20

12. Price overview and value added.

21

13. Strategic Marketing Analysis

22

14. Marketing strategy

23

15. Marketing objectives

23

16. Marketing mix

24

16.1 Product strategy

24

16.2 Promotion and advertising Strategy

24

16.3 Distribution and Sales Strategy

25

16.4 Pricing strategy

25

17. Other Management practices that is highly recommended from our side 18.Reference and Notes

25

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Marketing Plan for AGA Nectar Juice

AGA Nectar Juice “We make your life Delicious” 1- Company Profile Summary: Nile Company agricultural industrialization (AGA) Was founded by MR/ Eissa Ayouti and MR/ El said Ayouti since more than 30 years and the name was eventually named sos reference to the name of the city that the owners belong to, Business center of AGA is in Dakahlia This company is a limited partnership entity where its shares are only

published internally

and not subject for public offering and not listed in Egyptian stock exchange Market shares are distributed and divided into only family members, company is one of 12 companies Group owned by Nile Bank (previously now United Bank) which was founded by Mr. / Essa Ayouti, Mr. / Mr Ayouti . . Company Location is in Cairo at 35 Ramses Street - Floor 10 and Factory (Manufacturing Plant) is in AGA Center Area - Dakahlia on the Agricultural Road. AGA has Eight branches other than the head office and the factory, and these eight branches located in: Alexandria, Sharm El Sheikh, Hurghada, Luxor, Marsa Matrouh, Sohag, Aswan, Suez, AGA has HACCP & ISO9001-2000 certificates.

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Marketing Plan for AGA Nectar Juice

2- Executive Summary A concrete marketing plan is one of the major tools of a marketer to be successful in his business. As a student of Marketing we were assigned to make a marketing plan. For this purpose we selected only one product Line from AGA Products which is AGA Juice as our product marketing plan will only be directed to this product line Today AGA has grown to become an independent Juice processor with a partial steps towards being a global supplier, with the strong commitment to outstanding quality and great concern for food safety With the Fact that AGA utilizes innovative, state-of-the-art technologies and precise quality controls to provide customers with 100% all-natural fruit products to meet the needs of diverse consumer demands. AGA continues to invest in additional fruit sources, expansion of storage capacity, and improving the quality and efficiency of its processing facilities to better serve its customers, suppliers and the ingredient industry. And to achieve the desired target of being an industry leader with a strong presence in region, AGA main objective is to avoid Missing number of potentially profitable opportunities. This Market Plan presented by the Group Members will allow AGA to well survive and compete in the current destructive business environment and current financial crisis that makes it mandatory to AGA to follow our recommended agreed context of succeeding management activities described in this Market Plan .

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Marketing Plan for AGA Nectar Juice

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Marketing Plan for AGA Nectar Juice

3- Products overview Product overview includes categories of products and raw-materials TARGET PRODUCT 3.1 AGA Natural Juices: All varieties of Natural fruits like (Mango, Guava, Apple, Cocktail, Grape, Orange, and Peach) packed in different sizes (cans 240ml, cans 330ml, Tetra Pak 200ml, Glass bottles 1 Liter, Glass bottles 250 ml, Pouch 200ml are produced

Other products offered by AGA 3.2. AGA Frozen Vegetables: AGA processes and freezes with the latest international technology and standard measurement, free from any preservation or chemical substances. AGA Products are available in different varieties and pack sizes such as (Artichokes, Okra, Peas, Molokhia, Broad Beans, Spinach, Colcassi, Green Beans, Vine Leaves, and Strawberry)

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Marketing Plan for AGA Nectar Juice

3.3. AGA Jams Jams are produced with high quality natural fruits, including (Apricot, Strawberry, Mixed Fruits, Orange, Fig) available in different pack sizes (Plastic portions 30 gm (hotels, resorts, Schools), Glass jars 380 gm, Economy packs up to 3kg.

3.4 .AGA Premium Pickles All varieties of

natural vegetables that includes ( Onion, Cucumber, Lemon in

different kinds, Olives in different kinds, Vine leaves, Chili, Cocktail) Available in different pack sizes (Glass jar 750 gm ,Economy packs up to 9 kg)

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Marketing Plan for AGA Nectar Juice

3.5. AGA Tomato Paste AGA Tomato paste from the latest products made from the finest fruits of tomato that carefully selected are also Available in glass jars 380 gm, 320 gm.

4- The company Analysis: Company Market operation Main axis are as following: 1. first: The domestic Market: The company generally covers the governorates of Egypt from Delta up to Upper Egypt by at least 80% of its production of all products through wholesalers and retailers, its branches are all over the country, as well as through sales representatives of companies respective vehicles which are targeting the majority of Supermarkets, hypermarkets, hotels, casinos and cafes available. 2. second: the Global market: Most Product Lines are being oversees exported to Arab and European countries and US, such as the State of Saudi Arabia, Kuwait, UAE, Qatar, Morocco, Jordan, Libya, Palestine, Algeria, America, Italy, England, France, Greece, Germany , Australia, Sweden, Japan . Respective needs for these countries are covered all as requested in full and in the prescribed deadlines. All packaging materials for all products are being imported from Saudi Arabia grantee top quality and purity of packaging materials and packaging,. 8|P age

Marketing Plan for AGA Nectar Juice

the company was awarded and certified of 5 certificates in ISO during the last 10 years and is using the latest global machinery and latest laboratories for quality control of the products to be producing a product of the highest quality possible to be consumed at domestic market and other region countries at the highest possible level Core advantage for AGA produced raw materials is All Materials are straightly packed right from company's farms and are free from any synthetic materials or preservatives added value to their products, but all are natural 100%

5- Situation analysis AGA business is not s a start-up business. The Fruit nectar juices have been well received and marketing is now critical to its continued success and future profitability. AGA offers a wide range of high quality of juice. The basic market need is high quality juices with flexibility of production for both the consumer and commercial market.

6- Competitor Analysis: There are many competitors Exist so far, Since AGA is the second oldest agricultural companies after Kaha Company for Food Industries,

The competitors are as following:  for frozen vegetables in general there are 5 big player as following Amricana, FarmFrits, Basma, Montana, Foddina and Givrex  For Pickles in general they are Amricana , Givrex and Olivia  For Jams we have Kahha, Vitrac, Al Rashidy El Mizan, and El Bawady  For Juices there are Giant Market players as Juhayna & Enjoy then comes other players as following Kahha, Vitrac, Yahoo, , and Faragello , Rani 9|P age

Marketing Plan for AGA Nectar Juice

 For Tomato paste there are Foodina, Amiricana, Hienz, Edfina, and Foodico.

And for Juice in specific 6.1 Competition summary for AGA Nectar Juice 6.2 Indirect Competitors Beverages and fruit industries, like- Pepsi, coca cola, etc.

6.3 Direct Competitors Juhaina, Enjoy, Lamar,Rani,AHA

AGA Nectar Competitors Strength Established brands: the competitors have established brand like Juhiana and Enjoy Product supply: the competitors product supply is very larger than our product. Price: since competitors provide different size, price cannot be compared Distribution Channels-- competitors have strong channel distribution channel, the consumer get it at every retail shop

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Marketing Plan for AGA Nectar Juice

7- SWOT Analysis The following SWOT analysis captures key strengths and weaknesses within the company and describes the threats facing by AGA for marketing Nectar Juice

Strengths:  AGA is the only company make natural nectar in can in 330 ml packaging which is considered one of its competitive advantage  AGA is performing its own bottling to their products and this gives a quite competitor advantage in cost control that is reflects positively on end user price  Wide variety of business portfolio & products  huge product line for multiple healthy products  Wide Spread in large number of countries all over the world  Company achieves Higher margin than industry due to production efficiencies, since they have their own farms to cultivate and grow its products through its farms therefore ensure quality  AGA Factor located in the same place of its Farm which for better time and transport saving and that ensures company more fresh products onsite

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Marketing Plan for AGA Nectar Juice

Weakness:  AGA lacks brand equity  Non specified marketing budget to develop brand awareness.  Price fluctuating as a natural for fruits which affects the profit margin and sales forecasting.  Lack of skilled functional & technical Workers at production  production Seasonality natural that impacts our factory plant capacity utilization  unclear positioning plans and low awareness of company brand  tough market

that include big players adopting many advertising

campaigns with a good positioning for of other competing products  poor inactive web site www.aga.com.eg and a quite absence for Media  Non existing of marketing department  Lack of marketing research done to enhance company product positioning.  No promotion plans are adopted targeting wholesale dealers or customer  absence of customer support center

and accordingly

any feedback

channel to voice customer views  an obsolete poor can design that was first introduced since 2002  insufficient training to sales agent and with unreasonable amount of vehicle that are required to transport and deliver final products

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Marketing Plan for AGA Nectar Juice

Opportunities:  Large pool of inexpensive labor cost, which is more convenient to labor intensive commodities industries like ours.  privileges given by Egyptian government pursuing the approach and preferences to better invest in land reclamation projects, increasing area available for agricultural output and so cattle breeding which will also reflect in some certain facilities that can be given to AGA  large increased population for current region which will definitely results in wide customer base

Threats:  Urban construction is taking over on the limited land suitable for agricultural production  With the volatile prices increase of many agricultural commodities, Egypt will face a severe competition for many key import commodities.  According to Central bank of Egypt annual inflation is reaching to 9.09% rate and this is leading to an increase in raw materials and may impact labor cost which will impact product price

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Marketing Plan for AGA Nectar Juice

8-Positioning  AGA produces a Juice Nectar, there are three categories of drinks with so many variants that all consumers, to varying degrees, they contain the natural juice or extract from fruit, vegetables or herbs. What the final product can be called is regulated by national and regional food legislation, but with some variation.  Juice - 100% fruit Juice contains only the natural ingredients contained in fruit and vegetables, i.e. fruit juice or fruit juice concentrate.  Nectar Within the beverage industry nectar is a fruit juice that is too thick to drink – for example, from apricots, peaches and pears. The juice, or rather the purée, must therefore be diluted with water and have sugar added to make it drinkable. The fruit juice content in nectar can vary between 25% and 99 %  Still drinks The next step on the scale for less juice content is still drinks, namely fruit drinks with less than 25 % of fruit content.

 AGA produces Nectar juice that helps to maintain good health, when time is short, which create a value in consumers mind about this product and motivate rheumy to buy frequently.

 AGA will position itself as: 1. Easy to reach. 2. High-quality producer. 3. Reliable

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Marketing Plan for AGA Nectar Juice

9- Market Segmentation: With a population of 87 million most of them located in Cairo, Egypt is the largest market in the Arab world. Population growth is at 2.0% which considered high compared to other developed countries. Nearly 45.0% of the population is under the age of 18, which creates a sizeable consumer base. Income per capita is enjoying higher than average growth as a result of ongoing economic reforms. The expansion of the middle class segment, economic openness and better living standards have improved health consciousness across growing segments of the Egyptian population. Industry statistics point to strong growth for years to come, supported by favorable demographic and economic profile.

GDP - per capita (PPP): $6,600 (2013 EST.) Country comparison to the world: 144 $6,600 (2012 EST.) $6,600 (2011 EST.) Note: data are in 2013 US dollars Source: THE WORLD FACTBOOK www.cia.gov Graph source: data.worldbank.org/country/ Egypt-Arab-republic

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Marketing Plan for AGA Nectar Juice

Data Source: http://en.wikipedia.org/wiki/Demographics_of_Egypt

After we make analysis our marketing we segment market with geographically and demographically bases Geographically basis because most customer have ability to buy our product majority is in Cairo, Alex and other big City Demographic basis according to age Majority are from age10 year to 50 years for males and female because our product is a homogenous products Finally segment demographically according to social class (starting from B class and onwards)

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Marketing Plan for AGA Nectar Juice

10- Current distribution Channels First: Domestic Distribution channels: 47% of distribution channels are dedicated to serve Egyptian universities consumers which makes it a major channel in AGA distribution channels system , second other Main channel is dedicated to

casinos and cafeterias with

32% of AGA local domestic

production , hotels and tourism villages by 16% , then last comes

supermarkets,

hypermarket, wholesalers and retailers by 5% of total value of whole annual production for domestic market.

As per these above figures it is clear that company target customer is in age range between (18:22 years Old ) with a clear discount to a huge number of other customers that range are under and above (18:22 years Old ) Also they Current Policy at AGA is targeting a middle social class and discount another classes.

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Marketing Plan for AGA Nectar Juice

DISTRIBUTION CHANNELS IN DOMESTIC MARKET supermarkets, hypermarket, wholesalers and… hotels and tourism villages 16% Egyptian universities 47%

casinos and cafeterias 32%

Second: Global Distribution channel: Since 2002 and until 2011 distribution was in different nineteen Arab, European and US countries and annual consumption for these countries represents a 75% of whole AGA annual production from cans, equivalent to 75% of total produced in 2012 Starting from 2013, the number of importing countries has been decreased to be only one country, United States of America which consume the annual production of 74% of the total production of 225,000 boxes annually compared to one million boxes since 2002 to 2008.

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Marketing Plan for AGA Nectar Juice

Sales amount in international market year (20122013) 90000 76252

80000 70000 60000

52367

50000 36339

40000

39212 30184

30000

24963 23608

24033 17096

20000

6803

10000 0 Mango juice

Guava juice

Apple juice 2012

Orange juice

Grapes juice

2013

AGA Production contribution in fulfilling Domestic Market Needs In year 2012 AGA produced almost 200000 boxes (nearly 792000 liter) to support 15% of local domestic market needs and about 77.25% of total production was exported. And the excess in warehouses was estimated as 7.75% of total amount of annual production AGA products from juice represents only 3% from total demand of juice in Egypt Market and that is a considered a limited market share comparing to big players in market like Juhayna that is taken 23% of total Market share . Demand on juice in Egypt as shown in next figure is growing and this is represents a big opportunity for AGA to focus Egyptian market and utilize many aspects of it.

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Marketing Plan for AGA Nectar Juice

Juice demand in Egypt (Million Liters) compare with AGA production from Can juice 229.2 250 181.4 200

139.8

150 100 50 3.96

0.891

1.13

0 2007 Juice demand (Million Litres)

2012

Forcasting for 2016

AGA production from juice (million litres)

Source of total demand of juice from: Arab African conferences and exhibitions

11- Customers Expectations and behavior factors : Like any Juice consumer, our current consumers main motive to use AGA juice when they feel thirsty or need a refreshment, with the growing life standards and increased levels of information ,Globalization , education standards , and health awareness becoming more increasingly important factor in consumers decisions and their food preferences in recent years. The demand to produce a healthy product free of artificial colors and preservatives, with suitable nutrition that responds to body and health needs is mandatory.

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Marketing Plan for AGA Nectar Juice

Other Behavior Factors: People are willing to pay a premium for higher quality, tastier fruit juice. Since our Juice provides more nutrition than other drink Juice There is value attributed to the more attractive beverage of nectar fruit juice. More people are tend to enjoy a high-quality juice without the mess of making it themselves.

12- Price overview and value added. AGA starts to produce AGA Nectar in a can container of 330ml size in since 2002 and there are five flavor: Mango, Orange, Grapes, Guava and Apple price of a whole box of mango can costs 17.40 L.E at an average cost of 1.45 pounds per 1 pack ,selling price is at 35L.E and sometimes a discount is being offered as 10% discount to be 31.50L.E final price, at an average price of 2.625 pounds per Can. End User price is at 3.75L.E with profit margin of 1.125L.E, and for the other flavors (Orange, Grapes, Guava and Apple) whole Box costs 15L.E, 1 can at cost 1.25L.E selling price is at 33L.E for each box and sometimes a discount is being offered at 10%, at an average of 2.475 pounds per 1 can. End user price at 3.50L.E with profit margin of 520.1L.E. Profit margin for sellers /outlets is nearly 42% from the Purchasing price. Since our product is a “Convenient Good" type of products so it is meaning high turnover for the products and more revenue to be generated. From customer point view the price of can is quite reasonable if we compare it with other juice product Like RanI Mango juice that is 4.25L.E per Can and it is 240ml of size only and Kahha Nectar mango can as 3.00 L.E with size of 200ml only so our product give customer more value package.

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Marketing Plan for AGA Nectar Juice

Sales amount in local market in year (2012-2013) 18000 16000

17085

14000 12000 12205

10000 8000

7520

6000 5370

4000

6480

6425 4885

2000

2945

3975

4630

0 Mango juice

Guava juice

Apple juice 2012

Orange juice

Grapes juice

2013

13 -Strategic Marketing Analysis Strategic marketing analysis includes marketing objectives, marketing strategies, marketing mix, As for the New Marketing plan We will be focusing on company’s vision, mission, goals as well as its core competency. Out of meeting we have conducted we all are in agreement of below which will require to be written and well formally documented Vision We envision a marketing system that quickly and efficiently moves wholesome, affordable agricultural products from the farm to the consumer. AGA product must be diversified as the consumer need. We have to create our market demand and grow awareness among all.

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Marketing Plan for AGA Nectar Juice

Mission AGA mission is to provide the highest-quality of Juice. To attract and maintain customers. By adhering to this maxim, everything else will fall into place. AGA focus on the following missions, o o o o

providing Hygienic food Finest quality of our product Keeping the affordable price Provide energetic and nutritious food

14- Marketing strategy: We will seek first to create customer awareness and develop customer base, we seek to convey the message that we are the finest producer of high end nectar juice This message will be communicated through a variety of methods. The first method will be advertisements. Some of the advertisements will be co-branding with the Farmer's Market. The strategy of AGA is to focus on wide market which is health/natural food stores that serve the young active professional.

15- Marketing objectives 1- Generate brand equity 2- Create a region-wide sales staff. 3- expand the operation , and staff in production and more in delivery and sales 4- Maintain tight control of cost and operation during expansion. 5- Expand its operation to include distribution to stores within the entire Arab Region this year 6- Maintain positive, steady growth each quarter 7- Experience an increase in new customers who are turned into long-term customers. 8- establish a connection between AGA and healthy active life style 23 | P a g e

Marketing Plan for AGA Nectar Juice

16- Marketing mix We are going to introduce some acts and actions to improve our product positioning using product/pricing/promotion and distribution strategies

16.1- Product strategy  Modify and changed Can logo and design  Introduce slot bottle for easiness of juice flow that allow natural fruits fibers to flow as well.  Provide training sessions for sales agents in the supply chain and distribution raise our merchants and consumers product awareness.  For the global market more researches are required to better understand opportunities and points of improvements  Target Market will be as following Children Teenagers Active adult female/male School, College, and Universities students Old aged people

16.2- Promotion and advertising Strategy AGA Main act will to co-sponsor local athletic charitable events to raise the visibility of the brand name. Also the following will take place  A mixture of advertisements and networking will be used to increase visibility through a multiple advertising campaigns  The advertisement will be done on different media e.g. television, and billboard to make people aware of the product 24 | P a g e

Marketing Plan for AGA Nectar Juice

 In different occasion we will open special sales center where attractive point of purchase display would be arranged to create positive image consumer in mind.  Sometimes we will offer free sampling for the mass sale of product

16.3- Distribution and Sales Strategy  The sales strategy is to build customer loyalty in the new markets. AGA Juice will increase its sales force to focus on the new markets.  We choose the intensive distribution for our product. We will supply our product all over the country on the basis of our product demand so that the consumer can get the product easily.  We will provide different incentive to our distributor.

16.4- Pricing strategy  Mainly we will utilize a variety of pricing strategies  We will mainly use a discount pricing strategy as part of product promotions increase traffic and attract new customers.  Also we will introduce a new size Cans at 200 ml that can be priced at 2.00 pounds for children. and we can offer this specific product at a low end price of 1:50 LE as market penetration price strategy

17- Other Management practices that is highly recommended from our side  introduce a team of expertise to build a Marketing Management department to continue work on product positioning and promotion and marketing plans  invest in multiple marketing research to evaluate product value added and identify ongoing opportunities

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Marketing Plan for AGA Nectar Juice

18- Reference and Notes

A Group Meetings with: 1. Mr. Abel halim Ibrahim the Export manger 2. Mr. Ibrahim Rehaat Sales manger 3. Mr Said El gohary Financial manger WebSites: 1. http://education-portal.com/academy/lesson/pricing-strategy-inmarketing-definition-types-examples.html 2. data.worldbank.org/country/Egypt-Arab-republic 3. THE WORLD FACTBOOK www.cia.gov 4. en.wikipedia.org/wiki/Demographics_of_Egypt

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