Marketing Plan for Chocolate

Marketing Plan Gigels Magic Box Taste of magic” Company Summary: In 1978 El Kowery family had established a company in Egypt named El SHAMADAN Co.

For Food Industries S. A. E Business owned by: Mr. Taher EL-Kowery & brothers. Located in Dekheila, Alexandria, Egypt over 16000 sq.

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M, producing Wafers, Biscuits, and Chocolates. Overseas For food Products S. A. E is a sister company of El SHAMADAN for Food Industries located in 6th of October City, Cairo, Egypt covering an area of 28000 sq. M.

It started its activities in October 1992 in the field of sugar & tea packing. In 1995, it added new lines for the production of Cakes. It is considered as one of the four biggest cake producing companies in Egypt & in the Middle East too his capital more than milliard EGP. Employees: Above 7500 employee. Main markets: Africa, Middle East, Western Europe Business Type: Manufacturer Category: Food, Beverage-Other Food product Service We Sell: Wafers, Biscuits, Chocolates and Cakes. Product Summary:

There are a general increase in snacking, since consumers in Egypt are eating more confectionery as an emotional release from the worries and frustrations of the recent uprising, and the continuing frustrations of Egypt’s transition El Shamaadan will be reinventing itself by producing a kids chocolate which will be tagged as kid’s healthy snack using a nonfat milk to be low in calories and non fat snack with the same quality taste of chocolate and smoothie chocolate feeling with each bite.

Gigles magic box goals and objectives: – To be the best ; quality brand in Egypt To meet the need and requirements of the consumers – To capture the market share – To be the leader in the healthy kid’s chocolate – Less price than competitor – located in almost all market | Situation Analysis: Product Category Definition Chocolate is a product of the cacao bean, which you can find in fruit pods that grow on tropical cacao, it grows in Africa 70%, Ghana produce over 600. 000 tons per year the type of beans grown, climate condition and the process of drying and fermenting the beans varies from country to country all this play an important role in creating a beans flavor characteristics

Gigels Magic Box : Is a confection chocolate in box shape contain inside a toy, this toy will be for boys or girls “Mr. Gigels for boys and Mrs. Gigels for girl” The chocolate box comprising some or all of the following components: cocoa solids, sugar, skimmed milk coated with chocolate, and sized as a snack for one kids. and the toy will be a series to be collect by kids Product Category he Middle East is one of the 10 largest confectionary markets in the world, according to a recent study by TNS Media Intelligence.

The region’s confectionary market, which has grown by 15 percent over the last three years, is currently valued at $113 billion.

Statistics reveal that the Gulf is particularly fueling the boom, with Saudi Arabia and Qatar experiencing a growth in sales of around 24 percent in this sector. Chocolate and sweet sales have also steadily grown in Egypt, at a rate of 2. 5 percent annually since 2001, with the market now valued at $382 million. Chocolate sales are particularly strong, with annual sales averaging $4. 2 billion.

Trixee Loh, senior vice president of Dubai World Trade Center, said, “The sweets and confectionery market in the region will continue to see positive growth.

As a result we are seeing many brands investing to gain market share with many product innovations, new flavors, and packaging ideas. ” Large multinational companies own the majority of market share but there are strong local players such as Ocean Foods, El Shamaadan and corona. Products from these companies are often perceived as less quality compared to European and American confectionery, but they compete effectively on price and benefit from local support.

And the last five years their become competing in quality with good price, The chocolate market remains robustly defiant, and is predicted to grow over the next five years SWOT analysis for Al shamaadan Strengths: They export to Africa, Middle East, Western Europe Has sales exceeding over Milliard EGP. They have different product as wafer, biscuits and chocolate.

Large factory skills and human resources skills make them able to produce more and export more They are the leader in the Egyptian market and western Europe in wafer segments. Low Price with good quality

Weakness: There has been a recent problem in the Egyptian markets. Chocolate is not considered a healthy snack and the population is becoming more health conscious. Opportunities: To increase global trade even further. To take advantage of the holidays such as Valentine’s Day and other season’s holiday. Expand the production of cocoa in other countries To produce a new edition of Al shamaadan chocolates that are healthy and low fat.

Possibly some chocolates those are organic for the health conscious market. Peanuts free for allergy kids Threats:

Cadbury and galaxy Company has a stronger presence locally and kinder in kids chocolate. Changes in dollar exchange rate make import of some component like coco become expensive. Rising prices of gas and electricity increased the overall price The Marketing objectives: 1. To introduce the product successfully in the market within a period of 3 months 2.

To increase potential sales through promotional programs planned through the year especially during the holiday seasons. 3. To ensure that there is a high level of awareness of the presence to Gigles Magic box in the market by using effective marketing strategies 4.

Repackage al shamaadan so that it’s new look will appeal to the customers considering that will be tagged as a low calorie snack. 5. Continue to expand globally and have a stronger presence in foreign markets 6.

Promote their core brands such as wafer and chocolate through numerous tv and magazine ads. 7. To leverage existing products to new markets and consumers through the new collections such as the gigles Collection and new chocolate collection. 8. Better way to make chocolate with less artificial ingredient. 9.

Including e-commerce strategies and Social media awareness to ensure that there is overall growth of the product in the market. Stage in the Product-Life Cycle The kid’s healthy chocolate in growth phase in product life cycle. Almost all family now is interest in give their kids healthy chocolate with low calories to not feeling guilty every time they give their child a reward by chocolate in the growth phase we have to provide high quality product to enhance value to capture market share and brand aware. Company and Competitor Analysis : he kids healthy chocolate with low fat milk and less calories in growth stage There are a few company work in dedicated kids chocolate and only few work in healthy chocolate for kids Kinder and Ozmo, Kinder belong to Ferrero Italian brand and Ozmo is Turkish brand both are imported chocolate and dedicated to kids and both of them in same egg shape and have toy inside and only kinder is healthy nonfat milk so there are plenty of opportunity to penetrate the market especially if it will produce in Egypt with same quality and less price, better size and dedicated toy for boys or girls The Egyptian government support local industry in the chocolate field among the imported brand that gives them a competitive advantage in the price and the component imported in the production of chocolate like coco they give them some facilities in importing process Macro and micro environment: Macro environment: demographic: chocolate for kids till 10 years Economics: sales depend on economic strength of the market

Natural forces: natural disasters would affect the supply of the natural ingredients for the chocolate Technological forces: new packaging material could increase the value of the product political: the country political change and the bad economic can affect the profitability and the taxes added could affect the profitability of the company too Micro environment: Suppliers: related to natural macro environment Ingredient hinge on availability of raw materials Intermediaries: stores and shipping companies Competitors: kinder and ozmo Target marketing and Positioning: Segmentation: Current target marketing: Geographically: Egypt, Africa, middle east and western Europe Demographically: Mom age 21 to 45, reliable income kid’s male and female, age from 3 to 10

Psychographics: women love chocolate, healthy conscious and for kids sweet tooth and collecting toy’s lover Behavioral: brand loyal, reliant on parents money Target: Kid’s: – limitless want for chocolate and sugar – Ability to influence what their parents will buy – kids need snacks for school – There will always be kids to buy chocolate – Chocolate treated as gift and reward for kid’s from family and friend’s – Children are excited about new things and will want to try our products and collect the toy Parents: – Want to reward their kids with healthy chocolate – Give their child’s healthy snacks with them at school – Good quality with less price Positioning: Al shamaadan ???????? ?? ?? ????? ????? ???? rom long time el shamaadan is well known in wafer and chocolate To get the positioning in kid’s mind, Al Shamaadan must change the design to get better image as fun and tasty chocolate and make the taste more smoothly | Customer behaviors: Customer search for the healthy chocolate snack for their kid’s with less calories to maintain a healthy life style for their kids with good quality, Lower price with best quality Problem/Need Recognition: Is the first and most important step in the Buying Decision Process. Without the recognition of the need, a purchase cannot take place. The need can be triggered by internal stimuli (happiness of chocolate for kids, rewards from parents to child’s, healthy snacks) or external stimuli (advertising).

Abraham Maslow dictates that needs are arranged in a hierarchy. According to Maslow’s hierarchy, only when a person has fulfilled the needs at a certain stage, and then he/she can move to the next stage. At this stage, consumers evaluate different chocolates brands on the basis of healthy attributes; those have the ability to deliver the benefits that the customer is seeking. This stage is heavily influenced by one’s attitude, as “attitude puts one in a frame of mind: liking or disliking a brand, moving towards or away from it”. Another factor that influences the evaluation process is the degree of involvement.

as chocolate is low involvement he/she can evaluate more fast Purchase Decision: here the purchase takes place the final, purchase decision can be disrupted by two factors: negative feedback from other customers and the level of motivation to comply or accept the feedback. Post-Purchase Behavior: These stages are critical to retain customers. In short, customers compare the chocolate with their expectations and are either satisfied or dissatisfied. This can then greatly affect the decision process for a similar purchase from the same company in the future, if customers are satisfied, these results in brand loyalty| | BRANDING OBJECTIVE: The success of the product in the market will depend on the branding image. In this case the company will create a personalized brand images.

To ensure the growth and continues of Gigles magic box in the market the company will ensure that. The brand will be distinct from other through package and character where it will be packed in blue with orange for boys and fushia with purple for girls and the brand name will be Gigle magic box. Creating brand image: To create a brand image, brand personality approach will be used, the launch of the product will be tied to kid’s characteristic which they can easily identify the product with it . This will identify the characteristics of the brand in relation to the target market. Marketing Mix: Products: – we want our kids to be strong and healthy, we cannot make them only eat vegetables.

owever, we can take care for that by making a chocolate low fat less calories in funny shape with added vitamins and healthy ingredient – Different flavor from basic chocolate taste, caramel, crunchy with wafer and with fruits – Recommended from dietician and kids doctor so parents can take the buying decision faster – Colorful package in rectangle shape that give more chocolate than regular egg shape and have more space for the toy – Toy’s for boys and girls to be different and series so they buy more to collect, that suit each of them and have fun put it together and playing with it, with the minor help from parents or without no help to be more friendly for kids and parents. – Regular size and a box size that have hree or four inside with less price than buy one – Seasonal package with extra toy in the large box contain 4 gigle magic box and extra toy with them to collect a series – Using the character for mr. gigle and mrs. gigle to make the positioning in child head every time he see it in super market or any distribution place to buy it – Use the slogan “taste of fun” to insure the positioning that buying Giggle magic box will make them have fun and enjoy chocolate pleasure every time in different flavor and different toy. Kids and parents attitude toward giggle magic box: Parents will go to buy it because of price less and good quality in healthy ingredient without the risk of gain weight as it will consider as healthy snack contain milk and coco with less sugar and healthy fruit and crunchy wafer.

Kids will love the chocolate and enjoy the toy inside it because amazing smoothie taste and different flavor they love it so they can choose different flavor each time they buy it Price: One of the decisions most crucial to business success involves pricing your products, it is an important element that determine whether a customer will buy Gigles magic box or not.

There are many factors that affect pricing strategy such as price of cocoa for making chocolate, cost of transportation, manufacturing cost, and competition price as well as consumer perception of the product. As we launch a new healthy kid’s snack we will need to adopt a pricing strategy to penetrate the market in order to attract consumer to at least try the product at least one time.

We need to arrive at prices that cover all costs and deliver a reasonable profit margin, while also hitting the sweet spot of what customers are willing to pay for the value they believe they receive from the purchase. That why the price will be 3. 60 Egp for regular flavor and 3. 90 for the fruit and crunchy Gigle magic box and for the bag contain 4 inside it will be for 11.

90 egp this will be good price to penetrate the market in same time will cover the cost and good margin profit Distribution: Distribution strategy: manufacturer—>wholesaler—> retailers—–> consumers Gigels magic box will sold to customer through retailers.

You will be able to found it at numerous locations such as grocery stores, Mini market, supermarkets and These stores offer moderate to low customer service and offer limited products In hyper market like carrefour hyper market, carrefour express shop and metro that give good customer services and broad product selection Connivance store have medium to narrow product assortment while the full line in hyper market In Playing places as Chicky chimps and Billy beez and other kid’s playing area to be sell their where the target client available Make deals with market inside the clubs and school market to sell Gigels magic box Gigels magic box looking to expand internally in all Egypt and globally middle east, western Europe, and Africa. our target to be in all place that kid’s can see and their family can buy E-commerce: E-commerce objectives: The main objective for implementation of e-commerce structure will be to enhance the overall marketing capability for the company. The server will be used to monitor the success of the e-commerce structure. It is expected that within one years, online sales will be accounting for about 30 percent of the total sales for the company.

Currently the company site has less than 1000 visitors every day. Per day the company is expected to record a hit of about 2000 user within the first 3 month which is expected to rise to 9000 within 6 month and 12000 within end of year. Stats: 77% of parent lends their mobile phone to their kids age from 4 to 9 85% of kids that use parents smart phone to play games Playing games online: according to comscore 1. 3 billion people aqre on the internet and 150 million of them are playing online games The kind of games they are playing: Girls: make-over, hairdresser and ballet Boys: Racing, sports and action games women : quiz, puzzle and time management Website content:

The website will be one of the main communication site between the company and kids, Therefore it is expected to be user friendly and have all the games kids and women need to can attract them to our website the main element of website will contain kids playing environment to have fun with the character This game change regularly and they can watch their favorite cartoon online Every week will have a game if they get the best score they will get free gift from the Gigles wonder box Attract parents by making a MR. and MRS.

Gigles competition that parents help their kids to put their photo and the best photo get more like’s won a gift from Gigles wonder box in same time the website will contain information like the product description , price and the near store to get it and they can make online order. Encourage kids and parents to add comment about the product and how they want to have more in it Integrated marketing communication:

The integrated marketing communication will consist of high spending for advertising, consumer production and publicity in order to create a strong demand for the Gigles magic box the main focused of the campaign to connect with our target client and gain popularity as we want to change the perception in parent mind that chocolate will make kids gain weight to it is healthy snack contain skimmed milk and healthy ingredient low calories and low fat and make position in kids head that Gigles magic box will make them enjoy amazing test of chocolate and have fun play with the toy inside Promotion mix: The average consumer sees hundreds if not thousands of advertisements per day, most of which they have been conditioned to ignore. To be successful brands must reach out to consumers where they least expect it, in the street, in their car, in hyper market anywhere they would not expect a brand message To build brand personality by using Mr. Gigle and Mrs. gigle character, advertising in television will target channel that kids see it as

MBC3, cartoon network, koky tv that kids usually watch The best time that kids watch cartoon television early morning and before sleep so this will be the best time for the Gigles magic box advertizing Parent watch television afternoon therefore advertising must be in this time for them to promote Gigles magic box as the first healthy chocolate snack in Egypt.

In the launching phase will reserve Booth in big mall as city stars, mall of arabia, dandy mall, Carrefour maadi, Carrefour Alexandria, green plaza, San Estefano mall, Carrefour Alexandria, marina and other North coast compound in this Booth the character for Mr. Gigels and Mrs Gigels will present the chocolate for kids and give them a small toy for free, this toy will be for Mr. Gigels for boy and Mrs.

Gigels for girls The booth design will be fun place and from the color of the product so it will attract kids to come and try the chocolate we will have a competition start with the launching phase to go and get picture with Mr and Mrs Gigels and add the picture to the website and the picture that will get a more likes from visitors will get a reward “play station” Use kids open days at school to advertising for the Gigels magic box as healthy snack partner with kid’s toy store to sell the Gigels magic box as toy’s r us, toy and joy and other toy store Use outdoor as soussette, billboard, unipol and light box in some hot spot as 6 of October bridge, Ring road maadi, Ring road 6 of October, in front of big shopping mall and hyper market and in mehwar Use hyper market ads like floor decals to direct kids to the Gigels magic box place and other ads inside the hyper market like dangler and put the product in best place inside the market.

Use the social media as Facebook ads to attract kids and parent to go to the website and know about the product and the launching competition mobile application game for free to download for boys and girls that have the ads of Gigels magic box before every time it load Google ads per click services to attract more visitors to the website and raise the traffic for website. Internet ads in kids website that provide games and other kids activity. Sponsor in kids sport competition as soccer for boys and ballet and Gymnastics for girls, sponsor kids fashion show. Sponsor event for kid’s health and doctor introduce Gigels magic box as a healthy snack for kids in their diet routine.

Get booth in Le Salon du Chocolat that held in city stars intercontinental Advertising in kids magazine make deal with small groceries shop and kiosk to change their banner into new one contain the Gigels magic box ads and add a stand for the product in good location.

| Conclusion: Gigels magic box a combination of a chocolate and milk to produce healthy snack for kids that love to buy and have fun with the toy inside that parent can give them to their kids without feeling guilty of unhealthy snack. With our market mix and well developed plan we will get a good market share, profit and build a good grand image for Gigels magic box and al shamaadan too. |