Analysis of Branch Launch: Slim Fast in Egypt

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In this assignment I will tackle the option of launching an existing brand in the company portfolio that will be launched in a new country and I chose Egypt where I live to be the country for the launch. I will demonstrate through many internal, external and market assessments and planning how it can be profitable to launch the brand: “Slim Fast” in Egypt while using 1-2 products at the start up of the plan then add more as the demand increases for it. I will start with the situation analysis that will tackle Egypt’s critical situation and its influence on the marketing plan for the brand also the strengths and weaknesses of the brand, which might increase or decrease its competitive advantage in the Egyptian market. All information below are combined from many resources like: •Economist intelligence unit: Egypt Report
El ahram and el Akhbar local newspapers.
I. Situation Analysis:
Generic and key facts about Egypt:
Full name: Arab republic of Egypt
Capital: Cairo
Age structure:
0-14 years: 32.7%
15-64 years 62.8%
65 and over 4.5%
Median age:
Male: 24 years
Female 24.6 years
Population growth rate: 1.96%
Area: 1 million square meters, only 5% occupied with people the rest is desert Languages: Arabic the native language.
Population (July 2011 official estimates) Population: 88 million and its main cities are: •Greater Cairo (capital; Cairo, Giza, Helwan, 6th of October & Kalyoubia governorates) 18,440,076 •Alexandria 4,123,869

Port Said 570,603
Suez 512,135

Generic outlook:
In January 2011, thousands of young Egyptians went into the streets leading the 25th of January revolution against the existing regime then, which resulted in the collapse of the whole existing political system. Since then Egypt is experiencing a lot of uncertainty and instability within the politics, economy and security. This instability is impacting the economy and trade enormously in a negative way but on the other side there is hope for a better future that can in the short term start boosting the economy and harness security which may result in a better future for the nation. PESTLE Assessment:

Political Forces:
1.A new cabinet was formed in march 2011 after 3 consecutive cabinets post revolution 2.New people assembly, parliament that has 70% Islamists, 454 members for 5 years 3.More than 30 new parties were formed

4.Constitution is in the process of being written
5.No president currently and there is a fear from many groups that the next one will be a fanatic Islamist 6.Advisory Council was formed of 264 members and 60% of it are Islamists 7.Muslim Brotherhood is the dominating group and party that controls the political life in Egypt and huge fear that it turns to be like the old regime days. 8.High level of uncertainty in political outlook

Economical Forces:
1.Egyptian pound will continue to depreciate against the dollar in 2012 as capital inflows remain subdued and foreign-exchange reserves are depleted. The currency will average E£5.75:US$1 in 2013-16. 2.Inflation rate in 2011 was 13.8% compared to 12.8% in 2010 and 11.9% in 2009 3.The main source of income flowing in Egypt is through tourism which was cut by 70% in 2011 because of insecurity and terrorism 4.Foreign currency and gold reserve decreased from $35.7Billion in 2010 to $15Billion in 2011 5.10% of population has 80% of the wealth of Egypt.

6.Increase in the level of prices of Energy reflected in the increase of gas and petrol prices. 7.The Government is temporarily restricting imports of entertainment goods. Socio-cultural Forces:

1.High level of unemployment
2.High level of crime
3.The majority feel insecure because of the numbers of prisoners who ran away during revolution 4.People started choosing only the things they need and not all what they want because of many financial constraints and physiological insecurity. 5.In...
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