Full Cream Milk
Hisham Hamed El-Emshaty – 090573
Salma Hatem Hussein Sary – 100311
Wafaa Talaat El- Hadidi – 101987
Zeina Tarek El-Leithy – 100315
Submitted to: Dr. Alaa Tarek
I. Executive Summary
In this paper we are illustrating the consumer’s behavior towards Juhayna Full Cream Milk. The paper includes the SWOT analysis of the product, the segmentation the company uses, the values in Egypt that affect the purchase of the product, the reference group influence on the Full Cream Milk, how customers perceive the product, and all other aspects whether situational or social and related to the product directly or indirectly that affects the consumer when buying the product.
a. Company Background:
Juhayna is an Egyptian company that produces milk and fruit products, 75% of the investors in Juhayna are Egyptians and the other 25% are Saudi Nationals. The company began in 1983, but the actual production started in 1987 by 35 tons per day.
This organization produces a product mix, which includes Milk, Yoghurt, and Juice in many different flavors. In 1988, the company launched flavored Milk; these flavors included strawberry, banana, and chocolate. In 1990, the company launched a new milk brand called Rayeb ®. The product mix of the company increased its production to 120 tons per day in 1991. In 1988, the Company started the exporting of its products to European, US and Arab Gulf markets. (El-Saadani, 2005).
Juhayna has a market share of 65 percent in the Egyptian market of dairy products. The company is considered the leader due the percentage in the market share. (Fayed, 2010).
b. Industry Background in Egypt:
The category size of the milk industry in Egypt is 184,000 tons per month. The category growth of the milk industry in Egypt increases at a decreasing rate because it is considered in the maturity stage and the sales are at the peak. The profits of the Egyptian milk industry for the year 2010 are 1,230,062,000 L.E. The dairy products industry in Egypt is considered to be in the maturity stage; it is unattractive for new competitors to enter the market because the costs would be high.
III. SWOT Analysis
• The Company just hired a new management team with strong experience. • The Company promotes its products very well by making good advertisements that grab the attention of the customers and also every now and then there is a new advertisement about Full Cream Milk with new ideas and the Company also uses rhythms and songs that stay in the minds of customers. • Juhayna Full Cream Milk has high nutrients that make it safe and healthy. • The Company is one of the oldest and most recognized companies in the Egyptian market. • Using doctors in most of the ads makes Juhayna Full Cream Milk more trustworthy in the eyes of the customers. Weaknesses
• The instability of the product packaging is not very accepted in the Egyptian market and this discourages people to buy more. • High turnover rate of employees causes instability inside the company. • For a period of time, there was a shortage of Juhayna Full Cream Milk in the market.
• The Juhayna Full Cream Milk is the oldest brand of packaged milk in the Egyptian market. • The 2010 Revolution caused people to buy more of essential products fearing that they will stay at home which increased the sales of Juhayna Full Cream Milk. • Nowadays mothers are keener about their children’s health which is for the benefit of the industry because it produces healthy products such as plain milk and yoghurt.
• There are many competitors recently entering the market such as Labanita, Maraei, and Beity. • Increase in energy prices set by the government.
• Rising costs due to the bad economic conditions.