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Transcript of Strategic Marketing
Juhayna Food Industries is a leading Egypt-based manufacturer specialized in the production, processing and packaging of milk, yoghurt, juice and juice concentrate. During the past three decades Juhayna has succeeded in winning the loyalty of consumers who have come to view our wide variety of quality products as trusted household names.
Juhayna has the well-earned reputation as trendsetter in both manufacturing know-how and product innovation. Recent market studies indicate that Juhayna enjoys a level of brand awareness that is significantly more pronounced than its leading competitors on the Egyptian market.
By building a state-of-art industrial infrastructure, Juhayna has steadily increased production capacity while developing and expanding its product range. Today the company has 209 different products on supermarket shelves that are produced at six separate manufacturing facilities with the industrial capacity to yield a total of 2,900 tons per day.
Porter’s 5 Forces
Porter’s 5 Forces
High rate of population increase as well as the average income of customers.
High exit barriers of dairy milk & juice industry which requires expensive facilities.
Basis of competition
Price sensitivity of the Egyptian consumers specially in the dairy milk products as it’s consumed on daily basis.
Juhayna has 2 major competition streams:
loose milk sellers
(which represents almost 80% of the total market size)
What did they do?
to capture low income segment
However the Pace of conversion from loose to packed milk is expecting to be accelerated due to the health awareness, improvement of affordability and aggressive penetration strategies adopted by foreign and local firms
Other rival companies
Juhayna has started from small local firm and becoming market leader:
Juhayna adopted market leader strategies:
Expand total market:
Larger packages to accommodate all users
Tie product to a certain occasions : like Ramdan and Rayeb youghart for digestion :
The Rayeb yogurt range is available in “full cream” and “light” varieties. Juhayna was the first to introduce Rayeb yogurt to the Egyptian market
Increase consumption through the recipes on Facebook which creates more usages for it’s products
Juhayna advertises on television as well as through newspapers, magazines and outdoor and is a regular exhibitor at international trade fairs in order to market its products.
They make use of the campaigns of Tetra packs which increase the awareness of the disadvantages of loose milk , which helps them in capturing customers who will switch from loose to packed milk.
Build loyal customer:
Of innovation even in loyaty is the introduction of Jino flavored milk , The smaller package size of Jino caters to its target audience; children aged
three to seven, in the expectation that it will help to build lifetime loyalty for Juhayna’s products from an early stage of consumers’ lives
1- Threat of new entrants
Juhayna is defending its position in the Egyptian market by:
Large distribution channel,
Production facilities (capacity 2900Ton/day),
Governmental policies which are supporting national companies
Rivalry among existing firms
Number of competitors
Ahmed El Khouly
Mohamed El Gendy
Vision and Mission
“Juhayna is a leading food for all ages, and a friend for all generations”
“Juhayna perseveres in providing Products that are healthier, tastier, and classier while increasing shareholder’s value and focusing on the most updated state-of the art technology as well as our employees who represent our most valuable asset”
Porter’s 5 Forces
3- Threat of substitute products
Very high into the Egyptian market but Juhayna managed to introduce new innovative products to create new customer habits which enabled the company to break into new markets & consumer segments leading to strong sales growth
4- Bargaining power of buyers
Juhayna is dominating the Egyptian market, its products are available everywhere with the largest shelf space area into the dairy milk & juice industry
Customers trust the name of Juhayna which they have been dealing with over 3 decades
5- Bargaining power of suppliers
Backward Integration (El Namaa Agriculture Development, Egyfood, El Dawleya, Al Marwa Food Industries)
Joint Venture (The Modern Concentrate Company)
Amongst future capital expenditure is heavy investment in the company’s 10,000 acre farm dedicated to satisfy its raw material requirements.
Additional investment is planned in acquiring additional land and expanding the farming business in attempt to securing raw milk supply internally
Product diversification through expanding the range of existing products as well as entering new product segments
Enhancing the regional operations in markets such as Libya, Jordan and Lebanon where the company has established brand recognition
Replicating the business model in Egypt in other markets
Regional and local acquisitions of complementary businesses
Juhayna has 209 different products in the market that are produced at 8 separate manufacturing facilities with the industrial capacity to yield a total of 2,900 tons/day.
Juhayna was the top exporter of Milk and Juices in Egypt in 2008 and remains a key force. Its products are exported to over 30 countries worldwide.
Juhayna’s innovation in introducing new products as flavored milk & drinkable yoghurt for the first time in the Egyptian market.
Juhayna has a controlling market share. For plain milk, market share stood at 69% at the end of 2010. For flavored milk (second largest product), had a market share of 74% in 2010.
-> Dina will cover it
During the past 3 decades, Juhayna has succeeded in winning the loyalty of consumers who have come to view our wide variety of quality products.
Market studies indicate that Juhayna has a level of brand awareness that significantly more pronounced than its leading competitors in the Egyptian market.
In 2009, Juhayna ventured into farming activities through ElNamaa for agricultural development company which in turn acquired 40% of Milk dairy that owns a modern farm.
Macro (Societal environment)
Government future trends will most likely be more transparent, helping firms not politically connected with the government secure contracts.
Following the new GATT treaty, opportunities will increase tremendously for the export of agricultural products in general and dairy products in particular.
One of the biggest exporters in Egypt so they are providing the country with hard currency & they have 8 facilities so they are decreasing unemployment rate
They have advantage over the foreign companies in the currency exchange rate & customs & central bank new regulations.
With a population of 90 million, Egypt has the largest market in the Arab world.
Population growth at 2% is considered high compared to developed countries.
Nearly 45% of the population is under the age 18, which creates a sizeable consumer base.
The expansion of the middle class segment, economic openness & better living standards have improved health consciousness across growing segments of the Egyptian population.
Juhayna is using the social media channels intensively such as an informative web & other social media platforms.
The use of automated systems are taking over; it helps so much in reducing time of production while increasing the capacity & production.
Example: the microchip injected in cattle to monitor & make sure that all the herd has been milked.
Milk consumption and international dairy trade to continue to grow
Introduction of value-added products with different flavors, Ice creams, flavored milk, Dairy sweets, etc. are to be undertaken
Export potential of reputed brands
Biggest Market share
Strong brand name
Well established distribution matrix
Concentration on healthy products
Variety of products
Lack of resources for packaging
Lack of skilled functional & technical skilled workers
Capacity utilization during Seasonality
Dependability on imports in areas of shortages, such as milk powders
Instable prices of fruits which affects the profit margin
Limited land suitable for agricultural production
Increasing competition for many key imports
Poor irrigation and diminishing water supply
Exporting will be done carefully choosing the target markets to access easily and smoothly
The availability of capital will facilitate the access to any market and operations will function successfully in all alike markets
Using the Strength of our R&D to introduce Value Added products,
Taking advantage of our Market Share and brand name to hunt the opportunity of the high birth rate and the shortage in the market
Filtering and seeking of good skilled workers. Going global makes us cooperate and integrate the processes to achieve the economies of scale
The government aid will support in stabilizing the prices of supplies and raw materials
To secure resources of supplies and raw materials
It is so important, the research and development functions are of very high importance
Cooperation and integration of processes with suppliers of packages and know-how transfer for future further expansion
Defend market share:
Juhayna as a market leader defending it’s position through the company aggressive promotional ads
Products diversification that covers all consumers needs
Changing the pack to become friendly user after receiving negative feedbacks of the pack.
Expand market share:
Win competitor: capturing Bekhero to win it’s market segment
Plain & Flavored Milk (SBU)
The Group believes that its brand connotes healthy and delicious products, uncompromising quality assurance and modernity in an industry that has historically suffered in Egypt from poor hygiene standards and a lack of innovative packaging and image. Management believes that this association of the Juhayna brand with consistently hygienic, high quality, modern and consistent products has been key in the Group maintaining its market-leading positions in the largest segments of its business and diversifying into related lines of business successfully.
The Juhayna brand has significantly higher brand equity scores than its competitors, is further enhanced by its emphasis on modern and memorable product packaging and its multi-media marketing campaigns which aid in retaining customer loyalty by keeping its brand image fresh, modern and relevant to consumers.
The Group has maintained consistency of its branding by including the Juhayna brand name and flower logo on its individually-branded products in all of its marketing campaigns and, as livery, on its large distribution fleet thereby aiding consumer recognition of the Group’s existing products and giving immediate credibility to newly launched products
Plain & Flavored Milk (70%)
New product development
The Company produces packaged cream products in two main categories:
whipping cream and cooking cream. The Company also produces a variety of other cream products such as coffee cream, sour cream and ice cream mix.
Juhayna is the market leader in the Egyptian whipping and cooking cream market with a market share of 70% in 2009. Juhayna prides itself on the quality of its whipping and cooking creams, which have become the product of choice for both housewives and professional chefs around Egypt.
Juhayna mix was originally for kids, however after noticing being used by teenagers more, they started to position mix for teenagers and develop Jino for the kids
to substitute the gap between supply and demand
for better usage and hence customer satisfaction
to capture new market segment
Stretching the brand vertically through moving up in quality and price to compete with “Isis” and “Dina farms”
Co-branding between “Juhayna foam milk” and “Nescafe”.
Types of chain and intensity of distribution strategy
Intensity: ( Mass/Intensive distribution ) , Type: VMS administered
Joint-Venture with El Enmaa agriculture development and livestock in order to provide consumers with high quality products guarantee stable growth by securing their supply of raw materials. providing high quality production such as raw milk and fruits
Juhayna’s domestic distribution operated by Tiba.
Owned and operated a fleet 523 distribution vans of 294 ( Dry goods) and 229 ( Chilled goods ) reaching 90% of Egyptian population. delivering jubayna products to 24 distribution points and reaching 36,000 retailers daily
Ensure product delivery across a wide geographical areas so that its products in good care. Vehicles in the company distribution branded with Juhayna to increase brand recognition, transports 700 tons of products per day.
—> Twice weekly, Chilled products —> Three times weekly.
In addition to its distribution fleet, Juhayna operated a distribution network of 20 branches supplies 25,000 retail weekly.
Rural areas, too remote to be served directly by its own distribution company operates 4 sub distribution and wholesalers to reach 50,000 outlets.
Juhayna exports to Europe, Gulf,Usa and 41 countries.
( think globally ).
(Age, gender, family size, income, level of education).
Segment (A) - Juhayna Milk:
Mothers who want safe and high quality packed milk for her family.
Gender: (Female), Age : (21-60), Family Size: (2-6), Income: Medium & Higher Level, Education: High Level of Education.
Segment (B) - Bekhero Milk:
Target market that has been traditionally averse to packed milk due to factors related to both cost and unfamiliarity.
Gender: (Female), Age : (21-60), Family Size: (2-8), Income: Low & Middle Level, Education: Low Level of Education.
Segment (C) - MiX:
teenagers & Adults who do not enjoy the taste of regular milk and they prefer flavored milk contains high nutritional values of protein and calcium.
Gender: Both (M/F), Age : (8-30), Family Size: (2-6), social Status: Medium & Higher Level, Education: High Level of Education (School/College).
Segment ( D ) - Jino:
children between the ages of 3 to 7 years old who need a healthy and safe product with the required daily allowance of calcium for growing the bodies of the child.
Segment (E) - Foam Milk:
for those who enjoy coffee with milk. “Foam” milk, a one-of-a-kind product on the Egyptian market, allows enjoying an unforgettable delicious cup of coffee with a pleasant foamy texture.
Gender: Both (M/F), Age : (16-40), Family Size: (2-6), social Status: Medium & Higher Level, Education: High Level of Education. For those who enjoy coffee with milk (foam milk)
( kol el se7a.. kol el ta3m) = Healthy & Delicious
= Functional provider of a safe and high-quality milk products - free from artificial additives and preservatives, and produced in accordance to global quality standards. Our sustained market leadership in the milk segment is a testament to our ability to successfully innovate and win the loyalty of our customers.
The Group has maintained consistency of its branding by including the Juhayna brand name and flower logo on its individually-branded products in all of its marketing campaigns and, as livery, on its large distribution fleet thereby aiding consumer recognition of the Group’s existing products and giving immediate credibility to newly launched products as a brand leveraging strategy.
Positioning Strategy & 4P's
Assortments & diversity, packaging, safety, nutrition facts, Availability
Cost leadership & Differentiation
T.V. ads to stress brand differences and benefits, BTL, Associations (Ahly & bahya), In store offers, PR, Digital Marketing, increase sales promotion to encourage brand switching
For years Juhayna has stood for reliability and integrity. Juhayna has also been building brand equity through various advertising techniques. Juhayna advertises on television as well as through newspapers, magazines and outdoor and is a regular exhibitor at international trade fairs in order to market its products further afield.
(Value Chain) intensive distribution
Implementation & Marketing Activities
1- More usage/Consumption:
increase the availability
tie the product to a certain occasion
2- New customers:
Ads, Discounts, promotional campaigns.
targeting new segments, targeting new geographical areas.
Evaluate & Control
Comparing the actual performance to the preset standards and forecasts to see if there any corrective action needed to achieve the expected output (Profit & Market share)
Tracking brand performance via KPIs
Product life cycle analysis to decide on the suitable strategy for each stage
Brand Positioning analysis (Perceptual maps)
1- Maximize profit
2- Defending market share