Omar Affendi strategic marketing
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Omar Affendi strategic marketing Document Transcript

  • 1. COMPANY PROFILE WHO WE ARE? has had it's ups and downs, its highs and lows and in a country where history is rich, it has stood the test of time, resurrecting itself time and time again, becoming a beacon, symbol and icon of modern Egypt. Founded in 1856, Omar Effendi was first christened Orosdi Bak, over the past century Omar Effendi has molded itself to match the needs of the Egyptian public, becoming more then icon in the country, becoming the primary brand for inexpensive quality goods. The first flagship store, which still stands today, on Abdel-Aziz Street, was originally built to cater to well-heeled foreign and Egyptian customers. Since then the company has gone through various transformations opening up over 60 branches throughout the start of the 1900's. Adolf Orosdi was a Hungarian army officer, who had found refuge in the Ottoman Empire, opened a first clothing store in Galata in 1855. With the Back family, of Austrian-Hungarian descent, Orosdi and his sons began establishing similar stores elsewhere, including Baghdad, Istanbul and Beirut. Some older Egyptians may still remember Orosdi-Back, that famous turn-of-the-century department store which early on added the Turkish-derived "Omar Effendi" to its name. The six- story rococo department store designed in 1905-6 by Raoul Brandon (1878-1941) stands at the corner of Abdelaziz and Rushdi Pasha Streets, a powerful architectural testimonial to Cairo till today.
  • 2. Orsodi Bak became Omar Effendi in 1920 when it was sold to new owners, it was then nationalized in 1957, with over 69 branches up and running and one of the first brand to exist in Egypt and the Middle East. This was the first major retail entity to exist in the region. Since nationalization the department store has weathered major changes, fluctuating between an iconic and deteriorated status. Throughout the 20th century, the sixty-some stores became centers for inexpensive goods with quality. The stores lost some of their luster; lacking in the infrastructure that was pivotal in competing with other huge stores propping up in a modern market. OUR DEPARTMENTS: Women wear & lingerie Women accessories Men wear Kids wear Footwear Perfumes, make up & cosmetics Linen Home accessories Heavy households Electronics & small appliances Furniture Sports goods Carpets Luggage Furniture OUR PROMISE: To Go Through new shopping experience where you can buy the latest in cosmetics, everything you need for dinner, a brand new outfit for a night out and a new lazy boy for your living room, all wrapped up in a delicious, inviting and tantalizing package, making for a quality shopping experience. Combining the latest in fashion, sophistication and style in a unique environment, is just what the doctor ordered, and Omar Effendi is a very fabulous remedy.
  • 3. MISSION • Providing good quality products with good service to Egyptian families while making sure the family members are finding all their needs and goods while feeling safe, satisfied, appreciated and having a good time shopping at Omar Effendi VISION • Core Ideology • Core Values • Become the wide spread market leader in retail industry • Elevation of the Egyptian culture and national status • Being a pioneer, not following others • Being a benchmark for Egyptian and foreign alike hyper markets • Purpose • Families satisfied and feeling happy relying on us • Envisioned Future • BHAG • Become the Arab nations most known for retailing and families products • Vivid Description • We will provide people with products that can find nowhere else. • We will be the first Egyptian company to go into the Arab countries market and distribute directly. • We will succeed with dedication to work and sticking to high standards • In 30 years time our name will be as well known as any in the world. • “Omar Effendi” will mean something fine, not something bad. GOALS AND OBJECTIVES
  • 4. • Being the market leader in the retail industry of goods we provide • Facilitating the purchasing process on customers • Facilitating products delivery to customers • Providing a fun and joyful place for customers • Strengthening the position of OE in the customers perception • Maximizing the target market to contain the high population • Lead and force the competitors to a good competitive environment Political . High pressure of the instability due to unrest & protests . political power of government Economical . With less income coming in to Egyptian families, the demand for goods, services and their retailers grew Social . Egyptian consumers got used to hyper markets and Malls . Consumers perceive going to Malls as fun and getting out to spend spare time plus shopping . There is a shift to brands, shifting consumer Confidence to brands rather than retailers Technological . Technology seekers but within the budget that can allow them . Quick to adopt new tech as they were developed and adapt them to their operations LEGAL Government protects governmental enterprises The Egyptian government has proven its commitment to ease doing business in the country which was reflected in recent tax reformation The government is looking to develop an efficient retail environment supporting various sectors of the growing economy.
  • 5. OMAR EFFENDI SWOT ANALYSIS Strengths - Wide Network of branches around the country – 83 branches - Highly Equipped Warehouses to Receive Any Kind of Goods except Food & Beverage. - The Good Reputation from Establishment Until early 90's. - The Strategic Geographical place of the branches. - The Internal Design of the Branch It Self to ready to be flexible with any kind of LSM Plans and internal planning for the sections. - Fleet of Trucks and cars to move the goods. - More Than155 In Market of retail - Meet the various needs of customers at all levels - From The 60's to 90's OE Known for its Quality in all type of goods. Weaknesses - Unqualified man power. - Unfortunate choice for the suppliers and goods. - The standards of cleanliness. - The Internal and the external lighting system of the store - Bad arrangement of the exhibits - Poor methods of presentation within and outside the shop - The Exhibits out-dated - No Price competitive advantage - Lack of sales promotions and discounts - Lack of effective advertising - Absence of the internal marketing tools - There's no unified external design for the stores. The Colour of the brand does represent the real image of the brand Opportunities - High reach ability - To get into strategic alliances with retailers - Reputation of the big network - The wide spread phenomenon of big malls emergence provide an opportunity for each store to act as a mall on its own - Old customers coming back to OE and their recommendations and word of mouth Threats - Current political situation and its effect on customers, suppliers attitude and vendors attitudes - Customers are focusing on basic products only - Competitor’s reactions - Suppliers and vendors bargain and pressure
  • 6. Current political situation Merge with well known and well established brands To be used in promo High reach ability Old customers, although we will use that in our Promotional campaign To get into strategic alliances with retailers Suppliers and vendors bargain and pressure Customers are focusing on basic products only Competitor’s reactions
  • 7. SWOT AND TOWS ANALYSIS FOR STRATEGIES FORMATION Strategies Tactics Actions Internal strengths - Network of branches – 83 branches - Highly Equipped Warehouses - The Good Reputation - The Strategic Geographical place - The Internal Flexible Design of the Branches - Fleet of Trucks and cars to move the goods - Meet the various needs of customers at all levels - Quality in all types of goods. Internal weaknesses - Unqualified man power. - Unfortunate choice for the suppliers and goods. - The standards of cleanliness. - Poor physical evidences - Poor methods of presentation within and outside the shop - The Exhibits out-dated - High Prices - Lack of sales promotions and discounts - Lack of effective advertising - Absence of the internal marketing tools - There's no unified external design for the stores.
  • 8. External opportunities - High reach ability - Reputation of the big network - The wide spread phenomenon of big malls emergence provide an opportunity for each store to act as a mall on its own - Old customers coming back to OE and their recommendations and word of mouth S-O strategy - To merge with well known and well established brands providing areas and sections “i.e.: Toshiba, LG, Pizza restaurants, IKEA, Telecommunication providers” - To get into strategic alliances with retailers and vendors “Long term contractual agreements” W-O strategy - Improve a standard physical evidence in all the branches - Transforming the branches into Mall alike - Position the good quality of the products - Extra care to cost reduction and value chain to reflect and be able to give sales promotions External threats - Current political situation and its effect on customers, suppliers attitude and vendors attitudes - Customers are focusing on basic products only - Competitor’s reactions - Suppliers and vendors bargain and pressure S-T strategy - Use the high number of branches to make a Strategic Alliance with a well known Supermarket - Offer competitive prices and position the near store idea - Have different products other than that’s being offered by competitors W-T strategy - Develop flexible payment plans to be used with suppliers and vendors - Develop a strong promotional campaign positioning quality then price - Use the current situation of lack of job opportunities in having new employees, filtering the current, offering internal trainings on the highest levels of customer etiquette - Have a price margin for competitors reactions and to do unpredictable actions from our side
  • 9. COMPETITOR ANALYSIS Carrefour: “Strongest competitor” further analysis later, • International company operating with regional partner Maijd Al-Futtaim Group. • Market leader, driving trend towards hypermarket shopping in Egypt. • Plans further developments targeting affluent segments of society. Metro Supermarkets: • Domestic chain owned by Mansour Group. • Mainly mini-markets in middle-income residential areas. • The company has introduced discount format at three stores under the name Kheir Zaman. Spinneys: • Gulf retailer is present in Cairo’s CityStars modern shopping facility. • Plans further expansion in the country. Alfa: • Established Egyptian chain of department stores with an aging profile. HyperOne: • Owned by Egyptian retailer El-Hawary. • More discount oriented than Carrefour, targeting average and lower income. • Located outside central Cairo. Carrefour Company: Carrefour Egypt started fully functioning at the end of 2002 and the other stores opened thereafter, and since that time Carrefour is the most popular retailer in Egypt and it’s characterized by: Carrefour is Egypt's most dynamic, fast-moving and exciting hypermarket chain - Carrefour! A joint venture company by Majid al Futtaim and Carrefour France, this global expertise helps them offer shoppers here in Egypt the same quality, variety and value-for-money that is provided all over the world.
  • 10. Carrefour reputation has been built, above all, on the quality and freshness of the products, customer service and competitive prices. Selling goods with quality choices in food, personal care, communication, leisure, entertainment and household goods while continually meeting the needs of local consumers, with the ranging from needed to refrigerate food to clothes under one roof, is trendy as shoppers pick specialized stores. Services provided by Carrefour: Consumer Goods: * Beverages * Detergent/ Perfumery/ Health Care * Grocery * Ultra Fresh * Dairy Products * Delicatessen * Poultry * Frozen Food Market: * Delicatessen Counter * Dairy Products Counter * Butchery * Fishery * Bakery * Pastry * Fruits and Vegetables Light Household: * Do It Yourself * House ware * Stationery * Camping and Gardening * House Equipment * Car * Toys * Library * Sports * Luggage Heavy Household: * Household Goods * Photo * Computers and Office Automation * Gift and Shop * TV and VCR * Hi Fi Sound * Appliances * Music * Mobility Textile: * Home Linen * Baby * Children * Ladies * Men * Shoes * Accessories
  • 11. Carrefour offers the widest choice of products you can find anywhere under one roof in a spacious area where you and your family can enjoy shopping for all your needs at the lowest price! Free Parking: The idea of a free parking and multiple checkouts makes the shopping experience at Carrefour so convenient! Fresh: Due to the speed of turnover of products, you can guarantee that the food is always more fresh than anywhere else! Credit Cards: We accept all major credit cards. Ecological Bag: Carrefour is giving its customers the chance to be part of protecting the environment and saving the world. Gift Vouchers: We offer you also a gift voucher that helps if you don't know what they really need! 100% Guarantee: Rest assured that all the electrical products come with a full guarantee! Installment: Installment of Every Electrical Appliance in Carrefour. Coverage: Carrefour has Four branches as follows:  Maadi: covers Maddi, Katamya, New Cairo, Mohandseen and Giza  Dandy Mall: covers October, Haram, Giza and Mohandseen  Obbour: covers Obbour, Shorouk and Orabi  City center: covers Alexandria The main competition will come through Maadi and Dandy Mall branches as they are the nearest to Giza area. http://www.carrefour.com.eg/services.aspx
  • 12. THE VALUE CHAIN Omar Effendi Value Creating Activity Value Created Store merchandise in distribution center Buy in volume at attractive prices Centralized purchasing (in store terminal + central computer) Inventory control Central computers linked to several hundred vendors Expedited deliveries Hub-and-spoke distribution network (400+ truck tractors) Less than 48 hour delivery and backhauls Inbound logistics Distribution network Leasing costs More capital (high sales/sq.ft. & bargain-basement acquisition Store manager salary Autonomy in ordering stock and setting up displays
  • 13. Store renovations Upscale look Licensing fees Specialty departments Computerized system in each store Computerized inventory system to track sales and do accounting Satellite system Ease real-time communication to headquarters and cap phone costs ($10 million) UPC at point of sale Speed checkouts, bypass, paperwork, simplify inventory, reorders, post audits Increased store size (42 to 85,000 sq. ft.) and more locations More floor space and increased efficiency of delivery trucks Advertising expenditures Newspaper, circulars, and spot TV to advertise promotions Terms of sale No questions asked return policy, credit transactions Computer aided design Merchandise mix for each store based on 100 factors Employee salaries "We care about our people" reduced shrinkage to 1.3% of sales Administrative costs Regional vice-presidents living in Bentonville and flown to stores Warehouse club Sam's club diversification Category of Sales Description Soft goods sales Apparel, linen, and fabrics Hard goods sales Hardware, house ware, automotive, small appliances Stationary and candy Sporting goods and toys Health and beauty aids Gifts, records, and electronics Shoes Pharmaceuticals Jewelry
  • 14. KPI AND CONTROL • What’s the percent of change in the market share? …….% • Which segment got us the highest value? SOHO/Retail – SMB – Major Accounts – Government Tenders • If our market share has been maximized, it was ON the account of which competitor? Tawheed & Nour – Carrefour – Spinny’s – Malls – other shops • If our market share has been minimized, it was TO the account of which competitor? Tawheed & Nour – Carrefour – Spinney’s – Malls – other shops • Other competitors market shares T & N ….%– Carrefour ….%– Spinney’s ….%– Malls ….%– Others….% • Sales percent of change …….% • Results: Value – Volume Value: Volume: