1. Economics
Prof. Doaa M. Salman
Powered by:
Ahmed hazaa
Lamees sabry kamal
Mohamed Abd Basset

2. • Introduction :-
• EGC – Iceman, it was establish as EGC Egyptian
Denmark Company one of the market leaders in the
Ice-cream industry after the conflict of the Muslim
world and the Denmark for the draws of the prophet
Mohamed it was changed to be EGC Egyptian Co for
industry.
• In 2011 the company expands their facilities including
more 4 factories for Chips, Snacks, Chocolate and
Biscuits with a growth in the snacks and biscuits
category the company were able to gain a market
share and being one of the biggest manufacturing in
those categories.

3. • Objectives:-
• Provide a premium quality with the least possible cost
.
• Serve and satisfy our customer needs .
• Provide a career growth for our employees and
learning new skills.
• Reach a wide range of distributions in urban and rural
area with effective and efficient process.
• Identify the brand building area and maximize the
brand existing .

4. • Market Volume:-
• The Market volumes of consumption for both Trade&
Consumers are high in an average of 8 packages
weekly .
• Market Share:-
• The Company focuses their POS (Point of sales) on the
delta and Upper Egypt area gaining an average of 30%
a market share on the covering areas with more than
12 branches in other cities than Egypt reliance on
decentralization policy in operation .

5. • Market Type:-
• The Biscuit Market is a very competitive market with
more than 20 Producers and importing companies in
the market offering different type of biscuit to
different kind of segments in the market.
A Short list for the Competitive in the market :
• Basco Masr ( A Market Leader )
• Ulker
• Ayman Shain
• Americana
• Over Seas ( EL Shamadan )

7. • Company Portfolio:-
• EGC – Iceman had 5 different Brands in the market.
EGC
Lanza
Cracky
V.cutPerfetto
Iceman

8. Our Product:-
Lanza is a biscuit Brand with more than 11 sub brand and
SKU ( Stock keeping unit ) targeting consumer with in the
B and C class with an average age of 8 to 25 years in rural
area in delta and upper Egypt gaining a 30% market share
in the delta.
Factor effecting supply:-
• Consumer preference
• Distribution power
• Marketing and sales ability
• Technology
• Production ability
Factors affecting demand:-
• Pricing
• Taste
• Availability
• Quality

9. Supply for the product (Production plan ):-
• What we have been able to produce in 2014 and 2015 for 3
different sub brands
SKU
Production
Quantity
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Arco
2014
5,365 3,500 6,437 6,450 8,297 8,439 7,217 9,057
11,064
6,566 5,330 3,819
2015
1,271 7,735 9,799 5,004 4,518 11,102 6,877 10,122
16,430
12,803 7,174 10,042
1- Arco Biscuit

10. 1
2
3
4
5
6
7
8
9
10
11
12
4,877 4,000 5,852 5,864 7,543 7,672 6,561 8,234 10,058 5,969 4,845 3,472
Series 1
Series 1
Annual quantity sold for both wholesaler and retailer
Consumer Price 12 LE

11. SKU
Quantity
Sold
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Annual
Quantity
Arco
2014
4,877 4,000 5,852 5,864 7,543 7,672
6,561
8,234
10,058
5,969
4,845
3,472
74,947
2015
1,155 7,032 8,908 4,549 4,107
10,093 6,252
9,202
14,936 11,639 6,522
9,129
93,524
Growth
Rate
-
3,722 3,032 3,056
-
1,315
-
3,436 2,421
-
309 968 4,878 5,670
1,677
5,657 18,577
4,877
4,000
5,852 5,864
7,543 7,672
6,561
8,234
10,058
5,969
4,845
3,472
1,155
7,032
8,908
4,549
4,107
10,093
6,252
9,202
14,936
11,639
6,522
9,129
-
5,000
10,000
15,000
20,000
25,000
30,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2015
2014

12. 2. Marotte
SKU Production
Quantity
Year Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Marotte
2014 15,732 29,277 25,523 26,501 20,787 10,624 19,496 22,294 22,806 17,987 11,629
2015 14,231 19,427 23,783 19,980 15,616 10,126 11,050 12,343 6,947 12,573 8,026
SKU
Quantity
Sold
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Annual
Quantity
Marotte
2014 19,463
14,302
26,615 23,203
24,092 18,897 9,658 17,724 20,267 20,733 16,352
10,572 221,878
2015 7,766
12,937
17,661 21,621
18,164 14,196 9,205 10,045 11,221 6,315 11,430
7,296 147,857
Growth Rate - 11,697 - 1,365 - 8,954 - 1,582
-
5,928
-
4,701
-
453
-
7,679
-
9,046
-
14,418
-
4,922
- 3,276 - 74,021

13. 2. Marotte
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
14,231 19,427 23,783 19,980 15,616 10,126 11,050 12,343 6,947 12,573 8,026
2014
2015
Annual quantity sold in 2014 and 2015 for both wholesaler and retailer
Consumer Price 12 LE in 2014 18 LE in 2015

14. Due to the change in the price of the product from 12 to 18 le it decline the quantity
sold in 2015 by 74021 pack
19,463
14,302
26,615
23,203 24,092
18,897
9,658
17,724
20,267 20,733
16,352
10,572
7,766 12,937
17,661 21,621
18,164
14,196
9,205
10,045
11,221
6,315 11,430
7,296
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2015
2014

15. Arco Biscuit Demand Elasticity:
= (93524-74947)/93524+74947) / (( 12-12)/(12+12)/2))
Inelastic relation
Arco Biscuit Supply Elasticity:
E/S= ((Q2-Q1/(Q2+Q1)/2)) / (P2-P10/(P2+P1)/2)
= ((104892-83555)/(104892+83555)/2)) / (( 12-12)/(12+12)/2))
Inelastic relation
2 1 2 1
2 1 2 1
( )/[( )/ 2]
Price elasticity of demand =
( )/[( )/ 2]
Q Q Q Q
P P P P
 
 

16. Marotte Biscuit Demand Elasticity:
E/D= ((Q2-Q1/(Q2+Q1)/2)) / (P2-P10/(P2+P1)/2)
= ((147857-221878)/(147857+221878)/2) / (( 18-12)/(18+12)/2)
0.4/0.4=1 Unitary Elastic
Marotte Biscuit Supply Elasticity:
E/S= ((Q2-Q1/(Q2+Q1)/2)) / (P2-P10/(P2+P1)/2)
((156117-224670)/(156117+224670)/2)) / (( 18-12)/(18+12)/2)
0.4-0.36= 1.1 Elastic Demand
2 1 2 1
2 1 2 1
( )/[( )/ 2]
Price elasticity of demand =
( )/[( )/ 2]
Q Q Q Q
P P P P
 
 

18. Conclusions
– The lake of financial resources.
– The centralization in the management process .
– The lake of the demand planning ( supply chain).
– The instability in some of the product quality.
– Not following a sales mix between wholesalers
and retailers .
– Has no brand image know in the urban areas.
– Distribution areas are not really defined.
– Focus on selling more than marketing.