Nile Company agricultural industrialization (AGA)

Marketing Plan for AGA Nectar Juice
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Prepared for,
Dr. Mohamed Sobhy
Cairo University, MBA, Group A, Marketing
LETTER OF TRANSMITTAL
Dear Sir,
This is our Marketing plan for AGA Juice product, in the time of preparing this plan we had to face some
problems in finding the right research tools to support our study, there were other difficulties about market
statistics availability.
We had to approach some contacts of real employees insiders and responsible managers at AGA to provide and
release some real information which we used to base this paper on
We have prepared this marketing plan on the basis of our own knowledge and also on the collected
information from different sources, we tried hard to apply our marketing knowledge as much as we learn. If
any type of mistake you notify please suggest us.
Sincerely yours,
1. Sameh Saleh Hashem
2. Ahmed Hassanein Salem
3.Andrew Amir
4.Hoda Fathy
5.Mohamed Farag
6.Osama Ahmad Rashad

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Table of content
Contents Page
1.Company Profile 3
2. Executive Summary 4
3. Products overview 5
4. company Analysis 8
5. Situation analysis 9
6. Competitor Analysis: 9
7. SWOT Analysis 11
8. Positioning 14
9. Market Segmentation: 15
10. Current distribution Channels 17
11.Customers Expectations and behavior factors 20
12. Price overview and value added. 21
13. Strategic Marketing Analysis 22
14. Marketing strategy 23
15. Marketing objectives 23
16. Marketing mix 24
16.1 Productstrategy 24
16.2 Promotion and advertising Strategy 24
16.3 Distribution and Sales Strategy 25
16.4 Pricing strategy 25
17. Other Management practices that is highly recommended from our
side
25
18.Reference and Notes 26

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AGA Nectar Juice
“We make your life Delicious”
1- Company Profile Summary:
Nile Company agricultural industrialization (AGA) Was founded by MR/ Eissa Ayouti and
MR/ El said Ayouti since more than 30 years and the name was eventually named sos
reference to the name of the city that the owners belong to,
Business center of AGA is in Dakahlia
This company is a limited partnership entity where its shares are only published internally
and not subject for public offering and not listed in Egyptian stock exchange Market shares
are distributed and divided into only family members,
company is one of 12 companies Group owned by Nile Bank (previously now United Bank)
which was founded by Mr. / Essa Ayouti, Mr. / Mr Ayouti . .
Company Location is in Cairo at 35 Ramses Street - Floor 10 and Factory (ManufacturingPlant) is in
AGA Center Area - Dakahlia on the Agricultural Road.
AGA has Eight branches other than the head office and the factory, and these eight branches
located in: Alexandria, Sharm El Sheikh, Hurghada, Luxor, Marsa Matrouh, Sohag, Aswan,
Suez, AGA has HACCP & ISO9001-2000 certificates.

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2- Executive Summary
A concrete marketing plan is one of the major tools of a marketer to be successfulin his
business. As a student of Marketing we were assigned to make a marketing plan. Forthis
purposewe selected only one productLine from AGA Products which is AGA Juice as our
productmarketing plan will only be directed to this productline
Today AGA has grown to become an independent Juice processor with a partial steps towards
being a global supplier, with the strong commitment to outstanding quality and great concern
for food safety With the Fact that AGA utilizes innovative, state-of-the-art technologies and
precise quality controls to provide customers with 100% all-natural fruit products to meet the
needs of diverse consumer demands. AGA continues to invest in additional fruit sources,
expansion of storage capacity, and improving the quality and efficiency of its processing
facilities to better serve its customers, suppliers and the ingredient industry. And to achieve the
desired target of being an industry leader with a strong presence in region, AGA main
objective is to avoid Missing number of potentially profitable opportunities. This Market Plan
presented by the Group Members will allow AGA to well survive and compete in the current
destructive business environment and current financial crisis that makes it mandatory to AGA
to follow our recommended agreed context of succeeding management activities described in
this Market Plan
.

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3- Products overview
Productoverview includes categories of products and raw-materials
TARGET PRODUCT
3.1 AGA Natural Juices:
All varieties of Natural fruits like (Mango, Guava, Apple, Cocktail, Grape, Orange,
and Peach) packed in different sizes (cans 240ml, cans 330ml, Tetra Pak 200ml, Glass
bottles 1 Liter, Glass bottles 250 ml, Pouch 200ml are produced
Other products offeredby AGA
3.2. AGA Frozen Vegetables:
AGA processes and freezes with the latest international technology and standard
measurement, free from any preservation or chemical substances. AGA Products are
available in different varieties and pack sizes such as (Artichokes, Okra, Peas,
Molokhia, Broad Beans, Spinach, Colcassi, Green Beans, Vine Leaves, and
Strawberry)

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3.3. AGA Jams
Jams are produced with high quality natural fruits, including (Apricot, Strawberry,
Mixed Fruits, Orange, Fig) available in different pack sizes (Plastic portions 30 gm
(hotels, resorts, Schools), Glass jars 380 gm, Economy packs up to 3kg.
3.4 .AGA Premium Pickles
All varieties of natural vegetables that includes ( Onion, Cucumber, Lemon in
different kinds, Olives in different kinds, Vine leaves, Chili, Cocktail) Available in
different pack sizes (Glass jar 750 gm ,Economy packs up to 9 kg)

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3.5. AGA Tomato Paste
AGA Tomato paste from the latest products made from the finest fruits of tomato that
carefully selected are also Available in glass jars 380 gm, 320 gm.
4- The company Analysis:
Company Marketoperation Main axis are as following:
1. first: The domestic Market: The company generally covers the governorates of Egypt from
Delta up to Upper Egypt by at least 80% of its production of all products through
wholesalers and retailers, its branches are all over the country, as well as through sales
representatives of companies respective vehicles which are targeting the majority of
Supermarkets, hypermarkets, hotels, casinos and cafes available.
2. second: the Global market: Most Product Lines are being oversees exported to Arab and
European countries and US, such as the State of Saudi Arabia, Kuwait, UAE, Qatar,
Morocco, Jordan, Libya, Palestine, Algeria, America, Italy, England, France, Greece,
Germany , Australia, Sweden, Japan . Respective needs for these countries are covered all
as requested in full and in the prescribed deadlines.
All packaging materials for all products are being imported from Saudi Arabia grantee top
quality and purity of packaging materials and packaging,.

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the company was awarded and certified of 5 certificates in ISO during the last 10 years
and is using the latest global machinery and latest laboratories for quality control of the
products to be producing a product of the highest quality possible to be consumed at
domestic market and other region countries at the highest possible level
Core advantage for AGA produced raw materials is All Materials are straightly packed
right from company's farms and are free from any synthetic materials or preservatives
added value to their products, but all are natural 100%
5- Situation analysis
AGA business is not s a start-up business. The Fruit nectar juices have been well received
and marketing is now critical to its continued success and future profitability.
AGA offers a wide range of high quality of juice.
The basic market need is high quality juices with flexibility of production for both the
consumer and commercial market.
6- Competitor Analysis:
There are many competitors Exist so far, Since AGA is the second oldest agricultural
companies after Kaha Company for Food Industries,
The competitors are as following:
 for frozen vegetables in general there are 5 big player as following Amricana,
FarmFrits, Basma, Montana, Foddina and Givrex
 For Pickles in general they are Amricana , Givrexand Olivia
 For Jams we have Kahha, Vitrac, Al Rashidy El Mizan, and El Bawady
 For Juices there are Giant Market players as Juhayna & Enjoy then comes
other players as following Kahha, Vitrac, Yahoo, , and Faragello , Rani

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 For Tomato paste there are Foodina, Amiricana, Hienz, Edfina, and Foodico.
And for Juice in specific
6.1 Competition summary for AGA Nectar Juice
6.2 Indirect Competitors
Beverages and fruit industries, like- Pepsi, cocacola, etc.
6.3 Direct Competitors
Juhaina, Enjoy, Lamar,Rani,AHA
AGA Nectar Competitors Strength
Establishedbrands: the competitors have established brand like Juhiana and Enjoy
Product supply: the competitors productsupply is very larger than our product.
Price:since competitors provide different size, price cannot be compared
Distribution Channels-- competitors have strong channel distribution channel, the
consumer get it at every retail shop

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7- SWOT Analysis
The following SWOT analysis captures key strengths and weaknesses within
the company and describes the threats facing by AGA for marketing Nectar
Juice
Strengths:
 AGA is the only company make natural nectar in can in 330 ml packaging
which is considered one of its competitive advantage
 AGA is performing its own bottling to their products and this gives a quite
competitor advantage in cost control that is reflects positively on end user
price
 Wide variety of business portfolio & products
 huge product line for multiple healthy products
 Wide Spread in large number of countries all over the world
 Company achieves Higher margin than industry due to production
efficiencies, since they have their own farms to cultivate and grow its
products through its farms therefore ensure quality
 AGA Factor located in the same place of its Farm which for better time
and transport saving and that ensures company more fresh products onsite

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Weakness:
 AGA lacks brand equity
 Non specified marketing budget to develop brand awareness.
 Price fluctuating as a natural for fruits which affects the profit margin and
sales forecasting.
 Lack of skilled functional & technical Workers at production
 production Seasonality natural that impacts our factory plant capacity
utilization
 unclear positioning plans and low awareness of company brand
 tough market that include big players adopting many advertising
campaigns with a good positioning for of other competing products
 poor inactive web site www.aga.com.eg and a quite absence for Media
 Non existing of marketing department
 Lack of marketing research done to enhance company product positioning.
 No promotion plans are adopted targeting wholesale dealers or customer
 absence of customer support center and accordingly any feedback
channel to voice customer views
 an obsolete poor can design that was first introduced since 2002
 insufficient training to sales agent and with unreasonable amount of vehicle
that are required to transport and deliver final products

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Opportunities:
 Large pool of inexpensive labor cost, which is more convenient to labor
intensive commodities industries like ours.
 privileges given by Egyptian government pursuing the approach and
preferences to better invest in land reclamation projects, increasing area
available for agricultural output and so cattle breeding which will also
reflect in some certain facilities that can be given to AGA
 large increased population for current region which will definitely results
in wide customer base
Threats:
 Urban construction is taking over on the limited land suitable for agricultural
production
 With the volatile prices increase of many agricultural commodities, Egypt will
face a severe competition for many key import commodities.
 According to Central bank of Egypt annual inflation is reaching to 9.09% rate
and this is leading to an increase in raw materials and may impact labor cost
which will impact product price

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8-Positioning
 AGA produces a Juice Nectar, there are three categories of drinks with so many
variants that all consumers, to varying degrees, they contain the natural juice
or extract from fruit, vegetables or herbs. What the final productcan be called
is regulated by national and regional food legislation, but with some variation.
 Juice - 100% fruit
Juice contains only the natural ingredients contained in fruit and vegetables,
i.e. fruit juice or fruit juice concentrate.
 Nectar
Within the beverage industry nectar is a fruit juice that is too thick to drink – for
example, from apricots, peaches and pears. The juice, or rather the purée,
must therefore be diluted with water and have sugar added to make it drinkable.
The fruit juice content in nectar can vary between 25% and 99 %
 Still drinks
The next step on the scale for less juice content is still drinks, namely fruit
drinks with less than 25 % of fruit content.
 AGA produces Nectar juice that helps to maintain good health, when time is
short, which create a value in consumers mind about this productand motivate
rheumy to buy frequently.
 AGA will position itself as:
1. Easy to reach.
2. High-quality producer.
3. Reliable

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9- Market Segmentation:
With a population of 87 million most of them located in Cairo, Egypt is the largest
market in the Arab world.
Population growth is at 2.0% which considered high compared to other developed
countries. Nearly 45.0% of the population is under the age of 18, which creates a
sizeable consumer base. Income per capita is enjoying higher than average growth as a
result of ongoing economic reforms. The expansion of the middle class segment,
economic openness and better living standards have improved health consciousness
across growing segments of the Egyptian population. Industry statistics point to strong
growth for years to come, supported by favorable demographic and economic profile.
GDP - per capita (PPP):
$6,600 (2013 EST.)
Country comparison to the world: 144
$6,600 (2012 EST.)
$6,600 (2011 EST.)
Note: data are in 2013 US dollars
Source: THE WORLD FACTBOOK www.cia.gov
Graph source: data.worldbank.org/country/Egypt-Arab-republic

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Data Source: http://en.wikipedia.org/wiki/Demographics_of_Egypt
After we make analysis our marketing we segment market with geographically and
demographically bases
Geographically basis because most customer have ability to buy our product majority is in Cairo,
Alex and other big City
Demographic basis according to age Majority are from age10 year to 50 years for males and
female because our product is a homogenous products
Finally segment demographically according to social class (starting from B class and onwards)

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10-Current distribution Channels
First: Domestic Distribution channels:
47% of distribution channels are dedicated to serve Egyptian universities consumers which
makes it a major channel in AGA distribution channels system , second other Main
channel is dedicated to casinos and cafeterias with 32% of AGA local domestic
production , hotels and tourism villages by 16% , then last comes supermarkets,
hypermarket, wholesalers and retailers by 5% of total value of whole annual production
for domestic market.
As per these above figures it is clear that company target customer is in age range between
(18:22 years Old ) with a clear discount to a huge number of other customers that range
are under and above (18:22 years Old )
Also they Current Policy at AGA is targeting a middle social class and discount another
classes.

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Second: Global Distribution channel:
Since 2002 and until 2011 distribution was in different nineteen Arab, European and US
countries and annual consumption for these countries represents a 75% of whole AGA
annual production from cans, equivalent to 75% of total produced in 2012
Starting from 2013, the number of importing countries has been decreased to be only one
country, United States of America which consume the annual production of 74% of the
total production of 225,000 boxes annually compared to one million boxes since 2002 to
2008.
Egyptian universities
47%
casinos and cafeterias
32%
hotels and tourism
villages
16%
supermarkets,
hypermarket,
wholesalers and…
DISTRIBUTION CHANNELS IN DOMESTIC MARKET

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AGA Production contribution in fulfilling Domestic Market Needs
In year 2012 AGA produced almost 200000 boxes (nearly 792000 liter) to support 15% of
local domestic market needs and about 77.25% of total production was exported.
And the excess in warehouses was estimated as 7.75% of total amount of annual
production
AGA products from juice represents only 3% from total demand of juice in Egypt Market
and that is a considered a limited market share comparing to big players in market like
Juhayna that is taken 23% of total Market share .
Demand on juice in Egypt as shown in next figure is growing and this is represents a big
opportunity for AGA to focus Egyptian market and utilize many aspects of it.
52367
36339
24963
17096
24033
76252
39212
23608
30184
6803
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
Mango juice Guava juice Apple juice Orange juice Grapes juice
Sales amount in international market year (2012-2013)
2012 2013

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Source of total demand of juice from: Arab African conferences and exhibitions
11-Customers Expectations and behavior factors :
Like any Juice consumer, our current consumers main motive to use AGA juice when they
feel thirsty or need a refreshment, with the growing life standards and increased levels of
information ,Globalization , education standards , and health awareness becoming more
increasingly important factor in consumers decisions and their food preferences in recent
years.
The demand to produce a healthy product free of artificial colors and preservatives, with
suitable nutrition that responds to body and health needs is mandatory.
0
50
100
150
200
250
2007 2012 Forcasting for 2016
139.8
181.4
229.2
3.96 0.891 1.13
Juice demand in Egypt (Million Liters) compare with
AGA production fromCan juice
Juice demand (Million Litres) AGA production from juice (million litres)

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Other Behavior Factors:
People are willing to pay a premium for higher quality, tastier fruit juice. Since our Juice
provides more nutrition than other drink Juice
There is value attributed to the more attractive beverage of nectar fruit juice.
More people are tend to enjoy a high-quality juice without the mess of making it themselves.
12-Price overview and value added.
AGA starts to produce AGA Nectar in a can container of 330ml size in since 2002 and
there are five flavor: Mango, Orange, Grapes, Guava and Apple price of a whole box of
mango can costs 17.40 L.E at an average cost of 1.45 pounds per 1 pack ,selling price is
at 35L.E and sometimes a discount is being offered as 10% discount to be 31.50L.E final
price, at an average price of 2.625 pounds per Can.
End User price is at 3.75L.E with profit margin of 1.125L.E, and for the other flavors
(Orange, Grapes, Guava and Apple) whole Box costs 15L.E, 1 can at cost 1.25L.E selling
price is at 33L.E for each box and sometimes a discount is being offered at 10%, at an
average of 2.475 pounds per 1 can.
End user price at 3.50L.E with profit margin of 520.1L.E. Profit margin for sellers
/outlets is nearly 42% from the Purchasing price.
Since our product is a “Convenient Good" type of products so it is meaning high turnover
for the products and more revenue to be generated.
From customer point view the price of can is quite reasonable if we compare it with other
juice product Like RanI Mango juice that is 4.25L.E per Can and it is 240ml of size only
and Kahha Nectar mango can as 3.00 L.E with size of 200ml only so our product give
customer more value package.

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13-Strategic Marketing Analysis
Strategic marketing analysis includes marketing objectives, marketing strategies,
marketing mix,
As for the New Marketing plan
We will be focusing on company’s vision, mission, goals as well as its core
competency. Out of meeting we have conducted we all are in agreement of below
which will require to be written and well formally documented
Vision
We envision a marketing system that quickly and efficiently moves wholesome,
affordable agricultural products from the farm to the consumer. AGA product must
be diversifiedas the consumer need. We have to create our market demand and
grow awareness among all.
12205
5370 4885
2945
4630
17085
7520
6425
3975
6480
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Mango juice Guava juice Apple juice Orange juice Grapes juice
Sales amount in local market in year (2012-2013)
2012 2013

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Mission
AGA mission is to provide the highest-quality of Juice. To attract and maintain
customers. By adhering to this maxim, everything else will fall into place.
AGA focus on the following missions,
o providing Hygienic food
o Finest quality of our product
o Keeping the affordable price
o Provide energetic and nutritious food
14-Marketing strategy:
We will seek first to create customer awareness and develop customer base, we seek
to convey the message that we are the finest producer of high end nectar juice
This message will be communicated through a variety of methods. The first method
will be advertisements. Some of the advertisements will be co-branding with the
Farmer's Market.
The strategy of AGA is to focus on wide market which is health/natural food stores
that serve the young active professional.
15-Marketing objectives
1- Generate brand equity
2- Create a region-wide sales staff.
3- expand the operation , and staff in production and more in delivery and sales
4- Maintain tight control of cost and operation during expansion.
5- Expand its operation to include distribution to stores within the entire Arab Region
this year
6- Maintain positive, steady growth each quarter
7- Experience an increase in new customers who are turned into long-term customers.
8- establish a connection between AGA and healthy active life style

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16- Marketing mix
We are going to introduce some acts and actions to improve our product positioning
using product/pricing/promotion and distribution strategies
16.1- Product strategy
 Modify and changed Can logo and design
 Introduce slot bottle for easiness of juice flow that allow natural fruits fibers to flow
as well.
 Provide training sessions for sales agents in the supply chain and distribution raise
our merchants and consumers product awareness.
 For the global market more researches are required to better understand opportunities
and points of improvements
 Target Market will be as following
Children
Teenagers
Active adult female/male
School, College, and Universities students
Old aged people
16.2- Promotion and advertising Strategy
AGA Main act will to co-sponsor local athletic charitable events to raise the visibility
of the brand name.
Also the following will take place
 A mixture of advertisements and networking will be used to increase visibility
through a multiple advertising campaigns
 The advertisement will be done on different media e.g. television, and billboardto
make people aware of the product

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 In different occasion we will open special sales center where attractive point of
purchase display would be arranged to create positive image consumer in mind.
 Sometimes we will offer free sampling for the mass sale of product
16.3- Distribution and Sales Strategy
 The sales strategy is to build customer loyalty in the new markets. AGA Juice will
increase its sales force to focus on the new markets.
 We choose the intensive distribution for our product. We will supply our product all
over the country on the basis of our product demand so that the consumer can get the
product easily.
 We will provide different incentive to our distributor.
16.4- Pricing strategy
 Mainly we will utilize a variety of pricing strategies
 We will mainly use a discount pricing strategy as part of product promotions
increase traffic and attract new customers.
 Also we will introduce a new size Cans at 200 ml that can be priced at 2.00 pounds
for children. and we can offer this specific product at a low end price of 1:50 LE as
market penetration price strategy
17- Other Management practices that is highly recommended from our side
 introduce a team of expertise to build a Marketing Management department to
continue work on product positioning and promotion and marketing plans
 invest in multiple marketing research to evaluate product value added and identify
ongoing opportunities

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18- Reference and Notes
A Group Meetings with:
1. Mr. Abel halim Ibrahim the Export manger
2. Mr. Ibrahim Rehaat Sales manger
3. Mr Said El gohary Financial manger
WebSites:
1. http://education-portal.com/academy/lesson/pricing-strategy-in-
marketing-definition-types-examples.html
2. data.worldbank.org/country/Egypt-Arab-republic
3. THE WORLD FACTBOOK www.cia.gov
4. en.wikipedia.org/wiki/Demographics_of_Egypt

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