The document outlines a plan to launch a new Hugo Boss fragrance called Energise in Egypt. The plan involves extensive market research on the target demographic of 18-28 year old men. It recommends focusing marketing efforts on social media, TV, and cinema to build awareness. The plan exceeds the budget to construct a strong brand image. It aims to partner with distributors and retailers to achieve high distribution in flagship stores and department stores. Financial projections estimate the launch will be profitable by the second year through this comprehensive brand building and customer development strategy.

1. HUGO BOSS ENERGISE LAUNCH
Omar Nour El Din
Mayar Moussa
Aly Boghdady
Omar Hussein
Team Number: 18

2. HUGO BOSS ENERGISE LAUNCH
Executive Summary:
• Launch the latest Hugo fragrance designed for youth in Egypt.
• First launch since Dark Blue (1999) > Big Blockbuster Launch.
• Challenging and Interesting Case.
• 3 main solutions: Market Research, Brand Building, and Customer Development.
• Profits by the second year.
• Almost 20% market share at the end of 5 years.

3. HUGO BOSS ENERGISE LAUNCH
Objectives:
• Achieve at least breakeven profitability over 5 year period.
• Market leadership value share by the end of 5 years.

4. HUGO BOSS ENERGISE LAUNCH
Key Issues:
• Effectively reach prime prospects.
• Similar positioned competitors have prices of around $45.
• Marketing Budget for year 1 is capped at $2 Million.
• Reach at least 70% awareness in year to build up the required market share.
• Competitors Trade Margin is at 23%.
• Reach at least 25% numeric and 50% weighted distribution in year 1.
• Inflation impact on COGS is twice as high as on any other costs.

5. HUGO BOSS ENERGISE LAUNCH
Strategic Recommendations:
Based on the key issues discussed above, below are the 3 elements that we
believe will lead to a perfect brand launch:
1- Market Research
2- Brand Building
3- Customer Development

6. HUGO BOSS ENERGISE LAUNCH
Long Term Solution:
• Continuous Consumer Market Research – Demographics change often.
• Strong marketing campaign at the launch.
• Strong marketing campaign at the 4th and 5th year – Revitalize the
brand.
• Continuous Business Customer Development – Negotiate for a win-win
outcome.

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Short Term Implementation Plan:
Market Research:
Target Audience:
• 18 – 28 year old men who are on the move and live life to the full.
• Prime Prospects: Male University Students.
• Segmentation: 1/1+.
• Place: Cairo, Alexandria.
• Geographic: Major Cities (Mainstream Locations).
• Demographics: 18 – 28 years old / income>3000 L.E. / Students or Fresh Grads.
• Psychographic: Active, Urban, Trendy.
• Behavioral: Consumers who travel and shop a lot, who are active & on the go

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Short Term Implementation Plan:
Market Research:
Based on our market research, a very
high percentage of our customers
know about their fragrances from
Social Media and Events, Cinema, and
TV respectively.
12.95336788
61.13989637
20.7253886
1.554404145
2.590673575 1.03626943
How Did you hear about the last perfume you bought?
TV Social Media and events Cinema Prints( magazines and newspaper) Outdoor (Billboards) Radio

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Short Term Implementation Plan:
Market Research:
72.5388601
25.90673575
0.518134715 1.03626943
Where Do you normally Buy Perfumes
Flagship Stores (Mazaya ,faces and ect ..) Department Stores (Debenhams)
Privately Owned Luxury Beauty shops(Ego) National specialist beauty luxury Shops
?
Based on our market research, our
target consumers buy their
fragrances mainly from Flagship
Stores and Department Stores.

10. HUGO BOSS ENERGISE LAUNCH
Short Term Implementation Plan:
Brand Building:
• University Employment Fairs (May 2016 & October 2016)
• Distribute 2 ml samples on university students during
employment fairs.
• Private Launch Event (End of May 2016)
• Send free 125 ml bottles to Social Media Influencers and public
figures along with an invitation to a private event.
• Use the Influencers’ social media to promote for the fragrance.

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Short Term Implementation Plan:
Brand Building:
• Launch of the fragrance (6th of June)
• Intensive TV ads during the month of Ramadan.
• Activation by the beaches and in crowded areas in the summer
(July 2016 & August 2016)
• Provide 2 ml samples and sell the product.
• Sponsor college concerts and events ( October 2016 – December
2016)
• Provide 2 ml samples.

12. HUGO BOSS ENERGISE LAUNCH
Short Term Implementation Plan:
Brand Building:
Reach 70% Awareness in year 1:
• TV - 30% Awareness
• Very high reach during Ramadan (month where target consumers watch TV the
most). Strong reach in other months on other channels such as MBC.
• More Cost Efficient than Radio and Print.
• Outdoor – 10%
• Very strong brand image for a launching phase.
• Cinema – 20%
• Ideal for our target consumers.
• Sampling and other ideas stated in the previous slides – More than 10%

13. HUGO BOSS ENERGISE LAUNCH
Short Term Implementation Plan:
Brand Building:
Exceeded the capped budget of 2M by $350,000:
1- To be able to construct a very strong brand image.
2- The expected profits in the upcoming years will offset the loss
in year 1 (explained in more details in Financials).

14. HUGO BOSS ENERGISE LAUNCH
Short Term Implementation Plan:
Brand Building:
Budget Priority:
These are the prioritized medium if there is a budget cut:
1- Social Media and Events
2- TV
3- Cinema
4- Outdoor

15. HUGO BOSS ENERGISE LAUNCH
Short Term Implementation Plan:
Customer Development:
Channel Type:
We chose the following:
• Department Stores.
• Flagship Stores.
• Medium Size Perfumeries.
• Small Economic Perfumeries (Urban)

16. HUGO BOSS ENERGISE LAUNCH
Short Term Implementation Plan:
Customer Development:
Why did we choose the above channel types?
• Because of the classification of the fragrance based on its price range
(not a rural fragrance and not a luxury one).
• Because of the results of the survey mentioned in the market research
part.

17. HUGO BOSS ENERGISE LAUNCH
Short Term Implementation Plan:
Customer Development:
We reached a 61.2% numeric and 50% weighted distribution!

18. HUGO BOSS ENERGISE LAUNCH
Short Term Implementation Plan:
Customer Development:
Distributor Choice:
• Based on the Coverage.
• Ex: Beautico covers 220 of the Department stores and Alfa covers
100.
• Based on the Commission.
• Ex: Alfa takes 18% for covering 300 Flagship Stores while Beautico
takes 19%.
• A mixture of 2 distributors = more bargaining power for us.

19. HUGO BOSS ENERGISE LAUNCH
Short Term Implementation Plan:
Customer Development:
Trade Margin:
Trade Margin for the 1st year is set at 24% based on the following terms:
• Zero Rebates
• Extra promotion by the store staff
• High material compensation (Cover page of any prints issued
by/sponsored by the store)
• Any pricing decisions taken by the store cannot affect the trade margin

20. HUGO BOSS ENERGISE LAUNCH
Short Term Implementation Plan:
Customer Development:
Winning at the First Moment of Truth:
Since 70% of the purchase decision is made in-store, we exceeded the
budget limit by a $100,000.
In-Store Activities:
• Special Shelving in Department Stores – $225,000
• Co-Marketing Events in Flagship Stores – $375,000
* Awareness increased by 6%

21. HUGO BOSS ENERGISE LAUNCH
Financials:

22. HUGO BOSS ENERGISE LAUNCH
Financials:

23. HUGO BOSS ENERGISE LAUNCH
Financials:
NPV & IRR

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Risk & Mitigation:
• Rise of a revolution
• Devaluation of the Egyptian Pound.
Contingency Plan:
• Not a Necessity = High Elasticity of Demand = Discontinue the
Product.

25. HUGO BOSS ENERGISE LAUNCH
Wrap Up:
Key Elements to solve the case:
• Understanding both: the consumer & the customer.
• Develop a strong brand image.

26. HUGO BOSS ENERGISE LAUNCH
Thank You!
Any Questions?