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Ten Megatrends Shaping Marketing in Egypt Today

Ten Megatrends Shaping Marketing in Egypt Today. Dr. Ahmed Taher Managing Director Integrated Marketing Solutions taher@ims.com.eg. Megatrends. What are Megatrends? Behaviors that are adopted, copied, practiced, observed and accepted as social phenomena.

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Ten Megatrends Shaping Marketing in Egypt Today

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  1. Ten Megatrends Shaping Marketing in EgyptToday Dr. Ahmed Taher Managing Director Integrated Marketing Solutions taher@ims.com.eg

  2. Megatrends • What are Megatrends? • Behaviors that are adopted, copied, practiced, observed and accepted as social phenomena. • First coined by John Naisbitt 1982, 9 million copies sold.

  3. Marketing What is Marketing? Management of perceptions to direct behavior

  4. Ten Megatrends • Retailing Boom • Savvy Consumers • Mobile Culture • Individualistic Society • Low (No) Customer Loyalty

  5. Ten Megatrends • Branding Polarity • The rediscovery of PR and CSR • Proliferation of Media • Direct Marketing • Diverse Lifestyles

  6. 1. Retailing Boom • Roots: • First-time-in-the-toy-store phenomenon • Opening up of importation of ready-made garments • Chains seeking growth and franchisees meeting targets • Shopping and window shopping as entertainment • Implications: • Malls, mega malls, hyper malls, … • Pull for consumer products • Factory outlets and other new retailing formats • Need for credit and financing options

  7. 4 Strategic Dimensions of Retailing • External Consumer Expectations • Internal Retailing Mix Variables • Margin and Inventory Goals • Assortment and merchandise • Location of outlets • Customer Services offered

  8. Building a Retailing Marketing Strategy • External Consumer Expectations • Convenience in space and time • Atmosphere or ambience • Merchandise • Price • Information/interaction • Service

  9. Building a Retailing Marketing Strategy • Internal Retailing Mix Variables • Physical Facilities • Merchandise/Merchandising • Pricing • Promotion • Services • Organization/Personnel

  10. Critical Developments in Retailing • The dominance of general merchandise “Power Retailers” • Sharp definition of customers and needs • Willingness to take risks via market testing and trend forecasting • Ordering early and selling fast • High investment in intelligent IT • Commitment to deliver value • Customer service to create an “experience” • Category killers, private labels, v. deep assortments

  11. Critical Developments in Retailing • The increasing polarity of retailing • the growth of limited line, tightly managed, highly focused specialty chains (high touch). • the growth of very large stores which rely on technology for logistics control (high tech). High touch Conventional stores High tech

  12. Critical Developments in Retailing • The increasing power of retailers in the channels for packaged goods • The growing importance of convenience • The growing impact of computer technology • Increased focus on legitimate pricing • L L Location P P Positioning • Mergers and Acquisitions.

  13. 2. Savvy Consumers • Roots • Learning new determinants of quality. • Branded offers. • Competitive Pressures. • Multiple countries of origin. • Implications: • The positioning Game. • Pricing Games (Tactics). • Seek Differentiation OR Cost Advantages OR Focus. • Raise Quality Standards to Global Level.

  14. Multiattribute Model

  15. 3. Mobile Culture • Roots: • Willing to Relocate for Better (Environment, Pay,….etc). • New Cities Promising Different Quality of Life. • New Rentals Law. • Availability of financing Car and Home Purchase. • Mobile Telecommunications. • Implications: • Market for qualified HR is much more competitive. • Second Wave Theory. • Boom of financial services and retail banking. • New homes, cars, and schools for kids.

  16. 4. Individualistic Society (I love me) • Roots: • Gap between generations • Dual (or more) income homes • Busy, irregular work and break schedules • Pleasure-driven behaviors (versus family-driven) • Implications: • From food preparation to food consumption at home • Repackaging of products for individual use • Appealing to individuals (not families) in ads and entertainment

  17. Appeal to individuals

  18. 5. Low (No) Customer Loyalty • Roots: • Competition drove the quality to acceptable level. • Quality slipping over time under cost pressure or poor management. • Variety seeking behavior (toy-store phenomenon) • Bipolar Price Sensitivity. • Implications: • Developing Follow up and feedback systems. • Creating Value for money (through research & services). • Adopt aggressive cost & quality management practices • Invest in Branding and Product Development

  19. 6. Branding Polarity • Roots: • Brands’ symbolic power for high involvement products • Risk of failure in high ticket items • Power brands require saving on commodities to balance budget. • Local brands still not convincing • Implications: • Justified investment in Branding and Communication • Increase consumer involvement where possible • Use fear appeal to push branded products

  20. Some Branding Concepts A Brand is a promise of consistent delivery on a set of attributes. The Brand Equity is the extent to which customers are willing to pay (a premium) more for your brand given the opportunity to buy a very similar product without a brand. The internal and external Brand Audit is important to measure the progress and success of the branding strategy.

  21. Some Branding Concepts The Brand Contract which is a documentation of the brand promise to be shared with all employees, new hires and customers of course. It strengthens the brand, and gives it a real and consistent meaning in the mind of all stakeholders. It also guides all future marketing communication and the behavior of the sales and customer service teams

  22. Some Branding Concepts Brand Extension is attempting to extend the brand promise to new categories. The Corporate Identity Manual (CIM) is also a very important document that will be used for quality assurance of all brand communication. It will allow for seamless switching from one marketing communication agency or supplier to another.

  23. 7. The Rediscovery of PR and CSR • Roots: • Social unease with high business profits. • Stock market and small investors impact on business • Tax benefits of CSR • Political gains from PR • Implications: • Pre-emptive PR is cost-effective and better • Investor relations is a must for joint stock companies • Play politics only when you can afford it. • Outsource PR to professionals and measure

  24. Publics (in PR) Groups of people who have influence on, or interest in, an organization or a company

  25. Shareholders Employees (Internal public) Suppliers Financial partners Distributors (channels) Media Government agencies Competitors Interest groups Unions Opinion leaders Potential recruits Business community Generic List of Publics

  26. CLAIMS of Public Relations Change Launch Acquire Inform Maintain Straighten

  27. Company Image Policy Change Location Ownership

  28. Product/ Service Project Launch Share issue

  29. Media coverage for events Credit for activities Acquire Support of Gov. agencies

  30. The Stock Market The Trade Inform Opinion Leaders Labor Market Employees

  31. Confidence of Shareholders Good community relationships Maintain Excellent relations with the media Staff stability Management employee relationship

  32. Any public misunderstanding Straighten Product recall or return

  33. Communication Sponsorships Public Seminars Media Relations Gifts Events Tools of Public Relations Advertorials Newsletters Web sites Networking Annual reports Philanthropy

  34. 8. Proliferation of Media • Roots: • Dissatisfaction with the “official” media • Cable TV, private radio licenses, independent press • Home entertainment growth • Speed, verification, and instant gratification • Internet globalization culture • Implications: • Need to assess media reach and impact factors • Need for independent media research & monitoring . • Need for integrated Marketing communication (IMC) • Consider direct marketing option

  35. 9.Direct Marketing • Roots: • Proliferation of media (prohibitive cost) • Competition for customer attention • Availability of Database, postal & telco technologies. • Advances in CRM and credit tools • Implications: • Invest in CRM and payment gateways • Learn offline and online catalog business • Integrate direct marketing into your marketing mix

  36. 10.Diverse Lifestyles • Roots: • The overwhelming speed of life and work • Dual income (or more) families • The different types of pressure in many jobs. • Increase in disposable income and ambitions • Examples: • Cocooning - Religious nostalgia • Motel homes - Hotel Homes • Life’s little pleasures • Multitasking

  37. Diverse Lifestyles • Implications • The delivery culture • The café culture • On the run culture • Home entertainment • Shopping/Eating out as entertainment • Less home visits and guest dinners

  38. So What Can you do about it?

  39. 7 Directions to Invest in: Branding and Positioning (and communication) Retailing first-hand Quality and Cost Management Developing and Retaining Talents Marketing Research and CRM Proactive Public Relations New Product Development

  40. 7 Dimensions to Investigate: Second Wave theory Credit and Financing Options Media Reach and Impact Integrated Marketing Communications Direct Marketing Options Online and Off-line Catalogs Develop New Products and Services for New Lifestyles

  41. Thank you

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