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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 l.jpg

Ten Megatrends Shaping Marketing in EgyptToday

Dr. Ahmed Taher

Managing Director

Integrated Marketing Solutions


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  • 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.

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What is Marketing?

Management of perceptions to direct behavior

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Ten Megatrends

  • Retailing Boom

  • Savvy Consumers

  • Mobile Culture

  • Individualistic Society

  • Low (No) Customer Loyalty

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Ten Megatrends

  • Branding Polarity

  • The rediscovery of PR and CSR

  • Proliferation of Media

  • Direct Marketing

  • Diverse Lifestyles

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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

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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

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Building a Retailing Marketing Strategy

  • External Consumer Expectations

    • Convenience in space and time

    • Atmosphere or ambience

    • Merchandise

    • Price

    • Information/interaction

    • Service

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Building a Retailing Marketing Strategy

  • Internal Retailing Mix Variables

    • Physical Facilities

    • Merchandise/Merchandising

    • Pricing

    • Promotion

    • Services

    • Organization/Personnel

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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

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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).







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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.

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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.

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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.

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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

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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

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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

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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.

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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

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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.

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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

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Publics (in PR)

Groups of people who have influence on, or interest in, an organization or a company

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Employees (Internal public)


Financial partners

Distributors (channels)


Government agencies


Interest groups


Opinion leaders

Potential recruits

Business community

Generic List of Publics

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CLAIMS of Public Relations







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Media coverage

for events

Credit for



Support of Gov.


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The Stock










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Confidence of


Good community



Excellent relations

with the media






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Any public



Product recall

or return

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Public Seminars

Media Relations



Tools of

Public Relations



Web sites


Annual reports


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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

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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

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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

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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

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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

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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