2016

Corona Marketing Plan

Prepared by

Wael Khaled Hussien

Abd-Allah Farahat

Islam Hamid

Noha Sarwat

Mohamed Shehab

Supervised by

Dr. Ashraf Talaat

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 Executive summary

C
orona chocolate, is a heritage in Egypt, has seen major success in its first 50
years due to the company's unique business model of immersing guests in a
cultural experience and social hub. Lately the company suffers from quality,
marketing problems that affects its financial position.
External factors -macro and micro factors- to take into consideration during expansion
include, most significantly, the economy and resection in foreign tourism, the
regulations on new tariffs on imports, and a city culture that relates to the brand image
and culture. The main competitors are few but well established, though te3ypically
higher in price.
Further important factors to combat include low brand awareness and infrequency of
purchase. Communication objectives Corona's IMC strategy in Egypt over the next 12
months are as follows:
1. Build brand awareness to 30% of the national target market by using print, digital,
and social mediums.
2. Build brand awareness to 70% of the Cairo and Alexandrina target market. This
will be hastened through word of mouth generated by students.
3. To maintain a constant frequency with 4% of the national target market, social
media will be used on a weekly basis to reinforce brand awareness and interest.
4. To reach 50% of the national target market with at least three exposures,
advertising in print and digital mediums will be used, specifically around the times of
events such as corona football cup for schools
In order to reach Corona's target market youth, males and females, 6-20 years old, and
located in capital cities, corona will implement a number of media strategies,
including the use of: print media (newspapers: AL-AHARAM, magazines: MIKEY
and SAMIR , ALSHBAB and NOS ALDONAI), and social media (Facebook and
Youtube).This varied media mix will allow corona to obtain synergy, with broad
reach and constant frequency on different platforms, reinforcing brand awareness and
influencing interest and opinion. An initial budget of 20,000,000 EGP, or 15% of
yearly projected revenue, will be necessary for initial brand building, but will be
slashed to an estimated 5% in subsequent years with an emphasis on social media use.
Monitoring effectiveness will involve primarily measuring receipt of promotional
offers, inventory, and monitoring guest reviews and comments on networking sites.

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 HISTORY

The Alexandria confectionery & chocolate company – Corona was established year
1919 by Tommy Khresto, to become the first Confectionary & Chocolate Company in
the Egyptian market. The company was nationalized in 1963 & become the icon of
the public sector in sweet snacks and soon it became close to all Egyptian consumers'
hearts triggering desire. Throughout the years, Corona established for itself a solid
platform becoming the "Quality Manufacturer since 1919". Corona then was
privatized in 2000, bought by one of the leading private holdings that have diversity
within the Egyptian Market & Beyond. Now, Corona Company is known with its
nostalgic portfolio within many snacking categories with famous brand names like:
Chocolate Rocket, Bimbo, Cocoa, Wafers, Biscuits, Candies, and Toffees & Gum.

Portfolio

 Chocolate:
 Milk Chocolate And Hazelnut
 Cooking Chocolate
 Dark
 Lite
 Napolitan
 Pocket
 Rocket
 Biscuits:
 Bimbo
 Coconut Biscuits
 Mary
 Negrita
 Vanilia Biscuits
 Cocoa Powder.
 Wafers:
 Trick-Trak
 Pocket
 Toffees and Gums.

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 External analysis
Macro analysis- PESTEL
Egypt, is a transcontinental country spanning the northeast corner of Africa and
southwest corner of Asia, via a land bridge formed by the Sinai Peninsula. Most of its
territory of 390,000 square miles lies within the Nile Valley of North Africa and is
bordered by the Mediterranean Sea to the north, the Gaza Strip and Israel to the
northeast, the Gulf of Aqaba to the east, the Red Sea to the east and south, Sudan to
the south and Libya to the west. With over 84 million inhabitants, Egypt is one of the
most populous countries in Africa and the Middle East, and the 15th most populated
in the world. The large regions of the Sahara Desert, which constitute most of Egypt's
territory, are sparsely inhabited. About half of Egypt's residents live in urban areas,
with most spread across the densely populated centers of greater Cairo, Alexandria
and other major cities in the Nile Delta.
Key Features and benefits of Egypt
 Understand how Egypt can be used to plan business investments or market
entry through a holistic view of the country.
 Gain an understanding of the political situation in Egypt, including key figures
in the country and governance indicators.
 Understand customer demographics in Egypt through analysis of income
distribution and the rural-urban split, as well as healthcare and education.

Egypt Country Information

Population 91.72 million (2016)

GDP $330.78 billion (2015)

GDP growth 4.5% (2015)

Exports $9920.88 billion (2015)

External debt 84.39 billion (31 December 2014)

Public debt 88% of GDP

Credit rating B-

Life Expectancy 71

Lower Middle
Income Level

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Political environment
The Egyptian Constitution provides for a strong executive. Authority is vested in an
elected president who can appoint one or more vice presidents, a prime minister, and a
cabinet. The president's term runs for 6 years. Egypt's legislative body, the People's
Assembly, has 454 members, 444 popularly elected and 10 appointed by the
president. The constitution reserves 50% of the assembly seats for workers and
peasants. The assembly sits for a 5-year term but can be dissolved earlier by the
President. There also is a 264-member Shura, which is consultative, Council, in which
88 members are appointed and 174 elected for 6-year terms. Below the national level,
authority is exercised by and through governors and mayors appointed by the central
government and by popularly elected local councils. In March 2007, Mubarak
introduced several constitutional amendments that would increase presidential powers
and, more significantly, ban any political parties based on religion, race, or ethnicity.
The amendments were put to a popular referendum and, despite low voter turnout and
boycotts by opposition groups, passed with 75.9% approval. The external financial
situation remains healthy amid the good trend on foreign currency earnings and the
increase in foreign direct investment fuelled by the privatizations. Debt service is low
and Egypt is building up foreign exchange reserves. However, the fiscal deficit and
public sector debt remain a source of concern. Controlling public spending and
reducing the debt necessitates a spending overhaul that will take time. Regional
conflicts and poverty have strengthened Islamist opposition movements. In this
context social climate is tense and officials have exercised caution in pursuing
reforms. The biggest and strongest aspects and plans include:
The business climate has benefited from an active reform program and a regional
economic boom.
Egypt boasts diversified sources of foreign exchange (the Suez Canal, tourism, private
transfers, and oil and gas exports).
Foreign exchange reserves are high.
The country enjoys the political and financial support of Western countries.
Economical Environment
In the past year, the cabinet economic team has simplified and reduced tariffs and
taxes, improved the transparency of the national budget, revived stalled privatizations
of public enterprises and implemented economic legislation designed to foster private
sector-driven economic growth and improve Egypt's competitiveness. Despite these
achievements, the economy is still hampered by government intervention, substantial
subsidies for food, housing, and energy, and bloated public sector payrolls. Moreover,
the public sector still controls most heavy industry. Tourism has become the single
biggest foreign exchange earner. However, there is some concern that current unrest
will impact tourism. The interim government announced an economic stimulus
package amounting to $3.22 billion in August 2013. In October 2013, it was increased

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to $4.27 billion. The international economic downturn slowed Egypt's GDP growth to
4.5% in 2009, predominately affecting export-oriented sectors, including
manufacturing and tourism. Unemployment is rising. In 2009 the government
implemented a $2.7 billion stimulus package favoring infrastructure projects and
export subsidies, and is considering up to $3.3 billion in additional stimulus spending
in 2010 to mitigate the slowdown in economic growth. In September 2009 - Egypt
was ranked among the world’s 10 most active reformers for the fourth time. Egypt
made business start-up less costly, expedited the construction permit process,
expanded the information available from the private credit bureau, and created
commercial courts to speed up contract dispute settlements.

Social Environment
Egypt’s total population stood at approximately 80 million. Out of this approximately
90% are Muslims while the remaining are Christians. Most of the population inhabits
the area near the NileRiver and almost half of Egypt’s population is urban, living in
the densely populated cities such as Cairo and Alexandria. One of Egypt’s biggest
socio-economic problems is the high unemployment rate which has been growing
over the years. The unemployment rate, which has averaged more than 10% over a
decade, increased to over 12% in 2005–06. With the population growing at 1.8% per
annum, the economic growth of 4.4% is not enough to curb the unemployment rate.
While the average growth in employed population during the last five-year period
stood at 2.3%, the rise in unemployed population has been much higher during the
same period averaging around 8%. The high rates of unemployment and population
growth coupled with meager wages in most of the public sector companies contribute
to the poverty levels, with close to 20% of Egypt’s population below the poverty line.
A big challenge for Egypt in the near future will be to create jobs, as the population
within the 20–45 age-group constitutes around 65% of the total population. The
education indicators of Egypt project a poor image of the education system. Only
about 58% of the population is literate and there is a big difference in the literacy rates
for males and females. Male literacy rate is around 68%, while female literacy rate is
just about 47%, indicative of gender disparity. The National Council for Women, a
nodal government agency that works for the welfare of women in Egypt, aims to
completely eradicate illiteracy among females.

Technological Environment
Egypt's IT spending is expected to increase from US$1.3bn in 2010 to US$2.1bn by
2014 and the Egyptian IT market growth is forecasted to remain below pre-economic
crisis levels in 2010, but economic recovery, tenders delayed from 2009 and higher
incomes boosted by pay raises for civil servants and other groups should help to keep
sales on an upwards trajectory. A number of policies have been implemented to attract
foreign investment in IT outsourcing, including local employment subsidies, lower
corporate taxes and deductions for training costs. The Egyptian minister of state for
administrative development has said that 200 government services will soon be
available online through a new e-government portal. The portal will offer 70 services

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 in both English and Arabic. According to the Ministry for Administrative
Development, more than 20 government agencies currently offer services and licenses
online. Egypt's computer hardware sales are projected at US$821mn in 2010 and are
forecast to reach around US$1.3bn in 2014. Egypt's IT market will stay hardware
dominated, with spending on PCs sustained by initiatives like the 'Computer for Every
Student' and 'PC for Every Home' programs. Hardware accounted for an estimated
62% of Egypt's IT spending last year. Households account for 20-25% of unit sales,
with almost 1-1.5mn households said to possess a computer at present. Overall
spending on software remains rather low, which reflects the relative immaturity of
Egypt's IT market. One market driver has been a significant fall in software piracy,
with the illegal software usage rate, as measured by the Business Software
Association, falling a further 1% to 59% in 2008.

Table 1: PESTEL analysis

Implications and importance

Potential
PESTLE Notes
impact Time Type Impact
Relative
Frame Importance

The recent direction of the

12-24
Political government toward protecting the Medium Positive Increasing Important
month
Egyptian production

Foreign trade regulations Medium 24+ Positive Unchanged Important

Devaluation of the Egyptian pound

gives the company an opportunity to Medium 24+ Positive Increasing Important
Economic export

12 - 24
Currency exchange problems High Negative Decreasing Critical
month

12 - 24
Hyper inflation High Negative Unchanged Critical
month

The change in life style toward more

Medium 0-6 Positive Increasing Important
Socio-cultural healthy and green

The increase of birthrates last years

High 24+ Positive Unchanged Important
in Egypt

Technological Low R&D expenditure Medium 24+ Negative Unchanged Important

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 12-24
Social media High Positive Increasing Important
months

Egypt environment is not suitable

for cultivating the coco beans which 24+
Environmental High Negative Unchanged
will lead to importing the raw months
material

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 Micro Analysis
The market analysis

The Middle East is one of the Top 10 largest confectionary markets in the world, in
Egypt Chocolate sales have steadily grown, with a rate of 2.5 percent annually since
2001, with the market now 2015 valued at $382 million, $ 372.45 million in 2014, $
363.14 million in 2013, $ 354.06 million in 2012 and $ 345.21 million in 2011 with
the same proportion. Egyptian Chocolate market sales have steadily grown, with a
rate of 2.5% annually since 2001, with the market now valued at $382 million.

Market Growth
390

382 380
372.45
370
363.14
360
354.06
350
345.21
340

330

320
2015 2014 2013 2012 2011

According to the chocolate Market studies in Egypt we found that:

 kraft owns 47% market size, Mars owns 26%, Nestle owns 10% and others
including Corona owns 17%.

Market Share

17

10 47

26

Kraft 47 Mars 26 Nestle 10 Others 17

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 Chocolate market in Egypt is divided into two types and produces high quality
cocoa and chocolate regular distributed in weddings and produced from imported
cocoa butter substitutes.
 The average daily price of the cocoa trade to 2.819$ per ton in January 2014
compared to 2.825$ per Ton in the forthcoming December 2013 to decline by $ 6,
according to the report of the International Cocoa Organization for the month of
January.
 According to Chairman of the Export Council regular chocolate get a larger
percentage of sales, due to the weddings use because they are inexpensive
compared to the luxury chocolate.
 "Covertina" chocolate company acquires 40% of regular chocolate produced from
cocoa butter substitute sales, in addition to other companies such as Al-Horya, Al-
Horya 2000 and Soiza as best seller in terms of quantity.
 Chocolate importing volume is weak, because the imported items, especially from
Switzerland, very expensive.
 According to the head of the Division of sweets Chambers of Commerce
Federation Salah Abed, no accurate data on the Egyptian market Cadbury" and
"Mars." sales acquires the largest volume of sales in the Egyptian market compare
to local brands
 The head of sweets Division of the Chamber of Food Industries Federation of
Industries Hassan Fundy, said that "Cadbury" and "March" dominate more than
95% of chocolate sales of high-quality, ranging prices of the piece between 2 to 5
pounds, and own a higher level of efficiency, technical and size great publicity, is
not available in local companies.

Competitor analysis
Kraft foods
Kraft Foods Egypt is part of Mondelēz International group of companies.

Its presence in Egypt dates back to 1998 as an importer of global products. The
company globally and locally grew through strong acquisitions.

The big acquisition came in the year of 2010 when Kraft Foods globally acquired
Cadbury to be part of the Kraft Foods family all around the world. Currently, we have
in Egypt 4 state-of-the art production factories; with operation focus on 4 categories
and 9 brands.

Kraft Foods Egypt is the market leader in Chocolate, Gum, Candy, Powdered
Beverages, and one of the major players in Biscuits. Their local world-class
manufacturing capabilities and local market expertise produce Egypt’s favorite and
leading snack foods.

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Kraft Foods net revenues rise from $11.5bn to $13.2bn worldwide.Kraft Foods Egypt
joins 30,000 employees from 60 countries in volunteering to fight hunger.

Products

 Cadbury Dairy Milk.

 Flake.
 SMS.
 Moro.
 Lunch Bar.
 Trident.
 Tuc.
 Tang.
 Halls and Clorets.
 Cadbury Hot Choco.

The resellers -distributors- analysis

 13 Show rooms
1- El-Giza Showroom
Address: Commercial Passage, Misr Insurance buildings
Beside Gize post office- Giza Square.
2-El-Alfy Showroom
Address: 14, saray El-AzbakiaSt.El-Alfy, Down Town - Cairo
3-Roxy Showroom
Address: 21, El-Sheikh AbulNourSt.Manshyet El-Bakry- Heliopolis.
4- Samcrete Showroom
Address: 8, El-MansouriaRoadHaram- Giza
5-Assuit Showroom
Address: YousryRagheb St.
El-Awqaf Buildings, Assuit.
6-El-Hadra Show Room
Address: 373, Canal El-MahmoudiaSt.ElHadra – Alexandria.
7-Camp Cezar Showroom
Address:34, Memphis St., off Abdel MoneimSanadSt.Campcezar, Alexandria.
8-El-Manshia Showroom
Address: 5, Elsahafast.
Opposite to Medical Complex, Elmanshia- Alexandria.
9-Roushdy Showroom

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 Address: 421, El-HorryaRoad,Roushdy- Alexandria.
10- El-Ma'moura Showroom
Address:Commercial Market, beside Menosh Restaurant, Ma'moura-
Alexandria.
11-Tanta Showroom
Address: 17, Saeed St., beside Orphans House,Tanta.
12- Zakazik Showroom
Address: Opposite to Faculty of Agriculture,Beside Youth Housing Complex-
Zakazik.
13-Suez Showroom
Address: El-Sabah Valley,El-Gomhouria St., Suez
 7 Distributor
o El Hurghada
o Aswan
o Quana
o Sohag
o Assuit
o El Mania
o El Baheraa
 Export
In the last 3 years, it expands new markets in Africa & in the Middle east.
Participating in the international & local fairs opens new opportunities for buyers to
explore the confectionaries products.
The customer analysis
 All segments are fond of chocolate products specially kids & Females
 People seeks diversified portfolio of products to fit each taste.
 Most of Egyptian society segments are in need for a good quality of chocolate
but with affordable price due to economic status (local brands are poor quality
but cheap prices can afford it easily).
 As of the beginning of 2016 according to our estimates Egypt had the
following population age distribution:

32.7 62.8 4.5

- percentage of population under 15

- percentage of population between 15 and 64 years old
- percentage of population 65+

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 30 251 115 young people under 15 years old ( 15 471 118 males / 14 779 997
females)

 58 097 648 persons between 15 and 64 years old ( 29 519 286 males / 28 578
362 females)
 4 170 781 persons above 64 years old ( 1 881 848 males / 2 288 934 females)
 We prepared a simplified model of the population distribution pyramid which
is broken down into 3 main age groups. The groups are the same as we used
above: population under 15, between 15 and 64 and population which is over
65 year old.

1881848 65+ 22882934

29519286 15-64 28578362

15471118 0-14 28578362

male female

As we can see the Egypt population pyramid has an expanding type. This type of
pyramid is common for developing countries with high birth and death rates.
Relatively short life expectancy, as well as low level of education and poor health
care are also describe such kind of population age distribution model.

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 Internal analysis
Current Mission and vision
Vision: To make it become a future Umbrella Mega Brand in Egypt & Beyond

Mission: Invest in research & development to always deliver our brands with their
nostalgic identity mixed with a Modern Twist.

Organizational structure
In the year 2000, the company was partially privatized (70%) by one of the leading
Egyptian Market Private holdings –Sonid Group (Established as a family owned holding
company in 1987, SONID operates in several strategic fields which include automotive,
food and beverage, tourism and hospitality

The Company is a corporate between Eng. Sami Saad (own 70% of Assets) & the
Government (own 30% Assets as labor). The company operates a factory in Alexandria
and has 13 distribution branches in Egypt covering 35,000 outlets. Workers claim to settle
their financial position. Now the company Total employees number is around 600.

R&D
In 2003 the company decided to sell some assets for product development and human
resources, in return Corona started a new quality system that comply with ISO 9002
requirements, and hired good calibers in the market.

Financial capability

Since July 2013, the labor didn't get their salaries, and the annual increase wasn’t
implemented.
In 25th September 2013, the factory in Alexandria was shut down for few months

Liabilities increase up to 34 M L.E and profit decreases.

Workers claimed that upon Privatization Company owned 1.2 M L.E unpacked products,
1M L.E raw materials and 2 M L.E finished products. They also claimed that Samcrete
withdrew 7 M L.E from depositors of Corona and reinvested in other companies. Third
claim was Samcrete took a loan 25 M L.E for Corona but reinvest in other companies

Marketing analysis
There is no clear marketing plan for the company

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 SWOT Analysis
Internal analysis
Strengths: Weaknesses:
 Quality system that comply with ISO 9002  Poor marketing research and plans
 National Egyptian brand.  Financial problems
 Competitive prices.  Using cheap ingredient in manufacturing.
 Poor R&D
 Using cheap ingredient in chocolate
manufacturing.
 Poor Packaging.

External analysis
Opportunities: Threats:
 Youth population under 15 which  Consumers perception about Corona as lower
represent 33% quality
 The trade agreements like COMESA,  Instability and ambiguous investment lows.
AGADIR and TAISEER. (Exporting).and  Increase in energy prices by 30%
in importing new cocoa from Ivory Coast  Instability of the currency market.
(Africa).
 Increase in interest rate to control inflation and
 Increasing in tariff on imported exchange rate
commodities including chocolate by 17%
 Rich and strong competitors with intensive
 Devaluation of the Egyptian pound by marketing efforts.
around 30% last April with a potential of
another 30% by the end of the year
 Change in life style toward healthy world
and that can be seen through the healthy
diet movements and industry by higher
demanding on organic food by 43% in
2015.
 Lack of healthy chocolate products of our
competitor’s portfolio.

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 Strategies
From the SWOT analysis we can conclude that this organization is weak and it have
to be cautions in the next period.

Corporate strategy
Stability: pause /Proceed with caution
The Pause/Proceed with Caution strategy is also a temporary strategy followed by the
firms. But however, these both differ significantly; the profit strategy focuses on
sustaining profitability until the temporary difficulties or the conditions become more
hospitable. Whereas the Pause/Proceed with caution strategy is a deliberate action
taken by the firm to postpone the strategic action till the best opportunity knocks at
the door. Thus, waiting for the right strategy for the right time.

The pause/proceed with caution strategy is often followed by the manufacturing

companies who study the market conditions thoroughly and then launch their new
products into the market. It is more prevalent in the army attacks; wherein the
reconnaissance party moves ahead to examine the situation before the troops, who
comes in full strength to ultimately, attack the enemies.

Business strategy
Comparative: lower cost focus
The generic strategy of focus rests on the choice of a narrow competitive scope within
an industry. The focuser selects a segment or group of segments in the industry and
tailors its strategy to serving them to the exclusion of others. In cost focus a firm
seeks a cost advantage in its target segment

Functional strategy
Finance plans: they need a source of fund to support manufacturing, R&D, market
research and marketing plans
R&D plans: develop new products and production line
Marketing plans :

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 New vision and mission
Vision
To be one of the big three leading chocolate manufacturer in Egypt by 2020.

Mission
We seek to produce high quality products as competitive price using modern
technology to provide high satisfaction for our customer.

Marketing plan
Marketing Strategy& Tactics
A marketing research will be performed to know the customer perception toward
corona chocolate. It aims to know the consumer profile including age, gender, favorite
flavor, affordable prices, easiest distribution channel and advertising channels.

Our strategy will be

Marketing penetration strategy: introducing current selected products dark chocolate, lite
chocolate, white chocolate, milk chocolate and Hazelnut chocolate into current market
which is Egypt.

Product development strategy:by changing packaging materials of the previously named

products to more attractive and different sizes.

Our marketing strategy will be accomplished by an intensive IMC plan that will lead
to increase our sales by increasing the awareness and gain the lost market share.

Strategy objective
1- Enhance the brand image through quality improvement
2- Increase the market share to be 4% in the first year.
3- To get 134 million EGP from the sales of these chocolate giving a market
share = 4% and we will assign 15% of the revenue to the marketing efforts
with initial budget about 20 million EGP.
a- Normal Corona Chocolate with milk.
b- White Corona, milk free.
c- Corona Hazelnut.
d- Lite Corona, sugar free.
e- Dark Chocolate.

Marketing Tactics:
 Promotion: IMC Plan.
 Price: Re-pricing.

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  Package: using new materials.
 Improve distribution channels: Enhance availability.

Survey
Questioner
Next is a survey questioner which is consists of 21 questions. To aims to know the
costumer profile that will help in segmenting, targeting and positioning process.
The survey was completed by 115 persons and covered the ages from under 10 to
over 50 years old.

The survey shows the following:

 The main target consumer age is between 6- 20 years old
 The average consumption of chocolate is every 3 days
 82% of the sample prefer Cadbury
 The majority prepare chocolate with milk and chocolate with nuts
 The current price of corona is good and we can increase it by .5 piasters
 Corona packing need modification.
 Consumers prefer promotion like buy 3 and get 1 free
 The most effective channels for ad are TV (67% of the sample) and social
media through Face book (57% of the sample).
 Corona needs more market presence.(80% of the sample).

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 Target Market Process
Based on our new strategy of re-branding we will penetrate the chocolate market
using specific segment by repackaging, re-pricing and improve our distribution
channels to be able to challenge our main competitor using all the IMC tools to re-
launch the brand and change our brand image.

We will choose to target the most potential segments of the chocolate

consumption.

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 Consumer profile

According to the survey we decided to target these segments:

Variables Specifications Target customers

Country Egypt
Geographic
City Major cities

Age 6 – 20

Gender females + males

Socio-economic
B+, B-,C+
Demographic class

Education Unspecified

Religion Unspecified

Race Unspecified

Social class Upper middle & lower middle

Psychographic
Lifestyle Believers, Strivers & Survivors

Occasions Chocolates: Full year + School time

Behavioral Benefits Moderate quality with affordable price.

User status New uses.

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 Positioning strategy
-The POD that we will position our product upon is affordable price with good
quality.

-We will focus on consumer strategy in our positioning.

-We will use the same logo of Corona with a new slogan ((‫))تذوق طعم السعادة‬.

Four Ps decisions

According to the results of survey mentioned we decided to implement these

decisions;

Product decision

As we mentioned that we need to change 2 issues:

1) Replace the cacao butter with high quality cacao to obtain a better taste of
chocolate.
2) Change the design of the package and its colors to meet the preference of the
target consumers.
3) We will have bars of 50gm and focusing our marketing campaign on these 4
basic chocolate
1. Normal Corona Chocolate with milk
2. Dark Corona, milk free
3. Corona Hazelnut
4. Lite Corona, sugar free
5. Corona white chocolate.

With these packages

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 Price decision

Kind Estimated price No. of units to sell Revenue

Normal Corona 3.5 L.E 12 MILLION 42 MILLION L.E
Chocolate with
milk.

Dark Corona, milk 4 L.E 3 MILLION 12 MILLION L.E

free.

Corona Hazelnut. 4 L.E 10 MILLION 40 MILLION L.E

Lite Corona, sugar 5 L.E 5 MILLION 25 MILLION L.E

free.

Corona white 5 L.E 3 MILLION 15 MILLION

TOTAL 134 MILLION

Distribution decision
Current State
- Corona has 13 distribution channels that cover
35,000 outlets.
- Weak sales force.
- Low availability through limited number of outlets.
- Poor show room orientation.
- Inconvenient trade oriented promotions and offer.
-
Objective for this year plan

- Reach 30 distribution centers over the country to be distributed mainly over

Cairo, Giza & Alex to cover almost 50% of different outlet types
(hypermarkets, supermarkets, large & small groceries and kiosks).

- Develop new show room designs to be able to compete and support the new
brand image.

- Implement contracts with the potential wholesalers to be our distributors for

the small groceries all over Egypt.

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PROMOTION DECISION

Creating IMC plan with the following objectives:

1. Build brand awareness to 30% of the national target market by using print Ads,
digital, and social media.
2. Build brand awareness to 70% of the Cairo and Alexandrina target market. This
will be hastened through word of mouth generated by students.
3. To maintain a constant frequency with 4% of the national target market, social
media will be used on a weekly basis to reinforce brand awareness and interest.
4. To reach 50% of the national target market with at least three exposures,
advertising in print and digital mediums will be used, specifically around the times of
events such as corona football cup for schools

The budget of the IMC Plan

Tool Budget Percentage

Advertising 7.25 Million EGP 35.63 %
Sales Promotion 6.45 Million EGP 31.7 %
Direct Marketing 3.42 Million EGP 16.81 %
Personal Selling 2.58 Million EGP 12.67 %
Publicity&Public Relations .4 Million EGP 1.97 %
Interactive Marketing .25 Million EGP 1.23 %
Total 20.35 Million EGP

IMC budget

Advertising 37% Sales Promotion 32% Publicity 1.9%

Interactive 1% Direct 16.8% Personal Selling 13%

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 IMC Tools

Advertising
(Contributes by 7.25M EGP of total marketing budget)

Objectives
To have about 60 % reach of the target market with frequency 15
times through broadcast media , Social Media.

Media Plan
(A total budget of 5M EGP)
 Television

• Sahebat el Saada Program.

• Turkish Series Kobi.
• Star Academy.
• Men sayarbah el million
• Hona El Asema

• Dora Cartoon
• Sponge Bob
• Ben 10
• Every Friday film at o’clock

• AblaFahita.
• AsaadallahMasaako.
• Al Plateau
•

El Asheramasaa

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 • Osama Kamal Progm
• Arabic Series.

• Al Hayah El Youm.
• Bani Adam Show Program

Television Day parts

-Morning 7-9 A.M
• Channel MBC3

-Prime time access 7-7.30 P.M

• Channel MBC3
• CBC
• Al Hayat
• Al KaherawelNas

Prime time 8-10.30 P.M

• CBC
• MBC Misr

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Corona Television Ads Plan

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Print Ads
(A total budget of 1.25M EGP) -including AD material-

- ADs at Selah el Telmiz books

- El Shabab.
- Mikey
- Sameer
- Nos El Donia.
- - Printed ads at Al AhramNews paper. Delivered in all
governorates which have distributors.

 Social Media/Digital
(A total budget of 100K EGP)
Face book Ads

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We make it easy to stay within our budget.
If you want to pay a specific amount per day, such as €5
All budget needed to create ad on face book is €5*365 = €1825 = 25000 L.E

YouTube Videos Advertising & Marketing Service

YouTube Video Views packages Pricing

1000 Views Package $25,00

2500 Views Package $45,00
5000 Views Package $110,00
7500 Views Package $125,00
10000 Views Package $150,00
25000 Views Package $310,00
50000 Views Package $650,00
100000 Views Package $1 200,00

We Choose the package of 100000 Package views in 6 Youtube channels it cost

1200$ * 6 = 7200 $ = 72000 L.E
Ads will be displays on Kids channel of cartoons :
MBC3,Spacetoon,CN,Nickelodeon,OnTV,CBC.

Outdoor
(A total budget of 500K EGP) -including AD material-

Billboards

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- The Billboard cost/m = 200 L.E yearly
Cost of billboard 3*4 m = 12 * 200 = 2400 L.E yearly
Budget of billboard in 10 places = 24000 L.E yearly

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 Location Time Cost

6th October bridge 2400

Mehwar (gate) 2400
 Ring Road 2400
Carrefour
2400
 5th settlement
Bill-Boards  Suez road 2400
 Mohandisen All Months 2400
 Salah Salem 2400
 Nasr City
2400
 Downtown
2400
Alexandria Entrance 2400
Total 24000

Sauset fees 500 L.E Yearly

10 Sausets = 500 * 12 = 6000 L.E

Location Number Time Cost

Nasr city 2 All Months 500 * 2=1000

Heliopolis 2 500 * 2=1000

Downtown 3 500 * 3=1500

Sauset Mohandeseen 2 500 * 2=1000

Harm& Faisal 2 500 * 2=1000

Alexandria 1 500 * 1=500

Total 6000 LE

Total Budeget for Billboard and Sauset= 24000 + 6000 = 30000 L.E

Moving cars
Every Car cost is 180 000 L.E

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Cost of purchasing 2 cars = 360000 L.E

These 2 cars are painted with Corona Logo when the kids or their parent photo with the car
and upload the photos on face book and like Corona page they will get free sample of
Corona Chocolate

Total cost of out doors = 360000+30000=390000 l.E

The Cost of Desingning Billborad and sauset = .110 000L.E

This car will be at Marina 4 at June ,July, August 2016 Than the rest of Months
go to other Governorates which has distributers

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 The other Car will stay for a week in front of :

Club Mall

-Shooting Club -Wadi Degla -Mall of Arabia

-Heliopolis Club -Suncity Maadi
Club -Platinum Club -City Stars Mall
-Al Gezirah -Al Kahera Club -Cairo Festival Mall
Club -6th October Club -Dandy Mall
-Al Shams Club

Bus Stops
We will put ADS in big Squares
 Roxy
 Ataba
 Tahrir
 Giza

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Radio(A total budget of 400K EGP)
 FM .
o Morning before 8 and 9 News.
o Maak fy Al Sekka Program.

The Voice Ad Will be Heard at the presentation.

 Radio Misr.
o Morning before 8 and 9 News.
o At 3 clock program of Gamal Enayat.

We will choose the package for 12 weeks ( 4 weeks at September + 2 weeks at February + 4
weeks at june +2 July )

420Spot 5 Spot /Day (30”)

420Spot 5 Promo / Day (5” )
With total budget =400,000 L,E

Budget for Advertising

The total budget available for Advertising is 7,250 Million L.E.
Television: 5 Million L.E (3 M Ads+ 2 M cost of creating Ads)
Print: 1.25 Million L.E.
Digital/Social: 100,000 L.E
Outdoor: 500,000 L.E
Radio: 400.000 Million L.E

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 Advertising Budget
Social
Media Radio
outdoors
1% 6%
7%
Print
17%

T.V
69%

Sales Promotion
(A total budget of 6.45M EGP)

Objective
The main objective for sales promotion is to acquire a huge sales volume, making
our selling offers for hyper market a lot more attractive to push it forward over our
competitors and innovational sales promotional techniques that increases the desire
for our chocolate and drives consumers for Corona this will all be responsible for
36% of the total target sales revenue and increasing brand awareness by 16%.

Sales tactics
Our tactics here is divided into two parties B2B and B2C:
- Starting with B2B Promotions on large quantities that is estimated at 10% discount
on quantities of 100k and above which will give us a comparative advantage over
our competitors to have more presence.(This will stand for 1.2M EGP if our sales
budget)(This will achieve a sales of 13% of the total sales volume during the whole
year)
- "It takes one Pound to touch happiness" It is a new innovative promotional idea
with which we are trying to increase the level of desire to our chocolate and making a

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lot more attractive for kids and teenagers where you put a one pound coin into a
machine and press a button that drops liquid chocolate straight into your mouth. (We
will be operating 5 machines at a total cost of 500k EGP) including all expenditures
as this will make a huge drive for kids to remember the experience of using Corona
for further purchases in the future as it will be located mainly in mall kiosks and hyper
markets we believe (this will push our sales by 7% especially among younger
generations).

- Chocolate bites are going to be another item with which we will be conducting
some more market presence and holding Corona's name at the mind of our consumers
continuously as it is going to be distributed to cashiers in hyper markets and used
instead of small money change it will be a one chocolate bite at a selling price of half
a pound. This will be a great tool that people get to see us way more often and
memorize our name and try consequently to push Corona into people's preferable list
(this we believe will increase our brand and product awareness by 5%)

Moving along to B2C offers that we believe are very critical and crucial for large
quantities selling mainly in large events like new years eve, valentine's day, mother's
day, summer vacations and Egyptian valentine's day.
- Offers of buy 3 get 1 free which in events( we believe will acquire us a sales volume
of 7% of our total target quantity alone in these main events).(This will cost us 4M
EGP for extra gifts on 2.5M chocolate bar).

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-Sales Promotions and presence in summer vacations is very important since our
massage is to deliver happiness and we need to be there where people are most happy.
There will be free giveaways of chocolate bar through promotional kiosks in summer
vacations like Alexandria, Ras El Bar, North Coast and Hurghada. People will need to
like our face book page as well for an extra gift of Corona Pencils or an extra Corona
bar or some school items to attract children and it will be done though lottery for
better excitement (These kiosks with the giveaways will hold 750k EGP to distribute
200K chocolate bars at a cost of 2 EGP eachand the additional gifts)(This will
contribute by at least 4% of total sales volume)
Sales promotion does not generate royalty by any means but generates huge sales
volume which is not the only main target that we seek, our main purpose here is to
be able to be seen by customers way more often, we need them to buy our
chocolate and go around with it and their kids and kid's friends and the family and
everyone gets to see that you are eating Corona as this will drive more desire and need
for Corona chocolate later and showing our customer our presence and that we are
everywhere since through our survey we have notices that almost all of the kids
done the survey had no clue what Corona is and never heard of and adults had never
heard about Corona for at least over a year which was kind of shocking and we
wanted to change that.

Publicity & public relations

(A total budget of 3.42M EGP)
Objective
Through Publicity we would like to show our new strong financial capabilities and
to be seen way more and pushing a positive feedback to 12% of the total target
market through contribution in social responsibilities and having a stronger and a
firmer company image by having articles written about Corona in newspaper.

Publicity tactics

- Sponsorship of big time media events like "The voice kids" as these strong media
events has a strong impact and huge media coverage and reflects a positive image
which will help by participating to strengthen the image of our chocolate and having a
better consumer perception.
(The show will help contribute with 8% of our total sales volume)(sponsoring the
show will cost 2M EGP)

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- Creating a football league among teenagers between "12-15" which will help us to
push corona's image to younger generations and keep reminding our target customers
with our name which will lead us to branding Corona eventually.(The football league
holding will cost 500k EGP)(will contribute with 2% of total sales)

- Again with pushing corona's name and brand and awareness through our target
customers by giveaway of pencil cases which will be seen in school by other
classmates from similar and close age range. .(The giveaways will cost 450k EGP for
a cost of 50 EGP per case)(will contribute with 2.25% of total sales)

- 48 articles written a year by 4 a month that will cost about 480K EGP and that will
contribute in brand awareness and promotion by 6% and will be mainly be in El-
Ahram and El-Shabab magazines as these newspapers have a direct relationship with
our direct market.

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Direct Marketing
(A total budget of 400k EGP)

Objective
Mainly focused on increasing brand and product awareness and the ability to reach
100k customers monthly through SMS and illustrating the benefits of eating chocolate
daily through E-mails.

Direct marketing- Tactics

- E-mails that are going to focus on increasing brand and focus awareness
through pushing valuable information about eating chocolate and the
nutritious value of chocolate which will be mainly sent to parents to push their
kids for eating Corona over other competitors.
(will contribute with 1% of total sales) and increasing brand and product
awareness by 5%.

- Sending 1,2M SMS to 100K consumer a month between "11-20" years at a

cost of 400k EGP

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Personal Selling
(A total budget of 2.58M EGP)
This very sensitive way because it depended sale skills in our sales force. So The
sellers promote the product through their attitude, appearance and specialist product
knowledge. They aim to inform and encourage the customer to buy, or at least trial
the product.

Objective
We want increase our product sales by 65 % by personal selling with recruit ah huge
sales team consist of 45 sales excusive & 5 sales supervisor so cover all area in Egypt
By
1-Put a hard target and monitor the supervisor to active this target
2-Compansation and incentive regulation for increasing sales and achieve our
target
3- Set a corona day in the clubs and meeting point
4-Personal promotion for huge market and retailer

Tactics
We will require a sale forces from 50 staff with salary and transportation allowance or
with company car

Sales No of Salary Transportation total

department employee + mobile
Sale executive 45 3000 750 + 250 180000
mobile
Supervisor 5 5000 1500 + 500 35000
50 215000/monthly

To encourage our team for increase the total sale and how reaching to require
percentage of sale ( 65 % - by personal sales ) we will create the incentive program

Total sale from To

70 % 85 % 1000

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85 % 100 % 1500
100 % 120 % 2000
120 % 150 & 3000
More than 150 % 4000

Corona Day
This methods using to made a chocolate funny day in club or schools we in library for
all attendance. The main purpose increase awareness and sales by make some
difficult activities by our sales team

Big market & huge retail ( B2B)

We will divided our sales team 5 team and we will distribute each team to cover
specific area with all big market in area and we guarantee to cover a huge number of
customer traffic the customer change to potential after a lot of sales promotion so the
teams will be

Area No of team No of sales

Cairo and Giza 2 20 ( 9 sales + 1 super )
Alex and middle egypt 1 10
Upper Egypt 1 10
Sinai and canal 1 10

Interactive marketing
(A total budget of 250K EGP)
Interactive marketing is a one to one marketing process that reacts and changes based
on the actions of individual customers and prospects. This ability to react to the
actions of customers and prospects means that trigger based marketing is dramatically
more effective than normal direct marketing.

Objective
The interactive marketing communication should be supporting overall marketing
objectives of the company. However, the objectives of interactive marketing
communications should be as below:

 Online promotion techniques should be used to attract visitors to the website.

This process is referred to as traffic building. However, this technique should
be specific, measurable, actionable, relevant, and time-bound.

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  The on-site communications should be able to deliver the message that builds
a certain perception of the company. These messages should be relevant to the
company’s product and services.

Tactics
1- we need our consumers make sure can find us online

By we will made a lot of permission for the corona web side in other web side like

Masrway – el wataan – el hayaa – CBC – fashion web side – bay2olk

We need to target high traffic web site to reach big number of customer

2-Social media networks like Face book and Twitter give retailers the opportunity to
have loyal customers increase both the reach and impact of their product offerings
So we will made a lot of event and photo the customers and upload their photos in
Corona Face book page .
3-We will reply to all comments in Corona page .

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 Monitoring

In order to measure the effectiveness of our IMC tools approaches we need to

set control measures to our plan and we that will be through:
1- Inventory monitoring:
By monitoring our inventory we will get to have a closer look at the moving
sales orders that are being distributed and the returned products and know the
reasons in order to be able to have correction plans as soon as possible.

2- Social Medical tracking:

we could track the likes growth rate and interaction on our face book page and
track our consumers feedback and check how many times Corona has been
mentioned on the social media and either in a positive or negative way.

3- Distributor orders:
Monitoring the distributors orders give us a better and a closer feedback on the
future of our projected sales as we do we need to push our sales
representatives more forward to the market or there is a market dilemma that
needs a solution so we get to deal with coming problems as early as possible.

4- Feedback collection:
Collecting feedback from our consumers allow us once again to track
the perception of Corona's new market entry approaches and if we
were strong and efficient enough to be a part of our targeted customers
preferable list.

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 Conclusion

• Corona will increase its Products awareness for kids and teenager as adults by
a huge Advertising Campaign in Social Media, TV, Radio, Print AD, &
Moving Car.
• Corona Product will change the package with light and attractive packages.
• Promotion and offers will be delivered Ex.(buy 3 get 1 free & free gift for
children)
• Distribution places will be increased in new places in Cairo and other
governorates
• Price for 50g Chocolate will be increased by 0.50 Pilasters
So the unit price for :
• milk Chocolate will be 3.5 L.E
• Dark & Hazelnut chocolate will be 4 L.E
• Lite & white Chocolate will be 5.00 L.E
• R&D will work as soon as possible to produce a new products with Cinnamon
& Coconut.

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 References

 Kotler, P., & Keller, K. L. (2009). Marketing management. Upper Saddle

River, N.J: Pearson Prentice Hall.

 Belch, G. E., & Belch, M. A. (2004). Advertising and promotion: An

integrated marketing communications perspective. Boston: McGraw-Hill.

 Talaat, A. (2016). Integrated marketing communication.[PowerPoint slides].

Lectures. Eslsca.

 Shanahan, Kat. IKEA IMC Plan. 1st ed. 2012. Print.

 -www,Egypt.gov.eg

 http://countrymeters.info/en/Egypt

 www.corona-1919.com

 http://businessjargons.com/pause-proceed-with-caution-strategy.html

 http://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-
strategies/

 Cairo Chamber of commerce: http://www.cairochamber.org.eg/

 Egyptian Export Council
 Egyptian Annual general budget: http://www.budget.gov.eg/
 Samcrete group (Eng. Sami Saad)

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