Ten Megatrends Shaping Marketing in Egypt Today

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Ten Megatrends Shaping Marketing in EgyptToday

• Dr. Ahmed Taher
• Managing Director
• Integrated Marketing Solutions
• taher_at_ims.com.eg

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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.

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Marketing

• 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

1. Branding Polarity
2. The rediscovery of PR and CSR
3. Proliferation of Media
4. Direct Marketing
5. 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).

High touch
Conventional stores
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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Multiattribute Model
Attribute Importance Toshiba Sony Dell
Prestige 5 8 10 6
Durability 7 9 5 10
Weight 5 6 10 5
Price 9 8 2 10
Overall 31 27 31
Weighted 205 153 215
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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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Appeal to individuals
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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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Generic List of Publics

• Shareholders
• Employees (Internal public)
• Suppliers
• Financial partners
• Distributors (channels)
• Media

• Government agencies
• Competitors
• Interest groups
• Unions
• Opinion leaders
• Potential recruits
• Business community

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CLAIMS of Public Relations

• Change
• Launch
• Acquire
• Inform
• Maintain
• Straighten

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Policy
Company Image
Change
Location
Ownership
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Product/ Service
Project
Launch
Share issue
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Media coverage for events
Credit for activities
Acquire
Support of Gov. agencies
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The Stock Market
The Trade
Inform
Opinion Leaders
Labor Market
Employees
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Good community relationships
Confidence of Shareholders
Maintain
Excellent relations with the media
Staff stability
Management employee relationship
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Any public misunderstanding
Straighten
Product recall or return
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Communication
Sponsorships
Public Seminars
Media Relations
Gifts
Events
Tools of Public Relations
Advertorials
Newsletters
Web sites
Annual reports
Networking
Philanthropy
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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
• Lifes 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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So What Can you do about it?
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7 Directions to Invest in

1. Branding and Positioning (and communication)
2. Retailing first-hand
3. Quality and Cost Management
4. Developing and Retaining Talents
5. Marketing Research and CRM
6. Proactive Public Relations
7. New Product Development

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7 Dimensions to Investigate

1. Second Wave theory
2. Credit and Financing Options
3. Media Reach and Impact
4. Integrated Marketing Communications
5. Direct Marketing Options
6. Online and Off-line Catalogs
7. Develop New Products and Services for New
   Lifestyles

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Thank you