Marketing

Final Project
Dr. Raafat Shehata

Submitted By:

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 Name ID Group
Nourhan Hany Mohamed 21227070
Ahmed Hamada Abd El- Waly 21225774
21226708 2H
Karim Mohamed Mostafa
Donya Hassan El-Keki 22225690
Esraa Emad El-Din Roshdy 22225423

Company Introduction:
- Spiro Spathis is a very old well-known Company. It was established in 1920 by a Greek Foreigner Spiro
Spathis. He produced the First ever Soda Drink in Egypt, the Lemonade Flavor.

- Spiro Spathis won the medal of King Farouk I of Egypt in 1941, and the products ranked as the first best
producer in the field of gaseousness and outperforming more than 56 factories for the manufacture of
gaseous.

-Spiro Spathis was the official drink for all categories of the Egyptian people, and it was even the favorite
drink of many celebrities such as the singer “Umm Kulthum” and many others

- Spiro Spathis, Egypt’s oldest carbonated drinks company, has witnessed a sensational comeback and
300% increase in its revenues thanks to following the calls to boycott a number of competitors
companies that mentioning their open support of Israel.

- The unique logo that many people mistake for a fly is actually a bee, which was inspired by Spiro
Spathis' work in a beehive representing its commitment to hard work, creativity, and innovation.

- Spathis has eight flavors in the market such as: Apple, Grapes, Mandarin, Peach, Pineapple, Kiwi,
Lemon, and Soda Lemon

- Spathis direct main competitors are Fairuz, Schweppes and indirect ones are Coca Cola, Pepsi.

- Spathis Vision is to Innovatively Bring the old and the new Together.

- Spathis Mission is to Bring innovative fizzing Egyptian Flavors back to the Market.

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Situational analysis
1- SWOT analysis

 Strengths (internal)

 High Brand Recognition and Strong Reputation such that it is a well-known 100% Egyptian
trusted name having an old history in the customer mind
 Spathis has eight flavors in the market such as: Apple, Grapes, Mandarin, Peach, Pineapple,
Kiwi, Lemon, and Soda Lemon
 Competitive Pricing (Affordable) such that the company managed to remain profitable with
clever pricing even during bad market situations
 Acceptable quality

 Weaknesses (internal)

 Limited supply and increased demand

 Has no Cola flavour which attract majority of the soda customers
 Poor Distribution system causes a lack of Spiro Spathis products reaching retail outlets, for
consumers to view and buy
 Has no cans production line (only plastic bottles)
 Lack of advertisement campaigns
 Soda quantity in the beverage is not fair enough and needs to be increased a little bit more

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  Opportunities (external)

 The 2023 calls to boycott several competitors’ companies that mentioning their open
support of Israel that affects the large foreign companies market share
 Increasing the number of supermarkets, restaurants, and kiosks that look for the Egyptian
products instead of the foreign ones
 Social media visitors’ support to all the local brands lately by sharing their names and
products for free
 Flexibility of the customer in such market to taste more a more new and creative flavours.
 Increasing the number of food applications for online supermarket shopping.

 Threats (external)

 The high demand for local brands in the market leads to a panic for some companies that
are not ready for such huge production and distribution.
 Presence of many Egyptian competitors in the beverage market with the most popular
flavored carbonated soft drinks, Cola such as VP, Big, Double dare, Sina Cola…etc.
 High taxation in the country on such companies
 The foreign brands coming back to the market after the customer forget about the boycott.
 Spreading of sustainability campaigns all over Egypt against using plastic bottles

2- PESTLE

 Political

 - The political situation in Egypt is unstable in this time because of the war in Palestine

 -Supporting the boycott campaign to any foreign brand supporting Israel

 -Presence of sugar lack crisis

 - High taxation percentage policy in Egypt on all products specially which is not necessary for life

 Economic

 - Lock-down hours limitation effect on consumption

 - How Currency fluctuation in recent years has been affected suffering a huge inflation

 - GDP Gross 32.213 billion with Soda consumption in Egypt more than 1,000,000,000 in 2023

 - Egypt’s food industries sector contributes 24.5% to GDP

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  - Tough obligations in Egypt from the International monetary fund in the current situation

 - Suffering different exchange rates for currencies in Egypt

 - Trade agreements, which guarantee the easiest way of the raw material (plastic) to Egypt

 - Increase in interest rates on loans and deposits in the central bank

 Socio-cultural

 - Take advantage of the large population of 103.3 million and targeting also Upper Egypt & Delta
cities.

 - The senior’s group are shaping 14.9% of total population so we can play on the nostalgic part

 - Encouraging recycling, following the global trend to preserve the environment

 - Respecting the Healthy lifestyle trend to drink beverages with less sugar for some people

 -Realize the Egyptian common habit drinking soda products after their heavy meals or their traditions
and feasts dates to push the offers

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  -Considering the main soda customer to be from this age range 15-45 males and females of the middle
social class

 Technological

 - Vending machine

 - The number of social media users in Egypt is increasing

 - 70% of internet users in Egypt purchased something online in 2023 (Online shopping)

 - Dealing with online applications

 Environmental

 - Recycling and its impact on the environment.

 - Industrial emissions.

 - Solid waste disposal method.

 Legal

 - Mandatory rules for competition law

 -Studying Customer protection law (such as there is a minimum quality and certain allowed
components within limits for any beverage that they could not break for the sake of the customer
health and any critical information should be declared on the bottle for the customer to consider)

 - Respecting the Contract law items (Offer, Acceptance, Legality, Capacity, Consideration) with all the
company network
 - Roles of food security authority.

 - Investment laws, concessions from the government.

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  - Electronic invoice processing systems.

3- Market Analysis
 Market Size and growth (Quantitative)

 The carbonated soft drinks market in Egypt was equal to 524.00 million USD (calculated
in retail prices) in 2015. Until 2025, the drinks market in Egypt is forecast to reach 4.08
billion USD (in retail prices), thus increasing at a CAGR of 19.00% per annum for the
period 2020-2025. This is a decrease, compared to the growth of about 27.04% per year,
registered in 2015-2019.
 The average consumption per capita in value terms reached 5.72 USD per capita (in retail
prices) in 2015. In the next five years, it grew at a CAGR of 24.56% per annum. In the
medium term (by 2025), the indicator is forecast to slow down its growth and increase at
a CAGR of 17.09% per annum.

 New Trends (Qualitative)

 Surging demand for the following soda products:

a) Healthy (Less sugar)
b) Sustainable (No plastic)

 Consumers’ preferences have shifted to more natural products with “clean label”,
including fermented drinks, teas, lower sugar beverages and fortified drinks with health
benefit claims. As a result, the major players have been significantly challenged. In order
to remain competitive, they try to reduce their use of sugar and to include fortified
carbonated soft drinks, as well as zero-calorie drinks in their portfolio. In addition, the
number of people, who are paying attention to labelling is increasing. Thus, companies
also need to focus on transparency and simplicity regarding information in order to gain
customers’ trust.

 Acquisition deals have been especially popular in recent years. Some of the largest,
including Coca-Cola and PepsiCo have been particularly active. For instance, in 2019,
PepsiCo completed the acquisition of Soda Stream, a producer of machines that
carbonate home tap water. Similarly, Coca-Cola participated in numerous mergers deals
over the past few years, thus diversifying its portfolio.

4- Competitive analysis

 Using Referral, performing surveys for customers or retailers the company could
get Fairuz or Schweppe’s NPS and price in the market.

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  Using mystery shopping, the researchers could get some information about the
competitors’ offers and distribution strategies and retailers.

 Sendicated paid reports should be studied well to know more about the
competitors.

5- Customer satisfaction analysis

 Measured by NPS “Net Promotor Score” that could be taken online

on their website or social media.

Objectives of 2024 Plan

Spathis objectives for 2024:

1- Number of customers increases to reach 10,000,000 by the end of 2024

2- Revenue increases by 200% from 2023 to 2024 (Spathis has witnessed a 300% increase in its
revenues from 2022 to 2023)
3- Market share increases from 7.1% to 15% by the end of 2024

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4- Profitability increases from 5% to 10% by the end of 2024.
5- Customer satisfaction to increase the NPS from 10% to 20% by the end of 2024.

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