El Araby Group 4

EL-ARABY GROUP
Electronic Devices
Marketing Channels
Instructor: Dr. Hesham Abdel Moatey
Prepared By: Ramy Abdel Aziz

Mohamed El khouly
Amir Abdalluh
Ahmed Farouq
Presentation Content
 Company Introduction
 Structure
 Segmentation
 Service Outputs
 Efficiency Template
 Distribution Channels Structure &
Strategies
 Cost & Service Gap Analysis
 Recommendations
 Conclusion
Company Introduction
 ELARABY an Egyptian joint-stock family
enterprise established in 1964.
 Engaged in both manufacturing and marketing of

engineering products and plays a developmental
role for the Egyptian economy and society.
 It is dedicated to provide high-quality products that

incorporate high technology to meet the needs and
expectations of the consumer.
Company Introduction Cont..
 Its main goal is to be the best Arab and African,
Egyptian company in this field.
 Total Sales of El ARABY Group in 2016 was

10 Billion EGP.
 The Group owns 12 company.
 El-Araby Group has two industrial

complexes in Benha and Quesna.
Channels Structure & Strategies
EL ARABY
El-Abbasya Quesna Banha

Outlet Outlet Outlet
El-Araby 2,840 Authorized Online

stores retails shop
End Users
Segmentation & Targeting
Service outputs
 Elaraby has good insight about how end-
users want to buy and use products
(Electronic Devices).
 They know well the nature of end-users’

demands for service outputs.
 They developed marketing channels that

provide combined service outputs to serve
and attract each segment of target end-
users.
Bulk Breaking
"Am I willing to buy in bulk or buy one and/or
multiple items?".
 Through Elaraby stores, authorized retail stores &

online web site Elaraby offers its products to end-
users in single unit
 Elaraby offers small parts; cables, electronics

hardware upgrading, mini-bar refrigerators, small
duty clothing washing machines (1KG).
Spatial Convenience
" Can I get the product at or near the location where I
want it? ".
 El-Araby depends on a vast network of sales centers across

Egypt (2,840 sales centers).
 185 service centers all over Egypt.
 Elaraby is following a policy of expanding its distributor

network, as well as its maintenance and after-sale service
centers, by providing exclusive commercial and contracting
facilitations to its authorized agents in the Egyptian market.
 Online web site to buy through with free delivery offer (on
Greater Cairo zones).
Waiting Time
" Do I need the product immediately or am I willing
to wait? ".
 On term of buying product: Although the timing of

availability has less impact on purchase decision when
compared with quality, customer service & other service
outputs.
Elaraby is doing the best in providing its products to
consumers ASAP.
 On term of service and maintenance: One of Elaraby

main goal is to continuously improve efficiency of its
maintenance and after-sale service centers to meet its
consumers need.
Product Variety &
Assortment
" Do I have a very particular need or a flexible
need? Am I looking for one or many
options? ".
 Elaraby has a wide range of both variety &

assortment of products.
 Elaraby has a partnership with 11 huge

international corporate in electronics field.
 Offers different classes of products in addition to

different brands & models for the same product.
Product Variety & Assortment
Customer Service
“Do I require assistance or support through the
purchase process? ".
 Elaraby has well trained & competence stuff in its stores

who provide consumers with required information &
knowledge about products.
 Offering warranty for all products of Elaraby.
 Customer service Hotline "19319".
 Provide regular training for its distributors and

authorized sales centers.
Information Sharing
“Do I need information to make a purchase? ".
 Elaraby shares information with consumers about its products

attributes and usage capabilities, pre- & post-purchase services &
products warranty policy
 Online Web Site " www.elarabygroup.com ".
 Huge interactive Facebook page " 1.6M followers " provides fans
with all required information.
 A process of constant engagement with its distributors and

authorized sales centers through social events and face-to-face
group meetings to share different experiences.
 Publishes a periodical magazine called ‘Al-Aila’ (The Family)

that covers the group’s activities, as well as showcases new
products before they are introduced in the market.
Efficiency Template
Efficiency Template Cont.
Efficiency Template Cont.
El-Araby Channel Intensity
Decisions:
Intensive distribution El-Aaraby's brands can be purchased from many
possible outlets all over Egypt (Saturation approach).
But How El-Araby defends his business:

 Contractual: Elaraby offers an attractive contract to authorized
retailers where they enjoy many benefits on the other hand retailers
should stick to El-Aaraby's policy regarding prices & sales terms.
 Pull strategy: big name of El-Araby and its brands allow Elaraby
to offer his products in many marketing channels and avoid Bait &
Switch as the products have high demand & high trustworthy.
 Resale price maintenance (RPM): Elaraby sets a price floor,

below which no channel members may sell the products even
Elaraby stores to dysfunctional conflicts.
El-Araby Channel Type
Decisions:
 In the beginning, El-Araby decided to be focused
but effective in selection of channel type.
 the group decides to offer products through his

own wholesalers downstream to retailers, even
third parties or own stores.
 This strategy was appropriate to achieve Elaraby

goals in terms of coverage segments & market
share.
 Then the group add new type of channels (Online

Shop), this type helps Elaraby a lot to satisfy
incoming consumers' needs with free delivery.
El-Araby Dual Distribution
Decisions:
 Dual distribution: El-Araby went to market
through both third parties and one’s own
stores.
 Managing such dual systems is challenging

and increase the risk of dysfunctional
conflict, in the other hand third parties can
add value to the group & helps to have mass
coverage & market share.
Gap Analysis
AUDIT
RECOMMENDATIONS
Closing Gaps
Other Recommendations
 Add new channel, Kiosk in clubs & universities, for
electronics & hardware to serve youth segment.
 El-Araby should expand online business through:

◦ Offering products in biggest online shops (Souq, Jumia).
◦ Encourage shopping from one's own online shop (offers,
advertising, cash on delivery).
 El-Araby has big variety & assortment in products

(unique portfolio) but to some extent are exclusively for
one's own stores, El-Araby should enrich his authorized
sales retailers with this competitive advantage.
Conclusion
 To large extent, El-Araby knows well how his target
audience want to buy products.
 El-Araby offers his service outputs in efficient way.
 Based on our Efficiency template analysis, each channel

member in El-Aaraby's distribution channels structure
contributes to overall value creation in the channel.
 Each member has distinct function, shown in a prior

contract, to avoid vertical & horizontal conflicts.
Conclusion Cont.
 According to our gap analysis, the cost & service
gaps are limited and easily to be handled.
 El-Araby decided to make most of services, in level

of wholesalers, stores & online shop, to ensure
delivering services as needed.
 El-Araby as a market leader company has

intensive, effective and dual distribution strategy to
increase coverage & market share.
THANK YOU

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EL-ARABY GROUP

Prepared By: Ramy Abdel Aziz

 Engaged in both manufacturing and marketing of

 It is dedicated to provide high-quality products that

 Total Sales of El ARABY Group in 2016 was

 The Group owns 12 company.

 El-Araby Group has two industrial

El-Abbasya Quesna Banha

El-Araby 2,840 Authorized Online

 They know well the nature of end-users’

 They developed marketing channels that

 Through Elaraby stores, authorized retail stores &

 Elaraby offers small parts; cables, electronics

 El-Araby depends on a vast network of sales centers across

 185 service centers all over Egypt.

 Elaraby is following a policy of expanding its distributor

 On term of buying product: Although the timing of

 On term of service and maintenance: One of Elaraby

 Elaraby has a wide range of both variety &

 Elaraby has a partnership with 11 huge

 Offers different classes of products in addition to

 Elaraby has well trained & competence stuff in its stores

 Offering warranty for all products of Elaraby.

 Customer service Hotline "19319".

 Provide regular training for its distributors and

 Elaraby shares information with consumers about its products

 Online Web Site " www.elarabygroup.com ".

 A process of constant engagement with its distributors and

 Publishes a periodical magazine called ‘Al-Aila’ (The Family)

But How El-Araby defends his business:

 Resale price maintenance (RPM): Elaraby sets a price floor,

 the group decides to offer products through his

 This strategy was appropriate to achieve Elaraby

 Then the group add new type of channels (Online

 Managing such dual systems is challenging

 El-Araby should expand online business through:

 El-Araby has big variety & assortment in products

 El-Araby offers his service outputs in efficient way.

 Based on our Efficiency template analysis, each channel

 Each member has distinct function, shown in a prior

 El-Araby decided to make most of services, in level

 El-Araby as a market leader company has

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