International marketing project - Exporting premium palm dates to the USA

EgyDatDatto

9/9/2017 Datoo, Don't miss the natural power 1


Introduction

• Datoo, natural, organic, authentic, Saharan Egyptian palm date product.

• It is your daily instant power bank when energy level falls apart, recharge your body and soul!

• Datoo corp. offers a variety of date products to meet the modern needs, based on the recent researches proving the importance of dates as a complete dietary source.


Introduction

• Ancient Egyptians realized the importance of palm and palm dates to their lives.


Introduction• Global awareness about the harm of

artificial foods raises the need for organic & natural products.

• Global awareness about importance and great benefits of palm dates as a healthy, natural nutritional source.

• if added to milk, this is a complete dietary source.



Introduction


Introduction



• Population : 323.1 M.

• 5 M Arabs.

• 9.8 M square Km.

• 50 federal states.

• 40% of the global world economy.

• GDP : 18.57 trillion USD (2016)

• GDP growth 1.6%

• GDP per capita 57.436 $

• Imports of goods gth 14.7%

• Food spending 1.5 Trillion $

• Upper middle class income 100000 – 350000 $

• FDI : 373 B. $

• Unemployment : 4.5%

• Inflation rate : 2.1%

Country facts

PESTLE analysisPolitical

1. USA has a strong democratic setup and effective rule of law, with elections that are considered fair and transparent.

2. The country enjoys massive political and economic influence over both national and global policymaking, and is recognized as the leading superpower in the world.

3. However, the country faces international criticism for its interventionist policies regarding the ‘War on Terror’ which is souring foreign relations, and at the same time fueling terrorist groups, increasing the threat of terrorism.


1. The overall system of taxation in the United States is progressive.

2. Not only do those with higher incomes pay more in total taxes, they pay a higher rate of taxes.

3. At the current time the highest total sales tax rate in the U.S. is 13.725 percent in Tuba City, Ariz. (6.6 %state sales tax, 1.125 % county sales tax, and 6 % local sales tax.)

4. Federal corporate income tax is imposed at graduated rates from 15% to 35%.

5. All income subject to tax at 34% to 35% where taxable income exceeds $335,000.

6. The average American will pay 19.8% of their income in federal taxes this year according to the Tax Policy Centre.

7. Source Political Environment of U.S.A. Page 03

PESTLE analysisPolitical: TAXATION

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• Corruption reception index : Very Clean Ranks 16th/168 in the world (Source: Transparency International 2015)

• GLOBAL TERRORISM INDEX : Was only featured, 1 time in top ten countries most affected by terrorism during 2000-2014 ). USA ranks 36th & Egypt ranks 9th

in 2016.

PESTLE analysisPolitical: Corruption - terrorism

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PESTLE analysisLEGAL ENVIRONMENT

• The US is a highly regulated society.

• As such, people or enterprises those want to do business in the US need to be aware of the many regulations, standards and guidelines that may affect the sales of their products or services.


• United States an extremely competitive marketplace that rewards efficiency, productivity, and integrity while mandating rigorous compliance with the nation’s complex rules and regulations.

• As the U.S. economy improves, the cost of doing business in the United States may rise. This would require a corresponding higher level of investment in order to compete with established domestic businesses.

• Federal, state, and local regulations require a thorough knowledge of tax, commercial, and labor laws.

PESTLE analysisLEGAL ENVIRONMENT


RESTRICTIONS ON FOREIGN INVESTMENT

• There are no substantial restrictions imposed by the federal government on foreign investment in the United States.

• A few industries are, however, subject to restrictions— these include those involving the exploitation of certain natural resources, communications, shipping, nuclear and other power-generating facilities, and aviation.

• Some states have restricted certain foreign investments in certain cases, such as in agricultural land.

• The federal government, through the Commerce and Agriculture departments, imposes substantial reporting requirements for foreign investments in the United States.


PESTLE analysisEconomic

1. With a GDP of over $18.760 trillion, the US is the largest economy in the world.

2. The economic system is well-developed and gathers its strength from its services and manufacturing industries.

3. The recession in 2009 adversely affected the economy of the country and unemployment rates soared to an alarming point.

4. But the economy bounced back with a growth of around 4% in the third quarter of 2014 as consumers and businesses have stepped up spending.

5. However, the increasing budget deficit puts the economic prosperity of the country at grave risk as the deficit currently amounts to a staggering $506 million.


PESTLE analysisSocial

1. Like most developed countries, the US faces the problem of an aging population which can lead to a serious labor shortage and rising tax rates in the future.

2. Nonetheless, the education and healthcare system is one of the best in the world.

3. A majority of the population has a liberal mindset, but rising racial intolerance is a serious concern.

4. Additionally, increasing illegal immigration is another concern, as there are currently more than 11.7 million people living illegally in the US, further increasing the risk of racial discrimination.


http://pestleanalysis.com/swot-analysis-in-healthcare/

PESTLE analysisTechnological

• Home to one third of the world’s scientists and engineers, and accounts for one third of global R&D expenditure.

• Innovation and technology are the cornerstones of the US economy. • Since its inception, the country has been leading in terms of adapting and applying

technology.

• Though the country faces strong competition from rising economies, it is expected it will continue to retain a technology supremacy over its competitors.

• Additionally, the US has also been at the forefront in enhancing and developing technologies in areas such as nanotechnology, environmental technology and biotechnology, which opens up massive opportunities for companies with expertise in the mentioned fields.

• IT is another field the US has been excelling in. However, it has also been facing intense competition from countries like China and India.


PESTLE analysisEnvironmental

• Geographical location: North America, bordering both the North Atlantic Ocean and the North Pacific Ocean, between Canada and Mexico

• mostly temperate, but tropical in Hawaii and Florida, arctic in Alaska, semiarid in the great plains west of the Mississippi River, and arid in the Great Basin of the southwest.

• low winter temperatures in the northwest are ameliorated occasionally in January and February by warm chinook winds from the eastern slopes of the Rocky Mountains.

• Ref. www.cia.gov



Market research




Segmentation

Geographic:

launch 1st phase(1 year) will take place in northern and middle states(cooler weather) where energy is aimed from foods rich in it.

2nd phase will cover the rest of the states.


• Demographics:1. Age from 5-54 are our launch segment, people

in the age of activity and vitality, starting from kids age who will adopt the new trend in nutrition , offering a solution to lack of energy during day time in a delicious healthy way.

2. This age group contribute to almost 70% of the total population.

3. 5 M Arab citizens will give us the WOM and share their culture and previous experiences with Dates with their neighbours.

Segmentation


Segmentation


• Psychographics:

launch 9th of October 2017 (Columbus day), Columbus discovered America and it is the time that Egyptian dates discovers USA and we will make them discover the true natural source of energy to their body and souls.

Sponsor the health day in the highest 10 population states to link Datoo with good health and well being.

Segmentation


Segmentation

Psychographics:

Largest ajwa (dates) with eggs dish will be prepared in the launch day to score a new Guinness record.

Use ancient Egyptians pics and photos to link Datoo with the greatness of Ancient Egypt.

Datoo Cereal will also compete with other cereal products on the morning table. Its package will carry a slogan character : Egyptian catoo


• Behavioral

Fast breakfast is common in the states, Datoo bar will be widespread for this purpose.

Athletes need sugar, useful fats and carbohydrate rich food, this is Datoo.

Camping and Hiking activities necessitate holding a powerful energy supply to withstand the rough climatic conditions.

Energy boosted in a snack (recharge your body and soul with in 1 bite)

Segmentation


Targeting

• Targeting the young active:

-Targeting the athletes: Bikers, Baseball and basketball fans( 2 most popular games USA) Skaters, hikers:

1. place ads for Datoo power drink, Datoo bar in the tracks and courts.

2. Use models practicing those sports in our ads.

-Army contract to supply the soldiers with Datoo bars to be used in the bases, camps and battle fields

• targeting the young kids: Cereal Datoo product catching their eyes with the cat slogan, catching their tongues with the delicious taste.

• Targeting school kids: Datoo bars contract with the schools to be a part of the daily school meal, combating hunger and lack of energy in the school day will create loyalty and then a word of mouth at home


• targeting housewives via placing ads and commercials in Soaps and sitcomsRecruiting a famous cooker ( chef sherbiny style) and may be an Egyptian guy like Yahya, the friend of celebrities.

• Target the elites: Datoo compote, cereals and dried selected dates will be offered in the hotels buffets.

• Also domestic air flights serving fruit salad and dates juice.


positioning• Value proposition:

“Don’t miss the natural power!”

• Unique selling points:1. Natural organic authentic Saharan Egyptian palm date

product.2. It is your daily instant power bank when energy level falls

apart.3. Variety of modern dates products matching the fast

tempo of American life.


Marketing mix

While naming our product to be exported to the USA, we chose Dato, Dato means data in Italian, so we decided to change the name to avoid the misleading name.

Datto was our second choice, it means a frightened rabbit in Japanese, decided to change it also.

So we chose Datoo, Don’t miss the natural power.9/9/2017 Datoo, Don't miss the natural power 33

Product Price Place

Datoo bar ( I piece) 1 $ Wall mart24/7Kiosks (parks)SchoolsMarkets and hypermarkets

Duedatoo (2 pieces) 2 $ Wall mart24/7Kiosks parkSchoolsMarkets and hypermarkets

Datoo cereal 40 oz 12 $ Markets and hypermarkets

Datoo compote 20 oz 15 $ Markets and hypermarketsHotels

Assorted dried dates 40 oz 20 $ Markets and hypermarketsWallmart and 24/7

Datoo power drink 2 $ Markets and hypermarketsWallmart and 24/7Health clubs

Datella paste 26.5 oz 5 Markets and hypermarketsWallmart and 24/79/9/2017 Datoo, Don't miss the natural power 34

PromotionProduct Promotion

Datoo bar ( I piece) TTL advertising in walmart and 24/7 using ushersKiosks carry our slogan and logo in parks, clubs and hiking & skating areas.Ask Guinness record to cook the largest fruit eggs with dates dish

Duedatoo (2 pieces)

Datoo cereal 40 oz Sponsor health days in the 10 highest population states schoolsSocial media and e-marketingAmazon online store

Datoo compote 20 oz Broadcast ads in soaps and sitcoms Make price offers for Hotels and flight companies

Assorted dried dates 40 oz Broadcast ads in soaps and sitcoms Ask Guinness record to cook the largest fruit salad dish with dates varietiesSocial media and e-marketingAmazon online store

Datoo power drink Place ads in basketball & baseball courtsModels in TV or YouTube ads playing these sports and eating DatooSocial media and e-marketingAmazon online store

Datella paste 26.5 oz Broadcast ads in soaps and sitcoms Social media and e-marketingAmazon online store


Competitors


1120 gms = 10.5 $9/9/2017 Datoo, Don't miss the natural power 37

UA in the USA400 gms = 21 AED = 70 LE9/9/2017 Datoo, Don't miss the natural power 38



1-Excellent Reputation of Egyptian Dates.

2-Dates variety, flavors, tastes and content.

3-Variety of Date types to be suitable for majority of customers..


Low experience in the American market.

Operating from Egypt away from our new market


1-Organic & Natural product

awareness.

2-High Vitamins and Mineral need due to malnutrition issues.

3-Awareness about the Dates benefits.

4-presence in Walmart and 24/7


1-Resistance of accepting Dates Nutrition Value.

2-Unacceptance of provided products.

3-Competition from Another Arab countries with similar products.

4-competition from Israel.


Strategic fit


Market entry :

In a huge market like that of the USA, with its diversification and cosmopolitan taste, We decided to have a joint venture with an American trade company to help us in better understanding of this market, support us in marketing issues, storage and distribution.


• We will hire a marketing consulting company to better understand cultural variations and avoid faults in SRC & ethnocentrism.

• Due to vast legal issues in the American laws, we will hire an American lawyer to sign our contracts effectively.

Strategic fit

Budgets


• Capital 120000 $

• 12000 $ administrative & logistic fees in Egypt and Usa.

• It is proposed that we will have an americanpartner (joint venture) and will be responsible for the stores, distribution and marketing.

• We will start with the northern and middle states with the highest population and also cold weather starving for energy.


Budgets

• In the 1st year we will start exporting 20 tons.

• Ton cost = 2770 $

• Shipping & transportation cost = 1000 $ per Ton

• Total cost 3770 $ per Ton

• Public price = 12000 $(40000oz) per Ton.


Budgets

• Advertising cost = 25% from the sales = 100000 $.

• Based on the expected volume of sales of the first year we are planning to increase the target of the second year by 50% when we start covering the rest of the country.


Promotion 2018 2019

Sitcom – Tv ads 20000 $ 30000 $

TTL 10000 $ 15000 $

Kiosks logo & slogan 10000 $ 15000 $

National health day sponsorship 15000 $ 22500 $

Basket & Baseball outdoors 15000 $ 22500 $

Sales promotions 15000 $ 10000 $

Guinness record fees 5000 $ 0000

Others 10000 $ 15000 $

Mouneer concert 20000 $

Budgets

Forecast & Controls


• Quarter 1 from 2018 be on target 20% from total sales.

• Q2 25%

• Q3 30%

• Q4 25%


• Total expenses 40% Q1

• Q2 30 %

• Q3 20 %

• Q4 10%

