Abstract
In June 2013, Walid Helal, the chief executive officer of Helal Group, a leading petrochemicals manufacturer in Egypt, was discussing the company's performance with his brother Khaled Helal, the chairman. Our market share is declining, indicated Walid, we need to study the situation carefully, he added. Competition is getting very fierce, not only from local competitors but from international competitors as well, explained Khaled. Although the company has been witnessing tremendous growth in sales and profits over the past years, it started to face some difficulties in competing with international companies. Our international competitors produce very high quality products, with innovative designs, but with much higher added Khaled. Since its introduction in the Egyptian market in 1961, Helal Group was producing a variety of high quality with reasonable prices. This attracted many customers in the Egyptian market and soon the Helal brand name became popular in Egypt. The company targeted B and C social classes who were more price sensitive. Upper class customers perceived Helal Group as low quality due to their low prices, and accordingly bought expensive imported products explained Walid. After a lot of discussions, Khaled and Walid decided to introduce a new product line to target upper class customers. In order to do so, Walid had many issues to consider: Should Alwan be introduced under Helal Group brand name or as a separate brand? How much should Alwan be priced? Which marketing strategy should the company use? Should Alwan follow the same strategy as Helal Group products?
Highlights
The petrochemical sector in Egypt was considered very promising
The petrochemical industry is only equivalent to 3% of Egypt's GDP, experts believe that the industry has huge potential in the
Egypt produces a wide variety of petrochemical products such as plastics, fertilizers and acrylics
Summary
The petrochemical sector in Egypt was considered very promising. In 2008, the petrochemical sector represented 12% of. Egypt’s total industrial production and was worth around US$ 7 billion. The petrochemical industry is only equivalent to 3% of Egypt's GDP, experts believe that the industry has huge potential in the. By 2020, the petrochemical sector is expected to bring in US$ 7 billion in annual revenue and create around 100,000 new jobs. Egypt produces a wide variety of petrochemical products such as plastics, fertilizers and acrylics. Egypt’s exports of organic and inorganic chemicals, carbon and fertilizer increased from US$ 443.5 million in 2004/05 to US$ 679.2 million in 2006/07. The government aims to boost petrochemicals exports to reach a total of US$ 1.7 billion annually
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