Marketing Management In Chipsy:
As Chipsy knows, good marketing has become an increasingly vital ingredient for
business success.As the first industrial potato chip company, Egypt
Trade ensured that its product was distributed nationwide, with the crispy snacks, now
branded as Chipsy, becoming so popular that "Chipsy" became the nation's generic
term for potato chips. In the 1990s Egypt Trade added the Crunchy brand to its product
lineup. Crunchy was a crinkle cut potato chip which was also produced in its Abu Sier
facility. A second company, Misr for Food Industries, was formed at that time to
concentrate on producing the Chipsy brand. In October 1998 extraordinary general
assemblies of the two companies merged them into one umbrella company - Chipsy for
Food Industries. Three years later, In 2001, Chipsy for Food Industries merged with
Tasty Foods Egypt, a leading private sector snack food company. Today, Chipsy for
Food Industries is fully owned and operating under the management of PepsiCo, a $28
billion multinational firm with subsidiaries such as Frito-Lay, Pepsi-Cola, Gatorade,
Tropicana, Quaker Foods, and Aqua Fina. Under PepsiCo's management the company
has experienced major upgrades in all areas of its business and major product quality
improvements across the portfolio through the implementation of international best
practices and a continual striving to keep the brand on the top of its market segment. In
addition, the distribution network has been expanded through the addition of a large
fleet of trucks and consumer-based innovations have been implemented in all three
categories of local PepsiCo operations: potato chips, extruded products and wafer
biscuits. PRODUCT: Chipsy's single-serve and family-serve products are available in an array of
flavours
catering to a wide variety of consumer tastes. Those tastes are identified based on
extensive marketing research showing consumer preferences and trends. Currently, 
seven flavors, including salt, tomato, and chicken, kebab, cheese, chili and lemon and
oregano, are enjoyed by consumers of all ages. From the type of potatoes used in
production right through to packaging materials and design, all aspects of the
production cycle are carefully studied to ensure high quality and continuous
development. Local and international experts supervise production and ensure that the
highest international quality measures are applied. As a result of this expertise, Chipsy
for Food Industries holds the ISO 9001/2000 certificate for quality and management
efficiency. Chipsy for Food Industries has not limited itself to the single brand, Chipsy, in
the potato chips market but has a line of other local and international brands that are
greatly valued by Egyptian consumers. These brands include Lays, the classic leading
international brand, and Crunchy, the ridged potato chip brand especially favoured by
children. Al-Abtal is another Chipsy for Food Industries brand that has quickly captured
the imagination of consumers. Al-Abtal has rapidly attained the leading market position
in the extruded The first celebrity to star in a Chipsy advertisement was actor Hesham
Selim in 1998. Chili and Lemon is the most flavour favoured by Egyptian consumers. Things you didn't know about Chipsy 20 SUPERBRANDS corn snack categocorn snack
category that accounts for 50% of salty snacks market. It comes in four flavors: pepper
and lemon, pizza, cheese, and tomato. The brand's popularity has been built on a
successful cartoon episode featuring action heroes such as Batman, Superman and
Lets & Go. It targets children aged ten to twelve, who are fascinated by adventures and
heroic characters. In addition to being the major player in the salty snack market,
Chipsy for Food Industries also has a strong presence in the sweet snacks market with
Samba, a wafer biscuit. Samba is among the top three national brands in the wafer
biscuits
category, and includes a wide variety of high quality products including chocolate and
vanilla cream filled wafers and chocolate-coated wafers
RECENT DEVELOPMENTS The continuous development and progress taking place in
all departments of Chipsy for Food Industries is based on well-designed plans. These
plans are a result of coordination and combined teamwork across all parts of the
business. In 2003 Chipsy for Food Industries completely revitalized its portfolio, offering
new propositions to consumers to meet growing demand and introducing new flavours
along with a new and innovative packaging. In 2004 Chipsy for Food Industries took the
snack market by storm with Chipsy Action, a new line catering to teenagers and young
adults. Chipsy Action is a ridged chip with thick cut potatoes which satisfies consumer
demand for a stronger crunch and more pronounced potato taste. Chipsy Action comes
in three modern and innovative flavors -- fajita, margarita and twist -- and in an ideal
size for its target audience. Chipsy Action packs are 75% larger than Chipsy to cater the
needs of teens and young adults moving lifestyles. Chipsy Action also taps into this
market segment's habits and fast-paced lifestyle with contemporary packaging design
that has bolstered its image. In line with its celebrity endorsement strategy to bring
consumers closer to their favorite stars, in 2004 Chipsy signed Egypt's top footballers to
be spokespersons for the flagship brand. Football is the nation's most popular sport,
drawing the attention and admiration of millions of Egyptians of all ages. Representing
the next generation in Egyptian sports, Chipsy stars for 2004 include Ahmed Bilal,
Hossam Ghaly, Ahmed Hassan, Tarek El-Saeid, Hany Saeid and Tarek El-Said. Also in 
2004, Chipsy has signed Egypt's leading movie star Ahmad El Sakka as a brand
representative and spokesperson. Ahmed El Sakka is the number one action movie star
in Egypt whose latest movie was a hit in the Egyptian Box office
PROMOTION: In the rapid pace of today's world more and more brands are vying for
consumers' attention, and not just via traditional media channels. This means that it is
vital to ensure that a consumer's attention is captured rapidly and exclusively so that the
consumer is focused on your brand and its qualities, engaging all the elements of the
marketing mix working synergistically in order to maximise the impact of the message. Chipsy for Food Industries has always been keen to design promotional campaigns
which both stimulate and motivate its target audiences. Consumers of all ages enjoy
Chipsy's instant win promotion, where Egyptian pounds of varied amounts are randomly
distributed inside potato chip bags. Setting an example of fair play, Chipsy has always
evenly distributed such monetary prizes and has registered the exact values and
amounts of money distributed with the Ministry of Social Affairs. When targeting
children, Chipsy tries to build in educational components to its promotions. Instant win
opportunities with computers as grand prizes are designed to increase children's
knowledge and familiarity with technology. As well, in pack premium promotions provide
children with a game where individually bagged pieces combine to form shapes,
encouraging creativity and at the same time building sales. As always, free trading
cards featuring popular international cartoon characters are a firm favourite promotional
item. BRAND VALUES: A national icon, Chipsy has reigned as the leading macro-snack food
champion for more than twenty years. Whether munched alone from the bag or served
as an accompaniment to meals, Chipsy potato chips and corn snacks are universally
popular. The diversity of flavours and affordability has made Chipsy products the
preferred brand for Egyptians of all ages. Marketing plan plan
Situation Analysis: Every organization faces a lot of problem at present time so it
became necessary for every organization that before setting any objective carried out
situation analysis in order to recognize strength, weakness, opportunities and threat
present in our organization. According to Sally and John, marketing plans are "the
written document or blueprint for implementing and controlling an organization's
marketing activities related to a particular marketing strategy".The value of the potato
chip market has escalated rapidly since the beginning of the millennium and continues
to grow, driven by Chipsy for Food Industries' continuous development and constant
dedication to consumer satisfaction
ACHIEVEMENTS: Chipsy for Food Industries is the clear leader in the potato chips
category
and drives the majority of the growth in the market.Snack giant Chipsy Food Industries has formed a joint venture with PepsiCo's
local subsidiary Tasty Foods, with a nominal capital of GBPE 500 million, the
financial institution advising Chipsy said on January 9.1-Formulated side: Marketing concept, tools, frameworks, and issues 2-creative side:
Real innovation , creativity , and passion
o Designing the right product
o Only the best is good enough for customers
o Marketed : goods , services , events& experience , persons ,
places& properties , organizations , information and ideas.In a step toward
vertical integration, and to ensure the highest quality of its raw materials, Chipsy started
growing its own potatoes in 1992 on dedicated farms in El-Salhyia, Noubaria and
Assiut.Karim Kamal, research analyst at EFG-Hermes Securities Brokerage, said
PepsiCo will own 83 percent of the new company, to be called Chipsy
International, while 17 percent will be owned by the management of Chipsy Food
Industries.Macro-snacks include salty snacks such as potato chips and
extruded corn products, as well as biscuits, chocolates, candy, chewing gum and cakes.Create product belonging and position among buyer's mind
Marketing strategies :
To achieve these objective we implement various strategy.Chipsy enjoys 99% brand awareness and has the highest frequency of
consumption among any macro-snack brand.Chipsy for Food Industries employs
approximately 2,000 employees in three active plants and 30 branches.The first potato
chip brand in
Egypt, it began in 1982 with one small factory in Abu Sier, west of Cairo, and has grown
to become the biggest brand in the macro-snack market.Main aim of various chips industry to produce high quality chips in differentdifferent ingredients such as SPICY, BUTTER, SALTED, LEMON.Market: Potato chips are one of the top categories in Egypt's macro-snack market, as
proved by a
recent retail audit.A successful marketing
plan is able to improve organizations' profits and growth, uses in objective setting and
monitors results.Firstly, dynamic marketing environment will lead to uncertainty, threats and
opportunities for marketers.Marketing managers who success to know changes in 
environment through situation analysis can lead their companies to capitalize on
opportunities and cope with threats created by changes.Chipsy Food Industries and Tasty Foods both produce snacks under brand
names Chipsy and Lays.The potato chip category also has the highest penetration of the salty snack segment, at
over 80%.An industry pioneer, Chipsy for Food Industries was formed in the 1980s and
has been steadily growing ever since.To meet escalating demand for
Chipsy products, production lines have witnessed significant growth.Today Chipsy is the only salty snacks company in Egypt, and one of the few in
the world, that grows its own potatoes.The Chipsy brand originated
when four former military officers and two businessmen formed the first local company
to produce potato chips, Egypt Trade.Marketing objective:
After situation analysis we became able to known our organization strength, weakness,
opportunities and threat present in environment.The brand rapidly became the market leader and 
still maintains its leading position, and in 2003 reached a new milestone in sales with
the highest number of cases ever sold in Egypt in a single year.In addition to the
original factory, two factories which have been built in Sixth of October City and Assiut
apply the most modern technology in the industry.There are two
major reasons to explain why situation analysis plays a vital role in developing
marketing plan.Then, systematically analyzing situational environments in order to identify our
customers and understand their needs and taste.There are certain opportunities in
chips industry, such as increase people taste, increase market and market share
through integrated PR, and advertisement and promotional campaign.The brand itself has gone from strength to
strength and the Chipsy name has become synonymous with success in the market
sector.So to gain a successful market plan it is necessary to understand the current situation
comprehensively and trends affecting the future of the organization.Besides
opportunities there is a lot of threat that create barrier for entry in chips industry.Use excessive advertising especially
using media preferred by the target market.Mainly for the youth
Marketing Mix Strategies :
?Must of chips brand such as lays, uncle chips, bingo,
fun pop jump in to Indian market by producing high quality of chips.Form that alls
lays captured very high share in the market.HISTORY: Chipsy is a prime example of an Egyptian success story.It provides a lot of support in setting of
objective.There may be a lot of marketing objective, some are as follow:
?To Launch new variety chips with new flavors.Affluent institutes
?They produce chips in different ingredients to
capture more market share.They have 40 percent and 20 percent of the market
share respectively, Kamal said.There's a constant tension between the formulated side and it's
creative side.Create awareness among target audience.Target market:
Urban personality:
?Prosperous young professional
?Students and cosmopolitan
?This is mostly
done to capture youth attention.Pricing range from 3 to 40.Chips do not need too much promotion.It is done mostly by fair, E - commerce
and agent
?"This deal is part of our investment strategy for 2001," said Sawiris."This deal is part of our investment strategy for 2001," said Sawiris.Increase market share
??Increase sale by 50% in 6 month from the launch of public campaign
????????"We expect the value of the deal to increase.""We expect the value of the deal to increase."