Introducing Young King Coconut Water in Glass Bottles to Egypt by Tropicana Food Products Inc.

Tropicana Food Products Inc. introduces a new product, 100% organic Young King Coconut Water in Glass Bottles, to Egypt. The report includes PESTEL analysis, market entry options, market segmentation, and Porter's Generic Strategy. The target market segments are fitness individuals between the age group of 20-30 and regular travelers between the age group of 30-40. Differentiation focus is selected to achieve competitive advantage.

Introducing “Young King Coconut Water” in Glass
bottles as a new product by Tropicana Food
Products Inc. to Egypt
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Executive summary
The following report analysis about the feasibility of Tropicana Food Products Inc. new
product which is made with 100% organic young king coconut water. The product is
beneficial to maintain the hydrating level of the body at hot climate and the 100% organic
factor is healthy for any age group. The company focus on moving to Egypt due to
government favorability of importing 100% organic products and reducing the tax rates for
such beverages.
As per the PESTEL analysis the beverage does not break any Islamic rule where the product
distribution certificate could be approved easily. Franchising is used to reduce the credit risks
and intellectual property risks.
Under the customer segmentation two groups will be focused such as the fitness individuals
between the age group of 20-30 and regular travelers between the age group of 30-40.
Through the Porter’s generic strategies Differentiation focus is selected to reduce the
economics of scale and to increase the product quality to compete in the market and gain
competitive advantage.
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Table of Contents
Executive summary....................................................................................................................2
Table of Contents.......................................................................................................................3
List of Figures............................................................................................................................4
List of Abbreviations..................................................................................................................4
1. Introduction........................................................................................................................5
2. PESTEL Analysis...............................................................................................................6
2.1 Politic...........................................................................................................................6
2.2 Economic.....................................................................................................................6
2.3 Social...........................................................................................................................6
2.4 Technological..............................................................................................................6
2.5 Environment................................................................................................................6
2.6 Law..............................................................................................................................7
2.7 Major Opportunities and Threats.................................................................................7
2.7.1 Opportunities.............................................................................................................7
2.7.2 Threats.......................................................................................................................7
3. Market Entry Options.............................................................................................................8
4.Market Segmentation..............................................................................................................9
4.1 Demographic Segmentation.............................................................................................9
4.2 Geographic Segmentation................................................................................................9
4.3 Psychographic Segmentation...........................................................................................9
5. Porter’s Generic Strategy.....................................................................................................11
6. Conclusion............................................................................................................................13
References................................................................................................................................14
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List of Figures
Figure 1.1Young King Coconut Water in Glass Bottle.............................................................6
Figure 5.1Porter's Generic Strategies.......................................................................................11
List of Abbreviations
TFP : Tropicana Food Products Inc.
GDP : Gross Domestic Products
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1. Introduction
Tropicana Food Products Inc. (TFP) is currently located in Pan-Philippine Hwy, San Pablo
City, 4000 Laguna, Philippines where the company manufactures refresh drinks from natural
fruits and bottle them. Therefore, their main ingredient is Coconut water and other products
are based on Coconut oil. Current workforce is 100 the company operates with growing
margins over the years. The company follows a tagline of “Life with refreshes” (TFP
products, 2019).
Source: Bee Green (2020)
With the rise of the competition the company decides to introduce a new product which is
with “young king coconut water” and caters under organic bottle drink which does not
include any added chemicals. The new product will be exported to Egypt since Egypt has
created high demand for 100% organic glass bottle drinks where no other Philippine
company is exporting 100% organic drinks to Egypt.
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Figure 1.1Young King Coconut Water in Glass Bottle

2. PESTEL Analysis
To understand the major opportunities and threats PESTEL analysis is conducted for the
chosen county which is Egypt.
2.1 Politic
Country’s decision-making power relies on the military rule where the political instability has
created from 2011. There is no democracy been flourished and there are many conflicts in the
country due to government plague. This has fuelled religious and ethnic conflicts where they
tend to use veto power to lead conflicts (Adamski, 2019). But the military rule has identified
the citizens should move towards more organic based products and has reduced the taxes by
5% for 100% organic products.
2.2 Economic
Country’s current population is 102,000,000 where the gross domestic product is at $361.875
billion and raked at 33rd place. The GDP growth is5.3% by 2019 and has decreased to 3% in
2020. The inflation rate is 5.9% and employment rate remains at 39.7% by 2019 but has a
growth of 8.1% in employment in 2020. The main industries are light manufacturing, textiles
and tourism. Their main import goods are good, wood, machinery equipment (Gould, 2019).
2.3 Social
Although the employment rate has increased but the crime rate has increased by 1%. This is
due to protests against the government and women constantly get harassed. There are many
malfunctioning been occurred at productivity levels but through tourism the country is able to
rise their head up along with their new introductions to different textiles (Kingsley, 2019).
2.4 Technological
Though ancient Egypt had technological advancements which has created incredible
buildings and pottery but currently they invent small machines for construction. Egypt is
ranked at 35th place in technological advancement but their network and connectivity system
is strong where better connectivity could be reached at even deserts due to strong satellite
combination with their telecommunication system (Manfreda, 2019). This has led in good
business to conduct via online systems.
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2.5 Environment
River Nile provides the major water but its being polluted due to industrial dumping.
Therefore, farmers face difficulties and soil has got corrupted due to chemicals and fertilizers.
This has led towards importing food and drinks from different countries. In order to maintain
healthy life style the government now looks for 100% organic products to be distributed in
the country (Kingsley, 2019).
2.6 Law
Country follows strict rules when importing food related items and where they products
needs to get the approval before brining stocks into the country. Under the Egypt law the
products should be under Islamic rules and certification of Halal is required including drinks
(Adamski, 2019).
2.7 Major Opportunities and Threats
As per the PESTEL analysis the identified threats and opportunities are as follows:
2.7.1 Opportunities
 Government encouraging imports of 100% organic food and beverages.
 The taxes for 100% organic products are low.
 Coconut products doesn’t impact on Islam rules where the certificate could be
approved easily.
 Better telecommunication service.
2.7.2 Threats
 Employment rate is low so the purchasing power is moderate.
 COVID 19 Pandemic
As per the analysis it is visible the threats are lesser than the opportunities. The pandemic can
create economic growth issues in any country and such affect business when entering into a
new market. But King Coconut is famous for keeping the body hydrates as well as it
replenishes the loss of electrolytes in the body during sweating. Thus, the drink is rich in
minerals such as magnesium, calcium and potassium (KingCoconut, 2018). It helps to
prevent fatigue and increase body metabolism which is good to prevent from viruses.
Since the unemployment rate is high the purchasing power of the customers will be a
question where the company has decided to have a penetration pricing strategy in order to
cater for any income level of customer.
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3. Market Entry Options
As per the Marketing Academic Book of Knowledge, the marketing entry strategies are
Direct exporting, Indirect exporting, Licensing, Franchising, and Joint Venture (Mario,
2018). Direct exporting is selling the products into the selected market directly. Licensing is
where one company transfers the rights to another company to use their products. Franchising
is where a person from a different market is used to conduct business int that country and
names as a franchisee. Joint venture is a partnership where two companies agree to work in a
particular market and creating a third company to undertake the created business. Indirect
exporting is where the company sells the products to an intermediary to sell directly to
customer or to import for wholesalers.
Every strategy has its pros and cons where the most suitable strategy needs to be selected
against the market specifications and highest number of advantages. But risks to need to be
analysed under each strategy. When entering a market, it has to be done with a proper plan
and research (Iffa, 2017).
Since there are many rules and regulations in the country it is wise to not have direct
exporting. The most suitable strategy is Franchising in order to reduce the unseen risks and to
reduce the financial commitments.
3.1 Selection of entry mode
To launch the product in Egypt Franchising is selected where a partner will conduct the
licensing and certification of the product. Then the product will be distributed to all super
markets. Having a franchisee, the advantage is he/she provides support in setting up the
business, has sufficient market knowledge and the contacts of the dealers to distribute easily.
Then the reliability, credit risks and intellectual property risks could be mitigated (Hayes,
2018).
But the disadvantages are the percentage of the sales need to be shares with the franchisee
and includes restrictions in agreements where sometimes the company might cannot make
changes to suit the market.
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When comparing the pros and cons it is visible the advantages are higher than the
disadvantages where franchising could provide business growth.
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4.Market Segmentation
Market segmentation is considered as the process of dividing the buyers into different and
measurable groups according the similar wants and needs they share, where targeting is
considered as identifying one or several groups which could bring profits and support
cooperate strategy and growth (Viraj, 2019). Therefore, segmentation is crucial in order to
make critical decision according the new market and the potential customer segments.
Marketing strategies need to be targeted according to such segmentation, while customer
segmentation helps to retain more customers, enhance the competitiveness, establish brand
identity, develop better customer relationship, improve channel of distribution and provides
best economics of sale (Aru, 2020).
4.1 Demographic Segmentation
The people who are regular visitors for gym and yoga classes between the age group of 20 to
30 will be a target group since they are more in to organic beverages. The individuals who are
into fitness search for products which increase their mineral level and consume those kinds of
food and beverages in order to maintain themselves. Therefore, the product will be ideal for
them. Thus, age group 20 to 30 are the highest level of individuals who are into fitness and
health consideration rather than the senior citizens.
Then regular travellers between 30 to 40 years of age are the next target group since young
king coconut water keeps the body hydrated than drinking water (Smith, 2020). When
travelling long distance in deserts in Egypt carrying a king coconut water bottle and dinking
enables to keep the body hydrates for a longer period and it helps to balance the body plasma
by acting as a saline to keep the energy level high of the body (Debnath, 2020). These factors
are beneficial for travellers and encourage to take this bottle at travelling.
4.2 Geographic Segmentation
The product will be distributed around the country and will be able to purchase at any super
market. Mainly near the tourist destinations such as near the deserts and near fitness centres.
The product will be distributed to fitness centres as a ready to drink product.
4.3 Psychographic Segmentation
The lifestyle and habits of the consumers will be targeted. Since the product’s main features
100% organic and keeping the body cool and hydrated will be beneficial for regular travellers
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since Egypt is a hot climate country where the people need to keep their body hydrated all the
time (Patil, 2018). Then the 100% organic factor helps to keep the body fit and healthy where
the product could be compared to a natural energy drink.
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5. Porter’s Generic Strategy
The company focuses on the competitive advantages of the new product when deploying
marketing strategies. When it comes to market strategy choose the most suitable model and it
is the Porter’s Generic Strategies where it focuses on four options (Emran, 2016). The options
are places against scope and source of competitive advantage. The four options are cost
leadership, cost focus, differentiation and differentiation focus. Cost leadership strategy focus
on reducing the cost through charging industry average prices and lead towards increasing
profits. Cost focus on increasing the market share through lower prices. Differentiation is
about delivering high quality products through development and innovation (Logan, 2015).
Differentiation focus is adding something extra to the product and serving the niche markets.
Source: Emran (2016)
As per the marketing team the most suitable is the Differentiation Focus in order to lower the
costs and to narrow the business by focusing on one product. Cost leadership and cost focus
not been selected since currently the business is focusing on one new product which is
different from the products in the market. Differentiation is not selected since the product is
innovative already and targeting more on differentiation focus enables to serve niche markets
rather than only focusing on innovation and development.
The target market segments are small where it has only two target groups. The special
customer needs are focused such as consuming natural mineral which is beneficial rather than
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Figure 5.1Porter's Generic Strategies

drinking cool water. The product creates validity through the different needs and wants for
the two groups. The travellers focus on keeping themselves hydrated under hot climates and
such could be achieved through the product. Also, the product comes in glass bottle where it
is eco friendly and reusable. Egypt is a niche market and the product is innovative where such
enables to standout in the market from the other product by leading towards differentiation
focus by enabling to obtain competitive advantage.
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6. Conclusion
This report provides the factors that TFP could introduce a new product into the Egypt
market since the government encourages 100% organic products to be imported along with
tax reductions which lead towards better profit margins. Thus, the country is unable to
produce their own beverages due to polluted water and the hot climate led the citizens to look
for hydrating drinks to keep them healthy and hydrated. Therefore, the two target groups are
the people who are into fitness between eh ages of 20-30 and travellers who are between the
ages 30-40. Differentiation focus is selected to achieve competitive advantage.
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References
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Aru, S., 2020. What Are The Benefits of Customer Segmentation For Your eCommerce
Business?, New York: Makewebber.
BeeGreen, 2020. Green Products. [Online]
Available at: https://veg.beegreenco.com/product/king-coconut-water-350ml-glass-bottle/
[Accessed 01 March 2021].
Debnath, K., 2020. Health Benefits of King Coconut, COlombo: Ceylon Today.
Emran, R., 2016. Porter's Generic Strategies, New York: Mond Tools.
Gould, R., 2019. Economy of Egypt, New York: Investopedia .
Hayes, A., 2018. Advantages and disadvantages of franchising. Journal on Marketing , 2(1),
pp. 10-12.
Iffa, T., 2017. What is Frnachise. Journal on Market Strategies, 1(2), pp. 1-10.
KingCoconut, 2018. Specialty produce. [Online]
Available at: https://specialtyproduce.com/produce/King_Coconut_15058.php#:~:text=King
%20coconuts%20are%20a%20rich,more%20potassium%20than%20a%20banana.
[Accessed 01 March 2021].
Kingsley, P., 2019. Egypt suffering work economic crisis, Cairo: Guardian.
Logan, D., 2015. Porters Generic Strategies. Journal on Strategies , 2(10), pp. 1-10.
Manfreda, P., 2019. Current situation in Egypt, Cairo: Daily News.
Mario, G., 2018. Market Entry Strategies. 3 ed. London: Harward Business School.
Patil, V., 2018. Coconut Water Market Insights, Geographic Segmentation and Sales
Analysis till 2025, New Delhi: New Delhi Press.
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Smith, S., 2020. Global Organic Coconut Water Market Dynamics, London: Transparency
Press.
TFP products, 2019. Tropicana Food Products. [Online]
Available at: http://www.coconutking.ph/
[Accessed 28 February 2021].
Viraj, D., 2019. 4 Types of Market Segmentation With Examples, New York: Alex Blog.
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