an economic view for Toshiba laptop, marketing view.

1. An Economic View of:
Toshiba Laptops
Presented by:
Presented to:
Dr. Doaa Salman
Mohamed M.Osman

2. Outline
•
Mission, Vision and Goal.
•
•
Social Responsibility
o
Business to Customer
•
Executive Summary:
o
Business to Business
o
Retail Segment
o Pest Analysis
Supply and Demand
o Market Analysis.
•
Supply Analysis
o Market Share.
•
Elasticity
o Market Type.
•
Pricing Approach
•
Cost and Benefit Analysis
Positioning
•
Demand Analysis
o Statistical Facts.
•
•
•
Findings
Our Product
•
References
•
Social Responsibility
Segmentation, Targeting and

3. Goal & Vision
• Our Goal is to be the best Arab
and African Egyptian company in
this field by the end of 2014.
• Our Vision is to be the African
and Middle Eastern leader in the
field.

4. Our Mission
• To provide high quality products that incorporate high
technology to meet the needs and expectations of our
consumers.

5. Executive Summary
About IDC,
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for
the information technology, telecommunications, and consumer technology markets.
http://www.idc.com

6. Environment of the Company

7. Market analysis
• Target markets: we Segmented the market to “B2C,
B2B and Retail”
• Demographic: High Population,
• “Egypt will also benefit from youthful demographics and
improving information and communication technology
infrastructure”
• Geographic: “The geographical location is good for trade,
as Egypt has access to both the Mediterranean and the Red
Sea”
• Behavior factors: Price sensitive but with a high
potentiality to buy

8. Market analysis
• Market needs: Innovation and convenience associated with
valuable price.
• Market Growth:
Egypt's computer hardware sales are projected at US$862mn
in 2010 and are forecast to reach around US$1.6bn in 2014.
Computer penetration is forecast to rise from a little above
10% currently to about 19% in 2014, and annual computer
sales could increase to nearly 470,000 by the end of BMI's
forecast period.
Reference:
http://www.prlog.org/10788906-new-market-research-reportegypt-information-technology-report-q3-2010.html

9. Statistical Facts
IDC EMEA PC Tracker Forecast Update Q3 and Q4 2011
IDC, May 2011
FOR INTERNAL USE ONLY
Region
Country
Product Category
Middle East & Africa
Egypt
Notebooks
Consumer/Commerc
ial
(All)
Home/SMB/Corp
(All)
End User Segment (All)
Year
2011
Data
Quarter
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Grand Total
Units
67,706
67,740
74,781
79,611
289,838
Value ($M)
$79.15
$81.05
$91.66
$95.82
$347.68
Value (€M)
€52.89
€54.16
€61.26
€64.04
€232.35
ASP ($)
$1,169
$1,196
$1,226
$1,204
$1,200
ASP (€)
€781
€800
€819
€804
€802

10. Market Share

11. Market Type
• Monopolistic competition:
• Differentiated product is where the product has
options or technology or colors or knowhow,
any value added for the product.
• Here comes The Positioning:
• We are positioning our product in the area of
Durability and Security

12. STP
• Segmentation:
• Business to Business, Business to Customer and
Retail
• Targeting:
• In B2B we are targeting Banks, In B2C we are
targeting loyal customers seeking high end
technology, In Retail we are targeting Hyper
markets
• Positioning:
• Durability and Security

13. Our Product
• The diminishing of the PC market shows how
the trend leans towards laptops
• Although the market of new tablet devices is
emerging strongly but still consumers perceive
the tablets as a secondary device “as tablets
rely on laptops as power and data sources”

14. Business to Customer
Satellite C660-21G

15. B2C
Segmentation:
Age: 18 : 40 years old “College students, Gamers,
Multimedia and Internet users and IT personnel”
Sex: Any
Product features:
• Core I3, 15.6“ full keyboard, HD 500 GB, 4 GB Ram
Satellite C660 1ME
Price
Q Sold “3700
Total”
Satellite C660 21G
Price
Q Sold “4500
Total”
4666
452
4199
900
4444
461
4099
1043
4299
854
3999
1057
4099
1933
3700
1500

16. B2C Supply and Demand
Supply
Demand

17. Business to Business
Tecra M11
Tecra R840

18. B2B
• Here we are targeting Banks and big entities via tenders
Segmentation:
Age: 30 : 55 years old “Businessmen who are travelling a lot, Managers
seeking data protection and light weight laptop, IT personnel on the move”
Sex: Any
Product features:
• Core I7, 13.3“ with finger print security system, HD 128 SSD
technology, 4GB Ram
Tecra M11 Price
Q Sold “750 Total”
Tecra R840 Price Q Sold “750
Total”
7000
100
7900
150
6500
250
7500
250
5900
400
6900
350

19. B2B Supply and Demand
Supply
Demand

20. Retail
• Satellite C660-1DV 3500 total
• Here we are targeting big hyper markets like Carrefour, CompuMe & Hyper 1
Segmentation:
Hyper markets that are willing to buy big quantities
Product features:
• Core I3, 15.6“ Full Keyboard, HD 500 GB, 4GB Ram
Price
Quantity
2900
1800
2900
1100
2900
600

21. Retail Demand Curve
Retail
Retail

22. Total Demand and Supply
Demand
Supply

23. Demand Analysis
Demand is affected by below variables:
• Innovations
• PLC
• Promotions.
• Competition.

24. Supply Analysis
• Supply is affected by below Variables:
• Pros:
• No Customs
• Cons:
• Currency exchange rate
• PLC

25. Elasticity
Our Product is Elastic due to below:
• Many Substitutes available
• Perceived as between necessity and luxury
• Isn’t unique in all features
• Consumer can easily compare our product with
competitors products
• Our product is a shopping product “Consumer is
comparing, deciding and paying high amount of
money and doesn’t buy it frequently”
• Price is an indicator of quality by customer

26. B2C Segment Elasticity
Satellite C660-1ME
Price
Quantity
∆ Price
∆ Quantity
Elasticity
Description
4666
452
No change
No change
_
_
4444
461
.0487
.0197
.40
Inelastic
4299
854
.0331
.5977
18.05
Elastic
4099
1933
.0476
.787
16.5
Elastic
Satellite C660-21G
Price
Quantity
∆ Price
∆ Quantity
Elasticity
Description
4199
900
No change
No change
_
_
4099
1043
.0241
.147
.61
Inelastic
3999
1057
.0246
.0133
.0542
Inelastic
3700
1500
.0776
.346
4.465
Elastic

27. B2B Segment Elasticity
Tecra M11
Price
Quantity
∆ Price
∆ Quantity
Elasticity
Description
7000
100
No change
No change
_
_
6500
250
.0740
.857
11.58
Elastic
5900
400
.0967
.461
4.77
Elastic
Tecra R840
Price
Quantity
∆ Price
∆ Quantity
Elasticity
Description
7900
150
No change
No change
_
_
7500
250
.0519
.5
9.634
Elastic
6900
350
.0833
.333
4.0002
Elastic

28. Retailers
Satellite C660-1DV
Price
Quantity
∆ Price
∆ Quantity
2900
1800
0
0
2900
1100
0
.482
2900
600
0
.588
Elasticity
Description
∞
∞
Perfectly
Elastic
Perfectly
Elastic

29. Pricing Approach
• Cost Based Pricing Approach

30. Cost and Benefit Analysis
• Profit margin is 25% of total cost
• Risk margin is considering the exchange rate
of 1 USD at 10 EGP

31. Total Units
13200
Total Revenue
54591520
AVG Price
4135.721
Basic AVG cost of unit
2922.668
Fixed Cost
Rents & utilities
1800000
100 employees * Avg salary 2000 * 6 months
Variable cost
Shipment $13 per unit
Internal Transportation
Total cost of units
1716000
78000
38579216
Total Cost
Profit
AVG Cost of Unit
43673216
10918304
3308.577
Break Even Quantity
1500000
10560

32. Findings
• Market is a Monopolistic Competition.
• We need to sell 10560 units to get to the Breakeven point
• ROI = 25% which is better that any interest given by any
risk free investment
• Market Share is 20% which can be enhanced via extending
in the Retail segment
• Highest profit comes from the B2C segment
• Short Product life cycle due to innovations

33. • Market is open for any new competitors to enter.
• Consumers are price sensitive but with a high
potentiality to buy.
• Price cutting raises the Demand.
• Supply Curve follows the Demand curve because we
are limited in share from Toshiba headquarters.
• Demand is always increasing against the decrease in
price which reflects the elasticity of our product.

34. References
• Our internal Sales department
• World Fact Book “CIA.Gov”
• IDC “private research company”
• Central Bank of Egypt
http://www.cbe.org.eg/Publications.htm

35. Supporting Websites
•
•
Ministry of Trade and Industry
http://www.tpegypt.gov.eg/Statistics/Electronic_%20Engineering.pdf
•
•
http://www.capmas.gov.eg/
•
•
General Organization of Export and Import Control
http://www.goeic.gov.eg/
•
•
The World Bank
http://data.worldbank.org/country/egypt-arab-republic
•
•
Wikipedia the free encyclopedia
http://en.wikipedia.org/wiki/Economy_of_Egypt
•
•
Central Intelligence Agency – The World Fact Book
https://www.cia.gov/library/publications/the-world-factbook/geos/eg.html

36. Social Responsibilities
• Masjid “Al
Rahman Al Raheem” Salah Salem road,
• Built on 2500 square meters
• REF: http://www.youm7.com/News.asp?NewsID=127440&