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marketing_planning_and_management - 1.Binzagr Company 1.1...

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1.Binzagr Company 1.1 Background Beit Binzagr (House of Binzagr) is a Saudi Arabian business group with diversified business interests. Binzagr Company, a subsidiary of Beit Binzagr, is a marketing and distribution company in the FMCG business. Beit Binzagr has been a pioneer in the development of local manufacturing of FMCG products. Currently they have five local manufacturing ventures: - Binzagr Lever (Collaboration with Unilever, PLC, UK) for the manufacture of soaps, detergents and toiletries. - Binzagr Lipton (Also in collaboration with Unilever, PLC, UK) for the production of Teabags. - Binzagr Coro (In collaboration with Coro Foods AS, Denmark) for the production of fruit juice drinks and squashes. - Best Foods Saudi Arabia (Also in collaboration with Unilever, PLC, and UK) for the production and refining of corn oil and corn oil based food products like mayonnaise and margarine. - Binzagr Match Factory Binzagr Company distributes products manufactured by the above Joint Ventures as well as products of foreign principals that it imports with sole distribution rights for Saudi Arabia. (Heinz, Kellogg’s, Kraft, Hershey, and United Biscuits, to name a few.) The company has 17 branches spread across the length and breadth of Saudi Arabia. Its distribution infrastructure gives the company enormous distribution muscle and a distribution capacity not matched by any other FMCG distributor in the country. 1.2 Binzagr Company’s Soft Drinks’ Business Soft Drinks account for just under a quarter of the company’s sales turnover. Its soft drinks’ portfolio consists of the following brands:
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a. Suntop and Suncola – Produced locally by Binzagr Coro. Suntop is a Fruit Juice product and Suncola is a non-carbonated cola both packed in 125ml and 250ml Tetra Pak brik. These two brands account for a combined share of 43% of the carton juice drinks sector. b. Sunquick – A concentrated fruit squash in glass bottles also produced locally by Binzagr Coro. Sunquick has a 57% share of the dilute drinks segment. c. Moussy – A non-alcoholic beer. (Referred to as malt beverage) Moussy is imported from Switzerland and accounts for over 50% share of the malt beverage market segment. While Binzagr Company’s Carton Juice Drinks’ business is a “Star” with a high relative market share and high sector growth rate, the Malt Beverage and Dilute Drinks businesses are “Cows” with high relative market share but a low segment growth rates and the Carbonates business is a “Question Mark” with a very low relative market share in a high volume segment. (Note: In this section on Industry Structure and Competitive Analysis, the terms ‘Binzagr’, ‘Binzagr Company’ and ‘Binzagr Coro’ are used interchangeably as referring to the same competitive entity.) 2. Trade Structure and Channels of Distribution 2.1 Trade Structure At the top-end of the market there are 330 supermarkets, each with a selling area of over 500 M 2. Approximately 259 are located in the main cities of Jeddah, Riyadh, Alkhobar
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