Starbuck in Egypt

Table of Contents

1. Executive Summary..........................................................................................3

2. Company and Product Overview...........................................................................5

3. Market Attractiveness Assessment

1. Environment Overview

A. Political Setting

- Country of Origin and Political Risk.....................................10

- Political Systems ...........................................................11

- Business /Government Relations and Globalization ...................11

- Role of Government in Economy........................................12

B. Economic and Legal Overview

- Macroeconomic health ....................................................13

- Transportation and Infrastructure .......................................14

- Trade ........................................................................15

C. Industry Overview.........................................................................................16

D. Political and Economic Impact on Starbucks ......................................18

E. Cultural Aspects .......................................................................19

F. Legal Overview.............................................................................................23

2. Competitive Assessment

A. Local Existing Competition ...........................................................25

B. Possible Global Competition .........................................................27

C. SWOT Analysis .......................................................................28

3. Target Market Assessment ......................................................................28

4. Market Entry Strategy .......................................................................................31

5. Marketing Mix Plan

1. Price ................................................................................................36

2. Place ...............................................................................................37

3. Product ............................................................................................39

4. Promotion .........................................................................................41

6. Conclusion and Recommended Research.................................................................................44

7. Appendices ................................................................................................................................46

1. Appendices A - K

8. Works Cited ..............................................................................................................................72

Executive Summary

Executive Summary

Starbucks in Egypt is formula for success! There is no sense in not having a Starbucks in an environment among elites that is fiending for westernization and Americanization of products. Starbucks symbolizes the desired American lifestyle because not only is it hip, trendy and cool, it is for everyone and it has endless options. America is the land of endless options, and Egyptians want a share of that - so let's give them the right latte! To deliver the Starbucks experience to this elite class that is already acquainted with the products, we will open three strategic locations.

University students who are always seeking new things and experimenting with different ideas and also have a schedule that is on-the-go will now have a chance to grab a Frappucino on a hot day before or after class in Bab-El-Louk where the major international universities in Cairo are located. Private employees and multinational firm employees who only get to savor the Starbucks coffee when they are away on business in the United States and abroad will also have the chance to satisfy their cravings for their favorite cappuccinos when they visit the Nile Towers, two new large office buildings, where the second store will be located. Tourists and leisure visitors will also be able to get their Starbucks fix at the Zamalek neighborhood store. Zamalek is a historically significant and touristy neighborhood that is visited by Egyptians and international tourists and also houses the Egyptian elite.

To make this all happen, Starbucks will partner with Aboughali Group who will walk the company through the steps that are necessary to start a business in Egypt taking into consideration all of the local regulations and cultural aspects and lead the store into the most successful coffee chain in Cairo. Following the success of these first three locations, we will expand into Alexandria and other parts of Egypt.

Company and Product Overview