Headphone Market in Africa Essay

Submitted By davidpiper16
Words: 5302
Pages: 22


 

Headphones
 in
 Africa
 
Consumer
 Behavior
 –
 April
 10,
 2014
 
David
 Piper,
 Joe
 Fedak,
 Michael
 Gallo,
 &
 Nick
 Bruno
 


 

 

High Potential Country 1 - Egypt
Sources - 1. https://www.cia.gov/library/publications/the-world-factbook/geos/eg.html
2. http://www.euromonitor.com/retailing-in-egypt/report
3. http://www.nationsencyclopedia.com/economies/Africa/Egypt-INFRASTRUCTUREPOWER-AND-COMMUNICATIONS.html
Economic

Political

Demographic

With a Gross Domestic Product of $230 billion (2013 estimate),
Egypt represents one of the most prominent, and profitable, markets in
Africa. Although at first glance, the low per capita GDP may be cause
for concern in the short term, in actuality the $6,600 per capita income
is relatively high compared with some of the other nations on the
continent. With a diversified economy with major sectors in tourism,
agriculture, services, and industry, Egypt is one of the most modern
and technologically advanced nations in a continent still reeling the
aftermath of European imperialism. Egypt’s 5.2% GDP growth since
2007 and various economic reforms to balance income inequality are
an auspicious signs that better times lay ahead for the people of this
ancient land and the demand for consumer electronics will inevitably
rise.
The Arab Republic of Egypt was founded July 23, 1952. The head of
state is the president; the post being held in the interim by Aldy
Mansour following a coup d’état. Legislation is accomplished through
a one house legislative body, the House of Representatives. In recent
years, civil unrest and discontent with the government has kept Egypt
in the news cycle. At first glance, this may make Egypt an unfavorable
place to begin penetrating the African continent; however, we’re
optimistic that the worst is over, and the elections scheduled for this
May will go a long way in stabilize the country. In the early part of
this century, Egypt’s government worked to encourage foreign
investment, however, recent developments forced the nation to adopt a
more protectionist policies.
Boasting a population of 87 million people, Egypt is the third most
populous country in Africa. Furthermore, almost half the population
has been born within the last 25 years. The market for headphones in
Egypt is only going to expand. The vast majority of the population is
concentrated among the urban areas along the Nile valley. This is

different from other African countries, which are less developed. The
youthful urban population is more tech savvy and should quickly
adopt our product.
Cultural

Current Market

Price

Promotion

Product
Features

Channels

As the largest country in the Arabic world and lying at the cross roads
of two continents, Egypt tends to be a trend setter in the region. Egypt
is home to a primarily Muslim population. If we can win over the
cosmopolitan people of Egypt, we will have a jump start to moving
into other Middle Eastern and North African markets. The primary
language is Arabic, spoken universally across the land, though many
in the upper classes know English or French. Music has always been
an integral part of Egyptian culture since antiquity, so headphones are
something that will really capture public interest. Egypt’s media is less
regulated than other countries in the Middle East thus allow more
creative freedom; Egypt television and film industries are widely
broadcast and highly influential in the region. Sports are popular in the
country, with soccer being the most popular, along with tennis and
squash, giving us opportunities for sponsorships.
Most of the bigger brands in the industry have some presence or are
working to build one. These include industry leaders such as Beats
and Bose. However, in Middle Eastern countries there is usually some
hostility toward Western companies, so if we can