Modern Science and Arts University

International Marketing 401

Launching of Dido’s Restaurant in Sudan

Presented By: Waleed Kamal

Mohamed Fakhoury

Omar El Masry

Mostafa Foad

Hazem Ragab

Presented To: Dr. Omnia Zazzou

T.A Shimaa el Gammal

Company’s Profile:

In this part the researcher is interviewing Mr.Diaa Aly the founder of Dido’s, a local Italian

restaurant. Dido’s Firs branch was established in 1993 in zamalek. In 1993 that kind of

restaurants was new to the Egyptians, before that Egyptians were used to two things, either a

fancy restaurant with good food quality or a fast food place. But here Dido’s created a new style

of restaurants which is a casual restaurant with the characteristics and the spirit of a fast food

place with its small places. Also its very convenient prices contributed in their fast success,

because as Mr.Diaa Aly said “we solved the hard equation, good quality and taste with low

prices.”

But the fact it was a new idea was attractive to customers, and also the fact that the area which

Dido’s was first introduced was full of foreigners and embassies that are familiar with these kind

of restaurants. Now after the name of Dido’s became among the biggest restaurants in Egypt and

after opening a couple of branches Mr.Diaa Aly started to franchise. When asking Mr.Diaa Aly

about the factors that motivated him to franchise he used a very simple but very meaningful

Statement “franchising is a risk free business”, but when asking Mr.Diaa Aly how is it risk free

and after asking about the possibility of the failure of on of the franchisees then it will affect the

brand name and also about the issue that when this franchisee have the knowledge about Dido’s

operating system and their know-how that franchisee can be a potential competitor. Mr.Diaa Aly

responded by saying that because of these factors he have some points he insists that it is

mentioned in the contract, the first thing that these franchised branches remains under his direct

management to assure that the image remains the same, the second thing is that Mr.Diaa Aly use

his own staff to assure quality and confidentiality about their secrets. But other then that the

franchisee is responsible for all the overheads like the salaries, the location, gas, electricity,

equipment, and all the renovation. In addition of an initial fee for the right of using the brand

name for certain duration and an amount of money paid monthly as a royalty fee which is 10% of

the profit.

One of the problems faced Mr.Diaa Aly when he started open Dido’s in many place in Egypt he

faced what is called the sub-culture; the different cultures within the same country. People in

Maadi and Zamalek differs the people in Heliopolis and Nasr City.

Company’s Mission:

A new style of a casual restaurant with the characteristics and the spirit of a fast food place with its small places, providing high quality with its Italian Cuisine.

Company’s Vision:

Italian food for all with reasonable prices.

Dido’s Restaurant products in the domestic market “Egypt”:

Insalata Pizza Primi Piatti Nostri Specialita Pasta Specialita Soft Drink Dessert

Domestic price, place, promotion in contrast to country decided upon:

Our domestic prices are reasonable prices comparing to other Restaurants in Egypt.

Today after the huge success of the very 1st branch which was in Zamalek, Dido’s has 5 other branches, which are located in Heliopolis, Maadi, Mossdak, Nozha, and Rehab. Didos restaurants have become one of the good restaurants in Egypt serving Italian food with very reasonable prices. Didos like any other restaurants don’t have a lot of promotion except in Ramadan they serve full meals for iftar and sohor with reasonable prices in order to attract a lot of customers.

Pricing in Sudan will be different from the one in Egypt because of the economic situation of Sudan not everyone in Sudan can afford our prices.

We will try to chose a unique place to start there with the same store environment that we have in Egypt same decoration, same style of music and same store front.

As for the promotion the Sudanese T.V is not that effective because only the C&D class watch Sudanese T.V while the A&B which is our target market normally watch Nile sat cable T.V so we will have to focus on billboards and banners which will be much more effective than the T.V to reach our target market.

Why did we choose Sudan?

Sudan is booming economically and there is a lot of foreign direct investment in this country going on so for us we are targeting all the investors on that area and the locals as well.

Pizza and pasta are well known in the Sudanese environment and citizens there like it, so there will be no problem introducing these meals there and there are very few competitors.

So an Italian restaurant owned by an Egyptian will be welcomed there.

The amount of FDI is huge and it will increase by the next five years so the word opportunity will be spelled in capital letters.

Also the native language is also Arabic to there will be no lingual barriers and most important the nearness from the headquarters in Egypt. Sudan and Egypt were one country before they split so communication, acceptance and political barriers do not exist.

1. Sudanese markets do not have restaurants serving that kind of variety like Didos will have low competition with local restaurants and they can dominate the market of their target segment.

2. Sudanese market forecasts and many research studies indicated that by the end of year 2010 prices will be tripled and the economy is expected to boom, thus; if Didos opened a Restaurant there now with the current low prices and maintained a position in the market

by the end of 2010 they will benefit from the market boom and their profits will be tripled.

3. The common Arabic language “written not spoken” between Egypt and Sudan as well as the English language makes it easier as Didos would not have to change their menu.

4. Sudanese government wants to enhance investments in the market to keep up the expected growth after the discovery of petroleum and the establishment of peace (peace agreements signed in early 2005 between the government and Sudanese population liberation movement) this opened a new era of stability in the market. This stability and government willing to facilitate investments encourages for opening in this market (in the Sudanese market research study mentioned below are the facilities and their benefits for Didos.

Foreign SWOT Analysis

Strengths:

Didos offer high quality food with low prices. They serve a large variety of Italian food. Italian food prepared by highly trained Egyptian chefs that have experience preparing

Italian food. Founded in 1993 so people nowadays are very aware of Didos in Egypt. Dido’s is trying to invade the Middle East with its franchise.

Weakness:

Serving only famous traditional Italian food like pizza and pasta which a lot of places offer.

Opportunities:

Currency increases have given the people a higher buying power so now some can afford to go out to a nice Italian restaurant for dinner with the family

Low effect from financial crisis on the country’s economy. Densely populated areas in each city provide the restaurant with high chance of success

because of the fact that there are a lot of people around that could come to eat there. The economy is boosting. Sudan is looking for foreign investment and they want to expand and develop.

Threats:

Unstable government control could result in loss of business at any time Unsafe conditions due to civil war Weather conditions are different to those of Egypt which means it will take adaption by

management and staff.

How are We entering the market?

We are entering the market by franchising Didos brand in the Sudanese market.

First most Egyptian businesses that opened they were welcomed so it will be easy to the Sudanese culture to accept an Egyptian Italian Restaurant.

We need to announce that we are going to open long before we do so to somehow test the market perception of the Sudanese.

Franchising is beneficial since we will show them how to operated the business and the resources they need in that case they wont need a lot of resources since Sudan is well known for its agriculture so the vegetables, flour and other will not be imported since its found in Sudan.

Marketing Research for Sudanese market:

Political, Legal and Economical forces:

o Sudan became an independent state on 1 January 1956.

o The 21-year civil war in Sudan, political instability and economic mismanagement has all served to severely inhibit economic growth and stability. The Sudanese economy was predominately agricultural and pastoral, with agriculture composition of GDP by kind of economic activity at 40%. About 75% of the population lives in rural areas. Agriculture remains an important sector engaging around 80% of the population.

o After two decades of civil war, the Comprehensive Peace Agreement signed in early 2005 between the government and the Sudanese Population Liberation Movement, it opened a new era of stability.

o There is currently an EU arms embargo on Sudan.  The USA has imposed sanctions on Sudan, including a trade embargo, and UK companies need to be aware of this if exported goods or parts of goods are of US origin.  Exemptions to US sanctions were made last year for specified regions of Sudan.  2007 saw several high profile companies withdrawing from Sudan citing the appalling humanitarian situation in Darfur as their reason.

o The judicial branch of the northern government consists of a Constitutional Court of nine justices, the National Supreme Court and National Courts of Appeal, and other national courts; the National Judicial Service Commission provides overall management for the judiciary

o Sudan's current political system is laid out in the 2005 Interim National Constitution, which itself is based largely on the CPA. The president must rule in conjunction with two vice-presidents and is required to receive approval from the first vice-president over issues such as the appointment of senior judges, the suspension of parliament or declarations of war. If the president is a northerner, as is the case in the GNU under Mr Bashir, the president of Southern Sudan—currently Salva Kiir, the head of the SPLM—is guaranteed the position of first vice-president. The GOSS receives 50% of revenue from oil fields in the south (after 2% is set aside for the oil-producing states), has tax-raising powers and is responsible for the allocation of funds for Southern Sudan's development. In addition to the national government and GOSS political institutions in Khartoum, each of Sudan's provinces has its own legislature and executive. Elections at all levels of government must be held no later than July 2009, the end of the fourth year of the interim period.

o Northern position parties (since north is where we plan to open): Historically, the two most influential northern political parties were the Umma Party, which draws its support from the Ansar, an Islamist movement that ruled Sudan in the late 19th century, and the Democratic Unionist Party (DUP), which favoured union with Egypt after independence and is associated with the Khatmiyya Sufi order. Both, however, have been weakened and divided by the long rule of the NCP and its efforts to co-opt them, which led to the formation of pro-government splinter factions such as the Umma Party (Reform and Renewal) and the DUP-Sharif al-Hindi. The National Democratic Alliance (NDA), an umbrella body of opposition and rebel groups formed in 1989 after the NPC's coup, has also suffered from disunity, with many members leaving. In 2005 what remained of the NDA—by then a mainly DUP-led body—signed a reconciliation agreement with the government and was allocated two cabinet posts in the GNU, and 20 seats in the National Assembly. The mainstream Umma Party has refused to take up its allocation of seats, as has the Popular Congress, a party set up by Mr. Turabi after his expulsion from the NCP in 2000.

o Increased revenue from oil exports could boost the economy and have a positive impact on the food security and nutrition situation. Sudan is both a least developed and low-income food-deficit country. Conflict in the south and western parts of the country compounded by climatic problems such as drought and floods have caused severe food deficits, loss of livelihoods and major population displacements.

o The economy of Sudan is based on agricultural production, which represents a major share of the GDP. Oil production is becoming an important sector of the economy.

o The country has taken some steps to move from a socialist to a market-based economy and has started to reform its finance and foreign exchange systems. The public sector remains however dominant in the economy.

o In recent years the economic situation has improved with new flows of revenue from oil exports, and agriculture helped by favourable weather.  Sudan is the only oil producing East African country. State owned Asia-Pacific companies from China, India and Malaysia are large investors in Sudan's oil sector.  Under the wealth sharing protocol of the Comprehensive Peace Agreement, revenue from the oil reserves will be distributed equally between the National Government and northern states, and the Government of South Sudan. The economy remains largely state-controlled though privatization is speeding up. Important foreign investors are China, Malaysia, several Gulf States, India, Indonesia and South Korea. Major Industries are oil and petroleum products, cotton, sesame, groundnuts, gum Arabic and sugar. Sudan’s principal imports are foodstuffs, beverages, chemicals, manufactured goods, machinery and transport equipment. Major trading partners are Japan, China, Saudi Arabia, Kuwait, UAE, Germany, UK, France, Turkey and Egypt.  A lasting and sustained peace is a pre-condition of continued improvement.

o Differences in food availability, climate, as well as regional food habits and

traditions result in considerable regional variation in food consumption patterns in Sudan. Sorghum is the main staple of a major part of the rural population. Millet, along with sorghum, is especially important in western Sudan, while wheat, mainly consumed as bread, is of increasing importance to the diet in urban areas and in the north.

Cultural forces:

I. Description of the Sudanese culture:

A. Demographics:

20,000 refugees in America (July 2004), most are from Southern Sudan and are not Muslim.

418 refugees were placed in Maine from 1982 – 2002.

Largest population (100+) in Portland area is the Acholi tribe from Southern Sudan. There are more women than men and there are many single mothers.

B. Brief History:

Before 1956, Sudan was controlled by the United Kingdom and Egypt and divided into three regions based on ethnicity and religion:

o North - Muslims of Arabic descent o East – Muslims of indigenous Sudanese descent o South - Indigenous Sudanese with traditional beliefs

Civil war has been raging in Sudan since 1956, when the United Kingdom and Egypt relinquished their power and left Sudan to govern itself. The predominantly Islamic North has attempted to force Islamic law on the West and South leading to a bloody war throughout the entire country.

Approximately 4,750,000 refugees have fled Sudan, most of them from the South. This is excluding over 1,300,000 who died while fleeing.

C. Holidays:

January 1st is Independence Day; celebrating the end of British occupation in 1956 and is celebrated throughout Sudan.

Muslim:

o Eid Ramadan is the 9th month of the lunar calendar. It consists of 30 days of fasting from sunrise to sunset. It ends with feasting that lasts for 3-4 days.

Christian:

o Traditional Christian holidays such as Easter and Christmas are celebrated; however the spiritual aspects are emphasized over gift-giving and receiving.

D. Food:

Common foods include chicken, beef, kidney beans, various greens, and asida, a thick porridge made from cornmeal flour and water.

Foods are eaten with the right hand, using flat bread called tamiem, or asida. Eating habits and foods are very traditional and tribally influenced. They may be difficult

to change, even when better foods are available.

E. Language/Communication:

Arabic and English are the most commonly spoken languages. There are also 134 living languages and over 500 tribal dialects.

Handshaking is appropriate; however some women may be uncomfortable shaking hands with a man.

Sudanese tend to stand close while speaking, although with the opposite sex, a respectful distance is maintained.

Small talk to establish friendly relations at the beginning of every encounter is considered polite and necessary.

Muslim women may avoid eye contact with men in order to show respect.

Relative age is very important in determining level of respect and formality and elders should be addressed as either “Aunt” or “Uncle”.

Men tend to speak English better than women, due to access to education, so a husband may attend appointments with his wife simply to interpret.

Pointing with the index finger is thought to be rude.

F. Family Relationships and Roles :

Family is more important than the individual and more influential than nationality or religion.

The male “head of household” should be given respect. Men are expected to work and provide food and shelter for their families.

Women are expected to raise the children and run the household.

Great emphasis is placed on a woman’s ability to bear and raise children.

Decisions are generally shared and couples are mutually supportive.

Divorce is possible, but discouraged.

Respect for parents is highly valued and a must for children. Spanking as a form of discipline is accepted and considered necessary.

Competitive forces:

As mentioned above there are no Restaurants like Didos serving Italian food cooked by Egyptians at a very reasonable price in Sudan. Their competitors would be local restaurants. Concluding from the above that the competition is very low and since Didos targeted segment have a certain high standard criteria we can say that there is no competition and Didos can dominate the market it’s targeting.

Area and geographical features:

Sudan is the largest country in Africa (2,505,810 sq km - 967,500 sq miles) and the ninth largest country on earth. Sudan has borders with Egypt, Libya, Chad, Central African

Republic, Democratic Republic of Congo, Uganda, Kenya, Ethiopia, Eritrea and the Red Sea. Situated in the north-eastern part of Africa, Sudan has a climate ranging from very arid in the northern parts to equatorial in its most southern parts. The central part is occupied by savannah. The population of the country is approximately 33 million, living in an area of 2.5 million km2. Although urbanization rate is high, the country is still predominantly rural.

Sudan is mostly flat. The north is desert, with a mix of sand and gravel. In the west is the Libyan Desert, part of the Sahara. To the east is the Nubian Desert, which is very barren. South Sudan is made up of huge clay plain. The Blue Nile has its source in the Ethiopian Highlands and the White Nile has its source in Lake Victoria. The White Nile flows through Uganda before entering Sudan.

Ethnic Groups: Black 52%, Arab 39%, Beja 6%, foreigners 2%, other 1%.

Principal Religions Sunni Muslim in the North - 70%, indigenous beliefs 25%, Christian 5%.

Khartoum: population is around 6 million. Built where the Blue Nile meets the White Nile Khartoum is one of the more modern cities in Central Africa. Khartoum is the main industrial and commercial city in Sudan. It has three main parts - Khartoum, Khartoum North (Bahri) and Omdurman.

Standard of living: The standard of living in Sudan is low. The per capita income in 2005 was US $ 780. Significant variation exists with conditions in Khartoum much better than elsewhere.

Administrative divisions: 26 states (wilayat, singular—wilayah); A'ali an Nil, Al Bahr al Ahmar, Al Buhayrat, Al Jazirah, Al Khartoum, Al Qadarif, Al Wahdah, An Nil al Abyad, An Nil al Azraq, Ash Shamaliyah, Bahr al Jabal, Gharb al Istiwa'iyah, Gharb Bahr al Ghazal, Gharb Darfur, Gharb Kurdufan, Janub Darfur, Janub Kurdufan, Junqali, Kassala, Nahr an Nil, Shamal Bahr al Ghazal, Shamal Darfur, Shamal Kurdufan, Sharq al Istiwa'iyah, Sinnar, Warab

.

Ele ctricity, power, and communication supply:

Power and gas:

All bigger Sudanese cities possess a power network (220V/50Hz). However, due to fuel and spare parts situations there are frequently power cuts and current fluctuations (+/- 10-20% and even more). If you plan to bring a private PC or notebook, take a voltage stabiliser with you, too. In almost every house you will find the German and the British plug system alike. Adapters can be easily purchased in Khartoum. Not only for rural areas it is advisable to pack a good flashlight, batteries are available in Sudan. For cooking gas stoves with a bottle are usually used. In northern Sudan these are generally and cheaply available at most places. In Juba gas is more expensive and more difficult to get.

Telephone and internet:

In most project locations in landline connections (also international) are available. Nowadays, there are even digital carriers which offer telephone and internet services, like Sudatel or Canar. Mobile phone companies (Zain, MTN, Sudani) offer their services throughout the country and are a good alternative to the good old landline. NB: In the South, Sudani works better than Zain, and vice versa.

Internet cafés can be found in every  bigger city in Sudan. However, besides the above mentioned option for DSL plus landline telephone connection, there is also the possibility of a mobile UMTS internet connection (Zain, Sudani). Monthly costs range between 50-250 SDG.

Water:

Water supply is delivered through public or private waterworks, wells, or in smaller villages by vendors with donkey carriages. Quality and availability may change throughout the year, so make sure to always have some water reserves stored. In Juba the supplied water is purified Nile water delivered by tank lorries. Anywhere you live, always filter your drinking water! Filters are often installed in the houses in bigger cities, but can also be purchased in Sudan if necessary.

Me d i a services:

Generally, media censorship in Sudan has been weaker than in many Arab states, with some newspapers and broadcasters having leeway to criticise the government. However, press censorship was re-imposed in February 2008, with censors making daily visits to major newspapers and sometimes cutting so much material that papers have been unable to publish. Human Rights Watch published a report in February 2009 highlighting the harassment of journalists. The SPLM and opposition parties have been calling for an end to censorship if the elections due this year are to be free and fair. The government runs the national television service, Sudan TV, but since the CPA was signed a number of

private radio stations have been established in the north. The SPLM runs its own newspapers and there are some independent media in the south.

Streets which we can put billboards for Didos are: Al-Gomhouria st, Al-matar st, Al-souq al-arabi st and souq omdurman.

Land, labour, streets infrastructure, and service facilities:

Land: Now Sudan’s capital Khartoum is experiencing a construction boom as the country recovers from years of civil war. Today, the average piece of land price in downtown Khartoum (400 sq meters to 1000 sq meters) range from half-million to two million US dollars.

Labor: The average wage of a worker in Sudan is 1000 SDG/month.

o Official working hours:

  Summer: 07:30 am to 2:30 pm

  Winter: 8:00 am to 3:00 pm

o Weekends and official holidays:

Friday is the official weekend all over the country

The weekend in the southern states is Sunday

o Festivals and Official holidays:

- Aladha Festival: 9-12 Thul Hija

- Birth of the Prophet: 12 Rabie Al-Awal

- Israa and Mirag: 27 Rajab

- Al Fitr festival: 1 Sha’ban

- New Hijri Years day

- Christmas: 25th December

- Independence Day: 1st January

- National Salvation Revolution Anniversary: 30th June 

Streets infrastructure and service facilities:

o The availability of free zones in Suakin and El-Jaili cities grant encouraging exemptions to investors.

o The availability of a banking sector, insurance sector, auditing, financial, technical and legal consultancy services.

o The availability of educational and health facilities of high standard which contribute to providing necessary services to citizens and expatriates.

o The availability of a modern construction sector which contributed to the abundance of houses, and offices rising to fulfill investors’ requirements.

Our Goal

Our goal is launching Didos Restaurant in Sudan specifically in Khartoum where our target customer exists.

Media Plan

We will start a campaign before launching with one month and continue till after launching with 2 months, so our awareness and inducing trial campaign will last for 3 months. The following activities will be included:

Bill board Sucette News paper Sales Promotion

Slogan:

Sudanese si parla e mangia italiano.

Sudanese will speak and eat Italian.

ايطالي وياكلوا هيتكلموا السودانيينBillboard: Billboards will be spread all over Khartoum main roads and highways in order to capture eyes of the Sudanese citizens and expats.

Newspaper:

We will advertise in newspaper as well since a lot of Sudanese citizens like to read the newspaper everyday so the largest newspaper in Sudan is el Rayaam and another English newspaper called Khartoum monitor.

Ads will be every Friday since it’s a holiday so a lot of people like to read the newspaper in the morning with their cup of tea.

Sucette :

Sucttes will be surrounded by malls, schools, universities and main roads 2 month before launching we will do sucette teasers to make people wonder what didos is by that way people will be eager to know what didos means.

Sales promotion:

1st month of launching we will serve complementary salads and pizza slices to our guests to taste the variety of food we have got. Also if you spend more the 50 Sudanese pound you will have 50% for the second dish