OKHTEIN
Supervised by Dr ayman shawky
Nermin fathy
Mina adel
Nourhan Mohamed
Omar wassef
Alaa el shamy
Abdelrahman el bayoumi
Passent amr
Executive Summary
Mainly women from 20 to 50 years old with higher level of education high social class that enjoy being
active in social circles
Objectives of Marketing Strategy:
 Maximization of sales
 Brand promotion
 Size of market share
 Profit maximization
Place & Distribution:
Okhtein is known for its creative craftsmanship and design that is related to the Egyptian historic and
traditional style. Which is why we will remain manufacturing in Egypt with our craftsmen and stores to
ensure the same quality and spread our country’s talent even further.
Promotion Strategy:
Okhtein gained its consumers so far through its collaborations with celebrities.
SWOT
Strengths:
 good industrial growth in the country: Italian industries concentrated in northern part of the
country (Milan – Venice- Turin)
Weakness
-most of designs are small sized bags do not fit all ages with different styles.
-social media reviews about product shortage on the website
Opportunities
-strong purchasing power as GDP of Italy 2022 (Real GDP growth is projected at 3.7% in 2022, slowing to
0.2% in 2023.)
-affordable prices than competitors in Italian market, obsession with fashion trends
Challenges::
-new entrants in Italian market
-variety of brands and competitors
-rapid change in fashion trends
Recommendation:
 Increase awareness and social media.
 Encountering shortage of products
Mission:
The revival of the world's rich history, vast cultures and art to the betterment of today's
creativity.
proposing to design statement pieces that were both stylish and built-to-last.
Company Profile:
Operator of luxury apparel and fashion brand based in Zamalek, Egypt. The company's products include
bags and accessories such as belts, eyewear, pouch as well as cardholder.
Egyptian design duo siblings Aya and Mounaz Abdelraouf launched their brand Okhtein – meaning,
appropriately, “sisters” in Arabic – because of their vision to bring true luxury back to their home country
as well as drawing international attention to the inherent refinement of Egyptian art, sensing a gap in the
market for true luxury accessories produced in Egypt. Launched in 2013, Okhtein seeks to set new trends,
promoting Egyptian artistry as well as presenting new designs to the world.
Born and raised in Cairo, Aya and Mounaz’s fascination with fashion began at a young age with Aya
studying communication and media arts along with digital arts and design at the American University of
Cairo. Her sister Mounaz studied marketing and art at the same institution. As well as his, Mounaz is a
highly skilled painter and has exhibited her work in galleries in Egypt and Paris. As a brand, Okhtein is
remarkable due to its hyperlocal manufacturing process. Each Okhtein product has a unique provenance
with deep cultural associations. To manufacture their products, Aya and Mounaz felt compelled to take a
philanthropic approach to their work out of a desire to incorporate more handmade embroidery and straw
into their leatherwork. This led to a highly mutually rewarding collaboration with several local NGOs (NonGovernmental Organization) that work to provide assistance to skilled female workers who have faced
considerable financial hardship. Okhtein stands apart as a luxury brand that is truly committed to
supporting the cultural value of Egyptian craftsmanship and to giving back to those in need while
promoting innovative, cutting-edge design on an international scale.
Today Okhtein is a fast-growing business, with sales picking up by 476% year-on-year in 2017. In 2018, the
brand sold 3,000 bags with 34% of sales coming from from international markets. It is an achievement that
has propelled the two entrepreneurs, Mounaz, 28 and Aya, 27, into Forbes Middle East’s prestigious 2019
class of the Middle East’s 30 under 30.
Suggested Countries for Entry:
Country
Population
Population by
Gender
GDP
Inflation rate
Qatar
Italy
2.6 M
59 M
3 males: 1 Female 93 males: 100
females
$ 179.8 Billions
$ 2.1 Trillions
3.18%
11.6%
Turkey
85 M
97 males:100
females
$ 819 Billions
69%
Due to the small market of Qatar will be excluded.
Due to the high inflation rate, that will affect purchasing power and also due to uncertainty and political
instability in turkey, On the other hand, Italy’s population is a good market and GDP talks about purchasing
Power, percentage of female’s n population and finally culturally Italians are much interested in fashion
and fine arts.
We will choose Italy as Country for entry.
Okhtein Hofstede’s Cultural
POWER DISTANCE
With a score of 50, Northern Italy tends to prefer equality and a decentralization of power and
decision-making. Control and formal supervision is generally disliked among the younger
generation, who demonstrate a preference for teamwork and an open management style. Bear in
mind that the high score on Individualism accentuates the aversion of being controlled and told
what to do.
In Southern Italy all the consequences of PDI are often high, quite the opposite of Northern Italy.
INDIVIDUALISM
At a score of 76 Italy is an Individualist culture, “me” centered, especially in the big and rich cities
of the North where people can feel alone even in the middle of a big and busy crowd. So family
and friends becomes an important antidote to this feeling; but the word “friend” should not be
misinterpreted because in business it has a slightly different meaning: someone that you know
and can be useful for introducing you to the important or powerful people.
MASCULINITY
At 70 Italy is a Masculine society – highly success oriented and driven. Children are taught from
an early age that competition is good and to be a winner is important in one’s life. Italians show
their success by acquiring status symbols such as a beautiful car, a big house, a yacht and travels
to exotic countries. As the working environment is the place where every Italian can reach his/her
success, competition among colleagues for making a career can be very strong.
UNCERTAINTY AVOIDANCE
At 75 Italy has a high score on Uncertainty Avoidance which means that as a nation Italians are
not comfortable in ambiguous situations. Formality in Italian society is important and the Italian
penal and civil code are complicated with clauses, codicils etc. What is surprising for the foreigner
is the apparent contradiction between all the existing norms and procedures and the fact that
Italians don’t always comply with them. But in a bureaucratic country one learns very soon which
the important ones are and which are not, in order to survive the red tape. In work terms high
Uncertainty Avoidance results in large amounts of detailed planning.
In Italy the combination of high Masculinity and high Uncertainty Avoidance makes life very
difficult and stressful. To release some of the tension that is built up during the day Italians need
to have good and relaxing moments in their everyday life, enjoying a long meal or frequent coffee
breaks. Due to their high score in this dimension Italians are very passionate people: emotions are
so powerfully that individuals cannot keep them inside and must express them to others,
especially with the use of body language.
Italy:
1.
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Historical Development:
Latin/Italic tribes 2000 B.C.
Etruscan then arrived 1200 B.C.
Greek civilization 600 B.C., much of Greek culture adopted by Romans.
With 300 miles of Coastline, Italy was a logical prey for invaders as France, Austria, Spain
and Germany.
 That made Italy a country of diverse city states.
2. National Business Environment:
A. People:
 Majority are raised as Roman catholic, but there is no official religion.
 Italians appreciate more refined aspects of life, they cultivated awareness
of art, science, history, literature, music, fine wine, beautiful clothes and
fine meals.
 They will respect a well-educated, civilized business person with
accomplishments beyond just the work place.
 In negotiation strategies, subjective feelings are more important than
objective facts.
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Italian people prefer to deal with someone they know, it’s important to
engage a strong representative who make appropriate introduction and
appointments for you.
 Most firms close in august, don’t plan business appointments in this period,
plan business appointments 10:11 am or after 3 pm.
 Italians like to get engaged in small talks before getting down to business.
 Not appropriate to talk about religion, politics or World War II.
 Language: Italian is the official language. English is spoken by many
businesspeople.
 Dressing:
 In business world, good clothes are badges of Success. Women dress in
quite expensive elegance.
 Italy is a major center of European fashion; even casual clothes are smart
and chic.
 Italians appreciate refined clothes and will take care of your garments but
clothes are only part of your image, Italians value a Bella Figura including
the scent, clothes, technical knowledge and reputation in the field.
B. Government:
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In 1870, became a unified monarchy.
Final monarch abdicated in 1946.
Early 1990, corruption scandals, tainted most major political parties, resulting
in 1994, Election reform candidates led by Prime Minister Silvio Berlusconi.
 In October 2022, President Mattarella, appointed Georgia meloni as first Italy
Female Prime Minister, after resignation of Mario Draghi amidst a government
Crisis and a general election.
 Italian economy remains burdened by political interference, bureaucracy,
corruption, high levels of taxation, a rigid labor market, an ineffective judicial
system, a complex regulatory framework and the high cost of conducting
business.
 If you’re a foreign resident working in Italy, you’re only taxed on the income
earned in Italy. However, if you’re an Italian resident, spend more than 183
days a year in Italy, and your “center of economic interest” (i.e. your business
and investments) is in Italy, your worldwide income is subject to IRPEF.
 The following income is considered to be produced within Italy:
 Income from employment and self-employment derived from services
performed in Italy
 Income from capital paid by the state or an establishment in Italy
 Business income from a permanent establishment in Italy
 Pensions paid by the state or by an Italian company
 Income from patents, trademarks, and know-how if paid by the state or by
Italian residents.
C. Geography:
 Area: 116 squared mi.
 Population: 59 M
 Capital: Rome.
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Italy is a Peninsula bordered by France northwest, Switzerland to north,
Slovenia to northeast, Adriatic Sea to the east, The Ionian Sea to the south
and the Tyrrhenian Sea to the west. The famous boot shape then juts into
the Mediterranean Sea.
Geographical structure produced distinct regions, each has its own dialect,
politics, and culture. These regions frequently warred with one another
which made family stays a central focus and the motto ‘family first’ reflected
need to preserve and protect not only relatives but also regional cultures.
Italy’s largest cities are centers of both economic and cultural activities. The
capital, Rome, has been a metropolis through millennia. In addition to
containing the Vatican City, Rome serves as the center for government and
professional services and is an important cultural center. Both Florence in
north-central Italy and Venice on the northern end of the Adriatic Sea serve
as important centers of culture and history, in addition to supporting diverse
economic activities. Turin, in the north, serves as an important center of
manufacturing, and Milan, its neighbor to the east, is a center for
transportation and business, notably the business of high fashion. Naples
serves as the surrogate capital for southern Italy, while the islands of Sicily
and Sardinia have concentrated metropolitan areas in Palermo and Cagliari,
respectively.
ITALY
Globally, Revenue in the Fashion segment is projected to reach US$22.56bn in 2023. Revenue is expected
to show an annual growth rate (CAGR 2023-2027) of 15.92%, resulting in a projected market volume of
US$40.73bn by 2027.
Today, Milan and Rome are Italy's fashion capitals, and are major international centers for fashion
design, competing with other cities such as Tokyo, Los Angeles, London, Paris and New York.
Italy is the second largest manufacturing country in Europe and particularly strong in the
manufacture of machinery, fashion items, food products, automotive parts, and
pharmaceuticals.
With a well-developed transportation system and duty-free access to the 50+ million consumers in the
European Economic Area spread across 30+ national markets, Italy provides an unmatched position as a
strategic gateway to the European Union, Northern Africa, and the Middle East.
Market Size:
When compared to 2020, fashion sales in Italy increased by 22.6% in 2021.
GDP
Italy's economy is a very advanced social market economy.
Its national economy ranks third in the European Union, tenth globally by nominal GDP, and twelve in
terms of GDP (PPP).
Italy is a founding member of the European Union, Eurozone, OECD, G7, and G20.
With $611 billion in exports in 2021, it is the eighth-largest exporter in the world.
The gross domestic product (GDP) is a measurement of the output and national income of an economy.
The sum of all costs for all finished goods and services produced domestically during a predetermined
period of time is the gross domestic product, or GDP.
The Gross Domestic Product (GDP) in Italy was worth 2101.275 billion US dollars in 2021, according to
official data from the World Bank. The GDP value of Italy represents 0.94 percent of the world economy.
Infrastructure
Energy and natural resources:
In 2010, Italy used roughly 185 Mtoe of primary energy.
Fossil fuels were the main source of this.
Petroleum, which is mostly utilized in the transportation industry, natural gas, coal, and renewable energy
sources are among the most widely used resources.
More than half of the final electric energy produced comes from natural gas, which is the primary source
of electricity.
Hydroelectric power is another significant source. Eni, one of the seven "Supermajor" oil corporations in
the world and one of the biggest industrial conglomerates, with operations in 79 countries.
In the last decade, Italy has become one of the world's largest producers of renewable energy, ranking as
the second largest producer in the European Union and the ninth in the world. Wind power,
hydroelectricity, Solar energy and geothermal power are also important sources of electricity in the
country.
Transportation
There are 42 major airports in Italy, and up until the middle of the 1970s, the country's seaports handled a
sizable portion of the country's cargo.
However, their traffic has somewhat decreased as a result of the development of substitute modes of
transportation and competition from adjacent ports
The system is continually being updated and enhanced because the majority of goods in Italy are
transported by road.
In particular, the northern regions benefit from its well-constructed and effective network of connecting
motorways and smaller roads.
The nation's rail network is likewise very advanced and covers a 19,394-kilometer distance (12,051 miles).
Compared to the rest of Europe, Italian passenger trains are often punctual, cosy, and affordable.
Technology
Since the Roman and Renaissance eras, science and technology have been present in Italy.
Italy has developed its scientific community over the ages, leading to numerous important inventions and
discoveries in the fields of biology, physics, chemistry, mathematics, astronomy, and other sciences.
Italy is trailing other European nations in the patenting of green innovations, according to a recent
assessment on the country's energy system from the National Agency for New Technologies, Energy and
Sustainable Economic Development (ENEA).
Italy is ranked 41 out of the world's most technologically advanced nations in the Global Finance 2022
Ranking.
Media
There are several online, print, and broadcast mass media outlets in Italy, including radio, television,
newspapers, and magazines.
According to studies, the majority of Italians are still quite active on the three social media platforms that
are most widely used worldwide: Facebook, Instagram, and YouTube.
Italy has 421 TV stations at the end of 2021. In the first half of 2022, Rai, Italy's main public broadcaster,
had the greatest prime-time audience share in the country, with a 37.4 percent rating.
The constitution protects press freedom and the media environment is largely free.
Competitive environment
Europe is one of the more significant importers of Leather Bags in the world. In 2021, the value of leather
bag imports to Europe accounted for €3.5 billion, up from €3.0 billion in 2016. This corresponded to
roughly 37 million units of Leather Bags clothing in 2021 (down from 47 million in 2016). Between 2016
and 2021, the value of the European Union’s Leather Bags imports grew by an average of 3.2% annually.
Europe's second-largest importer of leather bags is Italy.
Its imports of Leather Bags were worth €851 million in 2021 (up from €619 million in 2016).
This was about equivalent to 5.7 million bags were produced.
The value of Italy's imports of leather bags increased at an average pace of 6.6% per year between 2016
and 2021, while the volume of imports decreased at a rate of 4.0% each year.
The value of imports from emerging nations increased by an average of 1.1% annually during the same
time period.
12.6% of Italy's imports of this particular product category are currently made up of leather bags from
developing nations.
Gucci, Armani, Furla, Prada, Fendi, and Bottega Veneta are some of the most popular leather bag
manufacturers.
The main competitors in Italy:
1-Prada
Today, Prada has more than 635 stores globally, starting with the oldest and arguably most well-known
fashion house in the world, which is located in Italy.
However, only 12 of those are in Italy, and they all carry Prada purses.
The great majority of Prada handbags are created in a classic, timeless design that is basic yet attractive.
The triangular shape of the emblem serves as inspiration for trendier fashions.
2-Fendi
Adele Casagrande and Eduardo Fendi, a married couple, started Fendi.
Rome, where the company's current headquarters are still located, was the location of the first store.
For its leather goods, Fendi is renowned as well.
Their most well-known product design is the Fendi Baguette, a short and long leather purse formed like a you got it - baguette.
3-Valentino
In Rome, Valentino Garavani established his own fashion brand, which eventually made its international
premiere in Florence, Italy's then-capital of fashion.
In Italy alone, there are 14 Valentino stores, and there are more locations worldwide.
Typically, simple in design, some leather handbags feature geometric lines and patterns as ornamentation.
Valentino's more daring handbag designs frequently feature studs.
The majority of handbags include the recognizable V inside a rectangle logo.
4-Furla
Since its founding in 1927, the luxury company Furla has been exclusively Italian.
The company is committed to producing high-end accessories that appeal to a wide range of customers,
including both men and women.
Furla is a symbol of excellence, originality, and a positive but assured personality.
Mode of entry
The best entry mode for Okhtein to penetrate This mode of entry can be a good option for
okhtein because it allows the company to expand rapidly and with relatively low risk. Additionally,
it can provide access to the local partner's knowledge of the market, distribution channels, and
customers.
the Italian market would likely be through a joint venture. This would allow the company to gain
access to established distribution networks and knowledge of the local market.
A joint venture is a partnership between two or more companies to share the risks and rewards
of a business venture. This mode of entry would allow okhtein to enter the Italian market quickly
and with minimal risk. It also allows for the leverage of the local partner's knowledge of the
market, distribution channels and relationships, and it can provide access to new customers and
new market segments.
Our joint venture partner will be Tod's Group. Tod's Group is an Italian luxury goods company
that is specializes in shoes, leather goods, handbags. The Company has a strong presence in the
Italian market and wide distribution market. It has a good reputation for high quality
craftsmanship and luxury products which aligns with Okthein brand image Tod's Group has high
brand reputation in the fashion industry and wide distribution network Distribution channels
(retail stores, wholesalers, E-commerce)
The target market for Okhtein in Italy would likely be high-end consumers with a taste for luxury
products, and the target audience would likely be fashion-conscious individuals, particularly those
in urban areas such as Milan and Rome. The company should also focus on building relationships
with key influencers and opinion leaders in the fashion industry to help raise brand awareness
and drive sales.
Target market:
The target audience for the brand would likely include:
High-income individuals such as business professionals and entrepreneurs Fashion-conscious consumers who are interested in luxury brands and are willing to pay a
premium for high quality products.
Younger consumers who are interested in trendy and stylish products.
Women who are looking for luxury handbags that can be used for formal and casual occasions.
Mainly women, Age: from 20 to 50 years old with higher level of education high social class
(category A) that enjoy to be active in social circles
Age: The target audience is likely to be primarily composed of adults aged 25-45. This age group
typically has a high disposable income and are in the prime of their careers. Additionally, this
group is often more fashion-conscious than older age groups, and more likely to invest in luxury
goods.
Salary: The target audience for Okhtein brand handbags in Italy would likely have a high
disposable income. They are likely to be business professionals, entrepreneurs, or high net worth
individuals who can afford to spend a premium for luxury handbags.
Occupation: The target audience would likely be composed of individuals who hold white-collar
jobs, such as business professionals, entrepreneurs, managers and executives, as well as
individuals in creative fields like fashion, design and art.
Education: The target audience would likely have a higher level of education, with many having
completed college or graduate-level degrees.
Lifestyle: They are likely to be active in social circles, enjoy traveling and attending cultural events,
and have an appreciation for quality craftsmanship and design.
Gender: The target audience would likely be primarily composed of women, as they are the
primary consumers of luxury handbags.
Objectives of Marketing Strategy:
The main objectives of any business are to maximize profits and maintain stability in the market and
marketing strategy helps in achieving them. The need for marketing strategies are below:
Maximization of sales: Any business aims for increase in sales of their products. Preparing a marketing
strategy helps in promoting the product and make it reach customers.
Brand promotion: Alongside increase in sales and profit, it is important for the business to create a brand
in future to grow and sustain the competition in the market.
Size of market share: Marketing strategies help in creating the market size for the product and attracting
shareholders and stake holders.
Profit maximization: Profit maximization is the primary aim of any business, and profits can be earned
through more and more sales. Planning a marketing strategy helps in increasing the sales and gaining large
profits.
Marketing strategies used:
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Advertisements: One of the basic and traditional methods of marketing is advertisements.
Putting up an ad in newspapers, pamphlets, TV, social media by displaying the images and
features to promote a product.
Digital marketing: Digital marketing is the new and growing form of marketing. Digital
marketing is where internet, computer, other digital platforms are used in promoting
products. This type of marketing promotes a product in many places and reaches people at a
time and within a short duration. It is also cost effective than traditional ways of marketing.
Strategic marketing: Strategic marketing is an effective way of marketing where, the
knowledge of customer buying patterns are required for promotion of products/ideas. This
type of marketing distinguishes from others in the competition by focusing on providing
better products.
Overview of Pricing Strategy
Companies use pricing strategies to maximize profits. Maximizing profits using the pricing
strategies is certain through the price elasticity of demand. Pricing strategies are affected by few
internal and external factors. Internal factors affecting pricing strategy are target market, revenue
goals, brand positioning, and market objectives. Some of the external factors are competitor’s
pricing strategy, customer demand, and market trends. Pricing strategies are set by initially
calculating the cost invested in the products. The customer’s response to the pricing model is
collected from the questionnaires, surveys. This response is analyzed and compared with the
competitor’s pricing strategy and finally evaluated if any possibility of legal or ethical troubles
arising.
Prestige pricing:
Prestige pricing involves setting prices at a high level, with no discounting. By doing so, the seller is
conveying the impression of high quality. Prestige pricing only works when the product is actually of
high quality and is supported by adequate branding expenditures. This is a niche selling strategy,
since it is only targeted at those who value high quality and can afford to pay for it. Close attention
to branding is essential, so that consumers will pay extra in order to be associated with the
company’s brand.
A business typically needs to start out with the prestige pricing strategy, rather than switching to it
later on, in order to avoid having to surmount the stigma of its earlier strategy. Examples of markets
in which prestige pricing is used are watches, perfumes, and luxury automobiles.
Place & Distribution:
Okhtein is known for its creative craftsmanship and design that is related to the Egyptian historic and
traditional style. Which is why we will remain manufacturing in Egypt with our craftsmen and stores to
ensure the same quality and spread our country’s talent even further.
Our initial plan for the international expansion of our brand is to follow the licensing model, where
we will provide a store in Italy to showcase our products on our behalf and be Okhtein’s official
representatives.
We will enter into a licensing agreement because we aim to expand our brand, internationally, while
maintaining our high standards and brand image. Thus, this is why we will not merely export our purses,
because although exportation reduces cost, it also reduces involvement, meaning the exporter will
have full control as to where our purses will be displayed and sold which can potentially harm our
reputation and brand image. Although licensing also limits our involvement to a big extent, we will have
relatively more control in terms of operation and ownership. Furthermore, by following a licensing
agreement, we will be able to create a presence in Italy with minimized costs which will be beneficial for us
because based on the amount of sales we receive there, this will indicate whether or not we should take
the next step in our expansion. Based on the records we receive, we will either stay as is with our licensing
agreement if the sales are not aligned with our target. If we do, though, we can climb higher up the ladder
and potentially enter into a franchising agreement, followed by a strategic alliance and, if all goes
well, a joint venture. Therefore, we shall follow the plan of Okhtein’s expansion through department
stores in different countries, followed by a standalone store depending on the results. In addition, we shall
keep in mind, based on our first experience of expansion in Kuwait, that we might expand even further in
Dubai and other countries.
For now, Okhtein will be listening into a high-end store such as CIAO FLORENCE in Italy. this would be
safer as awareness of the brand in Italy is still not at its peak. Furthermore, in the next upcoming years,
after the awareness and consumer readiness increases, we shall plan into doing an agreement and
opening a franchise for Okhtein separately. Therefore, the bags will be exported into Italy from Egypt
directly. The shipping will be through DHL to maintain high quality of products. It will then be sold to the
licensed store that we will agree to. Of course, Okhtein will remain using its website for international and
national online shopping.
Promotion Strategy:
Okhtein gained its consumers so far through its collaborations with celebrities in red carpets and
magazine covers. This plan shall happen again within Italy. Meaning that Okhtein should collaborate
with magazines from Italy and Italian well-known celebrities. For instance, focusing on Italian bloggers
and fashionista’s will be very effective. such as Chiara Ferragni
With over 22M followers, Chiara is Italy’s best-known and most followed influencer. She never stops
conquering Italian and global crowds. She was one of the first to create a blog in 2009, and has gained
experience and popularity to this day. She has collaborated with some of the biggest brands and is
now the head of a world-renowned store, The Blonde Salad. On her Instagram feed she shares photos
of her daily life, her little family, her big projects and her magazine appearances. Italian’s usage on
social media is extremely high and active, especially on Instagram and snapchat. Therefore, Okhtein
should also increase its Instagram reach and activity in order to increase their audience. Further
promotions such as billboards and digital campaigns shall also be done. Using collaborations in Vogue
Italia will increase sales of Okhtein in all its department stores abroad. Furthermore, collaborations
with well-known brands in Italy will also increase brand awareness, this may include collaborations
with high end fashion brands such as Gucci and Versace. Photoshoots in collaborations with wellknown brands in Italy will definitely help increase awareness.
Okhtein SWOT analysis (ITALY):
Strength:
1.good industrial growth in the country: Italian industries concentrated in northern part of the country
(Milan – Venice- Turin)
2.italy is the 6th largest export market in European union and the largest exporter in luxury goods
(fashion and clothing)
3.italy is a touristic destination: it’s a chance for the brand to be more famous and known for different
nationalities and increase sales by opening new stores in a famous place
4.strong brand name and a worldwide online store
5.okhtein is a handmade luxury product as the Italian brands
6.designs affected by the Egyptian culture which make them unique
Weakness:
1.limited product pieces
2.most of designs are small sized bags don’t fit all ages with different styles.
3.social media reviews about product shortage on the website
Opportunity:
1.strong purchasing power as GDP of Italy 2022 (Real GDP growth is projected at 3.7% in 2022, slowing
to 0.2% in 2023.)
2.obsession with fashion trends
3.affordable prices than competitors in Italian market
4.worldwide trust of Egyptian products
Threats:
1.new entrants in Italian market
2.variety of brands and competitors
3.rapid change in fashion trends
PESTEL analysis Italy:
Political: Italy is a founding member in NATO also the European union and top member of top
institutions, it maintains good foreign relations with many countries, However. There is a political
instability and tension between governing partners.
Economical: Italian industry has a diversified industrial economy
The annual inflation rate in Italy was at 11.8 percent in November of 2022
Italy Unemployment Rate dropped to 7.82% in Nov 2022, while in oct 2022 was 7.87%. Italy
Unemployment Rate is updated monthly
GDP=3.7%
Social: Italy population 60M
There are 29.41 million males and 30.96 million females in Italy. The percentage of female population is
51.28% compare to 48.72% male population. Italy has 1.54 million more females than male and people
ages range from 25:54, Italian society is based on a strong culture, family is the center of social structure
Technological: technology play an important role on business and has powerful effect and impact on it,
business nowadays business focuses on keeping up with technology and its rapid movement and
evolution to achieve max efficiency and to upgrade services.
Environmental: Italy have an amazing atmosphere, landscapes, touristic places, agriculture plays an
important role in Italian economy, issues currently facing Italy include air pollution from energy and
heating, transportation and industrial sources
Legal: factors are involved in legal matters such as equal opportunity, safety of the product, consumer
rights, employment Hrs./week, over 40 hours the overtime is double wage of daily working hours,
female employees paid for maternity leave.
Recommendations:
1.Increase brand awareness.
2.increase social media presence.
3.design a new bags with different sizes and new products (belts, sunglasses).
4.face the problem of shortage of the products.
5.new line products (man collection)
6.Increase digital branding.
7. New design to broad target women to 50s-60s.
8. Presence and branding in A class events i.e. Tennis and golf tournaments
9. Sponsoring celebrities in different targeted markets.
10. More public relations events.
Talk shows. Etc