Ariika Bean Bags: A Successful Brand Capable of International Expansion?

Ariika Bean Bags: A Successful Brand Capable of International Expansion?

Rania Hussein (The American University in Cairo, Egypt) and Hend Mostafa (The American University in Cairo, Egypt)
DOI: 10.4018/978-1-4666-7393-9.ch012

Abstract

This case deals with Ariika, which produces a large variety of bean bags that have innovative designs. The company focuses on quality and aims at becoming the first branded bean bag in Egypt with high quality and reasonable prices. Over the years, Ariika was able to build a strong customer base, sell its products online, and maintain strong relationships with large retailers. The success of Ariika in the Egyptian market encouraged Attallah, the owner, to consider his next move. The key problems discussed in the case are, Should the company capitalize on possible opportunities by immediately expanding beyond Egypt? If they decide to expand abroad, how should the company strategically expand: in the two countries at the same time, sequentially one at a time, or only in one of them? Should they rely on simple exports or consider foreign direct investment?
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Ariika's Marketing Mix

Marketing Mix is a particular combination of the product, its price, the methods used to promote it and the ways used to make the product available to the customer. Based upon its understanding of customers, a company develops its marketing mix of product, price, place and promotion. The elements of the marketing mix are interrelated. All the elements have to reinforce each other to enhance the experience of the customer. When a change is proposed to be made in one of the elements, it has to be checked if the changed element still fits with and reinforces other elements in order to ensure the effectiveness of the marketing mix. A company’s marketing mix must satisfy customer needs better than the competition. A company implements its strategy through its marketing mix.

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