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Marketing Strategy c.s sasko by sheena indhul
 

Marketing Strategy c.s sasko by sheena indhul

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This Marketing Strategy was based on a Sasko Case Study. The strategy contains fundamentals in applied marketing strategy. Looking at the situational analysis (macro,market,micro ...

This Marketing Strategy was based on a Sasko Case Study. The strategy contains fundamentals in applied marketing strategy. Looking at the situational analysis (macro,market,micro enviroment),SWOT,KSF,ojectives,future strategy,action plan,budget and controls. You find very little information on social media communications as the plan starts in 2002 and ends in 2006. I had slipped in a sample on the social media section but this is a draft concept for a reason as many apps such as facebook were developed later. There is also a timeline and a sample watermark across, this was to show situational analysis in presentation form.

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  • Hi EJRule, This was an assessment task done in 2011 based on a case study written some time ago. The objective of the study was to create a fictitious IMC strategy (in other words our vision of where what how and when of the product). So to answer your question no this was not the case in 2002. Hope this helps.
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  • Hi Sheena,

    I've just had a read through of the above case study. I see that you refer to the White Star product range, as consisting of SMM, MM, instant porridge, vita shake and all-in-one breakfast. Was this really the case in 2002/prior to 2002? What happened to the product line (since now it only consists of WS and WSQ)?
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    Marketing Strategy c.s sasko by sheena indhul Marketing Strategy c.s sasko by sheena indhul Document Transcript

    • Sasko MillingINTEGRATED MARKETING PLAN& STRATEGY 2 00 2- 2 0 0 6 1|PageSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • EXECUTIVE SUMMARYPioneer Foods dates back to 1920. De Boeren Ko-Operatieve Molen MaatschappijBeperkt"-BOKOMO, was a co-operative milling business in the 1920’s, which wasassociated with the development of Die Suid-Afrikaanse Ko-operatieweGraanmaatskappy Beperk – SASKO.Sasko is in a highly competitive industry. The company’s main focuses are grains,maize and flour. Since 1997 Sasko Baking and Milling has prided itself as being astrong contender in the primary market for wheat products and in 1998 were theleaders in the special maize meal category.Vertical Growth has proven favourable to some extent; in such a competing industrythey have experienced both losses and success. The most important requirement inthis industry is to respond to demands. Sasko has taken a leap of faith, in launchinga new super maize meal. White Star was launched in 1999 as a top-end super maizemeal, competing with the premium maize meal brands in South Africa. Positioned asthe first fortified maize meal (with added Vitamin A), the brand quickly took to the skyand showed an incredible growth rate.In 2002 White Star, will become the most successful brand within its category. Whitestar has become a way of life for the people of South Africa. To grow market share ina competitive industry white star needs to extend their brand portfolio. Differentiatingit from the many competitors that exist in the market. New markets have opened up,such as the Black Diamonds, who are now fast becoming active participants in theeconomic sector of South Africa. Added to this is the threat of the consistent flux ofthe economy and government legislation regarding biodiesel. White star must growits market share by extending its portfolio into new segments, offering the segmentsadded value, while ensuring that the product remains of a high quality 2|PageSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • T A B L E O F C O N T E N TExecutive Summary 2Part I: Situational Analysis Macro environment Political/ Legal situation 5 Economic situation 5 Socio-Cultural /Demographic situation 6 Technological situation 7 Enviroment situation 7 International Situation 7 Market Enviroment Market Industry 8 Primary Industry 8 Secondary Industry 8 Tertiary Industry 9 Competitors 9 Customers 10 Suppliers 10 Intermediaries 10 Middleman/Retailer 10 Micro-Enviroment Target Market 11 Positioning 11 Product/s 11 Price 12 Place 12 Promotion 12 3|PageSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Part 2: Swot Analysis 15Part 3: Key Issues 16Part 4: Assumptions 16Part 5: Marketing Objectives 16Part 6: Marketing Strategy Target Market 17 Positioning 18 Product Strategy 19 Price Strategy 21 Place Strategy 21 Promotion Strategy 22Part 7: Action Plan 24Part 8: Budget 25Part 9: Controls 26Part 10: Annexure A Tables 27 Table 1.1: White and yellow maize: Geographical distribution of production 28 Table 1.2: Total maize area harvested, production, consumption and prices 28 Table 1.3: Market share of white maize millers 28 Table 1.4: Extraction rate of various maize meal types 29 Table 1.5 Price Structure From farm gate to retailer 29 Table 1.6: Basic White Star Marcom Strategy 30Part 11: Annexure B Tables Figure 1.1: Gross value for the top ten agricultural products for 2002/03 32 Figure 1.2: White maize the super maize meal retail price 32 Figure 1.3: Positioning Map Comparing Consumer Preference 33 Figure 1.4 The Value Chain 34 Figure 1.5 Porters 5 forces 35Part 12: Annexure C Campaign concept-Illustration 37Part 12: References 39 4|PageSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • MACRO ENVIROMENTPolitical/Legal SituationIn 1997 the Maize Industry deregulated in South Africa, report by Food Price MonitoringCommittee, (2003) and Traub and Jayne, (2004) showed that the maize milling/retailmargins in the formal market have been rising in recent years after maize marketderegulation. Deregulation in the agricultural sector caused shifts in the geographic patternsof white and yellow maize production. (Table 1.1: White and yellow maize: Geographical distribution ofproduction) Source: Crop Estimates Committee, 2003Legislation was introduced in 1979 to the effect that all maize meal be Vitamin B enriched.Further studies by the Department of health in 1995/1996 illustrated that one in threechildren suffer from a lack of Vitamin A. It is now statutory to add both Vitamins.Economic SituationBefore 1995, South Africa had a controlled marketing system which restricted informal andunlicensed traders and millers. Since the implementation of the deregulation policy the priceof maize increased gradually up to 1999/2000.Since 1997, product prices have been determined under a free market condition and areformally traded on SAFEX. One of the main flaws of liberation is that consumers willexperience price peaks. The flux in R/ton from 1997 to 2000 was a difference of R70.00/tonfrom the real white maize producers. (Abstract of Agricultural Statistics, SAFEX) Taking into account theinflation of maize was also due to other producer variables. (Table 1.2: Total maize area harvested,production, consumption and prices.)South African maize milling industry will remain characterised by few role players and everincreasing margins. This would impact significantly on low-income consumers who spend upto 20% of their monthly income on maize meal (Watkinson and Makgetla, 2002).In 2002 the cost of maize crops and raw materials increased by at least 100%. Maize wasthe largest contributor to the GDP. Food prices rapidly increased, for the first time in history1kg of maize was more expensive than the same quantity of flour. This sharp increase inthe producer prices was mainly caused by a strong depreciation in the exchange rate,caused by erroneous market signals of possible maize crop failure. White maize producerprices increased from 2001, R671.50/ton to 2002 R1158.20/ton. (Abstract of Agricultural Statistics,SAFEX) This is evident in Table 1.2. 5|PageSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • South Africa’s lower lifestyle standard measurement (LSM) was affected. The totalpercentage of South Africans that always have enough to consume was recorded at 58%(Source: Future Fact 2000) of which majority were the higher income groups LSM 6-8.Socio-Cultural/Demographic SituationSouth Africa is rich in its cross-cultural assimilations that capture some of the positive andexciting features of the social, cultural, and ethnic diversity.The minimal dietary requirement for the black South African is maize meal. The diversemaize meal market is attributable to the changing socio-cultural influences that differregionally in addition to the economic situation.Super maize consumer values are changing and demand high quality maize that is high inenergy, cooks faster, softer and enriched with vitamins when compared to the unsiftedmaize. Super maize meal is preferred by urban and peri-urban females aged between 18-35,LSM 3,4,5 who make their own purchase decisions, keeping in mind the welfare of theirfamily. Social and financial pressure impacts when commodity prices like maize mealincreases, affecting the ability to sustain status quo.The changing roles of families and working women within the middle class Black SouthAfrican is having a positive impact on their society since. Busy working class women are stillpressured to produce a meal after work, literally poverty stricken of time. Super maize mealattributes complete these variables by cooking faster quicker and still serves the same tasteand enriched vitamins and energy for a family.The changes in socio-cultural trends in the South African market have been influenced bymany variables. Urbanization started in 1940’s and increased rapidly into the early 1970’s.Post-apartheid reform increased the countries middle class by 30% between 2001 and 2004.The transition phase in healthy diets started gradually as it impacted on the black SouthAfrican core values and beliefs. In the Black African culture one is expected to be larger thantheir standard body frame. This is a cultural value that was passed down from generationand reinforced by others who adhered to the core beliefs and value system. Theunderstanding was should a black African female appear slim she was considered a shameto the family as she had been perceived to have the white man’s disease that is HIV/AIDS.(Sociocultural Influences and Eating Disorders Around the Globe By Mary K. Stein, Managing Editor: Extract: Dr. ChristopherP. Szabo) 6|PageSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • The impact of AIDS today on the demographic population will have an impact on theconsumption of maize meal, in South Africa. Source: National Agricultural Marketing Council (Namc)Maslow’s Hierarchy of needs illustrates the shifts that are in action from basic needs topsychological needs this is the influence of the western world and as a result we get theevolving Black Diamonds. Eating habits have been curbed and diets, changing. The shift instaple grain crops to a more diverse diet of eggs and meat indicated the influential impact ofthe western culture health trends on generation y in 2005. The need for self-fulfilment willbecome a priority for generation M. The growing social trend leaped from material to non-material accomplishments. Having control over their lives and making decisions. Self-conscious, new social interaction with other cultures allows for secondary thoughts this newmiddle class society will shape the tastes and preferences. Free thinking, western cultureand women empowerment are some factors that shape our country.TechnologicalThe industry shifted from labour intensive to capital intensive, highly mechanised andautomated production units resulting in a more refined, softer super white maize.Newly imported technology has made it possible to extract more super maize meal from asingle kernel without compromising on quality and reducing black spec.Other forms of scientific technology that have captured many is the genetic mutation ofmaize. (Table 1.3: Market share of white maize millers) Source: Competition Commission, unpublished informationEnviromentNegative impacts on maize crop failure in regions can cause major effects across the boardas indicated in 2002/2003 flawed market signals of a possible crop failure.The climatic advantage of maize meal is its ability to adapt in any climate. In recent years thestudy of maize has led to assist in the bio diversity of emerging trends such as biodiesel. Thefemale maize flower is used as an alternative medicine in herbal supplements. The chemicalcomposition of maize starch allows us to make plastic, fabrics, adhesives and many otherchemical based products. Direct plant protection precautions for maize are, essentially,aimed at weed control.InternationalAs maize is an internationally traded commodity, it is also subjected to the internationalmarket conditions. The demand and supply conditions of maize in the international marketinfluence domestic prices directly. 7|PageSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Market IndustryMaize is the most important grain crop in South Africa, being both the major feedgrain and the staple food for the majority of the South African population. In 2002/03 maizewas responsible for the largest contribution of 13.78% to the total gross value of theagricultural production with a gross value of R9.5 billion. (Figure 1.1: Gross value for the top tenagricultural products for 2002/03)The South African maize industry is also the largest maize industry in Africa and ranked inthe top 10 maize producers in the world. The major production areas in 2002 were situatedin the Free State, North- West and Mpumalanga Provinces.The average local consumption requirements are estimated at 7.4 million tonnes. This canbe split up into 4.2 million tonnes of white maize and 3.2 million tonnes of yellow maize.White maize is the staple food of a large section of the African population in Africa and thisaccount for 94% of white maize meal consumption.In 2000/2002 more than 40% of all the maize meal sold in the SA market is super maizemeal and this percentage is increasing. Special maize meal sales make up 30% of totalsales.Primary IndustryThe geographical distribution of white maize increased in the Northern Cape. In this areamainly irrigation farmers have opted to plant white maize as a response to the high prices.There is a variety of maize meal types within the maize meal category. The maize mealmarket varies distinctly from one region to the next. To succeed in the staple foods categoryit is necessary to hold a 20% share of that market. Source: Sasko White Star, Case Study.According to the Grain Silo Industry (2002), the total grain silo storage capacity in SouthAfrica is estimated at 17.5 million tonnes, 85% of which is owned by 22 silo owners. Most ofthis storage capacity is also located in the provinces in the northern parts of the country.Secondary IndustryAccording to the National Association of Maize Millers, the top 4 companies inthis group of 22 millers produce the majority (73%) of the market share of white maize meal..(Table 1.3: Market share of white maize millers) Source: Competition Commission, unpublished information:Analysis of selected food value chains. The secondary industry converts maize to either maize-mealfor human consumption, for animal feed or for maize starch. 8|PageSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Although an extraction rate of 62.5% is reported for super maize meal, some industryspecialists regard this figure as “conservative”. The best-selling super maize meal brands,IWISA and ACE, only have a 55% extraction rate. (Table 1.4: Extraction rate of various maize meal types)Source: Chamber of millingThe effect of the expensive maize bought during the first part of 2002 impacted on theindustry towards the middle of 2002, as the spread between retailer and miller becamenegative. Millers could not increase retail prices any further they had high costs for rawmaterial. This meant large losses in the maize milling industry. Volume of maize milleddeclined rapidly as consumers responded negatively to the high maize meal prices. Figure 1.2:The white maize spot price, the super maize meal retail price and the miller to-retail margin. Source: SAFEX, AC Nielsen,Tertiary SectorThe tertiary sector consists of traders, retailers and transporters. Traders move the produceto the domestic or export market. There are three types of traders in the maize industry,hedgers, arbitrageurs and speculators The retail sector provides infrastructure and servicesfor the distribution of maize products from the miller to the final consumer. Transport helps tomove the maize from the farmers to the silo owner, from the silo owner to the miller and fromthe intermediaries to the final consumers.CompetitorThe maize meal market is increasingly competitive. The best-selling super maize mealproducts are Iwisa and Ace. Premier foods and tiger milling were the leaders in the whitemaize meal market with an extraction rate of 55%-62,5%, before Sasko entered thecompetitive super maize market.The competitive advantage Sasko had was the additional Vitamin A enriched white maizemeal. Sasko customer centric approach had also led them to understand the importance ofthe black specs per kilogram and vitamin enriched maize meal. The white star slogan “theclever choice” played a significant role against their competitors. White Star is entering acommodity market, making the job of differentiating the white star from its competitor brandsdifficult.In 1998 Pioneer (Sasko) were leaders in the special maize meal category with 4 of theirbrands holding a substantial portion of the market share. In 1997 Pioneers (Sasko) supermaize meal category had only 2% of the market share. To succeed in the super maize mealcategory Sasko needed to increase their market share by 20% so Sasko launched White 9|PageSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • star in 1999. In 2000, Sasko held more than a 30% total share of the maize meal categoryand within 20months White Star captured 10% of the super maize meal market share. Whitestars regional market share varied between 5% and 70% depending on the region.Consumer/CustomerMaize meal is a staple diet for the price sensitive consumer. Research confirmed that “mamaknows her pap”, consumers have a consistent and uncompromising idea of what they expectfrom a quality maize meal. White star super maize meal needs to meet these standards ofthe quality conscious and brand loyal consumer. The low level of disposable income aremore subjected to change should these attributes not be met.SuppliersPioneer (Sasko) purchased Tongaat mills and Amaize Co. to assist with the increase inproduction. Pioneer mills supplied Sasko with super maize meal. The production process ishighly fragmented as one brand is produced at a number of different plants in differentregions. Sasko relies heavily on other local mills production capacity and the ability to ensureconsistent standard of quality.IntermediariesSales reps in each region compiled a list of 10 -20 key customers to stock the White Starbrand. These retailers were their main focus, rationing the brand to limited stores will yieldbetter results and consumer demand will pull products into the remaining outlets.Middleman/RetailerMaize meal is an FMCG product, using the traditional channels. The distribution costs arehigh. From wholesaler to retailers such as Pick n Pay. 10 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • MICRO-ENVIROMENTTarget MarketPrimary target marketWhite star target markets are urban or peri-urban females between the ages of 18 – 35, whofall under LSM 2, 3, 4.POSITIONINGWhite star competitors Iwisa and Ace held a strong position in the super maize meal market.Brand PositioningIn order to elevate the white star brand they needed to have a clear unique proposition andstyle of communicating through the clutter. White star is positioned as “the clever choice”.This is perceived in the mind of the consumer as “they are making the right choice bypurchasing white star super maize meal”, it matched consumer’s perception of what theyperceive to be high quality super maize meal. The slogan is indirectly used to draw attentionto the fact that White star was the only super maize meal with vitamin a. This was white starsunique brand proposition. At the time white star did not have an icon so the objective was topresent white star brand personality.White star synergetic campaign rouse to fame, the brand personality and unique positioningproposition was pivotal to white stars launch strategy in 1999 reflecting its competitiveadvantage and motivating the consumer.PRODUCTWhite star is a high quality super maize meal. White in colour with a fine ground texture.White star super maize meal is enriched with added vitamins A and B. Super maize mealcooks faster taste better and is softer with minimal black specs. White star is available in1x10g, 1x12, 5kg package. White star is limited in its product range, the brand portfolio onlyconsists of White Star Super Maize Meal, as it was easier to support one brand.Research approach contributed towards the success of the white star brand. The brandname, pack design and advertising campaign were a result of the respondents as they wereconsumers and could identify with the product. The product brand name: white star heldpositive connotations, and the “white” added a quality approval. The “star” resembledperformance and excellence, one that may excel or go far. 11 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Traditional maize meal packaging with a modern design twist was incorporated. Simpledesign elements, that one can communicate with. The graphics illustrated a striking red,shooting star on a white background.PRICEWhite Star super maize meal had to maintain a status quo and was priced marginally belowthe leading brand. White Star super maize meal wanted to be perceived as a premiumpriced product which targets LSM 2,3,4. super maize meal consumers. The lower – middleclass disposable income groups.The more refined the maize meal the higher the price. Maize meal is sub categorised, supermaize meal is the premium product. Maize meal is a price sensitive market and escalatingcosts would be passed onto consumers. The substitutes available are affordable, should aconsumer develop an attachment to White Star out of tradition then sensitivity to pricechanges, would result in more inelastic demand. Price is also a factor when looking at thesupply chain. In 2002 the rapid increase in product was a result of erroneous marketinformation regarding bad crops. However many other factors played equitable role such asbread price fixing.PLACEWhite Star super maize meal follows supply value chain. From farmer to silos to miller towholesaler to retailer. The manufacturing process of super maize meal is highly fragmented.White Star Super Maize Meal can be found in large retailers Pick n Pay, Checkers-Hyper,Spar and Metro store to name a few. Inland region, there are spaza shops and kiosks whichmany are recognized as informal retailer.PROMOTIONThe product life cycle of white star launch strategy consisted of 3 phases. The campaignfocused on the primary target market, women. The message transmitted to women that bypurchasing White star she was making a “clever choice” for the real stars in her life, herfamily. Sasko brand awareness progressed.Growing Awareness (Introductory) phase: Sasko developed an intimate customer centric relationship with their consumers. “Know thy consumer” Sasko conveyed their dedication towards reliability and quality of maize meal to their consumer. 12 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Advertising Primary Medium used to launch the first part of the campaign: Radio, as it had the highest reach and frequency for White Star target market. Kwaito music started to win a growing audience. White star was shooting for the stars with a commercial using a Kwaito jingle.Television The Kwaito jingle commercial used on radio was also developed for televisionMagazine. Print, educated prospective consumers in recognising the packaging of the White Star brand, the disadvantage was the language barrier and illiteracy rate that impaired White Stars superior offering. The use of primary media radio and magazine offered optimal exposure.Inducing Trial (Growth phase): White star brand was priced marginally below the leading brand in the super maize category.Sales Promotion They launched White Star with a special offer, “cow and calf promotion” For limited period of 3 months all consumers were given a free 1kg pack with every 12,5kg bag of white star purchased.Sampling The above the line campaign included In-store promotional activity, capitalising on community events through product demonstrations and sampling within the target market.Out Door Media (OOH) Off premise A White Star trailer shaped like a shuttle broadcasted voice-over messages that supported the extensive advertising campaign as it travelled through high traffic areas.Building Loyalty (maturity phase): White star advertising campaigns continued. In-store promotional activities were consistent. White star newly gained market share held and a new brand found its way onto the shelves of many South African homes. 13 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Personal Selling Sasko had a strong and consistent internal sales force that supported the brand and followed through.Public Relations White star received positive PR exposure at the time of launch: “The first super maize meal with vitamin a.” 14 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • PART 2: SWOT ANALYSIS SWOT ANALYSIS STENGTH WEAKNESSSasko Customer Centric approach indicates good reputationamongst Target market Distribution and sales force is weakShare of market gained from 2% to 10% of super maize meal Ability to sustain market share nationally is poor. 5% - 7%and held a overall 30% share of market in the maize meal imbalance in market share From region to regioncategoryTechnology that was invested into white star exceeds theproduct quality. Narrow product rangeCommitted Employee (Brand file) High cost of maize productionResearch and Development as well as an internal strategic Rely heavily on media communications with no actualdepartment research on the changing socio-trends. Even though White star meets the needs of the TargetWhite star quality of super maize meal market it is still uncertain if they could meet the same needs during the tough times.Competitive advantage of enriching super maize meal withVitamin A High cost of maize productionPriced marginally below the leading brand Cultural stigma attached to maize meal in generalTarget Market awareness of white star was initiated by astrong launch campaign. Lack of creativity in communicationsTarget Market attitude towards white star indicated brandloyalty OPPORTUNITY THREATHealth Trends Ace and Iwisa- brand loyalty is strongMedium term investment in biodiesel-bio ethanol. Competitors hold majority of market shareBrand Extension from 2002 into cereal or flavoured maize Cost escalation impacts the target market- low disposableor healthier “light” maize. incomeIncrease Target Market Generic super maize meal substitutes Substitute maize meal category of cheaper alternative Bread,Export to surrounding SADC countries. rice, oatsDemographic: black diamond’s emerging genertation into Increased regulations.urbanizationAdvancement in Genetics Global Recession causing inflation Bad crop harvest for the season will impact the supply ofUsing technology to expand database super maize meal 15 | P a g e Sheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • PART 3: KEY ISSUES  Growth in existing product market- inc. market share of super maize meal  Extend category & geo-expansion segmentation-Focus on Black diamond  Product Development- Increase product offering by extending product line.  Brand Extension- New products  Market development- expand target market segments  Sales force needs to increase their customer base- Business 2 Business  Market trends are indicating a medium term demand for maizePART 4: ASSUMPTIONSWhite star super maize meal has maintained their market share in a competitive growingmarket. The socio-cultural trends allow space for a larger market share. It is assumed thatthe country’s economy is in a constant state of flux from the end of 2002 to the end of 2006.At some point the exchange rate will cause a decline in R/ton. Possible losses in the future2008 onwards, monitoring global economy will decide on the future sales of Pioneers assets.Research and development need to be an ongoing process. A prediction of verticalintegration in the long term will commence.PART 5: MARKETING OBJECTIVES  Increase market share in the target market from 20% (2002) to 35% by end of 2005.  Achieve 90% awareness on new White Star product range by the end of 2005.  Increase brand awareness amongst new target markets to 90% by end of 2005.  Increase product sales by 30% by the end of 2006  Increase the distribution phase of white star product range to outlets to achieve a penetration of 85% by the end of 2006. 16 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • PART 6: MARKETING STRATEGYTarget MarketThere are two target markets which exist for White Star. There is the B2C – Business toCustomer and B2B – Business to Business. These target markets are the foundation forwhite stars prolonged existence.Business To Consumer White star target market can be further divided up into, rural, urban, peri-urban, children and black diamonds.Geographic White star is distributed nationally to all provinces across South Africa; however its primary target markets are in Free State, North West province and Mpumalanga. White star can be found in the urban areas of South Africa.DemographicsAge: Majority of the consumers are aged between 7 to 55 years.Income: White star Super maize meal targets consumers in LSM 1 to LSM 7: low.Gender: Majority of the shopping are done by females.Ethnic: South Africa is multi-ethnic. Majority of the market are black/AfricaFamily Lifecycle Young single/married, with/without children, widowed/separated.Social Class The emerging affluent, trendsetting, Black Diamonds fall into the middle and upper class. Maize meal is apart of their culture and have the deepest respect to adhere to the elders.Education In the past, Sasko had illiteracy barrier. This strategy must certainly not continue, to overlook these individuals. 17 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Psychographics: The psychographics of the target market can be described as “moving with the times”. Highly driven and ambitious. Energy to succeed personally and professionaly. Determined to show the world they on top of their games in all they do, from career to family, home and social life. Source: Yankelovich MindBase segmentationBehaviour Characteristics Brand loyalty and image conscious customers.Business to BusinessThe sales representative or key account manager markets the white star product range toretailers and wholesalers. This also includes businesses and institutes.Examples of which we must target are: 1. Government Hospitals eg: King Edward 2. Prisons 3. Restaurants eg: Africa 2 Asia 4. Game lodge & Reserves eg: For foreigners and locals 5. Airlines eg: South African Airlines flies in and around the African continent.POSITIONINGPositioning StrategyThe objective is to maintain the current brand positioning at the same time enhancing it witha new tag line that will appeal to both current and new target markets. White star is “theclever choice” has proved, worthy. With the changes in social trends and new emergingmarkets it is imperative that white star appeals to all segments. Tapping into the mind of theconsumer to discover their aspirations and lifestyle in the urban world White star is stillpositioned as ‘the cleaver choice”, with healthier benefits quick and easy meal replacements.White star is indicating progression with the “times” of the new emerging markets.Figure 1.3: Positioning Map Comparing Consumer PreferencesPositioning statementTo be the no 1 health maize meal brand.White star must be the “the clever choice” when it comes to maize meal. 18 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • PRODUCTThe white star brand now contains a variety of products to suit the changing markets. Theproduct ranges all contain the highest quality super maize meal. Adapting to market changeswhite star has found healthier, tastier and versatile ways to make the consumer happy.White star brands, super maize meal range, instant porridge and vita shakes.Product RangeWhite star- super maize mealWhite Star super maize meal products are the clever healthier delicious energy packedsuper maize meal consumers can’t get enough of. It is a convenience product that can beeaten with or without a little tomato relish fish, meat or vegetable, a simple, easy & quickmeal. White star maize meal combines an instant energy hit light, fluffy and smooth, texturewith a moreish melt in the mouth buttery taste delivering a satisfying, reassuringly familiarwhite star experience. White star maize meal is rooted gratification leaving you with a feelingof a full tummy. It is viewed as a tasty, versatile and vitamin enriched meal.White star super maize meal is really “The Clever Choice”The range is easily recognisable with its distinctive white red and green packaging and thenew unique heavy duty poly packaging. White star super maize meal is healthy with yourfavourite side-order, and is available in a variety of pack formats.White Star Maize Meal  White Star super maize meal  White Star super maize meal Braai pap (Course textured)  White Star Maize riceWhite star Instant porridgeWhite star instant porridge provides your children with a smart, start to the day. Deliciouslyflavored, super fine maize with, important 10 vitamins and 2 minerals. Packed with energy.Easy, convenient, clean, no mess and fits in the handbag and lunch boxes– making themperfect to carry around to school or family road trips. White instant porridge hot or cold milkor water to enjoy a great tasting filling meal anywhere any time. Instant porridge mix can alsobe drunk by adding 100ml extra liquid to the product. 19 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • The range is easily recognisable with its distinctive easy to handle individual (10) sachets ina matte gloss box packaging. White star is really “The Clever Choice”Instant Porridge  White Star Instant Porridge : Banana  White Star Instant Porridge : Vanilla  White Star Instant Porridge : Mixed berry  White Star Instant Porridge : PapayaWhite star vita shakePerfect for busy men and women, particularly on the move. All in one vita shake is a superfine maize base. Enriched with vitamin and minerals that are easily absorbed by the body. L-taurine, guarana, caffeine, Panax ginseng and Ginkgo biloba clinically proven to enhancemental performance and boost energy. Provides a mind-body boost anytime, anywhere.Increase energy and improve mental clarity for better performance throughout the day. Whitestar vita shake comes in 3 delicious fruit flavours. Produced by White star a brand you cantrust to deliver on quality and nutritional value. A complete meal solution for a 48hour day.Instant – easy to prepare, just add milk or water.The range is easily recognisable with its distinctive unique pocket size (10) sachets in amatte box packaging. White star is really “The Clever Choice”All in one breakfast  White star vita shake : Papaya  White star vita shake : Banana  White star vita shake : ChocolateThe Value ChainFigure1.4 the value chainPorters 5 ForcesFigure 1.5 porters forces 20 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • PRICEThe price is dependent of supply and demand, but the product is positioned as a premiumpriced product with a marginal gap between the competitors. Research has shown in someregions there is no price sensitivity it’s all about status quo. The expense of the premiumpriced product is a result on the increase in extraction rates from 55% to 62,5% and recently91%. The prices of the four main nodes in the food chain are the average producer price, themill door price, the list price, and the consumer price. Table1.5 Price Structure From farm gate to retailerPLACEThe objective here is to grow market share and expose the new range to new markets. Thiscan be achieved by targeting the following institutions where the target market frequents:White maize meal  Private / Public Schools and Tertiary Institutions –food court  Medical Centres / Health and Wellness Centres – in the waiting area and coffee shop  Retailers –Pick n Pay, Woolworths, Checkers, Garage Shops, Hospitals  Restaurants- Africa 2 Asia,  Game lodge & Reserves/ Safaris- The real Africa cuisine  Airlines- South African Airlines flies in and around the African continent.Instant porridge  Private / Public Schools and Tertiary Institutions –food court  Medical Centres / Hospitals- Paediatrics, canteens or patients  Retailers –Pick n Pay, Woolworths, Checkers, metro city store, clicks, dis-chem  Medical Retailer – Pharmacies, dispensaries,  Game lodge & Reserves/ Safaris- The real Africa cuisineVita shake  Tertiary institutions, Colleges and Private institutions  Medical Centres / Health and Wellness Centres – in the waiting area and coffee shop  Retailers –Pick n Pay, Woolworths, Checkers, metro city store, clicks, dis-chem  Medical Retailer – Pharmacies, dispensaries, 21 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • PROMOTIONThe overview objectives are to reach the new target market and increaseawareness. Sustain current target market. Increase volumes and market share in themarket. Each segment will have their own marcom strategy.Table 1.6 Detailed Marcom SummaryMedia Advertising: 1. Television According to reach and frequency. Television adverts, for maize meal and porridge will be on SABC 1,2,3, and e-TV. The time slots will be selected. All advertisements for vita shake will be shown on SABC 1 and DSTV. 2. Radio All radio jingles will be the same as the ones seen on television. On air adverts will be in the morning and evening when listenership is high.Print Advertising: 1. Magazine Black diamonds are targeted in high traffic areas such as the airport magazines. Sports-illustarted and Cosmopolitan. The lower LSM readership are bono and fairlady.Interactive 1. Online advertising: Websites, Google advertisements and Vita shake individual website. 2. Social media: Facebook, You Tube, advertisementsDirect Marketing 1. Cell phone: Develop Customer database SMS ‘3321’ cost of R1 barcode number to win a price. sms’s can be sent out to the current customers. 1. New product range 2. Special offers 3. News- next community event 4. Competition notificationsPlace Advertising 1. Billboards: High traffic areas that reach the right audience. Schools, low cost housing areas. 2. Transit: Black diamonds: billboard at Airport , Gautrain, Inner city transportation zones. 22 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Store Signage And Pop Displays: 1. Floor advertisements High traffic stores, metro city, depending on region and reach of the target market. 2. POP Display: Increase pester power in selected regions, attract black diamonds.Trade And Consumer Orientated. 1. Sampling: In-store, churches and schools 2. Sampling Black diamonds: See attachment to magazines 3. Bonus pack: 30% EXTRA on samp and maize 4. Shelf delivered coupon: limited to region 5. Free with purchase: Launch gift, free kids lunch bag with every purchase of porridge 6. Free with purchase: Launch gift, free vita shake- shaker/mixer 7. Near pack premium: attached onto maize meal will be a porridge sample box 8. Near pack premium: attached onto porridge will be vita shakeEvent marketing and sponsorship 1. Festivals; Community festival Fun Day Festival – promote braaipap etc 2. Sponsor: Soccer team locals or player.Public Relations 1. Community development- Educational school prefab with meals. 100 white star Low cost housing development for a community. Vision: appendix 2. Graduate programme; Bursaries and Scholarships. Limited to disadvantaged familiesPersonal selling 1. Sales force: - Sales force per region: example: kzn region team a: upper region : set goals & objectives ; Team B: lower region: set goals & objectives :Highly motivated and competitive driven. Identify strategic distributions channels and outlet This will be crucial for future growth and must be managed extremely well by the Sales Managers in each region. 23 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
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    • CONTROLS 1. Receive monthly sales volume and product progress reports from each Regional manager 2. Monitor sales and expenses to ensure that it is in line with the budget. 3. Monitor market share, competitor levels and pricing through periodic market research. 4. Monitor customers via surveys. 5. Plan Regional meetings with sales managers from each province 6. Receive monthly Sales reports from retail stores in each region 7. Plan regular meetings with regional Marketing manager 3 times per year. 8. Monitor online website visits by measuring website hit per week. 9. Monitor any changes in Demographics statistics on an annual basis. 10. Plan meetings with maize board every 6 months. 26 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • TABLES Table 1.1: White and yellow maize: Geographical distribution of production Table 1.2: Total maize area harvested, production, consumption and prices Table 1.3: Market share of white maize millers Table 1.4: Extraction rate of various maize meal types Table 1.5 Price Structure From farm gate to retailer Table 1.6: Basic White Star Marcom Strategy 27 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Table 1.1: White and yellow maize: Geographical distribution of production (%)Table 1.2: Total maize area harvested, production, consumption and prices)Table 1.3: Market share of white maize millers 28 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Table 1.4: Extraction rate of various maize meal types Source: Chamber of millingTable1.5 Price Structure From farm gate to retailer Price structure- Supply Chain Farm gate price (4-month lag) Transport cost: Farm gate to silo Handling & Storage cost: Costs of farmer SAFEX White maize average nearby contract price (4-month lag) Transport cost: Silo to Mill door Handling & Storage cost: Costs of miller Income from sales of chop Mill door price MANUFACTURERS Production cost (milling costs) Packing cost Packing material costs and losses Administration, Warehouse and selling Mill site costs Distribution costs Total mill site costs Fixed Capital cost Floating Capital costs Total costs Cost of production of super maize meal Conversion cost Average cost of maize (mill door price) Total super maize meal cost Divided by average extraction for super maize meal Average cost of super maize meal Miller-to-retail margin Average Monthly Retail Price (actual retail price) 29 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Table 1.6: Basic White Star Marcom Strategy WHITE STARSegments Mama & Pap Smart star Black DiamondTarget market 18-35 5+ 21-45Lsm 1-6 1-7 5-7Slogan Clever choice Clever choice Clever choiceTagline Move to the taste Smart championProduct Super maize meal Instant porridge 1 Vita 1 Braaipap 2 2 Rice 3 3 MEDIA ADVERTISINGTelevision SABC 1,2,3,eTV, DSTVRadio Ukhozi FM and Umhlobo Wenene FM Ukhozi,5FM,Metro fm, PRINT ADVERTISINGMagazine Bono, Fairlady Airport magazine, Cosmo,Sport INTERACTIVE ADVERTISINGOnline advertising Website/Google adsetcCell phone 24%-96% PLACE ADVERTISINGBillboards Schools High R/F areaTransit ads City Transport area Airport STORE SIGNAGE AND POP ADVERTISINGIn store High traffic area only Pester Power High traffic area onlyFloor ads limited to region Retailers limited to region onlyPop display TRADE AND CONSUMER ORIENTATEDSampling Schools, churches Magazines ,In-storeBonus Pack Samp & maizeShelf delivered coupon R5.00 limited to region R10.00 limited to regionPremiums Free with purchase eg: Lunch bag Near pack premium EVENT MARKETING AND SPONSORSHIPFestivals Community festival Fun Day Festival – promote braaipapSponsor Soccer team locals or player. PUBLIC RELATIONSCommunity Educational school prefab with meals. 100 white star Low cost housing developmentdevelopment for a community. Vision: appendixGraduate programme Bursaries and Scholarships. Limited to disadvantaged families. Personal sellingSales force Sales force per region: EXAMPLE: KZN REGION Team A: upper region : set goals & objectives ; Team B: lower region: set goals & objectives : Highly motivated and competitive driven. 30 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • FIGURESFigure 1.1: Gross value for the top ten agricultural products for 2002/03Figure 1.2: White maize spot price, the super maize meal retail price and the miller to-retail margin.Figure 1.3: Positioning Map Comparing Consumer Preference 1999-2000 & 2002-2006Figure 1.4 The Value ChainFigure 1.5 Porters 5 forces 31 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • Figure 1.1: Gross value for the top ten agricultural products for 2002/03Figure 1.2: The white maize spot price, the super maize meal retail price and the millerto-retail margin. 32 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • FIGURE 1.3: Positioning Map Comparing Consumer Preference 1999-2000 & 2002-2006 Map 1999-2000 fine smooth Vitamin taste cooks easy fast soft light hunger energy Map 2002-2006 fine smooth Vitamin taste cooks easy fast soft light hunger energy 33 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
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    • WHITE STAR CAMPAIGN 36 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • WHITE STAR MAIZE RANGESTORE PROMO AND POP ADVERTISINGTRADE AND CONSUMER ORIENTATEDPRINT ADVERTISINGINTERACTIVE ADVERTISINGPLACE ADVERTISINGSymbolism 37 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
    • WHITE STAR INSTANT PORRIDGE RANGEResearch & DevelopmentTRADE AND CONSUMER ORIENTATED - SAMPLINGPUBLIC RELATIONSCONCEPTS 38 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
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    • 1. Brandkey- http://www.brandkey.co.za/ 2. Case study reference: Simpson, J., and Dore, B. 2004. Marketing in South Africa: Cases and Concepts. 2nd edn. South Africa: Van Schaik Publishers. 3. Tigerbrands- http://www.tigerbrands.co.za 4. Sasko - http://saskograin.co.za 5. Kellogs- http://www.kelloggs.co.uk/ 6. Bokomo- http://www.bokomobotswana.co.bw 7. Brandkey- http://www.brandkey.co.za/ 8. Pioneerfoods- http://www.pioneerfoods.co.za/ 9. National chamber of milling- http://www.grainmilling.org.za/ 10. National Agricultural Marketing Council (Namc) - http://www.grainmilling.org.za/ 11. NDA- http://www.nda.agric.za/docs/fpmc/Vol4_Chap2.pdf 12. Department of Agricultural Economics (MSU http://www.aec.msu.edu/maizemarket/index.htm 13. IRIN http://www.irinnews.org/ 14. Abstract of Agricultural Statistics, SAFEX 15. Sociocultural Influences and Eating Disorders Around the Globe By Mary K. Stein, Managing Editor: Extract: Dr. Christopher P. Szabo 16. Report on the investigation of the effects of Deregulation on the maize industry. National agricultural marketing council (Namc) Section 7 committee evaluating the deregulation process: The maize industry 17. Grain South Africa www.grainsa.co.za 18. National Chamber of Milling www.grainmilling.org.za 19. South African Grain Information System www.sagis.org.za 20. Grain Silo Industry 21. Agricultural Statistics: Department of Agriculture, Forestry and Fisheries www.nda.agric.za 22. Competition Commission of South Africa www.compcom.co.za 23. Quantec Research www.quantec.co.za 24. ITC Market Access Map http://www.macmap.org/South Africa 25. ITC Trade Map http://www.trademap.org 178 43 | P a g eSheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study