2. Company Overview
• Foodcorp is the third largest food manufacturer in South Africa.
• Foodcorp produces some of South Africa's top iconic brands including
Yum Yum peanut butter, Ouma Rusks, Nola Mayonnaise, Glenryk
Pilchards, Mageu Number 1, Piemans pies and Sunbake bread.
SA
ECONOMI
C INDICATORS
5. Mageu Regional Distribution
• 2012 Volume = 82.9 Million Litres
8./9 W
Cape
2. N
WEST
6. E
CAPE
7 FREE
STATE
8/9 N
CAPE
5 MPL 1.
GAUTENG
3.
LIMPOPO
4 KZN
Owing to rounding, percentages may not add up to 100%
Excludes exports
7. Mageu Per Capita Local Consumption
2003 46.1 1.3
2004 46.5 1.3 0.5%
2005 46.9 1.3 1.9%
2006 47.2 1.4 2.8%
2007 47.5 1.7 24.7%
2008 47.7 1.6 -5.1%
2009 47.9 1.4 -13.8%
2010 48.1 1.6 14.3%
2011 48.3 1.7 3.2%
2012 48.8 1.7 3.9%
Mageu is targeted at a specific demographic, though this is seeing a shift with the introduction
of health-related products and the smooth variant. This has extended the category reach and
assisted in growing the per capita consumption of mageu within South Africa.
Population Figure Source:BMR
Per Capita Consumption =Market volume divided by population
Excludes exports
34 I 2013 Annual Quantion Report: Mageu in SouthAJric;J
8. Beverage Division
Our Core Purpose
We Exist to Nourish African Communities
Our Vision
To Make Nutritional Grain Based Liquid Food and Snacks
More Accessible to Africa
11. Key Brand Focus
Mageu Number 1 is a market leader within the Mageu Product category. This is a small
category of the larger beverages category which is valued at R108 Billion. To succeed in the
long-term, MN1 needs to succeed in maintaining market leadership position within Mageu
product category and also obtain growth from other product categories in the beverage
category as well as other markets.
Total Beverages Category
Mageu Product
Category
12. Product proposition: My number 1 power drink all day all in
one
Strengths
Strong brand equity
Best Quality (intrinsic)
Familiar ‘It’s always been in my
life’
Strong distribution
Recognisable icons
Weaknesses
Ageing target-market
Category seen as down-market
Opportunities
Drive innovation
Leverage heritage
Premium within sub-category
Upgrade packaging to
communicate premium status
Threats
House-brands
Alternatives offering same benefit
(all-in-one meal + refreshment)
Innovations within sub-category
13. Mageu No.1 Target Market Snapshot MEDIOLOGY
Traditional and slightly resistant to ·
change
Brand Loyaland price sensitive
Sport and watching sport is very
important
Soccer is the most popular sport
followed by cricket
Majority live in small urban areas
or ruralareas whilst 47 % live in
large urban areas
87 % own or use cell phones
9 % access Internet via cell phone
29 % speak Zulu as a home
language followed by Xhosa (16%)
and Northern Sotho (14 %)
Source: AMPS 2011
Black! Male
Age 25 -45
LSM 4 - 6
41 % work full time
16 % work part time
Taxis are the most widely
used mode of transport
(73%) followed by private
vehicles (39%)
View advertising as valued
source of information
Family and community
orientated.
Proudly South African
14. Target Market Overview
Majority of
South
Africans
living on
R5,000 or
less
Consumers
using credit
to buy food
76%
A huge
number of
households
are grant
dependent Strikes
Commodity
prices
going up
Unemployment
remains high
(Transport
, Mines,
Agricultur
e)
Spaza shops
purchases on
an average of
18 X a month
vs. retail of 2
X a month
When there
are limited
resources
brand loyalty
is tested !
15. 76% of income used to service
debt, creating a perpetual cycle.
16. We don't go buy brands. We buy the
cheapest at that time. We do have
favourite foods but we can't afford it
We used to buy Super Sun
mealie meal but when the
price is high we buy Uon or
other brands
I'll buy the
cheaper Spekko
but my rst
choice would be
Tastic because I
love it
18. loh.
MN1 Activity
To En..,.er
• l"-1 ':L hf roe(1-.:21,:.tiN" II Ot- "' lll'!JoUO rn )
or MA <JU Nu.-nobr 1
Wr1'tc .,ou r n nc a nd conf'nc:t number
un llub..sr k .,,. nu • I ill ...r p
Pt""<C' il i1• I he .e-n h •t bo"' -
- r -L. •- "-'-- ..,
23. 1
Image:
• Traditional
• Familiar
• Heritage
• Simple
Positive:
• Reminds me of
home
• Opens up appetite
• Very filling when I’m
in a hurry
• Convenient
• Affordable
Icons:
• The Pot
• Corn
• Carton
• Number ‘1’ Product:
• Affordable
• Trusted Quality
• Always Available
Negative:
• For sick people
• I wouldn’t date a
guy I see drinking
28. Target Market
• Young, Black & Techno-Savvy
• 18 – 25 Years Old
• Urban
• Optimistic
• In-the-know
• Fashion Conscious
• Trendy
• Smart
Yet still………………………………..
29. Mageu Smooth Target Market Snapshot MEDIOLOGY
Brand Loyal
Modern yet still hold tradrtional
values
Prefer paying more for well known
brands
Dressing well and looking good is
important
Soccer is the most popular sport
followed by cricket
Majority live in urban areas whilst
36 % live in small urban or
rural areas
91 % own or use a cell phone
25 % access Internet via cell
phones
29% speak Zulu as a home
language followed by Xhosa (16%)
and Southern Sotho (13 %)
Source:AW.PS 2011
Black
18 -25
LSM 5 - 8
Universe: 4 416 000
51% Male
49% Female
39 % are students
10 % work full time
5 % work part time
Taxis are the widest
used mode of transport
(78%) followed by 16%
who make use of private
vehicles
Spend majority of their
time with friends and
family
Enjoy participating in
sports
Enjoy trying new brands
they see or hear advertise
Proudly South African
30. ...street smart, dynamic, modern,fun loving,
up to date,friends,colourful,progressive,
stylish, charming...
'
• ,j I
Ill
31. Image
Mageu smooth provides sustained
energy that allows you to take
life in your stride and not have to
sweat the small stuff.
An image of substance, as
apposed to a superficial quick fix.
Fun loving
Caring
Casually stylish
Trustworthy- ---+-
Contemporary- ---+-
Friend
Opinionated
Urban-centric
Colourful
Charming
Street smart
Dynamic
Isn'tMaking fun
Manipulative
Avant-Garde
Fairweather friend
Hip
Icon
Social commentary
Forget its roots
Gaudy
Patronising
Arrogant
Reckless
Image
Obsessed with other people's
opinions of you. Aloof. A
player. Forever changing to
keep up with the latest
trends.
REAL SUBSTANCE
Sustained energy- ---+-
SUPERFICIAL QUICK FIX
Instant energy
33. 1
Icons:
• *no recall*
Image:
• Funky
• Looks like
Yoghurt
• Different
Product:
• Smooth
• Great Taste
• Small
Positive:
• Looks cool
• I could drink this
around friends
• Tastes like mageu,
just smoother.
Negative:
• Too small
• It’s for girls (pretty)
