SlideShare a Scribd company logo
Addressing the changing
consumer behaviour in the South
African market
Etienne Booyens
Challenging economic climate
• Household consumption expenditure - slower that anticipated
(Household consumption expenditure increased by only 3.5% year-on-year
in 2012);
• High unemployment levels are contributing to the pressure on consumers’
spending
(2012 unemployment remained high at 24.5%);
• Substantial household debt and low savings
(SA has just below 20 million credit active consumers, of which a significant
47% have impaired credit records);
• Rising inflation
(From February 2011 to February 2013 (i.e. over two years) the CPI
increased by 12.3%);
Source: NAMC Food Price Monitor
SA EXPENDITURE ON FOOD
25.0
27.0
29.0
31.0
33.0
35.0
37.0
39.0
41.0
Jul‐08
Sep‐08
Nov‐08
Jan‐09
Mar‐09
May‐09
Jul‐09
Sep‐09
Nov‐09
Jan‐10
Mar‐10
May‐10
Jul‐10
Sep‐10
Nov‐10
Jan‐11
Mar‐11
May‐11
Jul‐11
Sep‐11
Nov‐11
Jan‐12
Mar‐12
May‐12
Jul‐12
Sep‐12
Nov‐12
Jan‐13
The cost of a basic food basket expressed as a share of the average 
monthly income of the  poorest 30 % of the population
2.0
2.2
2.4
2.6
2.8
3.0
3.2
Jul‐08
Sep‐08
Nov‐08
Jan‐09
Mar‐09
May‐09
Jul‐09
Sep‐09
Nov‐09
Jan‐10
Mar‐10
May‐10
Jul‐10
Sep‐10
Nov‐10
Jan‐11
Mar‐11
May‐11
Jul‐11
Sep‐11
Nov‐11
Jan‐12
Mar‐12
May‐12
Jul‐12
Sep‐12
Nov‐12
Jan‐13
The cost of a basic food basket expressed as a share of the average 
monthly income of the wealthiest 30 % of the population
29 %
40.4 %
2.3 %
3.2 %
The impact of these economic
conditions on the consumer
• Strong focus on good value;
• More price sensitive;
• Better planned consumer spending (less impulsive purchases);
• More attention to sales / promotions;
• Focus on convenient (and often nearby) location of retailers;
• Focus on ‘tried and trusted’ products;
• Increased focus on home-prepared meals;
• Availability of high quality fresh produce; and
• Products delivering health and safety at an affordable price.
4
The good news…….
Living Standard Measures (LSM®)
5
6
Source: Stats SA, 2013.
Expenditure patterns
0
10
20
30
40
Lower 2 3 4 5 6 7 8 9 Upper Total
Percentage
Income deciles
Food and non‐alcoholic beverages
Alcoholic beverages and tobacco
Clothing and footwear
Housing, water, electricity, gas and other fuels
Furnishings, househould equipment and routine maintenance of the dwelling
Health
Transport
Communication
Recreation and culture
Education
Restaurants and hotels
Private consumption expenditure on
food
7
0
20000
40000
60000
80000
100000
120000
140000
160000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Million Rand
  MEAT
BREAD & GRAIN
  SUGAR
MILK & MILK PRODUCTS
  OILS & FATS
 POTATOES
 FRUIT&VEG
  OTHER
COFFEE, TEA
Source: DAFF, 2013.
Food affordability in South Africa: Price remains important
8
Cost  of  NAMC  
Food  Basket  in  
2010, 2011  and  
2012  prices  for  
each item 
Sources: For 2001 
from Jacobs, 2009. 
StatsSA & AC Nielsen 
(2005, 2013)
Food groups and items 2010 2011 2012
Bread and cereals
Loaf of brown bread 700g 7.06 7.70 8.45
Loaf of white bread 700g 7.88 8.65 9.46
Maize special 5kg 16.64 17.71 26.95
Rice 2kg 21.41 20.42 21.51
Beef brisket - fresh per kg 45.26 51.34 57.55
Whole chicken - fresh per kg 28.29 29.37 32.20
Fish (excl tuna) - tinned 425g 12.12 11.33 12.08
Dairy and eggs
Full cream milk - fresh 1ℓ 8.55 6.78 9.38
Eggs 2.5 dozen 34.45 33.58 35.79
Fruit
Apples - fresh per kg 12.13 13.28 13.55
Bananas - fresh per kg 9.69 10.27 11.00
Oranges - fresh per kg 7.39 7.14 7.87
Vegetables
Potatoes - fresh per kg 9.25 9.87 9.03
Tomatoes - fresh per kg 14.73 9.15 9.86
NAMC food basket 396.43 418.82 451.08
How do we create consumer
awareness of potatoes?
9
NUTRITION TABLE 
FOR LABELLING 
PURPOSES
Allowed claims for general potatoes
10
Potato cultivar classification system
11
Price and income is simple to
measure. However the
impact of awareness on SA
consumers can only be
measured over an
extended period
Measuring marketing results
13
14
15
16
Potatoes and sport
17
The Comrades Marathon
• Approximately 20 000 runners
• 90 km endurance race
• Potato South African (11 potato fuel
stations along the route)
• Potatoes has become known for
preferred carbo-loading food for
endurance races
• Also involved in other endurance sport
e.g. soccer and cycling.
Comrades
19
21
22

More Related Content

Viewers also liked

Monday 3: Comparative studies on sources of sweetpotato planting material for...
Monday 3: Comparative studies on sources of sweetpotato planting material for...Monday 3: Comparative studies on sources of sweetpotato planting material for...
Monday 3: Comparative studies on sources of sweetpotato planting material for...
African Potato Association (APA)
 
Theme 3: Effect of vine harvesting on root and vine yield of different sweetp...
Theme 3: Effect of vine harvesting on root and vine yield of different sweetp...Theme 3: Effect of vine harvesting on root and vine yield of different sweetp...
Theme 3: Effect of vine harvesting on root and vine yield of different sweetp...
African Potato Association (APA)
 
Monday 3: Determination of nutrient solutions for potato (Solanum tuberosum L...
Monday 3: Determination of nutrient solutions for potato (Solanum tuberosum L...Monday 3: Determination of nutrient solutions for potato (Solanum tuberosum L...
Monday 3: Determination of nutrient solutions for potato (Solanum tuberosum L...
African Potato Association (APA)
 
Theme 3: Testing “Triple S” in a new context: sweetpotato planting material c...
Theme 3: Testing “Triple S” in a new context: sweetpotato planting material c...Theme 3: Testing “Triple S” in a new context: sweetpotato planting material c...
Theme 3: Testing “Triple S” in a new context: sweetpotato planting material c...
African Potato Association (APA)
 
Theme 3: Vine survival of sweetpotato [Ipomoea batatas (L.) Lam.] cultivars s...
Theme 3: Vine survival of sweetpotato [Ipomoea batatas (L.) Lam.] cultivars s...Theme 3: Vine survival of sweetpotato [Ipomoea batatas (L.) Lam.] cultivars s...
Theme 3: Vine survival of sweetpotato [Ipomoea batatas (L.) Lam.] cultivars s...
African Potato Association (APA)
 
Heritability for yield and glycoalkaloid content in potato breeding for heat ...
Heritability for yield and glycoalkaloid content in potato breeding for heat ...Heritability for yield and glycoalkaloid content in potato breeding for heat ...
Heritability for yield and glycoalkaloid content in potato breeding for heat ...
African Potato Association (APA)
 
Participatory selection of orange-fleshed sweetpotato varieties in north and ...
Participatory selection of orange-fleshed sweetpotato varieties in north and ...Participatory selection of orange-fleshed sweetpotato varieties in north and ...
Participatory selection of orange-fleshed sweetpotato varieties in north and ...
African Potato Association (APA)
 
Towards zero-fungicide, genetically modified potatoes for Africa
Towards zero-fungicide, genetically modified potatoes for Africa Towards zero-fungicide, genetically modified potatoes for Africa
Towards zero-fungicide, genetically modified potatoes for Africa
African Potato Association (APA)
 
Participatory variety selection: a tool to understand farmers’ potato variety...
Participatory variety selection: a tool to understand farmers’ potato variety...Participatory variety selection: a tool to understand farmers’ potato variety...
Participatory variety selection: a tool to understand farmers’ potato variety...
African Potato Association (APA)
 
Monday 2: Orange-fleshed sweetpotato adoption improved dietary quality: evide...
Monday 2: Orange-fleshed sweetpotato adoption improved dietary quality: evide...Monday 2: Orange-fleshed sweetpotato adoption improved dietary quality: evide...
Monday 2: Orange-fleshed sweetpotato adoption improved dietary quality: evide...
African Potato Association (APA)
 
Theme 2: Yield and nutrition quality stability of orange-fleshed sweetpotato ...
Theme 2: Yield and nutrition quality stability of orange-fleshed sweetpotato ...Theme 2: Yield and nutrition quality stability of orange-fleshed sweetpotato ...
Theme 2: Yield and nutrition quality stability of orange-fleshed sweetpotato ...
African Potato Association (APA)
 
Theme 2: Development of mineral-biofortified potato to help overcome micronut...
Theme 2: Development of mineral-biofortified potato to help overcome micronut...Theme 2: Development of mineral-biofortified potato to help overcome micronut...
Theme 2: Development of mineral-biofortified potato to help overcome micronut...
African Potato Association (APA)
 
Monday 2: Analysis of preferences, perceived barriers, and factors influencin...
Monday 2: Analysis of preferences, perceived barriers, and factors influencin...Monday 2: Analysis of preferences, perceived barriers, and factors influencin...
Monday 2: Analysis of preferences, perceived barriers, and factors influencin...
African Potato Association (APA)
 
Food security, nutrition-sensitive agriculture, and technology adoption: the ...
Food security, nutrition-sensitive agriculture, and technology adoption: the ...Food security, nutrition-sensitive agriculture, and technology adoption: the ...
Food security, nutrition-sensitive agriculture, and technology adoption: the ...
African Potato Association (APA)
 

Viewers also liked (14)

Monday 3: Comparative studies on sources of sweetpotato planting material for...
Monday 3: Comparative studies on sources of sweetpotato planting material for...Monday 3: Comparative studies on sources of sweetpotato planting material for...
Monday 3: Comparative studies on sources of sweetpotato planting material for...
 
Theme 3: Effect of vine harvesting on root and vine yield of different sweetp...
Theme 3: Effect of vine harvesting on root and vine yield of different sweetp...Theme 3: Effect of vine harvesting on root and vine yield of different sweetp...
Theme 3: Effect of vine harvesting on root and vine yield of different sweetp...
 
Monday 3: Determination of nutrient solutions for potato (Solanum tuberosum L...
Monday 3: Determination of nutrient solutions for potato (Solanum tuberosum L...Monday 3: Determination of nutrient solutions for potato (Solanum tuberosum L...
Monday 3: Determination of nutrient solutions for potato (Solanum tuberosum L...
 
Theme 3: Testing “Triple S” in a new context: sweetpotato planting material c...
Theme 3: Testing “Triple S” in a new context: sweetpotato planting material c...Theme 3: Testing “Triple S” in a new context: sweetpotato planting material c...
Theme 3: Testing “Triple S” in a new context: sweetpotato planting material c...
 
Theme 3: Vine survival of sweetpotato [Ipomoea batatas (L.) Lam.] cultivars s...
Theme 3: Vine survival of sweetpotato [Ipomoea batatas (L.) Lam.] cultivars s...Theme 3: Vine survival of sweetpotato [Ipomoea batatas (L.) Lam.] cultivars s...
Theme 3: Vine survival of sweetpotato [Ipomoea batatas (L.) Lam.] cultivars s...
 
Heritability for yield and glycoalkaloid content in potato breeding for heat ...
Heritability for yield and glycoalkaloid content in potato breeding for heat ...Heritability for yield and glycoalkaloid content in potato breeding for heat ...
Heritability for yield and glycoalkaloid content in potato breeding for heat ...
 
Participatory selection of orange-fleshed sweetpotato varieties in north and ...
Participatory selection of orange-fleshed sweetpotato varieties in north and ...Participatory selection of orange-fleshed sweetpotato varieties in north and ...
Participatory selection of orange-fleshed sweetpotato varieties in north and ...
 
Towards zero-fungicide, genetically modified potatoes for Africa
Towards zero-fungicide, genetically modified potatoes for Africa Towards zero-fungicide, genetically modified potatoes for Africa
Towards zero-fungicide, genetically modified potatoes for Africa
 
Participatory variety selection: a tool to understand farmers’ potato variety...
Participatory variety selection: a tool to understand farmers’ potato variety...Participatory variety selection: a tool to understand farmers’ potato variety...
Participatory variety selection: a tool to understand farmers’ potato variety...
 
Monday 2: Orange-fleshed sweetpotato adoption improved dietary quality: evide...
Monday 2: Orange-fleshed sweetpotato adoption improved dietary quality: evide...Monday 2: Orange-fleshed sweetpotato adoption improved dietary quality: evide...
Monday 2: Orange-fleshed sweetpotato adoption improved dietary quality: evide...
 
Theme 2: Yield and nutrition quality stability of orange-fleshed sweetpotato ...
Theme 2: Yield and nutrition quality stability of orange-fleshed sweetpotato ...Theme 2: Yield and nutrition quality stability of orange-fleshed sweetpotato ...
Theme 2: Yield and nutrition quality stability of orange-fleshed sweetpotato ...
 
Theme 2: Development of mineral-biofortified potato to help overcome micronut...
Theme 2: Development of mineral-biofortified potato to help overcome micronut...Theme 2: Development of mineral-biofortified potato to help overcome micronut...
Theme 2: Development of mineral-biofortified potato to help overcome micronut...
 
Monday 2: Analysis of preferences, perceived barriers, and factors influencin...
Monday 2: Analysis of preferences, perceived barriers, and factors influencin...Monday 2: Analysis of preferences, perceived barriers, and factors influencin...
Monday 2: Analysis of preferences, perceived barriers, and factors influencin...
 
Food security, nutrition-sensitive agriculture, and technology adoption: the ...
Food security, nutrition-sensitive agriculture, and technology adoption: the ...Food security, nutrition-sensitive agriculture, and technology adoption: the ...
Food security, nutrition-sensitive agriculture, and technology adoption: the ...
 

Similar to Sess14 2 etienne_th5_abs104

Urban Wage Behavior During Food Price Hikes In Ethiopia
Urban Wage Behavior During Food Price Hikes In EthiopiaUrban Wage Behavior During Food Price Hikes In Ethiopia
Urban Wage Behavior During Food Price Hikes In Ethiopia
essp2
 
Food processing ingredients Vietnam_2015 Annual Report
Food processing ingredients Vietnam_2015 Annual Report Food processing ingredients Vietnam_2015 Annual Report
Food processing ingredients Vietnam_2015 Annual Report
Canada-Vietnam Entrepreneurs Network
 
IMPACT OF RICE PRICES ON FOOD INFLATION, 2007-2012, FINAL DRAFT,DEC.18TH,2012
IMPACT OF RICE PRICES ON FOOD INFLATION, 2007-2012, FINAL DRAFT,DEC.18TH,2012IMPACT OF RICE PRICES ON FOOD INFLATION, 2007-2012, FINAL DRAFT,DEC.18TH,2012
IMPACT OF RICE PRICES ON FOOD INFLATION, 2007-2012, FINAL DRAFT,DEC.18TH,2012
Matthias Ngobi Miti
 
Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...
Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...
Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...
International Food Policy Research Institute - Development Strategy and Governance Division
 
Food security policy challenges in central Asia: example of Tajikistan
Food security policy challenges in central Asia: example of TajikistanFood security policy challenges in central Asia: example of Tajikistan
Food security policy challenges in central Asia: example of Tajikistan
International Food Policy Research Institute
 
Richard Pearson NFU Profiting from Sustainability Conference York Dec 2014
Richard Pearson NFU Profiting from Sustainability Conference York Dec 2014Richard Pearson NFU Profiting from Sustainability Conference York Dec 2014
Richard Pearson NFU Profiting from Sustainability Conference York Dec 2014
Stevencann1
 
Water-Energy-Food Nexus in Ethiopia: Constraints and Opportunities
Water-Energy-Food Nexus in Ethiopia: Constraints and OpportunitiesWater-Energy-Food Nexus in Ethiopia: Constraints and Opportunities
Water-Energy-Food Nexus in Ethiopia: Constraints and Opportunities
International Food Policy Research Institute (IFPRI)
 
Dec 2008 results
Dec 2008 results Dec 2008 results
Dec 2008 results
wgjlubbe
 
RED C Credit Crunch Tracking - Oct 2010
RED C Credit Crunch Tracking - Oct 2010RED C Credit Crunch Tracking - Oct 2010
RED C Credit Crunch Tracking - Oct 2010
Richard Colwell
 
Uk economy update 2015
Uk economy update 2015Uk economy update 2015
Uk economy update 2015
Matthew Bentley
 
Foreseeing the Future: Food Security in 2025
Foreseeing the Future: Food Security in 2025Foreseeing the Future: Food Security in 2025
Foreseeing the Future: Food Security in 2025
Center for Economic Research (CER, Uzbekistan)
 
Julio Velarde - inPERU
Julio Velarde - inPERUJulio Velarde - inPERU
Julio Velarde - inPERU
inperu
 
Food security, food crisis and its impact on the caribbean
Food security, food crisis and its impact on the caribbeanFood security, food crisis and its impact on the caribbean
Food security, food crisis and its impact on the caribbean
Debbie-Ann Hall
 
IFPRI- importance of pulses in ensuring both food and nutritional security, j...
IFPRI- importance of pulses in ensuring both food and nutritional security, j...IFPRI- importance of pulses in ensuring both food and nutritional security, j...
IFPRI- importance of pulses in ensuring both food and nutritional security, j...
International Food Policy Research Institute- South Asia Office
 
Dr. Ken Stalder - Pork Industry Productivity Analysis
Dr. Ken Stalder - Pork Industry Productivity AnalysisDr. Ken Stalder - Pork Industry Productivity Analysis
Dr. Ken Stalder - Pork Industry Productivity Analysis
John Blue
 
Pork Industry Productivity Analysis
Pork Industry Productivity AnalysisPork Industry Productivity Analysis
Pork Industry Productivity Analysis
National Pork Board
 
RED C Credit Crunch Tracking - Sept 2010
RED C Credit Crunch Tracking - Sept 2010RED C Credit Crunch Tracking - Sept 2010
RED C Credit Crunch Tracking - Sept 2010
Richard Colwell
 
Nehal Farouk (CAPMAS) • 2019 IFPRI Egypt - NNC Seminar: "the 100 million heal...
Nehal Farouk (CAPMAS) • 2019 IFPRI Egypt - NNC Seminar: "the 100 million heal...Nehal Farouk (CAPMAS) • 2019 IFPRI Egypt - NNC Seminar: "the 100 million heal...
Nehal Farouk (CAPMAS) • 2019 IFPRI Egypt - NNC Seminar: "the 100 million heal...
International Food Policy Research Institute (IFPRI)
 
Bo agriculture restructuring (ciat meeting 20-feb2014-hn)
Bo  agriculture restructuring (ciat meeting 20-feb2014-hn)Bo  agriculture restructuring (ciat meeting 20-feb2014-hn)
Bo agriculture restructuring (ciat meeting 20-feb2014-hn)
CIAT
 
Food market transformation and improving food security in Asia (within and ac...
Food market transformation and improving food security in Asia (within and ac...Food market transformation and improving food security in Asia (within and ac...
Food market transformation and improving food security in Asia (within and ac...
International Food Policy Research Institute
 

Similar to Sess14 2 etienne_th5_abs104 (20)

Urban Wage Behavior During Food Price Hikes In Ethiopia
Urban Wage Behavior During Food Price Hikes In EthiopiaUrban Wage Behavior During Food Price Hikes In Ethiopia
Urban Wage Behavior During Food Price Hikes In Ethiopia
 
Food processing ingredients Vietnam_2015 Annual Report
Food processing ingredients Vietnam_2015 Annual Report Food processing ingredients Vietnam_2015 Annual Report
Food processing ingredients Vietnam_2015 Annual Report
 
IMPACT OF RICE PRICES ON FOOD INFLATION, 2007-2012, FINAL DRAFT,DEC.18TH,2012
IMPACT OF RICE PRICES ON FOOD INFLATION, 2007-2012, FINAL DRAFT,DEC.18TH,2012IMPACT OF RICE PRICES ON FOOD INFLATION, 2007-2012, FINAL DRAFT,DEC.18TH,2012
IMPACT OF RICE PRICES ON FOOD INFLATION, 2007-2012, FINAL DRAFT,DEC.18TH,2012
 
Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...
Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...
Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...
 
Food security policy challenges in central Asia: example of Tajikistan
Food security policy challenges in central Asia: example of TajikistanFood security policy challenges in central Asia: example of Tajikistan
Food security policy challenges in central Asia: example of Tajikistan
 
Richard Pearson NFU Profiting from Sustainability Conference York Dec 2014
Richard Pearson NFU Profiting from Sustainability Conference York Dec 2014Richard Pearson NFU Profiting from Sustainability Conference York Dec 2014
Richard Pearson NFU Profiting from Sustainability Conference York Dec 2014
 
Water-Energy-Food Nexus in Ethiopia: Constraints and Opportunities
Water-Energy-Food Nexus in Ethiopia: Constraints and OpportunitiesWater-Energy-Food Nexus in Ethiopia: Constraints and Opportunities
Water-Energy-Food Nexus in Ethiopia: Constraints and Opportunities
 
Dec 2008 results
Dec 2008 results Dec 2008 results
Dec 2008 results
 
RED C Credit Crunch Tracking - Oct 2010
RED C Credit Crunch Tracking - Oct 2010RED C Credit Crunch Tracking - Oct 2010
RED C Credit Crunch Tracking - Oct 2010
 
Uk economy update 2015
Uk economy update 2015Uk economy update 2015
Uk economy update 2015
 
Foreseeing the Future: Food Security in 2025
Foreseeing the Future: Food Security in 2025Foreseeing the Future: Food Security in 2025
Foreseeing the Future: Food Security in 2025
 
Julio Velarde - inPERU
Julio Velarde - inPERUJulio Velarde - inPERU
Julio Velarde - inPERU
 
Food security, food crisis and its impact on the caribbean
Food security, food crisis and its impact on the caribbeanFood security, food crisis and its impact on the caribbean
Food security, food crisis and its impact on the caribbean
 
IFPRI- importance of pulses in ensuring both food and nutritional security, j...
IFPRI- importance of pulses in ensuring both food and nutritional security, j...IFPRI- importance of pulses in ensuring both food and nutritional security, j...
IFPRI- importance of pulses in ensuring both food and nutritional security, j...
 
Dr. Ken Stalder - Pork Industry Productivity Analysis
Dr. Ken Stalder - Pork Industry Productivity AnalysisDr. Ken Stalder - Pork Industry Productivity Analysis
Dr. Ken Stalder - Pork Industry Productivity Analysis
 
Pork Industry Productivity Analysis
Pork Industry Productivity AnalysisPork Industry Productivity Analysis
Pork Industry Productivity Analysis
 
RED C Credit Crunch Tracking - Sept 2010
RED C Credit Crunch Tracking - Sept 2010RED C Credit Crunch Tracking - Sept 2010
RED C Credit Crunch Tracking - Sept 2010
 
Nehal Farouk (CAPMAS) • 2019 IFPRI Egypt - NNC Seminar: "the 100 million heal...
Nehal Farouk (CAPMAS) • 2019 IFPRI Egypt - NNC Seminar: "the 100 million heal...Nehal Farouk (CAPMAS) • 2019 IFPRI Egypt - NNC Seminar: "the 100 million heal...
Nehal Farouk (CAPMAS) • 2019 IFPRI Egypt - NNC Seminar: "the 100 million heal...
 
Bo agriculture restructuring (ciat meeting 20-feb2014-hn)
Bo  agriculture restructuring (ciat meeting 20-feb2014-hn)Bo  agriculture restructuring (ciat meeting 20-feb2014-hn)
Bo agriculture restructuring (ciat meeting 20-feb2014-hn)
 
Food market transformation and improving food security in Asia (within and ac...
Food market transformation and improving food security in Asia (within and ac...Food market transformation and improving food security in Asia (within and ac...
Food market transformation and improving food security in Asia (within and ac...
 

Recently uploaded

Pitch Deck Teardown: Kinnect's $250k Angel deck
Pitch Deck Teardown: Kinnect's $250k Angel deckPitch Deck Teardown: Kinnect's $250k Angel deck
Pitch Deck Teardown: Kinnect's $250k Angel deck
HajeJanKamps
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesEvent Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Holger Mueller
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
Operational Excellence Consulting
 
2022 Vintage Roman Numerals Men Rings
2022 Vintage Roman  Numerals  Men  Rings2022 Vintage Roman  Numerals  Men  Rings
2022 Vintage Roman Numerals Men Rings
aragme
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
JeremyPeirce1
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
my Pandit
 
Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024
Top Forex Brokers Review
 
Call8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessingCall8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessing
➑➌➋➑➒➎➑➑➊➍
 
Best practices for project execution and delivery
Best practices for project execution and deliveryBest practices for project execution and delivery
Best practices for project execution and delivery
CLIVE MINCHIN
 
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
bosssp10
 
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel ChartSatta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
SalesTown
 
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
Lacey Max
 
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
SOFTTECHHUB
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
SEOSMMEARTH
 
DearbornMusic-KatherineJasperFullSailUni
DearbornMusic-KatherineJasperFullSailUniDearbornMusic-KatherineJasperFullSailUni
DearbornMusic-KatherineJasperFullSailUni
katiejasper96
 
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
taqyea
 
The latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from NewentideThe latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from Newentide
JoeYangGreatMachiner
 
Chapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .pptChapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .ppt
ssuser567e2d
 

Recently uploaded (20)

Pitch Deck Teardown: Kinnect's $250k Angel deck
Pitch Deck Teardown: Kinnect's $250k Angel deckPitch Deck Teardown: Kinnect's $250k Angel deck
Pitch Deck Teardown: Kinnect's $250k Angel deck
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
 
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesEvent Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
 
2022 Vintage Roman Numerals Men Rings
2022 Vintage Roman  Numerals  Men  Rings2022 Vintage Roman  Numerals  Men  Rings
2022 Vintage Roman Numerals Men Rings
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
 
Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024
 
Call8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessingCall8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessing
 
Best practices for project execution and delivery
Best practices for project execution and deliveryBest practices for project execution and delivery
Best practices for project execution and delivery
 
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
 
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel ChartSatta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
 
How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
 
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
 
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
 
DearbornMusic-KatherineJasperFullSailUni
DearbornMusic-KatherineJasperFullSailUniDearbornMusic-KatherineJasperFullSailUni
DearbornMusic-KatherineJasperFullSailUni
 
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
 
The latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from NewentideThe latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from Newentide
 
Chapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .pptChapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .ppt
 

Sess14 2 etienne_th5_abs104

  • 1. Addressing the changing consumer behaviour in the South African market Etienne Booyens
  • 2. Challenging economic climate • Household consumption expenditure - slower that anticipated (Household consumption expenditure increased by only 3.5% year-on-year in 2012); • High unemployment levels are contributing to the pressure on consumers’ spending (2012 unemployment remained high at 24.5%); • Substantial household debt and low savings (SA has just below 20 million credit active consumers, of which a significant 47% have impaired credit records); • Rising inflation (From February 2011 to February 2013 (i.e. over two years) the CPI increased by 12.3%);
  • 3. Source: NAMC Food Price Monitor SA EXPENDITURE ON FOOD 25.0 27.0 29.0 31.0 33.0 35.0 37.0 39.0 41.0 Jul‐08 Sep‐08 Nov‐08 Jan‐09 Mar‐09 May‐09 Jul‐09 Sep‐09 Nov‐09 Jan‐10 Mar‐10 May‐10 Jul‐10 Sep‐10 Nov‐10 Jan‐11 Mar‐11 May‐11 Jul‐11 Sep‐11 Nov‐11 Jan‐12 Mar‐12 May‐12 Jul‐12 Sep‐12 Nov‐12 Jan‐13 The cost of a basic food basket expressed as a share of the average  monthly income of the  poorest 30 % of the population 2.0 2.2 2.4 2.6 2.8 3.0 3.2 Jul‐08 Sep‐08 Nov‐08 Jan‐09 Mar‐09 May‐09 Jul‐09 Sep‐09 Nov‐09 Jan‐10 Mar‐10 May‐10 Jul‐10 Sep‐10 Nov‐10 Jan‐11 Mar‐11 May‐11 Jul‐11 Sep‐11 Nov‐11 Jan‐12 Mar‐12 May‐12 Jul‐12 Sep‐12 Nov‐12 Jan‐13 The cost of a basic food basket expressed as a share of the average  monthly income of the wealthiest 30 % of the population 29 % 40.4 % 2.3 % 3.2 %
  • 4. The impact of these economic conditions on the consumer • Strong focus on good value; • More price sensitive; • Better planned consumer spending (less impulsive purchases); • More attention to sales / promotions; • Focus on convenient (and often nearby) location of retailers; • Focus on ‘tried and trusted’ products; • Increased focus on home-prepared meals; • Availability of high quality fresh produce; and • Products delivering health and safety at an affordable price. 4
  • 5. The good news……. Living Standard Measures (LSM®) 5
  • 6. 6 Source: Stats SA, 2013. Expenditure patterns 0 10 20 30 40 Lower 2 3 4 5 6 7 8 9 Upper Total Percentage Income deciles Food and non‐alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing, water, electricity, gas and other fuels Furnishings, househould equipment and routine maintenance of the dwelling Health Transport Communication Recreation and culture Education Restaurants and hotels
  • 7. Private consumption expenditure on food 7 0 20000 40000 60000 80000 100000 120000 140000 160000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Million Rand   MEAT BREAD & GRAIN   SUGAR MILK & MILK PRODUCTS   OILS & FATS  POTATOES  FRUIT&VEG   OTHER COFFEE, TEA Source: DAFF, 2013.
  • 8. Food affordability in South Africa: Price remains important 8 Cost  of  NAMC   Food  Basket  in   2010, 2011  and   2012  prices  for   each item  Sources: For 2001  from Jacobs, 2009.  StatsSA & AC Nielsen  (2005, 2013) Food groups and items 2010 2011 2012 Bread and cereals Loaf of brown bread 700g 7.06 7.70 8.45 Loaf of white bread 700g 7.88 8.65 9.46 Maize special 5kg 16.64 17.71 26.95 Rice 2kg 21.41 20.42 21.51 Beef brisket - fresh per kg 45.26 51.34 57.55 Whole chicken - fresh per kg 28.29 29.37 32.20 Fish (excl tuna) - tinned 425g 12.12 11.33 12.08 Dairy and eggs Full cream milk - fresh 1ℓ 8.55 6.78 9.38 Eggs 2.5 dozen 34.45 33.58 35.79 Fruit Apples - fresh per kg 12.13 13.28 13.55 Bananas - fresh per kg 9.69 10.27 11.00 Oranges - fresh per kg 7.39 7.14 7.87 Vegetables Potatoes - fresh per kg 9.25 9.87 9.03 Tomatoes - fresh per kg 14.73 9.15 9.86 NAMC food basket 396.43 418.82 451.08
  • 9. How do we create consumer awareness of potatoes? 9 NUTRITION TABLE  FOR LABELLING  PURPOSES
  • 10. Allowed claims for general potatoes 10
  • 12. Price and income is simple to measure. However the impact of awareness on SA consumers can only be measured over an extended period Measuring marketing results
  • 13. 13
  • 14. 14
  • 15. 15
  • 16. 16
  • 17. Potatoes and sport 17 The Comrades Marathon • Approximately 20 000 runners • 90 km endurance race • Potato South African (11 potato fuel stations along the route) • Potatoes has become known for preferred carbo-loading food for endurance races • Also involved in other endurance sport e.g. soccer and cycling.
  • 19. 19
  • 20.
  • 21. 21
  • 22. 22