Marketing Strategy C.s Sasko By Sheenaindhul 4n5nf
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Sasko Milling INTEGRATED MARKETING PLAN & STRATEGY 2 00 2- 2 0 0 6
1|Page Sheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
EXECUTIVE SUMMARY
Pioneer Foods dates back to 1920. De Boeren Ko-Operatieve Molen Maatschappij Beperkt"-BOKOMO, was a co-operative milling business in the 1920’s, which was associated with the development of Die Suid-Afrikaanse Ko-operatiewe Graanmaatskappy 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 a strong contender in the primary market for wheat products and in 1998 were the leaders in the special maize meal category.
Vertical Growth has proven favourable to some extent; in such a competing industry they have experienced both losses and success. The most important requirement in this industry is to respond to demands. Sasko has taken a leap of faith, in launching a new super maize meal. White Star was launched in 1999 as a top-end super maize meal, competing with the maize meal brands in South Africa. Positioned as the first fortified maize meal (with added Vitamin A), the brand quickly took to the sky and showed an incredible growth rate.
In 2002 White Star, will become the most successful brand within its category. White star has become a way of life for the people of South Africa. To grow market share in a competitive industry white star needs to extend their brand portfolio. Differentiating it 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 the economic sector of South Africa. Added to this is the threat of the consistent flux of the economy and government legislation regarding biodiesel. White star must grow its market share by extending its portfolio into new segments, offering the segments added value, while ensuring that the product remains of a high quality
2|Page Sheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
T A B L E
O F
C O N T E N T
Executive Summary
2
Part 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|Page Sheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
Part 2: Swot Analysis
15
Part 3: Key Issues
16
Part 4: Assumptions
16
Part 5: Marketing Objectives
16
Part 6: Marketing Strategy Target Market
17
Positioning
18
Product Strategy
19
Price Strategy
21
Place Strategy
21
Promotion Strategy
22
Part 7: Action Plan
24
Part 8: Budget
25
Part 9: Controls
26
Part 10: Annexure A Tables
27
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
28 28 28 29 29 30
Part 11: Annexure B Tables Figure 1.1: Gross value for the top ten agricultural products for 2002/03 Figure 1.2: White maize the super maize meal retail price Figure 1.3: Positioning Map Comparing Consumer Preference Figure 1.4 The Value Chain Figure 1.5 Porters 5 forces
32 32 33 34 35
Part 12: Annexure C Campaign concept-Illustration
Part 12: References
37
39
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MACRO ENVIROMENT Political/Legal Situation In 1997 the Maize Industry deregulated in South Africa, report by Food Price Monitoring Committee, (2003) and Traub and Jayne, (2004) showed that the maize milling/retail margins in the formal market have been rising in recent years after maize market deregulation. Deregulation in the agricultural sector caused shifts in the geographic patterns of white and yellow maize production. (Table 1.1: White and yellow maize: Geographical distribution of production) Source: Crop Estimates Committee, 2003
Legislation 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 three children suffer from a lack of Vitamin A. It is now statutory to add both Vitamins.
Economic Situation Before 1995, South Africa had a controlled marketing system which restricted informal and unlicensed traders and millers. Since the implementation of the deregulation policy the price of maize increased gradually up to 1999/2000.
Since 1997, product prices have been determined under a free market condition and are formally traded on SAFEX. One of the main flaws of liberation is that consumers will experience price peaks. The flux in R/ton from 1997 to 2000 was a difference of R70.00/ton from the real white maize producers. (Abstract of Agricultural Statistics, SAFEX) Taking into the inflation 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 ever increasing margins. This would impact significantly on low-income consumers who spend up to 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 was the largest contributor to the GDP. Food prices rapidly increased, for the first time in history 1kg of maize was more expensive than the same quantity of flour. This sharp increase in the 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 producer prices increased from 2001, R671.50/ton to 2002 R1158.20/ton. (Abstract of Agricultural Statistics, SAFEX) This
is evident in Table 1.2.
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South Africa’s lower lifestyle standard measurement (LSM) was affected. The total percentage 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 Situation South Africa is rich in its cross-cultural assimilations that capture some of the positive and exciting features of the social, cultural, and ethnic diversity.
The minimal dietary requirement for the black South African is maize meal. The diverse maize meal market is attributable to the changing socio-cultural influences that differ regionally in addition to the economic situation.
Super maize consumer values are changing and demand high quality maize that is high in energy, cooks faster, softer and enriched with vitamins when compared to the unsifted maize. 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 their family. Social and financial pressure impacts when commodity prices like maize meal increases, affecting the ability to sustain status quo.
The changing roles of families and working women within the middle class Black South African is having a positive impact on their society since. Busy working class women are still pressured to produce a meal after work, literally poverty stricken of time. Super maize meal attributes complete these variables by cooking faster quicker and still serves the same taste and enriched vitamins and energy for a family.
The changes in socio-cultural trends in the South African market have been influenced by many 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 South African core values and beliefs. In the Black African culture one is expected to be larger than their standard body frame. This is a cultural value that was ed down from generation and reinforced by others who adhered to the core beliefs and value system. The understanding was should a black African female appear slim she was considered a shame to 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. Christopher P. Szabo)
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The impact of AIDS today on the demographic population will have an impact on the consumption 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 to psychological needs this is the influence of the western world and as a result we get the evolving Black Diamonds. Eating habits have been curbed and diets, changing. The shift in staple grain crops to a more diverse diet of eggs and meat indicated the influential impact of the western culture health trends on generation y in 2005. The need for self-fulfilment will become a priority for generation M. The growing social trend leaped from material to nonmaterial accomplishments. Having control over their lives and making decisions. Selfconscious, new social interaction with other cultures allows for secondary thoughts this new middle class society will shape the tastes and preferences. Free thinking, western culture and women empowerment are some factors that shape our country.
Technological The industry shifted from labour intensive to capital intensive, highly mechanised and automated 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 a single kernel without compromising on quality and reducing black spec. Other forms of scientific technology that have captured many is the genetic mutation of maize. (Table 1.3: Market share of white maize millers) Source: Competition Commission, unpublished information
Enviroment Negative impacts on maize crop failure in regions can cause major effects across the board as 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 the study of maize has led to assist in the bio diversity of emerging trends such as biodiesel. The female maize flower is used as an alternative medicine in herbal supplements. The chemical composition of maize starch allows us to make plastic, fabrics, adhesives and many other chemical based products. Direct plant protection precautions for maize are, essentially, aimed at weed control.
International As maize is an internationally traded commodity, it is also subjected to the international market conditions. The demand and supply conditions of maize in the international market influence domestic prices directly.
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Market Industry Maize is the most important grain crop in South Africa, being both the major feed grain and the staple food for the majority of the South African population. In 2002/03 maize was responsible for the largest contribution of 13.78% to the total gross value of the agricultural production with a gross value of R9.5 billion.
(Figure 1.1: Gross value for the top ten
agricultural products for 2002/03)
The South African maize industry is also the largest maize industry in Africa and ranked in the top 10 maize producers in the world. The major production areas in 2002 were situated in the Free State, North- West and Mpumalanga Provinces. The average local consumption requirements are estimated at 7.4 million tonnes. This can be 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 this 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 maize meal and this percentage is increasing. Special maize meal sales make up 30% of total sales.
Primary Industry The geographical distribution of white maize increased in the Northern Cape. In this area mainly 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 meal market varies distinctly from one region to the next. To succeed in the staple foods category it 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 South Africa is estimated at 17.5 million tonnes, 85% of which is owned by 22 silo owners. Most of this storage capacity is also located in the provinces in the northern parts of the country.
Secondary Industry According to the National Association of Maize Millers, the top 4 companies in this 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-meal
for human consumption, for animal feed or for maize starch.
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Although an extraction rate of 62.5% is reported for super maize meal, some industry specialists 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 milling
The effect of the expensive maize bought during the first part of 2002 impacted on the industry towards the middle of 2002, as the spread between retailer and miller became negative. Millers could not increase retail prices any further they had high costs for raw material. This meant large losses in the maize milling industry. Volume of maize milled declined 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 Sector The tertiary sector consists of traders, retailers and transporters. Traders move the produce to 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 services for the distribution of maize products from the miller to the final consumer. Transport helps to move the maize from the farmers to the silo owner, from the silo owner to the miller and from the intermediaries to the final consumers.
Competitor The maize meal market is increasingly competitive. The best-selling super maize meal products are Iwisa and Ace. Premier foods and tiger milling were the leaders in the white maize meal market with an extraction rate of 55%-62,5%, before Sasko entered the competitive super maize market.
The competitive advantage Sasko had was the additional Vitamin A enriched white maize meal. Sasko customer centric approach had also led them to understand the importance of the black specs per kilogram and vitamin enriched maize meal. The white star slogan “the clever choice” played a significant role against their competitors. White Star is entering a commodity market, making the job of differentiating the white star from its competitor brands difficult. In 1998 Pioneer (Sasko) were leaders in the special maize meal category with 4 of their brands holding a substantial portion of the market share. In 1997 Pioneers (Sasko) super maize meal category had only 2% of the market share. To succeed in the super maize meal category Sasko needed to increase their market share by 20% so Sasko launched White 9|Page Sheena.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 category and within 20months White Star captured 10% of the super maize meal market share. White stars regional market share varied between 5% and 70% depending on the region.
Consumer/Customer Maize meal is a staple diet for the price sensitive consumer. Research confirmed that “mama knows her pap”, consumers have a consistent and uncompromising idea of what they expect from a quality maize meal. White star super maize meal needs to meet these standards of the quality conscious and brand loyal consumer. The low level of disposable income are more subjected to change should these attributes not be met.
Suppliers Pioneer (Sasko) purchased Tongaat mills and Amaize Co. to assist with the increase in production. Pioneer mills supplied Sasko with super maize meal. The production process is highly fragmented as one brand is produced at a number of different plants in different regions. Sasko relies heavily on other local mills production capacity and the ability to ensure consistent standard of quality.
Intermediaries Sales reps in each region compiled a list of 10 -20 key customers to stock the White Star brand. These retailers were their main focus, rationing the brand to limited stores will yield better results and consumer demand will pull products into the remaining outlets.
Middleman/Retailer Maize meal is an FMCG product, using the traditional channels. The distribution costs are high. From wholesaler to retailers such as Pick n Pay.
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MICRO-ENVIROMENT Target Market Primary target market White star target markets are urban or peri-urban females between the ages of 18 – 35, who fall under LSM 2, 3, 4.
POSITIONING White star competitors Iwisa and Ace held a strong position in the super maize meal market.
Brand Positioning In order to elevate the white star brand they needed to have a clear unique proposition and style 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 by purchasing white star super maize meal”, it matched consumer’s perception of what they perceive to be high quality super maize meal. The slogan is indirectly used to draw attention to the fact that White star was the only super maize meal with vitamin a. This was white stars unique brand proposition. At the time white star did not have an icon so the objective was to present white star brand personality.
White star synergetic campaign rouse to fame, the brand personality and unique positioning proposition was pivotal to white stars launch strategy in 1999 reflecting its competitive advantage and motivating the consumer.
PRODUCT White 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 meal cooks faster taste better and is softer with minimal black specs. White star is available in 1x10g, 1x12, 5kg package. White star is limited in its product range, the brand portfolio only consists of White Star Super Maize Meal, as it was easier to one brand.
Research approach contributed towards the success of the white star brand. The brand name, pack design and advertising campaign were a result of the respondents as they were consumers and could identify with the product. The product brand name: white star held positive connotations, and the “white” added a quality approval. The “star” resembled performance and excellence, one that may excel or go far.
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Traditional maize meal packaging with a modern design twist was incorporated. Simple design elements, that one can communicate with. The graphics illustrated a striking red, shooting star on a white background.
PRICE White Star super maize meal had to maintain a status quo and was priced marginally below the leading brand. White Star super maize meal wanted to be perceived as a priced product which targets LSM 2,3,4. super maize meal consumers. The lower – middle class disposable income groups.
The more refined the maize meal the higher the price. Maize meal is sub categorised, super maize meal is the product. Maize meal is a price sensitive market and escalating costs would be ed onto consumers. The substitutes available are affordable, should a consumer develop an attachment to White Star out of tradition then sensitivity to price changes, would result in more inelastic demand. Price is also a factor when looking at the supply chain. In 2002 the rapid increase in product was a result of erroneous market information regarding bad crops. However many other factors played equitable role such as bread price fixing.
PLACE White Star super maize meal follows supply value chain. From farmer to silos to miller to wholesaler 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 which many are recognized as informal retailer.
PROMOTION The product life cycle of white star launch strategy consisted of 3 phases. The campaign focused on the primary target market, women. The message transmitted to women that by purchasing White star she was making a “clever choice” for the real stars in her life, her family. 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.
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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 television Magazine. 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 ed 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.
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Personal Selling Sasko had a strong and consistent internal sales force that ed 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.”
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PART 2: SWOT ANALYSIS
SWOT ANALYSIS WEAKNESS
STENGTH Sasko Customer Centric approach indicates good reputation amongst Target market Share of market gained from 2% to 10% of super maize meal and held a overall 30% share of market in the maize meal category Technology that was invested into white star exceeds the product quality. Committed Employee (Brand file) Research and Development as well as an internal strategic department White star quality of super maize meal
Distribution and sales force is weak Ability to sustain market share nationally is poor. 5% - 7% imbalance in market share From region to region Narrow product range High cost of maize production Rely heavily on media communications with no actual research on the changing socio-trends. Even though White star meets the needs of the Target market it is still uncertain if they could meet the same needs during the tough times.
Competitive advantage of enriching super maize meal with Vitamin A
High cost of maize production
Priced marginally below the leading brand
Cultural stigma attached to maize meal in general
Target Market awareness of white star was initiated by a strong launch campaign.
Lack of creativity in communications
Target Market attitude towards white star indicated brand loyalty OPPORTUNITY
THREAT
Health Trends
Ace and Iwisa- brand loyalty is strong
Medium term investment in biodiesel-bio ethanol.
Competitors hold majority of market share
Brand Extension from 2002 into cereal or flavoured maize or healthier “light” maize.
Cost escalation impacts the target market- low disposable income
Increase Target Market
Generic super maize meal substitutes
Export to surrounding SADC countries.
Substitute maize meal category of cheaper alternative Bread, rice, oats
Demographic: black diamond’s emerging genertation into .urbanization
Increased regulations
Advancement in Genetics
Global Recession causing inflation
Using technology to expand database
Bad crop harvest for the season will impact the supply of super maize meal
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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 maize
PART 4: ASSUMPTIONS White star super maize meal has maintained their market share in a competitive growing market. The socio-cultural trends allow space for a larger market share. It is assumed that the 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 future 2008 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 vertical integration 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.
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PART 6: MARKETING STRATEGY
Target Market There are two target markets which exist for White Star. There is the B2C – Business to Customer and B2B – Business to Business. These target markets are the foundation for white 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. Demographics Age: 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/Africa Family 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.
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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 segmentation
Behaviour Characteristics Brand loyalty and image conscious customers. Business to Business The sales representative or key manager markets the white star product range to retailers 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.
POSITIONING Positioning Strategy The objective is to maintain the current brand positioning at the same time enhancing it with a new tag line that will appeal to both current and new target markets. White star is “the clever choice” has proved, worthy. With the changes in social trends and new emerging markets it is imperative that white star appeals to all segments. Tapping into the mind of the consumer to discover their aspirations and lifestyle in the urban world White star is still positioned 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 Preferences
Positioning statement To be the no 1 health maize meal brand. White star must be the “the clever choice” when it comes to maize meal.
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PRODUCT The white star brand now contains a variety of products to suit the changing markets. The product ranges all contain the highest quality super maize meal. Adapting to market changes white 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 Range
White star- super maize meal White Star super maize meal products are the clever healthier delicious energy packed super maize meal consumers can’t get enough of. It is a convenience product that can be eaten with or without a little tomato relish fish, meat or vegetable, a simple, easy & quick meal. White star maize meal combines an instant energy hit light, fluffy and smooth, texture with a moreish melt in the mouth buttery taste delivering a satisfying, reassuringly familiar white star experience. White star maize meal is rooted gratification leaving you with a feeling of 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 the new unique heavy duty poly packaging. White star super maize meal is healthy with your favourite 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 rice
White star Instant porridge White star instant porridge provides your children with a smart, start to the day. Deliciously flavored, 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 them perfect to carry around to school or family road trips. White instant porridge hot or cold milk or water to enjoy a great tasting filling meal anywhere any time. Instant porridge mix can also be drunk by adding 100ml extra liquid to the product.
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The range is easily recognisable with its distinctive easy to handle individual (10) sachets in a 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 : Papaya
White star vita shake Perfect for busy men and women, particularly on the move. All in one vita shake is a super fine maize base. Enriched with vitamin and minerals that are easily absorbed by the body. Ltaurine, guarana, caffeine, Panax ginseng and Ginkgo biloba clinically proven to enhance mental performance and boost energy. Provides a mind-body boost anytime, anywhere. Increase energy and improve mental clarity for better performance throughout the day. White star vita shake comes in 3 delicious fruit flavours. Produced by White star a brand you can trust 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 a matte 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 : Chocolate
The Value Chain Figure1.4 the value chain
Porters 5 Forces Figure 1.5 porters forces
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PRICE The price is dependent of supply and demand, but the product is positioned as a priced product with a marginal gap between the competitors. Research has shown in some regions there is no price sensitivity it’s all about status quo. The expense of the priced product is a result on the increase in extraction rates from 55% to 62,5% and recently 91%. The prices of the four main nodes in the food chain are the average producer price, the mill door price, the list price, and the consumer price. Table1.5 Price Structure From farm gate to retailer
PLACE The objective here is to grow market share and expose the new range to new markets. This can 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 cuisine
Vita 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,
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PROMOTION The overview objectives are to reach the new target market and increase awareness. Sustain current target market. Increase volumes and market share in the market. Each segment will have their own marcom strategy. Table 1.6 Detailed Marcom Summary
Media 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 ments 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 ments and Vita shake individual website. 2. Social media: Facebook, You Tube, ments
Direct 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 notifications
Place 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.
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Store Signage And Pop Displays: 1. Floor ments 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 : attached onto maize meal will be a porridge sample box 8. Near pack : attached onto porridge will be vita shake
Event 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 families
Personal 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.
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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.
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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
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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
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Table 1.4: Extraction rate of various maize meal types Source: Chamber of milling
Table1.5 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 istration, 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)
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Table 1.6: Basic White Star Marcom Strategy WHITE STAR Segments
Mama & Pap
Smart star
Black Diamond
Target market
18-35
5+
21-45
Lsm
1-6
1-7
5-7
Slogan
Clever choice
Clever choice
Clever choice
Tagline
Move to the taste
Smart champion
Product
Super maize meal
Instant porridge 1
Vita 1
Braaipap
2
2
Rice
3
3
MEDIA ADVERTISING Television Radio
SABC 1,2,3,eTV, DSTV Ukhozi FM and Umhlobo Wenene FM
Ukhozi,5FM,Metro fm,
PRINT ADVERTISING Magazine
Bono, Fairlady
Airport magazine, Cosmo,Sport
INTERACTIVE ADVERTISING Online advertising
Website/Google adsetc
Cell phone
24%-96% PLACE ADVERTISING
Billboards Transit ads
Schools
High R/F area
City Transport area
Airport
STORE SIGNAGE AND POP ADVERTISING In store Floor ads
High traffic area only limited to region
Pester Power
High traffic area only
Retailers
limited to region only
Pop display TRADE AND CONSUMER ORIENTATED Sampling Bonus Pack Shelf delivered coupon
Schools, churches
Magazines ,In-store Samp & maize
R5.00 limited to region
s
R10.00 limited to region Free with purchase eg: Lunch bag Near pack
EVENT MARKETING AND SPONSORSHIP Festivals
Community festival Fun Day Festival – promote braaipap
Sponsor
Soccer team locals or player. PUBLIC RELATIONS
Community
Educational school prefab with meals. 100 white star Low cost housing development
development Graduate programme
for a community. Vision: appendix
Bursaries and Scholarships. Limited to disadvantaged families. Personal selling
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.
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FIGURES Figure 1.1: Gross value for the top ten agricultural products for 2002/03 Figure 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 & 2002-2006 Figure 1.4 The Value Chain Figure 1.5 Porters 5 forces
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Figure 1.1: Gross value for the top ten agricultural products for 2002/03
Figure 1.2: The white maize spot price, the super maize meal retail price and the miller to-retail margin.
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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
soft light
hunger energy
Map 2002-2006
fine smooth
Vitamin
taste
cooks easy fast
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WHITE STAR CAMPAIGN
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WHITE STAR MAIZE RANGE STORE PROMO AND POP ADVERTISING TRADE AND CONSUMER ORIENTATED
PRINT ADVERTISING INTERACTIVE ADVERTISING PLACE ADVERTISING
Symbolism
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WHITE STAR INSTANT PORRIDGE RANGE Research & Development TRADE AND CONSUMER ORIENTATED - SAMPLING PUBLIC RELATIONS
CONCEPTS
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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
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1|Page Sheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
EXECUTIVE SUMMARY
Pioneer Foods dates back to 1920. De Boeren Ko-Operatieve Molen Maatschappij Beperkt"-BOKOMO, was a co-operative milling business in the 1920’s, which was associated with the development of Die Suid-Afrikaanse Ko-operatiewe Graanmaatskappy 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 a strong contender in the primary market for wheat products and in 1998 were the leaders in the special maize meal category.
Vertical Growth has proven favourable to some extent; in such a competing industry they have experienced both losses and success. The most important requirement in this industry is to respond to demands. Sasko has taken a leap of faith, in launching a new super maize meal. White Star was launched in 1999 as a top-end super maize meal, competing with the maize meal brands in South Africa. Positioned as the first fortified maize meal (with added Vitamin A), the brand quickly took to the sky and showed an incredible growth rate.
In 2002 White Star, will become the most successful brand within its category. White star has become a way of life for the people of South Africa. To grow market share in a competitive industry white star needs to extend their brand portfolio. Differentiating it 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 the economic sector of South Africa. Added to this is the threat of the consistent flux of the economy and government legislation regarding biodiesel. White star must grow its market share by extending its portfolio into new segments, offering the segments added value, while ensuring that the product remains of a high quality
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T A B L E
O F
C O N T E N T
Executive Summary
2
Part 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
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Part 2: Swot Analysis
15
Part 3: Key Issues
16
Part 4: Assumptions
16
Part 5: Marketing Objectives
16
Part 6: Marketing Strategy Target Market
17
Positioning
18
Product Strategy
19
Price Strategy
21
Place Strategy
21
Promotion Strategy
22
Part 7: Action Plan
24
Part 8: Budget
25
Part 9: Controls
26
Part 10: Annexure A Tables
27
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
28 28 28 29 29 30
Part 11: Annexure B Tables Figure 1.1: Gross value for the top ten agricultural products for 2002/03 Figure 1.2: White maize the super maize meal retail price Figure 1.3: Positioning Map Comparing Consumer Preference Figure 1.4 The Value Chain Figure 1.5 Porters 5 forces
32 32 33 34 35
Part 12: Annexure C Campaign concept-Illustration
Part 12: References
37
39
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MACRO ENVIROMENT Political/Legal Situation In 1997 the Maize Industry deregulated in South Africa, report by Food Price Monitoring Committee, (2003) and Traub and Jayne, (2004) showed that the maize milling/retail margins in the formal market have been rising in recent years after maize market deregulation. Deregulation in the agricultural sector caused shifts in the geographic patterns of white and yellow maize production. (Table 1.1: White and yellow maize: Geographical distribution of production) Source: Crop Estimates Committee, 2003
Legislation 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 three children suffer from a lack of Vitamin A. It is now statutory to add both Vitamins.
Economic Situation Before 1995, South Africa had a controlled marketing system which restricted informal and unlicensed traders and millers. Since the implementation of the deregulation policy the price of maize increased gradually up to 1999/2000.
Since 1997, product prices have been determined under a free market condition and are formally traded on SAFEX. One of the main flaws of liberation is that consumers will experience price peaks. The flux in R/ton from 1997 to 2000 was a difference of R70.00/ton from the real white maize producers. (Abstract of Agricultural Statistics, SAFEX) Taking into the inflation 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 ever increasing margins. This would impact significantly on low-income consumers who spend up to 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 was the largest contributor to the GDP. Food prices rapidly increased, for the first time in history 1kg of maize was more expensive than the same quantity of flour. This sharp increase in the 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 producer prices increased from 2001, R671.50/ton to 2002 R1158.20/ton. (Abstract of Agricultural Statistics, SAFEX) This
is evident in Table 1.2.
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South Africa’s lower lifestyle standard measurement (LSM) was affected. The total percentage 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 Situation South Africa is rich in its cross-cultural assimilations that capture some of the positive and exciting features of the social, cultural, and ethnic diversity.
The minimal dietary requirement for the black South African is maize meal. The diverse maize meal market is attributable to the changing socio-cultural influences that differ regionally in addition to the economic situation.
Super maize consumer values are changing and demand high quality maize that is high in energy, cooks faster, softer and enriched with vitamins when compared to the unsifted maize. 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 their family. Social and financial pressure impacts when commodity prices like maize meal increases, affecting the ability to sustain status quo.
The changing roles of families and working women within the middle class Black South African is having a positive impact on their society since. Busy working class women are still pressured to produce a meal after work, literally poverty stricken of time. Super maize meal attributes complete these variables by cooking faster quicker and still serves the same taste and enriched vitamins and energy for a family.
The changes in socio-cultural trends in the South African market have been influenced by many 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 South African core values and beliefs. In the Black African culture one is expected to be larger than their standard body frame. This is a cultural value that was ed down from generation and reinforced by others who adhered to the core beliefs and value system. The understanding was should a black African female appear slim she was considered a shame to 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. Christopher P. Szabo)
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The impact of AIDS today on the demographic population will have an impact on the consumption 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 to psychological needs this is the influence of the western world and as a result we get the evolving Black Diamonds. Eating habits have been curbed and diets, changing. The shift in staple grain crops to a more diverse diet of eggs and meat indicated the influential impact of the western culture health trends on generation y in 2005. The need for self-fulfilment will become a priority for generation M. The growing social trend leaped from material to nonmaterial accomplishments. Having control over their lives and making decisions. Selfconscious, new social interaction with other cultures allows for secondary thoughts this new middle class society will shape the tastes and preferences. Free thinking, western culture and women empowerment are some factors that shape our country.
Technological The industry shifted from labour intensive to capital intensive, highly mechanised and automated 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 a single kernel without compromising on quality and reducing black spec. Other forms of scientific technology that have captured many is the genetic mutation of maize. (Table 1.3: Market share of white maize millers) Source: Competition Commission, unpublished information
Enviroment Negative impacts on maize crop failure in regions can cause major effects across the board as 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 the study of maize has led to assist in the bio diversity of emerging trends such as biodiesel. The female maize flower is used as an alternative medicine in herbal supplements. The chemical composition of maize starch allows us to make plastic, fabrics, adhesives and many other chemical based products. Direct plant protection precautions for maize are, essentially, aimed at weed control.
International As maize is an internationally traded commodity, it is also subjected to the international market conditions. The demand and supply conditions of maize in the international market influence domestic prices directly.
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Market Industry Maize is the most important grain crop in South Africa, being both the major feed grain and the staple food for the majority of the South African population. In 2002/03 maize was responsible for the largest contribution of 13.78% to the total gross value of the agricultural production with a gross value of R9.5 billion.
(Figure 1.1: Gross value for the top ten
agricultural products for 2002/03)
The South African maize industry is also the largest maize industry in Africa and ranked in the top 10 maize producers in the world. The major production areas in 2002 were situated in the Free State, North- West and Mpumalanga Provinces. The average local consumption requirements are estimated at 7.4 million tonnes. This can be 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 this 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 maize meal and this percentage is increasing. Special maize meal sales make up 30% of total sales.
Primary Industry The geographical distribution of white maize increased in the Northern Cape. In this area mainly 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 meal market varies distinctly from one region to the next. To succeed in the staple foods category it 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 South Africa is estimated at 17.5 million tonnes, 85% of which is owned by 22 silo owners. Most of this storage capacity is also located in the provinces in the northern parts of the country.
Secondary Industry According to the National Association of Maize Millers, the top 4 companies in this 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-meal
for human consumption, for animal feed or for maize starch.
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Although an extraction rate of 62.5% is reported for super maize meal, some industry specialists 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 milling
The effect of the expensive maize bought during the first part of 2002 impacted on the industry towards the middle of 2002, as the spread between retailer and miller became negative. Millers could not increase retail prices any further they had high costs for raw material. This meant large losses in the maize milling industry. Volume of maize milled declined 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 Sector The tertiary sector consists of traders, retailers and transporters. Traders move the produce to 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 services for the distribution of maize products from the miller to the final consumer. Transport helps to move the maize from the farmers to the silo owner, from the silo owner to the miller and from the intermediaries to the final consumers.
Competitor The maize meal market is increasingly competitive. The best-selling super maize meal products are Iwisa and Ace. Premier foods and tiger milling were the leaders in the white maize meal market with an extraction rate of 55%-62,5%, before Sasko entered the competitive super maize market.
The competitive advantage Sasko had was the additional Vitamin A enriched white maize meal. Sasko customer centric approach had also led them to understand the importance of the black specs per kilogram and vitamin enriched maize meal. The white star slogan “the clever choice” played a significant role against their competitors. White Star is entering a commodity market, making the job of differentiating the white star from its competitor brands difficult. In 1998 Pioneer (Sasko) were leaders in the special maize meal category with 4 of their brands holding a substantial portion of the market share. In 1997 Pioneers (Sasko) super maize meal category had only 2% of the market share. To succeed in the super maize meal category Sasko needed to increase their market share by 20% so Sasko launched White 9|Page Sheena.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 category and within 20months White Star captured 10% of the super maize meal market share. White stars regional market share varied between 5% and 70% depending on the region.
Consumer/Customer Maize meal is a staple diet for the price sensitive consumer. Research confirmed that “mama knows her pap”, consumers have a consistent and uncompromising idea of what they expect from a quality maize meal. White star super maize meal needs to meet these standards of the quality conscious and brand loyal consumer. The low level of disposable income are more subjected to change should these attributes not be met.
Suppliers Pioneer (Sasko) purchased Tongaat mills and Amaize Co. to assist with the increase in production. Pioneer mills supplied Sasko with super maize meal. The production process is highly fragmented as one brand is produced at a number of different plants in different regions. Sasko relies heavily on other local mills production capacity and the ability to ensure consistent standard of quality.
Intermediaries Sales reps in each region compiled a list of 10 -20 key customers to stock the White Star brand. These retailers were their main focus, rationing the brand to limited stores will yield better results and consumer demand will pull products into the remaining outlets.
Middleman/Retailer Maize meal is an FMCG product, using the traditional channels. The distribution costs are high. From wholesaler to retailers such as Pick n Pay.
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MICRO-ENVIROMENT Target Market Primary target market White star target markets are urban or peri-urban females between the ages of 18 – 35, who fall under LSM 2, 3, 4.
POSITIONING White star competitors Iwisa and Ace held a strong position in the super maize meal market.
Brand Positioning In order to elevate the white star brand they needed to have a clear unique proposition and style 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 by purchasing white star super maize meal”, it matched consumer’s perception of what they perceive to be high quality super maize meal. The slogan is indirectly used to draw attention to the fact that White star was the only super maize meal with vitamin a. This was white stars unique brand proposition. At the time white star did not have an icon so the objective was to present white star brand personality.
White star synergetic campaign rouse to fame, the brand personality and unique positioning proposition was pivotal to white stars launch strategy in 1999 reflecting its competitive advantage and motivating the consumer.
PRODUCT White 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 meal cooks faster taste better and is softer with minimal black specs. White star is available in 1x10g, 1x12, 5kg package. White star is limited in its product range, the brand portfolio only consists of White Star Super Maize Meal, as it was easier to one brand.
Research approach contributed towards the success of the white star brand. The brand name, pack design and advertising campaign were a result of the respondents as they were consumers and could identify with the product. The product brand name: white star held positive connotations, and the “white” added a quality approval. The “star” resembled performance and excellence, one that may excel or go far.
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Traditional maize meal packaging with a modern design twist was incorporated. Simple design elements, that one can communicate with. The graphics illustrated a striking red, shooting star on a white background.
PRICE White Star super maize meal had to maintain a status quo and was priced marginally below the leading brand. White Star super maize meal wanted to be perceived as a priced product which targets LSM 2,3,4. super maize meal consumers. The lower – middle class disposable income groups.
The more refined the maize meal the higher the price. Maize meal is sub categorised, super maize meal is the product. Maize meal is a price sensitive market and escalating costs would be ed onto consumers. The substitutes available are affordable, should a consumer develop an attachment to White Star out of tradition then sensitivity to price changes, would result in more inelastic demand. Price is also a factor when looking at the supply chain. In 2002 the rapid increase in product was a result of erroneous market information regarding bad crops. However many other factors played equitable role such as bread price fixing.
PLACE White Star super maize meal follows supply value chain. From farmer to silos to miller to wholesaler 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 which many are recognized as informal retailer.
PROMOTION The product life cycle of white star launch strategy consisted of 3 phases. The campaign focused on the primary target market, women. The message transmitted to women that by purchasing White star she was making a “clever choice” for the real stars in her life, her family. 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.
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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 television Magazine. 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 ed 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 e Sheena.Indhul IMM-GSM: Marketing Strategy M4 Case Study
Personal Selling Sasko had a strong and consistent internal sales force that ed 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.”
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PART 2: SWOT ANALYSIS
SWOT ANALYSIS WEAKNESS
STENGTH Sasko Customer Centric approach indicates good reputation amongst Target market Share of market gained from 2% to 10% of super maize meal and held a overall 30% share of market in the maize meal category Technology that was invested into white star exceeds the product quality. Committed Employee (Brand file) Research and Development as well as an internal strategic department White star quality of super maize meal
Distribution and sales force is weak Ability to sustain market share nationally is poor. 5% - 7% imbalance in market share From region to region Narrow product range High cost of maize production Rely heavily on media communications with no actual research on the changing socio-trends. Even though White star meets the needs of the Target market it is still uncertain if they could meet the same needs during the tough times.
Competitive advantage of enriching super maize meal with Vitamin A
High cost of maize production
Priced marginally below the leading brand
Cultural stigma attached to maize meal in general
Target Market awareness of white star was initiated by a strong launch campaign.
Lack of creativity in communications
Target Market attitude towards white star indicated brand loyalty OPPORTUNITY
THREAT
Health Trends
Ace and Iwisa- brand loyalty is strong
Medium term investment in biodiesel-bio ethanol.
Competitors hold majority of market share
Brand Extension from 2002 into cereal or flavoured maize or healthier “light” maize.
Cost escalation impacts the target market- low disposable income
Increase Target Market
Generic super maize meal substitutes
Export to surrounding SADC countries.
Substitute maize meal category of cheaper alternative Bread, rice, oats
Demographic: black diamond’s emerging genertation into .urbanization
Increased regulations
Advancement in Genetics
Global Recession causing inflation
Using technology to expand database
Bad crop harvest for the season will impact the supply of 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 maize
PART 4: ASSUMPTIONS White star super maize meal has maintained their market share in a competitive growing market. The socio-cultural trends allow space for a larger market share. It is assumed that the 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 future 2008 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 vertical integration 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.
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PART 6: MARKETING STRATEGY
Target Market There are two target markets which exist for White Star. There is the B2C – Business to Customer and B2B – Business to Business. These target markets are the foundation for white 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. Demographics Age: 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/Africa Family 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.
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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 segmentation
Behaviour Characteristics Brand loyalty and image conscious customers. Business to Business The sales representative or key manager markets the white star product range to retailers 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.
POSITIONING Positioning Strategy The objective is to maintain the current brand positioning at the same time enhancing it with a new tag line that will appeal to both current and new target markets. White star is “the clever choice” has proved, worthy. With the changes in social trends and new emerging markets it is imperative that white star appeals to all segments. Tapping into the mind of the consumer to discover their aspirations and lifestyle in the urban world White star is still positioned 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 Preferences
Positioning statement To be the no 1 health maize meal brand. White star must be the “the clever choice” when it comes to maize meal.
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PRODUCT The white star brand now contains a variety of products to suit the changing markets. The product ranges all contain the highest quality super maize meal. Adapting to market changes white 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 Range
White star- super maize meal White Star super maize meal products are the clever healthier delicious energy packed super maize meal consumers can’t get enough of. It is a convenience product that can be eaten with or without a little tomato relish fish, meat or vegetable, a simple, easy & quick meal. White star maize meal combines an instant energy hit light, fluffy and smooth, texture with a moreish melt in the mouth buttery taste delivering a satisfying, reassuringly familiar white star experience. White star maize meal is rooted gratification leaving you with a feeling of 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 the new unique heavy duty poly packaging. White star super maize meal is healthy with your favourite 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 rice
White star Instant porridge White star instant porridge provides your children with a smart, start to the day. Deliciously flavored, 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 them perfect to carry around to school or family road trips. White instant porridge hot or cold milk or water to enjoy a great tasting filling meal anywhere any time. Instant porridge mix can also be drunk by adding 100ml extra liquid to the product.
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The range is easily recognisable with its distinctive easy to handle individual (10) sachets in a 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 : Papaya
White star vita shake Perfect for busy men and women, particularly on the move. All in one vita shake is a super fine maize base. Enriched with vitamin and minerals that are easily absorbed by the body. Ltaurine, guarana, caffeine, Panax ginseng and Ginkgo biloba clinically proven to enhance mental performance and boost energy. Provides a mind-body boost anytime, anywhere. Increase energy and improve mental clarity for better performance throughout the day. White star vita shake comes in 3 delicious fruit flavours. Produced by White star a brand you can trust 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 a matte 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 : Chocolate
The Value Chain Figure1.4 the value chain
Porters 5 Forces Figure 1.5 porters forces
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PRICE The price is dependent of supply and demand, but the product is positioned as a priced product with a marginal gap between the competitors. Research has shown in some regions there is no price sensitivity it’s all about status quo. The expense of the priced product is a result on the increase in extraction rates from 55% to 62,5% and recently 91%. The prices of the four main nodes in the food chain are the average producer price, the mill door price, the list price, and the consumer price. Table1.5 Price Structure From farm gate to retailer
PLACE The objective here is to grow market share and expose the new range to new markets. This can 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 cuisine
Vita 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,
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PROMOTION The overview objectives are to reach the new target market and increase awareness. Sustain current target market. Increase volumes and market share in the market. Each segment will have their own marcom strategy. Table 1.6 Detailed Marcom Summary
Media 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 ments 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 ments and Vita shake individual website. 2. Social media: Facebook, You Tube, ments
Direct 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 notifications
Place 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.
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Store Signage And Pop Displays: 1. Floor ments 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 : attached onto maize meal will be a porridge sample box 8. Near pack : attached onto porridge will be vita shake
Event 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 families
Personal 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.
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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.
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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
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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
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Table 1.4: Extraction rate of various maize meal types Source: Chamber of milling
Table1.5 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 istration, 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)
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Table 1.6: Basic White Star Marcom Strategy WHITE STAR Segments
Mama & Pap
Smart star
Black Diamond
Target market
18-35
5+
21-45
Lsm
1-6
1-7
5-7
Slogan
Clever choice
Clever choice
Clever choice
Tagline
Move to the taste
Smart champion
Product
Super maize meal
Instant porridge 1
Vita 1
Braaipap
2
2
Rice
3
3
MEDIA ADVERTISING Television Radio
SABC 1,2,3,eTV, DSTV Ukhozi FM and Umhlobo Wenene FM
Ukhozi,5FM,Metro fm,
PRINT ADVERTISING Magazine
Bono, Fairlady
Airport magazine, Cosmo,Sport
INTERACTIVE ADVERTISING Online advertising
Website/Google adsetc
Cell phone
24%-96% PLACE ADVERTISING
Billboards Transit ads
Schools
High R/F area
City Transport area
Airport
STORE SIGNAGE AND POP ADVERTISING In store Floor ads
High traffic area only limited to region
Pester Power
High traffic area only
Retailers
limited to region only
Pop display TRADE AND CONSUMER ORIENTATED Sampling Bonus Pack Shelf delivered coupon
Schools, churches
Magazines ,In-store Samp & maize
R5.00 limited to region
s
R10.00 limited to region Free with purchase eg: Lunch bag Near pack
EVENT MARKETING AND SPONSORSHIP Festivals
Community festival Fun Day Festival – promote braaipap
Sponsor
Soccer team locals or player. PUBLIC RELATIONS
Community
Educational school prefab with meals. 100 white star Low cost housing development
development Graduate programme
for a community. Vision: appendix
Bursaries and Scholarships. Limited to disadvantaged families. Personal selling
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.
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FIGURES Figure 1.1: Gross value for the top ten agricultural products for 2002/03 Figure 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 & 2002-2006 Figure 1.4 The Value Chain Figure 1.5 Porters 5 forces
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Figure 1.1: Gross value for the top ten agricultural products for 2002/03
Figure 1.2: The white maize spot price, the super maize meal retail price and the miller to-retail margin.
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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
soft light
hunger energy
Map 2002-2006
fine smooth
Vitamin
taste
cooks easy fast
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WHITE STAR CAMPAIGN
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WHITE STAR MAIZE RANGE STORE PROMO AND POP ADVERTISING TRADE AND CONSUMER ORIENTATED
PRINT ADVERTISING INTERACTIVE ADVERTISING PLACE ADVERTISING
Symbolism
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WHITE STAR INSTANT PORRIDGE RANGE Research & Development TRADE AND CONSUMER ORIENTATED - SAMPLING PUBLIC RELATIONS
CONCEPTS
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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
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