Lotus in South Africa

Group 12:Cornelis SilkeDuckerts GuillaumeHvizdalova Daria Kowalik ArkadiuszSchepers Cédric

External analysis

Internal analysis

Marketing strategy

Marketing mix

Entry strategy

Legal

Political

Distribution

EconomicalTechnological

Social

Cultural

73/179 Ease of Doing BusinessNo legal barriers for foreign players

Economic reformsHigh power distanceRacial segregation legacy

40% of sales from traditional trade (kiosks etc.) 5 major retailers creating culture of formal shopping

Largest African economyExpected growth rate of 25% in next 10 yearsOpportunities for FDI

Largest African economyExpected growth rate of 25% in next 10 yearsOpportunities for FDI

Multinational country Status symbolsRespect to traditionsShort-term orientationIndulgence

Arising middle classHealth consciousness

CONSUMER PERSONA

Consumes savory and sweet snack products of a high standard

throughout the daySets family consumption patterns

Not ready to spend time in search of the cheapest price

Experimental shopper, frequently takes the decisions at the point of

saleTends to equate popular brands and

qualityeducated in terms of reading food

labels and understanding the nutritional value of the products

Sub-Saharan Africa0

5

10

15

20

25

30

% of population in each segment, grocery exmaple

Low-price shoppers Local quality shoppers Brand-loyal

Experimental Fresh lovers

• consumers choose products in general in South Africa depends mainly on two factors: the reputation of the brand (the fact that it is known, familiar or trusted) and the affordability of the product. Other factors include the possibility to try before buying, or the recommendations by friends or shop owners. We noticed that the role of advertising is quite low in the choice of products.

Consumer persona

Internal analysis

Strengths Weaknessess

➲ Lower salaries➲ Strong csr strategy -> more easy to convince local

governement that there can be beneficial gains➲ Make profit so they can afford to make mistakes

➲ Ingredients are locally available - A lot of local sugar farmers (mostly women) so is also

good for the csr strategy of the company

➲ Financial capacity➲ No existing distribution network

➲ Strong local competition

Opportunities Threats

Market entry

➲ Foreign production: - contracts with local partners for manufacturing- All ingredients are locally available- cheap (low investment, low wages, …)- auditors to maintain high standards in quality and safety

(avoid scandals) - fits perfectly in the csr- strategy - South Africans are proud of their local products

➲ Distributed through the big retailers➲ Partnership with local logistic partner

“Belgian high-quality food with local ingredients!”

Additional opportunities