American Interests United: Double-Q's introduction to the South African Market

Arielle D.

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American Interests United: Double-Q's introduction to the South African Market

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Abstract

As the management team of American Interests United (AIU), we are interested in expanding to new markets with our popular packaged food line. After extensive research, we have been able to discover that South Africa is a rapidly growing market that will be an extremely profitable venue in which to sell our packaged food products if slight modifications are made to our product and marketing techniques. In this proposal, we will review South Africa's marketing environment and certain cultural concerns that may affect the profitability of our product. We will introduce our product line and describe in greater detail the changes we will need to make in both product and image to produce an adequate response in the South African population. Our proposed target market and entry strategy will also be discussed, including the finer points of why these particular strategies will be chosen. We believe that the expansion of AIU to the South African packaged foods market will be an extremely profitable venture, and will detail the possibilities further in this proposal.

Introduction.
1. Interested in expanding to new markets.
The current marketing environment in South Africa.
1. South Africa - ranked among the top 30 countries worldwide for the ease of doing business.
2. Extremely economical choice for the expansion of American businesses.
3. Considerable lifestyle changes for many citizens from the changes which have recently occurred.
Nutritious food - a greater concern among South Africans than in the U.S.
A South African cultural concern - the astronomical levels of crime in urban areas.
Summary and conclusion.
1. Double-Q Foods.
2. AIU's target market for Double-Q Foods.
3. Brand - is important to the South African consumer.
4. The South African newspaper and magazine industries.

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[...] However, one South African woman, who maintains a website about the importance of recycling, urges fellow citizens to buy only those convenience products which are packaged in recyclable materials, and also to avoid purchasing products with excess, unnecessary packaging (Collins, J.). A business planning to sell convenience foods in this type of environment should choose packaging with great attention to the avoidance of waste and use of recyclable materials in order to prevent the environmentally conscious consumer from avoiding purchase of a product line. [...]

[...] In conclusion, we believe that due to the steadily growing South African economy and the need South African working mothers have for practical, healthy, convenient, inexpensive food, Double-Q Foods will be a very successful branch of American Interests United. We plan to make a large advertising investment to achieve brand equity in the South African community, and believe that we should be extremely profitable within a year of establishment. References Bickford, R., & Mabiletsa, P. (2006). South Africa, Republic of, Food and Agricultural Import Regulations and Standards, Country Report Retrieved April from Global Agriculture Information Network. [...]

[...] Collins, J. (2001). War on Waste. Retrieved April from http://www.botany.uwc.ac.za/Envfacts/facts/waste.htm Crime in South Africa. (2007) Retrieved April from Wikipedia. Web site: http://en.wikipedia.org/wiki/Crime_in_South_Africa History of South Africa in the apartheid era. (2007). Retrieved April from Wikipedia. Web site: http://en.wikipedia.org/wiki/Apartheid HIV/AIDS in South Africa. (2007). Retrieved April from Wikipedia. Web site: http://en.wikipedia.org/wiki/HIV/AIDS_in_South_Africa Labeling and Consumer Protection. (1997). Retrieved April from USDA.gov. Web site: http://www.fsis.usda.gov/OPPDE/larc/Claims/Organic_Claims.htm Labeling and [...]

[...] Due to the increasing value South Africans place on recyclable materials, in addition to the fact that many do not own or have access to a refrigerator or freezer, all Double-Q products will be packaged in a cardboard box which can be stored at room temperature. The individual boxes will contain the main dish, such as pasta or dehydrated potatoes, and will include separate, heavyweight paper or plastic pouches containing dehydrated meat and/or vegetables, and powdered sauces that can be created with milk or water. [...]

[...] Because we are marketing to women with little disposable income, our product will need to be affordable for those in the lower echelons of South African society. This is an important factor that was the focus of much consideration when creating our market entrance plan. We had two options in consideration for the manufacturing location of our Double-Q Foods line. The first was to add Double-Q to our manufacturing processes in the U.S., and to then export the product to South Africa. [...]

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