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BUSINESS PRESENTATION OF AFRIFRESH INTENDED OPERATIONS IN ASSOCIATION WITH AMTA Presentation index AFRIFRESH ABOUT AFRIFRESH ………………..…….3 BUSINESS DEVELOPMENT ………….…12 DEVELOPING AN EXPORT ……………………..24 MISSION STATEMENT ……………………..…….4 TECHNICAL SUPPORT …………………..14 QUALITY ASSESSMENT ………………………….25 VISION STATEMENT …………………………….…5 MEET THE TEAM ………………………....15 ANGANGING .………………………………………..29 BUSINESS CULTURE AND VALUES …………..6 PREPACKAGING PRODUCTS ………....17 SALES PROJECTIONS …..………………………...30 COMPANY VALUES ………………………………..7 PRODUCTS …………………….…………...18 COORPORATE SOCIAL .…………………………..31 BASIC OVERVIEW ………………………………....8 LOGISTICS SUPPORT …………………….21 CONCLUSION ………………………………………..32 7 P’s OF MARKETING …………………………..10 STORAGE ……………………………………..22 THE LESSONS DRAWN ………………………...11 POSITIONING ……………………………...23 ABOUT AFRIFRESH (PTY) LTD BACKGROU ND OF AFRIFRESH 3 Afrifresh is a Namibian based company owned by Mr. Tarah Shaanika (Namibian), Mr. Robby Amadhila (Namibian) and Mr. Ricky Pillay (South African). The company will be assisted by young professionals and entrepreneurs owing to increase focus on empowerment. The entity is driven by the need to take advantage of opportunities created by the Amta (Agro-Marketing & Trade Agency) for the upliftment of the fresh produce industry. We are also motivated by a program of Governments Black Economic empowerment to ensure that the fresh produce industry is decentralized and the historically disadvantaged play a pivotal role in economic distribution of wealth of the country . The Afrifresh entity was formed in 2016. MISSION STATEMENT MISSION STATEMENT To provide high quality service and affordable products to our consumers by supplying products and developing innovative, efficient and agricultural solutions to our farmers that improve the general welfare of our buyers and farmers and at the same time supplying products which are within the affordability of all the consumers in the country. 4 VISION STATEMENT VISION STATEMENT To be first in providing unbeatable products offering and customer satisfaction in fresh agricultural products in the market, by carrying out deep research through understanding our customer’s and farmer’s needs. 5 BUSINESS CULTURE AND VALUES BUSINESS CULTURE AND VALUES Our business is guided by professionalism and good corporate governance code of conduct. 6 COMPANY VALUES Our operational and management structures of the entity are guided by several key values listed below: 7 BASIC OVERVIEW OF OUR AMA MARKETING OPERATIONS a) Our marketing covers the process of communicating the value of a product or service to customers, for the purpose of selling that product or service. We intend establishing sound network capital with corporate executives of chain stores, department of Agriculture and farmers unions. b)We intend having agreements with informal traders as potential buyers with a capital base. Our primary focus is to target emerging farmers to break the impervious decades of old established intergenerational legacy of the established farmers and agents and further build business relationship with established farmers. We envisage supplying major wholesalers and we are further exploring global markets. We intend bringing business by sourcing and selling products to direct buyers like retailers and wholesalers and also by delivering new products to potential buyers at Amta. We will be trading in various agricultural commodities mainly potatoes, tomatoes & onions, fruits and vegetables. We also identify unique products that provide nutritional value to consumers at affordable prices that can eradicate poverty and malnutrition in the country. c) Afrifresh will be positioned as a unique marketing agent. We’ll pay more attention to pricing, quality of products, packaging and logistics. 8 BASIC OVERVIEW OF OUR AMA MARKETING OPERATIONS d) Our marketing looks at all the organizational functions and a set of processes for creating, delivering and communicating value to customers and customer relationship management that also benefits the organization. Our marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer behaviour and providing superior customer value. From a societal point of view, our marketing is the link between a society's material requirements and its economic patterns of response. We always make sure that our marketing satisfies these needs and wants through an exchange processes and building long term relationships. e) At AMA we desire to move with the current marketing management concepts & trends so as to remain competitive. We have taken note of modern technology as a competitive tool of mixed marketing strategy, which include cost effective advertising like, word of mouth,community electronic and the print media, website, twitter, Facebook,apps and sms. This will help us to keep in touch with our clients and thereby increasing our market niche. We have noted that if any of the 4Ps were problematic or were not in the marketing factor of the business, the business could be in trouble and other companies may appear in the surroundings of the business, so the consumer demand on its products will decrease. However, in recent years’ service marketing has widened the domains to be considered, contributing to the 7P's of marketing in total and we have moved with the current trends. 9 7 P’s OF MARKETING 10 Some qualifications or caveats for customer focus exist. They do not invalidate or contradict the principle of customer focus; rather, they simply add extra dimensions of awareness and caution to it. THE LESSONS DRAWN FROM THIS WORK INCLUDE: 11 a) Taking customer focus with a grain of salt, treating it as only a subset of one's corporate strategy rather than the sole driving factor. This means looking beyond the current-state of customer focus to predict what customers will be demanding some years in the future, even if they themselves discount the prediction. b) Pursuing new markets (thus new value networks) when they are still in a commercially inferior or unattractive state, simply because their potential to grow and intersect with established markets and value networks looks like a likely bet. This may involve buying stakes in the stock of smaller firms, acquiring them outright, or incubating small, financially distinct units within one's organization to compete against them. OUR BUSINESS DEVELOPMENT & MARKETING STRATEGIES AT AFRIFRESH MARKET AGENCY ENCOMPASS THE FOLLOWING: (A) PROMOTION Our promotion encompasses everyday aspect of: packaging,advertising,promotional strategy,personal selling,public relations,media,message,budget training,sales methodology and sales people.Our promotions may use small items such as these or contests to induce customers to engage with brand or product (B) PRICE We will advise our clients on trading price in the market. We will therefore, check that prices of products and services are appropriate both to the reality of the market and the cost of delivering them. The following information is provided under prices: OUR BUSINESS DEVELOPMENT List price, Wholesale price, Retail price, Special Discounts, Early payments, Discounts volume, Discounts Allowances, Seasonal pricing, Bundling, Financing, Lease options 12 13 OUR BUSINESS DEVELOPMENT & MARKETING STRATEGIES AT AFRIFRESH MARKET AGENCY ENCOMPASS THE FOLLOWING: We at AMA charge a reasonable nominal fee of 15% (neg) on total sales generated and Amta takes 3,5% (neg) of total gross sales. Our charges are negotiable, very competitive and affordable. Most of our clients will agree that our charges commensurate with the services delivery we intend offering. We will also guarantee our farmers a good profit sharing return in the event that there Product fetches a better price than expected, in the market. Every deal is made in a transparent way and according to our sound business ethics principles, no extra profits that are due to the farmer are retained by the company without informing the farmer in this regard. 14 TECHNICAL SUPPORT & MARKETING EXPERTISE (PEOPLE): We intend to have a dedicated marketing team who have the technical expertise. We have a technical support & marketing team who have vast experience in e-business and the agricultural sector. Marketing of agricultural products has been one of the challenges of former farmers. Without proper marketing of their products most of them can perish before they can get to the consumer. Other farmers are also at a great risk of losing on their return on investment earnings (ROI) when they deal with bogus agents who charge exorbitant fees. Our marketing team process includes selecting, recruiting, hiring, and retaining the people who will do the job that needs to be done is among the most important parts of business. We intend hiring the following competent team and the team has got a responsibility of making sure that our operations are run smoothly. MEET THE TEAM WHO ARE BEHIND THE SCENES AFRIFRESH MARKET AGENT Our team will include the following personnel : Robby Amadhila Director 16 Ricky Pillay Tarah Shaanika Director Director Including : Receptionist, Order takers, Supervisors, Service people, Sales Clerks, Sales force, Delivery Drivers, Qualified Managers, Complaints Department, Accounting & Billing, Warrant Service people, Technical Support. Complete marketing division 17 PREPACKAGING PRODUCTS (BRANDING) We will provide specialist advice and we also offer this service to our clients if asked to. We encourage our clients to invest more funds in research and marketing there brands. We urge our clients that branding is the core of any marketing effort. The product must be something customers desire. The best marketing in the world will have difficulty selling a product for which there is no demand. Therefore, the marketing team and the farmer must understand how the product helps the customer solve a problem or achieve a goal. The farmer and the marketer must also understand the product’s relationship in the market — how is it superior to the competition. In regards to marketing our marketers will always liaising with the farmer in regards to their products and the market trends. We are prepared to develop new approaches, strategies, and offer advice on an on-going basis in order to keep ahead of the market’s changing tastes. We also render marketing consultation expertise advice in pre-packaging. In summary we offer this service to our clients when requested to do so and the service includes the following: Package, Labels, Design, Product, Name etc. 18 PRODUCTS Our intention is to ensure that the quality of service and products are meeting safety standards. We will be specializing in organic and scientifically generic modified agricultural products. We are subjected to the best practices of Amta as governed by among other statutes interalia; by-laws, government gazette and these include: Adherence to market days and hours Risk of profit and loss Control and risk of an agricultural products Packing, staking and display of agricultural products Cold storage Abandoned agricultural product unfit for human consumption Floor sales hygiene etc. 19 PRODUCTS One of the most helpful tools that we give our farmers available is product testing. There are different types of product testing. Placing a product into the hands of the customer allows you to gain insights unavailable any other way. a) What does the customer believe the product will do for them? b) How do they see your product in relation to the competition? We urge the farmer to remember that “the customer is always right” — what they believe is what they will use to choose to buy — and it’s easy to understand how this information is more valuable than anything said in a meeting or boardroom. PRODUCTS 20 We make sure that the process of food technology is up to standard and it meets consumer expectations. We will check if the qualities of all products are of good quality and grade. : 21 LOGISTICS SUPPORT (PLACE) : This is easily defined as the “place” where the customer meets the salesperson. Direct sales methods put the place in the customer’s home or office, with a salesperson personally going out to talk with the prospect. Our distribution channels are based on point collection, wholesalers, chain stores and satellite marketing. We have adequate trucks that we can use from Amta to transport products. Logistics is very important in that products can be distributed whilst fresh. We are planning to decentralize these operations so that transportation of products can be made easily and efficiently. Our logistics support can come in the form of: Distribution channels, Market coverage, Specific Channels, Locations, Order processing, Service levels , Transportation and returns. 22 STORAGE AND RIPENING ROOMS Our storerooms and ripening rooms are located at the Amta, affording us competitive advantages. We have huge refrigerators, ripening rooms and store rooms for safe keeping our products. This affords us the opportunity to sell our farmers products whilst they are still fresh. Prices of fresh products are generally higher thus good returns (ROI) to the farmer are guaranteed. We may also supply our farmers with crates for packaging their products. This makes it easy for us to transport products to any client and from any farmer who may want to deal with us directly. Packaging is also done at our storerooms and this is where our vehicle fleet depot is located as well. We will also make sure that our physical evidence is visible and tangible. These include traces of our business that a customer encounters prior to buying, advertising, signage, and our reception area, our corporate brochure, even staff clothing are part of the physical evidence of our business. We have noted that effective physical evidence should stand out from the competition and create a strong brand image, thus it increases our competitive edge and market share. POSITIONING 23 Positioning is the process of developing an image for your company or product. This can be achieved partially through branding, but it's important to realise that all elements of the marketing mix combine to provide the full picture. You must ensure that all areas of your business live up to expectations in order to successfully position yourself in the way you hope. Positioning also considers the competition, and you need to explain why you are unique in the marketplace and better than the other products on the shelf. OUR BUSINESS DEVELOPMENT Our positioning also takes into account the following: Perception by customers, Perception by our Competitors, Perception by general public and attributes 24 DEVELOPING AN EXPORT MARKET We are considering exporting into Sadc countries,globally and in the BRICS block. In 2014, Russia put an import embargo for any dairy & fresh products from Europe and USA. AMA can take advantage of this market and the bilateral agreements between Russia and other Sadc countries making trading easy to conduct . The export market is offering good returns and so this will improve the empowerment of our Namibian people considerably.Angola,Zambia,Botswana and S.Africa has a gateway of 250 million people We are prepared to assist the Amta in regards to signing of all trade agreements and give them the support staff which will engage with them in this regard. We are willing to assist Amta in carrying out a market research in regards to export opportunities regionally and other countries in the European Union, Africa and the BRICS block as well. In regards to further development we are willing to carry out a research on the growing of fresh produce in Namibia QUALITY ASSESSMENT, TECHNICAL SUPPORT & CUSTOMER ORIENTATION 25 We have noted that most of the technical support that the farmers need is provided by the Department of Agriculture In an effort to enhance customer care services to our farmers and buyers, we intend working closely with Amta as part of their business development strategy to support black indigenous business people, and different research institutions on ways to advice our farmers about current farming technology, farming techniques and ways to increase their harvest. We are also supporting them with management skills for the purpose of managing their business ventures and increase business growth, basic bookkeeping skills, budgeting; cost analysis, sustainable agriculture and food technology. Nevertheless, our team of technically competent quality assessors has got the mandate of assessing the quality of our client’s products. We endeavor to total quality improvement through our Total Quality Management process. Our total quality management process in not only skewed in favor of the farmer only. We also make sure that the products that we sell are customer orientated and they are of good quality. Thus all our products are thoroughly checked if they meet the required quality standards and grade. QUALITY ASSESSMENT, TECHNICAL SUPPORT & CUSTOMER ORIENTATION 26 We do provide continued technical support to our farmers so that their products are competitive on the market. This technical support can be provided free or on a consultation basis, depending on the type of consultation requested. Our Customer Orientation Model is as follows: We have noted that constructive criticism helps marketers adapt offerings to meet changing customer needs therefore we are guided by the above model for Total Quality Assurance QUALITY ASSESSMENT, TECHNICAL SUPPORT & CUSTOMER ORIENTATION 27 A firm in the market economy survives by producing goods that persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern. Many companies today have a customer focus (or market orientation) model. This implies that the company focuses its activities and products on consumer demands. We have identified there are three ways of doing this: the customer-driven approach, the market change identification approach and the product innovation approach. In our consumer-driven approach, we make sure that consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no reason to spend R&D (research and development) funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs. QUALITY ASSESSMENT, TECHNICAL SUPPORT & CUSTOMER ORIENTATION 28 Our formal approach to this customer-focused marketing is known as SIVA (Solution, Information, Value, Access). This system is basically the four Ps of marketing (price, product, promotion and placement) renamed and reworded to provide a customer focus. Our SIVA Model provides a demand/customer- centric alternative to the well-known 4Ps supply side model (product, price, placement & promotion) of marketing management. ENGANGING OTHER STAKEHOLDERS ON BEHALF OF AMTA AND AFRIFRESH 29 AMA willing to engage other stakeholders in regards to any other stakeholder who are willing to add value to the Amta and Afrifresh. The stakeholders may include other lending institutions. We will make sure that the lending is done in a transparent way and if it means getting government security, we will do that for Amta . All we do is find an affordable lender whose conditions are flexible to the farmers. 30 SALES PROJECTIONS 2016 2017 2018 2019 2020 N$ 1,5 Million N$ 2,8 Million 25% 25% 25% Per Month Per Month Annual Growth Annual Growth Annual Growth 31 COORPORATE SOCIAL INITIATIVES (CSI) Empowerment and skills transfer to mainly previously disadvantage communities and individuals Supply of fresh produce for school feeding programmes for children and the aged Business mentorship CONCLUSION 32