UNIVERSITY OF ECONOMICS AND LAW

FACULTY OF INTERNATIONAL ECONOMIC RELATIONS

TEAM PROJECT
DEVELOPING NEW INSTANT NOODLE BRAND FOR
VINAACECOOK IN SOUTH AFRICA
SUBJECT: INTERNATIONAL MARKETING
LECTURER: M.A. NGUYEN CONG HOA
CLASS: K11402T
MEMBERS:
Duong Hang Anh, St. Code: K114020096
Nguyen Hoang Anh Duy, St. Code: K114020109
Do Thi Bich Nghie, St. Code: K114020160
Bui Anh Tu. St. Code: K114020!"0
Dang Ba Anh Thi, St. Code: K114020192
H# CH$ %$NH C$T&, %A& 2014
2
3
REVIEW OF THE LECTURER
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
4
EXECUTIVE SUMMARY
Since it' ince(tion in 199", Acecoo) *ietna +oint Stoc) Co(any ha' ,een
de-e.o(ing d/aatica..y and ,ecoe' a .eading anu0actu/e/ o0 0ood'tu00' in
*ietna. Acecoo) *ietna, attained a 't/ong (o'ition in the a/)et 1hi.e (/o-iding
in'tant (/oce''ed (/oduct' 1ith high 2ua.ity and nut/itiona. -a.ue'. The co(any3'
goa. i' to ,ecoe one o0 the 1o/.d .eading anu0actu/e/' o0 in'tant nood.e' and
(/oce''ed 0ood'tu00'. #-e/ 20 yea/' o0 g/o1th and de-e.o(ent, at (/e'ent,
Acecoo) *ietna o(e/ate' 10 0acto/ie' th/oughout *ietna. 4/oduct' o0 Acecoo)
*ietna a/e 'o.d in o-e/ 40 count/ie' th/oughout A'ia, 5u/o(e, Ae/ica, A0/ica and
%idd.e 5a't 'uch a' (ouch, cu(, ,o1. and t/ay o0 in'tant nood.e', in'tant -e/ice..i,
in'tant /ice nood.e', etc. And no1 the ne6t ta/get i' South A0/ica, 1hich i' one o0
the o't 'o(hi'ticated and (/oi'ing ee/ging a/)et' g.o,a..y and i' a.'o one o0
the highe't /an)ing de-e.o(ing econoie', 'u/(a''e' count/ie' 'uch a' Hunga/y,
$ta.y, B/a7i. and Thai.and. The 2ue'tion i', ho1 *inaAcecoo) can ente/ South
A0/ican co(etiti-e and (otentia. a/)et8 9ith 1hich (/oduct8 Ho1 to co(ete
again't e6i'ting co(etito/'8
$n the /e(o/t, th/ough 'tati'tic' and in0o/ation o,tained 0/o /e.ia,.e
go-e/nenta. o/gani7ation' 'ou/ce and (iece' o0 /e'ea/ch a,out South A0/ican
a/)et, 1e 1i.. con't/uct the 't/ategy 0o/ %$S:4 ; *inaAcecoo)3' in'tant nood.e
,/and ; to att/act con'ue/' and (.ay a 't/ategic /o.e in the indu't/y. $n the 0i/'t (a/t
o0 the /e(o/t i' the o-e/a.. ana.y'i' o0 South A0/ican e6te/na. en-i/onent:
(o.itica.<.ega., econoic, co(etiti-e, .e-e. o0 techno.ogy, 't/uctu/e o0 di't/i,ution,
geog/a(hy and in0/a't/uctu/e and cu.tu/a. 0o/ce', 1hich 1i.. he.( /ea.i7e the (/o'
and con' o0 the count/y3' econoy and ha-e the atching 'o.ution'. $n the 'econd
(a/t i' the ana.y'i' o0 the 't/ategie' cho'en ,a'ed on 44' and con'ue/ ,eha-io/
theo/y 1ith con'ide/ation a,out the e.eent' o0 e6te/na. en-i/onent, e'(ecia..y
the cu.tu/e. Thi' i' the co/e (a/t o0 the /e(o/t, 1hich decide the (o'ition o0 %$S:4
and *inaAcecoo) in the a/)et 0o/ .ong te/, 1hich a.'o in 'oe a'(ect',
dete/ine *ietnae'e iage g.o,a..y.
5
TABLE OF CONTENTS
6
CHAPTER 1: INTRODUCTION
1.1. P!"#$%
The ai o0 thi' 'tudy i' to he.( *inaAcecoo) int/oduce the (o'ition o0 it'
ne1 ,/and =%$S:4> to the South A0/ican u/,an in'tant nood.e' a/)et. Thi'
/e'ea/ch a.'o intend' to gain %$S:4 a co(etiti-e (o'ition again't %aggi ?the o't
(o(u.a/ in'tant nood.e ,/and in South A0/ica@ and othe/ co(etito/'.
1.2. S&#"%
The (/oAect 'ought to e6aine the )ey i''ue' a''ociated 1ith in'tant nood.e
con'u(tion in South A0/ica. The /e'u.t' .oo'e.y ,a'e on data and (/actice o0 South
A0/ican in'tant nood.e a/)et' and the econoic (otentia.ity o0 South A0/ican
a/)et. The /e'ea/ch 1i.. gi-e an o-e/-ie1 o0 South A0/ican e6te/na. en-i/onent
togethe/ 1ith the e00ect' o0 the count/y3' cu.tu/e. The o,Aect o't.y concent/ated i'
the in'tant nood.e a/)et 1ith o-e/a.. ana.y'i' o0 co(etito/', 'u((.ie/',
di't/i,uto/'Binc.uded in the 44' 't/ategie'.
1.3. M%'(#)#*#+,
The South A0/ican a/)et i' in-e'tigated in th/ee 0ie.d': a/)eting /e'ea/ch,
con'ue/ ,eha-io/ and a/)eting i6. 9e ,a'e on the theo/ie' 0/o the th/ee 0ie.d'
to 0aci.itate the di'cu''ion o0 ou/ /e'ea/ch. Th/ough a/)eting /e'ea/ch, 1e ha-e an
o-e/a.. de'c/i(tion o0 South A0/ican en-i/onent and identi0y the a/)et ta/get and
the a/)et (o'ition 0o/ the (/oduct. The con'ue/ ,eha-io/ theo/y ana.y'i' 'u((o/t'
ou/ deci'ion in (/ootion ca(aign and in ho1 to a((/oach ta/geted con'ue/'.
The a/)eting i6 i' the co/e (a/t in ou/ /e(o/t. 9e ha-e atte(ted to ,ui.d the
't/ategie' 0o/ %$S:4 unde/ the guidance o0 the 44' and (/o-ide ou/
/ecoendation' on the 0ou/ a'(ect'.
1.4. L-.-'/'-#0$
The 0oundation' o0 ou/ /e'ea/ch a/e the theo/ie' and 'tati'tic' o,tained 0/o
South A0/ican go-e/nent o00icia. o/gani7ation'. Ho1e-e/, 1e do not ha-e the
ca(a,i.ity to conduct a 'u/-ey to gain a tho/ough in'ight into South A0/ica
con'u(tion ,eha-io/. Cu/the/o/e, the 'tudy do not 0ocu' 'u,'tantia..y on the
in0.uence o0 cu.tu/a. and geog/a(hica. in the 't/ategie'. And 1e a.'o do not ha-e the
acce''i,i.ity to the 0inancia. ca(a,i.ity o0 *inaAcecoo) 1hen in-e't in South A0/ica
to adAu't the 44' 't/ategie' 0o/ %$S:4.
7
CHAPTER 2: FOREIGN ENVIRONMENT ANALYSIS
2.1. P#*-'-&/*1L%+/*
South A0/ica i' a con'titutiona. deoc/acy 1ith a th/eeDtie/ 'y'te o0
go-e/nent and an inde(endent Audicia/y. The nationa., (/o-incia. and .oca. .e-e.'
o0 go-e/nent a.. ha-e .egi'.ati-e and e6ecuti-e autho/ity in thei/ o1n '(he/e', and
a/e de0ined in the Con'titution a' Edi'tincti-e, inte/de(endent and inte//e.atedE.
The Fe(u,.ic o0 South A0/ica he.d it' 0i/'t uni-e/'a. 'u00/age e.ection' in
A(/i. 1994. The ANC i' South A0/ica3' o't 'u((o/ted (o.itica. (a/ty, and can ,e
'een to ,e cent/a. to the aintenance o0 (eace0u. /e.ation' ,et1een the di00e/ing
/acia. g/ou(' ?'(eci0ica..y ,et1een the 1hite and ,.ac) ethnicitie'@, the
un(/ecedented g/o1th o0 the nationa. econoy, and it' any initiati-e' to de-e.o(
(/e-iou'.y di'ad-antaged (eo(.e' and counitie'. ANC ho.d' a aAo/ity o0 6"G
unde/ South A0/icaH' (/o(o/tiona. /e(/e'entation 'y'te, and go-e/n' eight o0 the
count/y3' nine (/o-ince'. $n Dece,e/ 2012, 4/e'ident Iua 1a' /eDe.ected a' the
ANC 4/e'ident and the (/e'identia. candidate 0o/ the 2014 e.ection.
The .eade/'hi( o0 the ANC 1a', undou,ted.y, o0 )ey i(o/tance in South
A0/ica3' t/an'ition to the .i,e/a., huan /ight' o/ientated con'titution that South
A0/ican' enAoy today: South A0/ica3' con'titution ha' ,een hai.ed a' the o't
(/og/e''i-e and .i,e/a. in the 1o/.d ?t/u.y an achie-eent o0 1hich the nation can
,e (/oud@.
A' 0o/ South A0/ica3' .egi'.ation, they 0ace a 0e1 ,ounda/ie' 1ith thei/
i6ed< hy,/id .ega. 'y'te. $t i' co(o'ed o0 inte/1ea-ing a nu,e/ o0 di'tinct
.ega. t/adition' 'uch a': ci-i. .a1 o0 the Dutch, coon .a1 o0 B/iti'h, and an
indigenou' .a1 'y'te 0/o A0/ican Nati-e'. 9ith the'e t/adition' ha-ing a
co(.e6 inte//e.ation'hi(, the (/ocedu/a. a'(ect' o0 the .ega. 'y'te 'ti..
(/oinent.y (/e-ai. to ,e co//e.ated 1ith the FoanDDutch .ega. 'y'te. Due to
thi', thei/ cou/t 'y'te i' o/gani7ed hie/a/chica..y, and con'i't' o0 %agi't/ate'3'
Cou/t, High Cou/t', a Su(/ee Cou/t o0 A((ea., and a Con'titutiona. Cou/t. The
Con'titutiona. Cou/t ha' the highe't autho/ity in a.. atte/. 9ith a 1o/.dDc.a'' and
(/og/e''i-e .ega. 0/ae1o/), South A0/ican .egi'.ation go-e/ning coe/ce, .a,ou/
8
and a/itie i''ue' i' (a/ticu.a/.y 't/ong, and .a1' on co(etition (o.icy,
co(y/ight, (atent', t/adea/)' and di'(ute' con0o/ to inte/nationa. no/' and
'tanda/d'
2.2. E&#0#.-&
The econoy o0 South A0/ica i' the .a/ge't in A0/ica, it account' 0o/ 24G o0
it' g/o'' doe'tic (/oduct in te/' o0 (u/cha'ing (o1e/ (a/ity, and i' /an)ed a' an
u((e/Didd.e incoe econoy ,y the 9o/.d Ban). South A0/ica i' cu//ent.y
inc.uded, a.ong 1ith China, B/a7i. and $ndia, in g/ou( o0 nation' 1ith ee/ging
econoie' co..ecti-e.y )no1n a' BF$CS. $n addition, South A0/ica i' the 0o/eo't
e,e/ o0 SADC ?the Southe/n A0/ican De-e.o(ent Counity@, an inte/D
go-e/nenta. o/gani7ation 0o/ed to 0u/the/ 'ocia. coDo(e/ation and integ/ation
aong't it' 1" e,e/ 'tate', a' 1e.. a' c/eate (o.itica. and 'ecu/ity coDo(e/ation
in the 'outhe/n A0/ican /egion.
South A0/ica ha' a co(a/ati-e ad-antage in the (/oduction o0 ag/icu.tu/e,
ining and anu0actu/ing (/oduct' /e.ating to the'e 'ecto/'. The count/yH'
econoy i' di-e/'i0ied 1ith )ey econoic 'ecto/' inc.uding ining, ag/icu.tu/e and
0i'he/ie', -ehic.e anu0actu/ing and a''e,.y, 0ood (/oce''ing, c.othing and
te6ti.e', te.ecounication, ene/gy, 0inancia. and ,u'ine'' 'e/-ice', /ea. e'tate,
tou/i', t/an'(o/tation, and 1ho.e'a.e and /etai. t/ade.
South A0/ica3' 'ucce'' in /e0o/ing it' econoic (o.icie' i' (/o,a,.y ,e't
/e0.ected ,y it' JD4 0igu/e', 1hich /e0.ected o0 uninte//u(ted econoic g/o1th
,et1een 199! and 200K, 1hen JD4 /o'e ,y ".1G. 9ith South A0/ica3' inc/ea'ed
integ/ation into the g.o,a. a/)et, the/e 1a' no e'ca(ing the i(act o0 the 200LD
2009 g.o,a. econoic c/i'i', and JD4 cont/acted to !.1G. 9hi.e the econoy
continue' to g/o1, d/i-en .a/ge.y ,y doe'tic con'u(tion, g/o1th i' at a '.o1e/
/ate than (/e-iou'.y 0o/eca't. $t i' (/oAected to g/o1 at 2.KG in 201!, !."G in 2014
and !.LG in 201".
9
JD4 ?(u/cha'ing (o1e/ (a/ity@ ?Bi..ion M@
:nde/ it' in0.ationDta/geting (o.icy, i(.eented ,y the South A0/ican
Fe'e/-e Ban) ?SAFB@, (/ice' ha-e ,een 0ai/.y 'teady. $n +anua/y 201!, the annua.
con'ue/ in0.ation /ate 1a' ".4G, di((ing 0/o Dece,e/ 2012H' ".KG. Sta,.e and
.o1 in0.ation (/otect' .i-ing 'tanda/d', e'(ecia..y o0 1o/)ing 0ai.ie' and .o1D
incoe hou'eho.d'.
The o-e/a.. in-e'tent en-i/onent /eain' encou/aging. A J20 count/y,
South A0/ica i' con'ide/ed a .o1D/i') in-e'tent de'tination 0o/ in-e'to/' .oo)ing
0o/ a 0ootho.d into A0/ica. A' the continent3' .a/ge't A0/ican in-e'to/, South A0/ica
'end' o/e than 2"G o0 it' anu0actu/ed (/oduct' into the continent.
Th/ough in-e'tent incenti-e' and indu't/ia. 0inancing inte/-ention', the
go-e/nent acti-e.y 'ee)' to encou/age coe/cia. acti-ity and att/act 0o/eign
ca(ita.. South A0/ica ea/ned a/ound 42 ,i..ion do..a/ in 0o/eign di/ect in-e'tent in
2011, 1hich 1a' o/e than 0ou/ tie' the aount in 2010.
4/inci(a. inte/nationa. t/ading (a/tne/' o0 South A0/ica ?,e'ide' othe/ A0/ican
count/ie'@ inc.ude: China, the :nited State', Je/any, +a(an, and the :nited
Kingdo.
Chie0 e6(o/t' a/e eta.' and ine/a.'. %achine/y and t/an'(o/tation
e2ui(ent a)e u( o/e than oneDthi/d o0 the -a.ue o0 the count/y3' i(o/t'. #the/
i(o/t' inc.ude autoo,i.e', cheica.', anu0actu/ed good', and (et/o.eu.
Acco/ding to o00icia. e'tiate', a 2ua/te/ o0 the (o(u.ation i' une(.oyed.
Acco/ding to a 201! Jo.dan Sach' /e(o/t, that nu,e/ inc/ea'e' to !"G 1hen
inc.uding (eo(.e 1ho ha-e gi-en u( .oo)ing 0o/ 1o/). A 2ua/te/ o0 South A0/ican'
10
.i-e on .e'' than :S M1.2" a day. :ne(.oyent, /eain' the o't cha..enging o0
South A0/ica3' hu/d.e'. $t i' at the to( o0 go-e/nent (/io/itie' and at the hea/t o0 it'
econoic (o.icie'.
South A0/ica i' /an)ed !"th out o0 1L! count/ie' 0o/ ea'e o0 doing ,u'ine''
acco/ding to Doing Bu'ine'' 2012, a Aoint (u,.ication o0 the 9o/.d Ban) and the
$nte/nationa. Cinance Co/(o/ation.
2.3. C*'!/* 2#!&%$
9ith a g/o1ing (o(u.ation o0 a,o-e "1 i..ion (eo(.e and e.e-en o00icia.
.anguage', South A0/ica i' one o0 the o't di-e/'e count/ie' aong the 1o/.d. They
ha-e a .a/ge a'' edia 'ecto/ that coon.y u'e' the 5ng.i'h .anguage. %any
u/,an a/ea' in South A0/ica ha-e a di00e/ent ethnic g/ou( that /e0.ect' the 1ho.e
(o(u.ation. The (o(u.ation o0 South A0/ica inc.ude' the o/igina. ,.ac) (eo(.e' and
5u/o(ean, Chine'e, $ndian and any o/e 0/o /e't o0 the 1o/.d ha-e ig/ated
to South A0/ica. K0G o0 the (o(u.ation' in South A0/ica a/e the ,.ac) A0/ican',
1he/ea' the 1hite (eo(.e a)e u( 11G o0 the tota. (o(u.ation, Co.ou/ed' a/e LG,
o/e than t1o (e/cent a/e $ndian', and othe/ ino/itie' coe unde/ .e'' than 2G o0
the (o(u.ation. The South A0/ican cu.tu/e and eti2uette' i' uch co(.icated and
not ea'y de'c/i,e due to it' di-e/'ity.
$n South A0/ica a huge di00e/ence' i' 'een ,et1een the /u/a. and u/,an a/ea'.
%any /u/a. ,.ac) (eo(.e o0 South A0/ica a/e 'ti.. attached and 0o..o1 thei/ o.d
t/adition'N on the othe/ hand the u/,an ,.ac) (eo(.e a/e o/e and o/e in0.uenced
,y the u/,an en-i/onent and inte/nationa. and ode/n .i0e 'ty.e that 'u//ound'
the.
South A0/ican' do not ,e.ie-e in .ong /e.ation'hi(' o/ c/eating a (e/'ona.
/e.ation in conducting a ,u'ine''. The'e (eo(.e a/e o/e o0 a t/an'actiona. natu/e.
$n o't (a/t o0 South A0/ica, the (eo(.e )ee( ha/oniou' 1o/)ing /e.ation'hi('
aong each othe/ and a-oid con0.ict'. The'e (eo(.e o0ten u'e the eta(ho/' to
deon't/ate a (oint. %o't o0 the South A0/ican', a.though ethnic, (/e0e/ to eet
0aceDtoD0ace a,o-e coon counication ean' 'uch a' te.e(hone eai., .ette/,
etc. $t i' -e/y i(o/tant to de-e.o( utua. t/u't and unde/'tanding ,e0o/e any
,u'ine'' negotiation.
11
2.4. C#."%'-'-3%0%$$
South A0/ica 1a' /an)ed "2
nd
out o0 144 count/ie' in the 9o/.d 5conoic
Co/uH' J.o,a. Co(etiti-ene'' $nde6 0o/ 2012. $t /eain' the highe't /an)ed
count/y in 'u,D Saha/an A0/ica, and c.aied thi/d (.ace aong the BF$CS
count/ie'. Tha'3' ,ecau'e the go-e/nent3 (o.icie' in anu0actu/ing (/oAect',
indu't/ia. inno-ation, 0inance and 'a.. ,u'ine'' de-e.o(ent. A.'o indu't/ia.
de-e.o(ent 7one' ha-e ,een e'ta,.i'hed in c.o'e (/o6iity to aAo/ (o/t' and
ai/(o/t', o00e/ing 1o/.dDc.a'' in0/a't/uctu/e, dedicated cu'to' 'u((o/t and /educed
ta6ation.
Thei/ co(etition .egi'.ation 0o..o1' 5u/o(ean :nion, :S and Canadian
ode.'. The .a1 (.ace' -a/iou' (/ohi,ition' on antiDco(etiti-e conduct, /e't/icti-e
(/actice' ?'uch a' (/ice 0i6ing, (/edato/y (/icing and co..u'i-e tende/ing@ and
Ea,u'e'E ,y EdoinantE 0i/' ?0i/' 1ith a a/)et 'ha/e o0 !"G o/ o/e@.
2.5. L%3%* #2 '%&(0#*#+,
South A0/ica ha' the (/o'(ect to co(ete inte/nationa..y, the/e e6i't' an huge
(otentia. to e6(.oit and .e-e/age 'e.ected techno.ogie'. South A0/ica i' not a .eade/
in techno.ogie' ,ut /athe/ an ada(to/, integ/ato/, a''e,.e/ and 0o..o1e/, the South
A0/ican techno.ogy 'ecto/ doe' ha-e -a/iou' co(etiti-e ad-antage'. The'e u'ua..y
co(/i'e a 1e..Dde-e.o(ed te.ecounication' indu't/ie', e'ta,.i'hed and
co(etiti-e ca.. cente/', high.y /ega/ded ca(a,i.itie' in 'o0t1a/e de-e.o(ent, eD
.ea/ning and 'y'te integ/ation. The/e i' an inten'e inc/ea'e o0 ecoe/ce
techno.ogie' th/oughout South A0/ica. Ho1e-e/, the integ/ated i(.eentation o0
ecoe/ce 'o.ution' and 'ecu/ityDena,.ing a((.ication' i' inc/edi,.y .iited.
2.6. S'!&'!% #2 )-$'!-4'-#0
South A0/ica o00e/' 0o/eign 'u((.ie/' a -a/iety o0 ethod' to di't/i,ute and
'e.. thei/ (/oduct', inc.uding u'ing an agent o/ di't/i,uto/, 'e..ing th/ough
e'ta,.i'hed 1ho.e'a.e/' o/ dea.e/', 'e..ing di/ect.y to de(a/tent 'to/e' o/ othe/
/etai.e/', o/ e'ta,.i'hing a ,/anch o/ 'u,'idia/y 1ith it' o1n 'a.e' 0o/ce.
Wholesalers: Con'ue/ good' /e2ui/ing aintenance o0 'toc)' and
indu't/ia. /a1 ate/ia.' a/e o0ten e6(o/ted to South A0/ica th/ough e'ta,.i'hed
1ho.e'a.e/'.
12
Retail organizations: %any e6(o/te/' o0 con'ue/ good' 'e.. di/ect.y to
South A0/ican /etai. o/gani7ation' ; inc.uding con'ue/ co/(o/ation', de(a/tent
'to/e', chain 'to/e', and coDo(e/ati-e g/ou(' o0 inde(endent /etai.e/' ; 1hich
a''ue the 0unction' o0 1ho.e'a.e ,uying, 'e..ing and 1a/ehou'ing.
Consumer retail: South A0/ica o00e/' the 0u.. '(ect/u o0 /etai. out.et': 'a..
gene/a. dea.e/'N '(ecia.ty 'to/e' hand.ing a 'ing.e (/oduct .ine ?'uch a' c.othing,
e.ect/onic', o/ 0u/nitu/e@N e6c.u'i-e ,outi2ue'N chain 'to/e' ?g/oce/ie', c.othing,
toi.et/ie', hou'eho.d good'@N de(a/tent 'to/e'N ca'h and ca//y 1ho.e'a.e /etai.
out.et'N and coDo(e/ati-e 'to/e' 'e/-ing /u/a. a/ea'. Oa/geD'ca.e 'u(e/a/)et', o/
hy(e/a/)et', a/e .ocated in 'u,u/,an 'ho((ing a..' and 'e.. .a/ge 2uantitie' o0
a.o't a.. con'ue/ good'.
About 90 percent of the consumer trade inventories of these stores are
domestically sourced.
Franchises: C/anchi'ing i' 1e..De'ta,.i'hed in South A0/ica, 1ith the 'ecto/
'ho1ing 't/ong and continued g/o1th. A/ound !0G o0 South A0/ican 0/anchi'e' a/e
nonD0ood 'y'te', 1ith an e(ha'i' on 'e/-ice. Bui.ding, o00ice and hoe 'e/-ice'
'ecto/' a/e doinant, 1ith autooti-e, /e'tau/ant, hea.th, education and t/aining
0/anchi'e' a.'o a-ai.a,.e.
After-sales agents: Co/ (/oduct' o0 a technica. natu/e, it ay,e nece''a/y to
a((oint an o00icia. a0te/D 'a.e' agent in South A0/ica. Thi' ay ,e a co(any that
doe' not i(o/t o/ a/)et the (/oduct in 2ue'tion, ,ut /athe/, ,ecau'e o0 it'
geog/a(hica. /each, technica. a,i.ity and good1i.. in the a/)et, act' a' the ce/ti0ied
'e/-ice agent.
Agents & distributors: Co/ ce/tain (/oduct', thi' i' the ,e't 1ay' to ,/ing the
good' th/ough e-e/y 'ing.e (a/t o0 the count/y, e'(ecia..y (.ace' 1ith the .ac) o0
nationa. 'u((o/t in in0/a't/uctu/e. Oa/ge/ co(anie' 1ho ta)e on agencie' o0ten
ha-e an o00ice in each o0 the aAo/ cent/e', a)ing any agency ag/eeent ea'ie/ to
cont/o..
13
2.7. G%#+!/"(, /0) -02!/$'!&'!%
South A0/ica i' a ediuD'i7ed count/y, 1ith a tota. .and a/ea o0 1 219 090
'2ua/e )i.oet/e'. $t i' oneD eighth the 'i7e o0 the :S, a,out a thi/d the 'i7e o0 the
5u/o(ean :nion, t1ice the 'i7e o0 C/ance and o-e/ th/ee tie' the 'i7e o0 Je/any.
South A0/ica ha' a .ong coa't.ine that 't/etche' o/e than 2,"00 ) and a.ong t1o
ocean' ?the South At.antic and the $ndian@.
Climate: South A0/ica ha' gene/a..y te(e/ate c.iate. A 'u,t/o(ica.
.ocation, ode/ated ,y ocean on th/ee 'ide' o0 the count/y and the a.titude o0 the
inte/io/ (.ateau, a)e' South A0/ica a 1a/ and 'unny count/y. But itH' a.'o d/y,
1ith an a-e/age annua. /ain0a.. o0 a,out 4"0, 1ith a,out 21G o0 the count/y
/ecei-ing .e'' than 200 a yea/.
Topography: The a-e/age e.e-ation /i'ing 'teadi.y to1a/d' the no/th
?to1a/d' the e2uato/@ and 0u/the/ in.and. Due to thi' -a/ied to(og/a(hy and oceanic
in0.uence, a g/eat -a/iety o0 c.iatic 7one' e6i't.
Natural resources: South A0/ica i' /ich in a -a/iety o0 ine/a.'. $n addition
to diaond' and go.d, the count/y a.'o contain' /e'e/-e' o0 ch/oiu, antiony,
coa., i/on o/e, angane'e, nic)e., (ho'(hate', tin, u/aniu, ge diaond',
(.atinu, co((e/, -anadiu, 'a.t, natu/a. ga'.
The ining 'ecto/ continue' to 0o/ the co/e o0 the South A0/ican econoy
a' iningDcent/ed ho.ding co(anie' in-e't in othe/ econoic acti-ity. Jo.d
/eain' the o't i(o/tant ine/a.PSouth A0/ica i' the 1o/.d3' .a/ge't (/oduce/P
and /e'e/-e' a/e .a/geN ho1e-e/, (/oduction i' '.o1.y dec.ining
5n-i/onenta. (/otection i' a o't i(o/tant (a/t o0 the 'ocio econoic
de-e.o(ent, and thi' i' one o0 the o't c/itica. (/o,.e in South A0/ica. The
inc/ea'ing (o(u.ation, high deg/ee o0 u/,ani7ation and un/ea'ona,.e /i'e in
ene/gy u'e, ha' a00ected the 'u'taina,i.ity o0 the en-i/onent. De0o/e'tation
/e'u.t' in the /eduction o0 the 'in) 0o/ ca/,on dio6ide and inc/ea'e' 'oi. de(/i-ation.
$ndu't/ia.i7ation .ead' to 1ate/ and ai/ (o..ution. The 1ate/ /e'ou/ce' get (o..uted
due to the di'cha/ge o0 unt/eated o/ (a/tia..y t/eated 1a'te' 0/o indu't/y, doe'tic
di/t and 0e/ti.i7e/ and (e'ticide /un o00 0/o ag/icu.tu/a. 0ie.d'.
14
CHAPTER 5: MARKETING MIX
P!#)&' MISUP, an in'tant nood.e ,/and o0 *inaAcecoo) 1ith 0ou/
0.a-ou/': C!!,6 S(!-."6 P#!7 /0) C(-&7%0
P!#)&' ',"%: C%CJ ; Ca't %o-ing Con'ue/ Jood
S*#+/0 =%$S:4 ; Ta'te 0o/ o/e>
F%/'!%
%."(/$-8%)
=Oo1 ca.o/y and 4henoena. Ta'te 0o/ dai.y ea.'>
P!-&% 1 (ac) D M0.99
" (ac)' D M4.L0 o/ M4.L"
10 (ac)' D M9.00 o/ M9.2"
!0 (ac)' ?1 ca/ton@ D M26.00
T/!+%' &$'#.%!$ 5u/o(ean and Ae/ican in South A0/ica, e'(ecia..y: ,u'y
o00ice 1o/)e/', 0ai.ie' 1ith young chi.d/en
E0'!, $'!/'%+, 56(o/t 0/o *ietna to South A0/ica in the 0i/'t 2 yea/'.
A0te/ tho/ough a/)et /e'ea/ch and econoic 'ta,i.ity o0
South A0/ican a/)et, ,ui.d 0acto/ie' in South A0/ican /u/a.
a/ea' to (/oduce in'tant nood.e'.
C#."%'-'#!$ %aggi, Cintan and Nano
3.1. P!#)&' S'!/'%+,
Flaors and types: The ,igge't co(etito/ o0 u' in South A0/ica i' %aggi,
1hich i' 'ucce''0u. ,y a((.ying (/oduct .ine e6(an'ion 't/ategy. %aggi ha'
't/etched it' (/oduct .ine ,y .aunching a 'e/ie' o0 di00e/ent 0.a-o/', e'(ecia..y in
th/ee 0.a-o/': chic)en, ,ee0 and chee'e. *inaAcecoo) i' a .ateDo-e/ in South
A0/ican in'tant nood.e' a/)et. The/e0o/e, the 0i/'t 'te( to co(ete 1ith othe/
co(etito/' i' int/oducing 4 ain 0.a-o/' o0 in'tant nood.e': Cu//y, Sh/i(, 4o/)
and Chic)en. T1o ty(e'<0o/' o0 in'tant nood.e' that 1e 1i.. .aunch a/e t/aditiona.
0o/' ?in'tant nood.e' 1ith 'ou(@ and d/ied in'tant nood.e' ?in'tant nood.e' 1ithout
'ou(@. %$S:4 1i.. ,e the (/ie (/oduct .ine to educate cu'toe/' a,out
*inaAcecoo). ! onth' a0te/ %$S:4 .aunched, the ne6t (/oduct .ine': King Che0
and Jood ?,ean -e/ice..i@ 1i.. ,e int/oduced 1ith highe/ (/ice.
15
!ac"aging and !ac"ing: %$S:4 1i.. ,e 'o.d in (ac)'. 4/oduct (ac)ing 1i..
,e di-ided into 4 ty(e': 'ing.e (ac)', " (ac)' in (.a'tic ,ag, 10 (ac)' in (.a'tic ,ag
and !0 (ac)' in ca/ton. $n addition, " (ac)' and 10 (ac)' ,ag 1i.. ,e .aunched in
ono;0.a-o/ and u.ti;0.a-o/' ,ag'. Co/ o00ice 1o/)e/' and t/a-e.e/': 1e 1i..
(/oduce a 0oa ,o6 .ine ,ut unde/ an anothe/ ,/and.
3.2. D-$'!-4'-#0
South A0/ica i' a .a/ge count/y, 1ith nine (/o-ince'. Oac)ing the 'u((o/t o0
nationa. in0/a't/uctu/e, 'a..e/ agent' o0ten tend to o(e/ate (/o-incia..y. Soe
cha/acte/i'tic' o0 in0o/a. channe.' in South A0/ica: -e/y 0/agented, uno/gani7edN
/etai. 0o/at' -a/y 1ide.yN 'ou/ce 0/o u.ti(.e 'u((.ie/', o0ten ,uy 0/o
1ho.e'a.e/' o/ .oca. di't/i,uto/'N 'a.. 'to/e' 1ith .iited 1o/)ing ca(ita..
A((/o6iate.y 90G o0 South A0/icaH' econoica..y acti-e (o(u.ation i' 0ound in
a/ea' 'u//ounding the citie' o0 +ohanne',u/g, Ca(e To1n, Du/,an, 4/eto/ia, and
4o/t 5.i7a,eth, /e(/e'enting the count/yH' aAo/ a/ea' o0 econoic acti-itie' and
con'ue/ a/)et'. 9hich /e2ui/e' Acecoo) to a((oint an agent ca(a,.e o0
(/o-iding nationa. co-e/age togethe/ 1ith a *inaAcecoo) %anageent co(any in
+ohanne',u/g to anage a.. the ,u'ine'' in South A0/ica. Acecoo) 1i.. 'ou/ce and
'e.. (/oduct' enti/e.y to the agent, 1ho 'tand' a.one a' an indi-idua. ente/(/i'e,
,uying in-ento/y on hi' o1n account and then 'e..ing in on1a/d'. Ci/'t.y, ,a'e on
'oe /e'ea/ch, 1e ha-e 0ound out that thi' ode i' (a/ticu.a/.y a((/o(/iate 1hen
(/oduct' a/e high.y co(etiti-e and .ac) a .a/ge a/)et. Second.y, the agentD,a'ed
net1o/)' a/e e00ecti-e in ta/geting )ey -u.ne/a,.e 'egent' ?chi.d/en and
hou'e1i-e'@ in South A0/ica. Thi/d.y, agent' 1i.. 'tand a.one, /e2ui/e .itt.e t/aining,
and a/e no co't to the cente/.
$n'tant nood.e i' a Ca't %o-ing Con'ue/ Jood, 'o the (/oduct' a.1ay'
ha-e to ,e in 'ight o0 the con'ue/' 1hich /e2ui/e the di't/i,ution channe.' to ,e
-e/'ati.e and 1ide. The agent 1i.. e'ta,.i'h 'to/eD,a'ed net1o/)' in +ohanne',u/g,
Ca(e To1n, 4o/t 5.i7a,eth and Du/,an th/oughout thei/ e6i'ting /etai.' 'to/e'
ha-ing the ad-antage o0 a ,/oade/ (/oduct i6 1ith 1hich to ea/n /etu/n' and to
enhance the co(any3' iage o/e 1ide.y to South A0/ican con'ue/'. The /etai.
net1o/)' inc.ude: 'a.. gene/a. dea.e/'N '(ecia.ty 'to/e' hand.ing a 'ing.e (/oduct
16
.ineN g/oce/y chain 'to/e'N ca'h and ca//y 1ho.e'a.e /etai. out.et'N coDo(e/ati-e
'to/e' 'e/-ing /u/a. a/eaN .a/geD'ca.e 'u(e/a/)et'N hy(e/a/)et' .ocated in
'u,u/,an 'ho((ing a..' and 'e.. .a/ge 2uantitie' o0 a.o't a.. con'ue/ good'.
A,out 90G o0 the South A0/ican con'ue/ t/ade in'tant nood.e' in the'e channe.'.
The distribution channel can be visualized in the
following graph:
Ci/'t Di't/i,uto/: Agent
Second Di't/i,uto/: 9ho.e'a.e/'
%a/)eting Site': Fetai.e/'
3.3. P!#.#'-#0
The (u/(o'e' o0 the (/ootion a/e to att/act and inc/ea'e a/)et 'ha/e and
counicate in0o/ation a,out (/oduct and co(any ?,/and@ to cu'toe/. At the
ea/.y 'tage, 1e 1i.. concent/ate ou/ a/)eting acti-itie' -0 J#(/(00%$4!+ #0*,.
A0te/ %$S:4 ha' ,een ac)no1.edged ,y any cu'toe/', 1e 1i.. o-e the
17
ca(aign to Ca(e To1n, Du/,an, 4/eto/ia, and 4o/t 5.i7a,eth. St/ategie' u'ed: ,oth
4u.. and 4u'h at =$nt/oduction> (e/iod.
A)3%!'-$%.%0': 0ocu' on ad-e/ti'ing in edia. $n the int/oduction 'tage, 1e
1i.. 'c/een the t/ai.e/' o0 ou/ (/oduct' on the edia 'ea.e''.y in the (/ietie, 'o
that cu'toe/' a/e a1a/e o0 ne1 (/oduct' a' 1e.. a' c/eating -a.ue 0o/ (/oduct'. Co/
agent', 1e gi-e the =%$S:4 u,/e..a'> to (/oote (/oduct' togethe/ 1ith
,i..,oa/d' in (u,.ic (.ace'.
TV ADS: $nitia..y *inaAcecoo) 1i.. 0ocu' the (/oduct to the o00ice 1o/)e/'
and thei/ chi.d/en, then the enti/e 0ai.y 1ith -i-id and co.o/0u. iage, 1ith 0ocu'
on (henoenon 0.a-ou/' and .o1 in ca.o/y. The coe/cia.' 1i.. ,e at ,/ea)0a't
and dinne/ tie o0 South A0/ican 0ai.ie'. *inaAcecoo) 1i.. ,e a '(on'o/ 0o/ EDea.
o/ No Dea.E, a (o(u.a/ te.e-i'ion 'ho1 in South A0/ica. The acti-itie' 1i.. inc.ude
.aunching =CF55 *inaAcecoo) %ea.'> ca(aign in coen'u/ation o0 20 yea/' o0
*inaAcecoo) in the a/)et.
D-+-'/* M/!7%'-0+: 9e 1i.. (/int %$S:4 ad-e/ti'eent' in Sunday Tie'
and Fa((o/t, the t1o o't (o(u.a/ ne1'(a(e/' in South A0/ica. %$S:4 in'tant
nood.e' 1i.. a.'o a((ea/ in 'oe on.ine ne1'(a(e/: 111.,d.i-e.co.7a
?+ohanne',u/g@, 111.city(/e''.co.7a ?+ohanne',u/g@, 111.ca(etie.co.7a ?Ca(e
To1n@B
S/*%$ "!#.#'-#0 : o/gani7e 0o/ cu'toe/' to t/y the (/oduct in 'u(e/a/)et'
and a/)et',B to att/act cu'toe/' ,y 'ugge'ting the need o0 u'ing nood.e',
(/e'enting a nu,e/ o0 additiona. (/oduct' 0o/ cu'toe/' ?5g: ! Q 1, " Q 2,...@ on
e-e/y o/de/ to enhance thei/ ,ene0it'. Be'ide', 1e 1i.. inc/ea'e Coe/cia.
di'count 0o/ the 'a.e' dea.e/' that ha-e ')y/oc)eted in the 0i/'t 'tage to i(/o-e
thei/ e00ecti-ene'' and ,inding the to 0ocu' on ou/ (/oduct'.
P4*-& R%*/'-#0$: The Acecoo) C.u, D the chi.d/en unde/ 14 1i.. ,e in-ited
th/ough (/e'' ad-e/ti'eent' and gi-ing .ea0.et' to ,ecoe a e,e/ o0 Acecoo)
c.u, 1ith the condition that the chi.d 'end' .ogo' cut 0/o " e(ty Acecoo)
1/a((e/'. Acecoo) (/oAect' it a' =Acecoo) c.u,,e/' a/e 0un .o-e/'> and intend' to
u'e it a' /e0e/ence g/ou(. Bene0it' o00e/ed to Acecoo)Dc.u,,e/' a/e -a/iou' gae'
.i)e C/ea)ing %ath gae, C.a((y ,i/d conte't, T/a-e. th/ough South A0/ica gae,
18
Di'ney today coic. To o,tain one gi0t the e,e/ ha' to 'end " 1/a((e/' a'
(u/cha'e (/oo0. Soe '(ecia. (/i-i.ege' 1i.. ,e gi-en to /egu.a/ e,e/' tie to
tie .i)e, di'count tic)et' o0 A((u Jha/. #/gani7ed Acecoo) 'choo. 2ui77e' and
')etching.
3.4. P!-&%
$n'tant nood.e i' a (/oduct 1hich ha' high (/iceDe.a'ticity o0 deand and
South A0/ica i' a ,ig (otentia. a/)et 1ith a 1o/.dDc.a'' and (/og/e''i-e .ega.
0/ae1o/). 9e 'e.ect the 0o..o1ing (/icing ethod' to a-oid the du(ing, a)e
(/oduct' ent/y a/)et ea'i.y and /a(id.y e6(and the a/)et.
P%0%'!/'-#0 S'!/'%+,: 9e u'e thi' -a.uation ethod to (enet/ate the a/)et
a' thi' i' the 0i/'t tie *inaAcecoo) int/oduce in'tant nood.e' in South A0/ica ; The
(/ice 1i.. ,e .o1. A0te/ %$S:4 ha' gained a (o'ition in South A0/ican a/)et, 1e
1i.. int/oduce ne1 (/oduct .ine': King Che0 ?1ith t1o 0.a-ou/': Sea0ood and
Kichi@ and Bean *e/ice..i =Jood> 1ith highe/ (/ice.
9#'/'-#0 :I0 U0-'%) S'/'%$ D#**/!; < 2#! 2-0/* $%!$
#$ase on http://southafricanfood.ie/store/category/2/!0!/"aggi/ #
$te' Co(etito/'3 (/ice
?%aggi@
*inaAcecoo) 4/ice
1 (ac) 1.00 0.99
" (ac)' in (.a'tic ,ag
?onoD0.a-o/@
4.L" 4.L0 ?" Q 1@
" (ac)' in (.a'tic ,ag
?u.tiD0.a-o/@
D 4.L" ?" Q 1@
10 (ac)' in (.a'tic ,ag 9."0 9.00 ?10 Q 2@
10 (ac)' in (.a'tic ,ag
?u.tiD0.a-o/@
D 9.2" ?10 Q 2@
!0 (ac)' in ca/ton 2K.00 26.00 ?!0 Q "@
19
CHAPTER 4: CONCLUSION
Th/ough the in-e'tigation and /e'ea/ch to gain an in'ight into South A0/ican
in'tant nood.e a/)et, 1e decided that thi' i' a -e/y (otentia. and (/oi'ing (.ace
0o/ in-e'to/' to (ut thei/ 0ootho.d' into. Ci/'t.y, South A0/ican econoy i' e6(.oding
and they a/e at the oent the ,e't econoy in South A0/ica. The (eo(.e a/e
getting o/e (/o'(e/ou' and ha-e the intention o0 '(ending o/e oney to i(/o-e
.i0e 2ua.ity. Second.y, South A0/ican go-e/nent i' /e0o/ing it' econoic (o.icie',
the in0/a't/uctu/e and the .ega. 'y'te to att/act o/e in-e'tent' to the count/y.
Thi' e6(.ain' 1hy in the coing yea/', the 0.o1 o0 in-e'tent 1i.. .and in South
A0/ica. At the oent, gaining a (o'ition in thei/ a/)et 1i.. ,e a 'a/t o-e 'ince
the co(etition 1i.. get toughe/ day ,y day. 9e con'ide/ it i' a -e/y 't/ategic
deci'ion o0 *inaAcecoo)3' attac) in South A0/ican in'tant nood.e a/)et. Oa't ,ut
not .ea't, 1e ha-e to ta)e *inaAcecooo)3 e6(e/ience and 'o(hi'tication in the
in'tant nood.e indu't/y. The co(any ha' (/oduct' 'o.d in o/e than 40 count/ie'
ac/o'' 5u/o(e, Ae/ica, Au't/a.ia and A'ia. $t3' thei/ 't/ength to ha-e unde/'tanding
a,out ho1 to 'ucceed in 0o/eign a/)et', then e6(e/ti'e the )no1.edge th/ough
ada(ting the 0.a-o/' and ethod'. *inaAcecoo)3 highD2ua.ity (/oduct', e6ce..ence
and e6(e/ti'e 1i.. ,e the ,a'i' 0o/ thei/ 'ucce'' in South A0/ican a/)et.
Th/ough tho/ough in-e'tigation, 1e ha-e 0igu/e out the ,e't ent/y 't/ategy
0o/ *inaAcecoo). $n the ea/.y 'tage, %$S:4 1i.. ,e e6(o/ted 0/o *ietna to
South A0/ica due to the c.o'e geog/a(hic di'tance and .o1 (/oduction co't o0
*ietna. 4/oduct' then 1i.. ,e 'o.d to the agent' ,y *inaAcecoo) %anageent
co(any. The (/oduct (/ice in South A0/ica 1i.. ,e dete/ined ,y *inaAcecoo)
1ith 'a.e' (o.icy. A0te/ 1 yea/, 1e intend to ,ui.d 0acto/ie' in the /u/a. a/ea' o0
+ohanne',u/g and Ca(e To1n 'o that (/oduct co't' 1i.. get .o1e/ and o/e (/oduct
.ine' 1i.. ,e int/oduced. C/o South A0/ica, *inaAcecoo) can e6(and thei/ a/)et
to Kenya, Bot'1ana, Ango.a, DF Congo, Nige/iaB Thi' ent/y 't/ategy 1i.. he.(
*inaAcecoo) /educe the /i')', o,tain unde/'tanding a,out the a/)et, .o1e/ the
co't' and gain a co(etiti-e (o'ition again't co(etito/'.
20
REFERENCES
1. SAin0o /e(o/te/, 2012, South A0/icaH' geog/a(hy,
htt(:<<111.'outha0/ica.in0o<a,out<geog/a(hy<geog/a(hy.htR.:2(TA4.StS(
2. Jo-e/nent Counication and $n0o/ation Sy'te Fe(u,.ic o0
South A0/ica, 2012, South A0/ica &ea/,oo)
3. SouthA0/ica.in0o /e(o/te/, 2012, Di't/i,ution and 'a.e' in South
A0/ica, htt(:<<111.'outha0/ica.in0o<,u'ine''<t/ade<i(o/t<i(o/tD
di't/i,ution.htR.:2(SD-.StS(
4. SAin0o /e(o/te/, 201!, South A0/ica: econoy o-e/-ie1,
htt(:<<111.'outha0/ica.in0o<,u'ine''<econoy<econo-e/-ie1.htR.:2(*SS.St
S(
5. 9i)i(edia, 2014, Cu.tu/e o0 South A0/ica,
htt(:<<en.1i)i(edia.o/g<1i)i<Cu.tu/eSo0SSouthSA0/ica
6. South A0/ica (o.itic', 201!, htt(:<<111.'a(o.itic'.co.7a<