MARKETING PLAN: SOUTH AFRICA

Ashley Weis, Briahna Dooley-Newbill, Emma Mulcahy,

Jayce Jiang, Johana Rolles, Virginia Bohorquez

University of South Florida

MAR 4156: International Marketing

Dr. Jeannette Mena Mercado

April 24, 2023

MARKETING OBJECTIVES:

South Africa, with its sizable and diverse population, offers a promising market for the Samsung Galaxy

Chromebook. Through our previous research, we identified South Africa's largest population portion being 15-

64 years accounting for 66.17% of the total population (Explore All Countries South Africa, n.d.) (see Figure

A1). Our target market consists of professionals aged 25-40 years, as these individuals have the most significant

income levels, purchasing power, and labor force participation among any age group. This group of individuals

is typically college educated and are well into their careers, prioritizing productivity, and mobility. They are

interested in new technology and enjoy the convenience of staying connected while having the excess income to

purchase new high-quality products to fit their needs.

Our marketing plan aims to achieve the following: increase Samsung's brand awareness and become the

leading laptop vendor in the South African market. Currently, "in the PC category, HP Inc. leads the way in

2022 with a 23.8%-unit share" (Southern Africa Desktop, 2022). By building brand credibility, we will establish

the Samsung Galaxy Chromebook as the most reliable and high-performing laptop device, surpassing HP.

Regarding sales figures, we aim to sell at least 30,000 units within the first year of our product launch and

project growth of 20% in the following years. Within three years from our introduction, our objective for

market penetration is to achieve at least 15% of the market share.

We plan to introduce and market the Samsung Galaxy Chromebook in South Africa's major population

centers, Johannesburg, Cap Town, and Durban (see Figure A2). We would establish partnerships with retailers

and promote the product through traditional and digital marketing campaigns. These South African cities are

commerce, trade, and tourism centers, creating a large pool of potential customers, accounting f or 18.4 million

people (Thompson et al., 1993). Much of South Africa's wealth is generated from these three cities as they serve

as economic hubs. These cities are home to government institutions, industrialized centers, and universities. As

"employment growth continues to be boosted by tech development," it will allow us to create our position

within the market (The best place, 2019). The combination of a growing population and urbanization creates a

promising market for expansion.

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PRODUCT ADAPTATIONS OR MODIFICATION:

The Samsung Galaxy Chromebook will be adapted to the South African market by carefully considering

the cultural and economic environment to achieve the best implementation method and ensure a successful

expansion into the market. Two key features will be made to better adapt to the population: language and product

differentiation. Language is critical in introducing this product to the South African public. “There are eleven

major languages of South Africa: Afrikaans, English, Swazi, Sotho, Swan, Ndebele, Venda, Zulu, Northern Sotho,

Tsonga, and Xhosa" (Misachi, 2017) (see Appendix B). Since the population is highly diverse, the Galaxy

Chromebook should have the option of being accessible in all 11 languages so that everyone can easily navigate

their way regardless of their spoken language avoiding discrimination or limitations.

To make the laptop more accessible to different income levels Samsung should modify its laptop by

creating various options in hardware and features. South Africa has an unemployment rate of 35% and an inflation

rate of 4.6% in 2021 and 6.9% in 2022 (Focus Economics, 2023). While a portion of the population has significant

level purchasing power in the three main cities of Johannesburg, Cape Town, and Durban, a sizeable portion of

the population is also limited in its resources to purchase innovative technology. By including different variations

of the product, such as a pro, and standard, Samsung can offer products with more or fewer additions, that range

in price. The variety of options mean the product will have a larger customer base due to its accessibility, ensuring

everyone has an option depending on their needs. Overall, these are two modifications Samsung should make to

have a smoother adaptation and transition into the South African market, ensuring customer satisfaction.

PROMOTION MIX:

Our objective in promoting the Samsung Galaxy Chromebook in South Africa is to improve brand

recognition and strengthen marketing efforts. We must expand the types of promotion strategies by generating

leads and by building consumer relationships. In South Africa, direct selling, face-to-face selling tactics, and

specific digital advertising would be most beneficial.

Television and video advertising heavily influence advertising in South Africa, and this is where most

spending is allocated as it relates to advertising (Bromhall, 2023). The most efficient advertising, in this case,

would be video ads with an initial strategy focused on increasing brand awareness. When creating video
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promotion, it is important to consider your target audience, which in our case is professionals ages 25-40. By

creating engaging videos that demonstrate aspects of their daily lives, we can foster a relationship between our

product and target market which will potentially lead to digital and word-of-mouth promotion.

Using advertisements on online marketplaces is crucial for businesses looking to reach their audience.

The leading online marketplace in South Africa is Takealot, which sells a wide range of products categories

including electronics (EcommerceDB, 2022). They charge a monthly fee of 400 rands per seller account/month

(Takealot, 2023). It is important to consider not only selling products on this platform but promote

advertisements. Once we expand or premotion to online markets, we can implement social media marketing

with targeted ads for the Samsung Galaxy Chromebook.

To build brand awareness and customer loyalty, it is essential to implement face-to-face selling tactics

such as in-store sales. When engaging in face-to-face sales, it is crucial to upsell the product and explain how it

fulfills the customer's needs. For instance, highlighting the benefits of the Chromebook wide displaying cloud

storage. Considering South Africa's culture, it's essential to convey how purchasing the Chromebook provides

benefits and convenience to their everyday lives in our advertisement and promotion.

CHANNELS OF DISTRIBUTION:

Direct distribution can be used to sell the Samsung Galaxy Chromebook through the company's website

or physical stores. This allows Samsung to control the marketing and sales process and provide high customer

service and support. Direct distribution also allows Samsung to showcase the product's features and benefits

directly to potential customers.

Retail distribution can be used to sell the Samsung Galaxy Chromebook through electronics retailers

such as Dion Wired, Makro, and Incredible Connection. Topalot, Gumtree, Amazon, Makro, and Woolworth

are South Africa's top eCommerce & Shopping websites (Top) Retail distribution allows Samsung to reach a

wider audience and leverage the retailer's existing customer base (Similarweb, n.d.). To achieve the distribution

goals in South Africa, the following types of middlemen can be used:

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 • Distributors: Samsung can expect distributors to manage inventory, warehousing, and logistical services,

of the Samsung Galaxy Chromebook. They should also provide after-sales support to retailers and users.

By using distributors, Samsung can achieve its goal of reaching more retailers without having to manage

multiple relationships.

• Agents: Samsung can expect agents to represent the company in the South African market. Agents

should provide market intelligence, negotiate prices and terms of sale, and ensure that orders are

fulfilled on time. Using agents, Samsung can establish relationships with retailers and ensure the

Samsung Galaxy Chromebook is prominently featured in stores

• Retailers: Samsung can work with retailers (listed above) to sell the Chromebook directly to customers.

Retailers can provide a physical location for customers to see and touch the product before purchasing.

They can also provide promotional activities such as product demos, discounts, and bundle offers to

attract customers.

PRICE DETERMINATION:

To import goods into South Africa, businesses or individuals must attain a document called the “bill of

entry,” which details information about the imported good. However, it’s crucial to note that the person or entity

who applies for the bill of entry is the only one that can continue with the process of importing goods through

customs, for example, Samsung laptops into South Africa.

Samsung primarily uses FedEx international airfreight shipping to move products in and out of the country

and would also use their services for South Africa. The FedEx website explains that they can ship anywhere

worldwide if an address is provided (How to ship internationally, n.d.). The estimated cost for airfreighting 250

pounds of product could range Samsung between $3,000 to $8,000. Alongside airfreighting, Samsung uses sea,

express, and multimodal transport. Samsung already uses this technique in 36 different countries. In addition to

using FedEx, Samsung will also work with the American trucking association. Their transportation cost is

accounted for in a 30 percent cut in customs, and in addition, the insurance cost for transporting these Samsung

goods is 0.15% of the total value of goods being shipped and ordered. In addition to shipping costs, Samsung

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must consider customs and handling expenses, as the South African Government would also be taking an import

tax “end rate of 30 percent on finished goods” (Import tariffs, 2021). The customs policy is taken as a flat-rate

assessment. The flat- rate is 20% on goods that are acquired abroad. There is also a limitation of $20,000 per

person. This helps to encourage South Africans to choose to purchase goods from in the country and balance out

the cash flow if people choose otherwise.

Price is a crucial factor in developing a marketing strategy, especially in South Africa a developing

country. To import goods in South Africa It is important to consider their complex tariff structure, which can

make it difficult for some importers; with around eight levels ranging from zero to thirty percent (South Africa

Commercial Guide, 2021). There are other import rates to be aware of in South Africa such as the Most Favored

Nation (MFN) which applied to imports from other countries. South Africa has a value-added tax of 15% on

nearly all imports as well as a 10% tax on “upmarket” (Prestigious) goods. Companies may apply for rebates on

tax if the government approves it.

Costs do not directly affect what the price of the product will be. It is important to be aware of the different

competitive prices and demographics in the market. Samsung Galaxy Chromebook buyers are paying for the

product's brand and quality which includes screen size, storage capacity, and other features (Jacobs, 2023). To

attract our target demographic of business professionals, we will determine a price range that is competitive with

our largest competitor, HP, and affordable for our customer. In South Africa, the average cost of an HP laptop is

around RR6,500.00 ($390 USD) (HP Store, 2020).

Overall, factoring in all elements we believe that the price of the Samsung Galaxy Chromebook in South

Africa should be around R6,000.00 ($360 USD). This price is in the middle of the competitive price range with

HP Chromebooks. South Africans spend on average around 5 hours a day using the internet on computers which

is higher than the global average (South Africans spend, 2019) (See Appendix C). Therefore, based on the

demographics and economic environment of South Africa, the price is highly accessible to our target market.

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 REFERENCES:

Bromhall, M. (2023, February 3). A guide to advertising in South Africa. SME South Africa. Retrieved April

19, 2023, from https://smesouthafrica.co.za/a-guide-to-advertising-in-south-africa/

Central Intelligence Agency. (n.d.). Explore All Countries South Africa. Central Intelligence Agency. Retrieved

April 3, 2023, from https://www.cia.gov/the-world-factbook/countries/south-africa/#people-and-society

ecommerceDB. (2022). E-commerce revenue analytics takealot.com. takealot.com revenue |

ecommerceDB.com. Retrieved April 19, 2023, from https://ecommercedb.com/store/takealot.com

Focus Economics. (2023, February 15). South Africa inflation (CPI, Ann. var. %, AOP). FocusEconomics.

Retrieved February 25, 2023, from https://www.focus-economics.com/country-indicator/south-

africa/inflation

Galal, S. (2022, December 16). South Africa: Cities with largest population 2022. Statista. Retrieved April 13,

2023, from https://www.statista.com/statistics/1127496/largest-cities-in-south-africa/

How to ship internationally. FedEx. (n.d.). Retrieved April 23, 2023, from https://www.fedex.com/en-

us/shipping/international/how-to-ship.html

HP Store. (2020). Laptops: HP Store South Africa: Get laptops, desktops, printers & more: HP store. Laptops |

HP Store South Africa | Get Laptops, Desktops, Printers & More | HP Store. Retrieved April 21, 2023,

from https://www.hpshop.co.za/shop/hp-laptops

Import tariffs. International Trade Administration | Trade.gov. (2021). Retrieved April 23, 2023, from

https://www.trade.gov/country-commercial-guides/south-africa-import-tariffs

Jacobs, P. (2023, January 17). Laptop prices in South Africa (2023). South Africa Lists. Retrieved April 17,

2023, from https://southafricalists.com/laptop-prices-in-south-

africa/#:~:text=Laptop%20prices%20in%20south%20africa%20can%20be%20anything,depending%20on

%20the%20model%20and%20features%20you%20want.

Misachi, J. (2017, April 25). Languages of South Africa. WorldAtlas.

https://www.worldatlas.com/articles/languages-of-south-africa.html

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Similarweb, (n.d.). Top Ecommerce & Shopping Websites Ranking in South Africa | Similarweb. Retrieved

April 19, 2023, from https://www.similarweb.com/top-websites/south-africa/e-commerce-and-shopping/.

South Africans spend over 8 hours a day online - businesstech. (2019, February). Retrieved April 21, 2023,

from https://businesstech.co.za/news/internet/296716/south-africans-spend-over-8-hours-a-day-online-

and-a-third-of-that-time-is-spent-on-social-media/

Southern Africa desktop market sees strong growth in H1 2022 as shipments of tablets and notebooks decline.

IDC. (2022, August 16). Retrieved April 4, 2023, from

https://www.idc.com/getdoc.jsp?containerId=prMETA49591522

Takealot. (2023). Sell your products online: Seller solution. Sell your products online | Seller Solution.

Retrieved April 19, 2023, from https://www.takealot.com/sell

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people-who-are-hiring/

Thompson, L. Monteath , Hall, . Martin , Bundy, . Colin J. , Nel, . Andries , Gordon, . David Frank , Mabin, .

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 APPENDIX A

Figure A1

South Africa’s Age Breakdown

Age Breakdown

7%
27% 0-14 years:
15-64 years:
65 years and over:
66%

Note. chart demonstrates South Africa’s population percentages just based on age. Most of the population is

concentrated within the ages of 15-64.

Figure A2

South Africa’s Largest Cities

Note. The chart displays South Africa’s List of South Africa’s largest cities by the number of residences.

Retrieved from Largest cities in South Africa 2022, by Saifddin Galal. 2022.

(https://www.statista.com/statistics/1127496/largest-cities-in-south-africa/). In public domain.

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 APPENDIX B

Languages of South Africa

Note. The chart shows the distribution of the 11 spoken languages in South Africa in terms of percentage of

population and number of speakers. Retrieved from Languages of South Africa, by John Misachi. 2017.

(https://www.worldatlas.com/articles/languages-of-south-africa.html). In public domain.

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 APPENDIX C

Average time South Africans spend using internet on computers

Note. This graph displays the average daily time spent using the internet using computers for several countries

including South Africa. Retrieved from South Africans spend over 8 hours a day online, by Business Tech.

2019. (https://businesstech.co.za/news/internet/296716/south-africans-spend-over-8-hours-a-day-online-and-a-

third-of-that-time-is-spent-on-social-media/) In public domain.

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