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Two-A-Day: A Choice of Target Market Selection of Apple Export Business

Kyle Huggins, Mias Pretorius, Johan Burger, Jeff Overby
January 1, 2016
SKU:
BUS-004797
Region: 
Africa
Topic: 
Operations
Length: 
17 pages
Keywords: 
Target Market Selection, Exports, Imports, South Africa, Apple Industry, Branding, Sourcing
Student Price: 
$4.00 (€3.45)
Average rating: 
0

Before 2008, the Two-a-Day Group and other apple growers in South Africa had been successful in exporting their fruit to the EU and UK at healthy profits. But with the global recession, market share and profitability continued to diminish leaving these businesses with a difficult decision to make - which target market would they focus on and what would their strategy be moving forward in the face of each of the challenges these strategies represented? Standing at a crossroads, South African exporters were left with only a few options. That is, wait it out and hope the European economy recovers, change focus towards growing African economies, or band together by forming an alliance to target a global market. Each of these choices was compounded by regional taste differences and complex distribution challenges, forcing these companies to conduct a large amount of marketing research to guide their strategic decisions.

Learning Outcomes: 
  1. Develop criteria for evaluating the revenue potential of targeting a developing market.
  2. Discuss the overall advantages and disadvantages of doing business in Africa.
  3. Evaluate specific countries within Africa to determine if Two-a-Day can legitimately export to these countries.
  4. Explore the feasibility of the capital investment needed to change apple varieties.
  5. Research BEE (Black Employment Empowerment) in South Africa and discuss its potential effects on marketing to developing countries.
  6. Investigate the possible strategies required to brand the entire SA apple industry.