Case Study : South African Household

1413 WordsMay 21, 20166 Pages
1. Company Background: Analysis of Domestic Background: Twinsaver is a South African company that manufactures and distributes roller towels, facial tissues and toilet paper (Bloomberg, 2016a). The company´s goal is to help parents teach their children about the importance of hygiene, aiming at family households as their main target market (Twinsaver, 2015). South African household income distribution is among the world 's most unequal, creating a highly budget-conscious consumer segment (Euromonitor International, 2015a). 91 per cent of South African consumers prefer low-priced economy and standard toilet paper (Euromonitor International, 2015b). Twinsaver advertises their products through televised advertisements and social media,…show more content…
2. SWOT Analysis: A SWOT analysis is used to determine Twinsaver´s strengths, weaknesses, opportunities and threats (van Assen, van den Berg & Pietersma, 2008, p. 64). 2. SWOT Analysis: A SWOT analysis is used to determine Twinsaver´s strengths, weaknesses, opportunities and threats (van Assen, van den Berg & Pietersma, 2008, p. 64). Twinsaver´s strengths in the South African market include market leadership, low distribution costs and high brand recognition. None of these strengths transfer directly to the Australian market place, as Twinsaver 's brand is unknown to most Australian consumers. Alternatively, the company´s use of social media might be an advantage as most Australian retailers offer online shopping opportunities to their consumers. The growing population and increasing disposable income in Australia indicate a growing market opportunity but the Australian market for toilet paper is dominated by high competition among the three current market leaders, and the barriers to entry are high. Importation costs reduce the benefit of low cost South African production but favourable exchange rate trends and forward hedging benefits may support margins (Bloomberg, 2016b). 3. Analysis of Australian Market: Australian Consumer Behaviour: In researching consumer behaviour to develop a successful marketing strategy (Roy, 2009)a number of key Australian consumer behaviours become apparent. The most influential are: Indicators: Recent Trends:
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