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Global Marketing
Section E1
Final Project
Submitted By
Ammar Tahir
L1F19MBAM0076
Haroon Sajid
L1F19MBAM
Arbab Arif
Laraib
Presented to
Dr. Zeeshan
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PART 1: INTRODUCTION TO THE CULTURE OF THE COUNTRY
I.
Profile of the Company
Footwear Industry of Pakistan
Pakistan’s produces a huge variety of footwear to fulfill the needs of its various customers. Pakistan
produces a variety of shoes such as joggers, sandals, boots, dress shoes, casual shoes, slippers, heels and
much more. These footwear are for men, women, and children for every event and occasion and footwear
are made even on special order with requirements according to customer needs. Footwear are made for
every sector weather you are a policeman, soldier, athlete, student, businessman, or any other profession
you can get the footwear according to your need. Footwear are made even for the disabled on special
requirement to match their needs. The population of Pakistan in 2020 is almost around 220 million
approximately which is equal to 2.83% of the total world population. If we assume an average every
average every person owns 2 pairs of shoes that will make total production of footwear to 440 million per
year.
The cottage industry of Pakistan are the main supplier of the bulk of the domestic needs according to the
changing designs and taste of the customers. The factories can produce around 2500 pairs in one day and
large industries with heavy machinery can even produce up to 10,000 pairs in a days’ time including all
types of footwear. Pakistan exported footwear of worth 12.617 million in July 2020. Pakistan’s footwear
export increased up to 4.29% as compared to previous year.
Markhor
Markhor is a Pakistani Footwear brand which specializes in making
handcrafted shoes with latest trends and modern designs to match
the needs of the customers. Markhor started with an idea that best
products are made with passion and many hours of labor. The have
some of the best and most skilled craftsmen in the world. The brand
name Markhor is named after an endangered species of wild goats
that are natively found in mountainous region of northern Pakistan.
The leather used for creating Markhor products comes from animals
that have been bred only for meat production.
Website Link
https://markhor.com/
Products of Markhor
Markhor produces a variety of shoes for both men and women.
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Men shoes: Boots, chappal, dress shoes, loafers, and slides
Women shoes: Mules, sandals, shoes
Peshawari Chappal
Peshawari chappal is a traditional footwear in Pakistan it is a kind
of sandal mostly worn by Pashtuns of Khyber Pakhtunkhwa
region. Its name originates from Peshawar where it is originated
from. While chappal means sandals in Urdu language.
Markhor makes Peshawari chappal and it is one of their best
products. They follow the latest trends and designs to make
these sandals and they have world’s best craftsmen to produce
these shoes.
II.
Country’s relevant History
South Africa is referred to as the rainbow city as it is made up of diverse cultures and religions.
South Africa mostly have rural inhabitants. Among these people they have strong culture and
traditions South Africans have become urbanized and they are starting to follow latest trends of
the world. South Africa is composed of all these various influences is essential for helping South
Africans to understand and respect each other and to learn from each other’s cultural practices. In
South Africa the vision of the constitution is for everybody to be equal. This means that nobody
should be permitted to discriminate against anyone else because of things like skin color, age,
religion, language or gender. South Africans have human rights that are protected.
III.
Geographical Settings
Location
South Africa, is located at the southernmost region of the African continent. Two oceans border
South Africa which are Indian Ocean and Atlantic Ocean. The inside of South Africa consist of high
low smooth plateau which mostly covers South Africa. Lesotho and Swaziland is in the eastern
portion of South Africa while Namibia, Botswana, Zimbabwe, and Mozambique to the north side
of South Africa. South Africa surface area covers 1,219,602 km2.
Climate
Due to its subtropical location, it has a moderate climate due to its three sided rivers. And the inner
plateau have warm and humid weather conditions. It’s a very dry country with low rainfall of 464
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mm. western capes get most of the rainfalls in winter season. Temperature is South Africa tends
to be lower than other countries mainly because of greater elevation above the sea level.
IV.
Social Institutions
Family

Dynamics of the Family
The families in South Africa are generally affectionate expressive and protective. One of the
most important aspect is politeness which is a part of their culture. Religion is one of the
most important part of their family and religious gathering are held on weekly basis which
is quiet common. Their families are mostly small and stay together. Extended family
members help and support one another in times of need or crisis. Women are mostly
responsible for handling the household but in urban areas both men and women work
outside jobs.

Marriages
Under the South African law 3 type of marriages are recognized. The civil marriage, civil
union, and customary marriages. When you enter in a civil marriage or civil union you are
issued a handwritten certificate at the ceremony by the marriage officer which is free of
charge. When one partner passes away you need to prove by the marriage certificate I order
to marry someone else.
While customary marriage is negotiated by any system of South African customary law. You
must register you customary marriage in order to make it legal within 3 months after its
celebration. That can be done by the department of home affairs.
Education
 Literacy Rate
The literacy rate of South Africa 87.05% in which people who are above the age of 15 who
can understand simple statements and can read or write. The literacy rate of South Africa
keeps declining every year.
Political System

Political Structure
South Africa is a democratic country with 3 tier system of government and independent
judiciary system. The national, provincial and local level of governments have their
legislative and high authority in their own circle. South African traditional leaders are
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operating at both National and provincial level act as advisors. South African government
focuses on building a free, racial free, non-sexist, democratic and successful country.

Stability of Government
South Africa has relatively stable democracy dominated by the one political party. Its
freedom score in 58.8 making it 106th freest country in 2020 index. The South African
economy fells into mostly unfree category after being in the rank moderately free for 24
years.
Legal System

Organizations of the judiciary system
South Africa Judiciary consist of the following:
The Chief Justice of South Africa, the Deputy Chief Justice and the other judges of the
Constitutional Court
The President, Deputy President and other judges of the Supreme Court of Appeal
The Judge President, Deputy Judge President and other judges of each of the High Courts
Regional and district magistrates of the Magistrates' Courts
The judges of other courts established by Act of Parliament.

Code, common, socialist, or Islamic law country
South Africa has a 'hybrid' or 'mixed' legal system, formed by the interweaving of a number
of distinct legal traditions: a civil law system inherited from the Dutch, a common law
system inherited from the British, and a customary law system inherited from indigenous
Africans (often termed African Customary Law, of which there are many variations
depending on the tribal origin). These traditions have had a complex interrelationship, with
the English influence most apparent in procedural aspects of the legal system and methods
of adjudication, and the Roman-Dutch influence most visible in its substantive private law.
Organizations

Social classes
South Africa has 5 social classes. The elite, the stable middle class, the venerable middle
class, the transitory poor and the chronic poor class. Only one in four South African are
either a part of the middle class or the elite class.
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
Race, ethnicity, and subcultures
The racial groups in South Africa have a variety of origins. Statistics South Africa asks people
to describe themselves in the census in terms of five racial population groups. The 2011
census figures for these categories were Black South African at 76.4%, White South African
at 9.1%, Colored South African at 8.9%, Asian South African at 2.5%, and Other/Unspecified
at 0.5%. The majority population of South Africa are those that classify themselves Black or
indigenous South Africans, Africans or Black people of South Africa, but they are not
culturally or linguistically homogeneous.
Business customs and practices
South African business culture is set apart by business, individual accomplishment and
social affectability. Since the general public is multi-ethnic, qualities and practices of people
vary firmly relying upon the miniature social gatherings to which they have a place. Yet,
persistence, resistance and imagination are winning qualities for some South Africans. The
business culture of the population is like Western culture: productivity and seriousness
arranged. This social variety can make powerful group building complex.
V.
Religion and Aesthetics
Religion and other belief system
 Which religions are prominent
South African population comprises 80% of christens. Other major religions are Muslims,
Hindus, and Jews. There are some traditionalist with no specific religion and they are
minority have no major religion.
Aesthetics
 Visual arts
South African art is the visual art produced by the people inhabiting the territory occupied
by the modern country of South Africa. The oldest art objects in the world were discovered
in a South African cave. Archaeologists have discovered two sets of art kits thought to be
100,000 years old at a cave in South Africa.

Music
Music of south Africa is generally divided into two categories one was music of white having
roots of European music the other was the music of the blacks having root of ethnic
traditions. South African music consist of mixture of house music, Jamaican reggae and
American hip hop. Opera and classical music are strongly represented in country and they
have many music festivals throughout the year.
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VI.
Living Conditions
Diet & Nutrition
 Meant & Vegetable consumption rate
South Africans eat: 67% meat and starch – with only sporadic vegetables. The
average South African plate consists of 41% starch, mostly bread, and 26% meat,
mostly chicken. That is true across demographic and regional groups.

Typical meals
A typical West African meal is made with starchy items and can contain meat, fish as well
as various spices and herbs. A wide array of staples are eaten across the region, including
fufu, banku, kenkey (originating from Ghana), which are served alongside soups and stews.

Malnutrition rate
In South Africa 13% of children under the age of 5 are overweight while 27% are stunted.
Among teenager 15-19 years are mostly overweight ranges from 8.6-27% while stunting is
12.9%.

Foods available
South Africa is food secure at national level, the country is still food insecure at household
level as not all households have access to adequate food. Almost 20% of South
African households had inadequate or severe inadequate access to food.
Clothing
 National Dress
Traditional Zulu dress code is animal skin for men and skirts decorated with hardwood
beads for women. The Indian ethnic clothes are dhoti, kurta, and salwar kameez, sari,
turban and sherwani for men. Xhosa dress includes intricately sewn designs on blankets
that are worn by both men and women as shawls or capes.

Type of clothing worn at work
The general business attire for men are short tie and business suit. Women also wear dress
or a business suit.
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Recreation, Sports and other leisure activities
 Types available and in demand
The most popular sports are Football, Rugby and cricket in South Africa. Football is among
the most popular among all the other sports which mostly play by Black Africans.

Percentage income spent on such activities
3.81% of income is spent on recreational activities by an average household in Africa.
Health Care system
Health services through government-run public clinics and hospitals. However, everyone can
access both public and private health services, with access to private health services depending on
an individual's ability to pay.
Health care in South Africa varies from the most basic primary health care, offered free by the
state, to highly specialized, hi-tech health services available in the both the public and private
sector. However, the public sector is stretched and under-resourced in places.
VII.
Language
Official Language
In Africa there are total of 11 official languages including Afrikaans, English, Zulu Xhosa, Ndebele,
Venda, Swati, Sesotho, Sepedi, Tsonga and Tswana. Due to this mixed languages it is rainbow
nation.
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PART 2: ECONOMIC ANALYSIS OF THE COUNTRY
I.
Introduction
South Africa is the most important country in the African continent. And is leading the region in terms
of global competition and being a pioneer to many innovations and technological advancements. It
has been a home to almost 75% of the largest African companies. Its economy grew around 0.2 % in
2019 which is still better than 0.8% decline in 2018.
Before the covid-19 situation it was the leading African economy but recently Nigeria took its place
as the largest African economy. South Africa’s total debt is getting worse at 64.2%, also in the next
coming years the debt is expected to increase by around 67% which will affect the total spending.
Though Government claims they are trying to overcome the situation but the reality is that they are
facing a high rise in public debt and this has been the key factor in their overall reduction in global
competitiveness. Budget deficit also saw an increase of 5.1% in 2021. The unemployment rate also
gets affected due to the covid-19 situation. Also, a large majority faces threats due to increase in HIV
infection rate but the overall life expectancy is high. South Africa is the largest producer of diamonds,
gold and other rich mineral resources. It produces 60% of the world’s coal reserves and 80% of the
platinum production. The industrial sector is also a key contributor to the countries overall economy.
Service sector is also on the boom and accounts around 60% of the world’s economy. Real state and
business services are the key sectors. On the other hand, agriculture represents a relatively smaller
contributor to the country’s economy with only 5%.
According to the statistics department of SA tourism is the key factor too in supporting the economy.
FIFA world cup that happened back in 2010 gave a significant boom to the economy and stability.
II.
Population
Total
 Population
South Africa’s population accounts for 0.76% of the world’s total population. Its total
population currently is at 59 million and 59,308,690 to be precise.
 Growth Rate
The growth rate of South Africa is around 2% per annum.
 Birth rate
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The birth rate of South Africa is 20.329 births per 1000 people.
Live Birth rate: 1,174,320
Distribution of Population
 Age
0-14 years: 27.94% (male 7,894,742/female 7,883,266)
15-24 years: 16.8% (male 4,680,587/female 4,804,337)
25-54 years: 42.37% (male 12,099,441/female 11,825,193)
55-64 years: 6.8% (male 1,782,902/female 2,056,988)
65 years and over: 6.09% (male 1,443,956/female 1,992,205) (2020 EST.)
 Gender
In 2019, South Africa's female population accounts to approximately 29.7 million, while the
male population is approximately 28.86 million inhabitants.
 Geographic areas
Over 66% of the total population lives in rural areas and 33.14% comprises of the rural areas.
 Ethnic Groups
There are overall five major racial ethnic groups in South Africa, Black South African at 76.4%,
White South African at 9.1%, Colored South African 8.9%, Asian South African 2.5% and others
as 5%.
III.
Economic Statistics and Activity
GNP and GDP
The gross national income of the country is 741.7 billion dollars and the total GDP accounts for
around 351.4 billion $.
Per capita income
The GDP per capita of south income is 4,736 and GDP per capita rank is 94th nominal.
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Distribution of Wealth
There is a great racial discrimination in South Africa as the wealthiest owns 67% of all the countries
wealth and top 10% owns 93% of the wealth. The remaining 90% almost holds no wealth at all.
The average African household holds less than 4% of the wealth than an average white household.
Mineral and Resources
South Africa is rich in mineral resources like gold, diamond and platinum. The country owns 50%
of the world’s total gold reserves. Moreover, it is rich in diamond and coal reserves. Platinum is
another major production as SA and Russia holds 90% of the world’s total platinum production.
Surface Transportation
 Mode
In South Africa there are mainly three modes of transportation. The traditional commuter rail
system, high speed rail, and taxi system is the most dominant road transport system.
 Availability
The availability is average as the paved roads are less and most towns are connected with two
lane highways.
 Usage
The most common mode of transportation that is used by people in SA is informal minibus taxis
to travel within the city.
Communication Systems
 Types
South Africa has basically four major licensed mobile operators Vodacom, Cell c, 8ta and MTN
 Usage
Only 1% of the people use landlines as mode of communication. TV is the also the preferred
choice as 83% of the households have televisions. Over one tenth percent of the households
have access to the internet, they are more likely to have internet access at work. Internet using
mobile phone devices are 60.1%.
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Principal Industries
The country’s economy relies on sectors like tourism, financial services, services industry, agriculture
and food, industrial manufacturing and mining. Around two-third of the workforce is employed in the
services sector.
 Proportion of GDP each contributes
Agriculture contributes to around 1.88$ of GDP of South Africa whereas industry and services
contributes around 23% and 60% respectively.
 Ratio of private and publicly owned industries
Private sector makes up to 70% of the South African economy and the remaining are publicly
owned.
International trade statistics
 Major exports
The main exports of South Africa are diamonds, gold, minerals and wool.
 Dollar value
The dollar value of South African exports is 90.02 billion.
 Trends
South Africa is very open to international trade which represents 59.4% of country’s GDP.
 Major Imports
South African major imports are machinery 23.5%, minerals 15.1%, and vehicles 10%,
chemicals 10.9%.
The dollar value of imports is around 107.54 billion and the major trends of imports are that
their main trading partners are China, US, Germany, India.
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Balance of Payments Situation
 Surplus or Deficit
Currently due to high inflation and unemployment rates and the rising situation of the covid19, South Africa’s economy is currently in 6.25% of GDP.
 Recent trends
The most recent trends shows that the economy is expected to rise again this year after a fall
of 8.1% last year.
 Exchange Rates
Since South Africa relies mostly on mineral resources, the low commodity prices cause a
decrease in the value of the rand. Rand was at its strongest from 1961-1971 but since then it
has seen fall.
 Single or Multiple Exchange Rates
South Africa’s currency rates depends on the supply and demand in relevance to the other
currencies so it uses a floating exchange rate.
Trade Restrictions
 Import Taxes
The value of import taxes in South Africa is currently at 15%
 Tariffs
The tariff rate has been reduced from 20% to 5.8%.
Labor Force
 Size
Size of the labour force in South Africa is around 60%.
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 Unemployment Rate
The percentage of unemployment rate in South Africa last year was 28.18% and it is increased
to a 28.48% in 2020 majorly due to pandemic situation.
Inflation Rate
The inflation rates of South Africa are quite stable if we see the history and although now it’s bad but
it is expected to get stable in the future. The current inflation rate is at 3.34% which is quite better
comparing to the previous year.
Development in science and technology:
Current Technology Available:

The first major change is in the name itself of their science and technology department (DST) to
department of science and innovation (DSI). Currently South Africa has a number of advanced
technologies like nanotechnology, robotics, photonics and additive manufacturing.

The department of National Integrated Cyber Infrastructure system has also initiated the
innovation in the areas of palaeo sciences, astronomy and polar research.
Percentage of GNP invested in research and development:
According to World Bank South Africa is investing a total of 0.83% of its GNP in the area of research and
development.
Channels of Distribution: (macro analysis)
Retailors
Role of chain stores, department stores specialty shops:
Shopping centers are mostly in the form of small grocery stores whereas at the regional level there are
specialty stores they are mostly known by motor car showrooms and professional offices (doctors,
dentists and lawyers). Specialized function areas require good accessibility because they draw customers
from the entire metropolitan area.
Availability of Media (radio, television):
There are a large number of television stations and channels, covering national, African and international
news ranging from politics to hard news, business and celebrity news. In digital medium there were 10.9
internet users per 100 people, 8.5 personal computers per 100 people and 72.4 cellphone subscribers per
100 people.
48.6% of South African’s adult population (over the age of 16) read newspapers, 31.4% read daily papers
and 35.4% read weekly papers.
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THE MARKETING PLAN
PART 3: MARKET AUDIT AND COMPETITIVE MARKET
ANALYSIS
I. Introduction (Why
appropriateness)
this
product?
Provide
justification
and
Footwear sector plays a significant role in the world’s economy. There are many large industries made
from different brand names which are exported from different countries specifically in Asia. Shoe
industry is one of the most potential businesses in the country; demands are coming from local to
overseas buyers
The footwear and fashion sense of the South Africa in the modern-day era have been influenced by
their native ancestors, the Spanish colonizers and the Americans and some by Asians as evidenced by
the chronology of events that occurred in South African history.
In 2019, footwear saw strong value growth, with men’s footwear posting higher growth than ladies’
footwear. Both categories of menswear and ladies wear benefitted substantially from African males
having greater interest in being both comfortable and fashionable and players offering a wide variety
of trendy and affordable styles of men’s apparel both in stores and through e-commerce.
HOT AND HUMID CLIMATE CONTRIBUTES TO DEMAND FOR COMFORTABLE, SHOES INCLUDING
MEN’S ND LADIES PRODUCTS.
Men’s shoes continued to see high demand and again saw the highest growth in 2019, largely due to
the fact that the South African is a tropical country with a very hot and humid climate that calls for
wearing clothes that are comfortable shoes.
II. The Product
Markhor started off with the idea that best products are made with passion and investing many hours
of tough labor and attention. The team works directly with some of the most skilled craftsmen in the
world to make modern design and beautiful products
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“W E ARE CRA FTSMEN, DE SIGNERS, AND DREA MER S W HO A RE
W ORKING TOGETHER TO REDEFINE HOW HAND CRA FTED
SHOES AND A CCESSORIE S A RE MA DE AND DELIV ERED.”
Evaluate the product as an innovation as it is perceiving by the intended market
Markhor’s leather footwear and accessories are handcrafted by some of the most skilled artisans in
the subcontinent. We make it our job to preserve & present their remarkable craftsmanship to you
by fusing it with modern, minimal designs that you’ll love to wear for years to come.
 Relative Advantage
Pakistan is well known for its shoe Industry. Pakistan exports footwear to more than 60
countries in five continents of the world. Pakistan's exports of footwear have registered a high
rate of growth in the recent past, the IRNA reported. However, with yearly exports of only $110
million. We’ll have relative advantage because of the quality of our products.
 Compatibility
Markhor is a brand that focuses on western style of footwear making handmade chappal and
shoes. What defines the western clothing is anything that is comfortable and trends, although
the traditional dress of South Africa is Kanzu that have a resemblance with arbanes.
 Complexity
There is nothing complex about western clothing that African might have a hard time
understanding. African are very familiar with this sort of footwear.
 Trial ability
In-store displays like all other shoe brands. African can visit the store or outlet and check out
the quality of shoes themselves.
Major Problems and resistance to product acceptance based on the preceding
evaluation.
There may not be any resistance towards the products because South African have adapted to
western footwear for a long time now. They even prefer it over their own traditional clothing for daily
use because it is easier to wear and suits them based on the dry and humid weather of the Africa.
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III. The Market
Describe the market(s) in which the product is to be sold
The South African has the highest household spending as a per cent of gross domestic product.
22 percent of global retailers consider the South African as one of the top-10 target markets in
the region. The market is seen as one of the thriving markets in the region, especially with its
consumer-driven economy driven by a growing young population, who are mostly in the labor
force.
The retail landscape has experienced an unprecedented hike, stimulated by the rise of the middle
class and income levels. The demand for quality imported products is driven in particular by the
country’s young and upwardly mobile population, who continue to be influenced by western
trends. South Africans love shopping and the mall lifestyle is deeply ingrained in their culture.
200 foreign brands entered the South African in the past seven years. 2014 has seen the influx of
foreign brands and more international brands continue to fill local malls. Beyond traditional
retail, online has been experiencing steady growth in the country and online marketplace sites.
1. Consumer buying habits:
The south-African consumer behavior is one of the most influential buyers in the world today.
Their needs, wants, wishes and desires should be understood in order to accommodate them. It
can be noted, however, that consumers often do not behave consistently with their attitudes for
several reasons:
Ability - The price of products and services often influences whether consumers will purchase
them at all, if so, which competitive offering is selected. In terms of price of goods, a typical South
African will still buy things they want as long as it is within their budget. Even, if the product is
not in their favorite shop, this will not discourage them to look and find another shop. There are
also products that can only be sold in a certain region or places.
South African consumers prefer to buy branded things as they know it came from a reputable
brand of quality. It is also one way of showing people around how proud you are wearing and
carrying that brand.
Competing Demands for Resources - Marketing strategies are designed to influence consumer
decision making which will lead to product purchase and exchanges. As many brands offered in
the market today, South African consumer buyers usually look around for price canvass and then
decide whether or not to buy.
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Social Influence – For most products and services, we have choices that are far beyond the simple
fulfillment of basic needs. We have moved to a point where uncovering and exploiting what
might have been a significant need or want several years ago is now a basic to just being
competitive.
In terms of consumer behavior, culture, social class, and reference group influences have been
related to purchase and consumptions. Culture is one of the most basic influences on an
individual's needs, wants, and behavior, since all facets of life are carried out against the
background of the society in which the individual lives. Based on culture, it is very common to
South Africans to visit malls and different shopping centers as it became their habits to visit such
place. It is a common place to stopover as it was a good meeting place for different occasions
such birthdays, anniversaries, dates including business activities.
Family influences among reference groups are common to South African buyers which are
handed on from generations to generations. In some instances, during payday the family
members are being asked for the stuff they want to buy. This practice is very common to typical
South African families. The influence of the family is very strong in terms of purchasing power
and buying behavior. Sometimes, the parents are the ones who decide whether to buy or not.
For the children, they usually ask for things that their parents can buy them as a good reward for
their accomplishments such as good grades, awards and even good deeds.
a. Product-use patterns
1. Style Number: This refers to the identical number for the footwear/ Style.
2. Name of the part: This means which part of the panel e.g. Front (FR), Back (BK)
3. Size: This will show you how to find your size on a pattern finished foot ware
measurements. E.g. UK Size 38, 39, 40….
b. Product feature preferences
Need / Desirability
 The footwear should be designed based on a need, not driven by a technology.
 The foot ware should improve the wearer’s quality of life, and perhaps even solve a
problem.
 The foot ware should make the wearer feel something: comfortable, beautiful, happy,
powerful, special, confident, or even smart.
Wear ability
 The foot ware should fit comfortably.
 The foot ware need to move as we move; they need to bend, stretch, and compress.
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 The foot ware should be long lasting, and light weight. (Bonus points if they also wick
moisture and are breathable.)
 The foot ware should be easy to put on and take off so they can be worn by people of all
ages and by people with disabilities.
 The foot ware should look good.
2. Distribution of the Product:
Distribution Network:
Cape Town is the commercial capital of the South African. Port of Durban is the main
container port on the African coastline. The South African Government views the country’s
ports and terminals as key engines for economic growth. South Africa is situated on one of
the busiest international sea routes‚ critical to international maritime transportation‚ and its
geographical location presents a huge opportunity for investing in a diversified maritime
market. Transnet National Ports Authority (TNPA) which is one of five operating divisions of
SOE Transnet is responsible for the safe, effective and economically efficient functioning of
the national ports system, encompassing eight commercial seaports, which it manages in a
‘landlord’ capacity.
Trucking companies are used to deliver goods from the port to warehouses and retail outlets.
The large number of trucks has caused a huge impact on road congestion
The use of local agents or distributors greatly improves the opportunity for market success.
There are currently two types of importers in the South African: stocking distributors and
indenters. Stocking distributors are bound by a contract to buy and sell a prescribed number
of items as stated in their agreement with the foreign supplier.
Indenters, on the other hand, act as brokers between foreign suppliers and the end user, thus
saving on capital outlays for expensive equipment and avoiding the need to stock high-priced
products. Usually, a buyer who orders from an indenter already has the financing for the
goods. Customers will often open a letter of credit (L/C) for direct purchase from a foreign
exporter. Under these arrangements, the local representative or agent gets a commission for
the sale, known as an indent sale. Indenters also handle after-sales service support.
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A) Product distribution:
Typical Retail Outlets or Wholesale:
We will look forward for typical retail outlet. The commercial marketplace has evolved to the
point where retail sales no longer have a monopoly on the consumer world. To elaborate,
consumers once relied almost exclusively on retail outlets for their needed goods, but today
you can purchase from online stores, auction sites, wholesale outlets, liquidation centers, and
in some cases, you can even go straight to the manufacturer. Typical retail outlets provide
certain benefits:
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Operational CRM System.
Customer Data Record
Great Inventory Options
Great Sales Potential
3. Advertising and Promotion:
The changes in media landscape also change the way consumer’s access information about
products and services. Television remains an essential part of South Africans’ everyday lives,
which is why they rely on commercials for product information. These advertisements also
greatly affect the product preference of South African consumers.
Celebrity endorsements also play an important role when it comes to influencing brand
preference. Companies use these spokespersons to deliver their advertising message and to
boost their brand image. Marketing studies have reported that famous people increase
awareness of a company’s advertising and create positive feelings towards brands.
South Africans “are very conscious of celebrities and they find affinity with the celebrity.” A
celebrity’s appearance, popularity, and reliability are the measures on how big the impact of
their endorsement could influence a consumer’s decision on buying their endorsed brand.
Advertising on the Internet also plays a key role in advertising. 10% of the consumers ranked
social media posting, 9% for active internet searching, 6% for internet advertisements, and
4% for Internet forum or message board as key influencers.
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a) Advertising media usually used to reach your target market(s)
Here are some digital marketing tools that we use to target our customers:
Retarget our visitor with Facebook ads to increase conversion rates:
Most people are not ready to buy immediately upon seeing an ad or visiting the website. With
retargeting will be able to reach the same people that were thinking about buying our product
with reminder ads.
2. Run a promotion during holidays to increase our sales and capture attention when buyers
are more aware.
Depending on the time of year, we will provide different incentives to buyers.
If it’s Christmas, have a series of emails go out to our email subscribers with a digital marketing
strategy that focuses on compounding discounts.
3. Create gift guides year-round for our ideal buyer’s life events to inspire them to buy.
Depending on the type of ecommerce store we own and our ideal buyer, create gift guides for
life occasions. People buy gifts year round, not just Christmas, so we will promote our products
by creating gift guides for Mother’s Day, Father’s Day, graduation season, Valentine’s Day,
weddings, anniversaries, etc.
4. We will get our audience involved to create a community around our brand.
We will encourage our audience to share content based on our brand values to foster
engagement and reinforce those values.
For example, we can run a contest on Facebook and Instagram where we can ask from our
community to share a photo of something that our brand believes in.
When our community creates content for our brand we will also share some photos into blog
posts on our website or even on our webpage. By sharing the photos on our website, along with
descriptions and links to buy the items, we will have a customer that will share that link with all
his friends.
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5) Television commercial:
Firstly, TV commercial can help campaign to target wide range of audience from high status
society to low income group. It is the quickest way to rise the brand awareness in 30’s to 60’s of
commercials.
Secondly, TV commercials have its advantage of showing the movement of fashion brand than
print ads. It will give the fashion brand the best result of showing different angles of the brand
by seeing models walk on the runway. So we will use this method too to target our audience.
a. Sales promotions customarily used (sampling, coupons, etc.)
Business sales promotions tempt customers to make purchases . Typical incentives like coupons
or raffles are effective in doing sales promotion but not as lasting as clothing promotions . Here are
some sales promotion Techniques that we use:
Promotional Hats:
In South African many people like wearing hats for sun protection and quick cover-ups on bad
hair days. We will reward our best customers with promotional hats. Our brand’s logo will be
printed on the crown of the hat.
Workout Foot ware:
As they are changing themselves according to trends and are health conscious too. The gym is
a popular place for the health-conscious. Our other promotional clothing ideas are cotton
workout socks, sports shorts and fitted tanks.
Multi-save promotions include offerings like:
Buy and save off the entire sale.
 Spend and save off the entire sale.
 Buy and save off specific items.
 Spend and save off specific items.
 Buy and pay a fixed price.
Conditional promotions, on the other hand, include:
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Buy and get one or more items for free or on discount.
Spend and get one or more items for free or on discount.
Buy and earn loyalty.
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Global Marketing
These types of promotions will encourage sales without necessarily killing our revenues they
will also encourage shoppers to check out more products, versus just looking at what’s on
clearance.
Pricing strategy:
Pricing strategies plays an important role in determining how many customers are going to buy
our product. As after seeing the environment of South African we have decided of use market
penetration strategy. Market penetration pricing strategy involves that our product’s price will
be lower than the competition to generate buyer’s interest. After getting involved in the market
and getting marker share and after establishing a reputation for quality we will start increasing
prices to drive higher margins.
a) Types of discounts available:
We will offer different discounts to our reputable customers. These will be:
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Percentage discounts
Free-delivery after a certain amount of money is spent
Special gift when a purchase is made
Special discount for social media followers
Referral promotion (will give a discount to anyone who will recommend our brand to a
friend)
Compare and contrast your product and the competition’s product(s).
Competitor’s distribution channels
Competitor Name and Background: Bolton Foot ware Clothing, Footwear and Textiles
Sector. In 1980 the company was bought by Desmond Bolton and following the
rationalization and reconstruction of the Group, was renamed Bolton Footwear in 1987.
During the 1990’s it dis-invested from all activities which were not related to footwear to
concentrate and expand this part of the business.
The company steadily grew over the years and became a household name as a wellrespected manufacturer of quality shoes. The Company was delisted from The Johannesburg
Stock Exchange at the end of 2000 and presently trades as Bolton Footwear (Pty) Ltd.
Barker Footwear joined the stable in 2013 followed by Jordan & Co in 2015 – two major
market players in their own right.
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Global Marketing
Competitor’s Products:
The products of Bolton Foot ware Clothing, Footwear and Textiles Sector etc.
Feature:
Today, Bolton Footwear is one of South Africa’s foremost footwear companies. All footwear
offered by the Group is targeted at defined market niches, competitively priced and
manufactured from the highest quality of leather and raw material available.
The Group’s three footwear manufacturing plants in Great Brak River, Oudtshoorn and Cape
Town have the capacity to produce 8 000 pairs of high-quality leather footwear per day and
employ over 1100 employees across all sites..
Prices:
Meanwhile, pricing ranges from $5.90 for a cropped top to $219 plus.
Strategies:
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Bolton uses a mix of demographic, geographic and psychographic segmentation
strategies in order to serve the growing needs of the customers.
Rather than setting fashion trends, Bolton rides the wave of what’s currently hot and
established to provide affordable copycat versions of high-end brands. And to appease
its teen and 20 something demographic, the store .Also to provide top quality leather
made foot ware.
The company only spends about 0.3% of sales on advertising, and doesn’t have much
marketing to speak of. But what appeals to customers is its exclusivity and the fact that
the brand isn’t plastered on every billboard.
C. Market size
1. Estimated industry sales for the planning year
There are comprehensive profiles of 60 companies that operate in the sector. These include AVI,
which reported that its footwear business, which includes Spitz and Green Cross, struggled in the
six months to end-December 2018. Details of the closure of Green Cross manufacturing facilities
are provided in the report.
There are also profiles of Eddels Shoes, which forms part of Celrose, which was sold by Edcon,
Bata, which holds an estimated 45% of the leather school-shoe market, and Pepkor, the owner
of Shoe City and Tekkie Town, with the latter involved in a number of legal battles.
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Global Marketing
South Africa's footwear manufacturers, wholesalers, and retailers are struggling in the face of
tough economic conditions. South African Footwear and Leather Industry Association (Saflia)
figures show that local market demand for footwear was 264 million pairs in 2018, with local
production accounting for less than one-quarter of demand
Foreign ownership, equity, and investment
The South African government supports foreign investments that will create employment
opportunities, increase export volume and value, encourage the productivity of resources, and
help set the foundation for economic development in the country. With a liberalized foreign
investment law, the country allows 100% foreign equity on some areas of investment, excluding
some industries and activities under the Foreign Investment Negative List.
Ownership land/real properties in the South African by foreign investors/corporations
Foreign companies and investors can acquire lands as long as these are privately owned and
foreign equity doesn't surpass the 40% cap. There are, however, some exceptions to land
ownership by foreign investors and corporations (check the stipulations here). Aside from private
lands, foreign corporations and investors can also own real properties like buildings and condo
units and may invest on land improvements. They can even lease lands according to the
conditions set by the Investor's Lease Act (refer to the conditions here).
Incentives for a registered enterprise
There are several tax incentives offered to foreign investors and corporations and any registered
enterprise. These include fiscal and non-fiscal incentives by various authorities and implementing
agencies. Various incentive schemes are available depending on the location, business activity,
and registration.
E. Strategic elements of competitive advantage
In recent years, the retail fashion industry has witnessed a revolution, with companies applying
a quick response strategy known as “fast fashion”. Fast fashion refers to fresh fashions, shorter
life cycles and faster and inexpensive production.
We will gain competitive advantage over the following key points:
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Cost leadership strategy
Differential strategy
Focus strategy
Positioning
Corporate Identity
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Global Marketing
F. Conclusion
Foot ware industries are important in economic and social terms, in the short-run by providing
incomes, jobs, especially for women, and foreign currency receipts and in the long-run by
providing countries the opportunity for sustained economic development in those countries with
appropriate policies and institutions to enhance the dynamic effects of textiles and clothing. The
potential of the textile and clothing industries to contribute to long-run growth and development
will depend not only on the attributes (desirable or otherwise) of the investors, but also on the
quality and effectiveness of government policies and institutions in developing countries to build
on this investment. The textile and clothing industry provides opportunities for export
diversification and expansion of manufactured exports for low-income countries that can exploit
their labor cost advantages and fill emerging niches and meet increasing buyer demands.
Competitiveness is an indicator of the ability to supply goods and services at the location and in
the form and at the time sought after by buyers, at prices that are as good as or better than those
of potential suppliers, while earning at least the opportunity cost of returns on resources
employed. Thus, a competitive firm or industry or country have the ability to satisfy the consumer
with a product of the right price, right quality, right packaging etc. i.e. creating place, time and
form utility.
Representing the above statistics we are hoping that stands in the list of the leading brands
operational in South Africa and we hit the sales and facts as proposed in our project.