Proposal for Term Project

PRODUCT: Yo-licious Yogurt

MARKET DESTINATION: South Africa
Semester: Fall 2014
Course: MKT382 (International Marketing)
Section: 3

Prepared for:
Syed Kamrul Islam
Faculty Member
School Of Business

Prepared by:
Zubaida Faiza 1130952630
Sayema Rashid Chowdhury 1231132630
Touhiduzzaman Abir 1220479030
Salman Rashid 1220444630

Date of submission: October 27, 2014

Introduction
After conducting extensive research we have decided to produce and internationally
market a product similar to “shokti doi” by Grameen Danone Foods Ltd. Our product will
be a yoghurt called “yo-licious” containing protein, iron, calcium, zinc and other
micronutrients aimed to fulfill nutritional deficits. The product will be primarily targeted
towards children, but our customers will also include adults of all age groups who are too
conscious about their health or have too little time for long and time consuming meals.
We have chosen South Africa to be our export market. According to an article in
Wikipedia called “malnutrition in South Africa”, It is estimated that South Africa loses
about US$1.1 billion every year in GDP to vitamin and mineral deficiencies arising from
malnutrition, although it would only cost an estimated US$55 million to alleviate this
problem through micronutrient nutrition interventions. 5% of South African children are
so underweight they are considered to be wasting away. Therefore I think that our market
would be perfectly cut out for us.
According to Despite South Africa’s wealth in natural resources, healthy business
environment and financial system, and its sound public finances, the country has yet to
fulfill its great potential. South Africa may not be the first choice for any exporter due to
the recent temporary political and labor unrest, but it can’t be ignored that this country
has one of the best business friendly environments on the globe. With the strong
infrastructures and the plans for further development underway, South Africa has
highlighted itself in the whole of African continent. It happens to be a member of
BRICS. Investing there could prove to be a gateway to the African continent and Indian
Ocean markets. It also has a relatively stable political environment compared to the rest
of the continent. The domestic markets are large and growing. It also has modern
transport, communication, banking and financial services. Therefore after considering all
these factors I think that it would be a good idea to market our products in South Africa.
Objectives
 To reduce malnutrition in South Africa
 To develop and export a product that has high nutritional values and is affordable
for the poorest individuals in Africa:
 In Africa children weighing less than 80% of standard weight for age. Thus
the yogurt that will build strength in Africans will develop according to the
nutritional needs of African children.
 It is fortified with nutrients (including vitamin A, zinc and iodine) to make up
for the Iodine deficiency disorders (IDD) and vitamin A deficiency of the
local populations.
 The price of the product will be a price that will be affordable for the poorest
families and still prove to be profitable for us.
 To capture as many consumers as possible by introducing several flavors and
attractive packaging.
 Create awareness of the product through schools, hospitals
 To improve the community’s living conditions by creating jobs that raises their
living standards and enhances the social fabric of the region.
 To make yo-licious a household name like Coca-Cola, Pepsi or Chocos
 To ensure social benefits for the host country while seeking profitability

Methodology
Since for this topic there are not too many available sources of primary data, we had to
rely solely on secondary data. We consulted several papers published online in reputed
journals to conduct our report. All the papers had both qualitative and quantitative data.
Furthermore, we required the aid of books, articles and online journals which we used as
reference materials to understand and relate to the market condition, culture,
demographics, laws, lifestyle and deficiencies in Africa.
Scopes and limitations
South Africa because of its wealth in natural resources, healthy business environment and
financial system, and its sound public finances is believed to have a lot of potential. Due
to the political unrests that have taken place in the country in the past, the country is quite
underestimated in terms of doing business and the markets are pretty much untapped.
There is a huge demand for food products and quite little competition. With the rapidly
improving infrastructure, communication and business environment, South Africa shows
huge scope as a destination for international trade. Moreover the product that we wish to
export to South Africa happens to have a lot of social benefits, therefore chances are that
the government of the country will be very supportive and might even be willing to
subsidies our venture. They might help us spread awareness of our product or even help
us with a more thorough distribution system.

However conducting international trade with South Africa also has its limitations. There
is presence of high levels of corruption and bureaucracy in the country. Racial tension is
high and there are huge levels of inequality in terms of income, wealth and power. But
most importantly there is huge Language barrier due to cultural diversity with only 9.6%
of the population speaking in English. Moreover producing the product at a low enough
cost so that it can be sold to even the lowest income groups in South Africa might prove
to be difficult.
BIBLIOGRAPHY
1. “Malnutrition in South Africa”
http://en.wikipedia.org/wiki/Malnutrition_in_South_Africa
2. South Africa Info. (2013, February). South Africa : economy overview. Retrieved
from the South Africa Info. website:
http://www.southafrica.info/business/economy/econoverview
3. African Economic Outlook. (2014). South Africa. Retrieved from the African
Economic Outlook website:
http://www.africaneconomicoutlook.org/en/countries/southern-africa/south-africa