Oct 07 2005
IBUS 579 10/7 Discussion
Topic: SAB in Tanzania
Question: Why Enter Tanzania?
1. Competitive pressure/Global Player
2. Too good an offer to miss (50/50 with central government)
3. Saturated local market
4. Trend in the industry (related to Pt. 1)
5. Local, regional/neigbhor. Comfortable with market/operations
6. Whatever they are, there are existing facilities (no need to start from scratch)
7. Full government support (related to Pt.2)
Question: Key to Success in Tanzania?
1. Management/Operational efficiency
2. Marketing/Patriotic sentiment
3. Distribution upgrade/creative market segmentation
4. Training/Customer services (relative to what use to be)
Question: How to Respond to Competitors? Is Well Positioned? How Competition Change SAB Global Strategy?
1. SAB positions well in Southern Africa, maybe East too. Has plus and minus: has a growth-oriented base but lack of traction with richer markets.
2. Challenge: No foothold in Europe/America but see incursion into existing markets.
3. Strategies/Tactics:
a. Taylor marketing (repeat the patriotic magic), planning and distribution methods
b. Leverage existing operational experties/efficiency
c. Expand IT
d. Go to countries where there is African population (France?)
e. Hard to enter Europe or America but still attractive, rich markets. Focusing on NICHE! (like Corona? building brand ID)
f. Build partners with distributors, existing brewries, even competitors (e.g. licensing agrmt)