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Tiger Brands Limited integrated annual report
2015
Key factors driving our strategy
continued
Optimising customer relationships
The South African market has evolved rapidly over the years and is mature and concentrated in size. This has significant
implications for Tiger Brands in its quest to drive growth in the domestic market.
Retail markets in five stages
EXPLORATION
CONCENTRATION
PENETRATION
MATURATION
POST-MODERN
The modern trade
is small and
evolving (India)
The modern trade
competes
aggressively for
share in key
population
centres through
aggressive
marketing (China)
The modern trade
expands beyond
these core
population areas
through
developing
alternative formats
until near-
saturation space
levels are
reached (Brazil)
Once there is
enough square
footage per
capita, retailers
use improved
operating
efficiencies to
gain sustainable
market share from
less efficient
competitors
(Mexico/USA)
Retailers need to
use go-to-market
science to win
share from other
sophisticated
competitors
(Canada/UK)
Modern trade:
<20% of market
Top five: <30%
Modern trade:
<30% of market
Top five: <40%
Modern trade:
<40% of market
Top five: <50%
Modern trade:
<50% of market
Top five: >60%
Modern trade:
>60% of market
Top five: >70%
With a highly concentrated retail trade, powerful wholesale sector and fragmented general trade, understanding the needs of
our customers and shoppers is paramount to achieving our strategic goals.
Tiger Brands has made good progress in key areas of our customer strategy:
❍❍
Investment in handheld technology for operational intelligence and insights that drive growth and efficiencies at the point of
purchase
❍❍
Field sales teams provide live data to support actions on-shelf availability, pricing and promotions
❍❍
New apps being developed to speed up communication to retail stores and ensure the effective execution of shopper
marketing campaigns
❍❍
Improving core customer skills through our customer academy
❍❍
Optimised investment with customers in key categories
❍❍
Our customer managers were rated first in South Africa for trade relationships by Objectivity Research
% market share and top five retailers