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Tiger Brands Limited Integrated Annual Report
2014
Governance and risk
In driving increased penetration through the
retailers’ new store openings, further cost
pressure is exerted on manufacturers without
significant additional volume growth in the
total market.
The group has put in place equitable
trading terms with customers to drive volume
performance and is increasing its focus on
brand building to stimulate increased
demand from consumers. Tiger Brands’
customer and supply chain structures are also
being strengthened to ensure better alignment
and focus.
Human resources
The group continues to implement consistent
HR policies and people strategies across its
businesses. Clearly defined roles,
responsibilities and reporting lines ensure that
the organisational structure is optimal for
delivering against the group’s strategic
objectives. The group has in place talent
management and succession planning
structures, which anticipate the requirements for
functional skills ahead of demand and sets a
rolling “cover target” for key positions in order
to ensure the group’s sustainability. Tiger
Brands’ internal talent plans continually seek
innovative ways of finding and retaining skilled
people. Individual development plans and an
effective performance management system
contribute to employee retention, supported by
competitive incentives which are aligned to the
group’s performance against its strategic goals.
Geographic expansion into Nigeria
The expansion into Nigeria represents a
significant growth opportunity for the group,
notwithstanding the current operational
challenges being faced. Failure to successfully
implement the changes required to fix, optimise
and grow the Nigerian businesses, could
significantly affect the group’s future growth
prospects. Adequate resources have been
deployed to implement Tiger Brands’ operating
standards, stabilise the business and drive
profitable growth through increased market
penetration and entry into new product
categories. Significant investment is being
made, through increased marketing support
and new product development, to build
existing and new brands, and also in
optimising the group’s route to market
capabilities in Nigeria.
Changes in consumer preferences
Consumers have become more value conscious
in their purchasing decisions, switching to
cheaper alternative brands where possible.
Tiger Brands continues to focus on cost
containment initiatives across its value chain
and on the management of the pricing of its
products relative to competitor brands. In
addition, it strives to enhance the perceived
benefits of its products through improved
functional attributes, convenient pack formats
and value-added offerings.