Botswana Meat Company Expands Into Malawi

MBA (ADVANCED STANDING CIMA BOTSWANA)

GLOBAL STRATEGIC MARKETING – 7GN020

BOTSWANA MEAT COMPANY EXPANDS MARKET INTO MALAWI

PYOKA MFUNI STUDENT ID# 100194763 UNIVERSITY OF DERBY

17 January 2011

EXECUTIVE SUMMARY
This report is principally prepared and compiled for the Board members of the Botswana Meat Company (BMC) for consideration and decision making in the implementation of the strategic plans. Growing BMC market share and increasing sales regionally has been top of the agenda in the board meeting over the last six (6) months. The strategic business department in BMC was tasked with the responsibility to identify and recommend possible new markets in the region. A number of countries have been considered and Malawi lead the pack. This report has explored Malawi as potential meat market within the region. The move into Malawi will be timely and rewarding for the BMC group. Malawi is a country in the southern African region with wonderful opportunities in livestock business. The livestock industry in Malawi is undeveloped and cannot meet the current demand for beef and related products. In 2010, over 100 tonnes of beef was imported into the country for consumption. The government of Malawi is working around the clock to put in place programs that will assist the agriculture sector grow and increase product output. The population growth in the country has had a negative impact on the agriculture sector and provides potential good returns for the BMC and other meat producers in Malawi. In Malawi, setting up a company is a very easy process. Incorporation of the company with assistance from a lawyer and takes maximum of seven (7) working days. There is no unfairness in terms of the rules and regulations governing imports and exports. The labour force is readily available throughout the country including remote rural areas. Malawi has a first-rate road and supply network to all major towns. The country is a member of the African free trade zone

References: Lee, K., Carter, S (Dr.), (2009), Global Marketing Management. 2ndEd. USA, Oxford University Press. www.africanguide.com (1996 -2011), The African Guide [Internet]. Available from: [http://www.africanguide.com/country/malawi/culture ]. [Accessed on 11/01/2011] www.malawi-invest.net (1991-2011), Malawi Investment Promotion Agency [Internet]. Available from: [http://www.malawi-invest.net]. [Accessed on 23/12/2011] www.bmc.bw (2005-2011), Botswana Meat Company, [Internet]. Available from:[http://www.bmc.bw/history]. [Accessed on 15/12/2010] Masina, L., (2009), Rise of new African Star: Malawi’s economic performance continues to astonish. African Business, [Internet]. Available from: [http://findarticles.com/p/article].[Accessed on 14/01/2011] Roman, (2009), Top fastest growing economies in 2009, Financial Jesus, [Internet], 6 January 2009. Available from: [http://www.financialjesus.com/interesting-economies/topfastest growing]. [Accessed on 14/01/2011] www.howwemadeintoafrica.com (2010), Opportunity exist to invest in Malawi’s livestock industry, [Internet]. Available from: [http://www.howwemadeitinafrica.com/businessopportunities-in-malawis-livestock-industry].[Accessed on 12/01/11] www.malwivoice.com (2011), Malawi imports 120 tonnes, [Internet] Available from: http://www.malawivoice.com/business/malawiimports120tonnes [Accessed on 12/01/2011] www.bertelsmann-transformation-index.de (2010), Malawi country report, [Internet]. Available from: [http://www.bertelsmann-tranformation-index.de/bti/Malawi] [Accessed on 12/01/2011] Gondwe, T.N.P., Wollny, C.B.A., Changunda, M.G.G.,Safalaoh, A.C.L., Chilera, F.C., (2006), Community based promotion of rural poultry diversity and utilisation in Malawi [Internet] . [Accessed on 12/01/2011] 10 | P a g e PDP ‘reflection’ on the activity Writing this report took over a month. From the 10th of December 2010 to 15th January 2010, I was busy collecting and compiling information. My main source was the internet. I also went through some newspapers, books and a few interviews. I also used a book by K. Lee and Dr. Carter 2nd edition, Global Marketing Management for explanation of terms. Writing a marketing proposal to the BMC board of directors as an assignment has given me a great deal of skills. I have learned that a good market strategy entails a lot of information gathering and analysis. A market researcher needs to obtain detailed data of the potential market to establish its attractiveness and a fit between the market and the investing firm’s objectives, resources and capabilities. The market attractiveness can be considered through the following perspectives:  Size of the market, estimated growth rate of the market, competition, b rand loyalty of existing customers, market share, expected profit margins Meeting the objectives, resources and capabilities of the investing firm, the following are considered:  Access to distribution channels, capital investment and e thical and social responsibilities When preparing this report, I began by going through BMC objectives and strategic plan for the five years. The plans included intensifying sales into the region. This would be cheaper and would increase market share. I then went on to explore three (3) countries in Southern Africa, Angola, Zimbabwe and Malawi. Malawi was chosen owing to its versatility and growth potential in the short and long term. I then began to search information on Malawi through the internet. This included the history, economy, and culture and livestock industry. I also travelled to Malawi for a week from December 30, 2010. I did not get much information but was advised to search through the Malawi Investment Promotion Agency (MIPA) website. Given another opportunity to do this market proposal, I would improve it in the area Consumer behaviour of customers and competition existing. These are the areas I did not get information I needed. I would do more in the market segment analysis to get the needed demand on the product offering of the BMC. As an employee of the BMC, I would not have a problem availing this report to management for consideration and implementation as part of the strategic plan. Fine details, further opportunity analysis, sources of finance and possible training requirements would need to be collected. 11 | P a g e