Rita’s in South Africa
The company I chose to bring to South Africa is Rita’s Water Ice. My feeling is that the warmer climate of South Africa is conducive to a frozen product such as water ice. I believe that there is a demand for the product, especially once people try it for the first time. In my research I did not find a company that offered water ice. The closest thing I found to water ice was frozen yogurt and ice cream. In the following paper I will describe Rita’s target markets, product components, pricing strategy, distribution strategy, and promotion strategy. When determining the target market for Rita’s, there was a couple things I wanted to look into. In an effort to find a comparable product in the market I looked at an ice cream company called “Polar Ice Cream”. I first looked to see if they focused on a specific age group, and if so which ones. It is clear on their website that they focus primarily on younger children eating their products, specifically children 10 years old or younger. For Rita’s I would like to expand this market. I feel the target market should focus on both children and adults. The age group of Rita’s target market should be 5-20 years old. The idea is that going to Rita’s should be something that is done as a family, where everyone can get something different. Targeting both children and young adults will expand Rita’s potential customer base. Being a new product to the market, I do not want to exclude an age market, because they perceive the product as something for kids. The next thing I looked at was the geographical market for Rita’s in South Africa. I have identified three cities that would be the best areas to introduce Rita’s. These three cities are Pretoria, Johannesburg, and Cape Town. Pretoria is the capital of the country and is home to multiple embassies. Johannesburg’s citizens have the highest average income in South Africa, and the city has a vibrant night life. Cape Town is the second biggest city in South Africa, and receives more tourists than any other city in Africa yearly. I feel that the population of these cities makes it clear that they should be the entry point for Rita’s into market. Also, tourists going through these cities will spread the word about Rita’s water ice, and hopefully create a demand in other markets. In an effort to get an estimate of possible sales of these target markets, I decided to first determine the population of our demographic in the regions selected. The best I could find was an age distribution by province from South Africa’s last census taken in 2001. In Gauteng, which is the province for both Johannesburg and Pretoria, there were 2,113,395 children ranging in age from 5-19 years old. In Western Cape, which is the province for Cape Town, there were 1,277,404 children ranging in age from 5-19 years old. I attempted to try to find some information of sales from ice cream companies, but nothing was available. What I did find is that the market grew 10.9% between 2004 and 2009. If Rita’s is able to get 10% of the population of the cities to try their product once, then sales in the first year could be 211,339 units and 127,740 units respectively. The next thing that Rita’s need to look at is what their product will entail. Rita’s core component is their line of water ice, cream ice, and custard. Rita’s currently has a flavor profile including lemon, cherry, blueberry, root beer, Georgia peach, Florida orange, chocolate, and juicy pear. I feel that most of the flavor s offered by Rita’s in the United States would work in South Africa, given the climate and the fruits grown in the country. The fruits grown in South Africa include lemons, oranges, apples, litchis, mangoes, peaches, pears, plums, and nectarines. Rita’s does have some flavors that would not translate to the South African market. I believe they should stay away from selling flavors such as bubblicious, Swedish fish, and Strawberry margarita. I also feel that Rita’s...
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