Research report presented to SBL, Unisa, Midrand. / The subject on the role of branding in delivering financial growth has been a debate for most marketers and financial managers. This is because the marketing subject by its nature is intangible and therefore difficult to measure. This misunderstanding has resulted in many authors calling for marketing to be accountable and focus on marketing investments that will deliver long term value for the shareholders. This study explores the role of branding in the South African FMCG industry and three main areas are explored namely whether marketing strategies are focused on increasing sales or future business growth. The second area is whether the inclusion of brand equity measures as part of the financial company reports, will give them the focus that they deserve. Thirdly it explores whether there is a link between brand building initiatives and financial measures. A qualitative research method was used as it gave the researcher an in depth understanding of the role of brand management within the FMCG industry and its impact on financial measures. A total of fifteen employees were interviewed using semi-structured interviews. The findings indicate that companies still focus on measures that drive short term gains instead of long term growth and that brand building activities are compromised by brand harming activities such as regular price cutting. Future research to evaluate the impact of marketing activities that drive short term sales on brand equity and subsequently shareholder value is recommended.

Thesis (MBA (Business Management))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: The aim of this study was to investigate CRM application in South Africa with specific reference to the FMCG industry in this country. The research started off with a literature review of CRM with reference to its failures and successes as well as the advantages and disadvantages of the system, furthermore the requirements for a successful CRM system were investigated. Interviews were also held with industry experts to gain insights into CRM application in South Africa. The study found that, although the FMCG industry in South Africa is based on the B2B route to market and not on the B2C route to market, CRM still has the potential to add value to the organisation. In addition, the failures of CRM are not industry-specific but common across industries. There are a vast number of reasons for the failure of CRM, ranging from CRM’s exclusion from the company strategy to a lack of change management and a lack of end-user involvement in the implementation of the system and process. Although it would seem that CRM fails more than it succeeds it is not due to the system itself but to human nature and reluctance to change. The research clearly illustrates that CRM fails as a result of human decisions and the disadvantages posed by the system. It is clear that CRM starts with the organisation’s strategy. If CRM complies or fits in with the strategy of the company it will succeed. What’s more, CRM has to be driven from top management down. Lastly, CRM will work for the FMCG industry of South Africa and will add value to any organisation dealing with customers. However, this will only be realised if the organisation follows a customer-centric approach and if CRM is not seen as an IT project but rather as part of the organisational culture. / AFRIKAANSE OPSOMMING: Die doel van hierdie studie is om die toepassing van CRM (kliënteverhoudings-bestuur – customer relationship management) in Suid-Afrika te ondersoek met spesifieke verwysing na die bedryf vir vlot verkoopbare verbruikersgoedere (FMCG – fast-moving consumer goods) in dié land. Die navorsing het met ’n literatuuroorsig van CRM begin met verwysing na die mislukkings, suksesse en die voor- en nadele van die stelsel. Die vereistes vir ’n suksesvolle CRM-stelsel is ook ondersoek. Daarby is onderhoude met kundiges in die bedryf gevoer om insig in die toepassing van CRM in Suid-Afrika te verkry. Die studie het bevind dat hoewel die FMCG-bedryf in Suid-Afrika op die B2B roete na mark en nie op die B2C roete na mark gegrond is nie, het CRM steeds die potensiaal om waarde tot die organisasie toe te voeg. Daarby is die gebreke van CRM nie bedryfspesifiek nie maar kom dit algemeen by alle bedryfsrigtings voor. Die talle redes vir die mislukkig van CRM wissel van die uitsluiting van CRM van die maatskappy se strategie tot by ’n gebrek aan veranderingsbestuur en ’n gebrek aan eindgebruiker-betrokkenheid in die implementering van die stelsel en die proses. Hoewel dit voorkom of CRM meer misluk as wat dit slaag, is dit nie die gevolg van die stelsel self nie maar van die menslike aard en onwilligheid om te verander. Die navorsing toon duidelik aan dat CRM as gevolg van menslike besluite en die nadele van die stelsel misluk. Dit is duidelik dat CRM by die organisasie se strategie begin. Indien CRM aan die maatskappystrategie voldoen of daarby inpas, sal dit slaag. Daarby moet CRM deur topbestuur van bo af gedryf word. Laastens sal CRM vir die FMCG-bedryf in Suid-Afrika werk en waarde tot enige organisasie toevoeg wat met kliënte werk. Dit sal egter net realiseer indien die organisasie ’n kliëntgesentreerde benadering volg en indien CRM nie as ’n IT-projek nie maar as deel van die organisasie se kultuur gesien word.

Thesis (MBA)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: Forecasting the future has always been one of the man's strongest desires. The aim to determine the future has resulted in scientifically based forecasting models of human health, behaviour, economics, weather, etc. The main purpose of forecasting is to reduce the range of uncertainty within which management decisions must be made. Forecasts are only effective if they are utilized by those who have decisionmaking authority. Forecasts need to be understood and appreciated by decision makers so that they find their way into management of the firm. Companies still predominantly rely on judgemental forecasting methods, most often on an informal basis. There is a large literature base that point to the numerous biases inherent in judgemental forecasting. Most companies know that their forecasts are incorrect but don't know what to do about it and choose to ignore the issue, hoping that the problem will solve itself. The collaborative forecasting process attempts to use history as a baseline, but supplement current knowledge about specific trends, events and other items. This approach integrates the knowledge and information that exists internally and externally into a single, more accurate forecast that supports the entire supply chain. Demand forecasting is not just a matter of duplicating or predicting history into the future. It is important that one person should lead and manage the process. Accountability needs to be established. An audit on the writer's own organization indicated that no formal forecasting process was present. The company's forecasting process was very political, since values were entered just to add up to the required targets. The real gap was never fully understood. Little knowledge existed regarding statistical analysis and forecasting within the marketing department who is accountable for the forecast. The forecasting method was therefore a top-down approach and never really checked with a bottom up approach. It was decided to learn more about the new demand planning process prescribed by the head office, and to start implementing the approach. The approach is a form of a collaborative approach which aims to involve all stakeholders when generating the forecast, therefore applying a bottom up approach. Statistical forecasting was applied to see how accurate the output was versus that of the old way of forecasting. The statistical forecast approach performed better with product groups where little changed from previous years existed, while the old way performed better where new activities were planned or known by the marketing team. This indicates that statistical forecasting is very important for creating the starting point or baseline forecast, but requires qualitative input from all stakeholders. Statistical forecasting is therefore not the solution to improved forecasting, but rather part of the solution to create robust forecasts. / AFRIKAANSE OPSOMMING: Vooruitskatting van die toekoms was nog altyd een van die mens se grootste begeertes. Die doel om die toekoms te bepaal het gelei tot wiskundige gebaseerde modelle van die mens se gesondheid, gedrag, ekonomie, weer, ens. The hoofdoel van vooruitskatting is om die reeks van risikos te verminder waarbinne bestuur besluite moet neem. Vooruitskattings is slegs effektief as dit gebruik word deur hulle wat besluitnemingsmag het. Vooruitskattings moet verstaan en gewaardeer word deur die besluitnemers sodat dit die weg kan vind na die bestuur van die firma. Maatskappye vertrou nog steeds hoofsaaklik op eie oordeel vooruitskatting metodes, en meestal op 'n informele basis. Daar is 'n uitgebreide literatuurbasis wat daarop dui dat heelwat sydigheid betrokke is by vooruitskattings wat gebaseer is op eie oordeel. Baie organisasies weet dat hulle vooruitskattings verkeerd is, maar weet nie wat daaromtrent te doen nie en kies om die probleem te ignoreer, met die hoop dat die probleem vanself sal oplos. Die geïntegreerde vooruitskattingsproses probeer om die verlede te gebruik as 'n basis, maar voeg huidige kennis rakende spesifieke neigings, gebeurtenisse, en ander items saam. Hierdie benadering integreer die kennis en informasie wat intern en ekstern bestaan in 'n enkele, meer akkurate vooruitskatting wat die hele verskaffingsketting ondersteun. Vraagvooruitskatting is nie alleen 'n duplisering of vooruitskatting van die verlede in die toekoms in nie. Dit is belangrik dat een persoon die proses moet lei en bestuur. Verantwoordelikhede moet vasgestel word. 'n Oudit op die skrywer se organisasie het getoon dat geen formele vooruitskattingsprosesse bestaan het nie. Die maatskappy se vooruitskattingsproses was hoogs gepolitiseerd, want getalle was vasgestel wat in lyn was met die nodige teikens. Die ware gaping was nooit werklik begryp nie. Min kennis was aanwesig rakende statistiese analises en vooruitskatting binne die bemarkingsdepartement wat verantwoordelik is vir die vooruitskatting. Die vooruitskatting is dus eerder gedoen op 'n globale vlak en nie noodwendig getoets deur die vooruitskatting op te bou uit detail nie. Daar is besluit om meer te leer rakende die nuwe vraagbeplanningsproses, wat voorgeskryf is deur hoofkantoor, en om die metode te begin implementeer. Die metode is 'n vorm van 'n geïntegreerde model wat beoog om alle aandeelhouers te betrek wanneer die vooruitskatting gedoen word, dus die vooruitskatting opbou met detail. Statistiese vooruitskatting was toegepas om te sien hoe akkuraat die uitset was teenoor die ou manier van vooruitskatting. Die statistiese proses het beter gevaar waar die produkgroepe min verandering van vorige jare ervaar het, terwyl die ou manier beter gevaar het waar bemarking self die nuwe aktiwiteite beplan het of bewus was daarvan. Dit bewys dat statistiese vooruitskatting baie belangrik is om die basis vooruitskatting te skep, maar dit benodig kwalitatiewe insette van all aandeelhouers. Statistiese vooruitskattings is dus nie die oplossing vir beter vooruitskattings nie, maar deel van die oplossing om kragtige vooruitskattings te skep.

published_or_final_version / Environmental Management / Master / Master of Science in Environmental Management

Research report presented to SBL, Unisa, Midrand. / The subject on the role of branding in delivering financial growth has been a debate for most marketers and financial managers. This is because the marketing subject by its nature is intangible and therefore difficult to measure. This misunderstanding has resulted in many authors calling for marketing to be accountable and focus on marketing investments that will deliver long term value for the shareholders. This study explores the role of branding in the South African FMCG industry and three main areas are explored namely whether marketing strategies are focused on increasing sales or future business growth. The second area is whether the inclusion of brand equity measures as part of the financial company reports, will give them the focus that they deserve. Thirdly it explores whether there is a link between brand building initiatives and financial measures. A qualitative research method was used as it gave the researcher an in depth understanding of the role of brand management within the FMCG industry and its impact on financial measures. A total of fifteen employees were interviewed using semi-structured interviews. The findings indicate that companies still focus on measures that drive short term gains instead of long term growth and that brand building activities are compromised by brand harming activities such as regular price cutting. Future research to evaluate the impact of marketing activities that drive short term sales on brand equity and subsequently shareholder value is recommended.

This research study investigated the influence of maintaining a partnership form of relationship between a Fast Moving Consumer Goods (FMCG) multinational company and its core suppliers, on their abilities to achieve supply chain agility. It took place within the Middle East region, where the in-depth case study used for data collection was Unilever (North Africa Middle East). The research also focused on the role played by information technology within Unilever’s (North Africa Middle East) partnership with its core suppliers and the achievement of a high level of agility within their supply chain. In addition to these two main aims, the research also focused on exploring the required attributes of supply chain agility within FMCG industry and also to explore the attributes of buyer-supplier partnership required to help the companies working within this type of industry to achieve agility within their supply chain. To achieve the aims and objectives of this research, this study used qualitative methods for collecting rich and valuable data. Several data collection methods under the umbrella of the in-depth case study approach were used. The methodological approach used by the research was the Grounded Theory approach (Strauss and Corbin, 1990-1998). Data was collected from the case study managerial level in Unilever’s (North Africa Middle East) main clusters within the Middle East in three different rounds, using semi-structured interviews. Data was also collected from five core suppliers for Unilever (North Africa Middle East). The research also used other data collection means, such as documents collected during the researcher’s visits to the case studies and observation. Data was analysed using the steps and procedures of the Grounded Theory approach (Strauss and Corbin, 1990-1998). Data analysis took place in three interrelated iterative steps: open coding process, axial coding process followed by the selective coding process, leading to the generated theory of the research. The findings of the study, as presented in the research’s generated theory, showed that the partnership, with its attributes explored during the research, between Unilever (North Africa Middle East) and its core suppliers can be considered as the starting driver helping the companies working within this type of industry to achieve a higher level of supply chain agility, through the attributes explored during the research. The generated theory also showed that the role played by information technology can be considered as the catalyst in this equation. It played the role of channelling the relationship between the two concepts: buyer-supplier partnership and supply chain agility. Information technology can be considered as the catalyst because the evidence indicates that without it the relationship between Unilever (North Africa Middle East) supplier partnership and supply chain agility would struggle to be achieved. In more detailed, 43 open codes had been derived from the first analysis coding process, and which were derived under the main pre-determined themes: FMCGs industry-based features, Buyer-supplier relationships, Information sharing and information technology, and Agility. These 43 open codes provided the basis for stages 2 and 3 of the analysis. In the axial coding process (the second data analysis), the axial sub categories and the axial categories were determined and the axial paradigm model was used in the analysis. In the final coding process: the selective analysis, the core category of the research was determined to be ‘Partnership existence with core suppliers’. The relationship of this core category with the other elements in the paradigm model namely: casual conditions, context, intervening conditions, action/interactional strategies, and consequences. The research has its own Theoretical, Methodological, and Managerial contributions. Among these contributions is that it can be considered a novel research, using a grounded theory approach to generate a theory, showing the relationship between buyer-supplier partnership and supply chain agility in this dimensional manner.

Thesis(M.B.A.)--University of the Witwatersrand, 1991 / The research investigated the evaluation of common goods and services by white and black consumers, and to determine where similarities and dissimilarities between these two segments existed. A review of the literature on consumer behaviour, with specific reference to decision making models, and a series of in depth interviews enabled the expansion of the Zeithaml (1981) set of constructs by a factor of two. A questionnaire was developed and administered to white and black employees of well known local firms in a variety of industries. Hypothesis testing enabled validation of the expanded set of constructs, and the comparison of white and black evaluative differences, while correspondence ;analysis determined the key evaluative dimensions. Important new dimensions discovered included Convenience, Loyalty and Reception. An invaluable method of clustering was found in the /chi squared trees technique. The results indicated that black consumers are significantly less experienced in the use and evaluation of common services compared to their white counterparts. As a result of this inexperience, a much less sophisticated set of key evaluative constructs are relied upon in the decision process. Both segments appear to be /ciware of generally higher risks associated with services, but are less prone to invest effort in information gathering prior to purchase. The white segment purchases services based on their convenience, whilst the black segment faces equal inconvenience for any purchase. The most significant marketing implications drawn were firstly, the need to appreciate consumer perceptual similarities across, and differences within, goods and services categories. Secondly, marketers need very different strategies for the black segment.

Some firms focus on few products with broad appeal, whereas others leverage variety as an important part of their offering. This study investigates the conditions under which each of these product line length strategies is optimal in the fast-moving consumer goods industry. It does so by focusing on the relationship between product line length strategy and firm top-line performance, in the light of a discrete framework derived from the strategic fit paradigm and the strategic triangle. Results show that customer factors (i.e., variety per household and value per purchase) and competitor factors (i.e., concentration and proliferation) drive the strategic fit of a firm's product line length strategy to the market in which it competes, so that firms deploying market-fitting strategies face higher odds of market share growth than firms deploying contrarian strategies. Firms with certain company factors (i.e., innovativeness and brand equity), however, face higher odds of market share growth by challenging the market fit and deploying contrarian strategies than by deploying market-fitting strategies. This study offers a stepping stone towards addressing product line length strategy as a discrete choice on product line positioning, an innovative approach with potential to generate concrete business impact.

The thesis deals with data analysis importance for decision making process. The theoretical part focuses on characteristics and specific attributes of the business intelligence, its history and development, limitations and opportunities. The data processing as well as steps or techniques necessary for the analysis are further examined. The practical part deals with sell-out data analysis of a particular retailer from its supplier point of view. The sell-out data analysis is based on real business examples and results in recommendations for a business team.

This is an in-depth study of the structural change and transition of the Chinese consumer goods market from 1954 to 1991 using disequilibrium econometric methodology. The model for the Chinese consumer goods market is based on the Portes-Winter disequilibrium model for centrally planned economies (1980). The demand function is derived from the Houthakker-Taylor savings function. The supply function is composed of approximations to the government's long-term and short-term plans. The transaction quantity in the market is defined as the smaller of effective demand and supply. Using the traditional global fitting method, three models are evaluated: one model that assumes no structural change, and two models that assume structural change. The estimations show that the structures of the demand and supply functions of the Chinese consumer goods market have changed since the economic reform in 1980. An innovative non-parametric method of locally weighted optimization is applied to further test the variations in model parameters during the period between 1954 and 1991 without assuming explicit functional forms of demand and supply. The estimation results show that the Chinese consumer goods market fits the Portes-Winter model well in the earlier years. The results confirm that the structures of demand and supply functions have changed since the economic reform. In the late 1980's, the Chinese consumer goods market is shown to have shifted away from a pure centrally planned system. Other main conclusions of this study include, first, that chronic shortage does not exist in the Chinese consumer goods market from 1954 to 1991. Second, a rigid price level has not caused the market to be persistently in disequilibrium. Third, the classical disequilibrium model of consumer goods market in centrally planned economies does not fit the Chinese consumer goods market in the later years.