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A Business Plan for Africa Breakaway Sessions 3: Operationalizing our Strategy. Session 1: Marketing Dept : Branding And Marketing Strategy for Africa Inc. November 8th , 2013. Policy Recommendations within the Africa 2.0 Manifesto (1/2).
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A Business Plan for Africa • Breakaway Sessions 3: Operationalizing our Strategy Session 1: Marketing Dept: Branding And Marketing Strategy for Africa Inc. November 8th, 2013
Policy Recommendations within the Africa 2.0 Manifesto (1/2) Africa has long suffered from poor perception globally. This has to change and should be replaced by an Afri-CAN DO attitude. African Countries need to place countries’ mindset and reputation at the core of their developmental goals. • Key recommendations for Country Branding: • National mindset building around unity, performance and solidarity in order to ensure that the image/brand projected outside is reflected inside, and that the citizens of the country are sufficiently geared up mentally and psychologically to achieve the Vision and meet the challenges ahead. • Establish independent structures or departments responsible for various aspects of brand strategy, population endorsement, reputation management and competitive identity. • Clear and collective articulation of what Brand Africa stands for. Africa has to determine the collective vision of how we want Africa to be perceived, based on the following principles: • Successful regional integration and Brain Gain; • Optimism; • An Image of Africa owned by Africa that is spoken about and believed by Africans themselves; • Delivery against promises; • Political maturity and committed leaders; • Respect for self and others; • A move away from the perception of Africa as a dangerous continent; • Innovation; • Efficient and effective business.
Policy Recommendations within the Africa 2.0 Manifesto (2/2) • The commitment of all actors to the Rebranding of Africa is necessary: • Governmentsmust take a hard look at its ability to deliver to its citizens as well as its ability to attract investment, tourism, trade as well as skills. The reputation building exercise needs to be seen as a critical component of a nation’s growth and survival. • The mass media can play a critical role in promoting the AfriCan-Do attitude and the African Success Stories, in the following manner: • A donation of media time to the promotion of the Africa identity agenda; • Media personalities have a strong following and African journalists and editors can drive positive perception of the continent by highlighting positive aspects of Africa without negating the negative; • Media houses can provide a platform for citizen engagement and can be at the forefront of social change. • Businesseson the continent play a role in changing the reputation of Africa through how they are perceived as global players but also as trusted businesses. Businesses can: • Serve as advocates for Africa and promote African excellence; • Invest in the continent and generate capital; • Provide proof points into nation and continental branding drives to improve country image; • Be a critical partner and funder in the formation of branding structures within countries; • Lead by example by driving growth expansion into the continent through consistent and strategic investment. • Financially contribute to the establishment and expansions of nation branding structures.
Key Facts and Figures Fact 1: While the global economy is predicted to grow by two percent to three percent between 2011 and 2020, SSA is poised to grow by five percent to six percent, making it one of the world’s fastest-growing regions. Figure: changing perception of Africa in the mass media Fact 2: In 2010, sub-Saharan Africa (SSA) was populated by more than 856 million consumers. The region will have more than 1.3 billion consumers by 2030. Fact 4: The image of Africa as a continent plagued by conflict, violence and starvation is more and more replaced in the media by the “Africa Rising” image, contributing to the positive rebranding of Africa. Fact 3: Consumer expenditure in SSA equaled nearly $600 billion in 2010, accounting for almost eight percent of all emerging-market spending, and is expected to reach nearly $1 trillion by 2020 – notably thanks to the rise of the African middle class.
Leveraging Opportunities and Addressing Challenges CHALLENGES Understanding the market opportunity in Africa and defining a marketing strategy that makes Africans prefer Africa Inc.’s products and services rather than other companies’ products – competition is increasing on the African continent, and Africa Inc. must strengthen its presence and brand reputation in order to lead on its home market. Shifting perceptions in mass media on the African continent –in terms of market opportunities, political stability, etc. Changing Africans’ mindset into an Afri-CAN DO Attitude. Seven Key Market Entry Steps 1. Market Opportunity – Do we understand our target market? 5. Manufacturing – Do we build local capacity ? 2. Value Position – Do we have the right products/services to offer? 6. Distribution- How do we deliver our products or services to our customer? 3. Market Entry Strategy – How do we enter the market with minimal risk? 7.Marketing- How do we ensure that there is demand for our products/services? 4. Sourcing
Leveraging Opportunities and Addressing Challenges OPPORTUNITIES A population forecast to reach almost 2 billion by 2050. Significant decrease in poverty. Poverty in SSA is decreasing rapidly from 40 percent in 1980 to less than 30 percent in 2008, and is expected to fall to 20 percent by 2020. Rapid urbanization. By 2050, almost 60 percent of people in SSA will live in cities, compared with 40 percent in 2010. This means 800 million more people will live in urban environments. Improving access to consumers via mobile technologies. By 2012, over 50 percent of all Africans or more than 500 million people, had own a mobile phone. By 2014, this portion is expected to increase to 56 percent (more than 600 million people), giving Africa one of the world’s highest mobile usage rates. A healthier and more stable business environment. Fewer conflicts, more democratic elections, higher economic growth rates and improved business regulation make Africa more business-friendly every year. This fact has been recognized by the World Bank’s 2009 Ease of Doing Business report, which highlighted Africa as a continent that is making strides toward becoming a business friendly regulatory environment. A loosening of trade restrictions. Africa has fostered a number of formalized trade blocs that have been the catalyst for loosening trade restrictions between member states and the global economy in general.
Best Practices Government Best Practice: Rwanda The year 2010 was the first time Rwanda – a country whose reputation was previously heavily tainted by the genocide - was ranked 80th out of 139 countries in the WEF Global Competitiveness index. Today, Rwanda is among the top five countries in sub-Saharan African. Rwanda has been able to build strong and credible institutions due to its governments zero tolerance on corruption and “labour market efficiency”. Its branding exercise has fast tracked developmental initiatives in anchor industries such as coffee, tea and tourism and most importantly, was embraced by its people. Media Best Practice: The LEAD SA initiative This is a Primedia Broadcasting and Independent Newspapers Group initiative aimed at mobilising South Africans to look within and be the change they want to see. The Broadcast group uses the power of the mass media as well as its extensive network for mobilisation on issues in the country. A notable contribution by the group since the launch of the initiative was its involvement in the mobilisation of South Africans behind schools and hospitals during the strike period in September 2010. • Business Best Practices • MTN has become a leading global company that carries the African name but most importantly, how the company is able to compete and deliver global excellence, contributes to the overall business image of Africa. • Ecobank is an example of an African business investing in Africa contributing to a financial industry image trust of Africa as a place to expand and thrive financially.
Action prioritization Matrix and Stakeholder Engagement Matrix Complete the Action Prioritization Matrix below with the key short, medium and long-term leapfrogging actions. For each identified leapfrogging action, complete the Stakeholder Engagement Matrix below: