INTRODUCTION
Superfoods have revolutionized recent dietary habits and with the advancements in technology, improved import, export and production infrastructures, it has become much more accessible to an everyday consumer than anticipated. This report will analyze the market that these foods are in and take a closer look at the placement of BaoActive range of superfood powders that include Baobab and soon to launch moringa. It will then propose ways in which the business strategy and marketing could be improved to have market advantage and increase its customer base.
GLOSSARY OF TERMS
SUPERFOOD
Nutrient-dense food product
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CONSUMER
A person who purchases goods or services
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DEMOGRAPHIC
A certain part of the population
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SUPPLEMENTATION
Additives in a product
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SUSTAINABLE
Being able to maintain something without depleting resources
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FAIRTRADE
Trade between brands, where all parties involved are compensated fairly
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RIVALRY
Trade between brands, where all parties involved are compensated fairly
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CORONAVIRUS
Respiratory virus, also known as COVID-19
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URBANIZATION
The development of increase of people permanently concentrated in small areas
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PENETRATION STRATEGY
Marketing strategy that attracts consumers to purchase a recent product
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SKIMMING STRATEGY
Marketing strategy that increases price of product and gradually decrease over time, resulting in consumers purchasing the product
1.
SEGMENTATION
The consumer base for the superfoods industry has increased dramatically since its
introduction, largely due to it being marketed as ingredients for optimized nutrition
(Macgregor, et al. 2018:2). These products are most commonly found in health food
shops such as Wellness Warehouse and retail sections in affluent areas (Clicks,
Dischem etc.) as well as e-commerce platforms like Takealot and Faithful to Nature.
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With growing concerns around overall health, longevity, alarming obesity rates and
increase in chronic illness, the superfood category has increased in popularity, even
more so during the COVID-19 pandemic. As the demand for these nutrient-dense food
sources go up, so does the cost of production and import, largely due to the rarity of the
unique foods (Erler et al. 2020). This results in a sale price that is only able to be
afforded by a largely white, middle to upper class community in South Africa. The
buying decisions by this demographic is primarily made by females as individuals and
as part of households (Groeniger et al. 2017)).
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This target audience is also physically active and involved in their social communities,
often sharing insights and opinions regards the efficacy of the products while also
engaging in a growing concern for the environment and the overuse of GMOs,
pesticides and artificial ingredients. Since many superfoods claim to slow ageing and its
effects, it is most popular with an older demographic that feels the need to halt or
reverse their ageing process by means of wellness and supplementation (Macgregor et
al. 2018: 2).
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This, however, does not exclude a younger, millennial generation aged between 20-35
that seeks to make more sustainable health choices as well as reduce their carbon
footprint and impact through careful food choices with less processing (Loyer, 2016).
As a product, Bao-Active Baobab powder is produced and sold by a larger company
called EcoProducts. EcoProducts produces pure baobab powder and other baobab
products in Limpopo, where a local community cares for the trees and collect ripe fruit
that has fallen to the ground (Venter. 2021).
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EcoProducts also makes large quantities of baobab powder available for repackaging
and sale. This is beneficial in creating a steady income and long-term relationships with
vendors both locally and internationally. This enables smaller companies who are
unable to harvest the fruit themselves to also provide to their customer base as well as
being able to align to the sustainability and fair-traid values of EcoProducts.
2.
COMPETITION
In the industry, competition refers to a contest or rivalry between firms selling similar
goods and/or targeting the same target audience in order to maximize sales, revenue,
and market share (Market Analysis Report, 2019). As it is known, nutritional
supplements and the numerous ‘superfoods' on the market are highly competitive.
A new line of superfoods has been launched, and with baobab powder as the main
ingredient, the competition between superfood brands/companies/products is tight since
each of them want to either grow their audience, expand their market, obtain more sales
and to gain popular demand. With BaoActive being a new product/company, they will
have to tackle through the hardships of other superfood products/companies.
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In the superfoods market/sector, there are a lot of suppliers that each have a common
goal; to gain more customers, to expand their market, to obtain more sales, and to gain
popular demand. Over the years, growing consumer interest in a healthy diet has led to
a flourishing food and beverage industry, till this day, the trend is expected to continue
for a period of time. This has resulted in propel of demand in the superfood market in
the upcoming years. Some direct competitors such as Wazoogles, Soaring Free,
Rawlicious, etc, are providing various superfoods in order to increase their market
presence. There are also prominent companies in the market such as Sunfood,
Supernutrients, Nature’s Superfoods LLP, etc., of which they have collaborated with
farmers across the world, leading to the process of obtaining ingredients much easier
and more accessible.
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There is even a high demand for blueberries, which has been labeled a superfood, and
it has enabled South African producers to coast through the coronavirus pandemic,
exporting punnet after punnet of berries all year. In recent research/findings, it states
that at the Chiltern blueberry farm, they delicately pack the tiny dark blue balls into
carefully stacked boxes, ready for shipment, surrounded by shrubland. According to the
International Trade Centre, global demand for blueberries has increased by 12% per
year since 2013 (ENCA, 2021).
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Fruits and vegetables are one of the indirect competitor that I would mention, as some
of its factors such as increasing middle-class population, increased disposable income,
rapid urbanization, evolving customer lifestyles, and the rising popularity of veganism
are expected to propel the fruits and vegetable demand against the Superfood market.
3.
MARKETING
MIX
The Marketing Mix of a company is collectively made up of price, product, and
placement in the market. Simply put, these are described as the four main ingredients of
marketing a company (Macgregor et al, 2018: 4). As a product, BaoActive and many
other superfood products are sold through health food stores, this may be in shopping
malls, or through online stores (e.g. www.faithful-to-nature.co.za,
www.baoactive.co.za, www.ecoproducts.co.za etc.). The superfood is
also available for purchase from national pharmacies like Clicks and Dis-Chem and
Takealot, a national multi-retail online store.
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BaoActive baobab powder is available in two sizes; the 300g doypack and 80g baobab
capsules. The design of the doypack is a simple white pack, with the orange design on
the left of the pack and the product name and attributes on the right. Similarly, the
capsule pack is a small white tub, with the same orange design on the left and important
information on the right. These design decisions allow it to be easily noticed on shelf for
its clear communication and product description in relation to other, more illustrative,
packages that it is placed with. The large white space used on this package creates the
perception of increased health and is beneficial to the brand in this way (Minton &
Cornwell, 2015)
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The baobab powder costs R136.23 and the cost R143.30 for 160 capsules (Venter,
2021). The penetration strategy is to make the baobab powder more affordable than
competitors, to appeal to a wider range of consumers. The skimming strategy used is
making the baobab capsules more expensive, even though they are smaller in size than
the baobab powder, however do last longer.
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Currently, there is not a wide range of products within the BaoActive brand, consisting
primarily of baobab powder and baobab capsules. While there is a plan in place to
launch 3 more variants of BaoActive products, consumers may favor other superfood
brands in the meantime, due to the lack of variety. However, BaoActive is locally
produced in Limpopo and supports the Baobab Foundation, founded by EcoProducts,
which aids the surrounding communities by employing native women and supporting
local schools (Venter, 2021).
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The baobab trees used in the products are also harvested from the fallen fruits only,
leaving the baobab tress unharmed (Venter, 2021). This is beneficial for the BaoActive
brand, as it attracts consumers who support local, sustainably produced products.
BaoActive is distributed through EcoProducts to retail stores and other baobab powder
brands. BaoActive products are also available for sale in bulk through the EcoProducts
website.
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Currently, BaoActive does not have any active social media presence and do not
promote products regularly on any platforms other than their website.
4.
PROPOSAL
To build an adequate competitive advantage in a saturated industry, it would be
beneficial to incorporate the core values of the brand and appeal to a consumer base
with similar values. These include sustainability, inclusivity and fair-trade practices.
Since the COVID-19 pandemic and the implemented lockdown, many people have
created online communities in which to share new products and opinions.
It would be advantageous to BaoActive to create an online presence through which they would be able to reach a larger customer base. This could be done through active Facebook and Instagram accounts that would share the EcoProducts and BaoActive story and values. Since the website has a section that incorporates their product into healthy recipes, it could provide a gateway into a consumer base that is unaware of the benefits of the product. The social media accounts could provide a platform for recipe demonstrations
with a health benefit explanation. These accounts could also be used to share the
stories of the individuals who benefit from the Baobab Foundation and the local villages
that have been able to improve.
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With regards the new products in their range, it would be beneficial to have a campaign
in which the benefits of the moringa and hibiscus blends are displayed and
communicated to the consumer base in an interactive way that is educational.
This could include having sample tastings in Wellness Warehouse stores for a limited
time and free samples to go along with the original BaoActive Baobab powder when
purchased.
CONCLUSION
To build an adequate competitive advantage in a saturated industry, it would be beneficial to incorporate the core values of the brand and appeal to a consumer base with similar values. These include sustainability, inclusivity and fair-trade practices.
Since the COVID-19 pandemic and the implemented lockdown, many people have created online communities in which to share new products and opinions. It would be advantageous to BaoActive to create an online presence through which they would be able to reach a larger customer base. This could be done through active Facebook and Instagram accounts that would share the EcoProducts and BaoActive story and values.
Since the website has a section that incorporates their product into healthy recipes, it could provide a gateway into a consumer base that is unaware of the benefits of the product.
The social media accounts could provide a platform for recipe demonstrations with a
health benefit explanation. These accounts could also be used to share the stories of the individuals who benefit from the Baobab Foundation and the local villages that have
been able to improve.
With regards the new products in their range, it would be beneficial to have a campaign in which the benefits of the moringa and hibiscus blends are displayed and communicated to the consumer base in an interactive way that is educational.
​
This could include having sample tastings in Wellness Warehouse stores for a limited
time and free samples to go along with the original BaoActive Baobab powder
when purchased.
LIST OF REFERENCES
BaoActive. 2021. BaoActive Baobab Superfruit. BaoActive.
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Borden, N. 1984. The Concept of Marketing Mix. Harvard Business School. 1(7-12).
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eNCA. 2021. Demand for SA 'superfood' blueberries booming. eNCA.
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Erler,M. Keck, M., Dittrich, C. 2020. The changing meaning of millets: organic
shops and distinctive consumption practices in Bengaluru, India. Journal of
Consumer Culture. Germany. Sage.
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Groeniger, J.O., Lenthe, J.F., Beenackers, M.A. & Kamphuis, C.B.M. 2017: Doessocial distinction contribute to socioeconomic inequalities in diet: the case of‘Superfoods’ consumption. International Journal of Behavioural Nutrition andPhysical Activity. 14 (40).
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Loyer, J. 2016. [The social lives of superfoods]. Australia: School of Humanities.
(Unpublished PhD Thesis)
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Macgregor, C., Petersen, A., Parker, C. 2018. Promoting a healthier, younger
you: The media marketing of anti-ageing superfoods. Journal of Consumer
Culture. Australia. Sage
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Venter, S. 2021. Ecoproducts. [Online]. Available:
https://www.ecoproducts.co.za/