1.

Marketing Strategy Report for Zambeef Products PLC

a) Situation Analysis (using the 5 Cs framework)

Company: Zambeef is a leading player in integrated agricultural company that is

involved in the production, marketing, processing and retailing of meats namely beef,
chicken and pork, dairy products, maize and soya beans. This leaves Zambeef in a
strategic position where it is able to establish strict control over its supply chain while
maintaining high quality standards all in equal functions that make costs efficient. The
modern and well equipped abattoirs and processing facilities coupled with a
comprehensive distribution channel will enable the company to deliver fresh products to
the consumers in Zambia and other neighbouring countries.

The company operates over 200 retail outlets, including in-store butcheries in
partnership with Shoprite, allowing Zambeef’s to reach a wide customer base and offer
its products at competitive prices. And since this is a Public Limited Company Its listing
on the Lusaka Stock Exchange (LuSE) has further strengthened its financial position
and commitment to corporate governance. Zambeef's mission of providing quality food
products at affordable prices aligns with its goal of supporting Zambia’s food security,
making it a key player in the country's agribusiness and social development.

Customers: Zambeef's customers include a broad spectrum of the Zambian population,

ranging from individual customers to businesses (restaurants, hotels, and
supermarkets). Key customer segments include middle-income class, urban dwellers
who value quality and convenience, as well as rural communities who rely on Zambeef
for affordable food products. Consumers prioritize product quality, price, and
accessibility.

Competitors: Zambeef faces competition from both local and international players.
Local competitors include Freshpikt, Hybrid Poultry,Mika Meats and Novatek, while
international competition comes from imported goods. The competition is strong in the
meat and dairy sectors, where price sensitivity is high.

Collaborators: Zambeef collaborates with various partners, including local farmers (for
raw materials), retail chains (Shoprite, Pick n Pay ,Chopppies), and international
suppliers of agricultural equipment and technology. These collaborations are crucial for
maintaining supply chain efficiency and ensuring product availability.

Context: Zambeef operates in an economy shaped by agricultural policies, exchange

rate fluctuations, and evolving consumer preferences. Agricultural policies influence the
cost of inputs like fertilizers, seeds, and livestock feed, affecting Zambeef’s profitability.
Exchange rate changes impact the cost of imported equipment and feed while
influencing export pricing. As consumer preferences shift toward affordable, high-quality
food, Zambeef must continually adapt its products.

Urbanization and health consciousness are changing food demand, with a growing
need for convenience and healthier options like lean meats and organic products.
Zambeef must cater to these trends while ensuring a steady supply to urban areas.
Technologically, Zambeef has invested in modern farming and processing to improve
productivity and food safety. Legally, it complies with food safety, animal welfare, and
import/export regulations. Environmentally, Zambeef is under pressure to adopt
sustainable practices, such as reducing waste and improving water usage, to meet
global environmental concerns.

b) SWOT and Issue Analysis

SWOT Analysis For Zambeef

Strengths:

Zambeef’s greatest strength lies in its straight up integrated operations, which allow the
company to control every aspect of its supply chain from production and processing to
distribution and retail. This integration ensures that Zambeef can maintain high quality
standards, minimize costs, and efficiently manage the supply of fresh products.
Additionally, Zambeef enjoys strong brand recognition in Zambia, where it has built a
reputation for providing quality, affordable food products. Its extensive retail network—
with over 200 outlets across the country—gives it a wide reach and enables it to
maintain close relationships with customers. Furthermore, Zambeef's diverse product
portfolio, which includes beef, chicken, pork, dairy products, and crops, caters to a
broad range of market segments, helping the company tap into various consumer
needs.

Weaknesses:

Despite its strengths, Zambeef faces certain weaknesses. The company’s large-scale
operations come with high operational costs, particularly in maintaining its production
facilities, distribution network, and workforce. These costs can put pressure on profit
margins, especially during economic downturns. Zambeef is also vulnerable to
exchange rate fluctuations, as it relies on imported inputs such as equipment and feed.
Significant currency depreciation could increase costs, impacting profitability.
Additionally, Zambeef's dependence on the Zambian market poses a risk, as it limits the
company’s ability to cushion itself from local economic challenges. With relatively limited
international presence, the company remains exposed to domestic market risks, such
as shifts in demand or economic instability.

Opportunities:

Zambeef has several promising opportunities to expand its business. One key
opportunity lies in expanding into regional markets, particularly in neighbouring
countries like the Democratic Republic of Congo (DRC) and Angola, where demand for
quality food products is growing. By extending its operations beyond Zambia’s borders,
Zambeef can diversify its revenue streams and reduce its reliance on the domestic
market. Additionally, there is a growing demand for organic and sustainably produced
food, driven by increasing health consciousness and environmental awareness among
consumers. By offering more organic and sustainable options, Zambeef can tap into this
lucrative market. Furthermore, the adoption of e-commerce presents an opportunity to
reach more customers, particularly in urban areas. Developing an online platform for
ordering and delivery could help Zambeef expand its customer base and improve
convenience for consumers.

Threats:

Zambeef faces several external threats that could impact its business. One of the most
significant threats is increased competition from cheaper imports, particularly in the
meat and dairy sectors. Imported products, often priced lower due to lower production
costs in other countries, could erode Zambeef's market share. Another threat comes
from potential regulatory changes affecting the agribusiness sector, such as new food
safety standards, environmental regulations, or import/export controls. These changes
could increase compliance costs or disrupt Zambeef's operations. Lastly, climate
change poses a long-term threat to agricultural productivity, as changing weather
patterns, droughts, and floods can negatively affect livestock and crop yields. Zambeef
will need to invest in climate-resilient farming practices to mitigate these risks and
ensure long-term sustainability.

Issue Analysis for Zambeef

One of the key challenges Zambeef faces is managing high operational costs, which
arise from its large-scale, vertically integrated operations. The company has significant
expenses related to production, processing, distribution, and maintaining its retail
network. These costs can become particularly burdensome during times of economic
downturn, when consumer spending power decreases and input costs, such as feed
and equipment, may rise due to exchange rate fluctuations. Zambeef also faces
increased competition from both local agribusinesses and international players offering
cheaper imported products. These imports, particularly in the meat and dairy sectors,
can undermine Zambeef's market position by offering consumers lower-priced
alternatives, pressuring the company to maintain competitive pricing while controlling its
own costs.

In addition to cost management and competition, Zambeef must adapt to changing

consumer preferences, particularly the growing demand for sustainable and health-
conscious products. As more consumers become aware of the environmental impact of
food production, there is increased pressure for Zambeef to adopt and promote
sustainable farming practices. This includes reducing waste, minimizing the carbon
footprint, and ensuring animal welfare standards. Moreover, consumers are shifting
toward healthier options, with greater interest in organic, lean, and less processed food
products. To maintain and expand its market share, Zambeef will need to invest in
innovation, product diversification, and marketing strategies that align with these
consumer demands while maintaining its commitment to affordability and quality.

c) Marketing Plan Objectives

Zambeef’s marketing objectives focus on increasing market share, expanding

regionally, launching new products, and boosting online sales. To achieve a 10%
increase in market share in Zambia within the next 12 months, Zambeef will focus on
enhancing its competitive edge through pricing strategies, product differentiation, and
expanding its retail presence in underserved regions. Strong marketing campaigns,
customer loyalty programs, and partnerships with key retailers will play a vital role in
reaching this goal. In addition, Zambeef aims to expand its retail footprint into DR
Congo and Angola over the next two years by conducting market research and forming
strategic partnerships. These efforts will allow Zambeef to capitalize on the demand for
quality food products in neighbouring markets while leveraging its vertically integrated
supply chain.

Zambeef also plans to launch a new line of organic products targeting health-conscious
consumers in Zambia by the next quarter. The launch will be supported by an integrated
marketing campaign that emphasizes health and sustainability, positioning Zambeef as
a leader in organic offerings. Collaborating with influencers and offering promotions will
help attract early adopters. In addition, Zambeef aims to increase online sales by 15%
within six months by improving its e-commerce platforms. Enhancing user experience,
optimizing the checkout process, and offering more payment and delivery options will
make online shopping more convenient for customers. Digital marketing campaigns,
personalized offers, and social media engagement will be crucial to driving traffic and
increasing conversions.

d) Differentiation and Positioning

Differentiation: Zambeef differentiates itself through its integrated supply chain, which

ensures product quality from farm to table. The company also stands out for its wide
range
of products, including fresh and processed meats, dairy, and crops. Zambeef’s

commitment to quality and affordability further strengthens its competitive position.

Positioning: Zambeef is positioned as a reliable and affordable provider of high-quality

agricultural products in Zambia. The company aims to be perceived as a leader in

sustainable farming practices and a trusted brand for both urban and rural consumers.

The positioning statement could be: "Zambeef – Feeding Zambia with quality and care,

from our farms to your table."

e) Marketing Strategy

Target Market:

Primary Target Market:

Zambeef’s primary target market consists of urban middle-income households in

Zambia’s major cities, particularly Lusaka, Kitwe, and Ndola. These urban consumers
are characterized by their demand for quality, convenience, and affordability in food
products. As the middle class in Zambia continues to grow, there is an increasing
preference for branded, high-quality products that offer a balance between price and
value. This segment values the convenience of having access to fresh, ready-to-cook
food items, such as Zambeef’s beef, chicken, dairy, and processed foods, through
easily accessible retail outlets and supermarkets.

With busy lifestyles and increasing health consciousness, these consumers seek
reliable and trusted brands that can offer them nutritious and safe food options for their
families. Zambeef's wide retail footprint and partnerships with large supermarkets like
Shoprite make it convenient for this demographic to purchase products in a single
shopping trip. Marketing efforts toward this group will focus on reinforcing Zambeef's
reputation for high quality, freshness, and affordability while highlighting the
convenience of its distribution network.

Secondary Target Market:

The secondary target market includes rural communities and small businesses across
Zambia, as well as potential customers in regional markets like DR Congo and Angola.
Rural households and small businesses, such as local food vendors and restaurants,
rely on Zambeef for bulk purchases of affordable food items. For this segment,
affordability and consistent supply are critical, making Zambeef a preferred supplier due
to its vertically integrated operations, which ensure stable pricing and regular product
availability.

These consumers may have limited access to premium retail outlets but rely on smaller,
local markets where Zambeef’s products are distributed. Additionally, Zambeef’s plans
for regional expansion into DR Congo and Angola focus on tapping into the growing
demand for high-quality, affordable food products in these neighbouring markets. With
limited local agribusiness infrastructure in these countries, Zambeef has the opportunity
to fill gaps in food supply chains by offering fresh and processed products. Marketing to
this secondary target group will emphasize Zambeef’s reliability as a bulk supplier, its
affordability, and its ability to deliver consistent product quality at scale.

Marketing Mix (using the 4Ps framework):

Product:

Zambeef offers a diverse product line that includes fresh meats such as beef, chicken,
and pork, as well as processed meats, dairy products like milk and eggs, and a variety
of crops, including maize and soya beans. This broad product portfolio caters to
different consumer segments, ranging from price-conscious buyers seeking basic food
staples to those looking for premium cuts and processed goods. To meet the growing
demand for healthier options, Zambeef plans to introduce a new organic product line,
which will include organically raised meats and dairy products, free from synthetic
fertilizers, pesticides, and antibiotics. This line is designed to appeal to health-conscious
consumers who prioritize natural, sustainably produced food. The organic range will
complement Zambeef’s existing offerings, positioning the company as a leader in both
conventional and organic food markets.

Price:
Zambeef employs a competitive pricing strategy that caters to the price-sensitive
Zambian market, ensuring its products remain affordable for a broad customer base.
This strategy is essential for maintaining market share, especially in a country where
economic conditions can limit consumer purchasing power. However, for its new
organic product line, Zambeef will implement a premium pricing model. While slightly
higher than its conventional products, the price reflects the added value of organic
farming practices, superior quality, and the health benefits associated with natural
products. This pricing strategy allows Zambeef to differentiate its organic products while
still maintaining overall affordability for its core offerings. The company will clearly
communicate the value of the organic line, emphasizing the long-term health and
environmental benefits to justify the higher price point.

Place (Distribution):

Zambeef's extensive distribution network is a key strength, with products available

through a variety of channels, including Zambeef’s own retail outlets, in-store butcheries
at major supermarkets like Shoprite and Pick n Pay, and its online store. This
comprehensive retail presence ensures that Zambeef’s products are easily accessible
to a wide range of consumers across Zambia, from urban middle-income households to
rural communities. To support its planned expansion into regional markets like DR
Congo and Angola, Zambeef will establish local distribution centres in these countries,
enabling efficient product delivery and ensuring that the freshness and quality of its
goods are maintained. Additionally, the company’s online store will play an increasingly
important role as Zambeef looks to grow its e-commerce platform, offering consumers
the convenience of shopping from home and receiving products through reliable
delivery services.

Promotion:

Zambeef’s promotional strategy leverages a mix of traditional media (TV, radio, print)
and digital platforms (social media, website) to reach a broad audience. The company’s
advertisements on TV and radio emphasize its reputation for quality, freshness, and
affordability, while digital marketing campaigns engage consumers on social media
platforms like Facebook and Instagram. To promote the launch of its new organic
product line, Zambeef will run targeted promotional campaigns highlighting the health
and environmental benefits of organic products. This will include in-store promotions,
product sampling events, and collaborations with health influencers and nutrition
experts to build credibility and awareness. In addition, loyalty programs and discounts
for early buyers will encourage consumer trials, while Zambeef’s website will feature
detailed product descriptions, health benefits, and recipes to educate consumers on the
advantages of organic living.