This paper will analyze the company OLAM Ghana a subsidiary of Olam International Limited. Olam Ghana is engaged in export of agricultural commodities including cocoa, cashew, sheanuts and wood products. It also imports and distributes rice, sugar, dairy products, tomato paste and edible oil. (Olam, 2014)
1) Target Market
Olam Ghana target total value chain distribution (distributors, wholesalers and retailers). Olam Ghana distribution network covers whole Ghana; however the customers are widely distributed in all the areas. Most of the Sales generated are between the greater Accra and Ashanti region represent s 30% and 24% respectively.
2) BL Marketing Goals
Target a 20% net profit growth from FY2013 by the end of FY2015.
The estimated net profit of Olam Ghana is 2% of total revenue or 13.5$MM for the FY2013. The marketing campaign will drastically increase the contribution of revenue of local Packaged Rice in Ghana, and thus will increase the rice business line revenue of Olam Ghana by 25% by the end of FY2015.
Target a reduction of the Greenhouse emissions by 5% in 2015 and by 10% by 2020 per ton of product.
Olam Ghana is committed to working ethically and sustainably with its small scale farmers and their land. The increase of revenue from the marketing campaign shall come from the local production and farming otherwise this would badly affect the planet due to the emissions and fuel consumptions from sea freight ships.
In order to achieve the above goal the below measures should be severely taken:
- Printing all business stationary using friendly environmentally inks and recycled papers.
- Create online catalogues instead of printing ones.
- Use minimal fossil fuel inputs and use draft animals instead.
Olam Ghana is the home to some other regional and Africa offices, they employs 674 employee and 1031 seasonal workers (Olam, 2013). Besides, Olam indirectly improve the livelihood of more than 130,000 farmers.
The goal is to:
• Promote socio-economic development and help reduce rural poverty by 5% by denoting 0.5% of the total revenue in the next 5 years.
• Spend 5% of the total annual net profit on training and staff wellness programs by the end of FY2014.
II. Marketing Mix
1) Product Analysis
Olam Ghana has a wide Portfolio of products. This study will focus only on the milled rice. Its recognized brand in Ghana is the Royal Feast Jasmine Rice. Few companies in Ghana do care about the local milled rice; most of the competitors depend on imported rice. This is why milled rice would be different from other competitors and it's friendlier to the environment. Local rice is kindlier to the environment from the imported rice which would involve huge ships with highly fuel consumptions. Besides, Rice milling will engage more people (farmers) in the process and not like the imported rice that only involve the imported company and distributors.
According to BMGF Rice Value Chain Analysis (Rogers, 2012), the...