.1.1. The projected industry growth promises greater prospects for the Lancewood business. Examine the potential risk levels posed to Lancewood when expanding their business deeper into South Africa and further into Africa, due to the following risk factors: Theft Human error.
Article 1: Lancewood launches the first double cream lactose-free yoghurt in SA
Lancewood recently launched Lactose-Free Tropical Fruit Yoghurt, which was intended to appeal to two key consumer segments: real, full fat dairy fans and those who may be lactose-sensitive or intolerant – both of whom can now enjoy the delicious, extra creamy and fruity taste that this yoghurt has to offer. The lactose free yoghurt is made by adding a lactase enzyme that breaks down the lactose sugar into glucose and galactose. While this is the only flavour offered in double cream format, Lancewood does have two low fat flavour choices in lactose free.
“Consumers are constantly looking for new and delicious ways to spoil themselves. With our expanding yoghurt range, we strive to offer the perfect flavour for every moment to meet various consumer demands. Whether you’re following a specific diet, looking for a pick me up, protein boost, convenient snack or simply craving an indulgent treat, Lancewood has the ideal yoghurt lineup for all.” Shereen Anderhold, Lancewood’s marketing manager.
Article 2: Africa Yogurt Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)
The African yogurt market is expected to record a CAGR of 5.35% during the forecast period 2022- 2027. The pandemic COVID-19 affected the yogurt market but positively with the growing health- consciousness in the African region. Key players are offering products with organic and natural ingredients. African yogurt manufacturer Chirri uses fresh organic milk, couscous, and real fruits to make century-old African-style yogurt. The product does not have added artificial colors, flavors, and sweeteners, which makes it a perfect choice for active and health-conscious users.
Increasing awareness of the health benefits of yogurt acts as a catalyst for the growth of the African yogurt market. Drinkable yogurt is the fastest-growing segment in South Africa. The rise in disposable incomes, coupled with an increase in demand for convenience food and growing awareness of yogurt’s health benefits, drives the growth of this market.
Growing Demand for Probiotic Food: The high prevalence of digestive disorders drives the demand, for probiotic foods, across various consumer groups. African yogurt market is mainly driven by the health benefits associated with consuming yogurt and increasing awareness among people about losing weight.
South Africa Holds a Major Market Share: Emerging markets like South Africa are driving the growth of yogurts. Kenya is another major market in the region.
Competitive Landscape: The vendors compete for innovation, pricing, and distribution, to stay competitive in the business. The cash-strapped consumers in this region look for promotional deals and switch brands to get value for their money. So the companies are focused on this aspect. Private labels are expected to increase their market share during the forecast period.
“The contemporary business environment is characterised by increased competition between supply chains and alliances, rapidly changing technology and highly demanding customers across the globe.” (Hove-Sibanda, 2021:373).
Q.1.1. The projected industry growth promises greater prospects for the Lancewood business. Examine the potential risk levels posed to Lancewood when expanding their business deeper into South Africa and further into Africa, due to the following risk factors:
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Theft
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Human error.
Make a recommendation to the business on how to they should go about mitigating each risk.
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