A need analysis and the selection of a distribution channel for an imported meat product In South Africa

Owing to the increase in urbanisation and disposable income, South Africa offers the food industry enormous growth opportunities. According to Louw, Jordaan, Ndanga and Kirsten (2008: 287), supermarkets have become vital role players in South African food consumption. Within this market, it is especially important to note that “preferences for high quality… foods are emerging” (Louw et al, 2008:288). This highlights the need to introduce superior quality foods to the South African food market. This study took this need one step further by asking the question, “is there a need for a high-quality foreign product in the South African market?” The primary objective of this study was to conduct a needs analysis to determine whether there is a need to introduce a selected foreign product into the South African market. The high-quality product chosen for this research is a meat product called PICK salami. In addition, the distribution channel that would be the most appropriate for the possible introduction of the product to the market was also identified in the study. To accomplish this, a relevant literature study was performed. To realise the research objective, a triangulated research approach was selected and a multiple-case study conducted. The units of analysis chosen for this study were the four major South African supermarket chains: SPAR Group Limited, Shoprite Checkers, Woolworths (Pty) limited and Pick ’n Pay Retailers (Pty) Limited. The data from this study was then analysed to determine meaningful results. From the research, it was concluded that there is a need for a high-quality meat product such as PICK Salami in South Africa and that SPAR Group Limited is the most viable distribution channel to use. Both South Africa and Hungary can benefit from such a business venture as gaps in the market can be filled and both countries can profit, despite the current global economic downturn