INTRODUCTION
Grace Kennedy was established 88 years ago as a small privately owned trading company. Since that time it has expanded and diversified and become a publicly traded conglomerate with 60 subsidiaries involved in several industries including financial, insurance, remittance, hardware retailing, food processing and food distribution. These subsidiaries are spread throughout the Caribbean and the United Kingdom. In 1995 Grace Kennedy formulated its 2020 vision with the objective to transform itself from a Jamaican trading company to a global consumer group with roots in Jamaica. 2006 saw this vision being broadened as the company undertook a strategic reorganization under the theme “designing Grace Kennedy for the 21st century,” aimed at expanding operations within the Caribbean and internationally improving efficiency, innovation and profitability.

Through its subsidiary Grace Foods, Grace Kennedy has established itself as the Caribbean’s largest supplier of Caribbean and other ethnic foods to over 38 countries globally; with retail presence throughout the Caribbean, the United States and the United Kingdom. GK Foods’ culture of innovation over the years has allowed it to respond positively to market adjustments with adjustments of its own in regards to its product offerings and cost saving operations.

Grace Foods operates through eleven subsidiary companies and independent distributors selling products including beverages, canned meats and fish, chips, coconut products, dairy products, instant porridge, jams and jellies, ready mixes, rice combos, sauces and condiments, spices and seasoning, soups, teas, and veggie meals. Their mission is “To satisfy the unmet needs of Caribbean people wherever we are in the world”.

As part of its 2020 vision Grace Kennedy has undertaken an expansion into markets that are similar to their home market. This expansion plan has in recent years moved into the emerging markets of the African continent. The Ghanaian market has been kind to Grace Foods evidenced by the success of their flagship products into the market- it line of milk based products.
This document attempts to explore the expansion of Grace Foods in the Ghanaian market. The product of choice will be the Earth Chef line. Earth Chef is a soy based meat flavored line of products. This analysis attempts to determine the viability of this particular product line in the Ghanaian market and proposes how the implementation of the introduction of this product line would take place.

GRACE’S MISSION STATEMENT
The mission of Grace Kennedy is “To satisfy the unmet needs of Caribbean people wherever we live in the world”.

While the mission suggests a restriction to Caribbean people, their 20/20 vision is to transform the company from being a Jamaican trading company to a global consumer group. This has led them to find homogenous markets where tastes and habits are similar to that of the Caribbean Diaspora. This would facilitate the company making very little adjustments to their core offering.

Thus the export initiative to Ghana fits into this total vision of the company.

RECOMMENDED STRATEGIES FOR GRACE FOODS USING PORTER’S GENERIC COMPETITIVE STRATEGIES
Cost and Differentiation Strategy
The recommended strategy is a combination of cost and differentiation. Combining both strategies can be thought of in some circles as having no strategy. However the argument also exists that cost efficient firms already operate at maximum efficiency scale they will therefore have no option but to pursue a differentiation strategy as further cost savings is not possible (Peng, 2009). Therefore the combination of the two strategies is acceptable. This ‘straddling of strategy’ is enabled by the ability to engage in mass customization.
This strategic direction was selected because in Ghana a third of the population lives below the poverty line. In the capital city of Accra approximately 58% of the residents live in low income communities. The middle income areas account for approximately 32% of the population. Cost of food is therefore expensive. Another problem is that the rate of population growth in the urban areas and particularly Accra is so fast that is has created a food deficit. The Earth Chef product is naturally a low cost product and therefore perfect for this market. The differentiation aspect of the strategy exists because the product is available in a variety of meat like flavours and is textured to taste like meat- a current expensive food item for Ghanaians.

TARGET MARKETS- ACCRA, GHANA
Meeting the needs of nutrition and affordable food protein
Ghana has been selected for the African launch for the Grace Earth Chef line product because it is one of the more politically stable countries in Africa. Ghana is also considered a viable gateway to the West African market as it is a part of ECOWAS (Economic Community of West Africa) markets with a total populace of 250 million.
Grace successfully made their entry into the Ghanaian market a few years ago with its nutritional milk based products. The market has been found to be friendly and accommodating with its import policy and distribution networks. Another reason for this geographic target market is that under-nourishment estimates are 18% of the population with children under 5 years old being the most vulnerable. For many years the government has been promoting soy - another high protein as a way to reduce under nourishment. Grace Earth Chef Veggie Meals would fill this nourishment need within the population.
To begin our foray into the market we propose that Grace Foods concentrate on the urban areas of Ghana particularly the capital city Accra. Accra has a population of 1.6 million people and climbing, as the rate of population growth for the city averages 3% per annum. Complicit with this population growth is the growth of low income communities with many persons unable to purchase high priced nutritious food. Growing population size and the rising per capita income makes these cities viable markets.
The market is already familiar with consumer pre-packaged foods which are imported from Europe, South Africa, and Asia which dominates the market. Earth Chef is 100% meatless TVP (Textured Vegetable Protein), available in five flavours. It is considered to be a good source of calcium and iron. It has more protein than meat, costs less than meat and easy to prepare.
The diet of the average Ghanaian consists of mostly starchy foods. Meat is a luxury option for the working class it is not consumed often due to the cost. Most of their meals are soups or stews, in which Earth Chef would be ideal for. They are familiar with curry, but it is not as popularly used as in Jamaica. One of the problems experienced there is the lack of ability for food storage, as there is not widespread availability of refrigeration. Earth Chef would alleviate this problem owing to its convenient package and serving sizes.

MARKET ENVIRONMENT
Demographic analysis: demographic changes likely to affect the target market
A West African nation, Ghana has a population of about 24 million people who belong to more than 100 different ethnic groups. The major ethnic groups in Ghana include the Akan with the largest percentage of 49.3%, Ewe, Mole-Dagbane, Guan, and Ga-Adangbe. The subdivisions of each group share a common cultural heritage, history, language, and origin. The official language is English, while French is also spoken. Most Ghanaians also speak at least one local language (Akan, Dangbe, Ewe, Kasem, Gonja, Dagare, Gas, Dagbani and Nzema are the major languages).
No part of Ghana is ethnically homogeneous. In fact in this country where 59% of the population is urbanized (Ministry of Local Government), the urban centers are ethnically mixed owing to migration to towns and cities by those in search of employment as the country becomes less agricultural and more industrialized. This trend is expected to continue as the country boasts an annual rate of urbanization of 3.5% (CIA Factbook, 2008).
In Accra, the geographic location of interest for the product’s introduction, the population is youthful with 56% of the population under the age of 24 years (Ministry of Local Government). It is expected that the limited family planning practices and pro-natalist tendencies of the general population will also contribute to the growth of the urban population for the foreseeable future. Development analysts estimate a 44.7% annual growth in Accra’s population (Ministry of Local Government).
Aside from the natural numbers the population of Ghana has special health and economic needs that the product can address. The estimate of undernourishment among the total population is 12% with percentage of children under age 5 malnourished being 18%. This situation therefore presents a significant opportunity for the introduction of a high nutrition soy bean based product such as Grace Earth Chef which is a rich source of protein.
Economic trends: economic trends that might influence the future of the market
The economy of Ghana has moderately improved in recent years with its GDP increasing from US$304 in 2002 to US$712 in 2008 (CIA Fact Book, 2010) despite its susceptibilities as a low-income food deficit country (World Food program, 2010). The country import commodities largely capital, equipment, petroleum and foodstuffs from main trade partners China 16%, Nigeria 15%, India 5.6%, US 5.6%, France 4.5%, and UK 4.5% (CIA Fact Book, 2008). The opportunity for food export is grounded in the fact that the country under-produces what it needs to consume.
Economic reports and publications from reputable and influential organizations also suggest that it is a viable market for investment. The 2008 United Nations Human Development Index (HDI) Report which explores challenges including poverty, gender, democracy, human rights, water scarcity, climate change, mobility, human liberty and globalization ranked Ghana 135 out of the 177 countries surveyed. The 2009 World Bank “Doing Business Report” that ranks economies on the ease of doing business ranked Ghana 92 out of 183 countries surveyed. The Heritage Foundation Index of Economic Freedom that examines the right of property ownership, fully realized freedoms of labour, capital and goods and an absolute absence of coercion or constraint of economic liberty ranked Ghana 91 out of 157 countries surveyed. Transparency International (TI) Corruption Index ranked Ghana 69 out of 179 countries surveyed, while the World Economic Forum (WEF) Global Competitiveness Report placed Ghana at number 59.
Government of Ghana Policy towards Soy and Imports: current or emerging political-legal issues likely to affect the product
Soy beans and their by- products have been promoted by the Government of Ghana since the 1930s with the aim of promoting: 1. Soybeans cultivation 2. Soybeans utilization to improve human and animal nutrition 3. Production of oil for human use and cake/meal for animal feed 4. Small scale production of infant weaning foods 5. Domestic consumption of soy bean in milk, flour, etc.
The government’s Food Crops Development Project (FCDP) promotes the integration of soy in the Ghanaian food industry through giving incentives to farmers interested in the cultivation of the crop and facilitating farmers’ access to loans, making seeds available for interested farmers, organizing regional workshops and seminars on household utilization and participating in soy bean utilization studies in the country. The FCDP is also supporting adaptive (agronomic) research of soy for food production including the formulation of high protein baby foods and infants’ weaning foods to solve the protein energy malnutrition among the poor in Ghana (Plahar, 2006).
A strong opportunity for the product entry is the fact that owing to such government promotions there are no set quotas, restrictions, tariffs or incentives for the importation of Soy products/ingredients into the country (Ministry of Agriculture).
Politically the country is stable and bears no risk of the kind of ethnic conflict or civil wars as in neighbouring African countries and is in fact expected to continue on its path of progress (Control Risk, 2007). It is therefore suitable for a range of investments types including export without fear of losing repatriation of earnings.
The government’s Investment Promotion Centre also argues that the country is growing in its attractiveness to investors with well-developed infrastructure, electricity and water supplies, internal and external communications, and sea and airport facilities (Ghana Investment Promotion Centre, 2010).
Technological changes that can potentially affect the product development, buyer acceptance, and the development of substitute products
A long standing challenge to the food sector and in particular the soy industry has been the low-level food processing capacity in the country. The thrust of the government to improve this as explored above does present opportunities and challenges to the market sustainability.
Grace can join the current international collaboration on product and recipe development, quality evaluation and promotion development being coordinated by the Ministry of Food and Agriculture (MoFA Soybean Committee – CSIR, Crops Research Institute CRI, Savannah Agricultural Research Institute SARI, Food Research Institute – FRI, Technology Consultancy Centre – TCC, Agric. Engineering Services Dept. – AESD, the International Institute of Tropical Agriculture, producers and farmers groups). This would open up local manufacturing opportunities of the product. Taking advantage of the opportunity would also avert changes of substitute products coming along with stronger national backing.

The Consumer Market
Cultural, social, personal and psychological factors, including consumer buying roles and buying behaviors that may influence on consumers buying the product The consumer market is a very open market to the introduction of new products (Kwakwa, 2010; Tankebe, 2010). This means that export of the product will be a business to consumer export venture. The Ghanaian diet is generally consisted of cereals and starchy foods (figure 1). Cereals include maize, rice, millet, and guinea corn, while starchy crops include cassava, yam, cocoyam (taro) and plantain (Ministry of Agriculture). These starchy dishes are often complimented by either stews or soups, flavoured by palm oil, dried smoked fish or dried smoked shrimp (Kwakwa, 2010). Meat makes up the smallest segment of the diet (figure 1) due to its associated costs which are outside the affordability of most households. The stews and soups made will have lots of liquid and relatively little meat. On the roadside food sold is principally the stew and starch, with meat being optional and sold by chunks. Meat is almost like an optional extra for the working class (Kwakwa, 2010).

Figure [ 1 ]: Ghanian Food Purchases by Food Groups
A small portion of the population is aware of soy’s nutritional and health benefits. Awareness of soy as an ingredient and different products is higher among female consumers who shop for the household more often than males (Kwakwa, 2010; Tankebe, 2010). Most of those having knowledge of it describe it as highly nutritious, inexpensive and the best source of plant protein, fortifying the immune system, and believed to aid in the preventing the development of cancer and containing low cholesterol (Research International, 2006). The patronage of soy based products is therefore based mainly on nutrition and health. This has created a growing market for soy products in Ghana for household whole soybean products, use in Ghanaian stews and soups, use as staple foods, use in pastry products and use in local Ghanaian snack foods. There has been the introduction of least 8 soy milk, 10 cooking oil brands, soy beans, soy powder/paste, weanimix, natural soy drink, biscuits, yoghurt, and khebab/Tofu.
A survey of soy ingredient and by product likes and dislikes among Ghanaians by Research International (2006) found that among respondents soy milk was regarded as energy giving, filling and satisfying, presented in ready to consume formats, easy to use, suitably flavoured, preparation increases it in quantity, inexpensive or affordable. End products were found to be attractive once well prepared. Respondents also attributed prestige to the product. The use of soy in school nutrition and feeding programs has added to positive reception of soy products that can be capitalized on.
Marketing activities to coincide with each stage of the consumer buying process
The marketing of the product can take advantage of the current promotion efforts of the Ministry of Agriculture and the Ministry of Health and their sub agencies to get the population eating more soy. This has increased awareness and need for the product base that can be combined with presentation of the product as a viable meat substitute and meal enhancer.
To create need arousal in potential consumers attractive posters on ‘goodness of soy’ can be placed on buses, in trains, and on city banners at key places, near soy products and meat storage in stores and in clinics announcing the arrival of the product, its nutritional benefits for the entire family and its economical cost. The fact that open markets are also more popular in Ghana compared to indoor supermarkets, promotion stands at these markets will be useful.
Resulting information search and evaluation behaviour can be addressed through advertorial campaigns that link the Earth Chef brand with soy benefits would be published in popular news papers and magazines. Additionally, product and brand information will be communicated via financial support of and participation in national and local food and health related exhibitions; participation in women’s development meetings with provision of sampling for refreshment; health centre lectures with health centre nurses, television and radio advertising about attributes and availability of the product itself, store demonstration and tasting of product prepared with local spices.

COMPETITION
Strategic Group for Grace Earth Chef
The product, Grace Earth Chef is a pre packaged, easy to prepare vegetarian meal that is made from a high- fibre, high protein, meat substitute which is made from soy flour. (Grace Food’s website) Earth Chef consist of a variety of unflavoured and flavoured vegetarian meals such as Veggie Stew Beef, Veggie Curry Mutton, Veggie Mince and Veggie Beef patties. Grace Foods will enter the Accra market and will compete against food products that can act as a substitute for Earth Chef Veggies. The competitors of the product include pre-cooked and packaged food manufacturers and distributors (vegetarian or non vegetarian meals) and staples which are heavily consumed by Ghanaians such as yam, cassava and plantains, used in popular Ghanaian dishes.
Presently there are two known firms that distribute packaged vegetarian food in Ghana. These are Asasse Pa Natural Foods and Products and Vegefarm Corp. Asasse Pa Natural Foods and Products manufacture and distribute vegetarian food and beverages to Ghana and West Africa such as Tofu Soya Khebabs and Veggie Wheat Khebabs. A vegetarian company called Vegefarm Corp is the most direct competitor of the Earth Chef product as the product offerings share minute similarities in that they are both vegetarian pre packaged meals. The indirect competitor for Grace Foods is that of the many farms located in Accra which still have a high patronage from locals who purchase their staples and fruits in order to prepare popular African dishes such as ‘Fufu.’ Therefore the strategic group for Earth Chef’s Veggies is pre packaged, easy to prepare meals.

Main Direct Competition
The main competitor is Vegefarm Corp, a manufacturing company that offers vegetarian packaged food which entered the Ghanaian market in mid 2009. The company has formed a partnership with a distributing and marketing company in Ghana called Tridees Limited to distribute the vegetarian product. The products being offered by Vegefarm Corp Vege Chicken Nuggets, Vege Crispy Chicken Patties, Vege Vienna (cocktail) Sausages, Vege Anka (spicy) sausage, Vege hot dog, and Vege ham. Vegefarm Corp, is said to introduce a new range of Soya-based 100% vegetarian foods in the country. (Nonor, 2009)
Objective of Vegefarm Corp
To offer to consumers a safe, reliable and a wide variety of vegetarian foods.
Strengths of Vegefarm Corp * ISO 9001:2000 quality standards * HACCP & ISO 22000:2005 certified * A variety of vegetarian dishes acting as meat substitutes. Such as vegetarian Ham, sausages, chicken patties and nuggets. * Natural food made with no preservatives and no meat. The Product is made of non-genetically modified organisms. * Experience with exporting to other markets such. Exports to North America, Mid East, Eastern Asia and Western Europe (www.alibaba.com) * Risk is minimized for Vegefarm Corp as joint venture formed with local Ghana Company, Tridees, results in management skills and experience being shared and allows for easier adaptation in the foreign market. * Pioneer in the African market with packaged vegetarian food.

Weaknesses of VegeFarm Corp * Vegefarm Corp is not located in Ghana as such transportation costs may be high.

Indirect Competition
“The traditional way of preparing food in Ghana is still highly practiced to that of the purchasing of prepackaged food” (Kwakwa, 2010). In Accra, the open markets” are highly patronized by consumers. The buyer group is predominantly female who purchases for food items such as vegetables, fruits and starchy foods such as yam and cassava for her household. “Urban food markets and local food distribution systems play a crucial role in the development of African nations and their ability to sustain their growing population—this is especially the case in Ghana.” (Campbell et al, 2010)
Objectives of Indirect Competition (Open Market)
To provide consumers with fresh produce (vegetables and fruits) at competitive prices
Strengths of Open Market * A vast number of customers purchase from markets as traditional meals utilize starchy products and fruits sold by markets. * Markets are owned by Ghanaian nationals selling food produced in Ghana and this may appeal to ethnocentric locals. * Easy access for customers to markets for fresh produce. Accra has over forty seven markets in and around the city. “There are 47 markets in Accra, the majority of which operate during the day and a few operate at night” (Campbell et al, 2010)

Weaknesses of Open Market * Ghanaian markets have poor infrastructure. “Road and transport infrastructure for the movement of agricultural commodities and inputs are inadequate, which aggravate women’s time constraints and hinder their productive work” (Campbell et al, 2010) * Inadequate market space. “Ghana markets have space issues and traffic congestion. Not enough land has been designated for market space, which has forced many street vendors to sell their goods in old city-an area of Accra characterized with heavy traffic.(Campbell, 2010)

MARKET SEGMENTS
Market and Product Indicators
Country market level
Though close to 49% of Africans live in cities and Africa’s long term growth is expected to be influenced increased urbanization, the purchasing power of this growing urban class is still low (The Progress and Potential of African Economies, 2010). Ghana’s GDP per capita in 2008 was $500-1000, less than $5000- “the level at which they start to spend more than roughly half of their income on items other than food” (op cit).

Soy is consumed in Ghana primarily as soymilk or soybean edible oil brands. Five main brands currently serve the soymilk market. These include Sunrise Soya, Golden Soymilk, Vitamilk, Lactasoy and Good Hope Soymilk (“Market Study on Soy products in Ghana”, 2006). Soy consumption is based on nutrition and health, and total domestic demand for soybean products has been estimated at 30,000 metric tons, while Ghana produces about 12,000 tons each year [FCDP] (op cit).

Customer market level
Ghanaians are predominantly hold traditional views regarding meal preparation. Primary research has shown that women are expected and prefer to prepare meals for their families, and are unlikely to buy pre-prepared meals (Kwakwa, 2010).
Research International’s 2006 research showed that awareness of Soy as an ingredient and different products was higher among female consumers than males. It also revealed that females purchased household items more often than men. Soy was described as “highly nutritious, inexpensive and the best source of plant protein”. Though considered nutritional, there was a low awareness level of soy products and ingredients as soy protein isolate, textured soy protein (as is Grace Earth Chef), Soy protein concentrate and defatted Soy flour.

Segmenting Decisions
Considering the cost and cultural traditional implications relating to meat and food preparation in general, Grace Foods should target two segments in Ghana with its brand of Earth Chef Veggie Meals made from Soy Flour in order to ensure market penetration and growth, and cultural acceptance. The recommended segments are:

1) Mothers of lower and middle income families, who practice traditional methods of meal preparation, and who are traditionally the purchasers of food items for the household. 2) Young urban, educated professionals who have a cosmopolitan world view and are open to less traditional ways of meal preparation as a means to convenience, and who also have more disposable income.

With 50% of Ghana’s population being considered ‘urban’ (Countries of the World website), the profiled segments will be targeted in the urban areas of the capital Accra City with an estimated population of 1.6 million (Falling rain website).

Segment Profiles | TRADITIONAL MOTHERS | YOUNG PROFESSIONALS | Demographics | * Median age of 30 * Basic level education (perhaps ended formal schooling at age 9) * Husband earns between US $500-1000 per year | * Median age of 24 * More males than females posses tertiary level education * Earns at least US$5000 per annum | Values and Lifestyle | * Believes in taking care of family needs * Purchases food items daily * Cooks meals daily from scratch * Prefers to employ house help to prepare meals for husband/family rather than ask a female friend, in absences due to travel. * Prefers traditional brands and foods * Shops for food primarily in traditional open markets | * Pursues self fulfillment and enjoyment * Purchases food items weekly * Open to purchasing meals prepared outside of the home * Open to imported food brands and products * Less traditional with food preparation * Shops for food in traditional open markets and more modern supermarkets |

Positioning
Positioning Statement
The product will be positioned as the affordable, delicious soy meat substitute that’s perfect for family meals.
The tagline would be “Just as delicious as meat!”
Such market positioning addresses the fact that Ghanaians’ meat consumption levels are restricted by purchasing power. Additionally, Ghanaians’ awareness of soy as a meat substitute is low, though awareness of the health benefits of soy is high. A large percentage of Ghana’s population is deemed undernourished; a result of poverty levels and traditional food consumption practices (heavy starch diets with very little protein content).
Ghanaians therefore need a protein source that is affordable enough to allow for regular purchase (daily and weekly) and use and attractive enough to represent traditional meats such as mutton, beef and chicken used in traditional stews.
Grace Earth Chef Veggie Meals will be positioned as a complementary ingredient to popular Ghanaian foods such as stews, Fufu and Pepper Soup.

Rebranding
Grace Earth Chef, which implies natural and healthy food in the Jamaican/Caribbean market, may not translate well to Ghanaians who may interpret earth to literally mean dirt or ground. Based on the literal product naming pattern of soy products in the Ghanaian market (Sunrise Soy, LactaSoy and so on), it would appear that Grace Earth Chef may need to rebrand its product line to a name that more readily explains its contents and benefits to the Ghanaian consumer. Proposed rebranding options are: * Grace Soy Meat Helper * Grace Soy Meal Helper * Grace Tasty Soy Meat Helper * Grace Meat Helper…made from Soy

“Grace Soy Meat Helper” is the best option for the market as it directly speaks to the value of the product as a meat substitute.

Market Research and Test Market
Market research and package pre-testing should be conducted prior to making a final decision on the new name for the Ghanaian market. Additionally, Grace Foods should continue with its export trend of establishing a test market for the product to gauge consumer response to the product and better forecast sales and market growth. This test market should be executed for no less than one year to ascertain market responses to the product as well as assess the best pricing, packaging and distribution modes for the target market and segments.

MARKETING MIX
Product- Earth Chef Veggie Meal
Ghanaian market may be described as a market that is fairly open to new products and whose purchase decisions are strongly influenced by packaging and branding. Also as it relates to trends towards a healthy lifestyle in Ghana; “… most people have heart and blood pressure issues (hereditary) (Kwakwa, 2010).
Grace Soy Meat Helper is a healthy option made from Textured Vegetable Protein (TVP) and is conveniently packaged in a plastic lined tetra pack, net weight 3.54oz (110g). TVP is a meat substitute high in fibre and protein with 12 months shelf life. It is made from soy flour, contains no preservatives, low in fat and cholesterol and is a good source of calcium and iron. It is also a very versatile product, as such a variety of flavoured and un-flavoured are available and different sizes from large chunks to small flakes.
Much like Tofu Grace Soy Meat Helper is a versatile staple and the texture when cooked is similar to ground meat. TVP absorbs spices and flavourings as well as such it can be had with other dishes such as stew, sauces and vegetarian soups. It is currently available in the following flavours: * Veggie Curried Mutton * Veggie Mince Beef Flavoured * Veggie Mince Unflavoured * Veggie Stewed Beef * Earth Chef Veggie Burger Most Ghanaian dishes are either stews or soups, combined with heavy starches. They use palm oil, dried smoked fish and dried smoked shrimp to flavour many of their dishes. Most dishes have a tomato based stew. Unlike Jamaica curry is not a popular spice; but some people keep a little bit of curry powder and add a little bit to their tomato-based stews. The types of meat mostly consumed by Ghanaians are goat, beef, and bush meat (big Mongoose) and pork among non-muslims (Kwakwa, 2010).
The varieties of earth veggie chef meal that would be selected for the Ghanaian market would be similar to the Jamaican market with the exception of curry mutton, which would instead be replaced by stewed mutton. Also a tomato based stew and a fish flavoured veggie meal would be added to the varieties known, therefore a total of six variants would be introduced to the Ghanaian market namely: Soy Stewed mutton, Soy Mince Beef flavoured, Soy Mince Beef un-flavoured, Soy stewed beef, Soy Burger, Soy Stew Fish and Soy Meat Tomato Stew. Method of preparing Grace Soy Meat Helper can be found in Appendix 1

Packaging and Labeling
National and international codes of practice provide guidelines for the use of packaging materials by medium- and large-scale food manufacturers. These regulations do not create a barrier for Grace as they can be easily complied with and are hardly enforced. (Essuman 2010).
Under Ghana’s General Labeling Rule, all products imported or produced locally should bear the following, in English:
• Name of product;
• Net mass or weight or net volume of content;
• Composition of content of product;
• Date of manufacture of product;
• Date of expiry of product (or best before date);
• Batch or lot number of product;
• Name and address of manufacturer or agent;
• Directions for use, if relevant;
• Any special instructions for storage, handling; etc. and
• Any pertinent warnings.

Earth Chef Veggie meal, as mentioned comes in a convenient packaging net weight 3.54oz (110g) tetra pack which would meet safety and health regulations that as mentioned is currently a major concern in the community. The label will consist of simple, clear information (in English and the dominant dialect of Accra) which allows customers to choose their preferred flavour for themselves and their families. Also different flavours have an equally attractive and colourful packaging to appeal to consumers; veggie mutton (orange packaging), veggie mince beef flavoured (green packaging), veggie stewed beef (burgundy packaging), earth chef veggie burger (blue packaging), and veggie tomato stew (red packaging).
The back of the label will consist of the full nutritional information of the product and guideline daily amounts. Also recipes will be provided to highlight the versatility of the product and offer customers other ways in which the product can be prepared with other local dishes.

Services
The product being offered does not require post-sale service arrangements as in the case of more tangible products. In fact the support services required for food distribution and retail product is predicated on of customer relations. This covers the shipment from the point of order to delivery and an efficient claims department in the event of any damages observed after delivery. Examples of these include: * Website dedicated to product * Online ordering * Tracking of orders * Augmenting the product * Recipes * Market promotions * Package with complementary products * Batch quality inspection * CIF payment terms for shipments

TNA Ghana, the distributing firm, will be encouraged via incentives to deploy sales personnel to market the product to vendors in the open markets. This will facilitate easy access to the product by the target segments.

Pricing
In arriving at the pricing decision the group has taken the approach to analyze the impact of global food price changes on the Ghanaian domestic market and the role of government in its perpetuation or reduction. The company strongly believed this to be an important factor in the pricing decision of Grace owing to the growing perception that the global food crisis resulted in higher food prices in the continent of Africa. Transportation costs inclusive of ocean and inland costs were also important considerations along with the existing political situation and import requirements for the republic of Ghana.
Academic research, professional publications and primary data utilized led us to conclude that the economic environment of Ghana would support a price structure at the lower tier (price floor). It is our position that pricing would be greatly impacted by escalation owing to distributor costs, transportation costs and the import duties to be applied to the imports. The known import tariff of approximately 20 percent; import VAT of 12.5 percent as well as four additional levies ranging from 0.5 percent– 2.5 percent is evidence of the price escalation possibilities (see appendix Ghana tariff). As such in the short run while export from Jamaica is a viable option, a joint venture approach should be examined as long term strategy, as this may minimize the impact of escalation and may prove more profitable if Grace chooses to expand its African operation, although in that case the impact of cost push inflation owing to fuel and utility prices would then be of concern. In fact the US export department “access to the electrical grid and to consistent power remains a challenge for many businesses in the country”. Another selling point for investing indicates on its website in Ghana through joint venture or other strategic alliances is the government’s direction of promoting investment in the country through policy which is deemed liberal, relatively friendly and transparent, but more importantly allows for full repatriation of earnings in the currency of investment.
There are several schools of thought covering the impact of the global food crisis on demand and price of food in Ghana. Insight into price and demand elasticity of the Ghanaian is an import factor in determining how to price and position Grace Kennedy’s new product. Both papers conclude that,
“Ghana is largely self-sufficient in the major staples except for rice and wheat. Changes in the prices of these staples therefore may primarily be driven by domestic market forces, that is, by domestic supply and demand for these products. However, substitution in consumption between rice and local staples such as maize, cassava, and yam may cause domestic prices for non-tradable products to rise when the world prices for imported food products increase.” (Minot, Nicholas, 2010)
In other words the elasticity of demand for the traditional products is relatively inelastic and as such will allow for some price increases, while it is more elastic with respect to the nontraditional products.
Inflation in Ghana is a major concern in the pricing decision as supported by historical evidence (figure 1) identifying Ghana as being subjected volatile and often high inflation rates.
The IMF report further described Ghana as a small, open low-income economy that faces major difficulties in its inflation policy owing to aforementioned volatility and the economy’s vulnerability to supply shocks. Inflation is described as a serious macroeconomic problem in Ghana, for which the government has yet to find an effective solution under the economic recovery.
An important factor in doing busies in Ghana is the direction of the Economic recovery programme implemented by the IMF in 1983, while it has ensured that prices were liberalized in the economy it is a major reason for the inflationary situation.

Source [ 1 ] IMF Country Report No. 08/332

The Ghanaian government intervention in the foreign exchange market, fluctuations and continuous depreciation of the local currency has placed import products a competitive disadvantage requiring that prices remain low to compete with local products or products with preferential duty arrangements such as the EU and other African states. This further supports the direction of lower prices and developing brand loyalty. Whether to employ a penetrating pricing strategy is dependent upon the segment in question and the level of substitute products in the market, which at this time seems to be a relatively low threat.

Earth Chef Export Pricing Model | | Export (US) | Factory Price | | 1.414 | Domestic Transport | | 0.008 | | | 1.421 | Export Documention | | 0.022 | | | 1.443 | Ocean Freight and Insurance | | 0.074 | | | 1.517 | Import duty | | 0.303 | | | 1.821 | Import VAT | | 0.219 | | | 2.039 | Distributor Mark up | 15% | | 0.306 | | | | | 2.345 | Retail Markup | 40% | | 0.938 | | | $ 3.28 | | Consumer Price in Cedi | 1.4554 | | | $ 4.78 |

Promotion
The media industry in Ghana is considered to be highly independent and pluralistic. Media players include two (2) press houses that are state owned and publish approximately 50 newspapers daily apart from Sundays and some holidays, twenty three (23) television stations frequency modulation (FM) stations and a number of cable television companies. The government owned Ghana Broadcasting Corporation (GBC) has national coverage. Ghana TV is said to own majority in terms of market share and advertising as a result of its monopoly on national reach (Ghana Investment Promotion Centre, 2010). Radio and mobile telephony firms also dominate the advertising landscape, and would thus be utilized in mass media advertising.
Promotional tools that are currently utilized are trade shows, above and below the line advertising, radio via jingles and retailer incentives. However the most popular means is via radio (Kwaka 2010).
For a communications campaign for Earth Chef Veggie meal the following would be conducted: * Tastings/ Samplings- would be conducted in the first five months in open markets and supermarkets to introduce customers to the great taste of the product and encourage trial and eventual purchase. * Radio- would also be utilized during the first five months as it is the most popular medium in Ghana to sensitize consumers to the product, build awareness and to support sampling efforts in the trade keeping the product top of mind for consumers. * Retailer discounts- this would be offered in the first two months to ensure distribution and product availability. * Posters- as part of the initial communication campaign, would also serve to provide recipe information and assist in the visibility of the product for retail outlets and the open market on stalls. * Trade shows- would be conducted towards the end of the year for three months (October – December) in anticipation of the Christmas season. This would be used as an opportunity to highlight product use and versatility with other local dishes especially at a time when families will be preparing Christmas dinners. * Transport advertisements- would later be placed on buses and taxis within the country to create a buzz around the product and assist with brand recognition and recall as well as ensuring that the product is kept top of mind. * TV- ads would run primarily in the holiday seasons (Christmas and Easter) and would serve as support to other activities to aid in brand recognition and brand recall. * Print- ads would run in the holiday seasons (Christmas and Easter) for a total of six (6) months as well to serve as support to TV and as reinforcement and encourage trial of the product. * Sponsorship (Cooking shows)- similar to shows sponsored by Unilever Ghana; earth chef veggie meal six months after introduction would sponsor a cooking show which would ensure that the product is always top of mind as well as to illustrate to end users the versatility of the product and uses with other local dishes. * Competitions (cook offs)- this would be utilized for two months at a time during the festive seasons (November- December and March- April) where consumers are encouraged to find creative ways to incorporate the product with other local dishes of which the best is awarded a prize. * Banding/ Marrying two products- at the store level (supermarket), this would be utilized as a means of introducing the product for the first three (3) months in the traditional trade via marrying two products together. As such an agreement would be made to partner with one of the more popular companies, namely Unilever and their Royco cubes to season that could be utilized as a seasoning for the earth chef veggie meal.

Gantt chart over 1 year period starting August 2010 Promotional Tools | Aug | Sept | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | June | July | Tastings | | | | | | | | | | | | | Retailer discounts | | | | | | | | | | | | | Trade Shows | | | | | | | | | | | | | Transport advertisements | | | | | | | | | | | | | Posters | | | | | | | | | | | | | Radio | | | | | | | | | | | | | TV | | | | | | | | | | | | | Print | | | | | | | | | | | | | Sponsorship (Cooking shows) | | | | | | | | | | | | | Cook off competitions | | | | | | | | | | | | | Banding with Royco Cubes | | | | | | | | | | | | |
Bottom of Form
AVOIDING MYOPIA- RECOMMENDATIONS TO GRACE FOODS
Grace Foods has experienced financial successes over its years of operations as it expands its reach into various international markets strengthening its position as a global company. Continued success however can be stifled by myopia- shortsightedness built on complacency and a singular view to marketing products and services leading to growth reduction and eventual obsolescence.. It is therefore imperative that managers apply a wide view of their businesses that is dependent upon the needs of their consumers- the marketing approach to business.
Grace Foods’ international marketing strategy has been to identify and enter markets with similar food tastes to the Caribbean and its Diaspora. These markets have thus far included India and Ghana.
To ensure that its growth pattern is sustained, Grace Foods should endeavour to:
Avoid narrowly defining its business and industry
The standing mission of Grace Kennedy Limited continues to be, ' To satisfy the unmet needs of Caribbean people wherever we live in the world,' but wisely the Grace Foods tag has become Genuine Caribbean taste enjoyed worldwide. This provides for the current expansion of its product line and to new markets where the Caribbean taste is likely to be appreciated. The company has clearly shown grown from the distribution and manufacturing of simply tinned and bottled foods to pre-prepared convenience foods including Earth Chef. Now it is left for the company to decide if its business is solely concerned with packaged foods distributed through wholesale and retail channels or if it is also concerned with made to order meals via restaurants (dine in or fast food).
Its website states “Today, while we are still largely a Caribbean food company, we have expanded into Canada, the United States and the UK, so our people never have to miss the taste of the Caribbean” indicating that the company and its managers see themselves as being preoccupied with manufacturing and distributing traditional Caribbean food To avoid myopia the company should consider widening its business to include meeting the made to order meals needs of consumers outside of the Caribbean tradition. After all, cultures and tastes evolve and so must Grace products.
Produce based on consumer needs, not on improving the product or production efficiency

Grace should however refrain from increasing production or product efficiency because of its effective distribution channels. As continued growth is a matter of consumer informed continued product innovation and improvement products should be developed at rates dependent on the needs and demand of consumers. By treating customers as first class citizens in relation to production efficiency, Grace would then use research information to create products that will be pulled along the distribution channels by consumer demand.

Be the first to make their products obsolete via identifying opportunities and creating customer satisfying new products.
Following on the point above, Theodore Levitt claims that each company’s survival requires them to “…plot the obsolescence of what now produces their livelihood”, (2004, p.140). This means that the long term growth of a company is dependent on constant upgrades to its products, initiated by themselves and not by competitors. In applying this to their business Grace would first need to find new uses for or make improvements to its current products so that continuous demand would be facilitated. If new uses or improvements are found to be impractical, Grace should then move towards creating new products that would more effectively meet the changing and dynamic needs of its target consumers. By being evolutionary, Grace would be able to lessen the impact of existing and new competitors and extend its growth cycle in the food industry.

EVALUATION OF MARKETING EFFORT

The following measures are recommended as ways to evaluate the success of the marketing effort.

Profitability Control * Contribution margin- which determines whether or not the variable cost can be reduced. The environment which is being entered is highly inflationary and subject to exchange rate fluctuation and the company may need to reduce costs to maintain competitiveness.

Productivity Control * Output efficiency- measuring the amount of sales generated per dollar of input, as well as the amount of units sold by distributors.

Strategic Control * Market penetration target levels- quarterly reports to assess whether targets are being met. * Customer awareness- measuring the awareness of the product and competing products by segment.

References:
Campbell C. et al (2010). Analyzing Market Reforms and Food Distribution Systems in Accra, Ghana: Lessons and Implications for Reforming the Bazurto Market of Cartagena, Colombia. Retrieved: from http://colabradio.mit.edu/~alexam/colabradio/wp- content/uploads/2010/02/CasodeEstudio_Ghana.pdf

Central Intelligence Agency. (2010). Ghana Country Profile. Retrieved on July 1, 2010 from https://www.cia.gov/library/publications/the-world-factbook/geos/gh.html
Control Risk. (2007). Political and security risk in emerging markets threatens business stability. Retrieved from http://www.control-risks.com/default.aspx?page=1185
Dewotor, E. K. (n.d.). Databank Research. Retrieved July 1, 2010, from http://www.databankgroup.com

Diao, X., Breisinger, C., & Cudjoe, G. (2008). Local Impacts of a Global Crisis, Food Price Transmission and Poverty Impacts in Ghana. IFRPRE Discussion Paper.Ghana Investment Promotion Centre. (2002).Ghana Investment Profile: Food Production and Processing.

Ghana Districts. (2010) Retrieved from http://www.ghanadistricts.com/districts1on1/ama/index.php?arrow=atd&_=3&sa=3004 on June 30, 2010

Kwakwa, Ruth. (2010). Personal Interview. Conducted via email July 5, 2010

Levitt, Theodore. (2004). “Marketing Myopia”. Harvard Business Review
Local packaging of foods in Ghana. Retrieved from http://www.unu.edu/unupress/food/8f121e/8F121E0a.htm on July 1, 2010
Ministry of Local Governmentt/AMA. (1994). Managing the Sustainable Growth and Development of Accra
Minot, Nicholas;Senior Research fellow IFPRI. (2010). Transmission of world food prices changes to African Markets and its effect on household welfare. Comesa-MSU-IFPRI African Agricultural Markets Project. Mozambique: IFPRI.
Nonor, D. (2009) New range of Vegetarian foods hits the market. Retrieved on June 29, 2010 from: http://www.modernghana.com/news/233423/1/new-range-of-vegetarian-foods-hits-market.html
Peng, Mike. Global Strategic Management, 2009.
Product Information. Retrieved on July 6, 2010 from http://www.gracefoods.com/site/products-grace-earth-chef
Plahar, W. A. (2006). Overview of Soybean Industry in Ghana. Presented at Workshop on Soybean Protein for Human Nutrition and Health. Accra, Ghana

Products by the Food Industry in Ghana. The World Initiative for Soy in Human Health. Retrieved on....
Research International. (2006). Project Sweet Pea: Market Study on the Use of Soy. Retrieved on....

The Progress and Potential of African Economies pdf. (2010). Retrieved on July 2, 2010 from http://www.mckinsey.com/mgi/publications/progress_and_potential_of_african_economies/index.asp

UNICEF. (2010). Ghana: Integrated Nutrition Action against Malnutrition. Retrieved on July 1, 2010 from http://www.unicef.org/evaluation/index_48637.html
World Food Program. (2010). Retrieved from http://www.wfp.org/countries/Ghana on July 2, 2010