Marketing Strategy - An Innovative SMME

Developing a Marketing Strategy for an Innovative SMME

Case Study - How YANDA's Developed INNOVATIVE Solutions For Ramtsilo Plastic Bricks - An Innovative SMME

Introduction

The construction materials manufacturing industry in South Africa is a vital sector contributing significantly to the country’s economy. Traditionally dominated by conventional materials like cement, steel, and bricks, the industry has recently been witnessing a shift towards sustainable and environmentally friendly alternatives. This shift is driven by growing environmental concerns, regulatory pressures, and the increasing demand for green building practices.

Environmentally friendly construction materials, such as recycled plastic bricks, offer numerous benefits including reducing landfill waste, lowering carbon emissions, and enhancing energy efficiency. South Africa, facing both environmental challenges and housing shortages, stands to gain substantially from these innovative materials. The government and private sector are increasingly supporting green building initiatives, creating a conducive environment for businesses like Ramtsilo Plastic Bricks.

Background on Ramtsilo Plastic Bricks

Ramtsilo Plastic Bricks is an inventive Small, Medium, and Micro Enterprise (SMME) that has a patented innovation for the manufacturing of bricks using recycled plastic waste in South Africa. This approach not only addresses the problem of plastic pollution but also provides a durable and cost-effective building material. Ramtsilo’s bricks known for their environmental benefits and garner attention for their potential to revolutionize the construction industry in South Africa.

The Role of Yanda Growth Consulting

YANDA Growth Consulting is a Growth firm specializing in developing unique marketing strategies for SMMEs with holistic consideration of business operations and challenges. YANDA partnered with Sasol Siyakha Fund, Supplier development initiative to execute this marketing intervention. Recognising the potential and innovative approach of Ramtsilo Plastic Bricks, Yanda Growth Consulting undertook the task of crafting a comprehensive marketing strategy to enhance the company’s brand equity and awareness, drive sales, and position it as a leader in the eco-friendly construction materials sector.

Marketing Strategy Development

Market Analysis

Our approach at YANDA Consulting began with an in-depth market analysis to understand the current landscape, competition, and potential customer segments. The key findings included:

Growing Demand for Green Materials: An increasing number of construction companies and developers are seeking sustainable building materials to meet regulatory requirements and consumer preferences.
Government Support: Policies and incentives for green building practices are being strengthened, offering opportunities for businesses like Ramtsilo.
Competitive Landscape: While there are competitors in the eco-friendly bricks market, Ramtsilo’s unique selling proposition and patented innovation of using recycled plastic provides them a significant advantage.

Target Audience Identification

The next step involved identifying the target audience segments most likely to benefit from Ramtsilo’s products. These included:

Construction Companies and Developers: Particularly those involved in green building projects as well as those unfamiliar. The key would be education as well as showcasing the benefits of going green, not just from a pricing, longevity and quality building perspective – what YANDA Consulting also identified was that showing businesses how they can use sustainable business practices to enhance their own brand equity, went a long way too.
Government and Municipal Projects: For infrastructure development and public housing initiatives. We also interviewed key leaders who informed us of the types of stakeholders and decision makers that could affect Tender scopes and details that could include construction materials that are green, like Ramtsilo’s products. These were people such as infrastructure managers who were involved in developing tender briefs and scope outlines. By including ‘Green’ products, contractors who were awarded relevant tenders could include Ramtsilo bricks as potential products to be used in public projects.
Environmental NGOs and Community Projects: Organizations focused on sustainable development and waste reduction. Projects like Domestos’ Toilet initiative and Cotton On Foundations school building projects were some of the initial opportunities identified by YANDA Consulting.

Marketing Objectives

Yanda Growth Consulting outlined clear marketing objectives:

Increase Brand Awareness: Position Ramtsilo Plastic Bricks as a leading provider of eco-friendly construction materials. Enhance their brand image, and as with most SMME’s help them develop a clear corporate identity.
Drive Sales Growth: Achieve a significant increase in sales within the first year. During this intervention Ramtsilo achieved a key milestone by partnering with another retailer, Build It, After only having been at Builders Warehouse initially. The key was to drive an increase of in-store purchase of Ramtsilo Plastic Bricks.
Expand Market Reach: Increase penetration and usage amongst existing clients / retailers as well as Penetrate new markets within South Africa.

Marketing Tactics

To achieve these objectives, Yanda Growth Consulting proposed a multifaceted innovative marketing strategy:

Brand Design Updates: Although the entrepreneurs were not comfortable with a brand change, our objective t YANDA became making the brand ‘Green’ and communicating their value proposition without altering the original design, so we opted to add to it instead.

1. Brand Awareness Campaigns: Leveraging in-store collateral, online catalogue/ store resources, social media, SEO, and content marketing to reach and educate potential customers about the benefits of Ramtsilo plastic bricks.

1. In-Store Marketing: YANDA developed creative methods to educate and generate awareness with customers in-store. From literal GREEN bricks vs, grey brick campaigns, to video ads accessed in-store through unique QR codes that educated and promoted the products, YANDA took an innovative and creative approach to all facets of this innovative SMME’s strategy development.

1. Partnerships and Collaborations: Identifying target audience alliances for Ramtsilo to partner with and marking the journey they would have to adhere to reach each group with the initial opportunities already identified for them. From construction companies, government bodies, developers and non-profit organizations to enhance credibility and market reach.

Pictured: Partnered with DBSA & Breadline Africa to donate bricks towards the development of a school classroom

1. Trade Shows and Exhibitions: Participating in industry events to showcase the product and network with key stakeholders. YANDA identified the best types of industry events to take advantage of and the marketing collateral and updates required during the implementation process.

1. Community Building: Conducting online ‘chats’ though IG Lives/ what at the time was known as Twitter Spaces to educate consumers on green products, debunk myths and address potential questions through interviews and informal-like conversation. YANDA also identified nano-influencers & micro-influencers in the DIY space that could help demonstrate the product’s application and benefits to potential customers in the construction industry and for end users. This approach lends itself well to a small business, this is a key example of how YANDA Consulting crafts tailored strategies, not just unique to each SMME, but strategies that consider SMME capacity and capabilities at that time.

Implementation and Monitoring

Yanda Growth Consulting emphasized the importance of monitoring and adjusting the strategy as needed. Key performance indicators (KPIs) were established to track progress, including website traffic, social media engagement, lead generation, and sales figures.

Nearly 2 years after their intervention YANDA Consulting continues to support and monitor Ramtsilo and all SMME’s within our database. Ramtsilo have been one of the SMME’s to benefit from the recent YANDA X Signa partnership, helping capacitate Ramtsilo with a graduate for 12months stipended.

Results and Impact

The implementation of the marketing strategy by the Ramstilo team with support from Sasol yielded impressive results for Ramtsilo Plastic Bricks. The company experienced a significant increase in brand recognition and market penetration. The small business partnered with more retailers and grew distribution with exiting retailers that saw an overall 234% growth in the number of stores where Ramtsilo products are now available.

They conducted their first activation at Builders Warehouse, which improved brand equity and more importantly allowed them to learn more about their target audience and knowledge they needed to Sales growth exceeded expectations, and Ramtsilo successfully expanded its reach to new regions within South Africa. Additionally, the company’s innovative approach garnered positive media coverage, enhancing its reputation as a pioneer in eco-friendly construction materials.

The innovative SMME has nearly DOUBLED their revenue since implementation of their intervention with YANDA Consulting. This growth has enabled them to create and sustain 16 jobs wherein they not only employed previously disadvantaged individuals, but also upskilled them and continue to support their communities and grow as business women themselves.

Conclusion

The collaboration between Ramtsilo Plastic Bricks and Yanda Growth Consulting demonstrates the critical role of a well-crafted marketing strategy in driving the success of innovative SMMEs. By understanding the market landscape, identifying target audiences, and employing diverse and creative marketing tactics, Yanda Growth Consulting effectively positioned Ramtsilo as a growing player in the environmentally friendly construction materials industry in South Africa. This case study underscores the importance of strategic marketing in matching innovative ideas with innovative strategies to transform small business development in a REAL way.

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