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Expansion Insights From One Of SA’s Power Partnerships



Mike Templeton, key account manager for the Vida-Shell relationship, imparts some useful insights from their journey for entrepreneurs rolling out their own expansion plans.

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There’s no secret South Africans love their coffee – with new stores popping up on a weekly basis across the country, both through independent and retail chains.

Two of the country’s biggest players in their respective industries are leading the pack in the explosion of coffee in SA, with Vida e Caffé and Shell announcing the opening of their 100th store in South Africa, in Dorp Street, Stellenbosch.

The Vida-Shell relationship started off in 2013, and after just two years the partnership has hit a significant marker, coming together to offer South African motorists a moment of sanity amidst the malaise of their daily commute.

Related: (Slideshow) Believe It or Not, Starbucks is Not Just About the Coffee

Vida introduced a new brand within its stable, known as Torrador, specifically to work within the majority of Shell sites, together with Vida stores in selected large Shell forecourt environments.

With over 100 Vida e Caffé, and Torrador by Vida e Caffé, coffee bars at Shell service stations across the country, the pairing have seen a very positive consumer response with robust growth in coffee, food, convenience retail as well as fuel sales. Motorists are now becoming accustomed to getting their coffee fix at Shell whether in the Cape, Gauteng, KZN or at a Shell Ultra City somewhere in between.

After a great deal of research into convenience trends in the South African market, Shell identified the rapid emergence of the coffee culture in South Africa as a significant opportunity and key lever of its convenience retail strategy.

South Africa had been identified as a key growth market for the business and building on Shell’s 113-year heritage in the market, Shell invested in upgrading its store formats and non-fuels offers over the past few years.

Related: Wiesenhof Coffees: The Cream On Top

After considering all potential partners both locally and globally, the Vida brand stood head and shoulders above competition given the critical role the brand has played in creating and establishing the coffee experience in South Africa.

To meet the varied trading environments within which Shell operates, the Torrador sub-brand was then established, ensuring that the Vida experience is readily available across the Shell network.

Mike Templeton imparts some useful insights from Vida’s expansion:

Customers-drinking-coffee

1. Meeting customer expectation

Identify the demand and plan the full solution accordingly. While any expansion plan may be all mapped out on paper, be sure to keep top of mind what it is the customer likes about your offering and what they’re expecting, and then give it to them. If you veer too far from that, your plans may not net the required result.

2. Build management teams

Select wisely and develop the people that will be rolling out and leading the realisation of your vision. All too often, those that are expected to perform are not in place. Identify and employ the right individuals and how to get there. Share the vision and the journey with them, train them, and ensure they have absorbed the entire concept and how to make it a reality.

3. Training and routine

It’s imperative that there has been ample investment in human resources to ensure the stores are operational and excellent at all times. Businesses are built on skilled and motivated people. Be sure to take it slow, pilot and test, fail, assess and re-design, then improve and roll-out.

4. Maintain day to day involvement

Keep a close and watchful eye on the brand, ensure compliance with standards and operational guidelines, as this will give you the best opportunity to stay true to brand delivery.

5. Keep it fresh

It’s all too easy to get a bit stale and complacent once you have launched. But as time progresses, it’s critical to stay motivated, seeing what the customer sees, and making the necessary amendments to exceed customer expectation. Continuous improvement and innovation is a key principle in good business.

6. Partner up

Leverage your partnerships, identify the strengths in each other’s skills and brands. Use one brand or offer to drive feet for the other which will increase your total basket.

7. Consistency long-term

Launching and building a business is the easy part – running the operation and keeping the quality and energy up is the challenge. Stay the course.

Vida e Caffé has had an impressive 12 months. Alongside the 100 Shell stores, they continued their development of new stores that opened in corporate and mall environments throughout Africa.

Related: 5 Minutes with Vida e Caffé Founder Grant Dutton

Explains Vida e Caffé CEO Darren Levy, “We spent the last year focusing equally on coffee, the in-store experience, and our food and beverage product innovation. October 2015 was our new food launch and this contributed significantly to some fantastic growth in the past few months. As an organisation we have placed a high level of importance to the sourcing and roasting of quality components that make up our coffee blend. To this end, we have been actively engaging importers, roasting experts and industry experts as we continue to evaluate the taste profile in line with international and local trends. Much of the success of a perfect in-cup experience is attributable to the methodology followed to make the flat white or meia in store. The coffee market is growing exponentially in SA and we have to do what is necessary to remain on top in a very competitive space. I think we’re well positioned to do that.”

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Entrepreneur Today

The Sky Is The Limit For South Africa’s Top Women Achievers

High-powered women achievers from across the private and public sectors, academia and diplomatic spheres gathered for a charged two-day conference in Johannesburg this week to share experiences about empowerment, achievement and the role that women are destined to play in a competitive global environment.

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Several hundred women attended the 15th Annual Standard Bank Top Women Conference which, with the Top Women Awards, has become one of the premier events for women on the national calendar. The objective of the gathering at the Maslow Hotel on the 17th and 18th of October, was to showcase the achievements of South African women and reignite their passion as they have major roles to play in all arenas of endeavour, says Ethel Nyembe, head of Card Issuing at Standard Bank.

“The delegates to the Top Women Conference were inspired by speakers such as Yvonne Chaka Chaka, singer, songwriter and an entrepreneur in her own right; Phuti Mahanyele, executive chair of Sigma Capital, a black-owned investment group, and political and academic stalwart Geraldine Fraser-Moleketi, now Chancellor of Nelson Mandela University and other women who are playing leading roles in many of the nation’s listed blue-chip corporations.”

“The overall message is that women are playing a central role in growing all facets of our economy and are helping to build a future from which other women can benefit and, in turn, inspire others. Women, regardless of whether they are entertainment icons, professionals engaged in helping shape the minds of future generations, businesswomen or scientists are part of building a new global reality.”

Related: 13 Female Entrepreneurs Rising To The Top In SA

To inspire delegates about the breadth and depth of the future for women, the conference examined all facets of economic life from the impact that IT and scientific research is having on building businesses, through to the development of entrepreneurs and leadership skills. Insights were offered through the contributions of speakers and roundtable panel discussions in which leading women offered observations and advice gathered from their vast experience.

“Standard Bank is proud of the role it has played in enabling women achievers to reach their full potential within its ranks. The bank also recognises that women across society have a broad role to play in the future of South Africa. It is through support for events like the Top Women Awards and the Top Women Conference that this approach is made visible and tangible.”

“We expect this year’s conference deliberations to deliver insights and inspiration that will not only spur established women to new heights of achievement, but also stimulate young women starting new careers,” says Ms Nyembe.

More information on the Top Women Conference can be found at https://topwomen.co.za/ and it can be followed on the #SBTWConference conversation on Facebook and Twitter  

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Entrepreneur Today

The Ins And Outs Of A Good Exit Strategy

The thought of parting with a business you’ve grown from the ground up may be unsettling, but Gugu Mjadu, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, says that it is better for both your business and yourself to plan for this as early as possible.

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“The challenge that business owners often face in this respect is comparable to the difficulty that many new parents have with imagining their children grown up and leaving for university. Imagine, however, if parents did not plan ahead for the cost of their education – that would be detrimental to the future of their children. The same could be the case for your business.”

Mjadu says that a good exit strategy is about sustainability and being able to measure your business performance against the goals you have set for it. “It’s really about being able to say, ‘this is when the work is done and I can exit the business or take on a different role – this is what success looks like in terms of monetary return on investment and other business growth indicators’.

“The lack of an exit strategy could be telling of a fundamental lack of measurable business goals and this needs to be addressed,” she says.

From immediate liquidation to liquidation over time; family succession; selling to staff or external investors; the open market or another business; or the gruelling but profitable exercise of taking your company public – there are many different ways in which an entrepreneur can exit their business, but Mjadu says that whatever the process, a strong and solid strategy is essential.

She shares five key points of a good exit strategy:

1. It tells you when you are done

Mjadu says that a good exit strategy should reflect a core understanding of all the intricacies of your business and should be able to tell you when the lifecycle of your business (or of your involvement in the business) should come to an end. This is usually done by including a set of tangible measurables or objectives so that it is easy to ascertain when these have been achieved.

Related: When Do You Know It’s Time To Sell Your Business

2. It sets out the right environment within which to exit

A good exit strategy considers the economic, social and political environment at the time of your exit. Mjadu says that this is important in order to plan for a secure financial future.

“Failure to think about this could result in short-changing yourself by exiting during a tough economic climate when the risk to buyers reduces the value of your business.”

She references the case of Victoria’s Secret when founder, Roy Raymond, sold the failing business for $1m unknowing that it would later grow into the multi-billion dollar empire it is now. “While Raymond’s exit was ultimately necessary for Victoria’s Secret’s growth, he sold it in 1982 during the global recession of the early eighties – one of the world’s biggest financial crises and this influenced the selling price at his exit”.

3. It compensates those who have contributed to the life of your business

It is important to consider the impact your exit could have on investors and staff, says Mjadu. “Closing shop for example, means that your staff no longer have employment at your business. Selling could mean the same.” She adds that it is important to consider ways in which your exit could also benefit these stakeholders – for example, selling to a bigger business could mean more career opportunities for your staff, as well as continued job security.

4. It compensates you

Mjadu says that entrepreneurs often struggle to recognise their own true worth, especially when this involves attaching a monetary value to what has been achieved. “The time of exiting a business is no place to short-change yourself. You need to get out the full worth of what you put in,” she says, explaining that this means ensuring that you are financially secure before and while you go into your next venture.

“Your needs for retirement and medical insurance, as well as the maintenance of your living standard, should be met at your exit.”

Related: Want to Exit the Company? Here’s Your Shareholder Exit Strategy

5. It sustains your entrepreneurial drive

Mjadu says that while you may be nearing the end of one journey, your exit should enable and encourage you to continue to be an entrepreneur – and to look forward to the next journey. “Your entrepreneurial skills and capacity do not end when you exit your business and whatever your strategy, it should egg you on to more entrepreneurial activity including becoming a mentor to aspiring entrepreneurs.”

Mjadu says that exiting your business should allow you a good retrospective look at what you have done over the years – and so planning the strategy early on in your business lifecycle will set you up in regards to what you hope to achieve. “Upon exit, you should be able to say that you have done what you set out to do, financially and socially, and you have some energy left to do more elsewhere.”

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Search Is On For SA’S Online Retailer Of The Year

World Wide Worx in partnership with Platinum Seed, Visa, Heavy Chef and the Ecommerce Forum of Africa, launch new awards to recognise online stores that promote shopper trust.

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World Wide Worx today announced that it was launching a new awards programme — called the Online Retailer of the Year — to honour online stores in South Africa that grow trust amongst digital shoppers. The awards are part of a broader project to boost online shopping by World Wide Worx in partnership with Visa, Platinum Seed, the Ecommerce Forum of Africa and Heavy Chef.

“Online retail in South Africa has consistently grown above 20% since the turn of the century but only passed 1% of overall retail in 2016. Research shows that trust is a big factor in ecommerce growth, which is why we want to recognise online retailers who help to grow the entire sector by ensuring the kind of ecommerce standards that engender trust with online shoppers,” Goldstuck says.

“But once online retail passes two per cent it crosses an essential psychological barrier and this often leads to a tipping point in emerging economies. That’s when we see online retail snowballing. It gathers real momentum and everyone in the sector benefits,” Goldstuck explains.

To be eligible for entry to the Online Retailer of the Year, owners of digital stores are urged to participate in an essential survey of local online shopping being run by Goldstuck’s World Wide Worx, together with Visa and digital growth agency Platinum Seed.

To participate in the research, local online retailers can go to www.surveymonkey.com/r/OnlineRetailSA

All online retailers who participate will be entered into the award. However, participation in the survey is not a precondition for entry to the awards. However, only online retailers who operate from within South Africa’s borders are eligible for this local award.

The awards will be made at a Heavy Chef event in Cape Town on Thursday, October 01 2018. At the same event, World Wide Worx’s Arthur Goldstuck will lay bare the state of local retail, with Brad Elliott, CEO of Platinum Seed, and Visa.

Related: Up To R1 Million In Funding For Tech Solutions To Early Childhood Challenges

Goldstuck, who is judging the awards, will present the following awards:

  • Online Retailer of The Year
  • 1st runner-up – Online Retailer of the Year
  • 2nd runner-up – Online Retailer of the Year
  • Best New SA Online Retailer of the Year.

The winners of the Online Retailer of the Year awards will be given a digital badge that the online store can display online. The winners will have bragging rights for a year — until the next award is made in 2019.

Judging criteria for the awards include trust, innovation, customer service, digital excellence, customer engagement, product excellence, and the online reputation of the digital store. Visa, Heavy Chef, and Platinum Seed will oversee the judging of the awards. The Ecommerce Forum of Africa will audit the results.

Retailers or entrepreneurs who want to attend the awards and presentation of the research results by Goldstuck can purchase tickets from Heavy Chef.

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