Consumption levels, even of staple products, is not static in Tanzania. For FMCG manufacturers and other firms trying to sell products to the mass market, this can present massive challenges in adjusting operations to account for demand fluctuations.
Manufacturers need to clearly understand the timing of the demand changes, so that they can look at appropriately adjusting raw material purchases and stocking, manufacturing schedules, and sales and marketing plans. There can be numerous complicating factors, such as a limited window of raw material availability, or product perishability. That said, adjusting your business to the market can have a significant influence on the bottom line.
With limited, albeit growing expendable incomes, the Tanzanian consumer presents an interesting challenge that requires a well thought out plan from pricing, to marketing, to last mile distribution.
In our management consulting work, we are often trying to capture market nuances, and then work with our clients to translate these nuances into actionable and detailed operational plans.
