The Benefits of Angola for Importing The Čokolino Product from Croatia

Podravka is a Croatian company that was founded in 1947, and is exporting in more than 40 countries worldwide. Podravka operates in three main business segments beverages pharmaceuticals and food. Some products they export are Vegeta- seasoning, Fant- soup mixture, Lino Lada- spread, Kviki- snacks, etc. The product that is significant to us is Čokolino, which is a meal intended for kids. It is loved because of chocolate flakes that combined with milk create a balanced meal. It contains important vitamins for children’s growth and comes in a variety of flavors. The great thing about Čokolino is that it requests only one ingredient to prepare and that is milk. The product is a great candidate to export to Angola because Angolan cuisine is based on milk and porridge. Podravka is already exporting to East, West and North Africa. It is familiar to their culture, market, people; and that makes it even more prepared to export to Angola. To successfully carry out this expansion to Angola, Podravka is going to use an intermediary to deliver the product to final users.

Country profile

Angola is an African country with capital Luanda and middle-income country. It is one of the fastest growing countries in South Africa and the third largest economy in Sub-Saharan Africa and it ranks as third largest export market in United States. Angola is an oil producing country and a member of OPEC, in 2015 crude oil production was 1.8 million barrels of oil per day. Because of that market fluctuates if the oil price is compromised and federal budget cuts are made as well as currency devaluation and high inflation levels which slow import levels and economic growth. Inflation is increasing continuously; in 2015 it had 10.3% in contrast with 2017 when it increased to 38.3%. Since João Lourenço has replaced the last president who was leading the country for 38 years new time for adjustments came. Many new reforms are needed to make Angolian economy on a sustainable growth. An example of such reform is economic stabilization program that was approved in late 2017.

Angola is a very good candidate for importing Čokolino since it has high natality. Fertility rate is 6 children per woman and Čokolino is convenient to prepare while it takes couple minutes. Due to such a high natality rate and population it is hard for big families to provide for all family members. Breakfast for little ones is also an advantage because it is not expensive and it is healthy for children while it gives all vitamins needs with consumption of one product. Product Čokolino is on the market for generations. Its soft wheat flakes with chocolate, contain 7 vitamins, and mixed with 2dl of milk make an easy, yet very nutritive meal. It is mostly intended for children but it is still a pleasure for some adults. You can find it in six different packages, from 200 g to 1.8 kg. In addition, there are variety of Čokolino flavors (chocolate, hazelnut, vanilla etc.) everyone can chose the flavor they prefer the most.Price Čokolino holds the market price throughout Croatia and it varies from 11.99 kn for 200 g to 84,99 for 1,80 kg. The price may slightly differ depending on the store, store’s size or its convenience. While exporting in Angola besides the cost of the product itself we must consider shipping price, taxes and transferring the goods.

Angola is known for its high food prices because groceries are organically breed and many people cannot afford that food on daily basis. Furthermore given the average salary per year and capita per income of $ 6 220 in Angola prices of Čokolino would be adapted and still affordable for their middle class. Promotion Čokolino brand is known for its famous mascot the teddy bear Lino which makes the product more intriguing for the children, while its nutritious formula makes moms comfortable making the meal for their developing children. Their advertising is based on promoting family as a community enjoying breakfast. Besides that Čokolino often offers many giveaway programs for loyal consumers (ex. calendars, toys, T-shirts, tablets, trips…). Čokolino also uses traditional advertising, commercials with catchy kids songs in which they address Čokolino as a healthy product for children’s growth. Place Čokolino is sold in every Croatian store, which sells fast moving consumer goods, markets, supermarkets, grocery stores. You can also find Čokolino on Amazon and e-bay which makes it easier for moms with toddlers to purchase the product while it is time consuming and efficient.

PESTLE analysis

Political Angola is a Republic country, on 11. November 1975 it declared its independence from Portugal. In Angola in every 5 years citizens vote for president, currently João Lourenço is leading the country. Following the year 1992, the Angolan government formed ANIP (The Government of Angola’s National Agency for Private Investment). ANIP helps implement policies that stabilize the economy.Tax system is designed to encourage foreign investments and build manufacturing plants. The city is divided in 3 zones to start a business; in 1 zone companies can get tax redemption for 15 years and in 2 or 3 zone 12 year and 15 year tax redemption.

Economical

Angola’s, one of the fastest growing countries, GDP has been rapidly increased. The best example is the 2008 revenue of $28.62 billion and spending $21.88 billion to grow the economy. Moreover, it has natural resources oil and gas. All this has enabled the per capita income of $6 220. The currency is Kwanza (Kz) and the exchange rate for 1 Croatian Kuna is 45.92 Angolan Kwanza. Which is a lot contrast to December of 2017 where 1 Kuna could buy 25.51 Kwanzas. In January, the governor of the central bank announced that Kwanza is allowed to float within a range, in foreign exchange auctions. Early on in the auction sessions, Kwanza depreciated against the dollar and it did not depreciate further.For the diversification of the economy the government encourages FDI. Foreign investors have the same right of access to incentives as local investors. FDI in Angola increased by $8559 million in 2017.The annual inflation rate in Angola decreased to 18.56%. Exports increased to $8119.72 million and averaged $18243.49 million from 2002 until 2017. On the other hand, imports decreased to $3157.43 million in 2017 with average of $7021.44 million.

Social factors

Angola has big population for its size, 28.81 million citizens and growth rate of 3.4%, the birth rate 44.2 births/1,000 population and death rate of 8.5/1000 population. Angola is a nation of young people which is proved by 48.12% of citizens between ages of 0-14, Furthermore, 18.25% are 15-24 year olds and that makes 66.37% of whole population. Literacy rate is 67.4% of the population over 15 years of age, males are more educated than women, and 3.47% from GDP is spend on education.

Technological

Technological improvements require constant investments in education. Those investments helped in expansion of mobile broadband coverage. It is constant work and recently in Angola have been creation of start ups in e-commerce and local web and mobile apps. Benone Marcos is important because he is the leader of design, engineering and from the start development of LNGs network and telecommunications infrastructure. Legal Angola’s legal rules are based on Portugal Civil law system and adopted customary law to suit better for political pluralism and mostly increased use of free markets. Angola has one of the cheapest labor forces in the world and it ranks 53 on the world labor force list. Due to that situation there is a Labour law Article 1/99D, which protects workers to have 7-hour workdays or 40-hour weekdays with a 30 min break in each workday.

Environmental

Angola is located on western Atlantic coast of southern Africa between Namibia and Republic of the Congo. It has sub-tropical climate everywhere, with a cool and dry season and also hot and rainy season. Environmental problems in Angola have been caused by a 30-year war. Land abuse, deforestation, desertification, not clan water are some of the problems. The agriculture suffers from desertification and soil erosion that influences the pollution of water.