top of page
CHANGING CONSUMER HABITS
How 'Simtank' Became the Word for Water Tank
In a nutshell
East Africa is a region steeped in tradition, with traditional values and consumption patterns – different to those in other markets - deeply entrenched into the fabric of society, yet subject to change with the times and through innovation. Sumaria has extensive experience in working with and indeed helping shape the existing and changing consumption patterns in our region, as the following mini-case studies demonstrate
Water tanks
As a vital product for these growing economies, where clean municipal water is unheard of and water shortages are commonplace, water tanks are ubiquitous and need to be perceived as strong, safe and reliable. In the 1980s and early 1990s, the East African market for water tanks was almost exclusively dominated by steel products, as the material gives an impression of robustness and longevity. Seeing the trends in other developing markets, we introduced plastic (rotationally moulded) water tanks in Tanzania under the brand Simtank – these have the advantage over steel tanks of being cheaper, easier to install, but just as robust – despite the perception of being less solid and reliable. Through innovative marketing and assiduous production, we were able to change the consumer habits of decades to the extent that plastic water tanks are now over 90% of the market, and our brand Simtank has over 60% market share in Tanzania in a market with 5-10 manufacturers. Indeed, to this day, “Simtank” is the word used for “water tank” across Tanzania, no matter which brand is being referred to. Our innovation didn’t stop there. Looking abroad again to more developed economies, we were the first in East Africa to start producing blow moulded plastic water tanks – this different technology uses less raw material and is quicker and more efficient than the traditional roto-moulding technology. Working with distributors and using our popular “Strong. Stronger. Simtank” campaign, we gained market acceptance for the different looking product, and we now sell them in both Kenya and Tanzania
Detergents
We entered the detergents industry in the mid-1990s through the acquisition of a government company in receivership. At the time, Unilever dominated the detergents industry in Tanzania with their “Omo” brand. We created the brand “Foma” and used a number of original marketing concepts: mini-sachet pack sizes gave us higher margins while simultaneously matching the appropriate price point for the mass market (a lesson we have learned and applied time and time again across our businesses); using red packaging for brand extensions (after extensive market research) vs. the traditional blue packaging helped our product stand out; we created the higher quality brand extension “Foma Gold”; and we traded heavily on being a locally produced rather than imported brand. Within a few years, Sabuni detergents had gone from a mothballed company in receivership to successfully operating with over 60% market share in detergents. We expanded our distribution into exports, including to Democratic Republic of Congo, and finally sold the business in 2008. To this day, Foma and Foma Gold are the most recognized detergent brands in Tanzania
Beverage packaging
Within Silafrica, our plastics and packaging business, of our strongest business lines has been the production of plastic crates for returnable glass bottles for beverage companies, with clients across East Africa such as SAB Miller, Diageo, Coca Cola, Pepsi, Heineken, etc. Satisfying the high standards of multinational clients such as these has always taken a great deal of cost discipline, manufacturing excellence, and of course customer service. In 2010/2011 we began to notice a trend within East Africa to move away from returnable glass bottles towards PET plastic packaging, following trends across more developed nations. In response to this we have invested heavily in state of the art Husky machinery and related plant, in order to provide the highest quality service and delivery levels to our clients across the PET bottle (preform) segment. By anticipating this trend and working with it in order to put up appropriate investment barriers to entry, we have been able to maintain a market leadership position in the industry in both Kenya and Tanzania, with a unique status as the only 3rd party PET preform manufacturer in Tanzania. And more importantly, we have been able to work with and serve our clients as they grew through the changing aspects of the marketplace.
bottom of page