Market analysis and positioning

We have extensive expertise in conducting market analysis and positioning across a number of financial sectors in Africa and the Middle East. We work with our clients to understand industry dynamics and ascertain the relative position of competing businesses. Our approach focuses on understanding supply-side and demand-side issues to uncover potential gaps which our clients can then use in developing strategies to unlock value.

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Expertise Areas

Market analysis

We work with our clients to identify opportunities and threats within existing and new markets through conducting robust market analysis. Our approach to market analysis is based on using an array of methodologies, grounded in our unique understanding of macro- and micro- economic issues, which are tailored to the specific needs of our clients. 

Competitive positioning

We assist our clients in understanding their market positioning, relative to their competitors. Our approach to competitive positioning includes defining the market for services and comparing industry players across a number of metrics such as segmentation, pricing, distribution, products, business and operating models, and performance.

Segmentation

We develop pragmatic segmentation strategies to ensure that resources are allocated efficiently and our clients are best placed to create value. Our approach is based on a combination of rigorous analytical research and stakeholder engagement. We support demand-driven innovation and believe that effective segmentation is therefore essential to our clients’ commercial success. Our team’s unique strength is the ability to synthesize large volumes of data into clear, usable customer insights to inform strategy.

Customer value proposition (CVP) development and execution

We work with our clients to define and develop and implement distinct customer value propositions at corporate, business unit and segment level. Value proposition development involves a detailed analysis of the company’s unique capabilities and its relation to the characteristics of the external market, including customers, other products, competitors and pricing

Projects

Quantifying the true cost of cash in South Africa

Project name:
Consumer cost of cash in South Africa

Service:
Market analysis and positioning

Sector:
Financial Services

Area of Expertise:
Payments

Client:
MasterCard

Date:
2016

Country:
South Africa


South Africa has a high proportion of banked adults but cash still accounts for over 50% of the total value of all consumer transactions. While digital payments innovation is taking place at an unprecedented speed with significant benefits for consumers, cash remains sticky. 

Cash usage is particularly prevalent among low-income earners who have lower access to digital channels and who live in communities where digital payments are not always accepted. International studies have shown that cash usage incurs both direct and indirect social economic costs.   

Genesis partnered with MasterCard to quantify the true cost of this reliance on cash for consumers in South Africa. While most consumers are aware of the direct costs of using cash, such as bank transaction fees, the indirect social economic costs of cash usage are often overlooked. These indirect factors include the cost of travelling to cash points, the time forgone, the interest foregone by holding cash, and the risk of loss or theft, among others.  

Genesis undertook a comprehensive quantification of these costs through rigorous assessments of secondary survey data of consumer behaviour. Quantifying the direct costs of cash such as ATMs, branch costs and cash back at point of sale was relatively straightforward using available data. However, quantifying the indirect costs was significantly more difficult and required developing new quantification methods. 

After identifying all the components of the indirect cost of cash through literature reviews, Genesis calculated the opportunity costs associated with cash usage for different income segments in South Africa. We did this by incorporating multiple data sources, sound assumptions and probability theory into an economic model. The study found that cash cost consumers in South Africa about R23-billion, or 0.52% of GDP, and that poorer communities carried a disproportionate share of these costs.

This was a landmark study because no other South African study on consumer costs of cash has conducted an analysis at this level of detail. The research concluded that any strategy to reduce the cost of cash for consumers in South Africa would have to be centred on behavioural adjustments as well as improving accessibility to alternative payment channels through product innovation, particularly in rural and semi-urban areas. 

The study was presented at the World Economic Forum on Africa in 2017 and provided a resource for MasterCard to contribute to policy discussions on the benefits of migration to digital payments.  

R23-billion cost of cash in SA is carried by low earners


Sizing Africa’s Vehicle and Asset Finance (VAF) market

Project name:
Sizing Africa’s Vehicle and Asset Finance (VAF) market

Service:
Market analysis and positioning

Sector:
Financial Services

Area of Expertise:
Retail banking
Business banking
Corporate and investment banking

Client:
A large Pan-African bank

Date:
2015

Country:
Angola
Botswana
Ghana
Kenya
Mozambique
Namibia
Nigeria
Tanzania
Uganda
Zambia


A large Pan-African bank approached Genesis to conduct a market-sizing exercise for vehicle asset finance (VAF) across its operations in 10 countries encompassing personal, business and commercial vehicles.

The research focused on a macroeconomic analysis of the 10 countries and the trends that may influence VAF in the future. It also focused on a review of both sector and industry developments to identify opportunities for growth.

A market-sizing exercise was then conducted using import data, regulator information, client data and industry association data. The report also estimated the client’s potential market share based on the trends and gaps in the asset finance market. 

The client used the research to develop its Africa go-to market strategy for VAF products.

Market opportunity analysis for card acquisition

Project name:
Market opportunity analysis for card acquisition

Service:
Market analysis and positioning

Sector:
Financial Services

Client:
A global point-of-sale manufacturer

Date:
2014

Country:
Angola
Ghana
Kenya
Mozambique
Nigeria
Tanzania
Uganda
Zambia


Genesis was commissioned by a global point-of-sale manufacturer to investigate market opportunities in eight sub-Saharan countries.

The first step was the selection of the focus countries through a filter of selected macroeconomic indicators: GDP, individual spending power and the level of financial deepening. This resulted in the selection of Angola, Ghana, Kenya, Mozambique, Nigeria, Tanzania, Uganda and Zambia.

The next step was to analyse specific elements of each economy to identify key trends and potential opportunities. The broad areas of investigation were the nature of the banking industry, the possible threat level of the mobile payments space, the strength of the formal retail sector and the possible ticketing and value added service opportunities. All of these areas related to the different product types offered by the company.

The project recommended a targeted deployment by first focusing on core markets and secondly, targeting specific opportunities within those markets with existing offerings. The opportunity in the card space (both point of sale and mobile point of sale) was dwarfed by the possible value-added services and ticketing market opportunity.

Sizing the SA digital banking market

Project name:
Sizing the digital banking market

Service:
Financial institution expertise
Market analysis and positioning

Sector:
Financial Services

Area of Expertise:
Retail banking

Client:
A Pan-African bank

Date:
2015

Country:
South Africa


Genesis was commissioned to complete a comprehensive market sizing of the digital banking platforms in South Africa. This involved a market view and a detailed competitor sizing for online channels. 

This project put in context the demand and supply sides of the market in order to gear a large Pan-African bank for innovative digital practices in the future. Genesis, in conjunction with Moxon, developed up-take and adoption predictive models for the bank’s team. 

With this the bank identified customer sets within its client base to actively target for adoption campaigns. We also developed a comprehensive insights report on the digital landscape within South Africa. Specifically, this report touched on the demographics of the country, cellphone, PC and tablet usage statistics, as well as market share analysis of device and digital channel usage. These insights were used by the bank in the development of the bank’s digital strategy.

Assessing SA's ATM market for consolidation

Project name:
Assessing South Africa’s ATM market and opportunity for optimisation

Service:
Market analysis and positioning

Sector:
Financial Services

Client:
A large cash-in-transit company

Date:
2014

Country:
South Africa


Genesis was commissioned by a large cash-in-transit company to conduct an end-to-end analysis of the ATM industry and the factors shaping it, with the view to quantify the consolidation opportunity and industry cost savings. 

The top-down analysis estimated the true value of cash in the South African market, using two approaches (Reserve Bank data and bank data). From this a five-year view on cash was formed. 

Recent developments in ATM and cards – such as the effect of SASSA, payment innovations and regulatory changes – were also incorporated into the analysis. The top-down approach yielded a significant opportunity for consolidation.

The bottom-up analysis involved a more detailed quantification of the consolidation opportunity. ATM supply data was extracted from a number of sources and then reconciled to form the most complete data set possible. 

The demand for ATMs was determined at a municipal level through the use of regional data. The supply and demand findings were overlaid to define over-capacity at the municipal level. The significant opportunity for consolidation was verified, however, as the expected magnitude of this opportunity was lower in the bottom-up.

Based on these findings the client presented a detailed opportunity for consolidation to its board.

Review of the Ugandan Microfinance Sector

Project name:
Review of the Ugandan Microfinance Sector’s Effectiveness (2004 to 2014)

Service:
Financial inclusion
Market analysis and positioning

Sector:
Financial Services
Public and Social

Client:
The Department for International Development (DFID)

Date:
2014

Country:
Uganda


Genesis was commissioned by DFID and the Ugandan financial services inclusion programme to conduct a review of the progress made within the microfinance industry in Uganda, consider the emerging trends in the sector as well as to provide a look into the future and recommend new strategies for increasing the level of financial inclusion.

The review served as an update of a similar study that was conducted in 2004. The review highlighted the changes in the market, in particular the impact of government programmes and mobile money, and highlighted the range of donor support currently available to the sector.

Meet the Team

Areas of Service Expertise

  • Market analysis
  • Competitive positioning
  • Segmentation
  • Customer value proposition (CVP) development and execution

Projects

Project

Quantifying the true cost of cash in South Africa

South Africa has a high proportion of banked adults but cash still accounts for over 50% of the total value of all consumer transactions. Genesis partnered with MasterCard to quantify the true cost of this reliance on cash for consumers in South Africa.

View Project
Project

Sizing Africa’s Vehicle and Asset Finance (VAF) market

A large Pan-African bank approached Genesis to conduct a market-sizing exercise for vehicle asset finance (VAF) across its operations in 10 countries encompassing personal, business and commercial vehicles.

View Project

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Leading the team

Bavani Naidoo

Principal

Bavani Naidoo
Principal
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Mauro Mela

Principal (Financial Services Strategy)

Mauro Mela
Principal (Financial Services Strategy)
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Vlad Lakčević

Manager

Vlad Lakčević
Manager
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