Knowledge, Attitudes, and Correct Application of GHP/GMP Among Foodservice Workers

MARKETING
 Marketing is a process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods and services to create
exchange that satisfies individuals or organization objectives.
 Marketing is a process by which companies/firms create value for
customers and build strong relationship to capture value from customers
in return
 The heart/core of marketing is to understand your customers’ needs and
develop a plan to surround those needs
 Marketing is about making it easy for the customer to say “YES”

OVERVIEW OF STP MODEL
 Discover needs/wants of customer groups to develop
specialized products to satisfy group needs
 Identify the best product promotions processes
 Related concepts (STP)
1. Segmentation: subsets with similar needs
2. Targeting: Which segment to aim
3. Positioning: The product in the mind of the customer

1. Market Segmentation
 Market Segmentation: is the act of dividing the entire market into
different segments so that a marketer can be able to decide which is the
target market
 e.g. For clothing products the market can be divided into segments of
babies/ youth vs adults clothes, heavy vs light clothes, male vs female
clothes etc.
 Market segmentation is dividing your customers into smaller groups
based on various characteristics and needs.
 Why segmenting
 Effectiveness
 Efficiency

The Importance of Market Segmentation
1. Precise and Personalized Targeting
 Without market segmentation, it’s like shooting in the dark instead of targeting the ideal
customers
2. Increased Return on Investment (ROI)
 Through customer segmentation and personalized marketing campaigns, you can reduce
promotion costs
 It increases the efficiency of the campaign and hence produces ROI
3. Increased Competitiveness and Adaptation
 By focusing on a specific subset of prospects, the competitiveness in that market segment increase
4. Reduced Time and Money
 Launching marketing campaigns is a costly: it’s important to strategize and cut expenses and
time at every stage.
5. Better Relationships and Customer Retention
 Market segmentation leads to a better understanding of your customers in aspects : age,

Bases/Criteria for Market Segmentation

Collaborative Research
–Engage various
Stakeholders
–Data Collection

1. Demographic Segmentation
The consumer/customer market is segregated based on
demographic: salary, gender, marital status, nature of work, age,
no of family members, gender, nationality, race, religion etc.
It enables to separate unspecific customer base in a feasible and
cost-effective way
Example : Many deodorant companies offer gender-specific
aromas

2. Geographic Segmentation
 Targets a specific set of consumer market confined to the territorial limitations or
geographical areas
 Consumer preferences and demands vary according to their regional habitats,
 Factors that cause variation might be climatic conditions, population, ethnicity,
religious beliefs, culture, language and type of area (urban/rural)
 Example: Considering the religious sentiments, Beef is banned in India. Thus,
‘McDonalds India’ does not sell beef-based edibles in the Indian continent.
 Example : ‘LG Electronics’ promotes and advertises for its ‘Heaters’ in colder
regions and for ‘Air conditioners’ in warmer regions

3. Psychographic Segmentation
 Subjective in its approach and segregates the markets based on customer
attitudes and likings
 its qualitative in nature
 It is difficult to interpret the psychological perceptions of consumers
 Psychological segmentation is driven by intangible factors such as customer
traits, attitudes, likings, value systems, beliefs, way of life, motivational drive,
viewpoints,
 Psychological segmentation requires the companies to understand the
mindset of intrinsic and Extrinsic attributes of the consumers/customers
 Example: Fitness/Exercise markets target health and fitness conscious
consumers while segregating the consumer base

4. Behavioral Segmentation
 The thin line between ‘Psychographic’ and ‘Behavioral’ segmentation is the
 ‘Psychographic’ focus on ‘who’ a customer is
 ‘Behavioral’ understands ‘how’ a customer behaves or acts
 The factors that are considered under this segmentation: buying and spending
tendencies of the customers
 buying frequency
 brand loyalty
 consumption rate and
 interactions with the brand.
 Behavioral Segmentation is segregated based on consumer knowledge and
experience with the product
 Example: ‘Sensodyne’ toothpaste brand is specifically targeted for consumers with sensitive teeth
 Example : ‘Apple’ was launched for premium consumers, looking for uniqueness.

Quick Thinking
– If organization/institution X
dedicated for post graduate
studies was to offer training,
– what could be strategic
approach to consider?

Small Businesses CANNOT be all things to all people
Each business MUST reach specific customers and satisfy their
particular needs and wants
Target market: is all about defining audience to target for a
product (good or service)
Target Market: group of people to whom the company wants
to sell its end product
It is a combination of end potential customers for whom the
company is desired to market its product
Target Market

1. Know Your Customers
Think carefully about the product (goods or services) and your customers
too
2. Establish Your Customers’ Demographic Profile
Demographics are extremely important for targeted marketing
Eg.
Marketing expensive furniture in a low-income housing community
Target Market

3. Analyze Your Target Customers’ Lifestyle
Lifestyle is also important when determining your customers’ profile
Is your audience employed or retired?
How they like to spend their spare time?
What are their hobbies and shopping habits?
What other products do they buy?
What are their eating habits?
Target Market

4. See What Your Competitors Are Doing
If the targeted audience is buying a similar product or service
from competitors, find out the reason
Some reasons might be lower prices, better service etc.
It is more important to understand what type of goods and
services your competitor is serving
Target Market

Targeting in marketing is important for so many reasons
and one of them is being a part of a marketing strategy
It impacts advertising, as well as customer experience,
branding, and business operations
Marketing to target buyers is the most effective and
efficient approach
it helps to easily differentiate the brand from competitors
It offers great chance of market penetration by focusing
on smaller segment and specific audience
The Importance of Target Marketing

Market Positioning is the ability to influence Consumer perception
regarding a brand or product relative to competitors
The objective is to establish the image or identity of a Brand or product so
that consumers perceive it in a certain way
 A brand is what people see our products (Goods or services),
 What qualities and things they associate with the product
 it reveals the product attributes,
 what the product offers, and at what value
 E.g.. LG, Sony these are music system, LG fridge, WESTPOINT Fridge ( Electronics)
brands
Market Positioning

Examples of Market Positioning
A handbag maker may position itself as a luxury status
symbol
A TV maker may position its TV as the most innovative and
cutting-edge
A fast-food restaurant chain may position itself as the
provider of cheap meals
Defining Market Positioning

Quick Thinking
–A fast-food
restaurant chain
may position itself
as the provider of
cheap meals
–What kind of a
customer most likely
to target?

Product attributes and benefits: Associating the brand/product with
certain characteristics or with certain beneficial value
Product price: Associating the brand/product with competitive pricing
Product quality: Associating the brand/product with high quality
Product use and application: Associating the brand/product with a specific
use
Competitors: Making consumers think that the brand/product is better
than that of your competitors
Market Positioning Strategies

A perceptual map is used to show consumer perception of
certain brands
The map identifies how competitors are positioned relative
to your brand/product and to identify opportunities in the
market place
Eg. consumers perception of price and quality of brands in
the automobile industry are mapped
A Perceptual Map Strategy in Market Positioning

Create a positioning statement that serves as identification of the
business and the brand perception by consumers.
Eg. the positioning statement of Volvo: “For upscale American families,
Volvo is the family automobile that offers maximum safety.”
Positioning statement of Vodacom Tanzania “ Yajayo Nafurahisa
”That means they keeping innovating their products……….
TTCL Positioning Statement “ Hujachelewa, Rudi Nyumbani
Kumenoga……….
TIGO Tanzania “Live It, Love It”
CoFIRE “Refining the mind for creative Knowledge”
Halotel: “Together for the better “
Market Positioning Statements

1. Determine company uniqueness by comparing to competitors
Compare and contrast differences between the company and competitors to
identify opportunities.
Focus on your strengths and how you can exploit the opportunities
2. Identify current market position
Identify the existing market position
how the new positioning is beneficial in setting the company apart from
competitors
Create an Effective Market Positioning Strategies

Competitor positioning analysis
Identify the conditions of the marketplace
the influence each competitor can have
Develop a positioning strategy
an understanding of what your company is: Self analysis
 How your company is different from competitors
the conditions of the marketplace
Opportunities in the marketplace
How your company can position itself
Create an Effective Market Positioning Strategies

Assignment- Individual Studies
Individual Studies
Marketing Mix – 8Ps of Marketing Mix
Reference - https
://www.smartinsights.com/marketing-planning/marketing-models/how-to-u
se-the-7ps-marketing-mix
/

Assignment- Individual Studies
/

Independent Study
UNDERSTANDING TAX AND BUSINESS
BASED ON TANZANIA TAX GUIDE
2020/2021

Origin of Tax
The Greeks, Egyptians and Romans also enforced tax policies that they
used to fund centralized governments
The Greeks levied several types of taxes that are still enforced in many
developed countries, including taxes on property and goods.
Fair taxation was a key issue for many English citizens during the medieval
period.
flat tax on every adult in a jurisdiction,
Property church taxes.
Peasant (obligated to donate 10 percent of their labor or produce to the
church)

Formal Business
To make your business formal and recognized by
government and other stakeholders you have to
comply with tax laws.
You should have TIN (Tax identification number).
You should have Business license and other legal
documents depending on the nature of the business.

RECORDS KEEPING FOR TAX AND OTHER BUSINESS
PURPOSE
Records keeping is very important in any business dealings
These records can be maintained electronically or manually
Preparation of financial statements is important.
All key source documents like receipts, invoices, bank slips, e.t.c. must be
maintained.
Financial records should be maintained for a period of five years as per TRA
regulations
Enables to identity financial performance and profits
 For Tax determination
 Helps to secure loans in financial institutions
Compliance to regulatory bodies

Understanding the Major Taxes in Tanzania
TAX SUFFERED BY
TAXES RELATED TO REVENUE/ REVENUE TAXES
1. Income Tax (Business Income, Employment
income, rental income, dividend income, interest
income)
Individuals and Partnerships
2. Corporation Tax Companies
3. National Insurance Contributions Individuals, partners, employers & Self-employed
4. VAT Final Consumer
TAXES RELATED TO CAPITAL/ CAPITAL TAXES
1. Capital gains Individuals, partnerships and companies
2. Inheritance tax Individuals

PRESUMPTIVE TAX RATES FOR BUSINESESS
ANNUAL TURNOVER Compliance with Section 35 of TAA (Tax Administration
Act of 2019), Cap 438
Not Complied Complied
Where turnover does not exceed Tshs.
4,000,000=
NIL NIL
Where turnover is between Tshs.
4,000,000= and TZS. 7,500,000=
TZS 100,000/= 3% of the turnover in excess of Tshs
4,000,000/=
7,500,000=and TZS. 11,000,000=
TZS 250,000/= TZS 90,000/= plus 3% of the turnover in
excess of TZS 7,000,000/=
11,000,000= and TZS. 14,000,000=
TZS 450,000/= TZS 230,000/= plus 3% of the turnover in
Where turnover is between TZS.
14,000,000= and TZS. 16,000,000=
NA TZS 450,000/= plus 3.5% of the turnover in

PRESUMPTIVE TAX RATES FOR BUSINESESS
Registration of small vendors and service providers conducting business in an
informal sector whose turnover is less then TZS 4,000,000/= shall be recognized
and be issued with an Identification Card
Turnover exceeds TZS 100,000,000/= p.a. the taxpayer is obliged to prepare
audited financial statements
Any person whose turnover exceed TZS 14,000,000/= p.a. is obliged to acquire
and use the Electronic Fiscal Device (EFD).
A person whose turnover is below TZS 14,000,000/= shall issue manual receipt in
duplicate copy with particulars of:- date, full name of the person sold the goods
with TIN
Full description of the goods, full name and address to whom the goods were
sold

SUBMISSION OF RETURNS AND PAYMENT OF TAX
For accounts based on Calendar year
 On or before 31st March
 On or before 30th June
 On or before 30th September
 On or before 31st December
Note: Payments for other accounting dates are made at the end of every quarter,
depending on one’s accounting period.
Final returns and payment of tax:
 Within six months from the end of the accounting period
Late payment of tax: Shall be charged interest at the prevailing BOT statutory rate at the
time of imposition.

Penalties for misuse of EFDs (Electronic fiscal device)
 Failure to acquire or use EFD,
 Failure to issue fiscal receipt or fiscal invoice,
 Issue fiscal receipt/invoice that is false or incorrect, use of EFD device that misleads the
system or commissioner etc.
 The person commits an offence and shall be liable, on conviction to a fine of not less than
200 currency points and not more than 300 currency points or
 To imprisonment for a term not exceeding 3 years or both

A person involved in Misuse of EFD :
shall be liable to fine of twice the amount of tax evaded
or imprisonment for term not exceeding 3 years.
Any person who fails to demand or report a denial of issuance of fiscal receipt or
fiscal invoice upon payment for goods or services
Commits and offence and shall be liable upon conviction to a fine not less than 2
currency points and not more than 100 currency points
(1 currency point is equivalent to TZS. 15,000/=)

2020/2021 Tax Guide for businesses registered as
corporations/companies
TYPE OF CORPORATION TAX RATE
Tax Source Resident Non Resident
Tax rate on total income of the Corporation 30% 30%
Newly listed companies – reduced rate for 3 years 25% 25%
A corporation with newly established plant for
assembling motor vehicles, tractors, fishing boat
or out boat engine
10% NILL
A newly established entity dealing in manufacture
of pharmaceuticals or leather products
20% NILL

Individual tax rates in Tanzania mainland
Income Range (Monthly) Tax Rates (PAY AS YOU EARN –PAYE
TSHS. PERCENTAGE
Where total income does not exceed TZS 270,000/= NIL
total income exceeds TZS 270,000 but does not exceed
TZS 520,000/= 9% of the amount in excess of TZS
270,000
9% of the amount in excess of TZS 270,000/=
Total income exceeds TZS. 520,000 but does not exceed TZS
760,000/=
TZS 22,500/= plus 20% of the amount in excess of TZS
520,000/=
Total income exceeds TZS 760,000/= but does not exceed TZS
1,000,000/=
TZS 70,500/= plus 25% of the amount in excess of TZS
760,000/=
Total income exceeds TZS 1,000,000/= TZS 130,500/= plus 30% of the amount in excess of TZS
1,000,000/=
Threshold per annum: Annual Income of TZS 3,240,000 /=is not taxable

Skills and Development Levy (SDL)
Skills and Development Levy (employer) Tanzania Mainland
 Tax rate 4% is to be applied on monthly gross emoluments.
Exempted employers from SDL
 A Government Department or a Public Institution which is wholly financed by the Government
 Diplomatic Missions
 The United Nations and its organizations
 International and other foreign institutions dealing with aid or technical assistance
 Religious institutions
 Charitable organizations
 Local Government Authority
 Farm employers whose employees are directly and solely engaged in farming
 Registered educational Institutions Schools
 Learning Institutions.

WITHHOLDING TAX RATES
Description Resident
Corporation
Non-Resident
Corporation
% %
Dividend from a resident corporation 5 NA
Dividend from DSE listed Companies 5 5
Dividend from other corporation 10 10
Commission money transfer through mobile phones 10 NA
Commission, fees or other charges on commercial bank services and digital payment to urgent 10 NA
Interest 10 10
Royalties 15 15
Management of technical services fee (Mining, oil and gas) 5 15
Transport (Non-resident operator/chartered without permanent establishment) NA 5
Rental Income: Land and building 10 20
Aircraft Lease 10 20
Others NA 15
Withholding tax is the amount of tax retained by one person when making
payments to another person in respect of goods supplied or services rendered
by the payee

PAYMENT FOR WITHHOLDING TAX RATES
Note:
Payment of withholding taxes should be within 7 days after the month of deduction;
and
The submission of withholding tax statement is within 30 days after each 6 month
period.
Does not include the following services:
hotel/accommodation services, security services, clearing services, loading and
off loading services, storage services, packaging services, vehicle rental,
equipment rental, supply of agency staff, and telephone services.

COMPLIANCE TO TAX LAWS
 Registration of small vendors and service providers conducting business in an informal sector shall be
recognized and registered with TIN and be issued with an Identification Card.
 turnover exceeds Tshs 20,000,000/= p.a. the taxpayer is obliged to prepare audited financial statements
in respect of his/her business.

 Any person whose turnover exceeds Tshs 14,000,000/= p.a. is obliged to acquire and use the Electronic
Fiscal Device (EFD).
 A person whose turnover is below Tshs 14,000,000/= shall issue manual receipt in duplicate copy with
particulars of:-
 Date, full name of the person sold the goods with TIN thereon, full description of the goods, full name
and address to whom the goods were sold and any other particulars the Commissioner General may
specify.

VALUE ADDED TAX (VAT)
VAT is Tax charged on consumption of goods and services.
This is Tax charged on every stage of production of goods and
services
VAT is paid by VAT registered businesses on taxable goods and
services.
VAT burden is felt by the final consumer.

VALUE ADDED TAX RATES (VAT)
INDIRECT TAXES: Taxable
Supplies
Rate*
%
Supply of taxable goods and services in mainland 18
Import of taxable goods and services into mainland 18
Export of goods and certain services from the United
Republic of Tanzania
0
Supply of good on transit through mainland Tanzania 0

IMPORT DUTY
ITEMS %
Capital goods, raw materials, agricultural inputs, pure-bred animals,
pharmaceutical goods
0
Semi-finished goods 10
Finished commercial or final consumer goods 25
Some sensitive items are charged at higher rate than 25% for protecting local
industries (yogurt, milk and cream containing sweetening matter, sugar etc)

Maintenance of documents and provisions of
information
Every tax payer must prepare and retain documents for a period
of five years, either paper or electronic to enable the
commissioner to determine tax
The commissioner general, without prior notice can inquire for
any information and should be given free access to documents,
premises, vehicles and other assets

DEADLINES, Interest & PENALTIES
Non-compliance penalty
Failure to maintain documents by individuals 30,000 per month from when the failure started
Failure to maintain documents by body corporates 150,000 per month from when the failure started
Failure to file returns within 6 months after accounting period 2.5% per month out of the tax payable.
Making false returns or omission with no reasonable excuse 50% of the tax shortfall
Making false returns knowingly or recklessly 75% of the tax shortfall
Failure to pay tax which is in excess of 750,000 A penalty between TZS. 375,000 but not more than Tshs.
1,500,000 or imprisonment of 3 to 12 months or both
Failure to pay tax which is less than 750,000 Penalty of not less than Tshs. 150,000 and not more than
375,000 or imprisonment of 1 to 3 months or both

Taxes for specific goals
 HOTEL LEVY
 Every owner of a registered tourism accommodation facility is obliged to collect
from every tourist a Hotel Levy of an amount equal to 10% of guest house
charges.
RAILWAYS DEVELOPMENT LEVY
 There shall be charged a levy known as Railways Development Levy at the rate of
1.5% of customs value on importation of goods entered for home consumption
in Mainland Tanzania.

Tax Compliance
 EXCISE DUTY ON IMPORTATION OF USED VEHICLES
 Imported vehicle aged 8 years but not more than 10 years 15%
 Imported vehicle aged more than 10 years 30%
 EXPORT LEVY
 80% of the value (FOB) of Raw Hides and Skins or 0.52 USD per Kilogram whichever is greater.
 Wet Blue Leather is 10% of the value of the commodity (FOB)
 A levy of 15% is chargeable on Raw Cashew Nuts, computed on FOB value or USD 160 per mt. whichever is
higher.
 PROHIBITED GOODS
 Narcotic Drugs, Tear Gas Substances, Seditious, Obsceneness Materials or Literature.
 RESTRICTED GOODS
 Live Animals, Plants, Fire Arms, Ammunitions, etc
 NOTE: These require permit from relevant authorities.

Import and export Tax Compliance
 DESTINATION INSPECTION
 Imported goods regardless of their value are required to be inspected in the country.
 A fee of 0.6% on FOB value is chargeable.
 Exempted goods are enshrined in the law.
IMPORTS FROM EAST AFRICAN COMMUNITY MEMBER STATES
 Goods within member states are chargeable at the rate of 0% provided that the criteria
of rules of origin are adhered to.
 EAC Member states are Tanzania, Kenya, Uganda, Rwanda and Burundi.

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