Research News South Africa

Reach the “bottom of the pyramid” more effectively

C.K. Prahalad, one of the world's leading business strategists, has recently provided new insights on how brand-owners can tap into “The Fortune at the Bottom of the Pyramid” (lower–middle mass market, LSM 1 – 5 in South Africa), and is featured later this month at Gallagher Estates.
The South African pyramid
The South African pyramid

MAKES YOU THINK!
units sold... can be extremely high... margins low... new models... new measures of success...

Marketta ‘Trade Routes©’ research provides the information/insights required for you to understand, and reach this market more effectively and efficiently – through informal, as well as formal channels of distribution, and new/evolving delivery platforms... through co-creation of values... and exciting new models where “distribution” and communication/promotion come together to connect and form bonds between brand and community!

In 2006 Marketta conducted comprehensive trade/shopper research focussed on the lower-middle mass market – covering: independent traders; cash ‘n carry wholesalers; and lower-middle mass market ‘Shoppers’, producing valuable info and insights for nine participating clients (18 brands).

“Trade Routes©” syndicated research focus in 2007, is the spaza trade in SA

‘Estimates’ of the spaza market in SA are vague, (and one-dimensional) – and range from 150 000 outlets to over 300 000... (apart from macro-economic studies ex BMR; some good work being done in WC by Triple Trust Organisation; and by distribution agents including TAC/Primedia Face 2 Face) and there is little current information available on the profiles of spaza’s, or the product ranges and brands carried by different types of spaza outlet...

There is no commonly accepted ‘categorisation’ of spaza’s, which would assist in evaluation of importance and priorities for brands; and little that points to answering key questions of growth/trends, or the changes taking place at spaza level... including the emerging new models for spaza survival, and growth; where/how the different spaza’s purchase product; or the level of influence they have on brand choice.

Spaza’s remain an important part of the distributive trade, reaching the lower middle mass market through providing location convenience for ‘emergency’ and ‘fill-in’ purchase. Conservative estimates put spaza’s turnover at R5 – 7bn per annum... AND spaza’s provide employment/income to many who would otherwise be poverty stricken.

The research is planned for April/May with results end-May/early June. It will be practically ‘hard-hitting’, and will provide valuable info on the spaza trade and its value/importance to brands – not only in making brands available, but also optimising spaza’s unique connection with the people! It includes comprehensive personal interviews with 960 spaza owners, as well as observation checks at outlet level.

The results output will be in the form of valuable information; highlighting of insights and opportunities; and identifying practical action(s) that can be taken to improve company/brand performance in the townships market, through... spaza’s!

For more details contact: Laura Shaw/John Foster at Marketta
011 675-0241/2 or

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