Kasi survey reveals relationship between price and ROI

© Anke van Wyk – 123RF.com

The research, conducted by the Ask Afrika Group, showed that ROI is synonymous with value. Kasi shoppers are hybrid consumers who shop across the price spectrum and the relationship between price and income is not linear. Value is about balancing of price and benefit. Successful Kasi Star Brands provide a wider range of choice at affordable prices.

"We must not confuse ROI with quality. It is what it can do for 'me' as a Kasi shopper. I'm not saying quality is irrelevant. It depends on who you are. But, it is always about what it can do for 'me', linked to what is important to 'me'," says Sarina de Beer MD at Ask Afrika.

The survey revealed that 5% more Kasi consumers, when compared to the national average, tend to buy well-known brands for household products. 9% more than the national average believe that well-known brands are better than a shop's own brands, and 4% above the average indicated that it is worth paying more for quality products. The majority of the spend (51%) is spent on groceries in townships, compared to 28% in other urban areas.

Shop in bulk

The Kasi consumer buys where they get the best deal. They are often part of a Stokvel which helps them save for Christmas and Easter, and it helps to share and shop in bulk and transport goods together. 48% use taxis to transport goods bought, since only 10% have access to personal or family transport. They look out for promotions, but these are not always timed conveniently to fit in with their lifestyle. Foreign based spazas often provide good prices and credit.

"Retailers' success in townships is largely dependent on proximity and the route to market. This should be a key component of brand strategies, making access to shops convenient and close to the consumers' homes," says De Beer.

Key elements that marketers should take into account are accessibility, affordability and an in-depth understanding of how the Kasi consumer lives, avoiding stereotypes. There is a complex system of calculation and planning in the buying behaviour of this target market.

Retailers should offer products in quantities that suit the consumers' needs, both in terms of available budget and also to ensure that there is no wastage. Often the consumers do not have fridges, so small amounts of perishables need to be bought on a regular basis. Malls are perceived to be expensive but convenient. The Kasi consumer will use all shopping avenues depending on their immediate needs, but they plan to ensure their ROI.