Factors determining the marketing of products to townships amongst SMEs within the retail sector

Abstract

The needs of the customers residing in townships are generally met by informal retailers operating spaza and tuck shops. These retailers sell personal and household products such as cooking oil, sugar, maize flour, snacks, soap, paraffin, candles, matches, disinfectants, cigarettes, and prepaid airtime for mobile phones. However, several factors determine the success and marketing of these products to townships by retailers. Therefore, this study sought to analyse the factors determining the marketing of products to townships amongst Small and Medium Enterprises (SMEs) within the retail sector. Thus, a literature review was conducted to collect information to identify factors determining the marketing of products to townships amongst SMEs within the retail sector using several databases. The year 2012 signaled the commencement of an organised search for publications that were pertinent to the topic. The researcher searched for journals published on township retail and marketing using buzzwords relevant to the current study. The findings of this study show that the following are marketing factors: product quality, product price, customer satisfaction, customer loyalty, and customer service. Non-marketing factors encompass competition, the transport system, road infrastructure, security, licensing and regulatory requirements, and business location. Therefore, retailers are asked to pay particular attention to these factors because they are crucial to marketing and achieving a competitive advantage.

Keywords: {'name': 'Township'}, {'name': 'retail'}, {'name': 'small and medium enterprises'}

Authors & affiliations

Steven Kayambazinthu Msosa
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.1016/j.ijpe.2014.09.033

Babu, S.R., Babu, P.R. & Narayana, M.S., (2012). Retail Technology: A competitive tool for customer service. International Journal of Engineering Science & Advanced Technology, 2(1): 110-116.

DOI: 10.25159/1998-8125/5683

Badenhorst-Weiss, J.A., Cilliers, J.O. & Eicker, T. (2014). A unique market offering by formal independent retail and wholesale small businesses in the Soweto Township, South Africa. Problems and perspectives in Management, 12(4): 366-376.

DOI: 10.12816/0006774

Bateson, J.E.G & Hoffman, K.D. (2016). Services Marketing: Concepts, Strategies and Cases. 5th ed. Texas: South Western Cengage Learning.

DOI: 10.2307/j.ctvh8r2fq

Bauer, N. (2013). State and private sector set to battle over business Bill. [Online] available from: https://mg.co.za/article/2013-04-29-state-and-private-sector-to-clash-over-business-bill. [Accessed: 19 June, 2022].

DOI: 10.2139/ssrn.1595926

Bressler, M.S. (2012). How small businesses master the art of competition through superior competitive advantage. Journal of Management and Marketing Research, 11: 2-9.

Burger, J & Lancaster, L. (2014). The increasing burden of crime on business in South Africa. [online] Available from: https://issafrica.org/iss-today/the-increasing-burden-of-crime-on-business-in-south-africa. [Accessed: 13 June, 2022].

Businesstech. (2022). The crimes that are getting worse in South Africa. [online] Available from: https://businesstech.co.za/news/government/560270/the-crimes-that-are-getting-worse-in-south-africa/ (Accessed: 15 September, 2022).

DOI: 10.4102/sajems.v20i1.1617

Chiliya, N., Herbst, G. & Roberts-Lombard, M. (2009). ‘The impact of marketing strategies on profitability of small grocery shops in South African townships’, African Journal of Business Management, 3 (3): 070-079

Chinomona, R & Dubihlela, D. (2014). Does customer satisfaction lead to customer trust, loyalty and repurchase intention of local store brands? The case of Gauteng Province of South Africa. Mediterranean Journal of Social Sciences, 5(9): 23-32

Coetzer, P & Pascarel, N. (2014). Last mile delivery in low income communities: The Sekulula spaza express experiment in South Africa. The Journal of Field Actions, 12: 1-6.

DOI: 10.35188/UNU-WIDER/2015/003-4

Dukic, S. & Kijevcanin, V. (2012). Service quality as a determinant of customer satisfaction. Fact Universitatis Series: Economics and Organisation, 9(3):311-325.

DOI: 10.52283/NSWRCA.AJBMR.20120207A02

DOI: 10.2307/j.ctvh8qx9k

Gauteng Province. (2012). The Retail Industry on the Rise in South Africa. [online] Available from:http://www.gauteng.gov.za/government/departments/provincial-treasury/Documents/QB1%20The%20Retail%20Industry%20on%20the%20Rise.pd. [Accessed: 14 September, 2022].

DOI: 10.1016/j.jue.2019.01.002

DOI: 10.1509/jm.08.0204

Hartnack, A & Liedeman, R. (2013). Factors contributing to the demise of informal enterprises: evidence from a Cape township. [Online] Available from: http://www.econ3x3.org/sites/default/files/articles/Hartnack%20%26%20Liedeman%202017%20Reasons%20for%20informal%20business%20failure.pdf. [Accessed: 14 June, 2022].

DOI: 10.5901/mjss.2014.v5n20p152

Kaare, K. K., & Koppel, O. (2012). Improving the road construction supply chain by developing a national level performance measurement system: The case of Estonia. International Journal of Social and Human Sciences, 6(2), 225-231.

DOI: 10.1108/IJBM-04-2014-0048

KilSah Consulting. (2023). How Road Infrastructure Can Boost MSMEs' Performance. Available online: https://www.linkedin.com/pulse/how-road-infrastructure-can-boost-msmes-performance/ [Accessed 10 March, 2023].

DOI: 10.1108/MIP-11-2012-0134

Machado, R. & Diggines, C. (2012). Customer service. Lansdowne, South Africa: Juta.

DOI: 10.19030/jabr.v31i4.9317

Mahofa, G., Sundaram, A & Edwards, L. (2016). Impact of Crime on Firm Entry: Evidence from South Africa. ERSA Working paper 652. [Online] available from: https://econrsa.org/system/files/publications/working_papers/working_paper_652.pdf. [Accessed: 13 June, 2018].

DOI: 10.21511/imfi.13(3-1).2016.12

Malik, E., Ghafor, M. & Iqbal, H. (2012). Impact of brand image, service quality and price on customer satisfaction in Pakistan telecommunication industry. International Journal of Science, 3(23):123-129.

DOI: 10.5901/mjss.2014.v5n20p1475

Modise, K. (2015). The impact of transport on the economic development of Africa. [Online] Available from: https://constructionreviewonline.com/2015/11/the-impact-of-transport-on-economic-development-of-africa/. [Accessed: 13 June, 2022]

DOI: 10.6007/IJARAFMS/v3-i3/21

DOI: 10.1080/09765239.2013.11884967

DOI: 10.1108/EJM-03-2018-0156

Petousis, M., (2014). 'TGI enters townships'. [Online] available from: http://www.askafrika.co.za/sites/default/files/TGi%20enters%20townships.pdf. [Accessed: 15 September, 2022].

Pick n Pay. (2016). Grocery retail sector market inquiry: Index to non-confidential submission made by Pick N Pay. [Online] available from: http://www.compcom.co.za/wp-content/uploads/2016/09/Pick-n-Pay-Submission-Non-Confidential-1.pdf. [Accessed: 13 June, 2022].

PWC, (2012). South African retail and consumer products outlook 2012–2016. PWC and Economist Intelligence Unit Report. [Online] available: (http://www.pwc.co.za/en/assets/pdf/retail-and-consumer-products-outlook-2012-2016.pdf [Accessed: 29 July, 2022].

Razak, I., Nirwanto, N., & Triatmanto, B. (2016). The impact of product quality and price on customer satisfaction with the mediator of customer value. IISTE: Journal of Marketing and Consumer Research, 30, 59-68.

DOI: 10.5171/2014.724178

Smith, C. (2014). Impact of crime on SA business at dire levels. [Online] available from: https://www.fin24.com/Economy/Impact-of-crime-on-SA-business-at-dire-levels-20141126. [Accessed : 13 June, 2022].

DOI: 10.22495/jgr_v3_i4_c2_p11

DOI: 10.19030/iber.v14i3.9210

Terblanche, N. (2013). Retail management: A South African perspective. 1st ed. Cape Town: Oxford University Press Southern Africa (Pty) Ltd.

DOI: 10.1016/j.emj.2013.07.001

Utami, S. (2015). ‘The influence of customers trust on customer loyalty. International Journal of Economics, Commerce and Management, 3(7): 638-653

Wanjiku, E. M. (2014). Socio-economic benefits and environmental impacts of Thika Road superhighway. Retrieved from Kenyatta University Institutional Repository. (Accession No. http://ir-library.ku.ac.ke/handle/123456789/12936). [Accessed: 4 January 2022]

Western Cape Government. (2016). Business licenses and permits. [Online] available from: https://www.westerncape.gov.za/general-publication/business-licences-and-permits. [Accessed: 13 June, 2022].

DOI: 10.4236/jdaip.2013.14008

DOI: 10.1016/j.sbspro.2014.03.643