TABLE OF CONTENTS
1. Introduction ......................................................................... 1
2. Background of Mokgethi's General Dealer ...................... 2
2.1 Business Background ........................................................ 2
2.2 Products and Services ....................................................... 3
2.3 Challenges Faced by the Business .................................... 4
3. Technological Progress in Africa ..................................... 5
3.1 Technology in Africa ........................................................... 5
3.2 Use of Technology by Mokgethi's General Dealer ............. 7
3.3 Benefits of Technology to the Business ............................. 9
4. Population Structure and Marketing ................................ 10
4.1 Population Structure in Africa ............................................ 10
4.2 Youth Population ............................................................... 11
4.3 Urbanisation ...................................................................... 12
4.4 Culture and Income Levels ................................................ 13
4.5 Impact on Mokgethi's General Dealer ................................ 14
5. Growth of Mobile and Internet Access ............................ 15
5.1 Growth of Mobile Phones and Internet .............................. 15
5.2 Marketing Through Social Media ....................................... 17
5.3 Mobile Payments ............................................................... 18
5.4 Online Ordering and Customer Service ............................. 19
5.5 Digital Advertising .............................................................. 20
6. Conclusion .......................................................................... 22
7. References ........................................................................... 24
8. Appendix .............................................................................. 25
1
,1 INTRODUCTION
Africa is home to more than 1.2 billion people. Its economy is growing and changing,
which creates both chances and problems for businesses (Makhitha, 2018, p. 3). To
understand marketing in Africa, it is important to look at the different regions, the
people, their cultures, and the growth of technology. These factors affect what people
buy and how businesses work.
This assignment focuses on a small business in my area in South Africa. The business
chosen is Mokgethi's General Dealer, a spaza shop in Soweto, Gauteng. This business
will be used to explain and apply the ideas about marketing in Africa from the study
material. The assignment looks at the background of the business and how technology,
population changes, mobile phones, and internet access can affect the business.
The assignment has four main questions. The first question gives the background of the
chosen SMME. The second question looks at the growth of technology in Africa and
how the business can use it. The third question explains how the population affects
marketing and how this can affect the business's marketing plans. The last question
looks at the growth of mobile phones and internet access and explains how the
business can use these changes to improve its marketing.
2
, 2 BACKGROUND OF THE BUSINESS
Mokgethi's General Dealer is a micro-enterprise operating from a converted shipping
container in the heart of Soweto, one of South Africa's largest and most historically
significant townships. Established in 2018 by Mrs. Mokgethi, a former domestic worker,
the business was started with her retirement payout of R15,000 and represents a
classic example of a survivalist enterprise transitioning into a more formalised micro-
enterprise (Cant, 2018, p. 141).
The business operates as a convenience store, stocking a range of essential fast-
moving consumer goods (FMCGs) including bread, milk, sugar, cooking oil, maize meal,
soft drinks, sweets, cigarettes, and basic toiletries. The product range is deliberately
limited to high-turnover items that cater to the immediate daily needs of the surrounding
community. In addition to groceries, the business offers airtime and electricity vouchers,
which have become increasingly important revenue streams in the township economy
(Study Guide, Learning Unit 6, p. 82).
Mokgethi's General Dealer employs two part-time staff members from the local
community, reflecting the characteristic nature of township SMMEs where employment
creation is a significant contribution to local economic development (McGaffin, Napier &
Karuri-Sebina, 2015, p. 140). The business operates six days a week, from 7:00 AM to
7:00 PM, with extended hours on weekends to accommodate the shopping patterns of
the community.
The target market consists primarily of low-to-middle-income residents of the
surrounding Soweto community, many of whom rely on social grants or informal
employment for their income. According to Statistics South Africa (2016), the majority of
South Africa's low-income consumers are concentrated in townships, and these
3
1. Introduction ......................................................................... 1
2. Background of Mokgethi's General Dealer ...................... 2
2.1 Business Background ........................................................ 2
2.2 Products and Services ....................................................... 3
2.3 Challenges Faced by the Business .................................... 4
3. Technological Progress in Africa ..................................... 5
3.1 Technology in Africa ........................................................... 5
3.2 Use of Technology by Mokgethi's General Dealer ............. 7
3.3 Benefits of Technology to the Business ............................. 9
4. Population Structure and Marketing ................................ 10
4.1 Population Structure in Africa ............................................ 10
4.2 Youth Population ............................................................... 11
4.3 Urbanisation ...................................................................... 12
4.4 Culture and Income Levels ................................................ 13
4.5 Impact on Mokgethi's General Dealer ................................ 14
5. Growth of Mobile and Internet Access ............................ 15
5.1 Growth of Mobile Phones and Internet .............................. 15
5.2 Marketing Through Social Media ....................................... 17
5.3 Mobile Payments ............................................................... 18
5.4 Online Ordering and Customer Service ............................. 19
5.5 Digital Advertising .............................................................. 20
6. Conclusion .......................................................................... 22
7. References ........................................................................... 24
8. Appendix .............................................................................. 25
1
,1 INTRODUCTION
Africa is home to more than 1.2 billion people. Its economy is growing and changing,
which creates both chances and problems for businesses (Makhitha, 2018, p. 3). To
understand marketing in Africa, it is important to look at the different regions, the
people, their cultures, and the growth of technology. These factors affect what people
buy and how businesses work.
This assignment focuses on a small business in my area in South Africa. The business
chosen is Mokgethi's General Dealer, a spaza shop in Soweto, Gauteng. This business
will be used to explain and apply the ideas about marketing in Africa from the study
material. The assignment looks at the background of the business and how technology,
population changes, mobile phones, and internet access can affect the business.
The assignment has four main questions. The first question gives the background of the
chosen SMME. The second question looks at the growth of technology in Africa and
how the business can use it. The third question explains how the population affects
marketing and how this can affect the business's marketing plans. The last question
looks at the growth of mobile phones and internet access and explains how the
business can use these changes to improve its marketing.
2
, 2 BACKGROUND OF THE BUSINESS
Mokgethi's General Dealer is a micro-enterprise operating from a converted shipping
container in the heart of Soweto, one of South Africa's largest and most historically
significant townships. Established in 2018 by Mrs. Mokgethi, a former domestic worker,
the business was started with her retirement payout of R15,000 and represents a
classic example of a survivalist enterprise transitioning into a more formalised micro-
enterprise (Cant, 2018, p. 141).
The business operates as a convenience store, stocking a range of essential fast-
moving consumer goods (FMCGs) including bread, milk, sugar, cooking oil, maize meal,
soft drinks, sweets, cigarettes, and basic toiletries. The product range is deliberately
limited to high-turnover items that cater to the immediate daily needs of the surrounding
community. In addition to groceries, the business offers airtime and electricity vouchers,
which have become increasingly important revenue streams in the township economy
(Study Guide, Learning Unit 6, p. 82).
Mokgethi's General Dealer employs two part-time staff members from the local
community, reflecting the characteristic nature of township SMMEs where employment
creation is a significant contribution to local economic development (McGaffin, Napier &
Karuri-Sebina, 2015, p. 140). The business operates six days a week, from 7:00 AM to
7:00 PM, with extended hours on weekends to accommodate the shopping patterns of
the community.
The target market consists primarily of low-to-middle-income residents of the
surrounding Soweto community, many of whom rely on social grants or informal
employment for their income. According to Statistics South Africa (2016), the majority of
South Africa's low-income consumers are concentrated in townships, and these
3
