MNM2615
Assignment 1
Due 2025
,Marketing in Africa
Question 1: Background of the Selected SME/SMME
Siyakhula Spaza Shop is a family-operated small business based in Katlehong,
Gauteng. Established in 2017 by Mr. and Mrs. Dlamini, the shop emerged as a
response to Mr. Dlamini’s retrenchment from a factory job. To sustain their household
income while addressing a local community need, the couple converted part of their
home into a retail outlet.
The shop sells a wide range of basic necessities including bread, maize meal, sugar,
cooking oil, cool drinks, airtime, and other household essentials. Its primary customer
base consists of low- to middle-income households who often prefer to buy smaller,
affordable package sizes rather than large bulk items. Siyakhula also draws in specific
groups such as school learners, pensioners, and daily commuters who appreciate the
shop’s convenient location, affordability, and extended trading hours.
The enterprise currently employs three people—the two owners plus one local
assistant—thereby creating limited but meaningful community employment. Over the
years, Siyakhula has established strong customer loyalty by:
providing informal credit facilities to reliable community members,
operating during extended hours to match customer needs, and
consistently stocking familiar and trusted local brands.
Despite external challenges such as rising wholesale prices and increased competition
from larger supermarkets and retail chains, the spaza shop remains resilient. Its
continued relevance is sustained by personalised service, deep cultural
understanding of its customers, and strong community ties.
Question 2: Demography
(a) Definition and Application of Demographic Segmentation
, Demographic segmentation refers to the process of dividing a market into groups
based on measurable population attributes such as age, gender, income, education,
family size, and stage of life (Kotler & Keller, 2016:145). This approach enables
businesses to tailor their products, services, and promotions to align with the specific
needs and purchasing power of each segment.
At Siyakhula Spaza Shop, demographic segmentation is central to its operations. The
shop carefully aligns its stock selection with the needs of different groups within the
community. For example:
School learners are offered inexpensive snacks, sweets, and cool drinks.
Elderly shoppers are catered for with smaller, cost-effective packages of staples
like sugar and maize meal.
Middle-income families are provided with larger, bulk items such as 12.5 kg bags
of maize meal or 5-litre bottles of cooking oil.
By responding to the demographic diversity of its community, Siyakhula has been able
to remain competitive and retain its relevance in a localised retail environment.
(b) Influence of Demographic Factors on Siyakhula Spaza Shop’s Marketing
1. Age:
o The shop serves customers ranging from schoolchildren to senior citizens.
o Younger customers typically purchase snacks, chips, and cold drinks,
reflecting their preference for convenience and instant consumption.
o Older customers are more focused on essential staples such as bread,
tea, and cooking oil.
o This diversity forces the shop to balance between stocking fast-moving
convenience goods and essential household items.
2. Gender:
Women—particularly mothers and caregivers—represent the largest share of
Siyakhula’s customer base, as they are usually responsible for household shopping. To
meet their needs, the shop prioritises stocking
Assignment 1
Due 2025
,Marketing in Africa
Question 1: Background of the Selected SME/SMME
Siyakhula Spaza Shop is a family-operated small business based in Katlehong,
Gauteng. Established in 2017 by Mr. and Mrs. Dlamini, the shop emerged as a
response to Mr. Dlamini’s retrenchment from a factory job. To sustain their household
income while addressing a local community need, the couple converted part of their
home into a retail outlet.
The shop sells a wide range of basic necessities including bread, maize meal, sugar,
cooking oil, cool drinks, airtime, and other household essentials. Its primary customer
base consists of low- to middle-income households who often prefer to buy smaller,
affordable package sizes rather than large bulk items. Siyakhula also draws in specific
groups such as school learners, pensioners, and daily commuters who appreciate the
shop’s convenient location, affordability, and extended trading hours.
The enterprise currently employs three people—the two owners plus one local
assistant—thereby creating limited but meaningful community employment. Over the
years, Siyakhula has established strong customer loyalty by:
providing informal credit facilities to reliable community members,
operating during extended hours to match customer needs, and
consistently stocking familiar and trusted local brands.
Despite external challenges such as rising wholesale prices and increased competition
from larger supermarkets and retail chains, the spaza shop remains resilient. Its
continued relevance is sustained by personalised service, deep cultural
understanding of its customers, and strong community ties.
Question 2: Demography
(a) Definition and Application of Demographic Segmentation
, Demographic segmentation refers to the process of dividing a market into groups
based on measurable population attributes such as age, gender, income, education,
family size, and stage of life (Kotler & Keller, 2016:145). This approach enables
businesses to tailor their products, services, and promotions to align with the specific
needs and purchasing power of each segment.
At Siyakhula Spaza Shop, demographic segmentation is central to its operations. The
shop carefully aligns its stock selection with the needs of different groups within the
community. For example:
School learners are offered inexpensive snacks, sweets, and cool drinks.
Elderly shoppers are catered for with smaller, cost-effective packages of staples
like sugar and maize meal.
Middle-income families are provided with larger, bulk items such as 12.5 kg bags
of maize meal or 5-litre bottles of cooking oil.
By responding to the demographic diversity of its community, Siyakhula has been able
to remain competitive and retain its relevance in a localised retail environment.
(b) Influence of Demographic Factors on Siyakhula Spaza Shop’s Marketing
1. Age:
o The shop serves customers ranging from schoolchildren to senior citizens.
o Younger customers typically purchase snacks, chips, and cold drinks,
reflecting their preference for convenience and instant consumption.
o Older customers are more focused on essential staples such as bread,
tea, and cooking oil.
o This diversity forces the shop to balance between stocking fast-moving
convenience goods and essential household items.
2. Gender:
Women—particularly mothers and caregivers—represent the largest share of
Siyakhula’s customer base, as they are usually responsible for household shopping. To
meet their needs, the shop prioritises stocking
