TABLE OF CONTENT
1. Introduction .................................................................................... Page 1
2. Section 1: Background of SME/SMME .......................................... Page 2
3. Section 2: Assignment 01 Corrections and Suggestions ............... Page 4
4. Section 3: Theoretical Discussion and Practical Application ......... Page 5
4.1 The Informal Economy from a South African Perspective ........... Page 5
4.1.1 Theoretical Discussion .............................................................. Page 5
4.1.2 Practical Application ................................................................. Page 7
4.2 Role of SMMEs in the Township Economy ...................................Page 7
4.2.1 Theoretical Discussion .............................................................. Page 7
4.2.2 Practical Application ................................................................. Page 9
4.3 Product Application from a South African Perspective ................ Page 9
4.3.1 Theoretical Discussion ............................................................. Page 9
4.3.2 Practical Application ................................................................. Page 11
4.4 Comparison with Bathu Case Study ........................................... Page 12
4.4.1 Overview of Bathu .................................................................... Page 12
4.4.2 Comparison of Products ........................................................... Page 12
5. Section 4: Recommendations ........................................................ Page 14
6. Conclusion ..................................................................................... Page 16
7. References .................................................................................... Page 17
1
,1. INTRODUCTION
My portfolio focuses on Lerato’s Fresh Produce & Spaza Shop, a small business
operating in a township in Gauteng. It applies the marketing concepts learned in the
Marketing in Africa (MNM2615) module to the business. It discusses the informal
economy, the role of SMMEs in township economies, product application, and the Bathu
case study. It also includes corrections from Assignment 01 and recommendations to
help the business improve its marketing and grow.
2
, 2. SECTION 1: BACKGROUND OF SME/SMME
Lerato's Fresh Produce & Spaza Shop is a small business that operates in Soshanguve,
a large township in the northern part of Pretoria, Gauteng. The business was started in
2019 by Ms Lerato Mokoena, who is the sole owner and manager of the business. The
business operates from a small structure that is attached to Ms Mokoena's home, which
is a common practice for spaza shops in South African townships (Cant, 2018).
The business serves the local community of Soshanguve by providing everyday
products that residents need. The main products sold by the business include fresh
produce such as tomatoes, onions, potatoes, spinach, and cabbage. These are sourced
from the local fresh produce market in Tshwane. The business also sells staple
groceries including maize meal, rice, cooking oil, sugar, tea, and bread. In addition, the
business stocks snacks and beverages such as chips, sweets, cold drinks, and water.
Household items like washing powder, soap, candles, and matches are also available.
The business also offers a small selection of services, including selling prepaid airtime
and electricity vouchers, which are important services for community members who may
not have access to formal banking services (Cant, 2018).
The business is situated in a busy part of Soshanguve, close to a main road and a taxi
rank. This location was chosen deliberately because it allows the business to attract
customers who are commuting to and from work (Cant, 2018). The business is open
from 06:00 to 20:00 on weekdays and from 07:00 to 18:00 on weekends.
3
1. Introduction .................................................................................... Page 1
2. Section 1: Background of SME/SMME .......................................... Page 2
3. Section 2: Assignment 01 Corrections and Suggestions ............... Page 4
4. Section 3: Theoretical Discussion and Practical Application ......... Page 5
4.1 The Informal Economy from a South African Perspective ........... Page 5
4.1.1 Theoretical Discussion .............................................................. Page 5
4.1.2 Practical Application ................................................................. Page 7
4.2 Role of SMMEs in the Township Economy ...................................Page 7
4.2.1 Theoretical Discussion .............................................................. Page 7
4.2.2 Practical Application ................................................................. Page 9
4.3 Product Application from a South African Perspective ................ Page 9
4.3.1 Theoretical Discussion ............................................................. Page 9
4.3.2 Practical Application ................................................................. Page 11
4.4 Comparison with Bathu Case Study ........................................... Page 12
4.4.1 Overview of Bathu .................................................................... Page 12
4.4.2 Comparison of Products ........................................................... Page 12
5. Section 4: Recommendations ........................................................ Page 14
6. Conclusion ..................................................................................... Page 16
7. References .................................................................................... Page 17
1
,1. INTRODUCTION
My portfolio focuses on Lerato’s Fresh Produce & Spaza Shop, a small business
operating in a township in Gauteng. It applies the marketing concepts learned in the
Marketing in Africa (MNM2615) module to the business. It discusses the informal
economy, the role of SMMEs in township economies, product application, and the Bathu
case study. It also includes corrections from Assignment 01 and recommendations to
help the business improve its marketing and grow.
2
, 2. SECTION 1: BACKGROUND OF SME/SMME
Lerato's Fresh Produce & Spaza Shop is a small business that operates in Soshanguve,
a large township in the northern part of Pretoria, Gauteng. The business was started in
2019 by Ms Lerato Mokoena, who is the sole owner and manager of the business. The
business operates from a small structure that is attached to Ms Mokoena's home, which
is a common practice for spaza shops in South African townships (Cant, 2018).
The business serves the local community of Soshanguve by providing everyday
products that residents need. The main products sold by the business include fresh
produce such as tomatoes, onions, potatoes, spinach, and cabbage. These are sourced
from the local fresh produce market in Tshwane. The business also sells staple
groceries including maize meal, rice, cooking oil, sugar, tea, and bread. In addition, the
business stocks snacks and beverages such as chips, sweets, cold drinks, and water.
Household items like washing powder, soap, candles, and matches are also available.
The business also offers a small selection of services, including selling prepaid airtime
and electricity vouchers, which are important services for community members who may
not have access to formal banking services (Cant, 2018).
The business is situated in a busy part of Soshanguve, close to a main road and a taxi
rank. This location was chosen deliberately because it allows the business to attract
customers who are commuting to and from work (Cant, 2018). The business is open
from 06:00 to 20:00 on weekdays and from 07:00 to 18:00 on weekends.
3
