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MNM4803 Assignment 1 (ANSWERS) 2025 - DISTINCTION GUARANTEED

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MNM4803 Assignment 1 2025
Unique Number:
Due date:16 May 2025
QUESTION 1

MARKETING INVESTMENT ANALYSIS: SOUTH AFRICAN RETAIL TRADE SECTOR
(2018–2022)

Oz-Inc, a leading Australian retail corporation, is considering expanding into South Africa’s
retail market. This report offers a strategic assessment based on the Statistics South Africa
Retail Trade Industry Report No. 62-01-02 (2022), specifically Table A, which details income
trends in various retail segments from 2012 to 2022. The key focus is on the R186,8 billion
increase in total retail income from 2018 to 2022 and identifying which sectors were
responsible for this growth. This analysis will guide Oz-Inc’s investment decision by
highlighting the most promising retail categories.



RETAIL SECTORS DRIVING GROWTH IN INCOME

The total retail income in South Africa rose from R977,2 billion in 2018 to R1 164,0 billion in
2022. However, this growth was not evenly spread across all retail types. Three main retail
segments contributed the most to the R186,8 billion increase.
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QUESTION 1

MARKETING INVESTMENT ANALYSIS: SOUTH AFRICAN RETAIL TRADE
SECTOR (2018–2022)

Oz-Inc, a leading Australian retail corporation, is considering expanding into South
Africa’s retail market. This report offers a strategic assessment based on the
Statistics South Africa Retail Trade Industry Report No. 62-01-02 (2022), specifically
Table A, which details income trends in various retail segments from 2012 to 2022.
The key focus is on the R186,8 billion increase in total retail income from 2018 to
2022 and identifying which sectors were responsible for this growth. This analysis
will guide Oz-Inc’s investment decision by highlighting the most promising retail
categories.



RETAIL SECTORS DRIVING GROWTH IN INCOME

The total retail income in South Africa rose from R977,2 billion in 2018 to R1 164,0
billion in 2022. However, this growth was not evenly spread across all retail types.
Three main retail segments contributed the most to the R186,8 billion increase.

1. Non-specialised Stores with Food, Beverages and Tobacco Predominating

This category experienced the most significant growth, increasing from R322,7 billion
in 2018 to R415,0 billion in 2022. The sector contributed R92,2 billion of the total
increase, representing nearly half of the overall growth. Despite a slight drop in its
percentage contribution (from 39,1% in 2015 to 35,5% in 2022), it remains the
largest income contributor in the retail sector. This continued dominance suggests
stable and growing demand for general grocery and convenience retail, especially in
urban and peri-urban areas.

2. Food, Beverages and Tobacco in Specialised Stores

This segment grew from R81,1 billion in 2018 to R107,4 billion in 2022, adding R26,2
billion in income. This growth highlights an increasing consumer preference for
specialised retail outlets offering focused product ranges, premium options, and
customer-oriented service. The increase in its share from 8,1% in 2012 to 9,2% in
$3.16
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