Marketing to the South African Informal Sector through Distributors
Date
2013-10-22
Authors
Mudau, Boy Tshimangadzo
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Abstract
The use of distributors as a channel in the marketing of fast moving consumer
goods into the informal sector is a phenomenon that is of interest to
manufacturers, distributors themselves, retailers wholesalers and Spaza shop
owners.
Drawings from international and local studies, the literature focused on the
marketing mix elements (4 P’s - Price, Place, Product and Physical evidence),
and also on the key success factors of marketing to the informal sector through
the use of distributors.
Qualitative research was conducted using semi–structured interviews with 30
respondents who are all involved in marketing fast moving consumer goods
(FMCG) to the informal sector through distributor operations. The data from
these interviews was analysed to reveal key themes. The key findings of this
research are as follows:
· In the case of the marketing mix elements, more emphasis was found to
be put on price and product than on place and promotion.The new insight
was that good personal relationships are equally important.
· For the key success factors, new insights included customer and shopper
research, clustering and segmentation of stores, developing demand
creation programmes, agreeing joint business plans, developing a go-tomarket
strategy and a long term investmenst strategy.
A nine step model is proposed to guide marketers in implementing key success
factors when utilising distributor operations serving the informal sector.
Description
MM (P&DM) thesis
Keywords
Marketing, Informal sector