ARCHIVED PRESS RELEASES

WHY INFORMAL OUTLETS ARE MASS MEDIA ENVIRONMENT SPACE FOR TALKING TO SHOPPERS IN STORE?

Informal trade has exceptionally significant contribution to South Africa’s GTC (Grocery, Toiletry and Confectionery) turnover. With 31% (R47 billion) of South Africa’s GTC turnover coming from urban and rural informal independents (AC Nielsen), imagine the possibility of having a large chunk of these informal trade turnover in your business’ bank account. This possibility could become a reality if you take a step towards increasing your brand awareness and distribution in this informal retail space.

Shoppers in rural and township areas also need necessities for their daily living. Regardless of the marketers’ perception that these shoppers can hardly afford much, shoppers who frequent informal retail outlets still need to eat and quality of consumption is more so important to this audience.

According to SBR:

  • Shoppers who frequent General Dealers spend an average of R1, 053.00 per month on food and groceries – of that, 29% is spent in General Dealer outlets.
  • Shoppers who frequent Spaza Shops spend an average of R905 per month on food and groceries – of that, 27% is spent in Spaza Shops.

So, what message do we get from these instore facts?

Despite the marketers’ assumptions that township and rural areas shoppers do not spent in masses, these shoppers in fact do. These shoppers, spend a significant amount of their household income on food and groceries in these informal retail outlets.

Imagine the effect on your brand’s sales if you took advantage of these shoppers who are spending almost on daily basis and:

  • Made your brand known to them by using instore advertising in this informal retail environment?
  • Increased the distribution of your brand in this environment?
  • Drove visibility of your brands so that your brands are included in their top-up shopping basket?
  • Provided them with similar range to choose from by availing your brand which they already by in top-end retail outlets in these informal retail outlets.

With shoppers visiting a Spaza Shop on average 18 times a month and a General Dealer on average 14 times a month, your advertising message will absolutely catch the eyes of these shoppers a lot more times than in top-end retail stores. AC Nielsen research further points out that there is 24.3% increase in the average number of times a shopper visits an independent retail outlet (Q1 2009, AC Nielsen).

Do these shoppers know what brands they intend buying before they enter these informal retail outlets? No, 88% of these shoppers only know the category they intend buying. The decision as to which brands to buy are made instore.

This clearly illustrates the impulsiveness of these shoppers when they are in the informal retail environment. So, reminding these shoppers of what brands they should include in their shopping basket when they are in the store by utilizing instore media can only result in impressive sales.

What’s more – the value of instore media drives an influential role in the decisions made instore since according to SBR:

  • 77% of shoppers who frequent informal stores think that advertising in a store is a clever way to bring new products or specials to the attention.
  • 75% of shoppers who frequent informal outlets notice posters instore.
  • 62% of shoppers who visit general dealers notice banners on-shelf when instore.

So, shoppers frequenting informal outlets can be directed to your brands; switched to your brands and even introduced to your new products’ variants easily by utilizing various available instore media from shelf-media to couponing media to floor media.

It is a sure win - your instore advertising can never go unseen by shoppers frequenting these outlets.

To talk to shoppers frequenting informal stores… talk to Primedia Instore.