Target consumer research at
South African taxi ranks 2015
Article: Sabine Frielinghaus and Rudolf Badenhorst
Potatoes SA is currently in the process of implementing
a marketing strategy with the aim to increase potato
consumption over time.
One of Potatoes SA’s major promotion initiatives took place
in the informal market, targeting both hawkers and end
consumers in various strategic locations in South Africa
from June to November 2014.
As Potatoes SA wants to ensure that their funds are
being invested cost-effectively, an instrument to track the
effectiveness and success of this initiative was required.
As part of the evaluation of the effectiveness of the Informal
Market Strategy – 2014, Potatoes SA decided to conduct
consumer market research and appointed MQ market
intelligence to conduct a quantitative study on the target
consumers’ usage and attitude towards potatoes.
The main objective is to establish the consumers’ usage and
attitude towards potatoes.
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CHIPS • Mei/Junie 2015
The secondary objectives of the study were aimed to:
• Establish where consumers buy potatoes.
• Establish the reason for the purchase outlet.
• Determine the frequency of potato purchasing.
• Determine the purchase quantity.
• Determine the perceived price of potatoes.
• Establish the type of meal that potatoes are being used
for.
The point of contact for the research was at Taxi ranks
where consumer shows about potatoes took place.
The information was gathered via Individual face-toface interviews. In total a 110 in-depth interviews were
conducted in Marabastad, Soshanguve, the Site C Taxi
Rank (Western Cape), Khayelitsha Taxi Rank, Randburg
Taxi Rank, Tembisa Taxi Rank and Mawikta Taxi Rank
(Gauteng).
Bemarking • Marketing
The demographic of the research sample can be broken down as follows:
Research sample
DEMOGRAPHICS
AVERAGE HOUSEHOLD INCOME
27
3
AVERAGE AGE GROUP
19
28
AVERAGE GENDER
13
34
30
66
3
38
40
Male
Female
16-24 years
25-34 years
35-49 years
50 years and over
R2,000 - R4,999
R5,000 - R9,999
R10,000 - R14,999
R15,000 and over
Refused to answer
Research results included:
Results
WHERE CONSUMERS BUY POTATOES
86
Street vendor / hawker
71
Formal retailer like Pick n Pay, Shoprite, Spar, Woolworths, Hypermarket, Checkers
25
Greengrocer (fruit and veg)
25
Informal market like spaza, local cafe, general dealer
10
Market
8
Farmer
5
Wholesalers like Makro, Metro, Trade Centre
4
Independent retail like Elite, Rhino, Boxer, Watloo, Checkout
CHIPS • May/June 2015
• Page 27
Results
WHERE CONSUMERS MAINLY BUY POTATOES
Street vendor, hawker
57
Formal retail like Pick n Pay, Shoprite, Spar, Woolworths, Hypermarket, Checkers
23
7
Informal market like spaza, local cafe, general dealer
7
Greengrocer (Fruit and veg)
3
Farmer
Wholesalers like Makro, Metro, Trade Centre
Market
Consumers buy potatoes mainly at
street vendor / hawkers.
Results
REASONS FOR PURCHASING OUTLET
49
Proximity to work/home
Cheap potatoes
37
Convenience
33
Fresher products
25
Value for money
22
Better quality potatoes
Availability of favourite brand
6
Broader range of products
6
Able to do all shopping in one place 4
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13
CHIPS • Mei/Junie 2015
Consumers mainly purchase
potatoes at a specific outlet because
it is close to work or home.
Bemarking • Marketing
Results
FREQUENCY OF PURCHASING
Daily (5 – 7 times a week) 0
26
2 – 4 times a week
31
Once a week
11
Every two weeks
29
Once a month
Less frequent than once a month 4
Over one third of consumers buy
potatoes only once a month or less.
Results
PURCHASE QUANTITY
Loose potatoes / Less than 1kg bag
36
8
1kg bag
2kg bag
3kg
6
4kg
5
5kg
Consumers mainly
buy loose potatoes.
3
8
7kg
17
10kg
16
CHIPS • May/June 2015
• Page 29
Results
NUMBER OF BAGS PURCHASED PER SIZE
50
38
10
78
1 bag
22
Loose potatoes (<1kg bag)
80
20
1kg bag
89
11
5kg bag
100
2kg bag
89
11
7kg bag
100
3kg bag
2 bags
3 bags
94
Other
4 bags
PERCEIVED PRICE OF POTATOES
R7.46
Loose potatoes (less than 1kg bag)
R12.00
1kg bag
n/a (low sample size)
2kg bag
n/a (low sample size)
3kg bag
n/a (low sample size)
4kg bag
R27.43
R34.67
R46.85
CHIPS • Mei/Junie 2015
5kg bag
7kg bag
10kg bag
6
10kg bag
Most people buy only one bag of potatoes at a time,
regardless of the size. However, with the larger bag
sizes (4-10kg), some consumers buy more than one
bag at a time.
Results
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4kg bag
Consumers perceive that buying
potatoes in bulk is much cheaper
(R12/kg for a small bag and
R4.69/kg for a large bag).
Bemarking • Marketing
Results
PRICE PERCEPTION
Too expensive
2
23
Quite expensive
54
Value for money
21
Cheap
Potatoes are perceived by 54% of the
respondents as good value for money.
Only 2% said they were too expensive.
Results
HOW CONSUMERS EAT POTATOES
80
In a stew with other food
70
Potato salad
68
Mashed potatoes
55
Fried chips
41
Roasted potatoes
27
Baked chips
7
Microwaved potatoes
Jacket potatoes
4
Baked potatoes with filling 4
80% of consumers eat potatoes in
a stew. Potato salad is also very
popular. Baked potatoes came in at
only 3-4%.
Baked potatoes without filling3
CHIPS • May/June 2015
• Page 31
Results
MAIN USAGE OF POTATOES
39
In a stew with other food
24
Potato salad
18
Fried chips
Mashed potatoes
Microwaved potatoes
Roasted potatoes
13
3
2
Jacket potatoes
Consumers mainly use potatoes in
stews with other food.
Summary
KEY STRATEGIC INDICATORS
1. Purchasing outlet
57% of consumers mainly buy
potatoes at hawkers / street
vendors
2. Reason for choice of purchasing
outlet
Consumers buy potatoes at a specific
venue because:
49% It is close to work / home
37% The potatoes are cheap
33% The venue is convenient
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CHIPS • Mei/Junie 2015
3. Frequency of purchasing
26% 2-4 times per week
33% Once a month or less
Bemarking • Marketing
Summary
KEY STRATEGIC INDICATORS (continued)
5. Price perception
4. Purchase quantity
36% of consumers mainly buy loose
potatoes
6. Main usage of potatoes
54% Value for money
39% In a stew with other food
23% Quite expensive
24% Potato salad
21% Cheap
18% Fried chips
Comparison of target consumer markets
Key strategic indicator
Taxi rank target
consumer market
LSM 3-6
consumer market*
Purchasing outlet
Hawkers
Formal retail
57%
27%
21%
43%
Reason for purchasing
outlet
It is close to work/home
The potatoes are cheap
The venue is convenient
49%
37%
33%
32%
16%
25%
Frequency of purchasing
2-4 times per week
Once a month or less
26%
33%
7%
48%
* Source: MQ Market Intelligence, Consumer Usage and Attitude Study on Potatoes, 2014, Research results 3.1
CHIPS • May/June 2015
• Page 33
Comparison of target consumer markets
Measure
Taxi rank target
consumer market
LSM 3-6
consumer market*
Purchase quantity
Loose potatoes
10 kg bag
36%
16%
13%
35%
Price perception
Value for money
Quite expensive
Cheap
54%
23%
21%
52%
25%
16%
Main usage of potatoes
In a stew with other food
Potato salad
Fried chips
Mashed potatoes
39%
24%
18%
13%
28%
13%
23%
22%
* Source: MQ Market Intelligence, Consumer Usage and Attitude Study on Potatoes, 2014, Research results 3.1
The strategic recommendations derived from the study
include:
• The hawker is a key strategic market segment and
Potatoes SA must continue with its Informal Market
Strategy.
• Purchase frequency within the sector is relatively low
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CHIPS • Mei/Junie 2015
•
compared to other consumer markets. Potatoes SA must
work on marketing activities aimed at increasing the
sector’s purchasing frequency at Point of Purchase (PoP).
This market buys potatoes mainly on the commute
between workplace and home and uses public
transport, Potatoes SA must therefore conduct consumer
activations at central public transport venues. C