Question 1:
Read the following scenarios and answer Questions 1.1 and 1.2. that follow.
| Scenario 1 | Scenario 2 |
| Three Brothers, a shopping complex amongst several towns, offers a vibrant array of shops catering to the needs of nearby communities. On a sunny afternoon, the Smith family, a group of four enthusiastic shoppers, visited Three Brothers for their weekly shopping trip. Laden, with bags and laughter, returned to the parking lot only to find their car missing.
Panic gripped them as they realised their car had been stolen. They hurriedly sought help from the complex manager, hoping for a solution. To their dismay, they discovered they weren’t the only ones facing trouble. Other customers shared stories of being robbed and scammed within the complex. As dusk approached, the lively atmosphere of Three Brothers gave way to a sombre mood filled with fear and uncertainty. The Smith family’s outing turned into a nightmare, leaving a lingering sense of unease. |
Jewel, a 75-year-old man with a knee problem, made a quick trip to the grocery store to buy bread. Not a regular shopper, he wasn’t accustomed to visiting during peak hours. As he arrived, he noticed the long queues extending back into the aisles, filled with people bustling about with their carts. Jewel sighed, knowing standing for a long time would be tough on his knees, but he needed his bread for the evening meal. Frustrated by the crowded checkout area, Jewel paused, contemplating whether it was worth waiting or if he should return later. The bustling atmosphere around him added to his dilemma, making him wish he had chosen a quieter time to shop. Jewel’s mind wandered as he pondered, thinking he could ask a neighbour to pick up the
bread for him next. |
| Scenario 3 | Scenario 4 |
| Thabo and Pinky were regulars at the local coffee shop, where they enjoyed catching up over their favourite brews. However, they couldn’t help but notice the lack of warmth and social vibe in the shop’s layout. The tables were spaced too far apart, making it challenging to engage in conversations with other patrons. Despite the delicious coffee, Thabo and Pinky longed for a more communal atmosphere to connect with fellow
coffee enthusiasts. Their disappointment |
A dedicated sports enthusiast, Peterson eagerly joined the local gym upon hearing about its new fitness class. Excited to enhance his fitness journey, he opted for a gym product entailing a 24-month subscription. However, his enthusiasm waned when he discovered that the subscription couldn’t be cancelled until six months had passed. Despite this, Peterson began his workout routine at the
gym. As he engaged in exercises, he |
| grew as they observed others quietly sipping their drinks, immersed in their worlds. They yearned for a change that would transform the coffee shop into a cosy hub bustling with lively interactions and shared experiences. Determined to see a positive shift, Thabo and Pinky voiced their concerns to the management, hoping to spark a transformation that would breathe new life
into their beloved coffee spot. |
noticed the gym’s limited equipment and overcrowded environment, especially on busy days. Frustratingly, he often found himself unable to use specific equipment due to high demand from other gym- goers. Feeling discouraged by the inconsistent equipment availability, Peterson contemplates discontinuing his gym visits, conflicted by his inability to
access essential workout tools. |
Identify the customer’s hierarchy of needs that matches scenario 1, scenario 2, scenario 3, and scenario 4. Provide reasons for your answers.
(4 x 3 = 12 marks)
Based on the answers provided in Question 1.1. recommend solutions that will ensure the customer hierarchy of needs is met for scenario 1, scenario 2, scenario 3 and scenario 4. (4 x 2 = 8 marks)
Read the article below and answer Question 1.3.
Checkers Sixty60 grows sales by 63%
On Tuesday, Shoprite, South Africa’s biggest supermarket group, reported a nearly 14% jump in its half-year sales, supported by a record Black Friday and festive season as cash-strapped shoppers and upmarket consumers went after food deals. Its market-leading on-demand online shopping platform, Sixty60, showed robust growth, with sales jumping by 63.1% year on year, it said. It’s the first reporting period from Shoprite to include Sixty60’s new Amazon Prime Time subscription service, Checkers Xtra Savings Plus, which offers free grocery deliveries for orders over R350 and additional in-store discounts for R99/month.
Shoprite, with more than 2 900 stores across Africa, said group sales for the six months ended 31 December rose to R121.1 billion. Sales in the company’s second quarter, including November and Christmas, rose 14.6%. Cash-strapped shoppers, hit by high interest rates and inflation, spend less on discretionary items like clothes and shoes and more on food and essentials. “Sustained high level of execution and continued customer momentum together with record Black Friday and festive season trade has extended the period of uninterrupted market share gains achieved by our core South African supermarket brands to 58 months,” the retailer said. The group’s core business, Supermarkets South Africa, which contributes about 80.5% to the top line, witnessed a 14.6% jump in sales, benefiting from the acquisition of 94 stores from Walmart-owned Walmart. Like-for-like sales climbed 6.3%.
Source: Ndludla, N. (2024). Checkers Sixty60 grows sales by 63%. Available from: https://techcentral.co.za/checkers-sixty60-grows-sales-by-63/238738/
Use your own words to distinguish between tangible and intangible products the Shoprite group offers. Support your answers with a relevant picture relevant to tangible and intangible products.
( [2 marks tangible +2 marks intangible]+ [2×2 pictures]) = 8 marks)
Question 2 [34 Marks]
Read the following scenario in order to answer Questions 2.1, 2.2, 2.3, 3.1, 4.1 and 4.2.
Chicken Grill: A Delicious Journey to Success
A passionate entrepreneur, James launched Chicken Grill as a fresh addition to the fast-food scene. With a focus on offering a diverse range of chicken dishes, Chicken Grill entered the market as a newcomer, aiming to compete with established giants like KFC, Nando’s, Hungry Lion, and Pedro’s. The menu boasted a variety of chicken options, from crispy fried to succulent grilled, catering to different tastes. James, driven by his vision, embarked on the journey of establishing Chicken Grill’s presence in the competitive industry. Recognising the challenges ahead, he remained determined to make a mark with his new venture. With each passing day, James and his team worked diligently to introduce Chicken Grill to customers and create a buzz around the brand. As a fledgling business, Chicken Grill faced hurdles but remained committed to providing delicious chicken offerings to the market. Through perseverance and dedication, James aimed to lay a strong foundation for Chicken Grill’s future success
List ANY three entry barriers that will affect Chicken Grill’s edge in competing with established fast-food giants. (3 x 2 = 6 marks)
The growth of Chicken Grill can be influenced either negatively or positively by external environments. Using the PESTEL analysis and in tabular format, compare the negative and positive impacts of the external environment that might influence the growth of Chicken Grill.
([6 x 2 positives] + [6 x 2 negatives]) = 24 marks)
Briefly explain two examples of economic responsibilities that Chicken Grill can do for the community. (2 x 2 = 4 marks)
Question 3 [20 Marks]
Assume you work for Chicken Grill as a marketing intern. Since Chicken Grill is an emerging business, the owner asks you to create a presentation on the restaurant’s marketing mix. Explain Chicken Grill’s marketing mix using the four
(4) P’s of the marketing mix. (4 x 2 = 8 marks)
Read the following scenario and answer Question 3.2.
In a strategic marketing move, the Castle Light brand approaches Chicken Grill with a sponsorship proposal. Recognising the potential benefits, the owner of Chicken Grill eagerly accepts the offer to collaborate. Together, they devise a promotional meal: customers can enjoy a delicious chicken combo meal paired with a refreshing Castle Light beverage. This enticing offer enhances the dining experience at Chicken Grill and boosts brand visibility for both parties.
Fictitious scenario**
Design a one (1) page poster to promote the Chicken Grill meal in collaboration with the Castle Light brand. Refer to the following guidelines to answer the question.
Question 4 [18 Marks]
Jack, the owner of Chicken Grill, wants to compete with established giant restaurants such as KFC, Nando’s, Hungry Lion, and Pedro’s. Jack needs to define his goals clearly to survive the competition of the established giant restaurants.
Outline the consequences of Jack not following the SMART Principles. Support your answer with practical examples that relate to the scenario. (5 x 3 = 15 marks)
Identify the stage in the industry life cycle that best depicts Chicken Grill. Provide a reason for your answer. ([1 mark identification] + (2 marks reason]=3 marks)
Answers to Above Questions on Marketing Management
Answer 1:
In order to identify the customer hierarchy of needs in the given scenarios, the best possible tool that can be applied is Maslow’s hierarchy of need. It has five levels of human motivation which can be classified as physiological, safety, social, esteem and self actualization. An analysis of scenario 1 indicates that it is based on the Smith family, and it is best categorised as a safety need in the hierarchy. This is mainly because the Smith family lost their car while they were shopping, and this moved their attention towards a sense of fear which is best identified as a safety factor.
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