Advertise with fastmoving.co.za
 
 

A stokvel can be started by anyone from the community but members are usually carefully selected by invitation and based on honesty, openness, and trust.
A stokvel can be started by anyone from the community but members are usually carefully selected by invitation and based on honesty, openness, and trust.

Understanding and engaging with the stokvel market

BRAND ACTIVITY

By Miguel Correia, marketing manager of established brand activation, entertainment and event company, the Zinto Marketing Group - May 18th, 15:05

The term stokvel originated from local stock fairs in the Eastern Cape in which five to 50 members of colleagues, family, and friends pooled resources to trade livestock with English settlers.

Today, the stokvel acts as a saving society where money is collectively shared in agreed amounts among members belonging to the same shopping basket. A weekly, bi-weekly or monthly contribution makes up a joint investment ‘kitty’ where savings are generated for the benefit of the group. The money is used to pay for everything from burials and celebrations to school fees and groceries.

This method has a very effective way of ensuring that low-income consumers are getting bang for their buck and that their hard-earned cash is buying them quality and quantity at the best possible price.

Understanding stokvels
A stokvel can be started by anyone from the community but members are usually carefully selected by invitation and based on honesty, openness, and trust. The underlying thread is conviction that all selected members will reinvest their monies once they have received their payout. The accumulated money/savings are drawn by members in rotation or in time of need.

Stokvels can also act as an informal 'banking industry' where members deposit money into a savings brokerage while still being able to take out loans at an affordable interest rate.

Reaching the stokvel market
The stokvel market represents a place in which all purchases are made under great scrutiny by opinion leaders who have the buying power and influence to sway the purchasing choices of a larger group of consumers. To get opinion leaders to buy in, marketers need to use (create if necessary) communication channels that respect and incorporate traditional South African thinking and values, reaching consumers on a more personal level.

A method that has proven to be very effective to this segment of the market is experiential marketing and/or brand activation; the consumer’s real experience of a brand, product or service which drives sales and increases brand image and awareness. Gaining a large share of voice through consumer-based outlets in targeted communities can help create a sense that the brand is at the forefront. This is a valuable tool for building brand loyalty and can persuade customers to follow through on an intended purchase.

Stokvel Open Days or Store Parties at wholesalers take place nationwide from September to December each year and are effective ways of reaching thousands of stokvel members. These days are set aside to inform, educate and entertain members in a fun and easy-going manner; sampling opportunities are vast as well as competitions and giveaways which create ‘talkability’ and hype about brands and the companies that manufacture them.

For more information about main market activations visit www.zinto.co.za


 

Related Activity

Woolworths and MySchool launch annual Teachers Day competition17
AUG
Woolworths and MySchool launch annual Teachers Day competition
Not all superheroes wear capes. There are some, in their everyday clothes, changing young South Africans’ lives for the better as they work tirelessly in our communities and classrooms across the country.
MultiChoice wins big at first CXA Awards16
AUG
MultiChoice wins big at first CXA Awards
The first-ever inaugural CXA Awards hosted by Kinetic took place on the 15th August at the Century City Conference Centre in Cape Town. Hosted by SA Comic’s Award Winner, Schalk Bezuidenhout and actress, Leeanda Reddy the prestigious gala dinner was full of fun, bringing together the top innovators in the customer experience industry.
SA's Willow Creek Olive Oil triumphs at two global championships15
AUG
SA's Willow Creek Olive Oil triumphs at two global championships
Willow Creek Estate extra virgin olive oil has again been highlighted for its superior quality following its recent assessment by expert judges in no less than two prestigious international challenges.
Castle Lite Keeps It Cool with Rick Ross in new TV Ad 14
AUG
Castle Lite Keeps It Cool with Rick Ross in new TV Ad
From the brand that is synonymous with unlocking the extraordinary, Castle Lite has done it again with a new TV ad that seeks to bring fresh consistency to its Extra Cold proposition.

Try these recipes

Greek Island Pie14
AUG
Greek Island Pie
Make use of traditional Greek culinary ingredients in this quick mix and bake that will delight your family as a light main course.
Amarula and Macadamia Fudge14
AUG
Amarula and Macadamia Fudge
A local melt-in-your-mouth treat.
Beef Tagliata07
AUG
Beef Tagliata
Juicy rib-eye steak, thinly sliced and served with a rich red wine reduction, infused with rosemary.
Orange Berry Muffins07
AUG
Orange Berry Muffins
These muffins are a welcome treat to compliment your breakfast, have as a snack or even for dessert.