Exploring the marketing communications and pricing strategies of grocery food retailers in shopping malls of Tembisa, South Africa

Abstract

This study explored the marketing communication and pricing strategies used by grocery food retailers in shopping malls of Tembisa Township in Gauteng province, South Africa. A qualitative research design was adopted, and semi-structured interviews with marketing personnel, along with direct observations, were conducted to explore the dynamics of retail operations in a highly competitive township environment and to validate the information gathered. Complex adaptive systems theory was applied to gain insight into the dynamic and interconnected nature of grocery food retailing in Tembisa. The findings indicate that retailers use a broad spectrum of marketing mix elements – product, place, promotion and price – with promotional activities and price emerging as the central focus. Promotions are delivered through a combination of traditional and digital channels, including local newspapers, radio, television, in-store displays, social media (particularly WhatsApp groups) and loyalty applications. Promotional efforts are not limited to media exposure, extending to in-store activations and personalised customer engagement. Product bundling and combo offers are widely used, often structured around consumer purchasing behaviour and household needs. These bundles are strategically timed to coincide with salary pay dates to enhance affordability, to encourage bulk purchases and to ensure steady store traffic during peak shopping periods. Pricing strategies are equally diverse and integral to competitive positioning. Retailers use psychological pricing tactics, such as charm pricing (e.g., R9,99), to create a perception of affordability, alongside bundle pricing strategies that offer value-driven combinations at discounted rates. Promotional pricing through discounts, limited-time offers, and loyalty-based rewards is leveraged to stimulate demand, to encourage repeat purchases and to strengthen customer loyalty. These strategies not only address the price sensitivity of township consumers but also reinforce customer perceptions of value-for-money in an environment characterised by constrained disposable income. Despite these innovative approaches, retailers face persistent challenges. Supplier-driven pricing pressures, limited bargaining power and rising operational costs constrain profit margins, while the dense concentration of nearby retail outlets intensifies competition. Overall, the study highlights the critical role of integrated marketing communication and pricing strategies in sustaining competitiveness and driving long-term growth in township retail markets. By combining traditional, digital and psychological approaches, grocery retailers in Tembisa can attract, retain and engage consumers in a challenging yet opportunity-rich marketplace. The study offers recommendations to stakeholders in grocery food retailing and future research directions.