Savanna Harvest Supermarket — Target Market Analysis
Market research and competitor analysis indicate that consumers in the Polokwane market value affordability above all other factors, with price being the primary determinant of store choice for the majority of target customers. Product freshness, particularly in produce, meat, and bakery departments,…
Section 9 · Business Plan
Target Market Analysis
Market research and competitor analysis indicate that consumers in the Polokwane market value affordability above all other factors, with price being the primary determinant of store choice for the majority of target customers. Product freshness, particularly in produce, meat, and bakery departments,…
9.1 Customer Segmentation
| Segment | Profile | Estimated Share | Basket Size |
| Middle-Income Households | Families, dual-income, R8,000–R25,000/month | 45% | R500–R1,500 |
| Township Consumers | Individuals and families in surrounding townships | 30% | R100–R500 |
| Small Businesses | Restaurants, spaza shops, catering, informal traders | 15% | R1,000–R5,000 |
| Government Employees | Municipal and provincial government workers | 10% | R600–R2,000 |
9.2 Customer Needs and Pain Points
Market research and competitor analysis indicate that consumers in the Polokwane market value affordability above all other factors, with price being the primary determinant of store choice for the majority of target customers. Product freshness, particularly in produce, meat, and bakery departments, is the second most important consideration and a frequent source of dissatisfaction with existing options. Convenience of location, adequate parking, and efficient checkout processes are critical for weekly shoppers. Customers increasingly expect a pleasant, well-organised, and clean shopping environment, even at value-oriented price points. Strong demand for bulk purchasing options exists among small businesses and households managing tight budgets.
9.3 Market Sizing
The primary catchment area within a 5-kilometre radius of the proposed site encompasses approximately 200,000 residents. Assuming a conservative market penetration rate of 8–12% in Year 1, increasing to 15–18% by Year 3 as brand awareness and customer loyalty develop, the estimated addressable market supports revenue projections of R42 million in Year 1, growing to R65 million by Year 3. This represents a modest share of the total grocery spend within the catchment area, providing substantial headroom for growth.
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