Exploration into the Rise of Mobile Penetration in a Developing e-Commerce Market and its Impact on a South African Company

Abstract

Mobile penetration and purchasing has proven to be a growing trend in South Africa and one that is fast becoming the most popular and preferred method of accessing and browsing the internet, and making online purchases. This study aimed to identify the depth of mobile penetration in South Africa and more specifically, to a particular online company in South Africa. Company X took the country by storm and grew exponentially within six years. While the growth was welcomed and conventional shopping challenged with the advent of an online store, the company lacked statistical knowledge to guide its growth and no conclusive research was available to assist with its strategy review. This rendered the study necessary as competitors were emerging and the Company X needed to maintain its position in the market. Results from the study show some consumers are still uncomfortable and have security issues with purchasing online. While consumers understand the basic requirements for purchasing online, some are unsure when it comes to recent technological advances including applications and mobile websites, but become less fastidious when it comes to touching a product before making a purchase. The study documented areas for improvement to the Company X’s marketing plan by enhancing its social media strategy. Social media engagement proved to be of great significance in building brand rapport and increasing mobile penetration and purchasing. The main drivers for mobile penetration and purchasing were recognised which include convenience and ease of access to the brand. The study provided valuable information and data for the management team of the company to review, and will greatly serve in assisting with the enhancement of its new mobile marketing strategy.