Continuous assessment 1 2021: BBH11B1/MAR01B1/CMS01B

FACULTY/COLLEGE College of Business and Economics

SCHOOL School of Consumer Intelligence and
Information Systems
DEPARTMENT Marketing Management
CAMPUS(ES) APB, DFC, SWC
MODULE NAME Marketing 1A
MODULE CODE BBH11B1, MAR01B1 AND CMS01B
SEMESTER Second
ASSESSMENT OPPORTUNITY, Summative assessment assignment 1;
MONTH AND YEAR October 2021

ASSESSMENT DATE Final submission due 1 October 2021 at 08:00

ASSESSOR(S) Prof C De Meyer-Heydenrych, Mr. Mkhize; Ms Thusi, Mr
Mavunga and Ms Matubatuba
MODERATOR(S) Dr N Cunningham
TOTAL MARKS 70
NUMBER OF PAGES OF QUESTION PAPER (Including cover page) 12

INFORMATION/INSTRUCTIONS:
 This is an open-book take-home assessment.
 Answer all questions – marks will only be allocated for application and not for naming or
theory unless the question specifically requests you do to so.
 Read the questions carefully and answer only what is required.
 The answers should be provided on a Word Document, using the supplied template*
 Save the template as a word document with the following file name: your surname and
initials_module_assessment1 (e.g. PuleA_MMA11A1_assessment1) and upload it on
the assignment link on BlackBoard by 1 October at 8am.
 Follow the formatting instructions on the template (e.g. font size, spacing size)*
 *If you cannot access either Word and have to use your phone to complete this
assessment, you may answer the questions on paper and take photos which you can
upload on the “Assignment” link on BlackBoard. It is essential that you ensure the
photos are of good quality and everything can be clearly read.
 Review your theory thoroughly and research the case study thoroughly before
attempting to answer the questions.
 If you use additional sources to support your answers, use Harvard referencing and
ensure you also include a complete bibliography at the end of the document.
 Apply to the case study (The Sneaker Shack and the laundry / cleaning industry) – DO
NOT use examples of other industries in your answers, unless specifically instructed to

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do so. You may make reasonable assumptions based on what you have read about the
company and the industry.
 The general UJ policies, procedures and rules pertaining to online assessments and
plagiarism apply to this assessment. By completing and submitting this assessment you
agree to adhere to all UJ rules and policies pertaining to academic honesty and online
assessments.

Read the following case study, visit the website and listen to the podcast on The
Sneaker Shack and answer the questions that follow on the template provided. If you
do not have access to word you may answer on paper and upload photos of your
answers (ensure you upload all the photos).

The company that this assessment focuses on is “The Sneaker Shack”. This assessment
will focus purely on this company and the cleaning (laundry) industry.

Lolo Ndlovu – the owner of the brand “The Sneaker Shack” realized that South Africans were
also joining the “sneaker culture” and spending a lot of money on branded or well-known
sneakers. Because these sneakers cost so much money, people will rather pay to have
them cleaned properly and fixed than buy a new pair. According to Shelflife (2021) who
conducted an interview with Lolo Ndlovu, the company started in 2016 in the Maboneng area
of Johannesburg. This is where Lolo Ndlovu could find cheaper places to rent for his
business. The idea behind the Sneaker Shack is having a place where people can bring their
shoes and have them professionally cleaned. These could be anything from fashion
sneakers to sneakers people wear for running and going to the gym or being active as well
as any other type of shoe. Currently the Sneaker Shack has four locations in Johannesburg
(including Bryanston, Rosebank and Fourways), one in Cape Town with more being planned
in Durban and employs 16 people (Bizcommunity, 2020). They also have one location in
Claremont that is inside the Virgin Active gym to have a captured market of consumers.
Customers bring their shoes to one of The Sneaker Shack stores, select which cleaning
option they want and come collect their shoes within 48 hours. They are also offering a “pick-
up and delivery” option where you can book online for the collection, cleaning and delivery of
your shoes back to your house or office in 48 hours (The Sneaker Shack, 2021). Their most
popular service that they offer of the three is the deep cleaning to remove bacteria and
remove stains which costs between R160 and R180 per clean depending on the type of
shoe. The other two services they offer include the classic clean (R120 – R140) and the Red
Detail (R220 – R260) which is focused on cleaning and repairing all parts of the shoe. For
and extra R45 customers can get the shoes back with 24 hours and for an extra R70 they
can get the shoes cleaned and returned on the same day. The basic message that Lolo
Ndlovu wants to send out is that it is becoming more important to remain sustainable and
treat your current possessions well instead of spending money on new ones. And also,
“sneakers should NOT be cleaned in a washing machine”. (The Sneaker Shack, 2021). The
Sneaker Shack competes with all other laundry services who also clean shoes, the
difference though is that they use specialized cleaning and repair materials to ensure that
the shoe is treated properly. The Sneaker Shack cleans any type of shoe from the basic
running shoe or high heels, to those sneakers costing R30 000. Currently they clean up to
3 600 pairs of shoes each week (Thompson, 2021). In terms of advertising, The Sneaker
Shack has a presence on Instagram, Facebook, Twitter, YouTube and Linked-in. One of their
most famous customers is Black Coffee. They are also running a campaign called “Project

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Run” where they ask customers to donate their old sneakers, which are then cleaned and
repaired and donated to the youth so they can feel empowered through participating in sport
(The Sneaker Shack, 2021).

Case study is based on the following sources:

Bizcommunity. (2020). The Sneaker Shack laundry service expands to Cape Town. Bizcommunity, 3 Dec 2020.
Available from: https://www.bizcommunity.com/Article/196/188/211109.html. Accessed: 20 March 2021.

Shelflife. (2021). Biz-Life: The Sneaker Shack. Available from: https://www.shelflife.co.za/magazine/biz-life-the-

sneaker-shack. Accessed 20 March 2021.

The Sneaker Shack. (2021). The Sneaker Shack. Available from: https://www.thesneakershack.co.za/. Accessed
20 March 2021.

Thompson, A. (2021). Lolo Ndlovu’s sneaker laundries have re-invented shoe care in SA – here’s how he did it.
Business Insider, 01 Feb 2021. Available from: https://www.businessinsider.co.za/business/an-sa-sneaker-
laundry-is-now-cleaning-3600-pairs-of-shoes-a-week-from-rare-nikes-to-grimy-trail-running-shoes-2021-1.
Accessed 1 March 2021.

In addition to the basic information provided in the case study above, it is strongly suggested
that you read up more about The Sneaker Shack, visit its website and social media accounts
and listen to the podcast with the owner. To assist you with this, here are some links to some
websites that can provide some additional information:
1. https://www.businessinsider.co.za/business/an-sa-sneaker-laundry-is-now-cleaning-
3600-pairs-of-shoes-a-week-from-rare-nikes-to-grimy-trail-running-shoes-2021-1
2. https://www.thesneakershack.co.za/project-run
3. https://www.shelflife.co.za/magazine/biz-life-the-sneaker-shack
4. https://twitter.com/thesneakershack?lang=en
5. https://joburg.co.za/checking-sneaker-shack/
6. https://www.civitas.network/blog/0004-lolo-ndlovu-of-the-sneaker-shack
7. https://yourneighbourhood.co.za/my-business-neighbourhood-the-sneaker-shack/
8. https://www.bizcommunity.com/Article/196/188/211109.html
9. https://www.youtube.com/watch?v=4GtYC07IoGQ
10. https://www.youtube.com/watch?v=ksCscb1FMzs
11. https://www.capetalk.co.za/podcasts/127/lunch-with-pippa-hudson/482707/on-the-
couch-with-lolo-ndlovu-the-founder-of-the-sneaker-shack
12. https://thesneakershack.co.za/

Answer all the following questions in the template provided:

Note: This assessment is based on reaching the following module outcomes:

 Define and classify products.
 Understand the nature and benefits of branding.
 Identify the functional and psychological roles of packaging.

 Understand the role of product in the marketing mix.

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 Understand the importance and role of a planned, integrated communication strategy in

a marketing context.

Question 1: [21 marks]

1.1 There are three main levels of a product or service namely i) the core benefit ii) actual
product and iii) augmented product. Provide a detailed example of each level (3
marks) related to The Sneaker Shack and motivate clearly why you think that example
relates to the specific level (6 marks).
(9)

Possible answer (Chapter 8, page 225 - 226):

NB any relevant example can be given for the three levels – the following are
examples, but detail must be provided in the example. What is important is that the
motivation given by students link with the theory of what each level is.
1) Core benefit:
 E.g. Clean shoes (1 mark)
 Motivation: The core benefit refers to the actual reason why a customer
would purchase a product or service. The actual reason shy customers
would make use of the services is to have clean shoes free of bacteria (2
marks)
2) Actual product:
 E.g. the actual service that is offered is the washing, cleaning and removing
stains using specialised cleaning materials (1 mark)
 Motivation: the actual product refers to the quality, brand, physical features
and design that a product has so it links to the physical aspects that
customers see when deciding which jerseys that are on the shelves will be
purchased (2 marks)
3) Augmented product:
 E.g. The Sneaker Shack offers same day delivery and home collection. (1
mark)
 Motivation: The augmented product refers to all the additional “service”
elements that the Sneaker Shack would offer the customer and make the
customers experience more seamless and better – in this case
convenience (2 marks)

1.2 There are four main types of consumer products and service classifications. Identify
which type of consumer product / service classification The Sneaker Shack refers to if
it is the first time that someone would consider using their service (1 mark). Motivate
your answer by providing examples from The Sneaker Shack and their customers that
relate to the marketing considerations of i) consumer buying behaviour; ii) price, iii)
distribution and iv) promotion (4 marks). (Note no theory should be provided, but only
examples from The Sneaker Shack and their consumers based on the case study and
the additional information you have seen / read about the company.) (5)

Possible answer (Chapter 8, pages 227 – 228):

NB any relevant example can be given for the answer but they must clearly link to
the specific marketing consideration. It should be noted that because the question
refers to it being the first time that a customer would consider using the service it is

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seen as a shopping product. If the consumer had already used the service before
and had a preference for this company ONLY THEN would it be seen as speciality.
 Identification of type of consumer product: Shopping product (1 mark)
 Motivation based on examples:
i. Consumer buying behaviour: The Sneaker Shack customers would first
compare this service with other launder services such as “only the best
laundromat” or “levingers” and see which one offers the better service /
options (1 mark)
ii. Price: The Sneaker Shack is more expensive than their competitors and
offers three different options with higher prices for a more detailed service /
clean. Customers will also not take their shoes to be cleaned every day (1
mark)
iii. Distribution: The shoe cleaning service can only be purchased from one of
the Sneaker Shack stores in South Africa or booked through their website,
but cannot be found everywhere. (1 mark)
iv. Promotion: The Sneaker Shack uses advertising through radio, twitter,
websites, YouTube and positive word of mouth from their customers.(1
mark)

1.3 In addition to the three cleaning options that The Sneaker Shack offers, assume that
the company have recently introduced a range of environmentally friendly shoe
cleaning products that consumers can purchase at their stores or through their website
and use at home to clean their shoes. These products range from R20 for the “shoe
shampoo” to R180 for the “protective wax” which is lower than other types of shoe
cleaning products available elsewhere. These products are available in different sizes
including 100ml, 250ml and 500ml bottles. Considering this, provide an example of
each of the following relating to The Sneaker Shack and their product and service
offering:
i. The Sneaker Shack’s product mix (1)
ii. The Sneaker product depth (1)
iii. The Sneaker product width (1)
Possible answer (Chapter 8, pages 235 – 237):
NB any relevant example can be given for the answer:
i. Product mix: The Sneaker Shack offers services such as cleaning of shoes,
Pick up and delivery as well as shoe cleaning products including shampoos and
waxes (1 mark)
ii. Product depth: If we only take the shoe cleaning products, they sell shampoo
and wax. If we take the cleaning services they offer three options from basic to
deep clean. (1 mark)
iii. Product width: If we only take the Shoe Shampoo, they offer in three different
sizes of bottles. (1 mark)

1.4 The cleaning service that The Sneaker Shack offers to its customers has different
characteristics to physical products. Provide any four detailed examples from the case
study or what you have read about The Sneaker Shack showing the unique
characteristics of services (4 x 1 mark). (4)
Possible answer (Chapter 8, page 247 – 249)
The four relevant examples should link to the fact that the service cannot be

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touched, felt etc. and that the service cannot be separated from the provider.
Any four relevant examples can be provided for one mark each – these are just
examples:
 Being able to book a pick and delivery via the website (1 mark)
 Pick up and delivery of shoes (1 mark)
 The shoes need to be left at the Sneaker Shack for the employees to clean and
the employees cannot perform the service without the shoes and customers
telling them which clean they want
 Express service of having the shoes returned in 24 hours

Question 2: [21 marks]

2.1 Assume you are part of the Sneaker Shacks marketing team. The company wants to
diversify its product and service offering. You suggest that the new product
development process is used. Provide a practical application of each step of this
process to come up with a new product / service that The Sneaker Shack can
implement and whether this idea would be feasible in the market. (This means that you
need to provide examples of what you came up with at each step and not provide any
theory in your answer – give a description of what you would have discussed in your
team during each stage – any reasonable scenarios / assumptions can be made when
answering this question.) (10)
i. Idea generation (2 marks)
ii. Concept development and testing (2 marks)
iii. Marketing strategy development (2 marks)
iv. Product development (2 marks)
v. Commercialisation (2 marks)

Possible answer (Chapter 9, pages 264 – 274)

The aim of this question is to determine whether students can identify and apply
theory to a practical scenario. NB any relevant example can be given for the
answer but must fit with what would happen in that stage. Students can come up
with any new idea. The answer must be practical in nature and not focused on
the theory. The following are guidelines as to what the students can include:
i. Idea generation: “We had a couple of customer’s asking what cleaning products
we used and whether they could purchase it because it smelt good. A number of
employees also indicated that some customers were asking whether we were
going to expand our range. Seeing how many requests we were getting, we
decided to look into the idea of developing the shoe cleaning products
ourselves.” (2 marks)
ii. Concept development and testing: “We had a focus group with a number of
customers where we asked them to tell us what they thought about us
developing and selling a shoe cleaning range. We asked consumers what they
thought of our concept of “Always keep your shoes fresh” and the name of
“Sneaker Shack Shoe shampoo” as a marketing concept and they really liked it”
(2 marks)
iii. Marketing strategy development: The plan that we followed was to focus on
expanding our target market to lower-end of the market with a shoe cleaning
range that consumers can use to clean their own shoes (everything is under
R180) and distributed in all Sneaker Shack stores. We spent a lot on the

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production and marketing of the product and used celebrities like Black Coffee
and the CEO to endorse the product. We aim to have R250 000 in sales within
the first year of the launch (2 marks)
iv. Product development: We can work with Colgate Palmolive to develop a range of
shoe cleaning products such as shampoo and wax. (2 marks)
v. Commercialisation: Customers provided positive feedback during the test market
in our stores that we are going to sell our products at Virgin Actives as well (2
marks).

2.2 Identify in which phase of the traditional product life cycle The Sneaker Shack is as a
store (brand) (1 mark). Motivate your answer by using the five (5) characteristics of
that phase (5 marks) as well as the five (5) PLC strategies (5 marks) and applying it to
The Sneaker Shack.
(11)

Possible answer (Chapter 9, pages 280 – 285 and Table 9.2)

Students may have different viewpoints on this and may interpret the question
differently. Read the students answers and see whether what they have indicated
matches the description.

From the case study, students can identify that The Sneaker Shack is in the Growth
phase because they are opening more stores (1 mark). NOTE: some students may
interpret the question in terms of the new shampoo and wax products as mentioned
in the previous question – if this is the case then they can identify the introduction
phase, but the answers need to be linked to the new products in the answer.

Depending on their answer they need to apply (give examples) of the following 5
characteristics and 5 strategies (1 mark each = 10 marks). The table provides the
theory of these but students should apply where they possibly can. (Note however,
that the maturity phase is not correct and the introduction phase must be applied to
new products if students interpreted the question as such). The following are
possible answers (application) that can be given in each:

Characteristic Growth Phase Introduction Phase (note:

ONLY correct if students
refer to new products as per
previous question)
Sales By introducing new stores and Their sales of new products
having stores in Virgin Active are slow (1 mark)
stores there are more
consumers and more sales (1
mark)
Costs As stores and the online Costs are increased because
website have been developed new products need to be
the costs in the stores remain developed and distributed (1
the same (1 mark) mark)
Profits Due to more stores and Low profits for the new
availability at Virgin Actives products (1 mark)

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more consumers are using

the services increasing the
profits (1 mark)
Customers Celebrities that make use of Only customers that know
the service are spreading about The Sneaker Shack will
word of mouth so more active try the new products – early
consumers are using the adopter (1 mark)
services. Customers are also
now moving online (adopting
the online platforms) and
using the pick up and delivery
service (1 mark)
Competitors They have more competitors There are competitors of shoe
such as levingers, Only the cleaning products such as
Best and all other dry Kiwi (1 mark)
cleaners – even consumers
washing their shoes at home
are competitors (1 mark)
Strategies
Product The three main services are They have developed new
offered as well as pick up and products to the store which
delivery (1 mark) are the shampoo and wax (1
mark)
Price The pricing of the services The products have been
has been set in such a way to priced in such a way to drive
cater for different consumers sales (1 mark)
(from R120 – R260 (1 mark)
Distribution All services are available at Distribution is only at Sneaker
The Sneaker Shack stores Shack stores (1 mark)
and some Virgin Active gyms
(1 mark)
Advertising The advertising is aimed at The advertising is aimed at
creating awareness of the creating awareness of the
services through social media services through social media
(1 mark) (1 mark)
Sales promotion The sales promotion that Free samples are given to
takes place is through social consumers when they bring in
media where they offer their shoes to clean (1 mark)
specials or free coffee with
their partner Vida Cafe (1
mark)

Question 3: [17 marks]

3.1 The Sneaker Shack makes use of a range of different promotional-mix elements.
Provide a practical example of how The Sneaker Shack is using each element (1x5
marks). (5)

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Possible answer (Chapter 14, pages 437 and 454-455)

Students may find different examples of each one of the following. The example
must match the promotion tool – the following are examples that students could use.
The examples given could be for the brand or any of the brands found in the store.
The extra links provided after the case study has a number of examples of these:
 Advertising: The Sneaker Shack advertises through online catalogues on their
website on radio or You Tube ads (1 mark)
 Sales promotion: Sales promotion: The message through an ad on Twitter is
that consumers can get 3 for 2 cleans if they use the code SHACKFRIDAY only
during 26 – 29 September online or in store (1 mark)
 Public relations: Use their “project run” campaign to help the less fortunate and
encourage exercise (1 mark)
 Personal selling: The salesperson in store advising the customer to rather do a
“deep clean” and not a basic clean based on how dirty the shoes are (1 mark)
 Direct marketing: Send an sms to customers from their database regarding a
promotion. (1 mark)

3.2 Consider the following ad for The Sneaker Shack from their Twitter account. Provide
an example of each of the following elements of the communications process to
indicate the message that The Sneaker Shack is aiming to convey in this
advertisement. (Note: apply each element). (5x1 marks).
(5)
i. Sender
ii. Encoding
iii. Message
iv. Media
v. Receiver

Source: Twitter: The Sneaker Shack. Accessed 17 May 2021.

Possible answer (Chapter 14, page 443 – 445):

Students may find different examples of each one of the following, but it should be clearly

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linked to each element of the communication process.

i. Sender: The sender in this case is The Sneaker Shack (1 mark)
ii. Encoding: The ad is put into pictures and words in a tweet (1 mark)
iii. Message: The message is that consumers can get 3 for 2 cleans if they use the code
SHACKFRIDAY only during 26 – 29 November online or in store (1 mark)
iv. Media: the media used is an online Twitter ad (1 mark)
v. Receiver: The receiver is twitter followers of the The Sneaker Shack. (1 mark)

3.3 Consider the following tweet from The Sneaker Shack. Identify which one of the three
types of appeals this tweet is using (1 mark). Motivate your answer. (1 mark). (2)

Source: Twitter: The Sneaker Shack. Accessed 23 August 2021.

Possible answer (Chapter 14, page 446- 447):

Appeal: Rational appeal (1 mark)

Motivation: The tweet is showing the advantages / options that the Sneaker Shack offers i.e.
pick up and delivery, linking to the convenience aspect of using the service (1 mark).

3.4 There are various budgeting methods that The Sneaker Shack could use when setting
a budget for their promotional campaign. Identify which method you think is most
suited for The Sneaker Shack’s promotion strategy (1 mark). Motivate why you think
this would be the best budget method to use (1 mark).
(2)

Possible answer (Chapter 14, page 450 – 451):

Students may select any of the budgeting methods (affordable method, % of sales
method, Competitive-parity method or objective and task), but have a clear
motivation as to why that method is preferable. Considering the case study and size

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of The Sneaker Shack it is suggested that affordable; % of sales method, or the

objective-and-task method are the most preferred methods (1 mark for the
selection). Based on the motivation for the method, 1 mark can be allocated). The
following are possible motivations that can be provided:
1) Affordable method – Based on what the profits are / what the available funds
are when a campaign is launched, the Sneaker Shack would use the amount
of money available and adapt the media used based on that (e.g. Twitter and
Radio is cheaper than TV)
2) Percentage-of-sales method – The Sneaker Shack could determine its budget
for advertising based on the sales they achieved in 2020 / they could set aside
2% of their sales for the advertising of the following year (1 mark)
3) Objective-and-task method – The Sneaker Shack could determine that their
main objective now is to drive awareness of the pick up and delivery option
and developing advertising budget to meet that objective by using online
media (1 mark)

3.4 Identify whether The Sneaker Shack uses a push or pull strategy or both (1 mark).
Provide a motivation for your decision by providing examples relating to The Sneaker
Shack. (2 marks). (3)

Possible answer:
 Which one: The Sneaker Shack uses a push strategy (1 mark)
 Motivation: Students can use any relevant examples here which could include
that The Sneaker Shack uses social media such as Facebook, Twitter etc. to
keep consumers aware of the promotions they are having and to push the
sustainability aspect of the “project run”. (2 marks).

Question 4: [11 marks]

4.1 There are many social criticisms of marketing because many people think that certain
marketing practices can hurt consumers, other businesses and society as a whole.
Identify one example, relevant to the clothing industry as a whole, of cases where each
of the following social criticisms were justified. (Note: you will need to do some
research to find these. You can find examples for the fashion / clothing industry
including shoes and accessories as a whole and not just for The Sneaker Shack).
(5)
i. Excessive mark-ups (1 mark)
ii. Deceptive pricing (1 mark)
iii. Deceptive promotion (1 mark)
iv. Low-quality products (1 mark)
v. Poor service to disadvantaged consumers (1 mark)

Possible answer (Chapter 20, pages 618 – 624):

Students need to provide examples from the clothing industry highlighting each of
the five elements mentioned (1 mark for each appropriate example). The following
are examples of possible answers:
i. Excessive mark-ups: the competition commission recently found that there were
excessive mark ups in the school uniform sector where many suppliers were
found guilty of price fixing causing the high prices (1 mark)

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ii. Deceptive pricing: Edgars was found out for increasing their prices of their
clothing before a “sale” so that the 25 – 50% sales price was actually the same
as the original price. (1` mark)
iii. Deceptive promotion: A store in Cape Town was advertising that their stores sell
“Polo” branded products, but the logo was slightly different to the real product
so they were advertising fake products as the real brand (1 mark)
iv. Low quality products: Examples would refer to the clothes sold in china malls
etc. which are known to be of less quality. (1 mark)
v. Poor service to disadvantaged consumers: For example, Karma clothing store
explicitly states that they do not deliver to townships, while they do deliver to
other areas (1 mark)

4.2 Identify whether The Sneaker Shack uses the Societal Marketing concept or the
Sustainable Marketing Concept (1 mark). Provide three specific examples to motivate
your answer (3 marks) (4)

Possible answer (Chapter 20, page 617)

i. Sustainable marketing concept (1 mark)
ii. Motivation – Note any three applicable examples can be provided, the following
are examples.
The Sneaker Shack uses less water by cleaning shoes by hand (1 mark); they
have the “project run” to “reuse” shoes (1 mark); they package cleaned
products in recycled paper and not plastic (1 mark)

4.3 Within societal marketing there are four classification of products. Identify which one of
these classification of products is relevant to The Sneaker Shack (1 mark) and
motivate your answer (1 mark).
(2)

Possible answer (Chapter 20, pages 640):

Students can provide any reasonable motivation in this answer.
• Desirable (1 mark)
• Motivation (any reasonable motivation can be given) The Sneaker Shack cleans
shoes using less water which provides immediate satisfaction of clean shoes,
while also sustaining the environment through the “project run” and long-term
benefits of not throwing away shoes (1 mark).

Total: 70

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