World Wide Worx | Business Technology Research South Africa

Profiling discount clubs and programmes in SA

The Discount Clubs and Programmes (DCP) 2005 report provides a comprehensive view of formally run discount clubs and programmes in South Africa. Among the profiled entities are five buying associations, which account for an astonishing R3,8-billion in consumer spending annually.With the new Co-Op Act due to come into effect at the beginning of 2006, the time is ripe for marketers to take note of DCPs. The new Act aims to foster the spread and growth of buying co-operatives. Within a few years, marketers may find that many more of their target customers belong to a co-op than is the case today.

DCP 2005 profiles and analyses the identified South African discount clubs and programmes. For this purpose, DCPs are contrasted with rewards programmes and customers clubs, both of which are profiled in other reports published by Razor’s Edge Business Intelligence. A DCP offers discounts to its members using a variety of discount methods. The discounts may:

Be a percentage off the list price

Take the form of a rebate, credited to the member’s account once a year, as is the case with the profiled buying associations

Be determined by two or more factors, such as, programme tier status and number of units purchased to date.

Preferential pricing from an exclusive reseller
DCPs profiled in the survey are:

• AA Show Your Card & Save
• Absa Stay
• Backbeat
• Cape Consumers
• DiscoveryCard
• Health Shoes Frequent Shopper Card
• Hotel Express International
• IEMAS
• International Student Identity
• Koopkrag
• MasterCard4More
• Pretorium Trust
• Samba
• South African Youth Card
• The Ware House
• The MasterCard4More programme closed during the fieldwork of the survey.

The size of this channel to market will surprise many. Are you missing out on a R3,8-billion market? This is the total DCP-related expenditure of the five buying associations profiled in the report. That accounts for programme expenditure of just five of the 15 profiled DCPs.

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This report is available in PDF format at a cost of R5600 excluding VAT. Complete the online order form or call Steven Ambrose on 083 6010333 for any sales queries.

Download the Discount Clubs in South Africa 2005 Executive Summary with a Table of Contents.