Words: 1680
The company also owns Score stores, which It Is now undertaking to convert to the Pick n Pay brand and specifically, to its Family Franchise store format, where a local community member is owner-manager of the store. Question 1 A marketing gap refers to an unmet need, where people might require a certain product, or type of product or service, there is no business that is selling the product 1 OFF entrepreneurs to produce the goods or services which is not yet available to consumers. The market gaps can be classified into 5 categories namely; space gap, time gap, information gap, ownership gap and value gap.
Space gap The space gap refers to how the company distributes their products around the country to reduce the chances of stock shortages between the different stores. Companies use warehouses to distribute products between different stores. Pick n Pay closes the space gap by using depots and warehouses to distribute products between the different Pick n Pay franchises throughout the country. Time gap The time gap refers to the company importing products or keeping a products in excess throughout a certain time period to reduce the chances of certain products having a stock shortage due to the change in season.
Pick n Pay uses their warehouses to keep stock of certain produce. Pick n Pay is South Africans number one retailer, which consists of 20 hypermarkets, 162 supermarkets and 127 Family Franchise stores. The produce is stored in temperature controlled room to fit the needs of the produce to keep them fresh and up to quality standards. Pick n pay signed an agreement with the WFM and the ASSAI to transform their fresh, frozen and canned seafood products with aims to restore over- exploited fish stocks to sustainable levels, while maintain and improving other stock.
Pick n pay is one of out Africa first retailers to sign an agreement, the three year agreement is worth 6. 1 million rand Information gap The information gap refers to giving the consumer information about the different products. Pick n Pay closes the information gap by providing the consumer with relevant information on the products they sell to the consumer Ownership gap The ownership gap refers to an entrepreneur purchasing a franchise and following the rules and requirements of the franchiser. Pick n Pay is an Associate Member of the Franchise Association of Southern Africa. Membership No.
OFF/0234. The entrepreneur profile for a franchisee is an existing store owner or manager, or an entrepreneur with previous retail management experience. Pick n pay provides a training program for new franchisees which is 67 days which is an initial training programmer for the owner, and ongoing training and support for operating a successful business. Its important for the franchisee to buy a set of Operations Manuals at a cost of RE 000 once a future store has been set up. The franchisee has to pay one percent of gross actual turnover. This fee is payable with post-dated cheeses.
The franchisee makes use of the Pick n Pay brand on till packaging, promotional signage, uniforms and name badges. These are Just some of the rules and regulations for a new franchisee to follow when opening a new Pick n Pay franchise. Value gap The value gap refers to the price at which the company decides to sell their products to the consumers and whether the consumer agrees with the price. Pick n Pay inspire customer loyalty through loyalty cards such as the smart shopper loyalty card, which allows customers to allocate shopping points which can be used to pay for Pick Pay items after a certain amount of points is acquired.
The BEEBE gap refers to how a company complies with the scorecard. The recommended approach is for the companies to use the scorecard calculator to establish a baseline that reflects the company’s current BEEBE status. Pick n pay has a level sic BEEBE status which is two places away from being non-compliant. Pick n pay shows 3. 76% in black ownership and 0. 37% in black women ownership. This ownership is Question 2 Marketing activities refer to the activities of a company associated with buying and ailing a product or service.
Primary marketing refers to the transportation of the products from the supplier to the consumer in the fastest and safest way. Transportation Pick n Pay makes use of Unitarians Freight and Logistics to handle all its transport, warehousing and delivery needs, while Unitarians supply Chain Solutions designs and implements supply and logistics solutions for customers. Services include transportation, warehousing, distribution and clearing. Sourcing and Supplying information This refers to the retailer knowing where potential consumers are and how the detailer is going to attract the consumers.
This marketing activity can also be related to market research which is the collecting and analyzing of information relating to consumer needs to introducing a new product into the market. Pick n Pay uses different forms of media to advertise their products to their target market. Pamphlets are often used in weekly newspapers to give consumers prices and discounts on Pick n Pays prices. Other media such as television is used to promote Pick n Pays prices as well as promoting their loyalty cards and outreach programs such as the pink rive which inspires customer loyalty.
Standardization and grading This refers to the retailer acquiring the best quality oft products at the best price in large quantities which in retrospect benefits all the parties involved in the economic process. Pick n pay signed an agreement with the WFM and the ASSAI to transform their fresh, frozen and canned seafood products with aims to restore over- exploited fish stocks to sustainable levels, while maintain and improving other stock. Pick n pay is one of South Africa first retailers to sign an agreement, the three year agreement is Roth 6. 1 million rand.
Storage Refers to the company importing products or keeping a products in excess stock shortage due to the change in season. Retailers use the storage activity to close the time gap. Pick n Pay uses their warehouses to keep stock of certain produce. Pick n Pay is South Africans number one retailer, which consists of 20 hypermarkets, 162 supermarkets and 127 Family Franchise stores Risk-taking The retailer takes out insurance to secure the company from certain loses. , property insurance provides protection for the company against most risks to property, such s fire, theft and weather damage.
Bad debt insurance is payment protection Insurance which is designed to protect the company from being unable to make payments to creditors. These are Just some of the types of insurance that Pick n Pay can take out to insure their assets from loss or damage. Question 3 Market orientation focuses on providing products that respond to both the needs and wants off target audience. These orientations can be classifies into four concepts namely; production, sales, marketing and societal marketing-orientation. Consumer Orientation
The market is characterized by a number of products, a diverse customer group and stiff competition. Marketing with the consumers in mind has become a necessity to business today. Marketing managers are moving their focus from selling a product to make a larger profit margin to providing goods and services for the consumers, but at a price that is both affordable, which keeps the consumers satisfied and ensures that the companies make a profit at the end of the financial year. One of the key factors of Pick n Pays consumer orientation strategies is inspiring customer loyalty, Pick n
Pay uses their loyalty cards to inspire customer loyalty to the Pick n pay brand. The smart shopper card is a loyalty card that allows customers to accumulate points when they shop at Pick n Pay stores. Once the customer accumulates enough points, the smart shopper card can be used to pay for the products at the Pick n Pay store thus helping the consumer save money after a certain period of time due to the point system set up by the loyalty card scheme. “Smart shopper has been designed as an easy three-step process of signing up, swiping the card and switching points to
Rand once cardholders have collected 1000 points. When switching their points, customers can elect to donate to a charity or environmental cause instead. The only till transactions that don’t earn smart points are third party payments such as household service bills, traffic fines, tobacco products, Pan gift cards, Lotto, money transfers, financial services, fuel or prescription drugs. ” Pick n Pay set up the Pink Drive program which is a program aimed at education women in informal areas about breast cancer, Pick n Pay use two trucks which consists of an abele staff who re educated with the program.
The staff provide free mammograms and clinical breast checks to all women in the community. Which inspires customer loyalty and attracts potential investors. Online shopping is another scheme set up by Pick n Pay shopping scheme allows customers to browse through the Pick n Pay catalogue which provides the products price and description which lets the consumer know more about the product, the catalogue provides the price and picture of the product. Pick n Pay also has a delivery service which transports the products that the consumer researched over the internet to the area of the consumer. Hose are the ways in which Pick n Pay inspires customer loyalty to form a consumer orientated market which is aimed at providing products to the consumer at an affordable price which inspires customer loyalty but at the same time provides a good profit margin for the Question 4 With relationship marketing, customer profile, buying patterns, and history of contacts are maintained in a sales database. , and an account executive is assigned to one or more major customers to fulfill their needs and maintain the relationship, legislation marketing gives the company the opportunity to grow with both revenue and profit.