Marketing and Pick N Pay

7 July 2016

This marketing plan will be focusing on re-gaining the lost market share and a way to make the company a more profitable organisation without destroying the key aspects of the company. The challenge: Pick n Pay’s offer to the customer focuses on groceries but also goes on to providing other products to their customers such as: clothing, general merchandise, but also includes additional value-added services to cater for Pick n Pay’s customer’s and their evolving needs. Situation Analysis: In 1967 Raymond Ackerman purchased four small stores, launching Pick n Pay as South Africa’s first food discounter.

The key aspect of the company is a quintessential family store focused on the customer. Since then Ackerman’s vision has grown and now has expanded to further countries such as: Zambia, Mozambique, Mauritius, Swaziland and Lesotho. Company Analysis: Due to the fact that Pick n Pay is a quintessential family store, Pick n Pay strives to address socio-economic changes through the supply of high-quality, affordable food for all customers, while providing significant employment and economic opportunities for all.

Marketing and Pick N Pay Essay Example

The growth and success of Pick n Pay goes down to the following principals: “Consumer sovereignty; Doing good is good business; and maximising business efficiency. ” Mission: “We serve with our hearts, we create a great place to be with our minds, we create an excellent place to shop. ” Values: “We are passionate about our customers and will fight for their rights. We care for and respect each other. We foster personal growth and opportunity. We nurture leadership and vision, and reward innovation. We live by honesty and integrity.

We support and participate in our communities. We take individual responsibility. We are all accountable. ” Customer Analysis: Pick n Pay caters to all the markets of South Africa. There is no specific age to shop at Pick n Pay however the age of people who mostly shop at Pick n Pay are aged 18- 65+. There is no specific gender that shop either. This means that in order to achieve a successful marketing strategy Pick n Pay will have to produce an advertisement that will be recognised throughout all the ages and appeal to both sexes.

Competitor Analysis: Pick n Pays competitors are Woolworths, Shoprite Checkers and Spar. Although originally Woolworths was the only food store that catered to the ‘upper market’ in South Africa this has changed over the years. Now, Pick n Pay is aiming to supply food to all the target markets and to become the most successful food supplier. Shoprite Checkers is Pick n Pays biggest competitor as both companies have the same vision in becoming the most successful food supplier.

Pick n Pay had originally been the first of the two to have established a store to cater to all the markets, but now Shoprite Checkers have started a campaign to appeal to all the markets in re-branding and creating a new image just as Pick n Pay had originally done. Spar caters to the ‘lower income’ market and has the reputation of being the cheapest store to shop from because of the massive amount of poverty in South Africa. SWOT Analysis: Strengths: Fair pricing gives Pick n Pay a cost advantage against competitors. The growth in the use of online markets. Strong band principals giving Pick n Pay a good reputation.

Having a supply chain allows the company to grow. Having mini stores to cater for the customers daily basic needs. Weaknesses: Bad communication between customers and Pick n Pay as well as the internal structure of Pick n Pay. Inconsistent product care. Incompetent staff that are not motivated staff who are not motivated to being ambassadors in establishing the company’s fundamental principals. Opportunities: To invest in emerging markets. Expanding the company abroad. To expand on Pick n Pays products and services. Threats: The ever-going competition of competing stores.

The economic slowdown will affect the amount of liquidity and the amount that customers will purchase. Competitors could have lower costs to products making Pick n Pays consumers choose to go elsewhere. Product substitution could entail Pick n Pay not producing high quality goods making customers find better value for money shops. Competitors penetrating the market with better global ties and cheaper imported goods. Marketing Segmentation Primary Research: Pick n Pay must get involved in developing communities and giving them the opportunity to have a chance to succeed in South Africa’s economy.

This will help the image of Pick n Pay as it will show the customers that when they shop with Pick n Pay that they will initially be helping their community. Secondary Research: To create cheap, re-usable or alternative plastic bags instead of the typical plastic bag. This initiative will allow environmentally friendly people to shop at Pick n Pay as it will show them that Pick n Pay is aware of the environment and that they want to have an eco-friendly community. The bags will be fairly priced and should have a rewards system on the number of bags you buy the more points you will win.

Tertiary Research: To make a shopping ‘credit card’ that will allow customers to shop at Pick n Pay without the stress of not having enough liquidity so that they can pay it back when they have enough money, however there should be a limit as to how much someone can spend so that is doesn’t eat into the companies profitability. There should also be a points system on the card that if you pay your account on time and spend over a certain amount you get points and eventually when you have enough points you can either get a discount or an amount off your shopping trip.

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