Pnp Situational Evaluation

By simply

Agency

Situational Research, Key Issues & INTELLIGENT Objectives

nineteen March 2013

Andrea Seegers - 12018037

Phumelele Msomi – 12018099

Sbongiseni Skweyiya - 12007206

INDEX

i. Introduction – Pick in Pay Page 2

2. Situational AnalysisPage 2

5. Macro Page 2

5. MicroPage some

* Inside Page several

iii. SWOT Analysis Site 9

4. Key Issues Page 15

v. WISE Objectives Web page 10

vi. ConclusionPage 10

vii. Bibliography Page 14

Introduction – Pick in Pay

Pick in Pay is one of Africa's largest and many successful suppliers of foodstuff, general goods and clothing. Pick and Pay opened by visionary retailer Raymond Ackerman in 1967, he started out with four stores in the European Cape and he says it took " 10% capital and 90% guts”. The company was listed on the JSE Limited Securities Exchange in 1968 and grew in to the leading price tag group that it is today. Choose n Spend currently involves 795 Hypermarkets, Supermarkets & Family Stores, employs 42 000 people and generates an annual turnover of R55. three or more billion. Opt for n Shell out aspires to satisfy customer's requires by selling top quality products by competitive prices and offering courteous services in stores that are well located and desirable to shop in. Pick n Pay have been struggling the past two years, in the last year their revenue declined by 39% and they have lost market leadership to Shoprite.

Situational Evaluation

MACRO

Monetary Factors

Petrol price increase on the 6th of February 2013 was a fresh record a lot of R12. twenty seven for ninety five octane gas in Gauteng and it was due to higher crude oil prices which contributed to the damage of the rand/dollar exchange charge. Every increase in the gas price influences the energy of the transfer of retailer's goods which increases the RSP (retail selling price) of their products. (http://www.bdlive.co.za/national/2013/02/10/motorists-must-brace-for-more-price-hikes)

Technology Elements

South Africa has been lagging behind in the online grocery store retail sector due to low internet access. The introduction of the tablet has resulted in the growth online access and online shopping; a lot more than 70% of tablet owners are online shopping. Pick d Pay and Woolworths are the most active players in this field and their current challenges happen to be that they you don't have the delivery infrastructure, protection issues and credit card fraud but are spending a lot of cash to fight these issues also to prepare for the tipping level. The current limitations for the buyer with buying online are as follows: * Consumers don't trust the system; they need the option of having the capacity to try the process before they have to buy. * Delivery charges, it is by no means free

* Not any interaction while using product

(http://www.bdlive.co.za/business/retail/2013/02/18/south-african-retailers-slow-to-tap-online-sales) Social Elements

The modern upper-income (LSM 8-10)class of the black buyer is living in the cities, has a more compact family, is way better educated, digitally savvy and earns a very high salary. Fortunately they are brand and quality conscious; they search for the latest tendencies whilst observing the budget and want a contemporary & appealing shopping environment. This group is growing simply by 20% every year and their ordering power can be increasing fast and reshaping the marketing landscape. Dark-colored households are also the largest group in the middle-income class (LSM 5-7) and the numbers continue to grow gradually. (http://www.mckinseyquarterly.com/A_seismic_shift_in_South_Africas_consumer_landscape_2592)

MICRO

Consumers

Pick in Pay's target market is separated into three teams which are the superior market (LSM 8-10); main market (LSM 6-7) as well as the emerging industry LSM 4-5). Pick n Pay has not been able to enter the emerging market up to now and this is exactly what they do whilst maintaining the main and premium markets. Pick d Pay stores are split up into...

Bibliography: (http://www.mckinseyquarterly.com/A_seismic_shift_in_South_Africas_consumer_landscape_2592)

MICRO

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