Marketing- Pick and Pay

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Question 1
Space gap- Pick and Pay has various franchises around South Africa. Getting goods that are out of stock maybe difficult if geographically the stores are a far distance from one another so there are various depots in each province. Pick and Pay has an online shopping facility to bridge the gap between the manufacturer and the consumer. They don’t outsource transport companies either but use their own trucks for transportation of goods. Time gap- Goodness as Pick and Pay say is what they are striving for. They don’t make use of cold storage for long periods of time as the quality and nutritional value of the food deteriorates. They try keeping the use of preservatives to a minimum and provided a detailed online catalogue of in season fresh produce for every month of the year. Rather than having to put fresh produce on the shelf that isn’t up to standard. PnP chooses instead to only stock what is available to them. If the cheaper, outdoor grown avocados are not available due to seasonal limitations, they will stock the more pricy, greenhouse grown ones for example. Information gap- Each product sold on the shelf has a detailed breakdown of the nutritional value and allergens in the product. Pick and Pay provides qualified. PnP also provides educated and qualified pharmacists, and nurses at their medical dispensaries. This allows the customer to be sure of their purchase, the product, its relevant uses and any dangers associated with the product. Ownership gap- The ownership gap is bridged through customers being able to pay via EFT if they have used the online store and the goods are delivered directly to the consumer’s doorstep. Customers can do their shopping and select their various products. Once this is complete, the customer is required to pay for the goods. The till prints out a receipt, proving that the transaction took place, and identifying exactly what products changed owners. Pick and Pay makes shopping easier for the consumer as the consumer has the option to pay with cash or card facilities that are all available at the till point and no arrangement need to be made in advance with regards to the customers preferred method of payment. Value gap- This is the distinction between the relative values of a product in the eyes of the retailer verses the relative value of the same product in the eyes of the consumer. If both parties don’t come to an agreement on the value of a product, a sale will not take place. PnP would in some cases, drop their price, thus losing out on profitability, to be on par with their competitors. The sale will then become entirely dependent on which of the competitors close the 5 marketing gaps best.

Question 2
Transport- This is entirely about efficiency and effectivity when it comes to getting the product to the consumers as fresh as possible and quickly as possible. Pick and Pay has various depots around the country and have a main distributions center in Longmeadow, Gauteng. Sourcing and supplying of information- Pick and Pay have been the game for many years and have acquired information on the different social classes that make use of their stores. They do market research to identify how to cater for each class with necessity good being priced accordingly to suit the poorer population but still pride themselves in quality. Sourcing and supplying of information is an ongoing procedure because trends change as we are in an ever changing society. The customers are really well informed about product as the staff for example at the dispensary are qualified and can answer all the consumer questions. There is a head of each section example the butchery, fresh produce, tinned foods and the bakery that the customers can raise their questions to if the customer feels the advertising isn’t informative enough. There will always be a professional at hand. Standardization and grading- This is ensuring that product standards are consistent. Grading the products make the customers...
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