Table of content
Table of content
Pick n pay introduction
South Africa’s number one retailer has worked hard to uplift local communities and develop its own people. Pick n Pay it has gone through a re-branding across its stores, which was implemented on the 12th of November 2007.Pick n Pay is South Africa’s number one retailer, which consists of 20 hypermarkets, 162 supermarkets and 127 Family Franchise stores, with an annual turnover of R45 billion .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.
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 to the consumers where there is a gap on the market. It's an opportunity to for 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 Africa’s 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 WWF and the SASSI 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 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 franchisor. Pick n Pay is an Associate Member of the Franchise Association of Southern Africa. Membership No. F94/0234. 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 programme 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 R4 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 cheques. 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....
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