MBL913M_JHB0410A_2010_-_Assignment2_v3.0_Positioning1.0[1]

MBL 1: 913M – (2010) Marketing Management

MBL 1

UNISA SBL

COURSE CODE: MBL 913M

GROUP: JHB0410A

YEAR: 2010

Assignment Number: 2

Assignment Topic:

Woolworths Marketing Mix Strategies

Student Name Student Number Individual Contribution %

RAMPERSADH S MRS 72536861 100%

NZAMA L P MS 72406208 100%

NKOSI B F MR 72538589 100%

ELLAPPA D M MR 71464514 100%

PILLAY P D MR 72547642 100%

JULIUS N MR 71768521 100%

THEKISO N M MR 72529164 100%

NDLOVU L P MS 71007628 100%

CHIRONDA I MR 72545534 100%

NTULI G I MS 72549955 100%

BULO M MS 72752726 100%

MBL 1 Peats Group 1


Table of Contents

1. Introduction...............................................................................................................31.1 The History of Woolworths.........................................................................31.2 Woolworths Values......................................................................................31.3 Business Strategy.........................................................................................31.4 Retail Formats..............................................................................................4

2. Demographic Profile of Customers of the Woolies Food Format.............................52.1 Definition.....................................................................................................52.2 Demographic Profile....................................................................................5

3. Profile of Marketing Mix...........................................................................................63.1 Product.........................................................................................................63.2 Price..............................................................................................................73.3 Place.............................................................................................................83.4 Service..........................................................................................................93.5 Store Environment.....................................................................................103.5 Promotion...................................................................................................11

4. Positioning and Marketing Strategy.........................................................................135. Recommendations....................................................................................................17

5.1 Promotion...................................................................................................175.2 Service........................................................................................................175.3 Price............................................................................................................18

References....................................................................................................................19Annexure A..................................................................................................................20Annexure B..................................................................................................................29Annexure C..................................................................................................................30

MBL 1 Peats Group 2


1. Introduction

PEATS have chosen Woolworths Foods as their selected retail format to research.

1.1 The History of Woolworths

Built on faith and determination, Woolworths began life in what had been the dining

room of the old Royal Hotel in Cape Town on a sunny October morning in 1931. The

national economy was not one that looked to favour a new business and many

predicted an early failure. A determined man, Max Sonnenberg, assisted by his son

Richard and Fred Kossuth, then 22 and an “office boy”, Sonnenberg set about

capturing the public’s imagination with a store policy that set Woolworths apart.

In 1934 Woolworths opened a second branch in Durban, followed in 1935 by

branches in Port Elizabeth and Johannesburg. Shareholders who bought Woolworths

stock in 1936 at 75c a share would have seen that stock grow many times its original

price as the Woolworths brand has become an entrenched icon in South African retail.

Since its inception 74 years ago, the Woolworths brand has become synonymous with

innovation, quality and value for money. With their wide appeal, Woolworth’s goods

are now sold at 149 corporate stores, 51 international franchise stores throughout the

rest of Africa and the Middle East and 69 South African franchise stores nationwide.

(Ref) + (cannot do both formats, required to only select one - shabs)

1.2 Woolworths Values

As it has grown, evolved and adapted to the changing world around it, Woolworths

has always remained true to its core values of quality, integrity, value and innovation

and has continually strived to make a difference in the lives of its customers. Known

by generations of South Africans simply as “Woolies”, it has grown to become part of

the very fabric of South African society, a benchmark for excellence and an icon of

quality. (Ref)

1.3 Business Strategy

Woolworth’s business strategy covers the following broad areas:

Focus on value and quality whilst strengthening innovation

Improve availability of products

MBL 1 Peats Group 3


Utilise customer information database to drive promotions and store

catalogues

Continue to manage inventory tightly and further improve margins

Manage costs down

Strengthen supply chain efficiencies

(Ref)The company has a national foot print of 149 stores, enhanced by its agreement

with Engen, whereby 24hours convenient stores are located at Engen fuel-petroleum

stations. It has entrenched its brand through franchise partners in Africa and the

Middle East.

1.4 Retail Formats

Woolworths has two main retail formats viz. departmental stores and speciality stores.

(Online web site deals with HOW you want to sell ur products not what ur selling -

shabs) The departmental stores include a combination of the following lines; food,

clothing, home and cafe. The speciality stores include single lines which are food and

clothing.

Woolies offer premium brands and promises quality across its segments, all under its

own brand name. Men, women and children’s clothing is known for its exceptional

quality and durability, and all items have labels that indicate materials used and

country of manufacture. Woolworth’s homeware offers shoppers stylish

contemporary ranges of items for the home, enabling customers to select a look that

suits their wants and needs at affordable prices.

Free range and organic choices are on the increase in stores as Woolworths moves

ahead on its “good food journey”. Organic foods are audited and certified by

independent bodies.

The main source of Woolies revenue is food which accounts for 57% of their income.

(mention other 43%, refer to and add pie chart in annexure) They target the mid-

upper LSM*(Living Standard Measure) market which can be defined as customers

earning between LSM 7 (R8,320/month ) and LSM 10 ( R20,902/month), a view also

echoed by its CEO Simon Susman who said in an interview with the Financial Mail

that the upper-income customer is the "heartland of Woolies’ customer base. (Ref)

MBL 1 Peats Group 4


2. Demographic Profile of Customers of the Woolies Food Format

2.1 Definition

Marketers typically combine several variables such as sex, race, age, income,

disability, mobility educational attainment, home ownership, employment status, and

even location, to define a demographic profile. A demographic profile provides

enough information about the typical member of this group to create a mental picture

of this hypothetical aggregate. For example, a marketer might speak of the single,

female, middle-class, age 18 to 24, college educated demographic. (Ref) Once these

profiles are constructed, they can be used to develop a marketing strategy and

marketing plan. The five types of demographics in marketing are age, gender, income

level, race and ethnicity. http://en.wikipedia.org/wiki/Demographics (Change wiki

text Ref).

2.2 Demographic Profile

Figure 1 in the Annexure A illustrates the demographic profile of Woolies customers.

This profile is further summarised below. (add home ownership on the demographic

data table) +(include disclaimer if survey responses are not enough)

AGE % EDUCATION % RACE % GENDER % MARITAL STATUS

%

20-25 14 B. Degree 31 African 57 Male 37 Married 54

26-30 21 Diploma 23 Coloured 6 Female 63 Single 46

31-35 40 Matric 11 Indian 14

36- 40 14 Post grad 35 White 23

41– plus 11

Figure 2: Summary of Demographic Profile

Based on the sample table above, the Woolworths customer is typically a black

female, who is married, between the ages of 31 and 35. She may be a professional

who needs to balance her career with the family. She may possibly be in a good

professional job, given that she holds a post graduate qualification. (Note: Inferences

have to be made according to question, so this is correct - shabs)

MBL 1 Peats Group 5


3. Profile of Marketing Mix

(Set the benchmark upfront, 100 not 80 – but stats benchmarked against 80%)

Marketing mix is the set of controllable tactical marketing tools-product, price, place,

and promotion, that the firm blends to produce the response it wants in the target

market. The marketing mix consists of everything the firm can do to influence the

demand for its product. An effective marketing plan blends all of the marketing mix

elements into a coordinated program designed to achieve the company’s marketing

objectives by delivering value to consumers (Kotler and Armstrong, 2005:58). Figure

3 in the Annexure A describes the different marketing tools under the four Ps.

3.1 Product

According to Kotler & Armstrong (2001) a product is anything that can be offered to

a market for attention, acquisition, use, or consumption that might satisfy a want or

need. Some marketing tools that distinguish product include variety, quality, design,

features, brand name, packaging as well as services.

A product is well designed when it takes into account the three levels of product

namely, core product, actual product and augmented product. It must also be noted

that each product is designed with the target consumer in mind. Marian Burk (Ref

correctly) advocates that a product will be at a competitive disadvantage if its features

deliver benefits not valued by the target segment. Therefore a high quality product is

one that does a competitively superior job of fulfilling customer needs. A good

quality product helps a company to attract new customers, retain current customers,

capture market share, charge higher prices and earn higher profits but it does not

necessarily guarantee success.

Product style and design is also an important element of a product because it adds

customer value. A product’s appearance and design contribute to a product’s

usefulness as well as its looks. It also attracts attention; improve product performance,

cut production costs and give it a competitive advantage in the market.(Ref or

edited?)

MBL 1 Peats Group 6


From a customer point of view, a “product” can be perceived to be the customer

solution, meaning a customer will look to a product to fulfil a specific expectation or

need.(Ref or edited?)

Survey Results:

Research through the survey (Figure 4 in the Annexure A) shows that:

91% of the customers believe that Woolies has what they want

74% believe that Woolies has a large range of products

94% agree that the company has high quality merchandise

Fresh, high quality products are a perception of good quality. Woolies satisfy

customer needs by catering for a wide variety of tastes with products that are unique

and ranges being extensive.

3.2 Price

Price is the amount of money charged for a product or service and it is also a

significant part of the marketing mix because it directly produces revenue for an

organization. Pricing decisions are based on a number of factors; amongst others is

customers’ perception of the value of a product, positioning of the product,

distribution costs, competition, etc. Marketing tools that can be utilised with Price

include list prices, discounts, allowances, payment periods, and credit terms.(Ref)

On the other hand, customers do not only consider the value of the product but also

take into account the benefits they receive and the price they pay and the price of

competitors and substitute products. When the benefits outweigh the price, customers

perceive the product to be of high value.(Ref?)

It must also be noted that perceived value for the same product may differ for

customers within different segments. From a customer point of view price can be

construed as the cost to the customer of acquiring a product or service.

Shabs changed original

Survey Results:


77% of Woolies customers believe that the company’s products are well

priced whilst 12% say that they are too steep. A mere 11% neither thinks the

products are priced too high nor low

MBL 1 Peats Group 7


Only 46% of the respondents believe that Woolworth’s prices are symbolic of

everyday day low prices compared to 17% who believe that the prices are far

from being considered as everyday low prices. A slightly higher number of

respondents (37%) do not necessarily know whether the prices are worthy to

be considered everyday low prices or not

37% of the respondents believe that Woolies sale items are bargains,

compared to 35% who believe that sales items are not bargains whilst 29% do

not necessarily know whether the sales prices are worthy to be considered

bargains

It is clear from the survey results that a significant number of customers believe that

Woolworth’s products are of great quality (94%). The customer’s perception of

Woolies products being well priced indicates that the benefits outweigh the price; thus

the product is considered to be of high value and demand will rise.

Woolies does not strive to be the lowest priced retailer. Their strategy is to provide

quality products at a high valued price to the mid-upper LSM market.

There seems to be somewhat of an even split on sales prices being bargains. Due to

the product being of high value, prices cannot be reduced to a large extent as Woolies

could possibly obtain low profit margins.

3.3 Place

Kotler (Ref correctly) states that a retailer’s location is key to its ability to attract

customers and has a huge impact on a company’s profits. It includes all activities that

make the product available to customers. Some marketing tools include distribution

channels, coverage, assortments, locations, inventory, transportation and logistics.

Place from a customer’s point of view looks at the convenience of location and or

accessibility of the product or service. (Ref?)

Survey Results:


91% believe that the store location is convenient

91 % feel that it has what they want

66% believe that stock is available

MBL 1 Peats Group 8


Customers say that stock is available; stores are easily located; and accessible

throughout the day and night as some branches are open till late or available 24 hours

e.g. Woolworths Foods at Engen Garages.

3.4 Service

According to Kotler and Armstrong (2001) successful service companies focus their

attention on both their customers and their employees. In other words, they

understand the service-profit chain which links service firm profits with employees

and customer service.(Ref)

The service profit-chain consists of the following five links:

Internal service quality

Satisfied and productive service employees

Greater service value

Satisfied and loyal customers and

Healthy service profits and growth

In order to achieve the above five links, a company should focus on its internal and

interactive marketing. Internal marketing means that the service firm must effectively

train and motivate its customer-contact employees and all supporting service people

to work as a team to provide customer satisfaction. Interactive marketing means that

service quality depends heavily on the quality of the buyer-seller interaction during

the service encounter (Kotler and Armstrong, 2009: 319).

Survey Results


91% believe that Woolies provide excellent customer service

83% confirm that frontline staff is always available to help and are friendly

66% believe that the company has a good return policy

70% believe that Woolies staff is effective and efficient during peak hours and

they truly provide great value

The above statistics indicate that Woolies invests a significant amount of time in

recruitment and training. It also implies that the employees are satisfied and

MBL 1 Peats Group 9


productive. It is interesting to observe that Woolies has, due to its passionate focus on

customer service, managed to retain loyal customers who have significantly higher

repeat purchase levels ranging from 10 to 20 times per month. The view that the

company’s return policy is not good is more prevalent amongst males i.e. only 38%

believe that Woolies has a good return policy compared to 82% of females.

3.5 Store Environment

Business environment is defined as all the factors or variables both internal and

external which may influence the continued and successful existence of a business

(Du Toit, Erasmus & Strydom,2007; 92).

Retail stores are segmented using socio-economic characteristics of the trade area.

Store performance is measured by a market-based measure and a productivity-based

measure. The internal store environment includes the number of checkout counters

per square foot of selling area. (http://www.shvoong.com)(Ref)

Store environment is critical to a retailer, because it directly affects consumers'' total

shopping experience. It is also a determining factor in affecting consumers'' store

choice decision for shopping. Hence, the management of the physical environment is

considered as an important element in contributing to retail financial success and a

valuable shopping experience for the customer. Ambient and social elements in the

store environment are more likely to affect consumers to make inferences about

merchandise and service quality. The ambient factors of a store refer to the

background character of the environment that tends to influence consumers at a

subconscious level. (http://www.shvoong.com)(Ref)

The external store environment includes the type of neighbourhood it is located in. A

methodology for predicting store performance (for existing and new stores) based on

the type of environment and store location by using aggregate secondary data is

demonstrated.

Survey Results:


MBL 1 Peats Group 10


Most customers believe that the Woolies stores are neat and clean (94%) and

aesthetically pleasing (86%)

77% of customers believe that the store layout and design makes it easy for

them to find merchandise with females rating the company higher (86%)

compared to 62% males

The statistics above indicate that Woolies customers find their shopping experience

pleasurable and this suggests that this atmosphere and ambiance will encourage

customers to return.

3.5 Promotion

Promotion refers to activities that the marketer uses to communicate the marketing

messages to the targeted market. To achieve effective marketing communication, the

marketer needs to have a clear sense of what the marketing objective is. Best (2009)

mentions three categories that typical marketing communication objectives can fall

under, that is:

Communicating with the intention to build brand awareness, connecting with

the consumer at an emotional level

To arouse interest, which seeks to get the target consumer to get more

information on the product and lastly

To motivate an action to buy or try out a product

In essence, the communication needs to talk to the merits of the product and it should

be with a relevant intent, however in most cases the objectives leads to the intent to

persuade target customers to buy. Some marketing tools that can be used to

communicate with the target consumer are, advertising in the press, or on TV or radio

or on billboards, personal selling (direct marketing), and sales promotion via internet

and or public relations.

Timing is critical in promotions, some issues, like ‘seasons’ in a year may dictate or

suggest best times to launch or promote a product and competition promotion

activities. Promotion from a customer perspective has everything to do with two way

communication.

Survey Results:




37% believe that sales are a bargain

46% agree that advertisements offer a good savings

34% believe that Woolies has frequent advertisements

66% agree that advertised items are in stock

Majority of the consumers surveyed believed that Woolworths does not advertise

enough, with only 34% agreeing to the statement that they advertise frequently. Even

with the advertising that Woolworths does, it does not seem to offer much good

saving. The sampled Woolworth’s customer does not necessarily get a sales bargain

from the advertised product sales. Only two thirds of the customers get the products

that have been advertised, in stock. This could imply high demand or low supply.

Woolies could stock a higher quantity of advertised items to increase sales.

Advertising does not seem to be a big focus for the Woolworths retail Food format.

This could be an opportunity for Woolworths, to motivate consumers to buy and thus

increasing sales.



4. Positioning and Marketing Strategy

(seems like overlap bet mkting mix and this section – we need to look into this-

shabs)

According to Kotler and Armstrong (2001: 269) a product position is the way the

product is defined by consumers on important attributes – the place the product

occupies in consumers’ minds relative to competing products.

The positioning task consists of three steps:

Identifying a set of possible competitive advantage upon which to build a

position

Choosing the right competitive advantage

Selecting an overall positioning strategy and effectively communicate and

deliver the chosen position

A company can be differentiated through its products, place, service, channels, people

and image (Kotler and Armstrong, 2001: 269).

Evident from the Figure 10 in the Annexure A, Woolies’ value proposition that

differentiates them can be defined as follows:

Quality products and breadth

Place

Price attributes

Service

Store Environment

Brand Differentiation

The above form a set of competitive advantage that has helped Woolies occupy a

distinct position in the mind of their target market. Based on the survey results in

Figure 10 in the Annexure A, the Group has deduced the strategy that Woolies are

employing. The Group has looked at what Woolies is currently doing extremely well,

revealing where their efforts are concentrated. This forms their positioning and

marketing strategy. What they are not doing or not doing that well forms part of the

recommendations below.

Product



Questions 1, 7 and 10 relate to what Woolies is doing well. With a significantly high

response on Woollies’ quality products, its means that there are fewer incidences of

returned products and they meet the customers’ expectation in terms of reliability.

Based on the qualitative responses received, it appears that Woollies has entrenched

the perception of quality in the minds of its customers. The comments made range

from “extensive range and unique to healthy food and fresh, high quality products.”

Place

Question 2 relates to Place, and Woolies scores highly, according to results of the

survey, with 89% agreeing that indeed they are well located and it is an important

attribute they consider when shopping.

Service

According to Best (2009), at the core of service differentiation is service reliability

and service assurance, which relates to the ability to deliver the promised service,

dependency and accuracy and the employees competency with respect to knowledge

and courtesy respectively.

Questions 12, 13, 15, and 16 relate to Service, with results showing that Woolies is

doing very well in this space. The impression that Woolworths staff leaves on

customers. as revealed by the survey is the one of being competent in relation to the

product knowledge and are available to assist the customer when they purchase. They

are also displaying friendly attitude in the process.

This has contributed in positioning Woolies as a service oriented business, providing

individualised attention to customers, and as a result facilitating an exciting

purchasing experience for its customers.

Price

Woolies, however, is not doing that great on all attributes relating to Price. It is worth

mentioning though that according to the survey results, Woolies is doing great on one

particular aspect of Price, and that is Question 3 – Prices are well marked - the

response is 77%. Those other attributes found lacking are discussed further in the

Recommendations.--- this is questionable. Look at how I changed the answer in

marketing mix (don’t worry, I still have originals). Could require discussion - shabs



Store Environment

Augmenting Woolies’ value proposition very well is their aesthetically pleasing store.

Question 17 relates to this attribute. It received 86% responses all on the upper

portion of factor importance when customers are choosing store to shop. Customers

concede that Woolies stores are aesthetically pleasing. 66% believe that that it is an

extremely important attribute and Woolies are doing just that; keeping their stores

neat and clean. It is evident that Woolies deliberately position a unique ambience in

the mind of their target market, making themselves synonymous to an unforgettable

shopping experience.

Brand Differentiation

The survey does not specifically relates to branding, however, it was considered

reasonable to interpret Woollies brand position in light of the quantitative and

qualitative responses from the survey’s overall responses.

It appears that Woollies’ positioning activities such as location, promotion and good

quality and service resulted in it being noticeable amidst the competitive nature of its

industry. 49% gather information about Woollies and its competitors through

observation, 23% through word of mouth and promotions which provide perspective

regarding the medium through which Woollies brand is developed.

Some of the responses collected include comments that reveal a deeper sense of

emotional connection to Woollies such as “Elite and good quality products and

environmentally friendly and “Value for money in terms of quality” amongst others.

It also indicates strong element of loyalty as indicated in the table below, 91%

purchase from Woollies at least 8 times per month.


Frequency of purchase %

20 times p/m 40%

16 times p/m 14%

8 times p/m 37%

4 times p/m 6%

Information gathering %

Observation 49%

Promotion 23%

Research 6%

Word of Mouth 23%


Figure 10: Loyalty indicator

It is clear from the data analyzed that the marketing strategy that Woolworths has

employed is underpinned by the Product element as well segmentation. The

segmentation adopted is the customer segmentation where it is a deliberate tactic of

this retailer to target the mid to upper income class whose buying decisions are driven

by quality of the product, the variety of the merchandise and attractiveness of the

product (aesthetic quality). Another differentiator is their ability to brand each product

using their retail name; hence the brand becomes a “Woolworth’s brand”. What

Woolies has been able to do successfully is to use the “consumer model buying

behaviour” Annexure A(where’s the diag – shabs) to engage their targeted customers

on a psychological level which works on the “perceived value” that they get from

Woolies on the product in spite of the price. As quoted in a leading article recently

“Woolworths strategy is to target the more discerning consumer”- It would suggest

that the discerning customer is the consumer that is in the upper income band.

In recent times Woolies has set about strengthening their competitive advantage,

amongst which is to reduce costs, hence impacting price. This was done in the recent

economic downturn which resulted in increased market share from competitors. It

would appear Woolies Place strategy is ‘not to put up a Woolies store in an area that

is not perceived to be affluent, or an area whose commercial value is on the decrease.

An example of this is the absence of Woolworths in places such Yeoville which is

considered to have dropped significantly in terms of commercial value and whose

population is mostly the low end income earners. As the survey indicates, it would

suggest that the 91% customers think it is ideally situated, this by inference would

mean that they are in affluent suburbs.



5. Recommendations

(Incomplete –shabs)

Woolworth’s management has already started to address some of the weaknesses

identified, i.e. high prices, lack of breadth in their stock etc. What is important is to

ensure that the implementation of their strategies is efficient and effective to change

perception of the customers. As it stands to date, based on the survey, the prevailing

perception is still the one of high prices and narrow product offering.

5.1 Promotion

The general outlook highlighted by the survey is that Woolworth’s promotional drive

needs to be improved regarding the frequency of its advertisements, the availability

its advertised products in stores and lack of good savings to the customers on those

items.

These observations can significantly render the advertising campaigns void resulting

in negative or immaterial return on investment for the marketing cost. It is therefore,

recommended that Woolworths clearly communicate where the bargains lie in their

promotions. Management should also consider including in their promotions that they

are currently enlarging their existing stores to offer the customers a wider variety of

good quality and good style products. This is will create anticipation and slowly

beginning to change their customers’ current perceptions.

5.2 Service

Even though the impression that the Woolworths staff leaves on customers as

revealed by the survey, is the one of being available to assist and displaying friendly

attitude in the process. The areas that call for attention per the survey are the one

relating to the fast check out and its return policy. Customers may feel locked into a

purchase if the return policy is not revisited which may impact on the brand that it has

been built over a long time.

It is therefore, suggested that Woolworths should be in conjunction with their current

strategies continuously refine the fast check out and its return policy by researching

and implementing best practices. It should also seek to reduce any ambiguity or lack

of clarity in terms of its policy. It is also recommended that Woolworths frequently

educate its customers of its return policy through its communication mediums.



5.3 Price

------------data stripped from end – shabs don’t believe price is problem due to

woollies strat being different and targets different market segnment, read marketing

mix above.

A. As outlined above, 94% of customers agree that Woolworth’s products are of

great quality but not fairly priced. This therefore leads to the conclusion that,

given the fact that most customer purchase more 6 times per month, customer

drive value out of the company products but are not happy with the price.

It is therefore important for Woolworths to embark on the following steps in order to

address the pricing issue:

I. Research and analyse how customers perceive the value of products

and the price they are willing to pay (value-based pricing)

II. Conduct an analysis of competitors’ pricing especially on groceries

III. Consider cutting prices slightly and raise perceived quality

IV. Conduct a price-demand relationship across all product particularly for

everyday products

B. Supply chain

JIT

-------------------------------------------------



References

Where are all the refs? Make sure YOU READ THE REF DOC then add? - shabs



Annexure A

Count of Advertised items are in-stock

Indian WhiteQualifications Age Occupation Female Male Female Male Female Female Male Female Male Female Male Male B Degree 20 - 25 Adminsitrator 1 1

Business Analyst 1 126 - 30 IT Developer 1 1

Specilist 1 131 - 35 Accountant 1 1

IT Developer 2 2Project Manager 1 1Trainer 1 1

36 - 40 Auditor 1 1Head of Collections 1 1

B Degree Total 3 4 1 1 1 1 11Diploma 20 - 25 Officer 1 1

26 - 30 Business Analyst 1 1Sales and Amrketing 1 1

31 - 35 Bookkeeper 1 1Coordinator 1 1Finance Assistant 1 1

36 - 40 Development Manager 1 141 - 45 Administrator 1 1

Diploma Total 1 1 2 1 2 1 8Matric 20 - 25 Student 1 1 2

26 - 30 Supervisor 1 151 plus Receptionist 1 1

Matric Total 1 1 1 1 4Post Grad 26 - 30 Chattered Accountant 1

HR Consultant 1 1Software Dev 1 1

31 - 35 Economist 1 1HR Manager 2 2IT Developer 1 1Legal Officer 1 1Segment Head 1 1

36 - 40 Manager 1 141 - 45 LRA 1 146 - 50 Operations Manager 1 1

Post Grad Total 1 1 2 1 5 1 12

Marital Status

Married SingleAfrican Coloured White African Indian Grand

Total

Figure 1: Woolworths Demographic Profile Table



Figure 3: Marketing Mix (Source: Kotler and Armstrong, 2005: 57)

Gender 22 13 35

Data Female Male Grand Total Female % Male % Total %

Sum of Has what I want 0 0 0 0% 0% 0%Sum of Has what I want2 0 0 0 0% 0% 0%Sum of Has what I want3 2 1 3 9% 8% 9%Sum of Has what I want4 13 5 18 59% 38% 51%Sum of Has what I want5 7 7 14 32% 54% 40%Sum of Large merchandise selection 0 1 1 0% 8% 3%Sum of Large merchandise selection2 2 1 3 9% 8% 9%Sum of Large merchandise selection3 2 3 5 9% 23% 14%Sum of Large merchandise selection4 7 6 13 32% 46% 37%Sum of Large merchandise selection5 11 2 13 50% 15% 37%Sum of High quality merchandise 0 1 1 0% 8% 3%Sum of High quality merchandise2 0 0 0 0% 0% 0%Sum of High quality merchandise3 1 0 1 5% 0% 3%Sum of High quality merchandise4 2 6 8 9% 46% 23%Sum of High quality merchandise5 19 6 25 86% 46% 71%

Figure 4: Product statistics deduced from the survey

Gender 22 13 35




Sum of Prices are well marked 0 1 1 0% 8% 3%Sum of Prices are well marked2 1 2 3 5% 15% 9%Sum of Prices are well marked3 3 1 4 14% 8% 11%Sum of Prices are well marked4 7 7 14 32% 54% 40%Sum of Prices are well marked5 11 2 13 50% 15% 37%Sum of Everyday low prices 1 1 2 5% 8% 6%Sum of Everyday low prices2 2 2 4 9% 15% 11%Sum of Everyday low prices3 7 6 13 32% 46% 37%Sum of Everyday low prices4 8 2 10 36% 15% 29%Sum of Everyday low prices5 4 2 6 18% 15% 17%Sum of Sales are real bargains 1 1 2 5% 8% 6%Sum of Sales are real bargains2 6 4 10 27% 31% 29%Sum of Sales are real bargains3 4 6 10 18% 46% 29%Sum of Sales are real bargains4 4 1 5 18% 8% 14%Sum of Sales are real bargains5 7 1 8 32% 8% 23%

Figure 5: Price statistics deduced from the survey

Gender 22 13 35


Sum of Has what I want 0 0 0 0% 0% 0%Sum of Has what I want2 0 0 0 0% 0% 0%Sum of Has what I want3 2 1 3 9% 8% 9%Sum of Has what I want4 13 5 18 59% 38% 51%Sum of Has what I want5 7 7 14 32% 54% 40%Sum of Location is convenient 0 0 0 0% 0% 0%Sum of Location is convenient2 1 2 3 5% 15% 9%Sum of Location is convenient3 1 0 1 5% 0% 3%Sum of Location is convenient4 9 6 15 41% 46% 43%Sum of Location is convenient5 11 5 16 50% 38% 46%Sum of Advertised items are in-stock 2 3 5 9% 23% 14%Sum of Advertised items are in-stock2 1 0 1 5% 0% 3%Sum of Advertised items are in-stock3 3 3 6 14% 23% 17%Sum of Advertised items are in-stock4 5 5 10 23% 38% 29%Sum of Advertised items are in-stock5 11 2 13 50% 15% 37%Sum of Find what I want on sale 0 4 4 0% 31% 11%Sum of Find what I want on sale2 3 0 3 14% 0% 9%Sum of Find what I want on sale3 10 5 15 45% 38% 43%Sum of Find what I want on sale4 6 3 9 27% 23% 26%Sum of Find what I want on sale5 3 1 4 14% 8% 11%

Figure 6: Place statistics deduced from the survey

Gender 22 13 35


Sum of Fast check-out, even when busy 0 1 1 0% 8% 3%



Sum of Fast check-out, even when busy2 0 1 1 0% 8% 3%Sum of Fast check-out, even when busy3 5 3 8 23% 23% 23%Sum of Fast check-out, even when busy4 6 2 8 27% 15% 23%Sum of Fast check-out, even when busy5 11 6 17 50% 46% 49%Sum of Excellent return policy 0 3 3 0% 23% 9%Sum of Excellent return policy2 0 0 0 0% 0% 0%Sum of Excellent return policy3 4 5 9 18% 38% 26%Sum of Excellent return policy4 8 3 11 36% 23% 31%Sum of Excellent return policy5 10 2 12 45% 15% 34%Sum of Available and helpful staff members 0 3 3 0% 23% 9%Sum of Available and helpful staff members2 0 0 0 0% 0% 0%Sum of Available and helpful staff members3 2 1 3 9% 8% 9%Sum of Available and helpful staff members4 10 6 16 45% 46% 46%Sum of Available and helpful staff members5 10 3 13 45% 23% 37%Sum of Friendly staff members 0 1 1 0% 8% 3%Sum of Friendly staff members2 0 0 0 0% 0% 0%Sum of Friendly staff members3 2 0 2 9% 0% 6%Sum of Friendly staff members4 9 8 17 41% 62% 49%Sum of Friendly staff members5 11 4 15 50% 31% 43%

Figure 7: Service statistics deduced from the survey

Gender 22 13 35


Sum of Easy to find merchandise 0 1 1 0% 8% 3%Sum of Easy to find merchandise2 1 1 2 5% 8% 6%



Sum of Easy to find merchandise3 2 3 5 9% 23% 14%Sum of Easy to find merchandise4 11 7 18 50% 54% 51%Sum of Easy to find merchandise5 8 1 9 36% 8% 26%Sum of Neat and clean environment 0 0 0 0% 0% 0%Sum of Neat and clean environment2 0 0 0 0% 0% 0%Sum of Neat and clean environment3 1 1 2 5% 8% 6%Sum of Neat and clean environment4 5 5 10 23% 38% 29%Sum of Neat and clean environment5 16 7 23 73% 54% 66%Sum of Store is aesthetically pleasing 0 0 0 0% 0% 0%Sum of Store is aesthetically pleasing2 1 1 2 5% 8% 6%Sum of Store is aesthetically pleasing3 1 2 3 5% 15% 9%Sum of Store is aesthetically pleasing4 9 7 16 41% 54% 46%Sum of Store is aesthetically pleasing5 11 3 14 50% 23% 40%

Figure 8: Store Environment statistics deduced from the survey

Gender 22 13 35

Data FemaleMale

Grand Total Female % Male % Total %

Sum of Sales are real bargains 1 1 2 5% 8% 6%Sum of Sales are real bargains2 6 4 10 27% 31% 29%Sum of Sales are real bargains3 4 6 10 18% 46% 29%Sum of Sales are real bargains4 4 1 5 18% 8% 14%Sum of Sales are real bargains5 7 1 8 32% 8% 23%Sum of Advertisements offer good Savings 1 3 4 5% 23% 11%Sum of Advertisements offer good savings2 1 2 3 5% 15% 9%Sum of Advertisements offer good savings3 6 6 12 27% 46% 34%Sum of Advertisements offer good savings4 8 1 9 36% 8% 26%Sum of Advertisements offer good savings5 6 1 7 27% 8% 20%Sum of Has frequent advertising 2 3 5 9% 23% 14%Sum of Has frequent advertising2 3 3 6 14% 23% 17%Sum of Has frequent advertising3 8 4 12 36% 31% 34%Sum of Has frequent advertising4 6 1 7 27% 8% 20%Sum of Has frequent advertising5 3 2 5 14% 15% 14%Sum of Advertised items are in-stock 2 3 5 9% 23% 14%Sum of Advertised items are in-stock2 1 0 1 5% 0% 3%Sum of Advertised items are in-stock3 3 3 6 14% 23% 17%Sum of Advertised items are in-stock4 5 5 10 23% 38% 29%Sum of Advertised items are in-stock5 11 2 13 50% 15% 37%

Figure 9: Promotion statistics deduced from the survey



Gender 22 13 35Question

s Strategy deduction


Doing well Moderate Poor

Sum of Has what I want 0 0 0 0% 0% 0% 1 Sum of Has what I want2 0 0 0 0% 0% 0% Sum of Has what I want3 2 1 3 9% 8% 9% xSum of Has what I want4 13 5 18 59% 38% 51% x Sum of Has what I want5 7 7 14 32% 54% 40% x Sum of Location is convenient 0 0 0 0% 0% 0% 2 Sum of Location is convenient2 1 2 3 5% 15% 9% xSum of Location is convenient3 1 0 1 5% 0% 3% xSum of Location is convenient4 9 6 15 41% 46% 43% x Sum of Location is convenient5 11 5 16 50% 38% 46% x Sum of Prices are well marked 0 1 1 0% 8% 3% 3 Sum of Prices are well marked2 1 2 3 5% 15% 9% xSum of Prices are well marked3 3 1 4 14% 8% 11% x Sum of Prices are well marked4 7 7 14 32% 54% 40% x Sum of Prices are well marked5 11 2 13 50% 15% 37% x Sum of Fast check-out, even when busy 0 1 1 0% 8% 3% 4 Sum of Fast check-out, even when busy2 0 1 1 0% 8% 3% Sum of Fast check-out, even when busy3 5 3 8 23% 23% 23% x Sum of Fast check-out, even when busy4 6 2 8 27% 15% 23% x Sum of Fast check-out, even when busy5 11 6 17 50% 46% 49% x Sum of Everyday low prices 1 1 2 5% 8% 6% 5 Sum of Everyday low prices2 2 2 4 9% 15% 11% xSum of Everyday low prices3 7 6 13 32% 46% 37% x Sum of Everyday low prices4 8 2 10 36% 15% 29% x Sum of Everyday low prices5 4 2 6 18% 15% 17% xSum of Easy to find merchandise 0 1 1 0% 8% 3% 6 Sum of Easy to find merchandise2 1 1 2 5% 8% 6% xSum of Easy to find merchandise3 2 3 5 9% 23% 14% x



Sum of Easy to find merchandise4 11 7 18 50% 54% 51% x Sum of Easy to find merchandise5 8 1 9 36% 8% 26% x Sum of Large merchandise selection 0 1 1 0% 8% 3% 7 Sum of Large merchandise selection2 2 1 3 9% 8% 9% xSum of Large merchandise selection3 2 3 5 9% 23% 14% x Sum of Large merchandise selection4 7 6 13 32% 46% 37% x Sum of Large merchandise selection5 11 2 13 50% 15% 37% x Sum of Sales are real bargains 1 1 2 5% 8% 6% 8 Sum of Sales are real bargains2 6 4 10 27% 31% 29% x Sum of Sales are real bargains3 4 6 10 18% 46% 29% x Sum of Sales are real bargains4 4 1 5 18% 8% 14% xSum of Sales are real bargains5 7 1 8 32% 8% 23% x Sum of Merchandise breadth in all Departments 0 2 2 0% 15% 6% 9 Sum of Merchandise breadth in all departments2 1 3 4 5% 23% 11% xSum of Merchandise breadth in all departments3 8 3 11 36% 23% 31% x Sum of Merchandise breadth in all departments4 8 3 11 36% 23% 31% x Sum of Merchandise breadth in all departments5 5 2 7 23% 15% 20% xSum of High quality merchandise 0 1 1 0% 8% 3% 10 Sum of High quality merchandise2 0 0 0 0% 0% 0% Sum of High quality merchandise3 1 0 1 5% 0% 3% xSum of High quality merchandise4 2 6 8 9% 46% 23% x Sum of High quality merchandise5 19 6 25 86% 46% 71% x Sum of Advertised items are in-stock 2 3 5 9% 23% 14% 11 xSum of Advertised items are in-stock2 1 0 1 5% 0% 3% Sum of Advertised items are in-stock3 3 3 6 14% 23% 17% x Sum of Advertised items are in-stock4 5 5 10 23% 38% 29% x Sum of Advertised items are in-stock5 11 2 13 50% 15% 37% x Sum of Excellent return policy 0 3 3 0% 23% 9% 12 x



Sum of Excellent return policy2 0 0 0 0% 0% 0% Sum of Excellent return policy3 4 5 9 18% 38% 26% x Sum of Excellent return policy4 8 3 11 36% 23% 31% x Sum of Excellent return policy5 10 2 12 45% 15% 34% x Sum of Neat and clean environment 0 0 0 0% 0% 0% 13 Sum of Neat and clean environment2 0 0 0 0% 0% 0% Sum of Neat and clean environment3 1 1 2 5% 8% 6% xSum of Neat and clean environment4 5 5 10 23% 38% 29% x Sum of Neat and clean environment5 16 7 23 73% 54% 66% x Sum of Advertisements offer good savings 1 3 4 5% 23% 11% 14 x Sum of Advertisements offer good savings2 1 2 3 5% 15% 9% xSum of Advertisements offer good savings3 6 6 12 27% 46% 34% x Sum of Advertisements offer good savings4 8 1 9 36% 8% 26% x Sum of Advertisements offer good savings5 6 1 7 27% 8% 20% x Sum of Available and helpful staff members 0 3 3 0% 23% 9% 15 xSum of Available and helpful staff members2 0 0 0 0% 0% 0% Sum of Available and helpful staff members3 2 1 3 9% 8% 9% xSum of Available and helpful staff members4 10 6 16 45% 46% 46% x Sum of Available and helpful staff members5 10 3 13 45% 23% 37% x Sum of Friendly staff members 0 1 1 0% 8% 3% 16 xSum of Friendly staff members2 0 0 0 0% 0% 0% Sum of Friendly staff members3 2 0 2 9% 0% 6% xSum of Friendly staff members4 9 8 17 41% 62% 49% x Sum of Friendly staff members5 11 4 15 50% 31% 43% x Sum of Store is aesthetically pleasing 0 0 0 0% 0% 0% 17 Sum of Store is aesthetically pleasing2 1 1 2 5% 8% 6% xSum of Store is aesthetically pleasing3 1 2 3 5% 15% 9% xSum of Store is aesthetically pleasing4 9 7 16 41% 54% 46% x Sum of Store is aesthetically pleasing5 11 3 14 50% 23% 40% x Sum of Find what I want on sale 0 4 4 0% 31% 11% 18 xSum of Find what I want on sale2 3 0 3 14% 0% 9% xSum of Find what I want on sale3 10 5 15 45% 38% 43% x



Sum of Find what I want on sale4 6 3 9 27% 23% 26% x Sum of Find what I want on sale5 3 1 4 14% 8% 11% xSum of Has clothing styles I like 0 2 2 0% 15% 6% 19 n/a Sum of Has clothing styles I like2 1 2 3 5% 15% 9% Sum of Has clothing styles I like3 2 3 5 9% 23% 14% Sum of Has clothing styles I like4 10 5 15 45% 38% 43% Sum of Has clothing styles I like5 9 1 10 41% 8% 29% Sum of Has high quality clothing 0 1 1 0% 8% 3% 20 n/a Sum of Has high quality clothing2 0 1 1 0% 8% 3% Sum of Has high quality clothing3 2 2 4 9% 15% 11% Sum of Has high quality clothing4 4 8 12 18% 62% 34% Sum of Has high quality clothing5 16 1 17 73% 8% 49% Sum of Has frequent advertising 2 3 5 9% 23% 14% 21 xSum of Has frequent advertising2 3 3 6 14% 23% 17% xSum of Has frequent advertising3 8 4 12 36% 31% 34% x Sum of Has frequent advertising4 6 1 7 27% 8% 20% x Sum of Has frequent advertising5 3 2 5 14% 15% 14% xSum of Has latest style clothing 1 2 3 5% 0% 9% 22n/a Sum of Has latest style clothing2 0 0 0 0% 38% 0% Sum of Has latest style clothing3 5 5 10 23% 38% 29% Sum of Has latest style clothing4 7 5 12 32% 8% 34% Sum of Has latest style clothing5 9 1 10 41% 15% 29%

Figure 10: Data summary for all questions



Annexure B(I don’t think this is correct, my name is not allocated to the right ppl, also not clear -

shabs)

Name B. Nkosi D. Ellapp I. Chironda I. Ntuli L. Bulo L. Ndlovu L. Nzama N. Julius N. Thekiso P. Pillay S. Rampersadh Grand TotalAnnet Gouws 1 1Darren Levine 1 1Deli Khambule 1 1Elena Williams 1 1Kassy Govender 1 1Kathleen 1 1Kerry Vandrali 1 1Krishanta Naidoo 1 1Lerato Serobatse 1 1Leroi Raputsoane 1 1Liesl Belelie 1 1Lisa Mpulu 1 1Lucia Smith 1 1Lungile Xulu 1 1Lydia Mdaka 1 1Mandie Dalton 1 1Marufu Dhakwa 1 1Memory Changachirere 1 1Mukondi Sikhwivhilu 1 1Nombuso Nkosi 1 1Nomsa Luthuli 1 1Nthabiseng Mthimkhulu 1 1Shame Sadindi 1 1Stella Carter 1 1Sudashini Gounden 1 1Tetanda Sangare 1 1Wellington Kanokanga 1 1William Jacques Smith 1 1Yvonne van Zyl 1 1Zakhele Mbatha 1 1Pooven Govender 1 1Andrew Smith 1 1Jobe Zulu 1 1Anthonio Fritz 1 1Ntombi Dlomo 1 1Grand Total 4 4 3 3 3 3 3 3 3 3 3 35

Figure 1: Survey Moderators and Customer Sample



Annexure CIndividual Customer Responses (Incomplete- shabs)

WOOLWORTHS CUSTOMER SURVEY Demographic Data

Name of customer Leroi RaputsoanePlace of interaction with customer Menlyn mallDate of interaction with customer Latest – 2010/06/01Age 35Gender MaleEducation PostgraduateRace AfricanOccupation Financial servicesMarital status SingleIncome (gross income)

R1 - 5000pm R15 – 25000pmX

R25 - 35000pm Plus R35000pm

Housing status (own/renting) OwnHousehold size 1Do you often purchase from Woolworths or other retailer? If other, please specify

Edgars,- how does impact the fact that we chose foods? -shabs

How many times a month do you purchase from Woolworths?

1

What the company does well relative to competition?

Practicality

What the company does poorly relative to competition?

Overly basic quality

How do you gather information about Woolworths and its competitors? Research Word of mouth

XObservation Promotions/ Adverts

Which of the following attributes influence your decision for selecting Woolworths?

Not at all important

Least Important

Neutral Very Important

Extremely Important

1 2 3 4 5

1. Has what I want X2. Location is convenient X3. Prices are well marked X4. Fast check-out, even when busy X5. Everyday low prices X6. Easy to find merchandise X7. Large merchandise selection X8. Sales are real bargains X9. Merchandise breadth in all departments X10. High quality merchandise X11. Advertised items are in-stock X12. Excellent return policy X13. Neat and clean environment X14. Advertisements offer good savings X15. Available and helpful staff members X16. Friendly staff members X17. Store is aesthetically pleasing X18. Find what I want on sale X19. Has clothing styles I like X20. Has high quality clothing X21. Has frequent advertising X22. Has latest style clothing X23. Woolworths brand X



24. Competitive prices X25. More frequent sales promotion X26. Aisles are well marked and spaced X27. Merchandise is correctly grouped X28. Merchandise is easily accessible X


MBL913M_JHB0410A_2010_-_Assignment2_v3.0_Positioning1.0[1]

Documents

Transcript of MBL913M_JHB0410A_2010_-_Assignment2_v3.0_Positioning1.0[1]