MBL 1 Unisa SBL: Course Code: MBL 913M Group: Jhb0410A YEAR: 2010

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...............................................................................................................3
1.1 The History of Woolworths.........................................................................3
1.2 Woolworths Values......................................................................................3
1.3 Business Strategy.........................................................................................3
1.4 Retail Formats..............................................................................................4
2. Demographic Profile of Customers of the Woolies Food Format.............................5
2.1 Definition.....................................................................................................5
2.2 Demographic Profile....................................................................................5
3. Profile of Marketing Mix...........................................................................................6
3.1 Product.........................................................................................................6
3.2 Price..............................................................................................................7
3.3 Place.............................................................................................................8
3.4 Service..........................................................................................................9
3.5 Store Environment.....................................................................................10
3.5 Promotion...................................................................................................11
4. Positioning and Marketing Strategy.........................................................................13
5. Recommendations....................................................................................................17
5.1 Promotion...................................................................................................17
5.2 Service........................................................................................................17
5.3 Price............................................................................................................18
References....................................................................................................................19
Annexure A..................................................................................................................20
Annexure B..................................................................................................................29
Annexure 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)
MARITAL
AGE % EDUCATION % RACE % GENDER % %
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.
Information gathering % Frequency of purchase %

Observation 49% 20 times p/m 40%
Promotion 23% 16 times p/m 14%
Research 6% 8 times p/m 37%
Word of Mouth 23% 4 times p/m 6%

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
MBL 1 Peats Group

Annexure A
Count of Advertised items are in-stock Marital Status
Married Single
African Coloured Indian White African Indian White Grand
Qualifications Age Occupation Female Male Female Male Female Female Male Female Male Female Male Male Total
B Degree 20 - 25 Adminsitrator 1 1
Business Analyst 1 1
26 - 30 IT Developer 1 1
Specilist 1 1
31 - 35 Accountant 1 1
IT Developer 2 2
Project Manager 1 1
Trainer 1 1
36 - 40 Auditor 1 1
Head of Collections 1 1
B Degree Total 3 4 1 1 1 1 11
Diploma 20 - 25 Officer 1 1
26 - 30 Business Analyst 1 1
Sales and Amrketing 1 1
31 - 35 Bookkeeper 1 1
Coordinator 1 1
Finance Assistant 1 1
36 - 40 Development Manager 1 1
41 - 45 Administrator 1 1
Diploma Total 1 1 2 1 2 1 8
Matric 20 - 25 Student 1 1 2
26 - 30 Supervisor 1 1
51 plus Receptionist 1 1
Matric Total 1 1 1 1 4
Post Grad 26 - 30 Chattered Accountant 1
HR Consultant 1 1
Software Dev 1 1
31 - 35 Economist 1 1
HR Manager 2 2
IT Developer 1 1
Legal Officer 1 1
Segment Head 1 1
36 - 40 Manager 1 1
41 - 45 LRA 1 1
46 - 50 Operations Manager 1 1
Post Grad Total 1 1 2 1 5 1 12
Figure 1: Woolworths Demographic Profile Table
MBL 1 Peats Group

Products
Variety Price
Quality List Price
Design Discounts
Features Allowances
Brand Name Payment Period
Packaging Credit Terms
Service
Target
Customers
Intended
Positioning
Place
Channels
Promotion
Coverage
Advertising
Assortments
Personal Selling
Locations
Sales Promotion
Inventory
Public Relations
Transportation
Logistics
Figure 3: Marketing Mix (Source: Kotler and Armstrong, 2005: 57)
Gende
r 22 13 35
Grand
Data Female Male 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 Large merchandise selection 0 1 1 0% 8% 3%
Sum of Large merchandise selection2 2 1 3 9% 8% 9%
Sum of High quality merchandise 0 1 1 0% 8% 3%
Sum of High quality merchandise2 0 0 0 0% 0% 0%
Figure 4: Product statistics deduced from the survey
Gender 22 13 35
Grand
MBL 1 Peats Group

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 Everyday low prices 1 1 2 5% 8% 6%
Sum of Everyday low prices2 2 2 4 9% 15% 11%
Sum of Sales are real bargains 1 1 2 5% 8% 6%
Sum of Sales are real bargains2 6 4 10 27% 31% 29%
Figure 5: Price statistics deduced from the survey
Gender 22 13 35
Grand
Sum of Has what I want 0 0 0 0% 0% 0%
Sum of Location is convenient 0 0 0 0% 0% 0%
Sum of Location is convenient2 1 2 3 5% 15% 9%
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 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%
Figure 6: Place statistics deduced from the survey
Gender 22 13 35
Gran
d
Sum of Fast check-out, even when 0 1 1 0% 8% 3%
MBL 1 Peats Group

busy
Sum of Fast check-out, even when
busy2 0 1 1 0% 8% 3%
busy3 5 3 8 23% 23% 23%
busy4 6 2 8 27% 15% 23%
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 Available and helpful staff
members 0 3 3 0% 23% 9%
members2 0 0 0 0% 0% 0%
members3 2 1 3 9% 8% 9%
members4 10 6 16 45% 46% 46%
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%
Figure 7: Service statistics deduced from the survey
Gender 22 13 35
Grand
Sum of Easy to find merchandise 0 1 1 0% 8% 3%
MBL 1 Peats Group

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

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 Store is aesthetically
pleasing 0 0 0 0% 0% 0%
pleasing2 1 1 2 5% 8% 6%
pleasing3 1 2 3 5% 15% 9%
pleasing4 9 7 16 41% 54% 46%
pleasing5 11 3 14 50% 23% 40%
Figure 8: Store Environment statistics deduced from the survey
Gender 22 13 35
Mal Grand
Data Female e Total Female % Male % Total %
Sum of Sales are real bargains 1 1 2 5% 8% 6%
Sum of Advertisements offer good
Savings 1 3 4 5% 23% 11%
savings2 1 2 3 5% 15% 9%
savings3 6 6 12 27% 46% 34%
savings4 8 1 9 36% 8% 26%
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 Advertised items are in-stock 2 3 5 9% 23% 14%
Figure 9: Promotion statistics deduced from the survey
MBL 1 Peats Group

Question
Gender 22 13 35 s Strategy deduction
Grand Doing
Data Female Male Total Female % Male % Total % well Moderate Poor
Sum of Has what I want 0 0 0 0% 0% 0% 1
Sum of Has what I want3 2 1 3 9% 8% 9% x
Sum of Location is convenient 0 0 0 0% 0% 0% 2
Sum of Location is convenient2 1 2 3 5% 15% 9% 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% 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 Everyday low prices 1 1 2 5% 8% 6% 5
Sum of Everyday low prices2 2 2 4 9% 15% 11% x
Sum of Easy to find merchandise 0 1 1 0% 8% 3% 6
Sum of Easy to find merchandise2 1 1 2 5% 8% 6% x
MBL 1 Peats Group


Sum of Large merchandise selection 0 1 1 0% 8% 3% 7
Sum of Large merchandise selection2 2 1 3 9% 8% 9% 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 Merchandise breadth in all
Departments 0 2 2 0% 15% 6% 9
departments2 1 3 4 5% 23% 11% x
departments3 8 3 11 36% 23% 31% x
departments4 8 3 11 36% 23% 31% x
departments5 5 2 7 23% 15% 20% x
Sum of High quality merchandise 0 1 1 0% 8% 3% 10
Sum of High quality merchandise3 1 0 1 5% 0% 3% x
Sum of Advertised items are in-stock 2 3 5 9% 23% 14% 11 x
Sum of Advertised items are in-stock3 3 3 6 14% 23% 17% x
Sum of Excellent return policy 0 3 3 0% 23% 9% 12 x
MBL 1 Peats Group


Sum of Excellent return policy3 4 5 9 18% 38% 26% x
Sum of Neat and clean environment 0 0 0 0% 0% 0% 13
Sum of Neat and clean environment3 1 1 2 5% 8% 6% 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% x
Sum of Available and helpful staff members 0 3 3 0% 23% 9% 15 x
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% x
Sum of Friendly staff members 0 1 1 0% 8% 3% 16 x
Sum of Friendly staff members3 2 0 2 9% 0% 6% 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% x
Sum of Find what I want on sale 0 4 4 0% 31% 11% 18 x
Sum of Find what I want on sale2 3 0 3 14% 0% 9% x
MBL 1 Peats Group


Sum 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 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 frequent advertising 2 3 5 9% 23% 14% 21 x
Sum of Has frequent advertising2 3 3 6 14% 23% 17% x
Sum 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%
Figure 10: Data summary for all questions
MBL 1 Peats Group

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 Total
Annet Gouws 1 1
Darren Levine 1 1
Deli Khambule 1 1
Elena Williams 1 1
Kassy Govender 1 1
Kathleen 1 1
Kerry Vandrali 1 1
Krishanta Naidoo 1 1
Lerato Serobatse 1 1
Leroi Raputsoane 1 1
Liesl Belelie 1 1
Lisa Mpulu 1 1
Lucia Smith 1 1
Lungile Xulu 1 1
Lydia Mdaka 1 1
Mandie Dalton 1 1
Marufu Dhakwa 1 1
Memory Changachirere 1 1
Mukondi Sikhwivhilu 1 1
Nombuso Nkosi 1 1
Nomsa Luthuli 1 1
Nthabiseng Mthimkhulu 1 1
Shame Sadindi 1 1
Stella Carter 1 1
Sudashini Gounden 1 1
Tetanda Sangare 1 1
Wellington Kanokanga 1 1
William Jacques Smith 1 1
Yvonne van Zyl 1 1
Zakhele Mbatha 1 1
Pooven Govender 1 1
Andrew Smith 1 1
Jobe Zulu 1 1
Anthonio Fritz 1 1
Ntombi Dlomo 1 1
Grand Total 4 4 3 3 3 3 3 3 3 3 3 35
Figure 1: Survey Moderators and Customer Sample
MBL 1 Peats Group

Annexure C
Individual Customer Responses (Incomplete- shabs)
WOOLWORTHS CUSTOMER SURVEY

Demographic Data
Name of customer Leroi Raputsoane
Place of interaction with customer Menlyn mall
Date of interaction with customer Latest – 2010/06/01
Age 35
Gender Male
Education Postgraduate
Race African
Occupation Financial services
Marital status Single
Income (gross income) X
R1 - 5000pm R15 – 25000pm R25 - 35000pm Plus R35000pm
Housing status (own/renting) Own
Household size 1
Do you often purchase from Woolworths Edgars,- how does impact the fact that we chose foods?
or other retailer? If other, please specify -shabs
How many times a month do you 1
purchase from Woolworths?
What the company does well relative to Practicality
competition?
What the company does poorly relative Overly basic quality
to competition?
How do you gather information about X
Woolworths and its competitors? Research Word of mouth Observation Promotions/ Adverts
Which of the following attributes influence Not at all Least Neutral Very Extremely
important Important Important Important
your decision for selecting Woolworths?
1 2 3 4 5
1. Has what I want X

2. Location is convenient X
3. Prices are well marked X
4. Fast check-out, even when busy X
5. Everyday low prices X
6. Easy to find merchandise X
7. Large merchandise selection X
8. Sales are real bargains X
9. Merchandise breadth in all departments X
10. High quality merchandise X
11. Advertised items are in-stock X
12. Excellent return policy X
13. Neat and clean environment X
14. Advertisements offer good savings X
15. Available and helpful staff members X
16. Friendly staff members X
17. Store is aesthetically pleasing X
18. Find what I want on sale X
19. Has clothing styles I like X
20. Has high quality clothing X
21. Has frequent advertising X
22. Has latest style clothing X
23. Woolworths brand X
MBL 1 Peats Group

24. Competitive prices X

25. More frequent sales promotion X
26. Aisles are well marked and spaced X
27. Merchandise is correctly grouped X
28. Merchandise is easily accessible X
MBL 1 Peats Group

MBL 1 Unisa SBL: Course Code: MBL 913M Group: Jhb0410A YEAR: 2010

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MBL 1: 913M – (2010) Marketing Management

COURSE CODE: MBL 913M

Student Name Student Number Individual Contribution %

MBL 1 Peats Group 1

MBL 1 Peats Group 2

1.1 The History of Woolworths

1.3 Business Strategy

MBL 1 Peats Group 3

 Utilise customer information database to drive promotions and store

1.4 Retail Formats

MBL 1 Peats Group 4

2. Demographic Profile of Customers of the Woolies Food Format

2.2 Demographic Profile

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

MBL 1 Peats Group 5

3. Profile of Marketing Mix

MBL 1 Peats Group 6

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

MBL 1 Peats Group 7

MBL 1 Peats Group 8

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

MBL 1 Peats Group 9

3.5 Store Environment

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

MBL 1 Peats Group 10

MBL 1 Peats Group 11

 37% believe that sales are a bargain

MBL 1 Peats Group 12

4. Positioning and Marketing Strategy

MBL 1 Peats Group 13

MBL 1 Peats Group 14

Information gathering % Frequency of purchase %

MBL 1 Peats Group 15

Figure 10: Loyalty indicator

MBL 1 Peats Group 16

MBL 1 Peats Group 17

MBL 1 Peats Group 18

MBL 1 Peats Group

Figure 1: Woolworths Demographic Profile Table

MBL 1 Peats Group

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

MBL 1 Peats Group

Sum of Prices are well marked 0 1 1 0% 8% 3%

MBL 1 Peats Group

MBL 1 Peats Group

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

MBL 1 Peats Group

MBL 1 Peats Group

Sum of Easy to find merchandise4 11 7 18 50% 54% 51% x

MBL 1 Peats Group

Sum of Excellent return policy2 0 0 0 0% 0% 0%

MBL 1 Peats Group

Sum of Find what I want on sale4 6 3 9 27% 23% 26% x

MBL 1 Peats Group