MARKETING ANALYSIS IN SAGA FALABELLA

QUESTIONS

1. What consumer segment does the company target?

To all types of consumers because it is a department store (home objects, clothing,

toys, home appliances, technology, etc.)

2. How you determine needs and wants

There is a big difference between need and desire, in this case Saga Falabella
determines needs and desires through the consumer's relationship with its products. To
specify desires, they take into account several factors, such as fashion trends, the
relationship and combination that products should have with each other and how they
are associated in the consumer's mind. However, the needs are established as
essential items, pardon the redundancy, that is, clothing such as polo shirts, pants,
shirts or even footwear that is not necessarily from a recognized brand.

3. What products or services the organization offers (include their features,

benefits and objectives to satisfy its consumers.

Saga Falabella sells a varied amount of products through its chain of department stores.
These stores have established categories which are: furniture, bedrooms, sports,
children, women's fashion, men's fashion, shoes, accessories, which include clothing.
clothing, beauty items, appliances, hardware, toys, home appliances, technology,
among others. Aiming to be able to satisfy consumer demand by providing a convenient
offer for each need and dedicate itself to the retail sale of national and imported
merchandise, taking into account the wide variety of products that it can offer to its
customers.

4. What are your pricing strategies, including your discount policies.

Saga Falabella, throughout its history, has used several “pricing strategies” based on all
those marketing resources that the company develops, consisting of modifying the
prices of its products. The company projects and communicates a perceptible and clear
image so that it is perceived in the medium and long term. Such as, for example, a
strategy aimed at offering prices lower, higher or equal to the average market prices.
Below are some of the strategies that Falabella uses:

o Price Skimming Strategy

o Penetration Pricing Strategy
o Prestige Pricing Strategy
o Competition Oriented Pricing Strategy

5. What promotional strategies they use and what they emphasize to position
the product(s) or service(s).

Saga Falabella, carries out several promotional strategies of which one was the “Cyber
WOW” (an event to promote electronic commerce, organized by the Interactive
Advertising Bureau), where it participated with a variety of offers according to
categories, taking into account that its advertising system The most convenient and
flexible payment is through the introduction of the CMR card, in which you will be able to
access various offers on the products available. In addition, to implement pendants
communicating 50% discounts on products from selected brands and if the CMR credit
card was available, an additional 10% discount would be granted.

What it emphasizes to position the products is through the approach of the image
strategy through a marketing study, which allows them to know what is monopolizing
the market according to seasons.

6. How they distribute their products and what problems they have
encountered.

Since its inception, the distribution center has been working with the Wareflow
warehouse supply system (SAB) to control the process from the entry to the exit of the
merchandise. Its use was taking some factors as constants, because it was not
necessary to enter all the information required by the system since the volume of article
rotation did not require it. With the growth in demand, an increase in stores in Lima and
the provinces, the volume of orders increased, which led to the physical expansion of
the distribution center and therefore led to an improvement in the processes which were
not being fulfilled efficiently in meeting orders. generated by stores and direct
customers. The improvement of the processes will be achieved by implementing the
100% warehouse supply system, for which it is necessary to have additional information
such as the dimensions of the items, the values of the logistic variables among other
information to be able to classify the products according to rotation through ABC
classification, once the products are classified and having other additional parameters,
the locations for the storage of the products can be established. With the expansion of
the Distribution Center and the changes in the processes of reception, storage,
distribution, dispatch to improve employee productivity indicators, efficient fulfillment of
high order volumes, reduction of processing costs, storage and distribution of
merchandise which is the objective of the distribution center.

7. How they do marketing planning and who does it.

The Marketing area constantly seeks to be in contact with the end customer through
advertising channels and promotions. It is carried out by María Alessandra Camet
Bertello (PRODUCT MANAGER MARKETING IN SAGA FALABELLA) . Since 2016,
he has been in charge of developing and executing marketing strategies for the store's
different own and exclusive brands.

8. Whether social responsibility is part of the marketing program, and if so, in

what ways.

Yes, Saga Falabella and the social responsibility programs they have with which they
try to contribute in this way to the development of the country.

Doing School: It is a program that they work with Fe y Alegría schools in which,
through their corporate volunteer program, their associates offer their talent and skills in
different subjects, teaching and helping children. For example, teaching football, art, etc.

One brick, one sun : It is an internal campaign for workers to contribute one sun that is
deducted from their paychecks and serves to finance more classrooms or other needs
of these schools. “We have built a computer room, also donating computers, a clothing
industry workshop, where young people are taught about fashion, etc.,” said Jimena.

The Virtuoso Circle: It is a program that allows graduates of Fe y Alegría schools to

work at Saga Falabella, fulfilling part-time schedules so that they can generate an
income that allows them to continue studying or contribute to their homes.

Coach Exit: They invite company executives to be mentors for children and young
people and encourage them to follow their dreams and goals, motivate them to move
forward, to think that there are no limits to their growth and accompany them to learn
about the different areas and the value cycle of the company so that they can choose
what career they want to follow, what they want to become, where they see themselves
in the future.
Sharing experiences: An average of 100 people who are older adults, in vulnerable
situations, are invited to work as packaging monitors and supervise young people. This
has worked very well, it is offered part-time and for specific campaigns such as Mother's
Day or Christmas.

Labor inclusion for women in vulnerable situations: This program is carried out with
Comex Perú, the Chilean-Peruvian Business Center, Fe y Alegría schools and the
Falabella Group. It is intended that all retail companies include women at risk and give
them the opportunity for a job. “A training program has been carried out with Comex that
lasts two months and where these women learn different skills to develop in different
positions within retail companies, both in Saga and Totus. They can work as
salespeople, stockers, bakers (Totus), etc. We seek to give them decent jobs that can
contribute to the family basket,” Jimena commented.

Sharing dreams: It is an internal program in which, every three months, workers can
write down their dream and present it. It is reviewed by a committee and the company
gives a bonus to the selected dreamer. “For example, the dream of one of our
collaborators, Evelyn, from the accounting area, was to get money for the post-
operative treatment of her son who had heart surgery. These are things that may seem
small but mean a lot to our collaborators.”

Insertion of people with disabilities : Saga Falabella has been working with the Ann
Sullivan Center for several years, hiring people with different abilities. “So far we have
56 people and we hope to reach 100 by the end of the year. “We want to show them
that there is equity and that we are offering the same opportunities as other people.”

REPORT

Mainly this is a company recognized throughout Latin America, due to the great benefit
it provides to its companies by being a department store, having different branches such
as in Chile, Argentina, Colombia, Mexico and Peru where you can find a wide variety of
articles. When conducting research on Saga Falabella, we realized that its main
objective is to present customers with a Unique experience, where the marketing tool
intervenes, which mainly helps with online sales and purchases, taking into account that
Now due to this pandemic that has been affecting the entire world, this is one of the
most preferable options since you do not want to have losses.

On the other hand, this one had the initiative that no other company had to extend its
department stores to the province, being the first and having a great increase in sales in
recent years. We also managed to realize that like any other company, this one had its
weaknesses, one of the main ones was the excess of working hours towards its workers
because they worked more than 8 hours a day than defined by law, and could be sued
for not complying with the standards. established by the State. As well as its
weaknesses, it also has its strengths such as the solidity and experience of the
shareholders and a solid professional team, which helps a lot with the sales and/or
profits made.

Also the message that social responsibility gives, which mainly helps in multiple factors
for the advancement and development of the country.

Finally, we were surprised by the strategies that the company decided to opt for as its
expansion, which is supported by the activities of Banco Falabella Perú, which manages
the CMR and CMR Visa credit cards, and the expansion of its operations around the
retail business, whether through the opening of new stores and/or expansion of existing
ones, offering a great diversity of quality products to the consumer.

CONCLUSIONS

Within the research work carried out, we have learned that Saga Falabella is the leading
company in its field currently, thus constantly competing with other large companies.
Within the Marketing area, it constantly seeks to be in contact with the customer through
advertising channels and promotions in order to obtain profits for its high quality
products and its sustainability in the market is due to the use of support policies inside
and outside of the company.

INFORMATION SOURCES:

https://repositorioacademico.upc.edu.pe/bitstream/handle/10757/625248/
CastilloJ_A.pdf?sequence=6&isAllowed= and
http://www.marketersbyadlatina.com/articulo/4064-qui%C3%A9n-es-qui%C3%A9n-en-
el-marketing-del-retail-en-per%C3%BA-

https://alicia.concytec.gob.pe/vufind/Record/
UUNI_30db086d6df62fd831a791b7c4aa176a

MEMBERS:

 Geraldine Maccha Borja

 Paola Antay Carrillo
 Jimena Espinal Espinoza