RETAIL MARKETING

SHOPTALK


Three years ago at the ECR conference one of the guest speakers presented the findings of a shopper "priorities" survey. Price came in at about 5th after freshness, cleanliness, service etc. One retail executive disputed that this could even be remotely true as he believed that price was at the forefront of every purchasing decision.

Woolworths have proved that this is not the case, and yet still there has been very little change in marketing tactics from the supermarket groups. Last week in our community newspaper we got 9 broadsheets including 3 from Pick 'n Pay and 2 from Shoprite, claiming to offer rock bottom prices, just as their television adverts do. But in real terms the differences over a basket of products is negligible.

I don't believe that this advertising strategy works - it does nothing to build loyalty nor does it differentiate the retailer from their competitors. Broadsheets may still have a place but retailers need to give shoppers more reason to visit their stores - they need to improve the experience. As Woolworths have proved, consumers will pay slightly more for a better experience.

By cutting your margin to the bone is never a good way to do business as the company will invariably compensate elsewhere - supply chain, staff, and store infrastructure - and these all impact on the shoppers' experience. A supermarket that is making money will be investing it in infrastructure that will land product in their store cheaper than their competitors.

You should be able to see how profitable a store is just by waking into it. It will look great, there will be lots of people in it (which means the prices won't be too high), the staff will be friendly and the produce will be fresh. People are not enticed into a store like that because the broad sheet says they will pay 5c less for a can of beans!

Craig Ballantyne
craig@fastmoving.co.za

Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za

NEWSBYTES

Shopping centres come to the anti-crime party
Businesses are not sitting back when it comes to shopping centre crime. The Consumer Goods Council of South Africa (CGCSA) and the South African Council of Shopping Centres have joined forces under the auspices of Business Against Crime to plan counter-strategies. So says Michael Broughton, director of CGCSA's Crime Prevention Programme.
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Massmart Moresport call it quits
Massmart's proposed acquisition of Moresport has been abandoned in the wake of the competition tribunal's decision to prohibit the deal. In April the tribunal ruled that the merger should be prohibited.
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Spar liquor stores threatening smaller players
The dramatic roll-out of the Spar Group's Tops liquor stores is affecting the market share of smaller players. The company has moved quickly into the liquor trade and supplies nearly 200 Tops stores located alongside its supermarkets.
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National Credit Regulator comes into effect
The National Credit Regulator (NCR) came into effect last week Thursday, aiming to protect consumers from reckless lending, high interest rates and unfair lending practices.
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SPECIAL FEATURES

Playing nicely
By Gary Carp - Glendinning Management Consultants
Until very recently the only place that shoppers could receive promotional offers of "3 for 2" or "Buy one get one free" was Clicks. Shoprite however are rocking this status quo and it's beginning to ruffle everyone's feathers.
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Zapping the TV advert, how will packaging respond?
By Alan Chaitel - Uptown Design
The need to customise our product is becoming increasingly important. We have all read about the climbing numbers of consumer point of purchase decisions. The need to flight TV commercials more often today that 10 years ago to gain the same impact is also on the rise. All this means is that your packaging has to work even harder.
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FEATURED BRAND

New Freedom The trusted name in Feminine care. Read more.

BRAND NEW

NEW! Elastoplast heals with super speed Elastoplast, South Africa's no. 1 plaster brand, brings consumers Elastoplast Superman plasters for when the little super-hero in their life gets hurt. With the NEW Elastoplast Superman plasters they can take the worry out of life's little bumps, healing their super-hero's sore fingers, elbows and knees with super speed. Read more.

NEW! Bic launches new triple bladed razor for women Bic has launched Bic Pure 3 Lady, a triple blade razor boosting its product range in the disposable market yet maintaining its affordable pricing structure. Bic Pure 3 Lady offers the technology of 3 blades and a number of additional features contributing to a smoother, closer shave. Read more.

NEW! Glyco-Lemon's energizing new orange family shampoo Glyco-Lemon have introduced a new and zesty Energizing Orange Family Shampoo to their extensive range of family shampoos. With its great fresh orange fragrance, Energizing Orange Family shampoo helps cut down on excessive oiliness and keeps hair glossy and bouncy. Read more.

BRAND ACTIVITY

Kenwood and Clover mix it up Kenwood Home Appliances has joined Clover in their quest to make a difference in the lives of women community leaders countrywide by donating top-of-the-range Kenwood mixers. Read more.

Wine lovers snack on Pyotts For the third successive year, Pyotts Savoury Snacks is exclusively providing the Juliet Cullinan Standard Bank Wine Festivals with their Salticrax, Cream Crackers and Snacktime brands. Read more.

Game supports Rally to Read
More than 34 500 youngsters at primary schools in the depths of rural South Africa are being given the opportunity to vastly improve their literacy skills this year thanks to Rally to Read. This year 420 off-road vehicles will head for the hills on nine rallies in eight provinces to deliver R2,4 million of books to 133 schools off the beaten track.
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WINE, BEER & SPIRITS

Stylish new look for sophisticated Monis Sherries Monis, one of the oldest and most respected names in fortified wines in South Africa, has relaunched its world-class range of sherries with a contemporary new look. Read more.

Graham Beck pins its flag to the Shiraz mast Graham Beck now has four shiraz/shiraz-dominant blends in its stable, covering a wide spectrum of styles: Graham Beck Railroad Red, Graham Beck Shiraz, Graham Beck The Ridge Syrah and Graham Beck The Joshua. Read more.

Van Ryn's luxury brandies acquire further gleam abroad Van Ryn's premium brandies continue to burnish their already glowing international reputation with three gold medals earned on the 13th annual Concours Mondial de Bruxelles, held recently in Portugal. Read more.

Wosa to highlight SA's sweet wines abroad
Wines of South Africa (WOSA) is hoping to drive exports of the country's once famous fortified wines by taking part for the first time in Vinoble, the biennial International Noble Wines Exhibition, held in Spain.
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FEATURED RETAIL SERVICES

Thinking big - Spending Small? Let UCS Solutions help your company become the retail star of tomorrow... UCS Solutions is hosting a breakfast to introduce the power of SAP Retail - come and explore key retail trends and how retail applications are evolving to respond to these. Read more.

Uptown Design Packaging/ paekajing/ n. 1. wrapping used to protect articles 2. your product's radiant outer shell that says "look at me, look at me!" by grabbing the customer's attention with original, kick-ass graphic design. - Uptown Design brings new meaning to packaging design Read more.

Display Team Shelf Management System for Manufacturers and Retailers. Read more.

RETAIL SUPPORT

African companies can reduce technology risk with SAP Safe Passage Often confronted with more risks than their European or North American peers, South African and African companies are looking for ways to reduce the additional risks created by consolidation of software vendors. Read more.

Build your brand with Keynote Communications Keynote Communications offer a comprehensive range of marketing services - including creative concept - which takes into consideration the brand and the lifestyle of the target consumer. Get a glimpse as to Keynote's specialised offerings and experience. Read more.

Synchron's Big Umbrella provides facelift for CTFM The Cape Town Fish Market at the Steenberg Shopping Centre in Cape Town is sporting a fresh new look with a revamped veranda using a Ferrari structure. The Ferrari is an innovative roof design, comprising a dome like structure resembling a circus tent. Read more.

FASTMOVERS

New Vice-Chairman for Clover Harry du Preez has been nominated as the Vice-Chairman of Clover Industries Limited (CIL) the holding company of Clover SA. Du Preez's experience is mainly in the producing field and prior to this appointment he held a position as a non-executive director of CIL.

FEATURED EVENTS

International Speaker at Cleantex Africa
As part of an educational seminar program during the exhibition, Jurgen Schaefer from Miele & Cie headoffice, Germany will share his expertise and international trends with show visitors on topics such as Wet Cleaning and Mop Cleaning.
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EVENTS

Amasa's June meeting
7 June 2006 - Sandown
Exploring the Future of Media Research in SA.
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Get "Ready to Retail"
13 June 2006 - Woodmead
Join UCS in exploring key retail trends and how retail applications are evolving to respond to these.
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Building Quality Information Conference
13 June - Durban, 15 June - Cape Town, 20 June - Johannesburg
GS1 South Africa, along with ECR South Africa and PDC.za will be hosting a conference about Global Data Synchronisation (GDS) as a building block for a collaborative supply chain and how it provides real business benefits.
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Finding the Fortune at the Bottom of the South African Pyramid
12 July 2006 - Parktown
Eighty20 brings you a fascinating overview of the low-income market in South Africa.
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SOCAP Breakfast Event
14 July 2006 - Fourways Crossing
Brad Arden, Director of TQ² Consulting: Building Team Intelligence at Work talks about "Service is a Team Sport".
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Annual Franschhoek Bastille Celebrations
15-16 July 2006 - Cape Town
A "great food and great wine" themed festival to be held in Franschhoek.
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Africa's Big Seven 2006
23-25 July 2006 - Midrand
An integrated exhibition platform that showcases food, retail and FMCG products together with the processes to manufacture them.
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Cleantex Africa 2006
23-25 July 2006 - Midrand
Africa's hygiene, cleaning, maintenance, pest control and facility management services exhibition.
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The Jo'burg Wine Show
28 - 30 July - Gallagher Estate
A three-day event affording the opportunity to learn, try and buy wines in a relaxed and unassuming setting.
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Nedbank Cape Winemakers Guild Auction
17 August 2006 - Camps Bay
Discover the exceptional wines South Africa's leading winemakers will be offering at the 21st Nedbank Cape Winemakers Guild Auction.
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The 3rd South African Red Bull Box Cart Race
27 August 2006 - Johannesburg
One cart, 4 team members, an operational steering wheel, functional brakes and a hooter…
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RMB WineX Cape Town
30 August - 1 September 2006 - CTICC
WineX offers a comprehensive showcase of over 1 200 wines per night from more than 200 of the country's top wineries.
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THE FAST MOVING FACT

Tea was discovered by accident over 5000 years ago, while the legendary Chinese Emperor Shen Nung was resting under a tree. Leaves from branches overhead fell into a pot of boiling water, and the rest, as they say, is history.
(Ciro Alliances)