Marketing research - Woolworths South Africa Essay

7373 Words Oct 15th, 2013 30 Pages
The retailer that I have chosen to conduct my research on is Woolworths, which is an established chain of retail stores founded in South Africa. Whilst they operate predominantly in this country, they have a substantial number of franchises and business dealings overseas. Their vast product range includes but is not limited to variable groceries, clothing, homeware and financial services, all of which are superior in quality.

[Question 1 – The Existing Gaps Between The Producer and The Consumer]
Retailers can be considered as middlemen or go-betweens, whereby they acquire an array of consumer products from suppliers and then offer these to the public at a retail price (Cant & Van Heerden, 2010). It is not common practice for the
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The retailer also has a system in place which allows customers to technically ‘purchase’ products without paying upfront and this is done by means of store cards and accounts. Whilst there is a delay in actual ownership, this is one more way of closing the gap.
The fifth gap is the value gap. As stated by Cant and Van Heerden (2010), a seller and a buyer must decide on an acceptable rate of exchange, and should the buyer agree on a set price, it means that the buyer attaches the same value on the product as the seller does. ‘Price vs. Quality’ is one of the salient considerations which go into the purchasing of goods and services and the onus is on the retailer to convince the consumer. As touched on under the information gap, Woolworths takes great care to produce effective marketing. If their advertisements are studied, it is often apparent that the product which is being marketed is worth the price. The retailer’s marketing team churn out creative, tasteful, relevant and concisely informative advertisements. They pay attention to detail and aesthetics, and like most marketers, strive to tap into consumers’ psychology. Subtle coercions done by retailers are generally effective, and, in my opinion, if their turnover and popularity are anything to go by, they are definitely successfully bridging the value gap as well.

[Question 2 – The Marketing Activities Carried Out By Woolworths]

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