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ASSIGNMENT 1ST SEMESTER : RETAIL MARKETING (RM)
RETAIL MARKETING (RM001)
MODULES COVERED
: MODULES 1 - 5
DUE DATE
: 3:00 p.m. 15 MARCH 2011
TOTAL MARKS
: 100
INSTRUCTIONS TO CANDIDATES FOR COMPLETING AND SUBMITTING
ASSIGNMENTS
The complete ‘Instructions to Students for Completing and Submitting Assignments’ must be
collected from any IMM GSM office, or the relevant Student Support Centre or can be downloaded
from the IMM GSM website. It is essential that the complete instructions be studied prior to
commencing your assignment. The following points highlight only a few important notes.
1. You are required to submit ONE assignment per subject.
2. The assignment will contribute 20% towards the final examination mark, and the other 80% will
be contributed by the examination, however, the examination papers will count out of 100%.
3. Although your assignment will contribute towards your final examination mark, you do not have
to earn credits for admission to the examinations; you are automatically accepted on
registering for the exam.
4. Number all the pages of your assignment (e.g. page 1 of 4) and write your name and surname,
student number and subject at the top of each page.
5. The IMM GSM requires assignments to be presented in a typed format, on plain A4 paper.
Unless otherwise specified, this assignment must be completed within a limit of 1500 words,
excluding the bibliography.
6. A separate assignment cover, which is provided by the IMM GSM, must be attached to the
front of each assignment.
7. Retain a copy of each assignment before submitting, in case the original does not reach the
IMM GSM.
8. The assignment due date refers to the day up to which assignments will be accepted for
marking purposes. The deadline is 3:00 p.m. on 15 March 2011. Late assignments will be
accepted, but 25 marks will be deducted from the maximum mark if received after 3:00 p.m.
on 15 March 2011 and up to 5:00 p.m. the following day, after which no assignments will be
accepted.
9. If you fail to follow these instructions carefully, the IMM Graduate School of Marketing cannot
accept responsibility for the return of the assignment. It may even result in your assignment
not being marked.
Results will be available on the IMM GSM website, www.immgsm.ac.za, on Friday, 6 May 2011.
Assignment: 1st Semester 2011
© IMM Graduate School of Marketing
RM/RM001
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SPECIFIC INSTRUCTIONS:
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7.
Answer ALL the questions in detail.
Use your own words to answer the questions!
Read each question carefully to determine exactly what is required before
attempting the answer.
Answers must be set out in a systematic way under appropriate headings and
sub-headings. Number your answers clearly.
Do not simply give theoretical discussions. Practical application is essential for all
questions and should form the bulk of your answers.
Take note that 10 marks are allocated to the presentation and layout of your
assignment.
All answers must be based on the attached case study where indicated. Refer to
their website for more information on the company and their retailing activities.
(http://www.fruitandvegcity.co.za)
COMPANY HISTORY
Fruit and Veg City Holdings (Pty) Ltd was founded in March 1993 by two brothers,
Brian and Mike Coppin. The first store was opened in Access Park (Cape Town).
Their common sense approach to marketing fresh produce and maintaining a no-frills
business that is value driven right down to store level, has allowed the company to
grow from a one-store operation to the largest seller of fruit, vegetables and other
fresh produce items in South Africa, with a total of over 100 stores.
Fruit & Veg City has grown from a small store, which, as the name indicates, sold
only fresh fruit and vegetables. As the company has grown, so have their product
ranges to cater to the customers’ demand for good quality fresh produce of all forms
– dairy, bakery goods, meat, fish, dried fruit and nuts, cheese and continental delis
and now even some non-perishable groceries in selected stores.
Today, around two thirds of the company consists of franchises, with an average of
10-15 new stores opening per year. In May 2008 Fruit and Veg City opened their
first Food Lover’s Market in Sydney, Australia. This store joins the already
successful group of outlets beyond South African borders, including three in Namibia
and a store in Lesotho.
Assignment: 1st Semester 2011
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RM/RM001
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There are three store formats:
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Fresher Food Stores, which form the core of their business, providing for all your
basic fresh produce needs.
Food Lover’s Markets. This new concept in food retail takes shopping for fresh
produce to a completely new level. Using international trends as inspiration,
these upmarket food emporiums still offer the best quality fruit and vegetables at
low prices, but also offer a range of other specialist departments.
Freshstops are freestanding outlets with a focus on fresh, healthy take away
meals and smoothies. Express Freshstops can also be found in many of the
Fresher Food Stores or Food Lover’s Markets.
Their desire to be the best supplier of fresh fruit and vegetables and to stock a full
product range 12 months of the year, along with their international expansion in 2004
and the subsequent trading relations, led to the need for an import and export
division. Because of the trust that has been established with many of their farmers
and suppliers, FVC International was born in 2005. In 3 years, this division has
grown to the biggest importer of fruit in South Africa and a large player in the
exporting field as well.
CORE VALUES
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Energy: If you do not have it, stay out of this industry, according to Brian Coppin.
Most retail, and especially produce, is 12 hours a day for at least 6 days a week.
Honesty: in your dealings with your farmers, suppliers, staff and customers.
Transparency: Nothing is hidden from any of their franchisees or corporate
stores. Their secrets to success are shared to create wealth for all.
Loyalty: They do not believe the people who were there for them when they had
1 store should now be dropped because somebody more professional is punting
for the business, and unless their original suppliers of products or services are
totally out priced or out of their depth, they will continue to grow with them.
AWARDS
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2006 – SASCS Western Cape Retailer of the Year (Access Park Fresher Food
Store)
2007 – SACSC Special Star Award: National Retailer of the Year and Western
Cape Retailer of the Year (Willowbridge Food Lover’s Market)
2007 – Global Convenience Format of the Year Runner up: Best New Concept in
Retail in the World (Food Lover’s Market)
2008 – SACSC National Retailer Supermarket Category Winner (Willowbridge
Food Lover’s Market)
CORPORATE SOCIAL INVESTMENT
Since 2006 Fruit & Veg City has been partnering with Foodbank South Africa, a
registered non-profit organization that focuses on redistributing good quality food that would have otherwise gone wasted – to those who need it the most. They
provide between 12 and 14 million meals per year, and we are proud supporters of
Assignment: 1st Semester 2011
© IMM Graduate School of Marketing
RM/RM001
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this initiative. This year, Fruit & Veg City and Feedback have launched the Care 2
Carry campaign, in which colourful, re-useable shopping bags are sold with 10
different designs painted by some of Feedback’s beneficiaries at Luzuko Primary in
Gugulethu. The designs poignantly depict their dreams and aspirations, and R2 from
every bag sold in Fruit & Veg City stores will go towards Feedback.
Source: [Online] Available: http://www.theretailer.co.za/retailers/39-retailers/136-fruitvegcity.
[Accessed 2010, July 26.]
FRESHER STORE
Fruit & Veg City's new Fresher Food Stores are just
that...Fresher. Fruit & Veg City have taken their stores
and given them bright, bold makeovers; with more
neutral paint tones, bright and modern fridges and smart, cleaner packaging - the
stores have a whole new look to them.
The makeover has also gone much further than just making a Fruit & Veg City store
look brighter; the Fruit & Veg City team have also introduced exciting new
departments, ensuring that the shopping experience is the freshest. At Fruit & Veg
City's Fresher Food Stores, you can find almost all your fresh food needs under one
roof.
Fruit & Veg City time-saving favourite, Shortcuts, will have everyone breathing a sigh
of relief. You can have your fruit or veg chopped, diced, peeled, chipped and
sliced...and the best part is that is free of charge.
Fresher Food Stores also offer the freshest pastries, breads and cakes from their
Bakery, a delicious selection of meats from their Butchery, the widest selection of
dried fruits and nuts – not to mention the cheese bar and dairy counter where you
can top up on the wholesome farm fresh milk. In-store Freshstop's mean picking up
a healthy fruit salad, stopping to snack on a freshly made sandwich or sipping
through a nutritious smoothie is simple.
Fruit & Veg City have also introduced their own in-house brand, aptly named
Freshers. The Freshers branded products carry a promise of absolute freshness and
delicious taste. This includes items like Freshers Milk, Yoghurt or Freshers Muesli.
FOOD LOVER's MARKET
Fruit & Veg City’s new concept in food retail has hit the Southern Suburbs of Cape
Town with the opening of their Food Lover’s Market store in Claremont on
Assignment: 1st Semester 2011
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RM/RM001
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Wednesday, 21 May 2008. The new Fruit & Veg City Food Lover’s Market is the
sister store of the stylish Food Lover’s Market in the Icon building in Cape Town, and
customers can expect the same quality food experience.
The Food Lover’s Market, Cavendish is has been described as a “theatre of food”
where every element combines to create a unique food experience. They have both
an upstairs and downstairs area where customers are treated to a rich diversity of
gourmet cuisine. The downstairs departments are all geared towards those on the
move looking for a quick meal or coffee on the run.
At the Coffee Bar, customers can spend a moment to unwind with a cappuccino or
café latté, while catching up on the daily news with a newspaper. Those looking to
treat themselves to something extra special can even order a croissant or a delicious
piece of cheesecake to go with it.
Over the years, the Italians have become famous for their unique and flamboyant
style of cooking. The Food Lover’s Market have taken a lesson out of their book and
added a classic Italian Pizzeria in store. Here customers can order wood-fired pizzas
and divine paninis made the Italian way.
To give customers a taste of the Orient, they have specially introduced an in-store
Noodle Bar that serves only authentic Eastern dishes. Reminiscent of downtown
Hong Kong, with meals prepared in traditional wok fryers, this unique department is
your passport to some real Asian fusion.
Freshstop, Fruit & Veg City’s own fast food brand, has already become famous for its
selection of delectably healthy take-aways. This is the place to refresh your senses
with a groovy smoothie or fresh fruit salad, or fill up with a wide selection of gourmet
sandwiches, made fresh each day.
The smell of freshly baked artisan-style bread will lead you to the Bakery department.
Once there, you will be tempted with everything from heavenly apple pie to hearty
French loaves. It is enough to please even the fussiest connoisseur. Then, for those
with a healthy appetite, they have introduced a huge Hot Foods emporium where
tasty hot dishes such as roast chicken, bobotie, eisbeins, spare ribs and lasagna are
served.
For the health-conscious, there will also be a variety of low GI salads, as well as
other designer salads. The upstairs section offers customers the opportunity to sit
down and enjoy their meal in a relaxed restaurant atmosphere. They will be open
Assignment: 1st Semester 2011
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RM/RM001
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until late, so customers can enjoy breakfast, lunch or supper. If you are in the mood
for Japanese, the Sushi Bar is just the place to go.
Customers can take a seat and decide what they want as enticing delicacies,
prepared by Japanese sushi masters, roll past on a bamboo conveyer belt. This is in
keeping with international trends that are now all the rage in cities such as New York,
Paris and London. The smells of from the Pasta Bar might just momentarily transport
you to the rolling hills of Tuscany, as their chefs display their visible passion for great
cuisine.
There is also another Coffee Bar upstairs where customers can enjoy a steaming cup
of hot coffee as the perfect finish to their meal. The Food Lover’s Market concept
made its debut in South Africa in 2006 as an alternative shopping experience for
those consumers who wanted to buy gourmet food in a luxurious environment.
Fruit and Veg City did extensive research before launching Food Lover’s Market.
Many of the design-elements and ideas for specialist in-store departments were
influenced by international trends. This makes Food Lover’s Market the first South
African retail store that is able to compete with the trend-setting retail chains of
Europe, North America and Asia.
DISCOVER A FRESH OASIS...
The Food Lover's Market is described as a glamorous new fresh concept in in-store
retail. With the focus on exceptionally fresh, quality fruits and vegetables and
stunning interior store décor, The Food Lover's Market is truly an oasis for those who
appreciate great food.
NEW STORE OPENED
A brand new Food Lover’s Market (the first of its kind in KZN) opened in Hillcrest on
28 February to the great delight of local residents. From the minute the store opened
a steady stream of curious shoppers made their way through the sections, which
included a fantastic fruit and veg section (with rarely seen items like ochre), a
butchery and biltong bar, fruit and nut dispensers, bakery, cheese/deli and a great
hot foods section.
The shop is also one of the new stores to boast a grocery section, to accommodate
the busy shoppers and make their lives a little easier. The Freshstop outside the
store had a great outside deck to soak up the sun and rest those weary feet after
shopping.
Assignment: 1st Semester 2011
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RM/RM001
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Shoppers were so enthusiastic that some would walk off with other shopper’s trolleys
after inspecting the wonderful salads on offer, only to discover a while later and have
a good laugh with the original ‘owner’ of the trolley. There was a wonderful sense of
community amongst the Hillcrest residents, many of whom stopped to chat about the
new store with fellow shoppers. One embarrassed shopper even admitted that she
was supposed to be at work at the time, but could not resist the temptation of seeing
what the store had on offer.
Staff members were almost as excited, like Sylvester, the bakery assistant, who
greeted everyone with a smile, and the hardworking ladies in Shortcuts chopping and
dicing away. Customers were made aware of the store opening by knock-and-drops
and brightly dressed promo girls at nearby intersections, who handed out glossy
opening specials pamphlets.
The USP utilised by Fruit and Veg City is ‘If you are looking for all the goodness of
wholesome, natural fresh foods – as well as some added indulgences – look no
further than The Food Lover's Market – for the love of it.’
FRESHSTOP
Fast food can be healthy food!
Fruit & Veg City's new store
concept is branded - Freshstop.
Freshstop stores are bringing a
completely new foodie concept to the South African fruit and veg marketplace.
Looking fresher, more modern and with a whole new upbeat attitude – the Freshstop
Stores are located near or inside shopping malls, making stopping by for a quick,
healthy snack easy.
“Made fresh today, naturally” - Fruit & Veg City's Freshstop stores take health and
freshness to an all new level; their fun crisp environment provides the perfect
practical and enjoyable way to achieve good health in today's frantic modern world.
From wholesome breakfasts to fruit kebabs, smoothies, sandwiches and mouthwatering soups, salads, muffins and croissants, all the food produce is made from
scratch every day, using the finest, freshest ingredients. No-more cold-packed,
frozen, preservative packed lunches that never quite seem to fill that hunger pang,
Freshstop stores ensure you taste the fresh zing and feel the boost that comes from
fuelling the body with natural goodness.
Assignment: 1st Semester 2011
© IMM Graduate School of Marketing
RM/RM001
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At Freshstop – fun, freshness and convenience are always assured; cool delicious
blends of fresh fruits can be whisked together with low fat yoghurts for those
watching the waistline or those deciding to be a little more indulgent can spoil
themselves with a real dairy ice cream. Needing that coffee fix early in the morning?
Freshstop pride themselves on their fine selection of aromatic coffees, sit and relax
for a few moments with a hot cup of Joe before hitting the work rush.
Freshstop have also recognised the importance of freshness, they have thrown out
the sell-by date concept… they just don't need it. All food in store is made with fresh
ingredients each day; anything that has not been sold or eaten at the end of the day
gets taken off the shelf. “Waste not, Want not” is another consideration at Freshstop
stores so instead of disposing of all that good, wholesome food, the stores donate
the food to charities in their area – ensuring needy children and adults can enjoy
fresh, flavoursome foods on a daily basis.
Source: [Online] Available: http://www.fruitandvegcity.co.za/fresh_shop_about.htm. [Accessed 2010,
July 26]
Assignment: 1st Semester 2011
© IMM Graduate School of Marketing
RM/RM001
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ANSWER ALL FOUR QUESTIONS THAT FOLLOW
QUESTION 1
[25]
Technology is developing at a rapid rate and will lead to some significant changes in
the retailing environment. Retailers must make sure they are aware of these
developments and are at the forefront when it comes to incorporating them into their
strategies.
Required:
Write an essay on the topic of e-tailing and the issues that are crucial for its success.
In addition, address some of the technologies and innovations related to retailing that
are in the process of being developed and their implications for the South African
retailer. Give many practical examples to illustrate your understanding of the
implications of the developments to the retailer.
[Hint: To answer this question it is essential that you consult additional sources. Visit
a library, search on the Internet, search for articles, or even arrange an interview with
knowledgeable persons on the topic. You could attempt to speak with a retailer in
order to gain greater insight into e-tailing and the developing technologies and
innovations.]
QUESTION 2
[20]
As can be seen from the case study, Fruit & Veg City operates using three very
distinct formats. Whilst they are basically the same and offer similar products, there
are some distinct differences.
Required:
Analyse, in detail, the retail mixes of the three different formats. Take care to
describe the retail mix (all elements) of each format and then highlight the differences
between them. Give your interpretation of the reasons why they have used the three
formats.
[Hint – describe the retail mixes in detail. You could also visit the Fruit & Veg City
website or stores for more insight to ensure a comprehensive answer.]
QUESTION 3
[20]
Fruit & Veg City can logically, based on the classification in the prescribed book, be
described as a food retailer. However, if one reviews the general merchandise
retailer types, Fruit & Veg City matches the description of one of the general
merchandisers quite nicely.
Required:
Using the characteristics of the different types of retailers, do the following:
1.
Identify what type of retailer Fruit & Veg City is and provide reasons for your
answer.
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RM/RM001
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2.
Conduct a comparison between Fruit & Veg City and CheckersHyper in terms
of the type of retailer they can be classified as. Your comparison should
address the following issues:
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Type of retailer
The strategy pursued by the two retailers (including their target markets)
The retail mixes used by each of the retailers
A comparison of the variety and depth of assortment offered.
[Note: This question will be best answered after conducting some research on the
two retailers. In your discussion, make sure you identify the differences as well as
the similarities between the two. Be sure to motivate your statements using the
relevant theory as a basis. If you simply rewrite what is given in the prescribed book
you will not obtain a pass mark for the question – practical application is essential.]
QUESTION 4
[25]
The strategic retail planning process is a set of steps that the retailer goes through
when developing a strategic retail plan. Steps one and two of this process require
careful consideration as they influence the planning for the rest of the process.
Required:
1.
Develop an original mission statement for the ‘food lovers market’ format.
(5)
2.
Conduct a comprehensive and practical situation audit for Fruit & Veg City.
(In some cases, assumptions may be necessary. It is important to ensure that
you cover all the relevant elements in your audit.)
When conducting the audit you should use a variety of sources. This includes
the information given in the case study, Internet searches, newspapers and
any other resources at your disposal.
(20)
PRESENTATION
[10]
ASSIGNMENT TOTAL: 100
Assignment: 1st Semester 2011
© IMM Graduate School of Marketing
RM/RM001