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ASSIGNMENT 1ST SEMESTER : RETAIL MARKETING (RM)
RETAIL MARKETING (RM001)
CHAPTERS COVERED
: CHAPTERS 1 - 5
DUE DATE
: 3:00 p.m. 19 MARCH 2013
TOTAL MARKS
: 100
CASE STUDY
: FAMOUS FOURNOS
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. Students who exceed the word limit may find that only part of the
submitted assignment will be marked.
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 19 March 2013. Late assignments will be
accepted, but 25 marks will be deducted from the maximum mark if received after 3:00 p.m.
on 19 March 2013 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, 3 May 2013.
Assignment: 1st Semester 2013
© IMM Graduate School of Marketing
RM / RM001
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SPECIFIC INSTRUCTIONS:
1. Answer ALL the questions in detail.
2. Use your own words to answer the questions!
3. Read each question carefully to determine exactly what is required before
attempting the answer.
4. Answers must be set out in a systematic way under appropriate headings and
sub-headings. Number your answers clearly.
5. Do not simply give theoretical discussions. Practical application is essential for all
questions and should form the bulk of your answers.
6. Take note that 10 marks are allocated to the presentation and layout of your
assignment.
7. Make sure that you give a bibliography at the end of the assignment and provide
references in the body of your answers where you have referred to other sources.
Use the correct referencing method (Harvard system).
8. All answers must be based on either the attached case study on Fournos bakery
or the Trendwatching.com article on crucial consumer trends for 2012 as
indicated in the various questions.
9. Refer to the Fournos bakery (http://www.fournos.co.za/) website for more
information on the retailer in the case study. (Questions 2 - 3).
10. Refer to the following website to download the article you will need to consult
when answering Question 1: http://trendwatching.com/trends/12trends2012/.
The shortened version of the article is given after the case study in this document.
Read the case study and answer ALL the questions.
QUESTION 1
[25]
Answer this question by referring to the article from Trendwatching.com titled ‘12
crucial consumer trends for 2012’ (http://trendwatching.com/trends/12trends2012/).
Whilst the article mainly refers to the global context, most of the trends discussed in
the article are of extreme relevance to southern Africa.
Take note of the trends identified in the article and their implications for retailing. You
should also conduct further research for additional trends identified by other sources
for the field of retailing.
Assignment: 1st Semester 2013
© IMM Graduate School of Marketing
RM / RM001
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Required:
Discuss the identified trends in retailing in more detail and explain their relevance and
impact on the South African retailing environment. Make sure that you provide
specific practical examples of the impact and implications for South African retailers
across a number of different retailer types.
[Hint: In order to answer this question it is essential that you consult additional
sources. Visit a library, search on the Internet, search for newspaper articles, or even
arrange an interview with knowledgeable persons on the topic.]
QUESTION 2
[15]
Use the characteristics of the different types of retailers and the information in the
case study on Fournos Bakery to answer the following:

Identify what type of retailer Fournos Bakery is and provide practical reasons for
your answer. Your reasons should be based on the characteristics of your
chosen retailer type and the characteristics of the other types of retailers.
Note: Conduct some more research on Fournos Bakery to gain greater insight into its
operations. [Motivate your statements using the relevant theory as a basis.]
QUESTION 3
[30]
When analysing customer buying-behaviour, retailers need to consider three main
issues; the consumer buying process, the types of buying decisions, and the social
factors influencing the buying process. The retailer needs to influence consumers as
they pass through the stages in the process to select their store and ultimately buy
their merchandise in order to satisfy their needs. All the various influences on this
process need to be identified and understood by the retailer.
Required:
Assume you are a customer behaviour analyst for the Fournos Bakery brand.
Practically explain the key customer buying behaviour issues that you would consider
when analysing the buying behaviour of the Fournos Bakery customer.
In your discussion, make sure that you address the following issues:



The steps in the buying process – including the selection of the retailer and the
selection of the merchandise. (16 marks)
The type of buying decision. (6 marks)
The social influences that come into play at each stage of the buying process.
(8 marks)
[Hint: Make sure you explain each issue and then apply each issue practically to
Fournos by linking the theory to the buying behaviour of a Fournos Bakery customer.]
Assignment: 1st Semester 2013
© IMM Graduate School of Marketing
RM / RM001
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QUESTION 4
[20]
The concept of ‘Known Value Items’ (KVI) is one that appears frequently in the
context of retailing. Despite the importance of the concept it receives very little
attention in academic retailing literature.
Required:
Write an essay on the concept of ‘Known Value Items’ (KVI). Describe the concept
and explain its importance in the context of retailing.
Whilst you are free to address the topic as you deem fit, you can use some of the
following as the basis for your discussion:






Definition of the concept
Importance of the concept
KVIs and pricing
Merchandising and promoting KVIs
KVIs and private labels
South African examples and applications to South African retailers.
[Hint: In order to answer this question it is essential that you consult additional
sources. Visit a library, search on the Internet, search for newspaper articles, or even
arrange an interview with knowledgeable persons on the topic.]
PRESENTATION
[10]
ASSIGNMENT TOTAL: 100
Assignment: 1st Semester 2013
© IMM Graduate School of Marketing
RM / RM001
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Famous Fournos
Fournos Bakery was started as a tiny rotisserie chicken and rolls outlet on Oxford
Road in Rosebank by a master artisanal baker and the present managing director,
who also has a sound baking background. That was almost 20 years ago. From the
start, all developments, upgrades, and product range changes and additions have
been customer- driven. Today the privately owned family business consists of 10
stores, with nine based in the Johannesburg region and one in Centurion.
Founded
About
Description
Mission
Products
Assignment: 1st Semester 2013
1989
Fournos Bakery Group consists of 10 stores in Gauteng, South
Africa that offer bakery, deli and coffee shop products and
services.
Fournos Bedforview, Benmore, Dunkeld, Centurion, Fourways,
Little Falls, OR Tambo airport, Rosebank, Southgate, and
Woodmead
To provide a range of top quality bakery products, a selection of
deli items and a coffee shop menu that offers our customers
value for money and outstanding service.
Breads and Rolls
Croissants
Pastries and Confectionary Delights
Cakes and Tarts
Quiches
Pies and Savoury Bites
Biscuits
Greek Specialty Pastries and Biscuits
Dough
Deli Offerings (Unique by Store)
Platters
Menu
© IMM Graduate School of Marketing
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This year, Fournos won its 14th Best Bakery in Joburg award at the Leisure Options
Awards, which Debi van Flymen, operations manager for Fournos, believes reflects
the consideration and care its customers have been shown since the beginning. “Our
customers are our life blood. We listen to them all the time and apply their
suggestions and requests as far as we possibly can. The fact is that we don’t get
trapped watching our competition to see what they’re doing; we look to our customers
and what they want for our direction. It’s the way it’s always been. We see everyone
as our target market – from the construction worker picking up a couple of R1.40 rolls
for lunch to the office executive ordering regular massive platter orders.”
She says Fournos’s driving passions are quality and freshness of product, value for
money, and service. “All our baked products are made using traditional baking
methods and without flavourants, colourants, preservatives or stabilisers – and have
been since the first rolls came out of the oven.”
While bakery is the cornerstone of Fournos, the company’s offering has expanded to
include deli, coffee shop, food platters, ice cream, pasta making, and much more.
The bakeries produce about 85 bread and bread roll products, and a total of more
than 230 lines. The famed Fournos croissants are produced in vast quantities by
hand, and daily sales across all shops have reached mind-boggling quantities.
Bread is also mixed by hand. “We
believe that a baker should have
a connection with the dough to
feel exactly what’s needed to get
it right all the time. For instance,
on a rainy day, the mix will be a
bit different to a dry, sunny day,”
she says.
The high baking standards set by
the two founders are still
maintained as they are deeply
involved in training bakers to
consistently achieve the same
standards.
Maintaining
consistency of quality across the
group is absolutely crucial.
Fournos employs a total of more than 600 people and is enormously proud of its
phenomenal staff retention record. It’s one of the fundamental reasons for its
success, maintains Van Flymen. “Our team is passionate about our business – the
quality and service excellence. It’s constantly inspiring.” Fournos store managers are
responsible for understanding their own customer bases, what their preferences are,
and when their peak periods are, and deliver on those expectations.
In identifying sites for Fournos bakeries, Van Flymen says there are two main criteria.
The location must be in a neighbourhood with an office component to service both
families and office needs, and customers must be able to see the sky when they sit
and eat. That’s an important piece of the puzzle, she maintains, as it eliminates a
Assignment: 1st Semester 2013
© IMM Graduate School of Marketing
RM / RM001
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sense of claustrophobia and being enclosed that some malls can project. Even
Fournos outlets based in malls are on the outskirts with access to outside seating.
Merchandising, as with everything else in Fournos Bakery, is done with extreme care
and attention to detail. Each store is designed according to store layout and customer
comfort levels. The company follows general merchandising principles, but each
store is unique, and everything is taken into account – with an eye on flexibility to
enable the store to adapt, change and grow as the need arises.
And when all is said and done, Van Flymen waxes lyrical about the core of the
business – freshly baked bread. “Bread is food for the soul. All over the world, bread
is an important part of many meals in some form or another. There is something
about a loaf fresh out of the oven that is intoxicating – and being in the business of
making really good bread is a privilege we treasure.”
Additional information on the dehli and coffee shop.
Source: www.fournos.co.za. [Accessed 02 June 2012]
Deli
We work hard to procure the best quality meats, cheeses, olives and pickles from
every corner of the world and honour the “local is lekker” principle too by featuring
outstanding local products. Our delis also feature many items we make ourselves.
Choose your roll, bread or croissant and our friendly, professional deli staff will create
your unique masterpiece. Consider yourself the conductor as you let them know what
to pile on! So many choices from the gourmet to the everyday to suit all appetites and
budgets. Your edible masterpiece will be music for your mouth.
A wide variety of salads grace our deli counters where you can help yourself to
what’s on offer. Regular favourites include Greek village salad, bean salad, potato
salad, butternut and poppy seed salad, avocado salad, pasta salad and more!
We also stock a range of dips and spreads that includes our divine homemade
chicken liver pate, olive tapenade, pesto, tzatziki, hummus, tahinasalata (sesame dip)
and melitzanosalata (brinjal dip). These are stunning accompaniments to our bread
and cold meat selection.
Don’t forget to explore the daily deli specials in each Fournos location – we receive
regular raves about dishes like oxtail, chicken schnitzel, calamari, lamb chops, spiced
rice and a wide variety of pastas. This is the perfect choice for the busy professional,
soccer Mom or anyone needing a night off from cooking.
Each Fournos branch has a unique deli offering that caters to the individual customer
base of the shop. Come and browse the shelves at your nearest outlet. Assignment: 1st Semester 2013
© IMM Graduate School of Marketing
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Coffee Shop
We take our coffee seriously at Fournos and we proudly use Illy coffee! Just like
baking, coffee hovers in the space where the spheres of science and art converge.
Whether your cup of coffee is a traditional filter coffee or you opt for an espresso,
cappuccino or latte – our trained baristas showcase their talents in every cup. In
addition to the leaded variety, we offer de-caffeinated coffee in all our branches. For
you non-coffee drinkers, we do offer a delightful range of teas, hot chocolate and
Milo.
Source: Famous Fournos. [Online] Supermarket & Retailer, Jan 2012. Available at:
http://www.supermarket.co.za/SR_Downloads/S&R%20Jan%202012%20Bakery.pdf [Accessed 05
November 2012]
ARTICLE:
Access the following article from the following website:
http://trendwatching.com/trends/12trends2012/
We have given you the summarised version of the article below
12 crucial consumer trends for 2012
Introduction. This year, much as in previous years, some brands may be staring into
the abyss, while others will do exuberantly well. And while we can’t offer any help to
defaulting nations or bankrupt companies, we do believe that there are more
opportunities than ever for creative brands and entrepreneurs to deliver on
changing consumer needs. From Canada to Korea. Hence this overview of 12
must-know consumer trends (in random order) for you to run with in the next 12
months. Onwards and upwards.
1. Red carpet
In 2012, department stores, airlines, hotels, theme parks, museums, if not entire
cities and nations around the world will roll out the red carpet for the new emperors,
showering Chinese visitors and customers with tailored services and perks, and in
general, lavish attention and respect.
2. DIY health
Expect to see consumers take advantage of new technologies and apps to discreetly
and continuously track, manage and be alerted to, any changes in their personal
health.
3. Dealer chic
In 2012, not only will consumers continue to hunt for deals and discounts, but they
will do so with relish if not pride. Deals are now about more than just saving money:
it’s the thrill, the pursuit, the control, and the perceived smartness, and thus a source
of status too.
Assignment: 1st Semester 2013
© IMM Graduate School of Marketing
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4. Eco-cycology
Brands will increasingly take back all of their products for recycling (sometimes forced
by new legislation), and recycle them responsibly and innovatively.
5. Cash-less
Will coins and notes completely disappear in 2012? No. But a cashless future is
(finally) upon us, as major players such as MasterCard and Google work to build a
whole new eco-system of payments, rewards and offers around new mobile
technologies.
6. Bottom of the urban pyramid
The majority of consumers live in cities, yet in much of the world city life is chaotic,
cramped and often none too pleasant. However at the same time, the creativity and
vibrancy of these aspiring consumers, means that the global opportunities for brands
which cater to the hundreds of millions of lower-income CITYSUMERS are
unprecedented.
7. Idle sourcing
Anything that makes it downright simple- if not completely effortless- for consumers to
contribute to something will be more popular than ever in 2012. Unlocked by the
spread of ever smarter sensors in mobile phones, people will not only be able but
increasingly willing, to broadcast information about where and what they are doing, to
help improve products and services.
8. Flawsome
Why to consumers, brands that behave more humanly, including exposing their flaws,
will be awesome. In 2012 consumers won't expect brands to be flawless; they will
even embrace brands that are FLAWSOME, and at large (or at least somewhat)
human. Brands that are honest about their flaws, that show some empathy,
generosity, humility, flexibility, maturity, humour and dare we say it, some character
and humanity.
9. Screen culture
Thanks to the continued explosion of touchscreen smartphones, tablets, and the
'cloud', 2012 will see a SCREEN CULTURE that is not only more pervasive, but more
personal, more immersive and more interactive than ever.
Screen culture is less of a trend in itself, but more the medium through which so
many trends in this Trend Briefing will manifest themselves. 2012 will see three
mega-tech currents converge: screens will be (even more): ubiquitous / mobile /
cheap / always on; interactive and intuitive (via touchscreens, tablets and so on); an
interface to everything and anything that lies beyond the screen (via the mobile web
and, increasingly and finally mainstream in 2012, ‘the cloud'). In fact, the future for
most devices will be a world where consumers will care less about them and just
about the screen, or rather what’s being accessed through it.
10. Recommerce
It’s never been easier for savvy consumers to resell or trade in past purchases, and
unlock the value in their current possessions. In 2012, ‘trading in’ is the new buying.
Assignment: 1st Semester 2013
© IMM Graduate School of Marketing
RM / RM001
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Consumers have always resold large, durable goods like cars and houses; but in
2012, almost anything is ripe for resale, from electronics to clothes, and even
experiences. Novel brand buy-backs, exchange schemes, online platforms and
mobile marketplaces offer smart and convenient options for consumers keen to ‘trade
in to trade up’, alleviate financial strains (double dips, anyone?), and/or quell
environmental and ethical concerns.
11. Emerging maturialism
While cultural differences will continue to shape consumer desires, middle-class
and/or younger consumers in almost every market will embrace brands that push the
boundaries.
Expect frank, risqué, or non-corporate products, services and
campaigns from emerging markets to be on the rise in 2012.
12. Point and know
Consumers are used to being able to find out just about anything that’s online or textbased, but 2012 will see instant visual information gratification brought into the real
and visual world with objects and even people.
2012 will see a mix of the known (Apps! Augmented Reality!) and the very known
(QR codes!) bringing information about the objects (and even people) that consumers
encounter in the real world instantly. And like some other trends, it’s the rise of the
(always-in-my-pocket) smartphone that will fuel full-blown POINT & KNOW in the
next 12 months. After all, the need and expectation for instant information and instant
access to everything one wants to know, is already deeply ingrained in the see-hearbuy consumer. Use POINT & KNOW in a practical fashion: adding depth of
knowledge, communicating stories, origins, price comparisons, reviews, ecommerce
and so on, or by all means, just have some fun with it!
Assignment: 1st Semester 2013
© IMM Graduate School of Marketing
RM / RM001