SECTION A (50 MARKS) CASE STUDY QUESTIONS Read the following case study and answer the questions that follow:

Pick n Pay's big plans: New brands, cost-cutting, Boxer expansion and omnichannel growth. The "biggest and most important change in Pick n Pay for many years". That's how Pick n Pay Group CEO Pieter Boone has described the retail company's new four-year strategic plan revealed this week. The ambitious strategy is designed to deliver group turnover growth at a compound annual rate of 10% - resulting in market share growth for the group of at least 3%. In addition, the retail group has pledged through the plan to increase its profit before tax (PBT) margin to above 3.0% by FY26. The five key elements of the four-year strategic plan are the following: New customer value proposition: Introducing Project Red In a bid to redefine its relationship with the customer, Pick n Pay will be organised into two customer-facing brands, each designed around specific customer needs.

The new customer value proposition (CVP) is currently in a testing phase, but the core elements are:

'Project Red' stores will be organised to deliver low prices and great quality. They will have a range of around 8 000 stock keeping units (SKUs), with an emphasis on essentials, a strong fresh offer, and excellent service, said the company. Project Red stores will have a distinct fresh produce market feeling in the fruit and vegetable section with a focus on bulk offerings and promotions. A dedication aisle will be incorporated specifically for promotional goods, boasting numerous bulk displays to showcase the competitive prices to customers.

Pick n Pay stores will offer a depth of range, and an emphasis on quality, innovation and freshness. These stores will have a range of around 18 000 SKUs, giving customers great value, linked to best quality. They will cater to customer aspirations, including through a fully integrated omnichannel offer. Pick n Pay stores will include an expansive section that allows customers to explore the latest innovations in fresh fruit and vegetables. There will also be prime destinations for butchery, bakery and cheese & wine. Improved in-store experiences will focus on themes such as health, indulgence, snacking, or hot beverages. "These two Pick n Pay brands, together with the groups Boxer business, will cover the market in a way that meets specific customer needs, and will appeal to the entire South African customer demographic," Pick n Pay said.

The CPV refocus was developed on the back of nearly a year in customer research, including over 7,000 customer interviews.

Accelerating Boxer growth. The group's Boxer retail chain is a prominent limited-range discounter in Africa targeting price-conscious customers. The company is aiming to double Boxers turnover by financial year 2026 (FY26) through a combination of new store openings (200 over the next three years), and consistent like-for-like growth in existing stores. "This is great news for customers across the country who are seeking exceptional value, and great news for the growth of our group," Pick n Pay said. Building a future-fit, high-performance team Pick n Pay said that key to the overall plan is a goal to build a future-fit, high-performance team, delivering consistently every day for customers. The group has an intensive people plan in place to achieve this, including new initiatives on talent planning, recruitment and retention, training, mentoring, and development, effective hybrid working, and innovative staff engagement. Greater diversity is also a priority, building on momentum achieved in recent years.

Commenting on the strategic plan, group CEO Pieter Boone said that the goal was to unlock the full potential of the Pick n Pay Group and accelerate the momentum it's built over the past year. I am hugely excited by each element of the plan. Through our new customer value proposition for Pick n Pay, we will give customers a more tailored and personal experience, better prices, and more exciting stores. Boxer is already a phenomenal business, and our pledge to open 200 new stores will be great news for customers in search of the best value in the market. Our commercial agreement with the Takealot Group will transform the market for on-demand grocery, with over 2.5 million customers on the Mr D app benefiting from a dedicated Pick n Pay food and grocery offer, and Takealots unrivalled delivery network. Project Future is improving our business day by day by making it leaner, more productive, and more modern - with the savings pledged towards even better prices for customers. It is a comprehensive and balanced plan, and a significant new chapter in the Groups history.

Question 1 (21 marks) Underpinning the implementation of Integrated Marketing Communications (IMC), are ten (10) basic principles (Du Plessis, Strydom & Jooste, 2012:314 315).

1.1 Using Pick n Pay examples from the case study above, explain the following IMC principles and clearly show how each was used:

1.1.1 Strategic/message consistency (4)

1.1.2 Contact synergy (4)

1.1.3 Stakeholder-centricity (4)

1.1.4 Use of technology (4)

1.2 Conduct additional research on a minimum of three (3) sources and investigate the importance and benefits of a company like Pick n Pay using the IMC approach. (5)

Question 2 (24 marks) You have been tasked by Pick n Pay to design their Integrated Marketing Communication (IMC) plan. There are six (6) steps in the IMC planning process.

The following criteria will be used to evaluate your IMC plan: Criteria Mark allocation Introduction Students to research and outline the brand architecture of Pick n Pay and provide an overview of the media plan. One (1)

mark for outline Two (2) marks for overview of the media plan 3

Step 1: Situational analysis Students to develop situational analysis. The situational analysis should be comprehensive, as it is the foundation on which the plan and the tactics will be based. A review of the performance of the company during the most recent period (1)

Comparisons with previous years to reveal trends and comparisons against competitors to reveal relative performance (1)

A summary review of the overall marketing performance, the marketplace, competition and strengths and weaknesses (1)

A SWOT analysis focusing on the communications aspects such as performance, target markets and positioning (1)

An explanation of the product or service, the overall positioning and how the product is perceived in the minds of the target market and different target audiences (1)

Perceptual maps, plotting where different brands and product types are positioned according to certain criteria (1)

PESTEL analysis specifically relevant to communications (1) 8

Key success factors that the IMC depends on to be successful (1)

Step 4: Tactics (Use a Gantt chart) Students to develop tactics section. These are the details of the marketing strategy, advertising strategy and the creative strategy. Advertising: TV (2) Press (2) Sales promotion: Competition (2) Direct marketing Mailshot Telesales (2) Publicity and PR (2) Sponsorships (2) 12 Professional presentation Ability to develop an advertising campaign document that has a professional layout, with headings, page numbers, grammar, etc. 1 TOTAL