Analysing the marketing environment Spar group is world-renowned for in-store merchandising in South Africa, the Spar group is a JSE-listed wholesaler and distributor of goods, and service provider to Spar supermarkets. Spar has a clientele worth billions of rands and has approximately 20 00 stores in 35 countries. Communication is very important to the Group and therefore its website enables clients to communicate directly with members of Spar’s merchandising team, and can alert customers of changes in in-store conditions immediately, keeping them in touch with their retail goals. Spar’s merchandising team along with their web-based system ensures that products are on the shelf and in front of customers for longer, assisting time-poor, busy customers. Technology helps Spar to uncover which stores are not performing to expected standards and what the reasons are for this underperformance. Spar’s web-based process analyses real-time data of store conditions. This allows Spar to take corrective action immediately. A more comprehensive control of stores is guaranteed and will lead to increased sales. In the 1960’s, grocery chains emerged in South Africa. In 1963, a group of eight wholesalers were given exclusive rights to the Spar name and brand, and served 500 small retailers. Since then there have been many mergers and takeovers. Today the Spar Group Ltd has six distribution centres one Build it distribution centre. These centres supply goods and render services to more than 1000 Spar stores across Southern Africa. Spar has three store formats, which are Spar for shopping that caters for the neighbourhood, including convenience products, Superspar for one-stop bulk shopping, with products competitively priced, and Kwikspar for everyday convenience. Spar operates under ‘voluntary trading’ principles which means each store has its own regional personality. The Spar Group listed on the Johannesburg Stock Exchange in 2005. Spar has created a culture of caring and community in order to ensure that their customers have consistently enjoyable shopping experience in a family orientated store with friendly staff. Their valued customers are very important to them and they believe in going the extra mile to serve them. They source the finest products and have the most efficient and willing staff who take a personal interest in their customer’s needs. While Spar is striving to give their customers an enjoyable and memorable shopping experience, they also offer more than 1000 exclusive Spar Brand products, available at stores countrywide. Spar uses only the best and freshest ingredients to make premium quality products at very competitive prices. They have their products tested by an independent laboratory on a monthly basis to ensure that they keep ahead of brand standards. They offer customers a ‘Double Your Money Back Quality Guarantee’ on all of their Spar products, including fresh produce purchased from them, because they feel confident about their standards. Their goal is to provide their customers with unwavering quality of the highest standards, complemented by excellent and personalised service in warm and inviting community environment. Besides all of this, the Spar Group’s Marketing Intelligence Division provides different services, including auditing, control studies and mystery shops in all classes of trade. The Spar Group’s In-Store Event Programmes offer sampling, new item introductions, thematic events, community programmes and fulfilment distribution. The Spar Group’s total annual retail property investment value is approximately, R2,5 billion. Using the information in the case study, conduct an analysis of the SPAR 20 internal, macro- and market environment

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Analysing the marketing environment Spar group is world-renowned for in-store merchandising in South Africa, the Spar group is a JSE-listed wholesaler and distributor of goods, and service provider to Spar supermarkets. Spar has a clientele worth billions of rands and has approximately 20 00 stores in 35 countries. Communication is very important to the Group and therefore its website enables clients to communicate directly with members of Spar’s merchandising team, and can alert customers of changes in in-store conditions immediately, keeping them in touch with their retail goals. Spar’s merchandising team along with their web-based system ensures that products are on the shelf and in front of customers for longer, assisting time-poor, busy customers. Technology helps Spar to uncover which stores are not performing to expected standards and what the reasons are for this underperformance. Spar’s web-based process analyses real-time data of store conditions. This allows Spar to take corrective action immediately. A more comprehensive control of stores is guaranteed and will lead to increased sales. In the 1960’s, grocery chains emerged in South Africa. In 1963, a group of eight wholesalers were given exclusive rights to the Spar name and brand, and served 500 small retailers. Since then there have been many mergers and takeovers. Today the Spar Group Ltd has six distribution centres one Build it distribution centre. These centres supply goods and render services to more than 1000 Spar stores across Southern Africa. Spar has three store formats, which are Spar for shopping that caters for the neighbourhood, including convenience products, Superspar for one-stop bulk shopping, with products competitively priced, and Kwikspar for everyday convenience. Spar operates under ‘voluntary trading’ principles which means each store has its own regional personality. The Spar Group listed on the Johannesburg Stock Exchange in 2005. Spar has created a culture of caring and community in order to ensure that their customers have consistently enjoyable shopping experience in a family orientated store with friendly staff. Their valued customers are very important to them and they believe in going the extra mile to serve them. They source the finest products and have the most efficient and willing staff who take a personal interest in their customer’s needs. While Spar is striving to give their customers an enjoyable and memorable shopping experience, they also offer more than 1000 exclusive Spar Brand products, available at stores countrywide. Spar uses only the best and freshest ingredients to make premium quality products at very competitive prices. They have their products tested by an independent laboratory on a monthly basis to ensure that they keep ahead of brand standards. They offer customers a ‘Double Your Money Back Quality Guarantee’ on all of their Spar products, including fresh produce purchased from them, because they feel confident about their standards. Their goal is to provide their customers with unwavering quality of the highest standards, complemented by excellent and personalised service in warm and inviting community environment. Besides all of this, the Spar Group’s Marketing Intelligence Division provides different services, including auditing, control studies and mystery shops in all classes of trade. The Spar Group’s In-Store Event Programmes offer sampling, new item introductions, thematic events, community programmes and fulfilment distribution. The Spar Group’s total annual retail property investment value is approximately, R2,5 billion.

Using the information in the case study, conduct an analysis of the SPAR 20 internal, macro- and market environment

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