1.1. Overview
PEP is a multinational company which started operating in 1965 and the first store was opened in Northen Cape. PEP stores sells mainly clothing and footwear to its customers. Above that PEP also offers other products such as homeware and cellular phones. PEP also has license for selling airtime for the cellular networks. Over and above the products offering PEP stores also offers a range of services which include cash-backs, credit loans facilities, funeral policies, cash transfers, bull payments just to mention a few. PEP target selling at the lowest possible price in huge volumes to low income earners. [2][3].
1.2. PEP’s mission statement
“We strive to be the friendliest and most exciting retailer offering …show more content…
PEP’s Value
“Honesty, Passion, Resourcefulness” [2].
2. SWOT Analysis
2.1. Strength
• PEP operates more than 2000 retail stores in Southern Africa [2]
• PEP has shown double digit growth for the past 17 years for both sales and operating profit. [2]
• PEP sells 55% of all schoolwear and 72% of school shoes sold in SA, PEP sells 32% of all baby and 18% of all kids clothing in South Africa [2]
• PEP owns a clothing factory in Cape Town that manufactures most of its schoolwear [2][3]
• PEP has its own in-store radio station called Feelgood FM which aims to entertain shoppers and inform them about specials and promotions [2].
• PEP conducts more than 300 million customer transactions annually [2]
2.2. Weakness
• Manly the products offered by Pep Stores are of low to medium quality
• PEP aims to sell at the minimum possible price and keep the profit margins low.
• Although the mission statement of PEP confirms they offer durable products the products themselves do not confirm the mission.
• PEP targets the low income earners only and brand does not appeal to optimum class.
• PEP does not have a good brand reputation
• Some PEP branches are situated in Rural areas and also in areas where there are high chances of occasional violence …show more content…
• The main differentiator for PEP is there is value in the price that they offer to their customers.
4.6. 4 P
• Product – Improve quality to appeal to the middle earning class
• Price – Keep the price low to enable affordability and value for money by consumers
• Promotion
• he cloths are described as durable as per the mission and vision statements.
4.7.
Sponsor major sporting activities to improve brand awareness
5. Positioning Exercise
5.1. Quality or price positioning
• The price offered for the clothing is within reach for the customers
• The cloths are described as durable as per the mission and vision statements.
5.2. Product benefit positioning
• The customers will be getting value for money
• Durable and affordable clothing and cheapest cellular phones solutions.
5.3. Customer Benefits positioning
• The customers will be getting value for money
• Durable and affordable clothing and cheapest cellular phones solutions.
6. Conclusion
PEP should not change their current slogan for PEP’s customers are remarkable people who, on a very small budget, make it possible for their families to live with dignity and