BEM 321
CASE STUDIES
, CHAPTER 1
The Nature of Strategic Marketing
CASE STUDY
THE PEPKOR GROUP
PEP stores is a well-known retail brand in South Africa, known for its affordable clothing, footwear and
textiles. It is part of the Pepkor group, which operates in eleven countries, including Australia, the UK and
South Africa. But the Pepkor group also has other brands, namely Ackerman’s and Shoprite (in South Africa)
and Best & Less (Australia). All of these brands contribute to the development of group and its objectives.
While part of the Pepkor group, PEP’s mission is stated as follows: ‘We are the friendliest and most trusted
retailer, offering wanted products and services at the lowest prices’ while their values are ‘honesty, passion
and resourcefulness’. In recent years, PEP has expanded into offering mobile services as well as financial
services (such as loans and funeral services). All of these additional services are aimed at a clearly defined
target market. They have also opened stores focusing on homeware (PEPhome) while also launching a chain
of discount variety stores (Dealz), currently comprising 200 stores.
Another strategic development has been the introduction of a parcel service (PAXI). This allows customers,
agents and suppliers to send parcels and documents from one PEP store to another, where the customer can
collect the parcel that has been sent. This parcel service is possible due to the high number of PEP stores
spread throughout South Africa (currently 2 200 retail stores).
CASE STUDY QUESTIONS
1. How do you think the introduction of the parcel service (PAXI) contributes to the mission of PEP?
With the mission including aspects such as interpersonal aspects (e.g., friendliness and trust) as well as
offering “wanted products and services”, the parcel service has the potential to support the mission.
The parcels reflect items that that customer needs, making Pep a place to go for these items as an important
contact point. This reinforces a positive perception of Pep as a “part of the customers’ life”, reinforcing their
brand position.
Parcels and parcel delivery has been an issue in South Africa for many years, especially when evaluating the
other options that South African’s can use. Other options are very expensive (e.g., couriers) while others
despite being more affordable, are riskier (e.g., the SA Post Office). By delivering parcels to customers
(untampered and in their original condition), Pep can convey the message that they are trustworthy, which is
one of the aspects mentioned in the mission. There is a positive impact on the market as it will increase the
trust in not only Pep’s ability to deliver parcels but will also transfer to their products and the other services
they offer.
The introduction of this new service requires Pep to implement new technologies and processes in the stores,
which show the contribution of this service to the mission of Pep.
CASE STUDIES
, CHAPTER 1
The Nature of Strategic Marketing
CASE STUDY
THE PEPKOR GROUP
PEP stores is a well-known retail brand in South Africa, known for its affordable clothing, footwear and
textiles. It is part of the Pepkor group, which operates in eleven countries, including Australia, the UK and
South Africa. But the Pepkor group also has other brands, namely Ackerman’s and Shoprite (in South Africa)
and Best & Less (Australia). All of these brands contribute to the development of group and its objectives.
While part of the Pepkor group, PEP’s mission is stated as follows: ‘We are the friendliest and most trusted
retailer, offering wanted products and services at the lowest prices’ while their values are ‘honesty, passion
and resourcefulness’. In recent years, PEP has expanded into offering mobile services as well as financial
services (such as loans and funeral services). All of these additional services are aimed at a clearly defined
target market. They have also opened stores focusing on homeware (PEPhome) while also launching a chain
of discount variety stores (Dealz), currently comprising 200 stores.
Another strategic development has been the introduction of a parcel service (PAXI). This allows customers,
agents and suppliers to send parcels and documents from one PEP store to another, where the customer can
collect the parcel that has been sent. This parcel service is possible due to the high number of PEP stores
spread throughout South Africa (currently 2 200 retail stores).
CASE STUDY QUESTIONS
1. How do you think the introduction of the parcel service (PAXI) contributes to the mission of PEP?
With the mission including aspects such as interpersonal aspects (e.g., friendliness and trust) as well as
offering “wanted products and services”, the parcel service has the potential to support the mission.
The parcels reflect items that that customer needs, making Pep a place to go for these items as an important
contact point. This reinforces a positive perception of Pep as a “part of the customers’ life”, reinforcing their
brand position.
Parcels and parcel delivery has been an issue in South Africa for many years, especially when evaluating the
other options that South African’s can use. Other options are very expensive (e.g., couriers) while others
despite being more affordable, are riskier (e.g., the SA Post Office). By delivering parcels to customers
(untampered and in their original condition), Pep can convey the message that they are trustworthy, which is
one of the aspects mentioned in the mission. There is a positive impact on the market as it will increase the
trust in not only Pep’s ability to deliver parcels but will also transfer to their products and the other services
they offer.
The introduction of this new service requires Pep to implement new technologies and processes in the stores,
which show the contribution of this service to the mission of Pep.
