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Publication date: October 2018 Next publication: December 2019 Marketing at Retail Report
Publication date: October 2018
Next publication: December 2019
Marketing at Retail Report
| Masswarehouse Makro | Marketing at Retail © 2019 |
Retail Positioning
• Everything you could ever want. And more. For less
The Makro Brand is BIG on:
• Range and assortment – in-store and online
• Deals and ‘More 4 less’ focussed promotions
• High quality and high value
• Convenience and Service
Commercial Positioning
• For you. For your business. For your customers
Marketing at Retail
Brand Positioning | Big on life
“Makro is all about the deal” Melanie Louw, Makro Marketing Director
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| Masswarehouse Makro | Marketing at Retail © 2019 |
Marketing at Retail
Makro Shopper Marketing Key Elements
• In a context of accelerating change and economic strain, Makro’s
shopper marketing approach responds to the current and future
influences by exploring innovative ways to provide shoppers with
access to Makro’s value proposition, focusing on relevance of the
shopper offer and convenience
1 | Community retailing
2 | Effective shopper / store segmentation
3 | Optimise media platforms
4 | Improve price perception
5 | Drive shopper loyalty
6 | Differentiation through destination categories
7 | Create a unique shopping experience
To make a difference in the communities they interact with daily, by actively
supporting projects aimed at upliftment and enrichment
To ensure the Makro brand meets the needs of shoppers across a unique and
clearly defined shopper base, based on Makro card data insights
To continue to be a promotion-driven retailer, maximising reach and share-of-
voice by implementing a broader marketing strategy through multiple
channels encompassing print, online, digital, SMS inter alia
To maintain price leadership positioning by sourcing well-priced merchandise,
and formulating deals that offer shoppers exceptional value
To grow loyalty with shoppers by creating an omni-channel experience from
the ‘one-stop’ in-store drive, through to tailor-made innovations on e-
commerce and m-commerce platforms
To maintain leadership in general merchandise, and continue to improve the
retail food offering by growing targeted categories and enhancing the value
proposition of low prices, focused ranges and great quality
To create an enjoyable retail environment by ensuring a consistently excellent
shopper experience across multiple channels
Key Element Objective
into the changing dynamics and trends driving trade spend
to improve and align your shopper marketing, customer
marketing and new product development plans.
For more information contact Talisha on [email protected]
NEED
TO
KNOW MORE
provides
in-depth insights
Page 3
| Masswarehouse Makro | Marketing at Retail © 2019 |
Marketing at Retail
Centre of Community
• Serving the community is regarded as integral to Makro’s corporate social investment programme. CSI partnerships are geared
to make meaningful contributions to uplifting the lives of the underprivileged within local communities
• Makro contribute 1% of after-tax profit to CSI initiatives that support education-enabling and community sustainability initiatives,
with the main focus on education, early childhood development and school nutrition
FY2017: R23.4m invested in CSI initiatives
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| Masswarehouse Makro | Marketing at Retail © 2019 |
Primary Shoppers - Retail
LSM 6 – 10
• Shopping for home use
• Shoppers demand value and an efficient shopping experience
Secondary Shoppers - Wholesale / Commercial
LSM 2 – 8
• Serviced by the independent trade which sells on
o Retail –Commercial re-sale – purchasing products for re-sale,
from franchise stores, to traders and tavern owners
o Commercial own use – purchasing a variety of products for use,
such as restaurants, offices, schools etc.
Shopper activity is segmented by:
Marketing at Retail
Shopper Profile | Shopper Segmentation
Value
Categories
shopped
Frequency of
shop
Basket
composition
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| Masswarehouse Makro | Marketing at Retail © 2019 |
Print TV
Social Media Radio
TV advertising is used for national campaigns
as at October 2018
55.3%of adspend
35.9%of adspend
6.7%of adspend
347,387 fans+1,299 fans per month
55,882 followers13,155 tweets
Available in regional newspapers and in-store, as broadsheets/catalogues
Source: Nielsen Ad Dynamix: January 2016 – December 2016, www.makro.co.za, Socialbakers
Note: Nielsen Ad Dynamix Marketing Spend measures gross expenditure from the media owner’s rate cards. The following discounts are not taken into account – barter
deals, agency discounts, volume discounts, make goods (mistakes rectified at no charge, fillers and freebies. Direct mail is under represented as not all knock-and-drop
companies disclose figures and company managed direct mail campaigns not included
Marketing at Retail
Media Platforms | Media Channels
1,844,175 views5,499 subscribers
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| Masswarehouse Makro | Marketing at Retail © 2019 |
Marketing at Retail
Print | Newspaper, Broadsheet and in-store catalogue
• Broadsheet, press adverts and catalogues are an important communication tool for Makro’s diverse retail and commercial
shopper base, across the LSM spectrum, and is the biggest portion of advertising spend
• Print advertising supports the brand positioning ‘BIG on Life’ followed by a theme and relevant categories, and is available in
regional newspapers, in-store and can be downloaded on the website
Broadsheets Press Advert Catalogue
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| Masswarehouse Makro | Marketing at Retail © 2019 |
• The online platform provides
shoppers a wider range and
broader choice (+/- 2% of total
sales)
• Online orders are delivered via
click and collect, pick up lockers
or nationwide delivery
• The Makro Marketplace is
where 3rd party sellers list and
sell new products not already
available in a Makro store
Facebook and Twitter
• Makro has a strong presence on both platforms,
allowing their target audience to connect and
engage with the brand
• Promotional themes are carried through on each
platform
YouTube
• A video-sharing platform, where Makro’s target
audience can view, upload and share content
Social MediaWebsite & Online Shopping
Online Banner Campaigns
Marketing at Retail
Direct Mail
347,387 fans+1,299 fans per month
55,882 followers13,155 tweets
1,844,175 views5,499 subscribers
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| Masswarehouse Makro | Marketing at Retail © 2019 |
Competitive Pricing
Marketing at Retail
Price mission: ‘save shoppers money so they can live better and trade more profitably’
• Makro has seen significant success with innovative promotional offers such as the effective 100 days / 100 Rand Deals
promotions and pricing activities to ensure shopper engagement e.g. multi-buys / bulk / one-day deals and Walmart roll backs
Multi-buys / Bulk Deals | Retail & Commercial One-Day Deals | price-driven to increase online & in-store traffic
Roll Backs | Walmart branded across trading brandsStraight Price Deals | 3 months
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| Masswarehouse Makro | Marketing at Retail © 2019 |
• The Makro card provides a rich source of data for Makro, unlocking invaluable shopper insights that inform targeted marketing
and promotional campaigns
• The Makro card is now conveniently stored on the mCard App
Loyalty Drivers | Makro Card
“What makes us extremely unique is that you cannot purchase from Makro without a Makro card, so we have a very unique
customer database which tells us what a customer bought and when. That gives us a very intimate understanding of what our
customers want or need when they shop, and we communicate regularly with them.” Melanie Louw, Makro Marketing Director
Marketing at Retail
• mCard, introduced in July 2017, is an app for shoppers providing a gateway to the mRewards loyalty rewards programme,
which was launched in June 2016
• This integrated mobile platform offers shoppers an opportunity to store their Makro card details, earn cash rewards (stored in
an mWallet), and place orders. The rewards system is built on the promise of cash rewards (i.e. not a points-based loyalty
system)
• mWallet allows Makro and Suppliers to interact directly with shoppers
Loyalty Drivers | Mobile App
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| Masswarehouse Makro | Marketing at Retail © 2019 |
• All cards mentioned below require a Makro Card
• Linked to e-commerce and digital is the provision of a broad array of financial services
Loyalty Drivers | Value-added services
Marketing at Retail
Makro Credit Card Makro Finance Card Makro Cash Loans
m-Student My Payments Payment options
ATM machines Rewards Stokvel
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| Masswarehouse Makro | Marketing at Retail © 2019 |
Loyalty Drivers | Omni-channel retailing
• Online orders are collected or delivered in 3 ways:
o Click & collect in-store
o Nationwide delivery to home
o Makro Pick-Up Lockers at various convenient and safe locations i.e. garage forecourts, fast food retailers and office parks
• Makro acquired WumDrop to enable same-day delivery capability – similar concept as UBER for deliveries
“Our goal is to become the dominant
last mile delivery service and this
acquisition allows us to expand our
business into areas we don’t usually
service,” WumDrop co-founder Simon Hartley
Marketing at Retail
WumDrop
‘Last Mile Delivery’
Click and Collect Pick-Up Locker
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| Masswarehouse Makro | Marketing at Retail © 2019 |
• The food range in Makro aims to increase foot traffic,
basket size, and attract new shoppers
• Makro is committed to improving the offering by growing
targeted categories and enhancing the value proposition
of bringing convenience and affordability to local
households and businesses
• Food and fresh offering increasing shopper visits and
basket size
Marketing at Retail
Focus Categories |
‘Food reduces the cyclicality of the stores, and increases the frequency and customer
types to the stores.’ Guy Hayward Massmart CEO
Food
General MerchandiseHealth & Beauty Baby
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What's going on in-store?
| Masswarehouse Makro | Marketing at Retail © 2019 |
Directional signage | Aisles
• Wider aisles and clear directional signage allows for ease of navigation for both shoppers and staff packing the shelves
• The central aisle is very reflective of the Walmart ‘Action Alley’ concept, allowing for more frequent interruption points
What’s going on in-store?
Dump bins lining action alley
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| Masswarehouse Makro | Marketing at Retail © 2019 |
What’s going on in-store?
Themed Promotions
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| Masswarehouse Makro | Marketing at Retail © 2019 |
Price Promotions
What’s going on in-store?
• ‘100 Rand deals’ and ‘more 4 less’ campaigns emphasize Makro’s value deal positioning
Page 17
| Masswarehouse Makro | Marketing at Retail © 2019 |
What’s going on in-store?
Collaborative Promotions | Multi Supplier opportunities
Birthday Promotion - 22 Jul - 20 August 2018
Supplier Promotion
Drought Campaign – valid from 01 Jan - 31 Mar 2018
win a travel dash to 1 of 9
dream international destinations
Swipe Makro card for automatic entry
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| Masswarehouse Makro | Marketing at Retail © 2019 |
What’s going on in-store?
Bulk Display Opportunities
Blitz Displays
Gondola End |
Light Boxes
Bulk Display
Store within a Store
FSUs
Dump Bins
| Masswarehouse Makro | Marketing at Retail © 2019 |
What’s going on in-store?
Retailer POS
Makro specific POS supports product offerings and savings in-store
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| Masswarehouse Makro | Marketing at Retail © 2019 |
Supplier POS
Mega vision boards above shelves
work well as no supplier category
banners / dividers are allowed
Basket cladding to ensure product standout on shelf Pallet wraps to drive promotions
What’s going on in-store?
Limited POS options due to the trading nature of the store environment
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Maryla Masojada | Lead Analyst
Adrienne Osberg | Retail Analyst
