Marketing Plan For Pick N Pay

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1. Alternative 1: Franchising One of the options with lower risk for Trader Joe’s in order to enter into South Africa’s market is franchising due to the low investment needed and the relative exposure for the business. 1.1 Arrangement with Pick n Pay A great ally in this field could be Pick n Pay, because the company is already using the master franchising system in South Africa in some of the stores. Moreover, the Pick n Pay already developed a strong infrastructure in the African country where the supply chain system management is established. Pick n Pay sales strategy is based on affordable prices combined with maximum efficiency for the customer in order to increase the customer’s experience. The lack of private brand in some of the products that the company provides in the stores and the low diversity of premium and gourmet products could increase the interest of the company in making a master franchise agreement with Trader Joe’s to have the rights to develop sub franchisees in South Africa. Therefore, Pick n Pay could use the trade mark of Trader Joe’s, the work philosophy and sell the private brand of the company. The network established over the years by Pick n Pay would be really helpful to grow faster in South Africa and also the lack of competitors in the private brand groceries and gourmet in the country would increase the attractiveness of the brand with a great potential to grow. (Pick N Pay, 2016) The franchising agreement would be for a period of 20
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