Promotion and communication goulart sparapani



MODERATOR(S)	Dr N Cunningham

NUMBER OF PAGES OF QUESTION PAPER (Including cover page)

Continuous assessment 2 2020: BBH11B1/MAR01B1/CMS01B

INFORMATION/INSTRUCTIONS:

• Read the questions carefully and answer only what is required.

• The answers should be provided on a Word Document, using the supplied template*

• Follow the formatting instructions on the template (e.g. font size, spacing size)*

• *If you cannot access either Word and have to use your phone to complete this

• Review your theory thoroughly and research the case study thoroughly before attempting

to answer the questions.

based on your experiences of Mr Price and its competitors.

• The general UJ policies, procedures and rules pertaining to online assessments and

answer the questions that follow on the template provided. If you do not have access

to word you may answer on paper and upload photos of your answer.

Continuous assessment 2 2020: BBH11B1/MAR01B1/CMS01B

Mr Price clothing stores of which 468 are in South Africa. They aim to satisfy their customer’s needs to fashion by ensuring that all the clothing is on trend. The group conducts frequent research on fashion and through communicating with customers through social and digital media. Their buyers travel internationally to find out what are the newest trends in fashion and always test the products before bringing them into the stores. They purchase in large quantities in order to ensure they can keep the prices low for customers. They were rated as the #1 fashion retailer in South Africa on Instagram in July 2020 with 80% of their online sales coming from a mobile device. Their website also mentions that 59% of customers are influenced by social media in terms of deciding where they will shop. They have over 1 million Instagram and 2.2 million Facebook followers. As part of their Omni-channel strategy, more

Mr Price is rated as the 21st most valuable brand in South Africa (Mr Price Group Limited, 2020a). Mr Price Clothing has a number of brands available in its store, include RT, Oakridge and Red. They have recently launched the Project brand of clothing as well as the Scarlet-Hill Range which is a newly launched cosmetics range (Mr Price Group Limited, 2020b). They advertise their products on a variety of platforms such as on YouTube, using bloggers, their website, the App, magazines, radio and Television. On their website there is a link dedicated to all the promotions they are running (Mr Price, 2020a). Mr Price founded the “Together we

do good” initiative which is their sustainability drive. They follow leading international practice on sustainability and include initiatives such as sourcing sustainable cotton for their clothing (target of 80% by 2023); creating a sustainable value chain (partnering with sustainable suppliers and being innovative in the supply chain); driving quality education for children (through the Mr Price Jump Start and Foundation schools); enabling youth to bridge the gap between education and generating income; developing wellbeing and engagement amongst their employees; and to reduce the environmental impact of their business (using less plastics and implementing innovating “green” practices”) (Mr Price Group Limited, 2020c).

In addition to the basic information provided in the case study above, it is highly suggested that you read up more about Mr Price, its brands and sustainability efforts as well as finding and looking at their various promotions on different media. To assist you with this, here are some links to some websites that can provide some additional information:
1.
2.
3.





7.
8.
9.

Question 1: [17 marks]

1.1 Customer value-based pricing user consumers’ perceptions of value and not the costs

motivate your answer in a) above. (2x1) (2)

1.2 There are two types of value-based pricing. Considering this:

in their daily operations. (4x1) (4)

1.4 One pricing strategy that Mr Price could use is competition-based pricing. Considering

1.5 The price-demand relationship has a major influence on pricing strategy.

a) Assume Mr Price is selling t-shirts that are similar to those in other clothing stores.

unique features, is the demand curve this this make-up range elastic or inelastic

(1 mark)? Motivate your answer by providing a specific example relating to Mr

a) Identify which pricing strategy they used (1 mark).

b) Provide two specific examples / reasons to motivate your choice (2 marks).

example of each of the seven (7) price-adjustment strategies that Mr Price (or example

relevant to the clothing industry) could implement (7x1). (7)

3.1 Mr Price makes use of a range of channel members in their value chain including

suppliers of clothing, transportation companies, storage companies, advertising

Provide a specific example to motivate your answer (1 mark). (2) b) Identify whether Mr Price uses a direct or indirect marketing channel (1 mark).

Provide a specific example to motivate your answer (1 mark). (2) 3.3 Describe how Mr Price uses a multi-channel distribution system (2 marks) and why this is a good system to use (2 marks). (4) 3.4 Identify whether Mr Price uses intensive, selective or exclusive distribution for their Scarlett-Hill make-up range (1 mark). Provide a motivation for your decision by providing examples relating to Mr Price. (1 mark). (2)

Page 6 of 6