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  3. Pick n Pay SWOT Analysis

Pick n Pay SWOT Analysis

Here is a detailed SWOT analysis of Pick n Pay covering strengths, weaknesses, opportunities and threats.

Published by MBA Skool Team in Lifestyle and Retail category Last Updated: March 13, 2023Read time:

Pick n Pay Strengths

  1. Cost advantage due to economies of scale
  2. Rapid Online growth is boosting sales through a new channel
  3. Customer loyalty is high because of strong focus on good service
  4. Strong brand equity developed due to long heritage and presence in over 10 countries
  5. Strong efficient Supply chain managed by 50000 people
  6. Reputation management is done extensively by the company including a major rebranding in 2007
  7. CSR programs and Sponsorship have improved the company reputation improving its brand equity and image as a family store

Above are the strengths in the SWOT Analysis of Pick n Pay. The strengths of Pick n Pay looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Pick n Pay Weaknesses

  1. Less marketing communication to public about their image
  2. The large size had made the company complacent in its operations leading to loss of major market share
  3. Slower rollout into emerging markets

These were the weaknesses in the Pick n Pay SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Pick n Pay Opportunities

  1. Emerging markets and expansion abroad
  2. Innovation in supply chain technology
  3. Product and services expansion
  4. Distribution and national expansion, 710 stores nationally
  5. Franchise model is a lucrative opportunity for a company like Pick n Pay with a long heritage and strong brand equity
  6. Rebranding the company to appeal to younger target segments
  7. Adding new exclusive brands and products to improve sales

Above we covered the opportunities in Pick n Pay SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Pick n Pay Threats

  1. Intense Competition from existing retailers
  2. Economic slowdown
  3. Lower cost competitors or imports
  4. Product substitution
  5. Walmart, as a competitor penetrating the market with better global ties and cheaper substitute (imported) products
  6. External Changes like changing tax policies, government regulations, etc.

The threats in the SWOT Analysis of Pick n Pay are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Pick n Pay SWOT analysis.

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About Pick n Pay

The table below gives the brand overview along with its target market, segmentation, positioning & USP

Pick n Pay Overview
Parent Company

Pick n Pay Holdings Limited

Category

Supermarket Chain

Sector

Lifestyle and Retail

Tagline/ Slogan

Inspired by You

USP

Family store focused on the customer

Pick n Pay STP
Segmentation

Sells across all demographic segments

Target Market

The middle and higher-income markets

Positioning

Family Focused store with good service and quality

 

This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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