How to price better against the competition
Price optimisation is a business strategy for retailers to seriously consider implementing as it helps them improve margins and streamline the supply chain. But, more importantly, it provides retailers with a tool to make intelligent pricing decisions.
Price optimisation works by using sophisticated computer software to adjust prices to suit existing market conditions, such as, seasonality, in-store promotions, consumer behavior and the like. This software also has the ability to predict and forecast what price is best to charge in these circumstances. Consequently, it can assist retailers in pricing better against the competition.
International retailers such as Walmart, Tesco’s, Kroger and SuperValu are already implementing price optimisation with reported success, using software designed by external service providers like Oracle ProfitLogic and Revionics to name a few.
In South Africa where competition will become even tighter with the arrival of Walmart, the use of price optimisation may give existing retailers the innovative edge over new contenders.
Yours in Retail and FMCG
Wendy Smith
P.S. Look out for this editorial on our editor’s blog.
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Fastmoving Spotlight
new products · brand activity · liqour · jobs · events
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· Woolworths gets ‘better sourcing’
CEO Ian Moir said better offshore sourcing and better negotiations also helped increase turnover 9,4% to R25,8bn. "We saw significant improvement in profitability across all categories," he said.
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· Increase in consumer inflation on the cards
Inflation figures due on Wednesday will highlight the dilemma the Reserve Bank faces in the months ahead. On the one hand, prices are set to rise, but on the other, growth in the economy will stutter in the face of global and domestic influences.
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· Country Bird posts profit increase
Poultry producer Country Bird Holdings (CBH) on Tuesday posted a 178% rise in diluted headline earnings per share to 64.57 cents for the year ended June, from 23.25 cents in the previous comparable period.
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Economic News
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Retail competition to increase imports
Competition in the retail industry will force an increasing number of retailers to buy their products more cheaply overseas. But this can be to the detriment of local suppliers. South African retailers currently buy around 97% of their food and grocery products in South Africa, but in recent years the trend has been to increase imports.
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New Products
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New Johnson's 24hour Moisture face and body cream
Unlike any other dual moisturiser offer on the market, New Johnson’s® 24 hour Moisture Face & Body cream contain SPF 8 sunscreens to protect skin against the damaging effects of the sun – protecting your skin when it needs it the most.
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New Weet-Bix Bites – little biscuits packed with goodness
South Africa’s favourite cereal, Weet-Bix, now also comes in delicious bite size biscuits. Weet-Bix Bites are made from wholegrain wheat, a source of dietary fibre and wheat germ.
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Johnson’s Dreamy Skin hand cream
Johnson’s® extends their hand cream offering with a moisturising solution specially developed for night-time, with JOHNSON’S® expertise in soft and delicate skin.
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Saldanha flaked light meat tuna
For a tasty, healthy meal try Saldanha’s new delicious flaked light meat tuna range. With five distinct varients to choose from, meals are now quick and easy to prepare.
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King Cone Truffle
King Cone Truffle is the new Royal variant to the King Cone range, proving to be a decadent eat. This unique cone contains Creamy vanilla ice cream with an oozing, thick, decadent chocolate centre, in a crispy wafer cone, topped with tri-coloured chocolate balls.
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Brand Activity
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Clorets cooks up a deliciously pungent meal with a fruity surprise!
On Sunday 28 August, Clorets – the renowned ‘Fresh Breath Expert’ - teamed up with Sibahle Mtongana; Drum Magazine’s Food Editor and host of ‘Cooking with Siba’, and her celebrity friend DJ Sbu to host a cook off at Panyaza’s Shisa Nyama in Jabavu, Soweto.
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Lipton Ice Tea launches new 200ml and 1 litre in Tetra Pak
All the great taste and refreshment consumers expect from Lipton Ice Tea, now available in a convenient 200ml Tetra Pak for on the go and a 1 litre for your fridge
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JWT Johannesburg brings the Verwohnaroma closer
This August, JWT Johannesburg is spreading the Jacobs Verwohnaroma across the nation’s airwaves, promoting the coffee brand’s new positioning – “The Verwohnarmona Brings You Closer”. Each radio station created their own unique and memorable competition depicting the core identity of the particular radio station and the Jacobs Krönung brand based on their interpretation of what “Brings you closer
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Iffco appoints Grapevine Communications
IFFCO SA has appointed Grapevine Communications, an agency which has extensive FMCG experience, to implement its PR/Communications campaign for the company and their flagship brand, Tiffany, a range of impulse foods including biscuits, confectionary and chocolates.
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Featured Brands
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Letibalm
Letibalm is the only product available in South Africa, specially formulated for treating damaged nose and lips as well as chin areas. It is suitable for the treatment of dry skin, chapping and cold sores caused by repeated nose-blowing.
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Bepanthen ointment
Bepanthen® offers ‘Daily Protection and Gentle Healing’ to all babies in nappies and consequently peace of mind to their mothers. In fact, Bepanthen® is the new ideal helping hand at nappy change times because it provides an ointment for use at every nappy change ensuring prevention and treatment of nappy rash.
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Featured Retail Services
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Product of the Year
Product of the Year has received unprecedented interest in its latest round of research. The organization is the largest in the world dedicated to recognizing and rewarding innovation in consumer products. As a consumer champion, Product of the Year challenges companies that manufacture or import products for South African consumers to prove that their products really are as good as claimed in marketing communication.
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Fusion Outsourcing
Fusion Outsourcing has extensive experience taking care of local and global clients’ customers. Our Cape Town and Johannesburg facilities are state-of-the-art and our infrastructure aligned with international best practice. Our dedication to quality and meeting the needs of our clients won us Best Offshore Customer Service Centre and Best Offshore BPO Centre in SA awards, 2008, 2009 and 2010.
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Retail Services News
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Lightstone acquires Douglas Parker Associates
Lightstone is pleased to announce its recent acquisition of the research and business development consultancy Douglas Parker Associates and the expansion of services this partnership brings.
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Nampak Bevcan collect millions for education
Nampak and Bevcan announced that they managed to raise their commitment towards education through the sale of beverage cans, to a total of R8 506 620, as part of their ‘Every-Can-Counts’ campaign
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Imperial Logistics wins Green Industry Leader award
Imperial Logistics has once again been recognised for its ‘green logistics’ evolution, this time with Marketing Director, Abrie de Swardt receiving the Green Supply Chain Industry Leadership Award 2011. The nomination was due to his far reaching work on bringing green to the supply chain both within IMPERIAL Logistics and by spreading the message broadly throughout the supply chain and business communities.
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Imperial delivers sterling financial and operational performance
Commenting on the results, CEO Hubert Brody said: “The group achieved outstanding results across the business despite tough trading conditions in the South African Logistics and Car Rental markets. A recovery in the domestic vehicle market and a strong German economy boosted our Distributorship.
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Bitter recessionary aftertaste
Logistics capacity constraints in the United States (US), one indicator of the pace of economic recovery continue to point to the prolonged aftermath of the Recession. At the same time, such constraints pressurise logistics and supply chain management businesses globally as the Western World continues to struggle with sovereign debt and markets fear a second recession.
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Zetes Media Unveils New Offerings at ProPak 2011
Zetes Media, formerly ProScan, will participate at the ProPak Exhibition with the latest in labelling, coding and marking solutions at the Cape Town International Convention Centre from 25th to 27th October 2011.
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FMCG Jobs
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Operations Director : FMCG Distribution
A large FMCG multinational, expanding at a rapid rate and servicing the West African emerging commodity market, is looking for an experienced Operations Director. This is a newly created position. The incumbent will be responsible for the strategic distribution strategy across 3 business units.
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Managing Director: Commodities
Our client, is a leading FMCG manufacturer, wholesaler and distributor of dry foods in West Africa. They seek to appoint a Managing Director for one of their key businesses with emphasis on gaining further market share in West Africa. As a seasoned Managing Director, familiar turnaround strategies with experience specific to the West African market, you will be required to implement an aggressive strategy to achieve these objectives.
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Graduate positions available at Oceana Group from January 2012
The Oceana Group was incorporated in 1918 and is listed on the JSE. The Group is involved in the fishing and allied services sector and engages in the catching, processing and procurement of marine species. The group has job opportunities for graduates from January 2012.
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Strategy Recruitment Marketing
Strategy Recruitment Marketing is focused on providing tailor-made, alternative recruitment solutions that are based on out-the-box strategic and creative thinking, detailed processes, and keeping abreast of the latest recruitment practices and technology through understanding each client´s critical success factors, to produce impactful results cost-effectively.
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Talented Selections
Talented Selections is committed to identifying highly talented, exceptional individuals who have built solid careers at a middle and senior management level and like us are passionate about what they do. Talented Selections was established in 1998 and offers a customised recruitment solution to the FMCG industry.
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Zakhele Staffing Solutions
Zakhele Staffing Solutions believes in developing and maintaining Long-Term relationships with Candidates and Clients. Our objective is to introduce exceptional Human Capital to enhance the productivity of the company as well as the opportunities for individuals.
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Nicolene Di Bartolo
Leadership is action... not position! Business Leaders engage our services to identify individuals who will elevate their organisations to new heights. It is our mission to source exceptional talent in mid-to executive management levels across all job categories. We support these extraordinary individuals in furthering their careers
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Events
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The Good Food & Wine Show, Coca Cola Dome, 22-25 September 2011
It’s the country’s biggest food and beverage exhibition, The Good Food & Wine Show. Taking place at the Coca Cola Dome, 22-25 September, visitors can expect to see the winner of MasterChef Australia Series 2; Gordon Ramsay.
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Retail World Africa 2011. 3 October 2011 to 6 October 2011, Cape Town
Retail World Africa is a unique offering in the African market and is Africa’s only conference and business zone dedicated to growing this sector. It is also the only retail conference in Africa offering innovation and solutions for retailers and merchants.
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SOCAP SA 2011 Conference, 3 Nov and 4 Nov 2011
Diarise the 03rd& 04th November 2011 now…you’re officially booked!
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Networking expo for the logistics and supply chain management industry: March 2012
Increased environmental awareness, the high costs of doing business (including new highway toll fees), crime and risk are just some of the challenges facing the logistics and supply chain management sector in South Africa today.
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FACTS practical allergen management workshop
FACTS are the proud hosts of Practical Allergen Management Workshops, which run over a two-day period and which are held twice per year. These workshops have enjoyed resounding success to date and have proven to be of great value to our food industry clients in their quests towards effective food allergen control. The next workshop will be held in Cape Town on 4 - 5 October 2011
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TOPS Soweto Wine Festival bubbling with excitement!
Mzansi’s most stylin’ wine festival, the TOPS Soweto Wine Festival, is bubbling over with great anticipation and excitement for what is being hailed as the biggest and most vibrant wine festival to date with an over 9000 visitors expected over the 3 evenings
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Driving Efficiency in Retail
With just under a month to go, the first Retail Technology Forum for Africa (12-13 September at the Vineyard Hotel, Cape Town) will host the best retail brands in the business alongside a range of leading local and international suppliers of retail IT solutions
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Food Safety Conference: 21 - 24 November 2011
With recent amendments and changes in legislation ( The Consumer Protection Act 2008, Food Labeling and Advertising Regulations) as well as consumers becoming more aware of their rights, no food manufacturer or producer can afford to miss IIR’s Food Safety Conference.
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2011 Nedbank Cape Winemakers Guild Auction Wines announced
Exceptional wines with a creative edge and great diversity of styles is the hallmark of the 2011 selection of exclusive wines that will go under the hammer at the 27th Nedbank Cape Winemakers Guild Auction at Spier outside Stellenbosch on Saturday, 1 October.
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CGCSA to Host Annual Conference
This year’s conference promises to bring together over 500 delegates from industry experts and thought leaders to top government officials, this year’s conference will raise the bar and play a leading role in providing insight into the industry trends and outlook. Mr. Mncane Mthunzi, CGCSA CEO, said: “The 2010 conference was a huge success and we are extremely excited by the caliber and quality of speakers that we have been able to secure for the 2011 conference including top international speakers”.
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Global Sources China Sourcing Fairs
Cater to more customers with a wide variety of products from China.
· Global Sources, Baby & Children's Products China Sourcing Fair
· Global Sources, Hardware & Building Materials China Sourcing Fair
· Global Sources, Garments and Textiles China Sourcing Fair
· Global Sources, Gifts & Premiums China Sourcing Fair
· Global Sources, Home Products China Sourcing Fair
· Global Sources, Solar & Energy Saving Products China Sourcing Fair
· Global Sources, Electronics China Sourcing Sourcing Fair
· Global Sources, Fashion Accessories China Sourcing Fair
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InneSense Cellar2Cellar Trail Run & Wine Experience
Lace up those trainers and join the colourful parade of wine lovers with a sense of adventure off the beaten track amongst the vineyards for the 2nd Innesense Cellar2Cellar Trail Run & Wine Experience in the picturesque Paradyskloof outside Stellenbosch on Saturday, 17 September 2011.
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Salt & wine pairing dinner with oriental flair in Die Bergkelder
The latest in a series of salt and wine pairing dinners held in Die Bergkelder on the last Thursday of every month offers guests a range of oriental dishes from sushi to lemongrass ice cream, all showcasing the versatility of Fleur du Cap’s elegant Unfiltered wines.
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Featured Client
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Active Clients
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