Intellectual Capital

Massmart defines intellectual capital as how we pass on benefits to our customers
New private label offering launch:
Marketside
into Fresh, Bakery and Butchery

 

ShieldOnline:
351,809
orders placed

 

ShieldOnline sales:
R3.78 bn
The country’s largest pure B2B ecommerce business
DionWired online:
4m
page views: up 100%

 

Every Day
Low Price:
EDLP
Plumb Pride Geyser which has been held at the same selling price for four years.

 

 

In order to remain relevant to a rapidly evolving and digitally connected Customer 2.0, Massmart must understand and stay in touch with the technology innovations impacting retail formats, and the increasingly complex omni-channel paths to purchase.

 

Ecommerce / online

We recognise that smartphone penetration and declining costs of bandwidth are creating a digitally-connected customer that will be ubiquitous in every market segment we serve. Put simply, the internet and mobile phone have created new dimensions in retail that enable us to raise the bar on convenience, service, choice and communication.
To take advantage of the opportunity to win, serve and retain customers in new ways, we must become literate in the new dimensions of retail, acquire new competencies and adapt existing assets, in order to retain and advance our leadership in the categories we trade, and market segments we serve.
To this end we have spent time in various Walmart markets around the world to understand the context, trends, best practices and competency gaps impacting retail operations like ours, in order to inform our strategic choices. We have identified the need to evolve our formats to synthesise the physical and digital elements of retail, in ways that create compelling new value propositions for customers, and to align with their expectations of a digitally-augmented shopping experience; and new standards for convenience, choice and service.
Whilst the strategic choices and directions are clear, online shopping adoption in the markets we serve has been relatively slow. Consequently there is no burning platform driving an online shopping agenda. We therefore have the time to develop important foundation competencies and implement new systems in a phase of omni-channel readiness.
In support of this, all of our operating divisions have brought strong focus to the acquisition of these competencies, and the development of supporting systems required to prepare their operations for omni-channel:

  • Massdiscounters has added the Game catalogue to its DionWired online store, allowing customers to research products before making a purchase
  • Masswarehouse launched Makro’s online store with a complete General Merchandise offering in March, followed shortly by Liquor, allowing customers the convenience of collecting in store or having purchases delivered.
  • Masscash continues to invest in its ShieldOnline trading portal, upgrading mobile interfaces, and extending the portal to cash and carry stores.
  • Massbuild has invested in master data governance systems and processes in parallel with an ecommerce system implementation, and will focus initially on the trade customer.

Private-label

Private label

Shared private label has always been an important focus for our business, as can been seen from the growth numbers across our Campmaster and Gardenmaster brands, as well as small exercise equipment under the Trojan brand. We strive for brand excellence whether through product innovation, world class social media or website platforms off which our customers can not merely view product range, but also engage directly with us. With our Campmaster and Trojan health repair centres we are unrivalled in the space of post-purchase customer care.
The private label space in our Food business is very exciting right now with the recent launch of Marketside into Fresh, Bakery and Butchery and the Equate brand into Health and Beauty.
Shared private label has a duel role: it excites and delights our customers with an outstanding brand encounter; and it allows our business to leverage our strength in terms of joint buying, expansion of brand footprint and ultimately being able to bring our customer more-for-less. We are continually searching for new products, brands and initiatives that both fulfil our customers’ needs and give Massmart Private Label a sustainable advantage.

 

 

Performance of our online offerings in 2014

 

 

Sales up
44%
Website visitors:
1.5 million

 

DionWired

  • 2.3% contribution to total DionWired sales
  • 1.5m website visitors
  • 0.45% conversion rate

DionWired, experienced solid growth for a fourth year in a row. User visits were up 26% to 400,000 visitors for the peak period (November and December), page views were up over 100% to four million for the period and an average online basket size of R3,300 was achieved during this period.

 

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Website visitors in peak period:
1.1 million
Increase in website visitors:
23%

 

 

Game

Christmas came early for Game’s online visitors with a new look Game website launching in early December. The fully responsive Game website was designed to allow for simple, intuitive navigation across all devices from desktop PC to mobile phones.
Other key enhancements included:

  • New look design built on global best practise while maintaining Game’s brand identity
  • Interactive store finder with full Google map integration
  • Improved product information
  • Improved search and site navigation

The website proved extremely popular with Game customers with 1.1 million of them visiting the site over the peak period.

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Sales up
14.7%
Orders placed:
351,809

 

Shield

ShieldOnline is a pure B2B model interfacing directly between suppliers and retailers.  The online platform is used by our suppliers, our internal call centre as well as customers, to place orders.
All sales orders in Shield are placed on the system.  The site has recently been adapted to perform on tablets.
ShieldOnline has automated interfaces to accept incoming electronic orders from both suppliers and customers, as well as an outgoing interface to suppliers and is capable of customer pricing downloads.
At R3,78 billion in sales and in the categories we trade in, as far as we are aware Shield runs the country’s largest pure B2B ecommerce business.

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Website visitors since April 2014 launch:
9,7 million

 

Makro

Since the launch of Makro website from April 2014, the site attracted 9.7 million visitors of which 4.5 million were unique visitors.
Makro Ecommerce went live in April 2014.  During the 30 days between mid-November and mid-December, the site saw a surge in unique visitors to one million. During this period we also ran a successful online campaign named Pricegate on the 5th of December 2014.
Majority of Makro site visitors accessed the site through Desktop (65%) and the remainder accessed the site through mobile (24%) and tablets (11%). Various changes were made to optimise the website and also to improve user experience.

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Every Day Low Price (EDLP)

DLP is Massmart’s simple, transparent approach to shifting consumer behaviour in an uncertain economic climate. It strengthens loyalty and protects the trust that consumers have for Massmart.

 

Massbuild’s EDLP journey to date

April 2012 1 Maximised month-end promotionCancelled mid-month promos, increased month-end promos to three weeks
minimised amount of products promoted in adverts and increased size of pictures
July 2012 2 Changed price communicationimplemented price rounding
developed unique price device
dropped the “was” and “now” pricing and use of “best buy” on selected items
February 2013 3 Do more for less with Builders
new positioning message
May 2013 4 Another Price Lock campaign launched
Following on from excellent results of first campaign – 48 products locked for six months yielding a growth of 75%
Results: A quarterly independent price survey of 150 products showed that Builders Warehouse consistently aligned with the best in the marketEDLP initiatives have enabled us to increase promotional margin on adverts, while still offering consumers excellent value for money and gaining price trustExcellent success stories across multiple price categories such as the Plumb Pride Geyser, which has been held at the same selling price for four years