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Case Study Puregold and Savemore

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LOCATION

Industry Background
 supermarket, a form of grocery store, is a self-
service store offering a wide variety of food and
household merchandise, organized into
departments.
 It is larger in size and has a wider selection than a
traditional grocery store, also selling items typically
found in a convenience store, but is smaller and
more limited in the range of merchandise than a
hypermarket or big-box store.
 The supermarket typically comprises meat,
fresh produce, dairy, and baked goods departments,
along with shelf space reserved for canned and
packaged goods as well as for various non-food
items such as household cleaners, pharmacy
products and pet supplies.
 The traditional suburban supermarket occupies a
large amount of floor space, usually on a single
level.
 It is usually situated near a residential area in order
to be convenient to consumers.
 Supermarkets usually allocate large budgets to
advertising, typically through newspapers. They also
present elaborate in-store displays of products.
 To maintain a profit, supermarkets attempt to make
up for the lower margins by a higher overall volume
of sales, and with the sale of higher-margin items.
 Customers usually shop by placing their selected
merchandise into shopping carts (trolleys) or baskets
(self-service) and pay for the merchandise at the
check-out.
Puregold

Company Background
Company Overview
 Puregold Price Club, Inc. engages wholesale and retail of
sale of food and non-food products in the Philippines. It
offers food products, such as dairy products, meat and
meat products, vegetables, and fruits; and non-food
products, including cosmetics, clothing, shoes, household
chemicals, appliances and household goods, toys, and
sports items. The company operates Pure Puregold Price
Club hypermarkets that offer food and non-food products
to retail customers and resellers; Puregold Junior
supermarkets, which sell products primarily to retail
consumers; and Puregold Extra discount stores. As of
August 26, 2011, it operated 46 hypermarkets, 19
supermarkets, and 7 discount stores in 20 cities and 22
municipalities in Metro Manila and Luzon Island. The
company was founded in 1998 and is based in Manila,
the Philippines
Vision

To be the Most Customer-Oriented


Hypermart offering a One-Stop Shopping
convenience and Best Value to our Customers.
Mission

Sa PUREGOLD, Always Panalo!

Our Mission is to Provide Products, Services and


Business Opportunities to Every Filipino Family.

We Establish Lasting Relationship with Our Suppliers


and Business Partners.

We Strive to Promote the Personal and Professional


Development of our Employees.

We Commit Profitable Results to the Stockholders.


Values
Sa bawat araw, PUREGOLD kasama mo!

Sense of Belonging
- Feeling that one has an essential role to play as part of the
PUREGOLD family
Customer Service
- Providing products and services that meet the demands and
expectations of customers
Dynamism
- Open, adaptive and responsive to the changing environment
Commitment
- Dedicated and conscientious focus on work
Integrity and Loyalty
- Honor, credibility, honesty, dignity, "palabra de honor",
"walking the talk"
History
The advent of one-stop shopping convenience began
in 1998 when PUREGOLD opened its first branch
along Shaw Blvd. in Mandaluyong City. The store
offered a wide array of goods from groceries,
apparel, household accessories and furniture at very
affordable prices. During that time, the one-
stop shopping philosophy was still a novel idea to
consumers but with the excellent service and quality
products it provided, it did not take long for Puregold
to make its mark in the retail industry. Today, it has
grown into a giant retail chain with more than 50
stores nationwide.
History
PUREGOLD TODAY

No. 1 Retailer in the Hypermarket Format

No. 2 Retailer

101 Stores

Over 1,500 Suppliers and Trade Partners

17,899 Employees

Over 120,000 Sari-Sari Stores and Small Businesses Served

Over 400,000 SQ.M. Building and Retail Space

Over 600 Million Sales Transactions


Company Stores
PRICE CLUB

offers a wide variety of general merchandise and a


full-service supermarket with wholesale.

JUNIOR

a neighborhood store which offers targeted


consumers’ items and limited variety of general
merchandise, without wholesale operations.

EXTRA

offers very limited number of SKU's at discounted


prices, provides consumers with a discount on
time, not just price
Savemore

Company Background
 -A chain of neighborhood grocery stores under the
SM Food Retail Group
 -Other Food Retail formats under SM are SM
Supermarket, SM Hypermarket and Makro
 -Tag Line “At you Service!”
 - Savemore stores complement the regular SM
Supermarket as it caters to shopper’s last minute
purchases and their day-to-day budget.
 - offers a more convenient way to shop as it provides
not just the fresh food items but also grocery items,
as early as 8am daily
 -It’s located just around the corner
 -. Despite the smaller space, Savemore Market
continues to offer a wide variety of products.
SAVEMORE

“Save More, your neighborhood SM”


 What makes the Savemore experience different from
that of the traditional SM Supermarket?
 Unlike SM Supermarket and SM Hypermarket,
Savemore supermarkets are located outside SM
Malls, yet still carrying the SM brand. The first one
was opened in 1999.
 It is still part of the SM network where customers can
have the same SM shopping experience – value for
money, convenience, and customer service with a
smile.
What is the concept behind Savemore
Supermarket?
 Savemore is SM’s way of bringing in the
SM shopping experience nearer to where our
shoppers live and work. It is a neighborhood store
that prides itself on great merchandise selection,
convenience and excellent customer service. Instead
of customers having to go to the mall, SM is now
becoming part of our customers’ neighborhood.
How different is it from SM
Supermarket and SM Hypermarket?
How does it compare to the other two
in terms of store size and
merchandise?
 SM Supermarket and SM Hypermarkets are
destinations; places that our customers have to plan
to go to. Savemore, on the other hand, being part
of the neighborhood, creates convenience for
impulse purchases or last-minute needs.
 Because they are smaller, with an area of not more
than 5,000 square meters, it can be put up almost
anywhere, bringing them closer to where
customers live and work. Despite its smaller selling
area, merchandise listing is still complete, but limited
to about 25,000 articles.
If the concept of Savemore is
like that of a neighborhood
supermarket, is the
demographics of the area take
into consideration? How does
this affect merchandise
selection?
 Demographics play a vital role in the selection of
sites to open. The following are being studied: traffic
flow and other establishments surrounding the store,
such as schools, wet markets, etc.
 Adaptation according to the profile of the market in
the area is as important.
 Recognition of the customers’ daily need for fresh
meat, fruits, and vegetables:

 With Savemore, customers need not have big


refrigerators to stock up on fresh items. They can find
their fresh needs at Savemore daily, and at any time of
the day.
What considerations do you take
when planning Savemore locations?

 We open Savemore in areas where we feel we are


welcome to be part of our customers’ lifestyle. Our
main message to them is “Good food need not be
expensive.” – Henry Sy (Phil. Star interview)
 It’s all in the spirit of customer service. Bringing in
the convenience and reliability of an SM
supermarket closer to customers. Here, Savemore
can offer them a wide range of quality products,
competitively priced, in a clean, air-conditioned
environment, with our trademark customer service.
PUREGOLD
 PureGold-Price Club
 PureGold Junior
 PureGold Extra
Puregold Price Club Inc.
 PureGold opened its first store at Shaw Blvd.,
Mandaluyong City during the late 90’s.

 The PureGold concept (Price Club) is the same with


the concept that Duty Free offers.
 Also, PPCI is the same with the services and
merchandises that Makro, S&R, and other exclusive
supermarkets but without the need of membership.
 offers a wide variety of general merchandise and a
full-service supermarket with wholesale.
Puregold Junior
 a neighborhood store which offers targeted
consumers’ items and limited variety of general
merchandise, without wholesale operations.
 Mostly, Puregold Junior branches are strategically
placed around wet and dry market.
 With the assumption that customers would prefer to
do their grocery at Puregold because of these
advantages:
1. Convenience (air-conditioned)
2. Safety and Security
3. Products are offered at a reasonable price
Puregold Extra
 offers very limited number of SKU's at discounted
prices, provides consumers with a discount on time,
not just price.
 The concept of Puregold Extra is the same with
convenience stores (Ministop, 7eleven, etc.) but has
a relatively larger space, closely comparable to a
grocery store.
Savemore Branches Nationwide
Urban Areas
-Festival Mall, Alabang
- Riverbanks Mall, Marikina - Savers Square Center Taft
1999 – The first Savemore - North Edsa Annex
Market - Savemore Mezza
- Savemore Laong laan
- Savemore P. Tuazon
- Savemore Del Monte
- Savemore Amigo Mall
- Savemore Mega Center
-Savemore Taft
- Savemore Broadway
- Savemore Anonas
- Savemore Libertad
- Savemore Novaliches
- Savemore Visayas Ave
- Savemore West Kamias
SAVEMORE RIVERBANKS MALL, - Savemore Pasong Tamo
MARIKINA - Savemore Satolan
- Savemore Malabon
- Savemore Market City
- Savemore Agora
Rural Areas
- Elizabeth Mall, Cebu - Angono, Rizal
- Morong Rizal
2003 – Savemore Market opened in first
- Parkmall Cebu
provincial store
- Nagtahan
- Tanay
- Savemore Solano
- Mendez, Tagaytay
- Savemore Legaspi, Baliuag, Bulacan
- Savemore Bacolod East
- Savemore Cagayan De Oro

SAVEMORE ELIZABETH MALL CEBU


- Jaro, Iloilo

SAVEMORE JARO ILOILO


• These Savemore stores are located outside
an SM mall to bring the SM shopping
experience closer to where shoppers live and
work.

• Savemore Market brings convenience to the


shopper and affords her to save on
transportation costs through its proximity to
barangays, subdivisions and places work.

• Savemore Market makes it convenient for


shoppers to shop leisurely for meat, poultry,
seafood, fruits and vegetables in a clean and
air-conditioned environment.
Puregold Branches

METRO MANILA QUANTITY CENTRAL QUANTITY


Caloocan 2
Bulacan 5+1
LP 1+2
Malabon 1 NE 1

Makati 1 Pampanga 4+3


Mandaluyong 1+2 Tarlac 1
Manila 6+2
Marikina 1
CALABARZON QUANTITY
Muntinlupa 2
Paranaque 2+3 Batangas 0+2

Pasay 1 Cavite 4
Pasig 2 Laguna 6+6
QC 8+4 Quezon 1+1
SJ 1
Rizal 4+3
Taguig
Tagaytay City 1
Valenzuela 1
Puregold Branches

CAR QUANTITIY BICOL QUANTITY

Baguio City 1 Albay 1

Benguet 1 Naga City 1

Puregold total: 61
Puregold Jr. total: 28
 Almost half (48%; 43 branches) of the Puregold
branches are established in Metro Manila
 High market in Metro Manila
Spread
Urban
 In Metro Manila,
branches are near to
each other
 Customers can almost
easily go from one
branch to another
 Multiple number of
branches per city (e.g.
Manila, Quezon City,
Paranaque, Las Pinas)
Rural
 Branches are far to each other
 Customers cannot easily go from one branch to
another
 For the provinces, there is only 1 branch for almost all of
the cities (e.g. Pampanga, Cavite, Quezon, Baguio City,
Tagaytay)
 Dispersion can go as far as only 1 branch per province
(e.g. Tarlac, Nueva Ecija, Albay, Camarines Sur)
Savemore Floor Plan
TOP VIEW
Savemore Floor Plan
FRONT VIEW
Savemore Floor
Plan
ISOMETRIC VIEW
Savemore Floor Plan
SPOT PERSPECTIVE
Savemore Floor Plan
SPOT PERSPECTIVE
Savemore Floor Plan
SPOT PERSPECTIVE
PUREGOLD FLOOR PLAN
Puregold
Savemore

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