YOU’RE ALWAYS A WINNER! How did this company create a big impact in the retail industry and its consumers? [Monday Marketing Marvels]
Over 1,500 suppliers and trade partners
Over 600 million transactions
Over 230,000 small businesses helped
Over 350 grocery stores in the Philippines
This company has undoubtedly made its mark in the retail industry.
PUREGOLD PRICE CLUB, INC.
— also known as PUREGOLD, opened its first convenience store in the Philippines in 2001.
During that time, the store sold a wide array of goods—like groceries, apparel, household accessories, and furniture—at very affordable prices.
The one-stop shopping philosophy was a novel idea to consumers.
With the excellent service and quality products Puregold provided, it did not take long for the company to rise up in the industry.
Puregold expanded its retail network organically and through strategic acquisitions.
To grow its market coverage in the country, the company introduced the following:
- Puregold Jr. Supermarket (2008) – a smaller store (in terms of size) compared to the usual Puregold Supermarkets
- Puregold Extra (2010) – a smaller store than the Puregold Jr.
These two new types of supermarkets were placed outside malls in stand-alone outlets or as anchor tenants of commercial centers.
The company continued to expand its branches nationwide and welcomed more business opportunities to sustain its robust growth.
Apart from the expansion, Puregold had business partnerships and acquired different companies in the Philippines such as:
- S&R Membership Shopping
- Parco Supermarkets
- LAWSON Japanese Convenience Stores
- FoodPanda Delivery Services
- Metro Mart Delivery Services
What was Puregold’s marketing strategy to appeal to its target market and gain more sales?
PERKS: THE PUREGOLD LOYALTY PROGRAM
Launched in 2001, customers can maximize their shopping experience using the Puregold Perks Card as a member of the program.
The program rewards its shoppers with points every time they shop at any Puregold store in the country.
Shoppers can earn 1 point for every PHP 200 minimum purchase of any HOME, FRESH, or FASHION items.
With the accumulated points, customers can enjoy the following:
- Shop for items at a discounted price
- A chance to accumulate as many points as possible with every purchase following the minimum qualified amount to spend
- Avail of promos exclusive to Puregold Perks Card holders
“TINDAHAN NI ALING PURING (TNAP)”
Through TNAP, Puregold also helped a lot of small businesses and sari-sari stores to grow and earn more.
TNAP is a customized, holistic membership program which allows sari-sari store owners and other small business owners to increase their potential net earnings by:
- Accumulating points from purchasing products (the points earned can be used to purchase more)
- Offering them lower prices and exclusive promos on home, fashion, fresh, and other grocery products
- Getting all the products they purchased delivered to them for FREE
- Giving them their own “Prepaid Loading Business” through Puregold’s Super Suki Sim powered by Globe Telecom for additional income
- Providing financial assistance or capital through Puregold’s My Puhunan Plus Program
- Securing their business’ continuity through Puregold’s Pioneer Insurance program
Puregold provides products and services that meet the demands and expectations of its customers. Not only that, they do their best to give back and help.
Today, the company’s Puregold Perks membership program continues to grow.
Current Number of Members: 2 MILLION
TNAP also continues to provide opportunities and big savings to sari-sari store owners and other small business owners.
Through these marketing strategies, the company has continuously generated sales growth through the years.
For the past 4 years, it recorded a net revenue of:
- PHP 112.6 billion in 2016
- PHP 124.7 billion in 2017
- PHP 141.1 billion in 2018
- PHP 154.5 billion in 2019
All these efforts back up why Puregold is named the NUMBER ONE retailer in a hypermarket format.
Puregold’s Earning Power: Valens Research vs. As-reported numbers
Puregold is a great case study for startups that we can learn from. One great reason?
The firm has proven itself to be a phenomenal earning power generator.
So, how well has Puregold been performing its business in these trying times?
The research doesn’t lie—nor do the results. Earning power (the blue bars) continues to show results much higher than what traditional databases show.
The blue bars in the chart above represent Puregold’s earning power (Uniform Return On Assets). This number has been well above 8% in the last nine years.
The global ROA average is just 6%
The orange bars are the company’s as-reported financial information. If you relied on these numbers, you won’t see the 11% Uniform ROA (return on assets, a measure of earning power) for 2018. You’d just see the company report less than that, at 8% as-reported ROA.
That’s what you’ll see in Yahoo Finance, Google Finance, and most other databases.
The company’s stock price also performed better than the rest of the stock market over a year, which we can see in the blue line in the chart below. Their returns are well above the market.
The numbers show that they have been doing well and making a profit.
Puregold is also recognized for its people-centric mindset. It became the most customer-oriented hypermart that offers one-stop shopping convenience and the best value to its customers.
The company continues to provide good products, services, and business opportunities to Filipino families.
As the tagline says…
“Sa Puregold, Always Panalo!” (“At Puregold, You’re Always a Winner!”)
About The Dynamic Marketing Communiqué’s
“Monday Marketing Marvels”
Too often, industry experts and the marketing press sing the praises of some company’s marketing strategy.
…Only for the audience to later find out that their product was a flop, or worse, that the company went bankrupt.
The true ROI in marketing can’t be separated from the business as a whole.
What good is a marketing case study if one can’t prove that the company’s efforts actually paid off?
At the end of the day, either the entire business is successful or it isn’t. And the role of marketing is always paramount to that success.
Every Monday, we publish a case study that highlights the world’s greatest marketing strategies.
However, the difference between our case studies and the numerous ones out there, is that we will always make certain that the firm really did generate and demonstrate earning power worthy of study in the first place (compliments of Valens Research’s finance group).
By looking at the true earnings of a company, we can now rely on those successful businesses to get tips and insights on what they did right.
We’ll also study the greatest marketing fails and analyze what they did wrong, or what they needed to improve on. We all make our mistakes, but better we learn from others’ mistakes—and earlier, rather than later.
Hope you found this week’s marketing marvel interesting and helpful.
Stay tuned for next week’s Monday Marketing Marvels!
Head of Marketing
Valens Dynamic Marketing Capabilities
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