BuildCore Retail Group — Marketing & Sales Strategy
The target customers, the positioning and brand, the marketing channels, customer retention, the pricing strategy and the marketing investment and customer-acquisition approach.
Section 7 · Business Plan
Marketing & Sales Strategy
The target customers, the positioning and brand, the marketing channels, customer retention, the pricing strategy and the marketing investment and customer-acquisition approach.
7.1 Target Customers
BuildCore serves a deliberately defined set of mass-market and trade
segments, each with distinct purchasing behaviour:
- Informal & self-builders — high-frequency,
cash-based purchases of core materials; value the convenience of nearby
stores and reliable availability. - Small & medium contractors — larger baskets,
value bulk pricing, credit terms and delivery. - Homeowners & renovators — home-improvement
and DIY purchases; respond to range, in-store advice and
promotions. - Property developers — project procurement, bills
of materials and reliable lead times.
7.2 Positioning & Brand
BuildCore positions itself as the trusted source of quality building
materials at the best value, with a brand promise centred on
affordability, availability and proximity. Brand-building emphasises
community presence, contractor relationships and consistent everyday
pricing rather than discount-led promotional churn.
7.3 Marketing Channels
- Local & community marketing — radio,
township activations, trade-counter relationships and word-of-mouth in
catchments. - Digital & mobile — e-commerce platform,
mobile contractor ordering, targeted digital campaigns and
WhatsApp-based account servicing. - Trade & contractor programmes — loyalty,
credit accounts and project-quotation services. - In-store experience — clear pricing,
knowledgeable staff, fast checkout and reliable stock
availability.
7.4 Customer Retention
Retention is driven by reliability and relationships rather than
promotions. A contractor-credit programme, loyalty rewards, consistent
stock availability and dependable delivery create switching costs and
recurring custom. The digital platform captures customer data to refine
range, pricing and replenishment, supporting both retention and
margin.
7.5 Pricing Strategy
Pricing follows an everyday-low-price discipline underpinned by
procurement scale, rather than high-low promotional cycling. Centralised
buying and private-label introduction allow BuildCore to hold
competitive shelf prices while protecting blended gross margin, which is
modelled to expand from 24.0% to 26.4% across the plan horizon.
7.6 Marketing Investment & Customer Acquisition
Marketing spend is budgeted at a disciplined level — stepping down as
a percentage of revenue as brand equity compounds and word-of-mouth in
each catchment matures. The early-year ratio is higher to support
new-store launches and brand establishment in fresh catchments;
thereafter the ratio normalises toward a steady-state level consistent
with mass-market retail. Spend is concentrated where it converts most
efficiently: local launch activations around each new store, contractor
relationship-building, and low-cost digital and WhatsApp channels.
| Marketing measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Marketing spend (R’m) | 9 | 21 | 35 | 47 | 58 |
| As % of revenue | 2.9% | 2.6% | 2.5% | 2.2% | 1.9% |
Table 7.1 — Marketing investment trajectory.
The customer-acquisition logic is store-led: each new outlet is, in
effect, its own primary acquisition channel, drawing custom from a
tightly defined catchment radius. Digital and contractor-account
channels then deepen wallet share and frequency among acquired
customers. Because much of the demand is non-discretionary and repeat in
nature, the Group expects acquisition cost per active customer to fall
materially as the network and brand mature — a key driver of the
improving cost ratios in the financial model.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of BuildCore Retail Group.