Contents EXECUTIVE SUMMARY .................................................................................................................................. 2 COMPANY OVERVIEW ................................................................................................................................... 3 CURRENT MARKETING SITUATIONAL ANALYSIS ................... ............................ .................. .................. .................. .................. .................. .................. .................. ......... 4 INTERNAL ANALYSIS .................................................................................................................................. 4 EXTERNAL ANALYSIS ................................................................................................................................. 5 SWOT ANALYSIS ........................................................................................................................................ 6 OBJECTIVES ................................................................................................................................................... 7 STRATEGY ...................................................................................................................................................... 8 SEGMENTATION ............................................................................................................................................ 8 TARGETING.................................................................................................................................................... 9 POSITIONING ............................................................................................................................................... 10 TACTICS & ACTION ...................................................................................................................................... 11 BUDGET ....................................................................................................................................................... 14 BUDGET- MEDIA PLAN ............................................................................................................................ 14 MYDIN MARKETING SCHEDULE .............................................................................................................. 14 MARKETING BUDGET .............................................................................................................................. 15 SALES FORECASTING ............................................................................................................................... 16 CONTROL ..................................................................................................................................................... 17 REFERENCES ................................................................................................................................................ 18
1
EXECUTIVE SUMMARY
Based on this marketing plan, MYDIN wants to expand their brand to another country which is Brunei. By using market development strategy, Brunei is the strategic place to open the store because the population of Muslim people there is major parallel with MYDIN concept store where provide halal product and Muslims needs. MYDIN really take care for the Halal product where there want customer which is Muslim have no doubt and hesitation to buy their groceries and their needs in MYDIN.
MYDIN in Brunei have different concept with MYDIN in Malaysia where the product in MYDIN Brunei is in high quality and high price which is suitable with country of high income level. There is also international and famous brand in MYDIN Brunei. The environment in Brunei Market is totally different than Malaysia. MYDIN Brunei really takes care of the image and customer relationship. It gives value to customer to tie them become loyal customer and which parallel to objective to increase the number of customer.
Every seven element of marketing plan which is product, price, place, promotion, people, physical evidence and process is being detail where this is the best for MYDIN Brunei. For product, it is a must to have a high quality product and the price is gradually high where it really do checking quality of product. For the place, Panaga is the strategic place where is between two other town with a quite big size of population which is Seria and Kuala Belait. For the promotion there are various ways is used to let people knows and acknowledge of MYDIN. For people, MYDIN trains them to be the best in treating the customers. The physical evidence of MYDIN Brunei is totally different level of others where the customer will feels the appreciation and important person in MYDIN. Last is the process where it make sure everything the undergoes in MYDIN Brunei is smooth such as the inventory management, payment of method and specialty for customer which is trolley that can counts total of goods.
2
COMPANY OVERVIEW
MYDIN is a one of the Malaysia based company that involved in Retailing and wholesaling. It was established on 1940 and started a small business in Penang selling merchandise and toys to customers in the nearby Georgetown. It moves to Kelantan where at that time the business steadily growing. Then, In 1989 MYDIN opened branch in Jalan Masjid India Kuala Lumpur. The location is competitive dynamics. Dato Ameer Ali Mydin is a person who continues expanded MYDIN by placing the store of MYDIN near foreign giant market. The number of outlets encompasses 24 malls, 25 hypermarkets where each is located in the malls, 16 emporiums, 3 bazaars, 47 minimarkets (MyMydin), 12 convenience shops (MyMart), 4 franchise outlets (Mydin Mart), 7 SAM‟S Groceria supermarkets, 1 stand-alone SAM‟S Deli restaurants and 179 KR1M branches now. MYDIN provide various products range from food line, household, soft-lines and hard-lines items. Hard-line products include hardware, electrical, stationery, porcelain and toys. Whilst soft-line comprises of textiles and fabrics products. Food line includes confectionery, drinks and beverages, delicatessen and dairy products. In their early years of operations, MYDIN‟s focus has always been in the non -food sector until they bought over the first supermarket in Selayang in 1997. MYDIN vision is to be the world's leading distributor of competitive "Halal" goods and services. The company mission is they aim to be the leading wholesale and retail company by providing the best value, wide assortment of goods and continuous excellence based on their business formula. MYDIN vision is to be the world's leading distributor of competitive "Halal" goods and services. The company mission is they aim to be the leading wholesale and retail company by providing the best value, wide assortment of goods and continuous excellence based on their business formula.
3
CURRENT MARKETING SITUATIONAL ANALYSIS INTERNAL ANALYSIS
Strengths Of MYDIN
The strengths of MYDIN is MYDIN offering wide range of halal product which make easier for their customer to buy their needs without doubt and hesitation. The style of living nowadays where people are working have limited time to make research about the product and the existence MYDIN makes life of customer which living busy life easy to make decision. The second strength of MYDIN is from the slogan that they create which is ‟ Why pay more? Buy at wholesale prices‟ . This slogan gives a big impact to the business of MYDIN where the people expectation of this stores from time to time where it offer the low price. Furthermore, the pattern of people style of shopping change depends on the economy condition.
Weakness of MYDIN
The weakness of MYDIN is the quality of product where not all products in MYDIN is in the good quality. MYDIN did not check each of the products where they buy in a bulk. Some of product in MYDIN is not worth of value of the money. MYDIN also focus for selling local product where customer have limited choice to choose . Next, another weakness of MYDIN is the foreign worker that work in MYDIN. Most of foreign worker of MYDIN is Bangladesh, Nepal, Indonesia, Pakistan. When they are working in MYDIN , it is hard for customer who shopping in MYDIN to communicate with the foreign worker where when they want to ask something.
4
EXTERNAL ANALYSIS PEST Analysis is used to analyse the macroenvironment of country. Macroenvironment factor Political
Description The two factors under political are political stability and taxation system. Brunei is constitutional sultanate government. There is no election in country with the monarch being hereditary. For taxation system, Brunei used commercial tax rate where the amount of taxes and mandatory contributions payable by businesses after accounting for allowable deductions and exemptions (exclude personal income tax, value added taxes, sales taxes and goods and service taxes).
Economic The three things that seen under Economic is GDP Growth, inflation and unemployment rate. GDP Growth of Brunei is 4% is higher compared to USA,UK and Japan. It dependent primarily on oil and gas productions. For Inflation, Brunei CPI index was negligible which is lower than USA, UK and Japan. It is sense of stability in the inflation rate and it reduces the risk of increased in cost of goods sold. FOR unemployment rate, Brunei managed to maintain low unemployment rate where most of people there highly educated and employable workforce domestically. Social Population size of Brunei is 400,000 people. It inhibits foreign firms from entering Brunei market .The population size is relatively small cause limited market potential. For the lifestyle, the ways they socialize are very traditional where it has indirect style communication, formal and respectful. Malay is national language of Brunei while English is widely as business language. An official religion in Brunei is Islam where there adapt a lot of Islam way . They did not accept gift as business deal, they also not traded alcohol . Technology Brunei is the most advance telecommunication facilities in the region. It has the best fixed-line telephone density through optic fiber. Doing business in Brunei is easy when the wide use of smartphones becomes something needs. High speed internet facility which makes Brunei aiming to become a cyber-center in the region.
5
SWOT ANALYSIS
Components Strengths
Description
The strengths of MYDIN are provide wide range of halal product. Next, the powerful slogan of MYDIN which ‟Why pay more? Buy at wholesale prices where gives a big impact to the business of the company.
Weakness
The weakness of MYDIN is the less quality of product that they sell. Another weakness is the worker which is foreign worker exist a lot of miscommunication.
Opportunities MYDIN can produce its own brand is one of opportunity for it . Another opportunity is MYDIN can start involve with online market by using technology.
Threats The economy condition in Malaysia is quite stable but the currency of Malaysia is high makes it hard for MYDIN to make international business. The adaptation of GST also one of the threat the company.
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OBJECTIVES
The objective of our MYDIN is expanding branding of MYDIN to Brunei and increase 1,500 of customer per month starts from January 2018 to December 2018.
Smart Objective Table
Element „S‟ - Specific
Criteria Detail outcomes
„M‟ - Measurable
measurement
„A‟ - Attainable
realistic
„R‟ - Realistic
significance
„T‟ - Time
By when
Description The objective has specified what we want to achieve which is to expand branding of MYDIN. To increase 1,500 of customer per month is the objective that can be measure where there is specific number that are targeted with measurable time. Expanding branding of MYDIN is achieveable‟s objective. It‟s a good thing for our company where it can be achieve. It is relevant to make 1,500 customer per month since the population of people in Brunei is 433,259(2017) The duration of time is start from January 2018 to December 2018 which is for 12 months equality with one year.
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STRATEGY
MYDIN‟s marketing strategy is based on the market which is market development. The reason market development is choosing is to expand MYDIN ‟s branding in the new place. The new geographical market that is choose to open up the store is at Brunei. The reason this location is choose because the population of Malays who is muslim in Brunei is the highest. MYDIN focus on being competitive distributor “halal product and services” which is has been MYDIN‟s vision where parallel what MYDIN‟s did in Malaysia. The store market is planned to open at Panaga which is between two small town which is Seria and Kuala Belait. The population of Seria is 30,097 while at the population of Kuala Belait is 31,178. The total of population Seria and Kuala Belait is 61,275 which is almost like Bandar Seri Begawan, capital city of Brunei which is 64,409. Panaga is very strategic place to because Kuala Belait is about 13 minute away from Panaga and Seria is 9 minutes away from Panaga. Furhermore, the location that that had chosen is the right place because is quite far away from big city for 101.9 km and takes one hour eighteen minutes to reach there. Our MYDIN also want to adapt online store in Brunei.
SEGMENTATION
Based on market, the segment that had choose in geographic is at Asia which Brunei. This country mostly have segment that parallel with vision of MYDIN. The density area that had chosen is rural area with the big population where it makes them easier for them to buy their wants and needs. The primary consumer target is middle to upper income professionals. There are many kind of professional work which is related with onshore Rasau gas field, teacher, tourist guide and there are also farmer and fisherman with the commercial port at Kuala Belait. Most of pattern of family size is more than 5 people. Both genders is the market segment of this MYDIN and also various of age. The religions factor do one of the segment of the market .Most of population in Kuala Belait , Seria and Penaga are muslim and MYDIN do have specialty in providing muslim‟s needs such as telekung, sejadah, tasbih, jubah and also ihram. This specialty that provide by Mydin can attract people to come to the MYDIN.
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TARGETING The size of target market is small which is 1,500 customers per months and our MYDIN believe that this market can growth from the time to time. The growth will increases in aspect of customers, sales, customer royalty is our target. These market segments have high enough growth potential than market segment in Malaysia because of there are a least number of market that exist and it is in small size. The existence product that will exist in store in Brunei is in high quality, branded product where there will also international brand in this store. There are also our significance restaurant and drive thru of MALAYCLANS in our MYDIN store. The objective of our market in Brunei is to expanding branding of MYDIN and creates new type of market segmentation, targeting and positioning in new place. There is also a big chance for MYDIN since there is no other giant hypermarket enter in Brunei‟ s market and most of citizen there income is high. Furthermore, MYDIN have many suppliers worldwide. MYDIN also want to follow the trend of buying online in Brunei. Since the citizen in Brunei have middle to high class level of life, differentiated marketing strategy is used. MYDIN in Brunei want to offer wider market coverage of product where the product is in high quality with the value of price.
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POSITIONING
MYDIN in Brunei use service differentiation where our MYDIN want to gives the best customer services from the front door our customer enter the store. Our employee will treat with manners where we train them to treat customer well. We also provide the delivery of item for those customers who order online with great services. The people who work in MYDIN also a person, who is highly educated, have experience and the best among the best worker. We also do a lot of training to increase our employees‟ skill, knowledge, development and many more to serve the best for customers. For the image differentiation, our MYDIN have their own landmark in front of the entrance door of store which is using a round beautiful pond where customer can feel like important people‟s vibes. We also change our slogan to “Your own class quality of life!”. High quality
High price
Low price
Low quality
Based on above, it shows market positioning strategy in perceptual map . This perceptual map shows customer perception with brands. MYDIN store in Brunei shows the product that sells in MYDIN is in high quality and at high price. MYDIN do sell quality product, branded product for the people in Brunei. 10
TACTICS & ACTION
Tactic
Action
PRODUCT
Product with good quality Wide range of brand Ceiling price Value based approaches
PRICE
Person in charge Supervisor Product manager Supervisor Financial Manager Board of director Marketing manager Management manager Logistic Department Marketing manager Sales manager Finance manager IT Manager Operations Human resource department Management manager Human resource department Management manager
Panaga between Kuala Belait and Seria
PLACE
PROMOTION
Informative advertising Media-newspaper, television, radio, magazines and online .
PEOPLE
PHYSICAL EVIDENCE
PROCESS
Management manager Manager department Training Formal attire Landmark Smell scent of luxury Instrumental musical hitz song Azan during prayer time Parking lot Improves website Inventory-just in time Payment method-cash, debit card, credit card ,pay wave, payment by phone. Trolley counts the total price of item in trolley. MYDIN Marketing Tactics 11
Management manager Logistic department Human resource department
Product The products that sell in MYDIN at Brunei is sell in good quality with high price in the new market where we provide a wide range of product brand and also there is a best international brand enter the Brunei. MYDIN does not produce their brand but every product that enters in market of MYDIN will refined. Three level of product which is core product, actual product and augmented product is compulsory exist in the product. There are only three type of consumer product that exist in MYDIN which is convenience product, shopping product and specialty product and MYDIN emphasize more to shopping product.
Price A high price product which equal with the quality of the product that have provided in store. The ceiling price is used in MYDIN of Brunei where the customer willing to pay for a product since it at one of the high income country. General pricing approaches of the most product in MYDIN is using value based approaches where it is important to meet with customer‟ s perception and highlight the quality of product with charge high price to match competition with others competitors.
Place The place that had chosen to open up new MYDIN is at Brunei which is at rural area. the area that had been choose is Panaga which located between Kuala Belait and Seria where the population of each town is more than 30,000 people. When total up of this two population of town, it is almost like population of capital city of Brunei, Bandar Seri Begawan.
Promotion Brunei is a new market that need to be entered and the citizen there have only a little knowledge about MYDIN. By using promotion, people will learn about MYDIN soon. There are various kind of way to promote .The first way is by using advertising in informative advertising where to let people know about MYDIN. There are various kind of media is used by using many medium like newspaper, television, radio, magazines, billboard and online. 12
People All the employee who works in Brunei has been already have their own job description. There is operation and management manager that will monitor everything and every department. Before the employee works in MYDIN Brunei, they need to involve with training so that it can treat customer well. For the attire of worker, it will be formal, exclusive and attractive, which where customer can ask freely to them. The workers that work with us also is the person that is educate with a wide of knowledge especially manager various department. Customer Service people also from the people whi have acknowledge and experience with customer so that, they know how to handle and treat customer well.
Physical Evidence The environment MYDIN in Brunei and Malaysia is totally different. MYDIN Brunei have its own landmark in front of the entrance. When the customer enters the store, they will smell a scent of luxury where there is also a red carpet in entrance. The cold and pleasurable environment .There is also music of instrumental and hitz music and when the time of prayer comes, the azan will be heard. All of this will makes customer feels the different than other store. MYDIN Brunei will provide a lot of parking lot and the improvement of website will update time to time.
Process There is a lot of process in MYDIN Brunei. The first process is for inventory where it is used Just In Time where all the stock will be keep in track. This system can help MYDIN to reduce cost of keeping inventory at warehouse. Next, the process of payment that provide is by using cash, debit and credit card and also pay wave. MYDIN also provide customer to use newest technology where payment can be made using phone. There is also trolley that can count every item that has already put in the trolley. This will make customer easier to keep track their spending amount of goods.
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BUDGET
BUDGET- MEDIA PLAN
MEDIA PLAN TV radio billboard Magazine online
JAN
FEB
MAR
APR
1,300 1,300 700 700
MAY
JUN
JULY AUG
1,300
OCT
1,300 700
350
NOV 1,300
350
350 800
800 1,000
1,000
1,000
DEC
700
800 1,000 1,000
SEP
1,000
1,000
1,000
1,000
1,000
1,000
Jun
July
Aug
Sept
Oct
Nov
1,000
MYDIN MARKETING SCHEDULE
Strategy
Jan
Feb
Mar
Apr
May
Product Price Promotion Place People Process Physical Evidence The colour month of box is the month where the strategy will be done.
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Dec
MARKETING BUDGET
ITEM Marketing agency Television advertising Radio advertising Print presentation Online advertising Social media Web search optimization Mail outs Giveaways Events Branding and artwork Merchandising Publications Catalogues
JAN
FEB
1300
1300
700
MAR
APR
MAY
JUL
AUG
1300 700
SEP
OCT
1300 700
NOV
DEC
1300 700
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
500
500
500
500
500
500
500
500
500
500
500
500
300
300
300
300
300
300
300
300
300
300
300
300
800
350
350 800
350
800
500
500
500
500
500
500
500
3600
3000
3450
3100
3600
3000
3600
3,450
200 300 300
200 300 300
200 300 300
200 300 300
200 300 300
200 300 300
200 300 300
200 300 300
200 300 300
800
800
800
800
800
800
800
800
800
800
3800
3450
4400
3800
4250
3900
4400
3800
4400
4250
500
500
500
500
500
4300
4400
3000
2650
Research
200
Travel
300
Postage
300
200 300 300
200 300 300
800
800
5100
5200
More Marketing /promotional total
JUN
Other
Administration Incidentals More… Other cost Total
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SALES FORECASTING
MONTH JANUARY FEBRUARY
MARCH APRIL MAY
SELLING(RM) 75,000 60,000
50,000 50,000 89,000
JUN
90,000
JULY
50,000
AUGUST SEPTEMBER
OCTOBER NOVEMBER DECEMBER TOTAL SALES
50,000 68,000
50,000 65,000 65,000 712,000
NOTES Back to school (opening sales) 24 National Day. Independence from the United Kingdom in 1984.
16 Ramadan sales (Ramadan promotion 10%) 31 Royal Brunei Armed Forces Day 1 Nuzul Al-Quran 15 Hari Raya Aidilfitiri sales (Raya promotion 15%) H.M The Sultan‟s Birthday (observed) Sultan Hassanal Bolkiah 11 Hari raya haji Awal Muharram
School holiday School holiday
Average sale per months is RM 712,000/12 = RM 59,333.33.
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CONTROL
There are a lot of plan that have been plan for MYDIN Brunei. To make sure that the number of customer increase by time to time such as our objectives .The sales of the first month must be higher because it is the introduction of MYDIN Brunei where it expect people will coma and shop there. There are a lot of strategy that need to be done to make sure the number of sale for the first months is high since it is also for back to school season where parents will bring their children to buy all the needs of the school. MYDIN Brunei does product strategy, price strategy, place, physical evidence, process and promotion. When all this strategy is implement, the number of customer increases eventually the number of sales also will be increases.
Next, there is operation and management manager exist in MYDIN Brunei. The role of this two manager is to monitor everything that is runs in the MYDIN Brunei. Every decision that made by involving another department, these two managers need to know. This is because it will easier to trace anything and no company‟s resources will be wasted. MYDIN must meets their Key Performance Indicator(KPI) for its sale so that the number of customer can increases and the value relationship between customer can be nature and well maintained.
Last but not least, MYDIN Brunei need to take care their image more since the level of MYDIN Brunei is completely is in the different level from Malaysia. MYDIN Brunei will always be the best place and the choice for citizen Brunei to buy their needs and wants. MYDIN Brunei will also tie the customer who enters the MYDIN Brunei Store by giving a lot of benefits and makes them are half of MYDIN. “Y our own class quality of life!” is definitely a class of life of Brunei‟s people. This plan is achievable where the average sale RM 59,333.33 can be made and the number of customer expects will increase and maintain by time to time.
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REFERENCES How Viable Is Mydin Expansion And G rowth Strategy . (2015, March 23). Retrieved April 6, 2 017, from
www.ukessays.com: https://www.ukessays.com/essays/marketing/how-viable-is-mydinexpansion-and-growth-strategy-marketing-essay.php Brunei population 2017 . (2017). Retrieved April 22, 2017, from World Population Review:
http://worldpopulationreview.com/countries/brunei-population/ Bhasin, H. (2016, December 5). Marketing mix of Tesco – Tesco Marketing mix . Retrieved April 3, 2017, from marketing91: http://www.marketing91.com/marketing-mix-tesco/ clubcard . (n.d.). Retrieved April 4, 2017, from TEScO: http://www.tesco.com.my/clubcard/clubcard.aspx Company Overview of Tesco Stores (Malaysia) Sdn Bhd . (n.d.). Retrieved from
https://www.bloomberg.com/research/stocks/private/people.asp?privcapId=9068769 Dudovskiy, J. (2016, May 15). Tesco Marketing Mix . Retrieved April 3, 2017, from researchmethodology.ne: http://research-methodology.net/tesco-marketing-mix/ Dudovskiy, J. (2016, May 15). tesco marketing mix . Retrieved April 6, 2017, from http://researchmethodology.net: http://research-methodology.net/tesco-marketing-mix/ Jay. (n.d.). Business strategy . Retrieved April 6, 2017, from j-cim.blogspot.my: http://jcim.blogspot.my/2012/01/mydin-business-strategy.html MERIAH LOYALTY PROGRAM. (n.d.). Retrieved April 55, 2017, from MYDIN:
http://www.mydin.com.my/mydin/meriah-loyalty-program-2 Promotions. (n.d.). Retrieved April 6, 2017, from MYDIN: http://www.mydin.com.my/mydin/promotions
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