MOHD ZAHRIL BIN MANSOR G1226641 HANI RADIAH BINTI HASSAN SHAARI G1228618 CASE REVIEW: MYDIN Question 1 Marketing Strategy
Among the strategies that the company is currently using: -
Business activity is retailing and wholesaling a broad range of goods (eg: food line , households, soft & hard line items) i tems) at affordable price (low pricing strategies) Target market is from the diverse economic backgrounds, upbringing and educational level. Aggressive & Strategic placement for a newly development/ development/ expansion of outlet.
Internal and External Environment Analysis
Internal Environment
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STRENGTH Customer Loyalty - A Loyalty Card which collecting accumulated points for the customers to redeem with other goods, which attracts every customer. Cost Advantages – Lower cost can undercut rivals on price Pricing Power – Customers typically rebel against price increases by switching to competing products, but if a company has pricing power, customers will continue using Mydin’s products and services. The Power of Brand – Reputation and strong name that holds ‘MYDIN’ itself holds thousands of confident among different types of customers. OPPORTUNITIES Global Expansion – Mydin only owns 55 outlet nationwide. A strategic plan can be drafted, so that Mydin’s reputation can be promoted worldwide. worldwide. New Market Market – With a strong brand’s name, Mydin could expand to other sector aside wholesaling, such as hotels or agriculture. Online Shopping – To compete with current need of shopping trends.
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WEAKNESS IT infrastructure DRC – They seems to have bottleneck of networking problem whenever several outlets wanting to access the same database at a time. Customer Service – hurts Mydin the most, and this may cause most customers to flee to and look for other alternative shopping spot. Mart Layout & Spacious issue – Lots of customer means they need a bigger space because the existing Mart (especially (especially at Masjid India branch) seems are no longer can occupy thousands of attendance especially during festive season.. Customer no longer enjoying their time shopping in Mydin THREAT Competition From Another Foreign Wholesaling Players (in term of adding new outlet) eg Giant ,Tesco, Carrefour Carrefour to name a few.
External Environment
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STRENGTH Good relationship & special collaboration with governing bodies and policies Eg: involving in campaign such as Price Cut Campaign, Buy Malaysian Products, KR1M, accept KadS1M at all MYDIN branches and etc CSR-helps small holders, local businesses through its pricing program and partnership. Expand the business/open branches in the rural area to create more employment opportunities and improve people standard of living.
OPPORTUNITIES Increasing target market by breaking the 60% Muslim barrier to a higher percentage or marketable target, including the non-Muslim community. Arrival of new technologies to support Mydin’s dynamic operation.
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WEAKNESS Level of confident from non-Muslims to spend their money at Muslim’s store.
THREAT Uncontrolled Policies from Government on bringing in new International label to introduce/market their newly-product. Subsidiaries from the government and price-hike on daily goods. Emergence of substitutes products
Question 2 Mass Market or Niche’ Market?
From our analysis, Mydin is currently operated in a mass market. The market coverage is focusing on high sales and low prices. Mass Marketing aims to provide products and services that will appeal to the whole market. Mydin operates in a mass market because: 1. 2. 3. 4.
Sell ordinary product to very large number of people at quite-cheap price. Deal with big number & bigger community Use expensive form of media to reach out t o people. Advertising in radio and TV
Market Segmentation for Mydin
1. Target – Mydin is targeting lower and middle-income’s earners in a community, these strategies also indirectly attract the higher –basis income to shop for daily uses goods. So, in basically, maintaining low goals target always prints the better end-result.
2. Variety of Choices – Different group of people will shop different variety of goods. One thing that proven successfully in the Mydin Marketing statistic, wholesaling strategy with low cost embedded gives so many choices for retailers, small biz, offices & school and other shopping community. People who own a small stationary shop will always choose Mydin rather than other hypermarket for their stocks, by t aking advantage of Mydin’s wholesale prices. Purchasing stocks and bulk-prices will generates higher margin profit in the end. 3. Focusing on Halal Concept – ‘Ïf is not haram, we will sell it”. With approximately 60% of Malaysians being followers of the Islamic faith, this goes down well with Muslims, especially those looking for economic purchases. Mydin is embracing the concept of halal (permissible) products. In accordance to Islam, nothing is haram (forbidden) unless it clearly declared as forbidden (by the Qur’an or Sunnah). Mydin’s emporiums cater for almost any need that fall i nto the categories of worship, apparel, accessories, food, household goods, travel, fittings and furnishings, electronics, cars, digital technology, children and even exercise equipment. Mydin always believe the concept of ‘balanced way of life’. Why people should spend more on goods that may have same view or taste at a very high prices. Less money spending at their emporium could translated into other beneficial need, such as educational for children and personal saving for future plans. The halal market spectrum is widened even still. Mydin also caters for wholesalers and retailers in addition to household consumers. Their target market is as halal-wide as their range of products.
Question 3 Mydin retail strategies & formats for 10 years from now and strategies for further growth that meet the challenges of global positioning. Improving CSR (Corporate Social Responsibility) activities - Continuing their commitment by business to behave ethically and contribute to economic development and at the same time improving the quality of life of the workforce and their families as well as of the local community and society at large. By improving this strategy, it will create a better understanding and perception among staff and other entities that related to their management. This includes providing good coverage and act for employees’ welfare as well as maintaining good relationship among staffs. Improving Marketing Plan - aggressively promoting their store itself as compared to the competitor .As for the Mydin’s current official website to give information throughout the community, contents and layout of their website is slightly fine. But, that will only works on certain amount of people who have access to internet usage. What about people in rural area? The company should also target the community which is without having internet access. The best way to spread the information for this target area is by creating pamphlet & distribute from home-to-home should add more advantages in promoting Mydin’s product. The nearest example is what Tesco ,Giant and Carrefour did as for their weekly promotional advert in the local newspaper. With plans to open more outlets in the next few years, Mydin need to reposition itself as a major player in the business to attain larger customer segment particularly the youth. In order to achieve this, Mydin required a new centric website to be online gateway for marketing and communication activities, a portal for targeting and converting a large customer youth segment as well as a platform for announcing events and activities such as new stores, launches and promotions. IT strategy, strengthen up or compete? – One way or another, Mydin’s existing IT infra should have defined the strength of the organization in processing thousands of database of stocks and customer in general. But, since the technology keeps changing periodically or steered dynamically, Mydin should plan a specific strategy to compete with the current globalisation changes. For example, Cloud Computing is somewhat popular nowadays. So what should Mydin do is to be able to ‘talk with the same lingo’ throughout the global world. In which area that this technology suits with Mydin’s existing infrastructure? Alternatively, if virtualizations are no longer able to cater millions of database, Cloud Computing should be introduced as another perspective.
It is important to know what you are doing and do the things that you know. Always try to l earn as much as possible about development in retail industry and to improve in terms of merchandising, warehousing, customer service, systems and information technology, point of purchase, tenant management, marketing and promotions- everything under the sun;
ATTACHMENT MALAYSIA HYPERMARKET WAR
