In the Malaysian retail marketing scenario – it is obvious that Mindy has a clear advantage over the others. It also has strongly entrenched markets in East coast states that allow it to generate capital to pump for the war over at the central market. 1. 2 Background of (MINDY) The Mindy Company was created by Mr.. Mindy Mohamed family in Jota Barr, Skeletal under the name of Assyrian Mindy Mohamed in year 1956. Initially, the company started its business by selling toys from Thailand. Throughout the years until year 2000, Mindy has gone through a lot of improvement.
In 2001, the company changes its name to Mindy Mohamed Holdings Sad. Bad. In the same ear, the company is converted into public limited company and has since assumed the name of Mindy Mohamed Holdings Bertha. Mindy objectives are to gain more profit by attaining more customers. Mindy Mohamed Holdings Bertha has set up a company mission which are “We aim to be the leading local wholesale and Retail Company by providing the best value for money for the best assortment of goods, by providing service to our customers and by striving for excellence.
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We also aim to inspire more Malaysian to open outlets with our own proven success formula”. Besides, the company visions are to be the leading Malaysian wholesale hypermarket in Malaysia. 2. 0 Environmental Analysis Environment analysis is the process to identify all the external and internal that can affect the performance of the organization and evaluate the level of opportunity and threat of the company. MINDY used the method to analyze the environment which is macro environment and micro environment.
Macro environment is about PESTLE analysis, micro environment is about Porter’s 5 forces, and MINDY use this to analyze what is their opportunity and threat. However, Market research refers to an action of gathering, analyzing information bout market and what consumer need and want. 2. 1 Macro Environment (about 400 words) Table 2. 1-1 PESTLE Analysis of (MINDY) Situation Impact to (MINDY) Opportunity Threat Political & Legal The implementation of the “Minimum Wages Order 2012” by the Malaysian Government It is a threat, as the cost of hiring employee will increase and the operation cost will increase. Economic 5 Social Technology Environmental Total Score Key for Opportunity/ Key for Threats 5: Great Opportunity/ Very serious threat 4: Good Opportunity/ Serious threat 3: Small Opportunity/ Some threat 2: Weak Opportunity/ Weak threat : No Opportunity/ No threat (source: star 2013, All & said 2012, Department of statistics 201 1) 2. 2 Micro Environment (about 300 words) Briefly explain what Porter’s 5 Forces analysis is, and why Porter’s 5 Forces analysis is applied. Table 2. -1 Porter’s 5 Forces Analysis of (Tests) Forces Explanations Rating Threat of existing rivalry Bargaining power of suppliers Bargaining power of buyers Threat of new entrants Threat of substitutes Total 125 Degree of Seriousness 1: no threat 2: small threat 3: medium threat 4: serious threat 5: very serious threat (source: star 2013, All & said 2012, Department of statistics 2011) . 3 SOOT Analysis A SOOT analysis is a tool to identify strength, weaknesses, opportunities, threats of the business. Tests use SOOT analysis to get the information based on environment analysis and separate into internal and external issue.
Therefore, this help Tests organization assists to accomplishing objective and what issues must be minimize in order to achieve the goal. Table 2. 3-1 SOOT Analysis of (MINDY) Strengths 1. Pricing power 2. Customer loyalty 3. Cost advantages 4. Brand name Weaknesses 1. Weak management 2. Less space Opportunities 1. Online market 2. New market 3. International expand Threats 1. Intense competition 2. Substitute products Strength Internally generated long term advantage in the industry. Strength gives a company along term advantage over its rivals.
Examples include great brand name or economic scale. STRENGTH 1: PRICING POWER Customers typically rebel against price increases by switching to competing products, but if a company has pricing power, customers will continue using Mind’s products and services. Mindy has ability to charge customers higher prices. STRENGTH 2: CUSTOMER LOYALTY When given a choice, customers are loyal to Mindy. Instead of targeting all customers, Mindy only needs to target new customers in order to grow their business. STRENGTH 3: BRAND NAME A strong brand name is a major strength of Mindy.
This gives Mindy the ability to charge higher prices for their products because consumers place additional value in the brand. WEAKNESS A long term / fundamental business concern that is internally generated. Weakness is something that causes issues for the underlying business, which take considerable time and effort to fix and are internally generated or controlled. Examples are management and customer services WEAKNESS 1: WEAK MANAGEMENT Weak management increase business risks and reduces profits for Mindy, because they are responsible for the health of the business.
Weak customer service hurts Mind’s reputation and causes customers to flee to competitors, who are more respondents. WEAKNESS 2: LESS SPACE Less space has a significant impact, so an analyst should put more weight into it. Less space will have a long term negative impact on this entity, which subtracts from the entity value. These statements will have a short-term negative impact on this entity, which subtracts from its value. OPPORTUNITIES External conditions that is helpful to a company. Examples are online markets, new markets and international expansion.
OPPORTUNITIES 1 : ONLINE MARKET The online markets offer Mindy the ability to greatly expand their business. Mindy can market to a much wider audience for relatively little expense. OPPORTUNITIES: NEW MARKET New markets allow Mindy to expand their business and diversify their portfolio of products and services. “New market” will have a long – term positive impact on the entity, which adds to its value. OPPORTUNITIES 3: INTERNATIONAL EXPANSION International market offer Mindy new opportunities to expand the business and increase sales. The qualitative factor will lead to a decrease in costs.
THREATS External condition that is harmful to a company’s performance. Examples are intense competition and substitute products. THREATS 1: INTENSE COMPETITION Intense competition can lower Mind’s profit, because competitors can entice consumers away with superior products. THREATS 2: SUBSTITUTE PRODUCTS The availability of substitute products hurts Mind’s ability to raise prices, because customers can easily switch to another product or service. 3. 0 Marketing Strategies Marketing strategies is a fundamental concept based on expected customer behavior in certain market.
To know the customer buying behavior, then market segmentation, targeting and positioning is needed in order to understand what customer are desired. Overall the approach taken by MINDY is simple – target the Muslim market only and flank for the others. Focus on cost control and cost leadership where possible. The reason why they have been successful is linked to their ability to stay focused on the Muslim market, whereas the others are catering for all the markets. The strategy used here is the same one that allowed Power Root, All Cafe to beat the likes of Unsafe.
When a niche player appears in the market, it will always beat the others. In the Malaysian retail marketing scenario – it is obvious that Mindy has a clear advantage over the others. It also has strongly entrenched markets in East coast states that allow it to generate capital to pump for the war over at the central market. 3. 1 Market Segmentation As MINDY operates more than 103 outlets nationwide inclusive of 18 hypermarkets, 16 emporiums, 3 bazaars, 47 minarets (Mindy), 8 convenience shops (Marty), 5 SAM Groceries and 6 franchise outlets (Mindy Mart). Different outlet are targeting different group of people.
For example, SAM Groceries is only open at high end people as they only open at high end shopping mall and other outlets are targeting most of the Muslim as Mindy are not selling harm things. 3. 2 Market Targeting Mindy emporiums and consumers will finds themselves walking single file down jam packed shelves and baskets of goods ever imaginable to human need or want. The emporium cater for almost any need that fall into the categories of worship, apparel, accessories, food, household goods, travel, fittings and furnishings, electronics, cars, digital technology, children and even exercise equipment.
Basically, if it is not harm, it is there. With approximately 60% of Malaysian being followers of the Islamic faith, this goes down well with Muslims, especially those looking for economic purchases. Mindy is able to transgress pass the diverse backgrounds, upbringing, educational levels of different Malaysian Muslims. Their low prices seem to provide their Muslims consumers the ћbalanced way of life”. Less money spent on cleaning detergents translates into a higher disposable income for children’s education. The hall market spectrum is widened even still.
Mindy also caters for wholesalers and retailers in addition to household consumers. Their target market is as hall- wide as their range of products. Mind’s major obstacle here is really to break away from the commonly narrow definition of “Muslim goods” and educate non -Muslim consumers of their rights to purchase goods in a “Muslim” store. Non -Muslim consumers are rarely seen to shop at Mindy 3. 3 Market Positioning (about 80 words) What is Deco’s LISP? How (Tests) position their product? Explain with a diagram.
Explain that the marketing mix strategies are designed to support the positioning f the grocery retailer. 4. 0 Marketing Mix Strategies Marketing mix Strategies which is a set of action, or tactic using by a company to promote their brand or product in the market. The marketing mix is typical make up by Price, product, promotion, place, people, positioning and packaging. 4. 1 Product Mindy has a wide range of product line such as food line, hard line and household items. Due to the wide range of product, Mindy will benefits from larger customer base.
This will give positive advantage to Mindy as its customer can boot main all products needed here at lower and cheaper price. As a local player, Mindy provide items that are complement with its customers need. Majority of Malaysian are Muslims. Therefore, Mindy provide local prayer mats, prayer garments for women and traditional product which are rarely found elsewhere. However, Mindy should consider its non- Muslim customers due to the image of the place where only Muslim shops. 4. 2 Price Mindy is well- known for selling its product at wholesale price (40% of its business is wholesale).
As compared to its rival, (Giant, Tests and Careful) Mindy is a favorite place for shopping especially in period of economic downturn. They gain ARM 1. Billion in 2009 from ARM 1. 1 in 2008. This proves that as Mindy grow organically, they gain strength in volume, thus can sell cheaper as compared to its rivals. Therefore, the situation is inciting its marketing objective. 4. 3 Place Mindy is currently expending their business into different format namely hypermarket, emporium, and My Mart (24 hour convenience stores).
As referred to growth of Mind’s chain by the year 2009 to 2020, the business forecasted to have 26 Hypermarket, 60 convenience store, 20 Emporium and 5 My Mart. This investment cost the business large amount of cash which is Remodeling for permeate and 60 million for the building of hypermarket. The managing director tries to emulate the strategies of Smart by have My Mart although Smart experience bankruptcy. This expansion can help Mindy, reachable for its customers with various channel of distribution.
For example, the choice to build the biggest hypermarket in Malaysia at Jota Barr is due to high demand and larger land available. However, Mindy should consider their large expansion as they may be affected by discomposes of scale. 4. 4 promotion In term of promotion Mindy apply ћme-to- promotion” where Mindy follow and spoon to their rivals marketing strategies such as purchasing similar advertisement board and article from newspaper. One of its outlets in Cubans Jay has a digital billboard, controlled digitally from its office.
This provides fast response toward its rival’s advertisement. Besides, Mindy should consider having other marketing strategies such as advertisement through website or radio to provide detailed information and awareness of their existence. 4. 5 People (about 100 words) Is the people marketing mix effective? Explain why you said it is effective. Employees: Because they recruit the right employees? Because the employees are well-trained? Customers: Because they provide information to customers? Because they monitor customer satisfaction? How they monitor customer satisfaction? . 6 Process (about 100 words) Is the process effective? Explain why you said the process is effective? Because there is a balance of supply and demand? Explain more about how they balance supply and demand? When demand is too high Charge full price during peak periods Longer duration of opening hours during peak periods Hire more part-time employees How they differentiate the waiting customers When the demand is low Lower price during non-peak periods Schedule down-time for maintenance, repairs, modify/ move facilities, staff training 4. Physical evidence (about 100 words) Are the physical evidence good or enough? What is the physical evidence? Physical evidence can be the surrounding environment, building design, interior design, facility design, equipment, signage, uniform, communication materials, business cards, annual reports, awards and certificates, web site 5. Conclusion Today, hypermarkets are sprouting so fast in Malaysia especially those foreign- owned hypermarkets. Among the examples of these foreign-owned hypermarkets are Careful (France), Tests (UK), Giant (Hong Kong) and Macro (Netherlands).
These foreign-owned hypermarkets are well-established companies because they have strong capital and current technology in their operations. As such, these foreign-owned hypermarkets pose a threat to local retailers. Through the growing hypermarket industry, consumers in Malaysia can gain from lower prices, higher quality products and greater variety of products. However, when the competition among these hypermarkets increases, the local retailers have to bear the risk of possible closing down. Therefore, governments eave taken a number of steps to regulate the industry.
Among the actions taken by the government are higher population density precondition, local product display requirement, limitation on operating hours (no 24-hour business), and limit on place of establishment. Therefore, it is expected that government will take precaution steps to reduce the influence of foreign-owned hypermarkets in Malaysia. At the same time, the government will encourage the growth of local hypermarkets such as MINDY, Concave, and etc. For example, MINDY has been invited by the government to participate in the 1 Malaysia program and various expos in overseas.
The assistance from the government is crucial to ensure that the local hypermarkets have the necessary ingredients for success. With the intervention of the government in the hypermarket industry, it is likely that the local hypermarkets will have better market access. For example, in year 2004, the government has imposed a five-year ban on the establishment of foreign-owned hypermarkets in Slang Valley, Penman and Juror. Such ban will lead to better opportunity for local hypermarkets in establishing itself in the market. All in all, MINDY has a bright future in leading the distributor of competitive
Hall goods and services. We believed that MINDY will be moving forward to listing its company in Bursa Malaysia 6. 0 RECOMMENDATIONS MY DIN can adopt the following strategies to meet its future challenges: * Product development strategy Under this strategy, MINDY can follow the footsteps of Tests and Giant by selling products under its company’s name. For example, MINDY can sell household products such as tissue rolls, shampoo, and etc where the brand of this range of products will be MINDY. This will enhance the reputation of MINDY. In addition, MY DIN is able to sell this range of products at lower prices.
This is because MINDY can purchase such products directly from the manufacturers. All MINDY has to do is to repackage it into smaller quantities under its name. Since the brand name of the manufacturers is not being used, MINDY can purchase these products at cheaper prices. * Targeting more non-Muslim customers One of the major challenges for MINDY is to attract non-Muslim customers. This is because the store’s name, MINDY, has signified itself as a Muslim store. Hence, MINDY has few non-Muslim customers compared to its competitors due to such perception. Therefore, MINDY has to take proactive actions to break ere from such perception.
MINDY can start off by hiring more employees from other races. In addition, Medley’s advertisement should target the non-Muslim population especially during other races’ festive seasons such as Chinese New Year and Divalent. Also, during the festive seasons, MINDY should put up some decoration to reflect the celebrations. This will create some festive moods for the other non-Muslim customers. * Differentiation strategy MINDY can adopt a differentiation strategy by emphasizing on selling of Hall products. This enables MINDY to differentiate itself from its competitors.