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Strategic Marketing Plan: Company: 99 Speedmart SDN BHD

99 Speedmart aims to strengthen its position as a leader in mini-market retail through developing customer loyalty strategies. This includes establishing an e-Groceries service capitalizing on its strong supply chain and store locations near customers. It will also establish an e-Loyalty program to enhance customer retention through point redemptions and special offers via an app. CRM will be integrated with social media platforms like Facebook to build interactive promotions. The goals are to develop the e-Groceries and e-Loyalty applications, offer reasonable FMCG prices, and deliver products from nearby stores to retain technology-savvy customers.
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100% found this document useful (1 vote)
3K views22 pages

Strategic Marketing Plan: Company: 99 Speedmart SDN BHD

99 Speedmart aims to strengthen its position as a leader in mini-market retail through developing customer loyalty strategies. This includes establishing an e-Groceries service capitalizing on its strong supply chain and store locations near customers. It will also establish an e-Loyalty program to enhance customer retention through point redemptions and special offers via an app. CRM will be integrated with social media platforms like Facebook to build interactive promotions. The goals are to develop the e-Groceries and e-Loyalty applications, offer reasonable FMCG prices, and deliver products from nearby stores to retain technology-savvy customers.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

STRATEGIC Team Members (AA7012B)

Amiza Lina Nawari (2016231812)

MARKETING PLAN
Khairuddin Naim Mohd Zain (2016342915)
Mohd Rosnizam Zailan (2015470534)
Nurul Azrina Rusni (2016924421)
Al Ashraf Zarif Al Bakri (2016985231)
Company: 99 Speedmart Sdn Bhd
Company Background – 99 Speedmart Sdn Bhd
 A local company established in 1987 - founded in Klang by Lee Thiam Wah
 Mini market (mom & pop’s concept) focusing on fast moving consumer goods (FMCG)
 Currently with 1000 stores & 6 distribution centers nationwide
 Offering more than 3500 variety of items – located strategically close to residential area
 Price competitive – offering FMCG at a lower profit margin to compete with big
hypermarket; focusing on volumes for higher profit.
 Managing complete supply chain management – warehousing, packaging, ordering,
transportation and distribution.
 Achieving lower operating cost via economies of scale.
 Strive to provide customer “ideal shopping environment” with a unique selling
proposition (USP): NEAR ‘n SAVE.
Company Background
Deliverables

To analyze 99 Speedmart internal and external environment identifying its


strengths, weakness, threats and opportunities via the SWOT analysis tool

Utilizing the TOWS matrix to evaluate the findings established in SWOT


analysis – to develop strategic marketing solutions to add-value further
to 99 Speedmart organization.

To recommend the key actions/solutions to be implemented to


strengthen further 99 Speedmart’s position as the mini market’s leader in
Malaysia.
SWOT Analysis
(S1) Powerful branding awareness (W1) Little differentiation

WEAKNESSES
(S2) Medium-quality product
STRENGTHS

(S3) Competitive pricing (W2) High rental fee


(S4) Strategic location with 1000 stores (W3) Limited range of products as compare to
(S5) Large scale distribution centres
hypermarket
(S6) Effective supply chain
(S7) Cost leadership strategy (W4) High staff turnover & subpar services
(S8) Store layout & arrangements
S W (W5) Lagged in adapting new technology

O T
OPPORTUNITIES

(O1) Partnership with Petrol Station (T1) Increasing competition from brick & mortar

THREATS
(O2) Partnership with housing developer and online competitors
(O3) Rising acceptance of own-label products
(T2) Rising commodity prices
(O4) Online shopping trend on a rise
(T3) Competition from big retailers / hypermarkets
(O5) Global expansion (ASEAN region)
TOWS Matrix
STRENGTHS WEAKNESSES

i. Capitalize advantage warehouse distributions by establish


OPPORTUNITIES

online store and delivery services. (S5+O4) i. Establish online stores and provide delivery
services especially in places where other
i. Intermediate between wholesaler and customer and selling competitor operates. (W3+O4)
the products not available at virtual stores (S6+O4)
ii. Strengthen social media marketing via Facebook
ii. Expand business by opening new branches or establish
business partnership with other local or abroad
Ad platform (W5+O4)
companies. (S6+O5) S-O W-O

i. Expand store size or redesign interior space to sell


i. Establish own brand via relabeling / repackaging high range of products or previously not available /
wholesale brand products under 99 Speedmart’s name limited. (W3+T1)
THREATS

to sustain 99’s brand recognition. (S1+T1)


ii. Establish loyalty programs to encourage customers to
ii. Capitalized 99 Speedmart’s location advantage by using continue buying products from 99 stores. (W1+T1)
CRM technology i.e. FB and SMS marketing, to engage
better with customers. (S4+T4) iii. Create strong brand positioning on their
S-T concept of NEAR ‘n SAVE. (W1+T1) W-T
Recommendations for Marketing Plan Objectives

Strengthening position as a leader in mini market retail business by developing customer


loyalty strategies via:

Establishing e-Groceries capitalizing on strong supply chain established


(warehouse-logistic-customer) and strategically located near customer.

Establish e-Loyalty program to enhance customer’s retention strategy. Point


redemption, special member’s only via apps.

CRM integration with social media platform (e.g. Facebook)

Strengthening marketing and brand awareness via social media / internet


(IMC)
Marketing Goal and Objective

Marketing Goal 1 To develop new application called e-Groceries

• To capitalize on the existing strong supply chain (warehouse-logistic-customer) and strategically located
stores near to customers.

Marketing Goal 2 To develop e-Loyalty program that linked to e-Groceries application.

• To enhance customer’s retention strategy (point’s redemption, special offer member’s only, etc. via
App).

Marketing Goal 3 To build an interactive promotion via social networks.

• To integrate CRM with social media platform (e.g. Facebook and Instagram ads).
Marketing Strategy

Market Product Strategy Pricing Strategy Distribution Integrated


Segmentation • e-groceries • Fast Moving Strategy Communication
• Repeated Consumer • Delivery Strategy
• e-loyalty
customer Goods Service from • Integrate
• On the go • Reasonable nearest stores e-groceries
customer Price with other
• Variety promotional
customer tools
Marketing Strategy

Marketing Segmentation The target market segmentation are Generation Y and X who are technologies savvy.
• Repeated customer – Customers who prefer retail outlets that are conveniently located.
• On the go customer – Customers who more likely to engage in e-groceries.
• Variety customer – Customers who more responsive to the sales promotions.

Product promotion through e-Groceries and to retain customer by offering reward


Product Strategy
via e-Loyalty program
• e-groceries
• e-loyalty

Pricing Strategy Selling fast-moving consumer goods (FMCGs) products that are sold quickly and at
relatively low cost
• Fast Moving Consumer Goods
• Reasonable Price
Marketing Strategy

Distribution Strategy Providing delivery service and delivery made based on nearest stores location
• Ordering process through e-Groceries

Integrated Communication
To integrate e-groceries application system with all other promotional tools
Strategy
• e-Groceries
• Facebook
• Instagram
Tactical Marketing Activities
Division / Roles & Responsibilities
Department
e-Division • Involve the technical details of developing, testing and launching the new App.
• Involve in establish IMC via Facebook.
• Data analysis from online data received, translating stream of data into useful information
for better decision making.
Marketing • Strategize the content of the information to be display in Facebook (IMC activities).
• Pricing strategy – promotions, discounts & sales.
• Receive information from e-Division on effectiveness of the new App and consumer
behavior
Warehouse • Managing the supply chain with the new e-Groceries demand.
• Ensuring integration between inventory system and new App is effective to avoid customer
dissatisfactory.
Operations • The store operations – to understand how the system works and once deploy ready to
utilize.
• To provide feedback to e-Division for product improvement.
Customer Relation • Manage the e-Loyalty program.
• Interaction with customer via online system – feedbacks, ratings and comments fed through
from e-Division.
Implementation Schedule
Capital Expenditure for Marketing Plan

Marketing Plan Budget - RM750k


Project
Management,
RM75,000

Logistics & e-Groceries App


Warehouse, Development,
RM315,000 RM150,000

e-Loyalty Program
Development,
RM50,000
Trainings for
IMC (Facebook
Employee,
Ads), RM100,000
RM60,000
Evaluation and Control

Performance
Evaluation

Return of
Budgeting
Investment

Evaluation
and
Control
Customer Target
Relationship Market
Management Sales

Customer
Feedback
Evaluation and Control
Performance Overall performance standard for this marketing plan is to increase total sales
Evaluation by 10% for the first year of e-Groceries implementation.

Return of Measure on Return of Investment as to investigate whether the marketing


Investment effort are bringing new customer and driving sales. (Capital Expenditure vs
revenue from online sales where the ROI is 18 months.

Target Evaluation based on geographical segmentation (Petaling Jaya, Shah Alam and
Market Sales Kuala Lumpur). 700 out of 1000 stores located in Klang Valley.

Customer
Monitored by rating and feedback from Apps and FB and take immediate
Feedback
response based on real time.
Customer
Relationship Marketing related performance can be measured through CRM operational metrics
Management

Budgeting Review monthly expenses by comparing plan and actual expenditure


e-Groceries App
Display product on promotions for better visibility to capture customer
immediate attention

Customer will be notified on stock availability based on the location of


the nearest store from customer (GPS tracked)

Display reviews and ratings of the products display, allowing customer


to make a better decision.

Allow register & login using Facebook, Google+ and other platforms, to
ease login process & improved communications

Provide delivery address, items purchase, total price and make payment
all within a single page

List of frequently used item (favorites) and able to schedule monthly


purchase within a click of a button

Promotes products with coupons and promotions via e-Loyalty points


redemptions
e-Loyalty Program
Mobile Access (Card-less)
Electronic base loyalty program where no physical card is required. All
information are accessible via 99 Speedmart App.

Cloud Base System


All information on loyalty program for each consumer are stored in the
cloud, able to retrieve information at any stores for verification.

Easy Points Redemptions


To redeem points, no form or phone calls needed. Instant redemption via
App for cash vouchers which can be used online or at physical store.

Wireless Verification
Faster way to collect points – automatic via online purchase, or scan QR
code at check-out counter at any of 99 Speedmart store

Increase Brand Loyalty


Immediate rewards to customer will improve brand loyalty significantly
since the benefits are gain instantly
Social Media Platform – Facebook Ads
Reaching a Huge Population
More than 80% internet users use Facebook in Malaysia with more than
13 millions users registered. FB Ads able to reach million users effectively.
Targeted Advertising
Ability to reach exact audience – based on age, location, sex, social
behavior and interests.
Quick in Spreading Information
Start reaching thousands of targeted people within a day. It creates
conversations among users which can gives greater influence.
Cost Effective
Cost less than RM30 to reach 1,000 users. And the users can be targeted
effectively with feedbacks to create the social “buzz”
Increase Sales & Revenue
With Ads displaying price & promotions – automatically launch apps to
complete the online transactions
Real-time Advertising
Launching a campaign and monitor the market response immediately,
allowing adjustment of strategies / make corrections immediately.

Common questions

Powered by AI

The 'NEAR 'n SAVE' concept is significant as it emphasizes the convenience of proximity to customers, which is a core part of their marketing strategy. It integrates into their strategic marketing by aligning store locations near residential areas and leveraging CRM technologies to ensure ease of access and engagement, enhancing customer loyalty and retention .

Utilizing economies of scale allows 99 Speedmart to reduce operating costs, thereby supporting their competitive pricing strategy. By achieving lower costs through high-volume purchasing and distribution, the company can invest more into strategic marketing efforts such as technology enhancements and loyalty programs, thereby strengthening their market position .

Partnerships with housing developers can provide strategic advantages such as securing prime locations near potential customers, which supports their 'NEAR 'n SAVE' proposition. However, drawbacks could include reliance on external entities for location access and possible conflicts in development timelines that could affect store opening schedules .

99 Speedmart plans to integrate its inventory system with a new e-Groceries app to ensure an effective supply chain and to mitigate customer dissatisfaction by accurately tracking stock availability. This technology integration aims to provide real-time updates and seamless order fulfillment to enhance customer satisfaction .

Facebook Ads are highly effective for 99 Speedmart in Malaysia, as they can reach over 13 million users, allowing precise targeting based on demographics and behaviors. This capability supports cost-effective campaigns and enables real-time adjustments to strategies based on immediate customer feedback, thus maximizing engagement and response rates .

E-Loyalty programs can significantly enhance customer retention by providing immediate rewards and allowing for easy points redemption via a mobile app, eliminating the need for physical cards. This approach can foster customer engagement and increase brand loyalty, as consumers are more likely to return for rewarded purchases .

To counteract its limited product range, 99 Speedmart plans to expand its store sizes or redesign interior spaces to accommodate a higher range of products that were previously unavailable. This approach not only aims to make the stores more competitive with hypermarkets but also to address customer needs for a broader selection .

99 Speedmart capitalizes on its strategic location by employing Customer Relationship Management (CRM) technology to engage better with customers. This includes using platforms like Facebook and SMS marketing to keep customers informed and involved. This strategic use of location helps the company maintain a competitive edge by keeping customers within their convenience and engagement radius .

The cost leadership strategy benefits 99 Speedmart by enabling competitive pricing, helping them attract price-sensitive customers and maintain high sales volumes. Challenges include maintaining these low costs amidst fluctuating commodity prices and increasing competition, which may impact profit margins .

The company's pricing strategy supports its competitive advantage by offering fast-moving consumer goods (FMCGs) at competitive prices by maintaining lower profit margins, which allows them to compete effectively against larger hypermarkets. This focus on volume sales over high margins helps them sustain competitive pricing strategies .

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