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.