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RMM26 ENGLISH

This time is a very special one. We are celebrating our 54th Merdeka together with Malaysia Day, plus we are still in the ‘Raya’ mood. Merdeka 2011 comes with the theme “1 Malaysia, Transformation Success, People Prosper”. Transformation means a marked change, in appearance or character, and usually for the better. Inspired by this theme, we came out with this issue to help you make some changes to transform your business.

Successful innovationsIn Rencana Runcit, we explore the topic of innovations in non-food products. Find out why and how some categories have changed and get ideas on how to make use of the innovations to drive a more successful business. On top of that, we feature a number of very successful innovative brands, namely CLOROX, MARIGOLD, HEINZ and DRINHO.

Shopper and marketing insightsWe also highlight findings from Nielsen Shopper Trends Survey 2010 that tell you how shoppers have changed in the past year. In addition, we have included some information gathered from the latest national census conducted by the Department of Statistics. We collaborated with TROPICANA TWISTER to help you further understand consumer behaviour when it comes to ready-to-drink beverages. This then gave us the

opportunity to talk about our Chill Ad, a unique and successful advertising medium from Runcit Media Sdn Bhd.

Doing it rightBeing ethical is key to having a successful business. This time around, we discuss the issue of counterfeit, contraband and parallel import products that are slipping into the market now. Learn how to protect yourself, your business and shoppers from such products. There are also a number of very useful tips in this issue, from surviving robbery, to balancing cash register, to expanding your product offerings and providing better service for your older shoppers.

So take some time to browse through the pages of this informative issue. From all of us at RUNCIT MALAYSIA, have a happy Hari Raya Aidilfitri and Hari Merdeka!

TRANSFORMING THE WAY WE DO BUSINESS

WILLIAM KHOOExecutive DirectorInfovantage Sdn Bhdwilliam.khoo@runcit.com.my

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EXPLORING INNOVATIONS INNON-FOOD CATEGORIES

Be in trend with your shoppers and offer them the products they truly need•  •  •

As a retailer, over time you must have seen a lot of change in your stocked products. There are many reasons for that; shopper demands have altered with their increasing living standards, target market demographics are ever shifting and most of all, manufacturers innovate constantly. Understanding the impact these have had on various product categories allows you to better advocate suitable products for your shoppers. Here, RUNCIT MALAYSIA is proud to present you some examples of these changes.

BODY WASH: FEELING & KEEPING CLEAN ALL OVER

Many shoppers have switched to body washes, due to hygienic concerns over bar soaps.

Pumps and refill packsLarger bottles (over 750ml) usually have pumps for convenience and reduced wastage. Refill packs are becoming popular as they cost less and are more environmentally friendly.

Medicated/AntibacterialThese body washes include compounds such as Triclosan, which kill up to 99.9% of bacteria and fungi.

Beautifying agentsSome manufacturers add milk, vitamins, and moisturisers for the beauty-conscious shopper. Others use plant extracts such as lemongrass and frangipani for aromatherapy benefits.

Deodourising and alcohol-freeSports washes include deodourisers to reduce body odour, while alcohol-free ones remove oils and dirt without drying the skin.

Pioneering Refill Packs In MalaysiaSHOKUBUTSU, from Southern Lion, has been the No 1 beauty shower foam in Malaysian households since 2004. It was one of the first brands to popularise refill packs, helping shoppers stock up on less bulky SKUs and reduce household expenses. Additionally, as most shoppers buy body washes to replace empty dispensers, it can be a waste to throw them away – to this end, refill packs are an ideal solution. For these SKUs, Southern Lion advertised heavily in mainstream media and

in-store advertising. This enabled retailers to capitalise on sales, as more shoppers became more aware and looked out for them. Southern Lion continues to conduct R&D, including home visits, to analyse consumer behaviour.

Hygienic Dispensers For Germ ProtectionDettol, from Reckitt BenCkiser (RB), is a pioneer for innovation in the body wash category. Over the years, RB has seen shoppers evolve from using a single, all-purpose body wash to several specific variants, such as ‘Cool’, which provides a cooling sensation after showering on a hot day, and ‘Exfoliating’, designed to remove dead skin cells. Further, RB notes that germ protection is more relevant to shoppers, having gone through pandemic scares such as SARS and H1N1. To address this, the company came up with the No Touch Hand Wash system, based on market and consumer insights. With a battery-operated dispenser, this system automatically dispenses the right amount of liquid soap to kill 99.9% of germs.

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DIAPERS: BABY’S COMFORT, MOTHER’S CONVENIENCE

There’s more to disposable diapers than meets the eye.

Wear like PantsOriginal cloth diapers were fixed with safety pins. Then came Velcro fasteners. Today, some diapers are made like pants that can just be slipped on, and the baby’s ready to go.

Less MessDiapers now come with pockets to contain the baby’s poop & prevent it from smearing the bottom.

Pretty designsSome diapers come with attractive cartoon prints. They not only thrill the baby but also nice enough to be worn on the outside, without pants.

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Baby Got Pants On

MamyPoko, from Unicharm, aims to be the brand that understands babies the best; making products that suit babies at every stage of their growth. Its diapers are designed to accommodate changes in babies’ urination & defecation as they grow. In 2002, MamyPoko became the first pants-type diapers brand in Malaysia, offering greater convenience to shoppers. Since then, MamyPoko has led this market segment. In 2008, Unicharm launched the first economy pants-type diaper ‘MamyPoko Easy Fit Pants’, overturning shoppers’ perception was that they were too expensive. Unicharm has in-store product presenters to educate shoppers on its products and highlight important features. It also runs ad-hoc educational campaigns in-store.

Shoppers have come to demand more from modern toothpastes than just to help clean their teeth.

Better dispensersAs well as tubes with flip tops, which are more convenient than screw tops, toothpaste also comes in stand-up tubes, like those used for shaving cream, which are more hygienic and less wasteful.

TOOTHPASTE: MAINTAINING PROPER ORAL CARE

Tooth whitening and sensitive teethWhitening toothpastes contain abrasives, which rub away surface stains, and bleaching agents. Other specially designed toothpastes for sensitive teeth contain chemicals that block the pain.

Halal and herbalStock halal-certified toothpastes for shoppers worried about the toothpaste ingredients. Toothpaste manufacturers also use herbs, such as kayu sugi or aloe vera, for more ‘natural’ toothpastes.

SANITARY PAD: FOR A MORE COMFORTABLE

PERIODPublicly discussing periods was once taboo, but now sanitary pad brands can use local celebrity endorsements. They even hold ceramahs for primary school girls to capture their loyalty!

Packaging and designSanitary pad’ surfaces are either plastic dry-weave netting or cottony. Some pads have ‘wings’, which help secure them to the panties for greater comfort and reducing panty stains. Many brands also come attractively wrapped, so shoppers are not shy to purchase or carry them in public view.

Varying absorption levelsSanitary pads have different sizes and lengths, depending on how heavy the menstrual flow is. From least to most absorbent, they are panty liners, slim/normal pads, super/maxi pads and overnight pads.

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Night Pads That Fit And Work Right, No Matter WhatSofy, from Unicharm, has upped its game with its “Sofy BodyFit Comfort Night” overnight pads range. Its new feature, called “Fit-to-Absorb Zone”, slightly raises the pad in the middle to fit the body’s contours and help increase menses absorption when in motion. These pads have sizes up to 41cm, with increased absorbency at their sides. Unicharm sees Sofy as a brand bringing comfort to Malaysian women. Priding itself on understanding shoppers’ needs, Sofy is in the top 4 brands of overnight sanitary pads. Unicharm’s research suggests that of all channels, traditional trade is where the overnight and panty liner product range has grown the greatest, and where teenagers and women in their 20s most often buy their sanitary pads.

LAUNDRY DETERGENT: KEEPING CLOTHES BRIGHT & CLEAN

Before, laundry detergents came in bars. Today, most detergents are either liquids or powders, but the bar is still popular.

Enzyme compounds/Anti-MalodourSome detergents have enzymes that break down food stains and remove bacteria that cause clothes to smell when dried overnight or indoors.

Colour enhancementCertain laundry detergent SKUs have chemicals called optical brighteners that make the colours more vivid.

Did you know?Many Malaysians think suds demonstrate cleaning power. However, normal powder detergent brands that produce a lot of suds can cause problems in low water, high-efficiency washers. So, low-suds brands are used instead.

Best Brand In Anti-Malodour DetergentsTop, from Southern Lion, took the market by storm in 2003 by launching their powder detergent with its groundbreaking anti-malodour formula. Top’s advanced biotech enzymes cleaning formula (Easy Clean) effectively removes tough stains and bacteria that cause malodour, helping make it the No 1 regular powder detergent brand in the market. Southern Lion spends over RM1 million annually in market and consumer research. The company is committed to constantly lead the market in terms of product innovation, while educating, supporting and working together with retailers.

SHAMPOO: BEAUTY IN A BOTTLE

Today, shampoo is the preferred way of washing your hair, and is an essential part of the hair and scalp care category.

Scalp & Hair CareAside from medicated shampoos for dandruff control, shampoos now come for oily, dry or itchy scalps. Herbs and other plants such as aloe vera, urang aring and flower extracts can moisturise hair, keeping it shiny and minimising split ends.

Maintaining Hair StylesShampoos can help protect hair colour, blacken hair, even straighten frizzy hair or otherwise maintain hair styles or reduce hair loss. Shampoos also exist that cater to women who wear tudungs or helmets, to avoid ‘helmet hair’.

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As a retailer, you should be constantly on top of your shoppers and their ever-changing needs. Here are some tips on how to optimise the product range you carry.

• Keep in touch with the latest product category trends and innovations. That way, you will always stay ahead of your shoppers.

• Know your regular shoppers so that you can make good suggestions, adding value to your service. Your shoppers will appreciate it.

• Stock up on your best-sellers. That way, you will not run out at a critical moment.• Take advantage of manufacturer-driven product launches, which are generally supported by

thoroughly researched, well-planned advertising and promotion activities. • Understand shopper needs and frustrations, and address them. If there are strong price

perceptions, for example, display the price of the affected products prominently in the store.

CONCLUSION

Shila Dorai RajCEO of Malaysia Competition CommissionMinistry of Domestic Trade, Cooperatives and Consumerism

In its effort to encourage a healthy business environment, the Government has introduced the Competition Act 2010, which aims to promote economic growth, improve the process of competition and protect the consumers’ interest. Shila Dorai Raj, former Head of Interim Competition Unit and now the CEO of the Malaysia Competition Commission (MyCC), Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC), shared some interesting facts about the Competition Act 2010 at a briefing held recently by the Malaysian Advertisers Association (MAA).

Fast Facts: Competition Act 2010 At A Glance• Applies to ALL commercial activities, whether by private companies or by government-

linked companies.• Prohibits anti-competitive agreements such as between competitors OR two parties at

different levels (eg between manufacturer and wholesaler/retailer) to fix prices or limit productions.

• Will be enforced on 1 January 2012 and overseen by the Malaysia Competition Commission (MyCC).

How The Act Affects YouThe Act will have an impact on manufacturers, suppliers and you, the retailer.1. The Act does not allow vertical arrangements (arrangements affecting the entire supply

chain from manufacturer to retailer) that can be seen as anti-competitive. This could mean that certain agreements between supplier and retailer (such as exclusive dealership) may be prohibited.

2. The Act does not allow price fixing besides that imposed by the Price Control and Anti-Profiteering Act 2010. Therefore in most cases, neither manufacturers nor retail associations can set fixed prices for products.

3. The Act prohibits abuse of dominant positions. If you own the only kedai runcit in an area, you may be looked at much more closely, to ensure you do not take advantage of consumers in the neighbourhood.

4. The penalties for infringing on the Act are very high; up to RM10 million of worldwide turnover, or for offences committed, RM1 million or 5 years imprisonment!

Manufacturers are already preparing for the Competition Act, and you should as well! Work closely with the manufacturers who care for you and have your best interests at heart.

EXPLORING THE COMPETITION ACT

TIP: If you are not sure whether any of your contracts, agreements or practices are not allowed under the Act, now is the time to ask! email icu@kpdnkk.gov.my or call MyCC at (03) 7803 2611

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With the traditional channel forming 50% of Nestlé’s sales, the company remains committed to helping its traditional trade partners grow, even in light of Malaysia’s Competition Act.

Nestlé Sales Director Victor Seah points out that the current situation where there are two clearly defined channels (modern trade and traditional trade), with industry players either in one line of business or the other, will not be the case for much longer. “Already, leading hypermarkets are experimenting with small format stores, and with their parent companies’ buying power, they can sell cheaper than traditional retailers and still make a reasonable margin,” he cautions. “While the Competition Act regulates similar-sized entities, quantity has a quality of its own. These small format stores still have access to their parents’ resources, which means the peruncit has to be on his toes.”

As such, Nestlé has spent the past 18 months preparing to continue meeting the needs of traditional retailers. The company has capitalised on its 1st mover advantage by educating its staff on the implications of the Competition Act. “We have been holding roadshows all this time, training and preparing our managers and our sales personnel on what the Competition Act might mean in terms of how we reach out to the traditional trade, and how it changes the way we do business with the retailers,” Victor explains. Below, he outlines some of those changes and preparations:

Moving Beyond Brand ThinkingPreviously, we focused on growing our particular brands when working with you. Our strategy is now to help you promote category growth as a whole. This is better for your business, and our brands grow at the same time. These category growth initiatives will change the very nature of how we approach the advice we give to you, and

the support we provide your business, to our mutual benefit.

Knowing Your Business NeedsThrough GPS, we know exactly where outlets and distributors carrying our products are in Malaysia, and we also know what products sell best where. Therefore, we can customise our trade deals and come up with win-win situations. In addition, through this geo-mapping, we can plan strategic marketing and promotional campaigns that take your particular surroundings and shopper demographics into consideration.

A Team Just For YouWe have created a focused organisational structure, creating a team dedicated to the traditional trade from top to bottom. This team is designed to cater specifically to your needs and your circumstances as traditional retailers. Our team has spent the last year researching the traditional trade, understanding the requirements and spending habits of traditional trade shoppers. In this way, we can continually innovate the products and SKUs we offer to you based on these.

Nestlé’s Advice To Retailers

In light of the Competition Act, Victor has some advice for the traditional trade.

- Don’t get into price wars; you must differentiate in a different way.

- Carry products that you can handle, the brands people want, which allow you to make a reasonable profit.

- Modernise, modernise, modernise. Be smarter at retailing. Get better POS equipment, improve your store cleanliness, and ask for help to have better shopping conditions and attract more shoppers. The government is moving in this direction, so you should as well.

NESTLE IS PREPARED: YOU SHOULD BE TOO

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Victor SeahSales Director (Malaysia, Singapore, Brunei)Nestlé Products Sdn Bhd

A look at the changing Malaysian shopper demographics.

It is crucial to understand your shoppers; their circumstances, their requirements and their desires as these guide their purchasing behaviour. Here we present you some findings from the latest national census undertaken by the Malaysian government, to help you gain some insights into the Malaysian shopper.

A Steadily Growing Population…

THE MALAYSIAN SHOPPERRMM26 MAKLUMAT RUNCIT

… But A Gradually Aging OneThe number of Malaysians below the age of 15 is slowly dropping, while the number of working-age adults (15-64) has increased. People aged over 65 now form slightly more than 5% of the population. Therefore, it only makes sense to start catering to the needs of our golden citizens.

An Urban SocietyMalaysians are getting more urban as time goes by, with 71% of all Malaysians living in urban areas in 2010 compared to 62% in 2000. However, around half of the population in Kelantan (57.6%), Pahang (49.5%) and Perlis (48.6%) still live in rural areas, and hence rely largely on kedai runcit to serve their needs.

Mostly MaleMen have been outnumbering women in Malaysia since 1980, with 106 males for every 100 females on average nationwide in 2010. That ratio is even higher in Johor (112) and Pahang (113). However, if you are based in Putrajaya (89) or Perlis (97), you might want to consider catering more to women shoppers.

While these are broad figures, it indicates who and what the average Malaysian shopper is likely to be, and what our country is trending towards. We hope this will help to start you off.

Source: Population Distribution And Basic Demographics

Characteristics 2010, Department of Statistics Malaysia

With the increasing number of modern convenience stores, we in the traditional trade are facing fiercer competition than before. This has led to a group of retailers selling imitation, illegal and unethical goods for quick and easy profit. These items, despite their lower selling prices, still rope in higher margins. While this may prove profitable in the short term, you might be putting your business and your shoppers at unnecessary risk. Read on to learn up on these items and how to avoid them.

COUNTERFEIT

What is it?Imitations made with the aim of passing them off as genuine. Counterfeit products are produced to take advantage of the high value of the imitated product. For example, traditional trade in Malaysia is facing the issue of counterfeit Oral-B toothbrushes.

The Consequences× Lower product quality.× Negative store image.× Reduced shopper satisfaction.× Risk being fined by the authorities.

CONTRABAND

What is it?Contraband represents any item which is illegal to be possessed or sold. These goods are often smuggled or stolen stock, and sold at retail value or less. In Malaysia, contraband cigarettes are a big issue, accounting for more than 1 out of every 3 cigarettes sold. (Source: South Asia Tobacco Control Alliance, SEATCA)

The Consequences× Risk being fined by the authorities.× Exposes shoppers to danger as contraband

items do not go through quality assurance.× Compromised product quality.

PARALLEL IMPORTS

What is it?Non-counterfeit products are often imported from another country to be sold alongside the locally available products. This is often because different countries sell the same product at different price points, and so the difference in cost is taken advantage of. For example, suppliers in Malaysia import certain goods from Indonesia because they are sold at much lower prices there.

The Consequences× Risk being blacklisted by authorised

distributor and/or manufacturer.× Spoils the market for surrounding shops.× Goods not exchangeable.

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CONDUCT BUSINESS ETHICALLYSelling counterfeit, contraband and parallel import items may mean easy money, but in

the long term it can have negative effects on you and your business.

BEWARE OF COUNTERFEIT HEINZ ABC SAUS MANIS

Recently, HEINZ commissioned Runcit Media Sdn Bhd to run a product availability survey on its ABC Saus Manis in a number of traditional trade outlets throughout Peninsular Malaysia. At the same time, they also investigated the availability of counterfeit ABC Saus Manis products. It was found that almost half of the outlets surveyed had counterfeit ABC Saus Manis products on their shelves. The majority of affected retailers were not even aware that they were selling counterfeit products!

IDENTIFY THE COUNTERFEIT

It is important for you to protect yourself and your business from the serious implications of selling counterfeit products. Therefore, you should learn how to differentiate the fake from the original. Below, we list down the characteristics of counterfeit ABC Saus Manis products that were observed by RMSB during the survey:

× White cap× No HEINZ logo× Wrong ABC logo× No nutrition information× Barcode on neck× No Halal seal× Usage of the word ‘kecap’

To impede the sale of counterfeit ABC Saus Manis, HEINZ has sent out letters to retailers requesting their cooperation on the matter. As a

multinational food product manufacturer, HEINZ is committed in ensuring quality and cleanliness in all its products. The HEINZ logo on every original ABC Saus Manis is a guarantee that the products are Halal (certified by Majelis Ulama Indonesia, MUI, a body recognized by JAKIM) and safe for consumption.

If you happen to have counterfeit ABC Saus Manis products in your shop, immediately take them off your shelves and report the matter to HEINZ. To lodge a report on counterfeit ABC Saus Manis, please send an email to enquiry.malaysia@sg.hjheinz.com 

DO YOUR PARTStocking up and selling these goods may bring you quick cash, but they can also bring you a lot of trouble. You should avoid them by watching out for these signs:ü Be wary of suppliers who approach you with unreasonably low prices.ü Make sure your current suppliers are licensed.ü Be careful of products that appear out of the ordinary.

Did You Know?Like the trade practices described here, profiteering (taking advantage of economic situations like a product shortage to jack up your prices) can be a tempting way to make a quick buck. But it is also unethical, and like selling counterfeit and contraband products, illegal. For more information on profiteering, read last issue’s article on the Price Control and Anti-Profiteering Act.

Instead of taking shortcuts to fast money, concentrate on ways to improve your business the right way through improved efficiency, value-added services, special offers etc. Your shoppers will appreciate it and you would be able to sleep peacefully at night, knowing that you’re making an honest living.

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cont’d

Time and again, traditional retailer concerns about competing with modern trade outlets will arise. However, findings from Nielsen Shopper Trends Survey 2010 seem to favour the minimarkets. Teoh Choon Keat, Associate Director of Retail Measurement Services from Nielsen Malaysia, shared the findings with RUNCIT MALAYSIA.

Fastest Growing Channel

Minimarkets is the fastest growing trade channel with 63% growth or 408 premises in 2010 compared with 250 outlets in 2009. This channel is becoming increasingly popular with shoppers not only due to its easy accessibility, but also competitive pricing, good product offerings and simple store layouts.

Shoppers Seek Promotions

MINIMARKETS ARE GROWING STRONGIn quantity and popularity

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Teoh Choon KeatAssociate Director of Retail Measurement Services

Nielsen Malaysia

Malaysians are becoming more cautious in their spending for everyday household items. Many would visit more outlets in search of better bargains. The survey found that 56% of respondents actively search for promotions while 21% would even change stores based on the promotions offered!

Eyes On The Prices

When it comes to paying for the items they purchase, Malaysians are the most price-sensitive shoppers in Southeast Asia. 55% claimed that they know the prices of most items and would notice if there are price changes while 13% know all the prices of items they buy regularly.

Women Decide, Men Influence. Malaysia charted the highest percentage of males as main shoppers for households in Asia Pacific with 37%. However, in terms of purchase decisions, women are still the main decision makers while men play a more active role in influencing those decisions.

Brush Up Your Strategies

Teoh mentioned that switching stores based on promotions or price is a strong pulling factor for shoppers. “Both retailers and brand owners would need to develop more active strategies such as cash vouchers to protect or grow their market share. Longer-term constructs such as rewards-based redemption programmes may also help to build stronger shopper loyalty,” said Teoh.

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Article in collaboration with

cont’d

Balancing your cash register means ensuring that the total amount of cash collected for the day tallies with the cash register’s records. This will help prevent loss and ensure reliable accounting records. Here’s how you can do it effectively:

1. One person is bestIf you can, have just one person manning the cash register so that it’s possible to hold him/her responsible. However, if you have cashiers operating on shifts, make sure handovers are done properly.

2. Don’t let people see this happeningTake the cash drawer and all its contents to your office or a secluded and safe area. If this is done at the end of your operating hours, turn off all the main lights and lock all the doors before you start counting.

3. Investigate overages or shortagesCheck all discrepancies. While minor errors and small amounts may be human error, frequent occurrences could be employee theft or may indicate that additional training is required for the cashier(s).

4. Compile all receiptsGroup all credit card slips (if any) and suppliers’ bills and file them by date to ease tracking your total earnings at the end of the month.

5. Allocate reasonable amount of cashDeciding how much cash to have on hand depends on your outlet size, traffic flow and average collections. Just as a guide, a small outlet may have RM300-RM400, medium RM500-RM700 while a large outlet may allocate up to RM1,000 daily.

Convenience of a scanner

Bigger outlets usually have scanners that are linked to cash registers to speed up the process of counting total cash collected and type of goods sold. It also helps during stock-takes, be it monthly, quarterly or annually.

BALANCING CASH REGISTER

TIP!

Always ensure that you have enough small change (coins, RM1, RM5 and RM10 notes). Don’t lose sales opportunity or annoy shoppers.

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New products are introduced into the market almost every day. Can any of them be offered in your shop? Read on to find out how expanding your range of products can help to increase profitability.

Why?ü Avoid losing shoppers to another shop if they can’t find certain products they are

looking for. In the long run, they may even start patronising that shop too, so why take the risk?

ü Encourage shopper loyalty because having a good product range is also a way to provide better customer service. If you always have the latest products, you could suggest them to your shoppers. They would definitely appreciate it, especially if they haven’t heard of the new products yet.

ü Expand your shopper base. As you know, word-of-mouth is a very powerful marketing tool. If your existing shoppers are pleased with your offerings, chances are new shoppers will start coming when they hear about how convenient your shop is to shop at.

ü Stay competitive. If you can’t win with pricing, why not compete by always having the latest products? In the shoppers’ eyes, you will also appear very knowledgeable and up-to-date.

How?• Study your shoppers’ needs and wants to find out what can be added or perhaps

removed (especially slow-moving products) from your existing range.• Stock smart. Do not just buy whatever products offered to you without considering

whether they are sellable. Also consider your storage and display space. If you are unsure of the products’ performance, purchase a small trial quantity.

• Manage your finances well. Will buying the new stocks affect your plans for purchases of regular stocks? If possible, try to set aside a budget for purchasing new products.

EXPAND YOUR RANGE

TIP!

You must learn more about the

new products you’re offering in

order to drive its sales. Ask your

suppliers and request for point-of-

sale materials if available.

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Ever thought about the roles older shoppers play in ensuring the success of your business? If your shop is located in a housing area, chances are you will have a significant number of older shoppers. Learn how you can provide better service for them.

1. Offer more functional products.As discussed in last issue’s Rencana Runcit, older shoppers purchase more functional products, be it food or non-food. Multivitamins, over-the-counter medications and adult diapers are some examples of functional products older shoppers would buy.

2. Relook your product placement.Are there any products that are popular with older shoppers but are currently displayed at the back of your shop or in narrow isles? If so, switch the placements to make it easier for them to see and reach them.

3. Train staff to pay extra attention.Always remind your staff to be more helpful to older shoppers. Get them to help reach products from higher shelves, carry selected items to the payment counter and car or even offer valet parking.

4. Provide better equipment.You can provide chairs for these golden citizens to sit while waiting to pay or get their purchases packed. Adequate lighting along the isles and maybe even restrooms is something you can consider as well.

5. Reward long-term shoppers.If you know that they have been patronising your shop, why not show some appreciation? Rewards can be in the form of small discounts or free gift. Older shoppers are more appreciative of such initiatives.

BETTER SERVICE FOR OLDER SHOPPERS

TIP!

Generally, older shoppers do not carry a lot of cash. Therefore, accepting credit and debit cards may be something you want to consider.

RMM26 PERUNCIT PRAKTIKAL - MESRA

Did you know that shoppers find Ready-To-Drink (RTD) beverages very convenient? They can either be consumed on the spot for those looking to quench their thirst, or brought to a party, so they are perfect for today’s busy shoppers.

In April this year, we ran a study to see how shoppers buy and consume RTD beverages. The study covered 11 outlets and 120 shoppers in Peninsular Malaysia. We are pleased to present our results here, and to give you some tips on how you can best market RTD beverages.

Shoppers Mostly Buy From You!This may surprise you, but in the study, we found out more than double the number of shoppers buy their RTD beverages at traditional retail outlets compared with any other outlet:44% from retail stores17% from supermarkets17% from convenience stores12% from hypermarkets

Most Shoppers Plan Their RTD purchases…73% of all RTD purchases are planned ahead of time, because the shoppers already know what they want to buy and why.

… But when it comes to RTD fruit juices, impulse buys are highA lot of shoppers change their minds in the store and make impulse buys for RTD fruit juices/drinks in place of other RTD beverages. Therefore, consider using POP media to increase your sales.

BOOST YOUR RTD SALES

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Most Shoppers Buy RTD Beverages To Drink StraightawayAs their name suggests, RTD beverages are designed to be consumed as is, to save on preparation time. Many shoppers buy RTDs because they are thirsty, and drink them immediately after paying, so you should set up your store to make this easier for them.

Juices are the preferred RTD beveragesToday’s shoppers are more health-conscious and food-conscious than ever before. Therefore, it is not surprising that fruit juices/drinks lead the RTD category, followed closely by isotonic drinks. So, stock more of these beverages.

cont’d

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ALL YOU EVER WANTED TO KNOW ABOUT TROPICANA!

ü TROPICANA is the world’s no 1 juice brand.

ü It is recognised worldwide for its 100% pure fruit juices.

ü TROPICANA is an established and trusted brand for well over 60 years, with global markets in all 5 continents.

ü It is a premium fruit drink that Malaysians have trusted to give them the fresh-tasting, high-quality, rich daily nutrition that they need to keep their bodies healthy.

Source: Euromonitor 100% Juice 2009

DID YOU KNOW?The study also found that TROPICANA TWISTER is the most purchased fruit juice/drink brand, at 69% of all such drinks bought!

*For more information on TROPICANA TWISTER or other Permanis brands, call these numbers or visit www.permanis.com.myKL/ SELANGOR: (03) 8725 3333MELAKA: (03) 3519 175PRAI: (04) 3997 335ALOR SETAR: (04) 7771 310IPOH: (05) 2822 660KOTA BHARU: (09) 9581 785KUANTAN: (09) 5673 301MENTAKAB: (09) 2272 730KUALA TERENGGANU: (09) 6668 010KOTA KINABALU: (088) 8435 868KUCHING: (082) 2433 091MIRI: (085) 5657 240

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AN ORGANISED CHILLER EQUALS BETTER BUSINESS

93% of RTD purchases at retail stores are off-takes from chillers. Keep your chillers in good conditions by following these simple tips:

ü Keep it hygienicClear out your chiller and give it a good wash every few months or so. Shoppers are attracted to tidy displays.

ü Keep it maintainedFollow the maintenance schedule as closely as you can to keep your chiller in good running condition. This will allow your RTD beverages to remain cold and reduce your running costs.

ü Keep it organisedNeatly arrange the products in your chiller by their type. Put all fruit juices/drinks together, all carbonated soft drinks together and so on, so your shoppers can easily find what they want. Ask your supplier for planogramming advice.

ü Use POP media to your advantageAdvertising media can help increase offtake, so ask your suppliers how they can help with marketing RTD beverages in and around your shop.

ü Keep different chilled items in separate chillersWhile you might think it is cheaper to put vegetables and taufu in the same chiller as your RTDs, it is not safe and can lead to contamination.

Article published in collaboration with

RMM26 MEDIA RUNCIT

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FOR MORE INFORMATION, CALL US FOR A PRESENTATION!RUNCIT MEDIA SDN BHDTEL: 603-7957 1718; E-MAIL: info@runcit.com.my

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LIVES COME FIRST“It all happened in only about 5 minutes. A man was walking around the shop suspiciously. He then made a phone call, probably to inform his accomplice that the shop was empty. Another person came in wielding a parang. He shouted at my staff to get down on the floor, and knocked one of them on the head with the edge to keep them from trying anything. They then proceeded to take everything from the cash register, plus a few drinks from my fridge before leaving. I have since installed an alarm system that can be triggered with the push of a button. My advice to other retailers is give your full cooperation during a robbery. Lives are more important than money.” – Lim Eng Chuan, Pasar Mini SS, Melaka

KEEP AN EYE OUT“It was about 7.30 in the morning. Only my father was in the shop at the time. 2 men came into the shop. 1 was holding a steel rod, and the other, a parang. The one with the steel rod hit my father on the head, while the other one tried to slash him. Fortunately, my father escaped serious injury. The robbers then took what valuables we had and left. The nearby neighbours then called the police while I sent my father to the hospital for treatment. I would advise other retailers to always be on the lookout for anyone suspicious.” – Te Jin Long, Kedai Runcit Soon Li, Muar, Johor

INVEST IN SECURITY“I remember that it was raining in the evening when it happened. Business was slow. 2 suspicious men, in their 20s, stopped their motorcycle outside my shop. The next thing I knew, they came into the shop; one was holding a metal rod and the other one had a spanner. I tried to put up a fight, and they got very violent. I was hit on the head. I remember bleeding quite badly. After they took everything from the cash register, they sped off on their motorcycle. I wish I had installed more security measures, like an alarm or something to deter these people.” – Ibrahim bin Ismail, Pasar Mini Nisam Jaya, Cheras, Kuala Lumpur

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SURVIVING A ROBBERY

Those of us who have been through the ordeal of being robbed know the distress that it can cause and the dangers it can bring. Runcit Malaysia interviews retailers who have experienced robberies and gathers practical tips on what to do in such situations, so you can learn from their ordeal how to deter and get through robberies should it happen to you.

WHAT TO DO IN A ROBBERYIn a situation where your life is on the line, forget about the money. Your life is much more important. Take a few minutes to memorise these tips, and teach them to your staff.

During The Robberyü Don’t try to be a hero. Do everything the robber says.ü Stay calm. If you panic and do something that angers or startles the robber, it may endanger

your life.ü Look down and away. Making eye contact might anger the robber.ü Make sure your hands are in plain sight. If you have to move, do so while keeping your

hands visible.ü When the robber is leaving, do not chase. Remember that the sooner the robber is gone,

the sooner everyone is out of danger.

After The Robberyü If there are any injuries, tend to them and call for medical help before doing anything else.ü Call the police when it is safe to do so.ü Close up the premises.

OBSERVE AND REMEMBERTry your best to remember the features of the robber so that the police can find the culprit efficiently. Calmly observe the following characteristics:ü Heightü Hairü Eye colourü Physical conditionü Special marks or tattoosü Transport description and license plateü Direction of travelü Weaponsü Anything unique

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The story of how Mohamed was almost ruined by competition, until he decided to fight back.

At first glance, Ali Shopping Centre seemed similar to a modern mart chain; the premises were clean and brightly lit, and the goods neatly stocked and arranged. There was a good variety of brands and products. That, coupled with the workers’ pleasantness, made the atmosphere warm and welcoming.

A FAMILY BUSINESS FOUNDATIONMohamed Suhubudeen had a very strong foundation in the traditional trade; he started out helping at his relative’s store from the age of 7. In 1985, his father opened 2 businesses: a kedai runcit and a restaurant. It proved tough for his father to run both businesses simultaneously. Meanwhile, Mohamed went on to obtain a diploma in accounting and then a degree in IT. In 2002, when he finished his studies, Mohamed received an attractive job offer. At the same time, his father presented him the option of inheriting and running the kedai runcit. “I took my father’s offer without hesitation. It was a great opportunity for me.”

THE COMPETITION ARRIVES“For 2 years I ran the store with little thought of expansions or upgrades. It was bringing in enough for me to eat, keep up with my car payments and settle my rent, and so I left it as it was.” One day, another shop opened up nearby. Mohamed saw a big drop in sales almost immediately. His competitor was selling the same products but at lower prices, marking up only enough for minimal profits. “Whenever a shopper informed me that they were selling the same products but cheaper, I’d take them off the shelves. This was my way of avoiding direct competition.” Before Mohamed realised it, his shelves were half empty, and business was worse than ever. “After only 3 months, I was at rock bottom. I was behind on my rent, late on my car installments and I was delaying wages and other payments. It was really bad.”

NEVER GIVING UP

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Name: Mohamed SuhubudeenShop: ALI SHOPPING CENTRE, 14 Jalan Liku B 8/B, 40000 Shah Alam, SelangorTel: (03) 5511 2521

FIGHTING BACK

“I was seriously considering closing up for good. Then I asked myself, “Should I go down without a fight?” That’s when I decided not to give up without doing everything I could first.” Mohamed called up his supplier and pumped up his stock: more brands and more products, giving his shoppers more choice. “Secondly, I concentrated on my shoppers – the most important people in any business. They were king, as far as I was concerned. Complaints were dealt with in a swift manner and enquiries were addressed quickly and efficiently. I even installed fans around my shop for their comfort.”

REAPING THE BENEFITS OF HIS EFFORTS

Mohamed’s efforts paid off. His shoppers returned. Slowly but steadily, business picked up. “Not only that, I had more business than I had before! I was winning the war. Finally, my competitor packed up and moved somewhere else. I ended up with a better business and valuable life experience. Today, I have 3 branches, and on top of that, I’m planning to franchise my shop,” Mohamed proclaimed with a wide smile.

ü Location is very important. If you’re looking to open a shop, keep an eye out for new developments. There are many new ones coming up nowadays. Try to be the 1st one to open shop in an area.

ü The shopper is king, so take care of them as best as you can. I give immediate discounts whenever a shopper tells me that another place sells the same product cheaper. It’s not worth 1 or 2 ringgit to lose a loyal shopper.

ü Keep your staff happy. I’ve had unhappy staff who have left before working for even a month. This hampers business. Treat your staff like family and they will be dedicated. For example, pay them on time, every time.

ü Keep your store neat so that your shoppers can find what they want easily. I used to keep many products high up on shelves. As it turned out, I was losing sales because shoppers were too shy to ask to see them close-up, and so they chose not to buy it in the end.

ü Undertake tertiary education and arm yourself with the education and information you need first before venturing into business. It will mature your thinking and prepare you for tough decision-making in a hard business environment.

Mohamed’s Business Tips

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Be it right or wrong, we always have to abide by our decisions. In business operations, how you go about making decisions is very crucial. A right decision will bring good results while a bad one could end up in disaster, in terms of the bottom line.

A lot of retailers tend to shy away from making decisions. The result? Nothing is done and all unresolved issues are left hanging in the air! Being caught in such situation will not augur well for your business. Plus, it will reflect very poorly on you.

Decision making must not be based on impulse or feelings. Instead, we have to be sensitive of the circumstances around us, in order to create a conducive environment to arrive at the right decision. When a decision has to be made, act immediately. Any delay or procrastination will affect the professional and personal wellbeing of the business.

The end result of our decision making can determine our destiny. Hence, it must be made in the best interest of what we have set out to do. Here are some guidelines to various forms of decision making. Hopefully, you can adopt the one that suits you best in running your business.

GOOD DECISION MAKING

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Democratic Style• The leader takes the lead while taking

into consideration the views of the staff

• This will draw ideas and suggestions by discussion and consultation

• This will also give rise to stronger teamwork and team effort

• Besides creating a family concept atmosphere, it will also encourage participative style management

• This will create a conducive working environment with the sharing of responsibilities

Autocratic Style• The leader assumes full responsibility

for all actions and decisions taken• This requires minimum participation

from the subordinates. Instructions given must be carried out without further questions

• This works exceptionally well in an environment where the staff are very relaxed, in terms of bearing responsibility

• The downside of this approach is that it may affect staff motivation and in the event a wrong decision is made, it may reflect very poorly on the credibility of the leader

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Collective or Participative Style

• This will encourage the staff to give their views and share their knowledge and experiences

• While the input comes from the staff, the leader is in total control and responsible for the decision making

• This approach is highly recommended, when the subordinates are mainly skilled workers which may not necessarily apply in the context of your business operations

• If this approach is adopted, it will do a lot of good for team morale. However, the process of arriving at the decision is very time consuming

Having said these, the following prerequisites can greatly influence your decision making and its outcome:

• Strong leadership qualities and a positive attitude• Willingness to change• Submission to authority and to seek counseling, whenever the need arises• Understanding of objectives and goals in deploying the right strategies• Thorough situation analysis• Knowledge of the business, market and competition • Strong determination to succeed and to excel in whatever you do

Please be reminded that decision making is never easy. It is a form of art in which you must rely heavily on instincts and past experiences, for it to have a positive impact on your business. We sincerely hope all of you will pluck up enough courage to pay greater emphasis on your decision making, so that your business will continue to grow and prosper from strength to strength.

Q1. How can I practice price control to align with other kedai runcit, so there are no major price differences between all the various shops in the area?

Zainuddin bin Ag. Mat Pasar Mini KeterehKetereh, Kelantan

A1. Fixed pricing apply only to items that fall under the Price Control Act ( eg sugar, flour, rice, etc), were the selling prices are constantly monitored by the Ministry of Domestic Trade, Cooperatives & Consumerism. Hence, for most other items, their costs are up to the suppliers, usually depending on the volume purchased. The profit margin of the merchandise also vary from one retailer to another and as such, the selling prices are also different. No doubt, you have seen that some big retailers, especially in the modern trade, have much lower selling prices compared to the kedai runcit.

The manufacturers’ recommended retail prices and a quick check of what prices your competitors offer are a good guide in deciding your own selling prices. We suggest that rather than controlling your prices, you look into other areas that will appeal to your customers, like providing better customer service. As a responsible retailer, you should not get involved in a price war, as it will benefit only the consumers.

We hope you will now be able to determine your products’ selling prices, guided by your own profit policy. We wish you every success in establishing an effective pricing strategy.

Q2. Some shoppers talk so much, while others don’t even want to reply when I ask them questions. Still others like to ask many questions but end up not buying anything. How do I deal with all these different types of shoppers?

Choong Tuck FeeiPasar Mini Chop Wan YingJelapang, Perak

A2. It takes all sorts of people to make the world, and likewise with your shoppers. You should handle them in a professional way, without being too offensive or getting into any auguments with them. Your speech and body language have to be closely guarded and do not send out any negative signals, which can negatively impact your future sales and traffic flow. Remember, if your shoppers are happy, they will keep coming back for more and in the long run, you will be able to build up a strong base of loyal shoppers.

We would like to share with you some general characteristics of shoppers to get you fully prepared, so that you will be able to respond appropriately:

Ø Generally, shoppers like to shop without being disturbed or harrased.

Ø Shoppers who like to talk a lot and ask questions are usually those who are looking for new products and want to find out more before they make the purchase. Customers are always right and it is normal for them to bombard you with questions.

Ø Shoppers like a clean shopping environment, with a good store lay-out that will make them feel at ease and comfortable.

Ø Some shoppers just like to bargain; as annoying as it can be, do not feel offended. This can be avoided, if all your products are clearly price-tagged.

Ø Shoppers also tend to compare prices. In the event you are confronted, ensure you are able to handle this without getting into an argument with them. You might win the argument and lose the customer!

Ø Shoppers may try their luck and ask for free gifts and further discounts at the payment counter, with some even asking for the possibility of buying on credit.

Finally, providing good customer service is absolutely crucial, and if correctly executed, will bring a lot of benefits to your business. All the best to you in successfully and effectively handling your shoppers!

MANAGING COMPETITION AND SHOPPERS

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EVEN LOWER PRICESName: Wan AhmadShop Name: Pasaraya PKT Sdn BhdTown: Besut, TerengganuRM Field Supervisor: Mohd Rodi Mohd Nor

As a response to the KPDNKK campaign that encourages hypermarkets, supermarkets and provision stores to lower their prices, I conducted a month-long Price Reduction Campaign in June. Under this, a number of selected goods are sold at special prices. I also put up various point-of-sale materials such as banners, flaglines and latest price lists, in, out and around my outlet to grab shoppers’ attention towards this campaign. In a way, this is a social service to help shoppers save more so they can use their money for other important purposes.

FIND ME ON THE INTERNET Name: Goh Sau BoonShop Name: Long Bang Mini MartTown: Batu Pahat, JohorRM Field Supervisor: Ng Chin Chai

I have recently started using the Internet to help improve my business. Now, if people were to type Long Bang Mini Mart on GOOGLE MAP, they will be able to find my shop location. Through this, I am able to get new shoppers to come to my shop when they are in this area. I have also started a FACEBOOK account for my shop under this email address – longbangmm7476@hotmail.com. I use this social media to tell shoppers about my current promotions. These efforts have seen me receiving very positive feedback from my shoppers.

IMPRESSIVE TRANSFORMATIONName: Wan FatimahShop Name: Pasar Mini LynaTown: Shah Alam, SelangorRM Field Supervisor: Mohd Rodi Mohd Nor

I am so pleased to be one of the first retailers to receive help from the Government under the TUKAR (Transformasi Kedai Runcit) Programme. As most are aware, it is organised by KPDNKK and carried out by TESCO. About 95% of the assets in my shop were changed to give it a whole new look. Now almost everyone is talking about my shop! My shop is more comfortable and conducive inside out. TUKAR is definitely the better option for retailers who wish to renovate their outlets. Not only does it tell you how to, it also helps you get the loan and reduce the cost of modification.

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FANTASTIC PRIZES FOR LUCKY SHOPPERSName: SurresanShop Name: Kedai Runcit SempurnaTown: Segambut, Kuala LumpurRM Field Supervisor: Ken Wong

Who doesn’t like to try their luck, right? I for one do. Recently I ran a lucky draw contest in my shop. With every purchase of just RM50, shoppers are eligible to participate in this contest. In order to make it stand out from other similar ones, I offered irresistible prizes such as holiday packages to Chennai, Guang Dong, Phuket as well as a 32” LCD television, top loading washing machine, microwave oven and RM50 vouchers. The response was tremendous, not only did I get more shoppers to come; they were also very excited in every trip! I will definitely conduct another round of this contest in the future.

CYBER CAFÉ IN MY SHOPName: Md. Al AminShop Name: Mah Mega EnterpriseTown: Parit Buntar, PerakRM Field Supervisor: Mohd Rodi Mohd Nor

Now that the competition in business is getting harder than ever, I knew I had to find a way to diversify my source of income. Because my shop is located in a housing area, I decided to allocate a corner for computer and Internet service. This is not just a makeshift computers and desks area though, I actually renovated the corner after a thorough planning to ensure that this new service will not disturb my current retail operations. The response? Very good indeed, now my shoppers can rely on my shop to get connected to the rest of the world!

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