MMI3033 | DESIGN PROJECT

MEDIA INNOVATION

DELTA 2009/2010

SITUATION ANALYSIS

BRAND : 99SPEEDMART®

Mohamad Azri bin Haji Ahmad (1061108397)

Amir Majdi b. Kassim

CHAPTER 1

Problem Statement

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1. PROBLEM STATEMENT

Retail store is a place where almost everyone got their own need by going

there and purchase the things that they wanted to, regardless of age and which

background that they came from, retail store is surely one of the places that they

will surely go to in buying their personal needs. 99Speedmart® is one of the

retail store that is up and running in Malaysia. Not many Malaysian knows about

99Speedmart® that offers far cheaper price compared to any other retail stores

in Malaysia. Furthermore, 99Speedmart® is also a brand that can be consider

young compared to any other brand in Malaysia. With limited stock of product

line and also small stores, the chances of people going there are limited

compared to bigger retail stores. In addition, it still does not have many outlets

through out Malaysia.

This situation analysis will then be focus on how to make the best

approach to the audience out there by telling them the existent of

99Speedmart® and the special things about the brand, or in other word to

maximize the advertising on the brand. At the same time, it will also help in

boosting the sales of 99Speedmart® as being one of Malaysian based retail store.

The studies will also be include the solving of issues, background research,

methodology on how the research is being conducted, studies on the

competitors, SWOT analysis and in the end, the solution.

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1.1 Mission and Aim

To study on the market situation of 99Speedmart® retail store plus to come out

with the best strategic approach related to advertising and promotion of

99Speedmart®.

1.2 Objective

i. To study the growth and issues related to retail store industry.

ii. To analyze the target audience and the relation between them and

99Speedmart®.

iii. To understand the competitors of 99Speedmart®.

iv. To learn and understand the brand of 99Speedmart®.

v. To come with solution that helps in promoting 99Speedmart®

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CHAPTER 2

The Industry

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2 THE INDUSTRY

2.1 History and Development of Retailing Industries

The history of retailing begins even in the early age of civilizations where

groups began to trade with one another. The origin of this kind of act by human

civilization in formally unknown but a lot of research on it has been made and

assumptions and explanations had been given.

If we go back in time, in the ancient world of retailing are mostly consist

of trading goods with one another. In example, a person trades his goat with

someone in order to get a bag of rice. This will then soon act as a tradition where

people start to do this as their daily activities. The earliest traders as known by

the history were Cretans Traders. Cretans are known for their skills and their

willingness to sail far across the world, bringing some trading goods so that they

can trade it with other civilizations from another part of the world. They

flourished for 2000 years, their Golden Age and their culture influenced other

great trading civilization within that particular of time.

More in the early stage of retailing, Phoenicians are also famous for their

trading skills. They created a rich sea-trading empire which spanned the world

that we known today. Within that particular time, they were famous for having

lots of trading ship that sailed across the world full with goods. Same as The

Cretans, the also managed to achieve their Golden Age for having great benefits

from trading that they have done.

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Furthermore in the history of retailing, from the Cretans to Phoenicians,

then came the Roman empires. The Romans are also known for their huge

success in the history of retailing. Romans are the on who established a

sophisticated form of retailing that are being used till today. They are the one

who start opening small shops within the multiple areas of their small city area,

so that people can easily get reach of their personal needs from the small yet

convenient retailers. In addition, history of the ancient ruins also indicates that

the world’s first department store was in Rome. But unfortunately, with the fall

of this empire, the development of retailing is buried, temporarily.

After the fallen of the Roman Empires, in the 12 th century artisan and

tradesman form an organization in ‘guilds’ and begins to open small shops.

‘Guilds’ are known to part of the important of a city and town life. They are the

one who helped in gaining the social and economic advantages in a civilization.

In addition, ‘Guilds’ are also something similar to a brotherhood that helps each

other from the political viewpoint in managing the way of retailing that has

survived and still maintaining the world economy until today.

Furthermore, in America, American Retailing institutions originated after

1850. By that time, general stores are the only retailer that is available. This is

because during that particular of time mostly Americans lived on farms and were

sufficient. So there were no big retailing stores were build within that particular

of time. After the year of 1850, the economy are more stabilized and that were

the time where bigger retail store were open. In example, Richs is one of the

early retailing stores that were established in Atlanta back in 1867. In addition,

Macy’s, who sells daily apparels can be traced back in the early of 1858.

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2.1 Retailing in Malaysia

History of retailing in Malaysia is not much different compared the one

known from the history. It begins with trading between peoples, small shops

were open later on to fulfilled the need of people and later came the huge retail

stores in the major cities in Malaysia. Here, international retailers play an

important role in strengthening the economy of Malaysia. The competitive

landscape in retailing in Malaysia remains highly fragmented, with the presence

of small and independent players spread out across the country. In example, The

Store Corp Bhd and Parkson Corp Sdn Bhd is some of the early retailers here in

Malaysia.

In 2008, retailing grows steadily even when the economy were affected

by the global economy slowing down. Within that particular time, the increased

of urbanization lead to more retail stores were opened and this time they are

more focused on the urban area, where the consumer are near to it so that it will

be more convenient for the consumer to go and buy their personal needs. The

insight on Malaysia’s retailing development also proved that store-based

retailing here in Malaysia achieves a better performance compared to others.

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2.1 The Statistics of Global Retailing Industry

Courtesy of Moody’s Investors Service

This statistics provide detailed guidance on Moody’s approach to rate retail sector globally.

Figure 1 : A bar graph indicates on Global Retail Issuer

Figure 1.1 : Final Weighting Rating Scale

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Figure 1.1 : Global Retail Industry Ratings – Selected Benchmark Retail Issuers

Figure 1.2 : Weighting Factors and Rating Scores

Figure 1.3 : Overall Weighting Rating Score

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Figure 1.4 : Rating Grid Mapping

Figure 1.5 : Observations and Outliers

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CHAPTER 3

The Company

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3 THE COMPANY

3.1 Introduction

Figure 1 : Market Segmentation of 99Speedmart®

As shown above is the market segmentation for 99Speedmart®.

99Speedmart® is under the category of retail store that has been establish many

years ago. At the same time, being in a category of mini market, 99Speedmart has

many outlets in the area of Klang Valley and also the federal territory of Kuala

Lumpur. In addition, this company is a single ownership company. It means that

it is own by a single owner, which is Lee Thiam Wah, The CEO of 99Speedmart®.

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3.2 The History

Back in time in the year of 1987, 99Speedmart® was known as ‘Kedai

Runcit Hiap Hee’. It was open in residential area, which is in the area of Jln. Tepi

Sg. Selangor so that many people around that area can easily go there and buy

their personal needs. Lee Thiam Wah, The CEO of 99Speedmart® sees that,

opportunity in going further in retailing business is there. Hence, he keep on

going enlarging his small mini markets so that more product can get in and

consumers can have a variety of selection on the product line.

In 1992, the know ‘Kedai Runcit Hiap Hee’ changes their name to ’99 Mini

Market’ in the area of Klang, Utama. This is the beginning of revolutionary steps

of this company because during this particular time, this company is starting to

get peak in sales. More to it, this company are slowly starting to change the way

it look, the way of managing the company and even to the little, they have air

conditioner applied in the outlets. This will is not only a step of trying to lure the

customer to their mini market hence to give the consumer the feeling of

comfortable while doing a little grocery shopping at their mini market.

In the year of 2000, the name ‘99Speedmart’, registered company came

true as this company yet steps into improvising their company background and

style. As time goes on, they have already open 164 outlets through out the Klang

Valley with their slogan ‘Near ‘n’ Save’. This slogan basically means that,

99Speedmart® is near and you don’t have to travel far in buying your daily

needs hence, saving you expenses.

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3.3 Product Brand Involves

Here is some of the product brand are being sell in 99Speedmart®

All the above is some of the company that are selling their product in the store of

99Speedmart®. As a mini market, daily needs that are being supply by the big

brand are vital in order to keep 99Speedmart® fully equip with all the high

demand products.

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3.4 Operation

99Speedmart® are open from 10am and closed in 10pm in the evening.

The outlets of 99Speedmart® are equip with staff that can handle the outlets and

served as to fulfill their customers need. For you information, each outlets are

equip branch manager, storekeeper, cashier and also cleaner.

As for the supply of the product, 99Speedmart® practice the culture of

cutting cost as much as they can in order to get the cheapest offered price for

consumers. Below is a figure of how they supply their product to each outlet:

Figure 1 : Supply Chain

Referred to the figure above, why do 99Speedmart® have this kind of ways in

distributing the supply to all of its outlets is because by doing so, it helps in

reducing the logistic cost. This is because, if the supplier supplied all the product

to every outlets, the cost of logistic will be increased.

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More from figure as shown above, another reason in cutting the cost is by

having a warehouse. In business, buying products in bulk is cheaper compared

buying in small quantity. According to Mr. Yong, Trainer of 99Speedmart®, he

said with warehouse you can buy product in bulk and at the same time you can

discount price from the supplier. Hence, they only need to pay a single logistic

trip, which is from the supplier to the warehouse to the supplier instead of

paying the logistic trip to all outlets. If that happens, it will be costly.

Furthermore, 99Speedmart® is having 3500 store keep unit (SKU),

compared to other store for example 7 Eleven, they have only 1500SKU in every

outlets. This means that in every outlets of 99Speedmart® there are over 3500

products being sold in range of groceries to drinks and even basic wear like

slippers.

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3.5 Awards

Figure 1 : Awards that has been won

As shown above, 99Speedmart® is an awards winning mini market.

99Speedmart® has won ‘Brand Impact Award’ in the year of 2008 and also “Best

Mini Market Award” in the year of 2009. The awards was given by Kementerian

Perdagangan Dalam Negeri (KPDN) for their successful year in being the best

mini market among them all in the same category. With both of this awards, it

shows that 99Speedmart® is already far ahead in being the best mini market in

Malaysia.

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3.6 Organization Chart

Figure 1 : The Organization of the Company

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3.6 Financial Matters

Financial matter for each and every company is always private and confidential

matter. As for this section, in order to respect 99Speedmart®, only the overview of

the financial matter will be shown.

99Speedmart® is among the fastest growing mini market in

Malaysia. Over 164 outlets are open up until today and more will be up later.

According to one of the staff of 99Speedmart®, cost that they need to spend in

setting a new outlets is over RM200k and this only the applied to the appearance

of the outlets, or in other products are not included. If product is counted in with

the cost of setting up a new outlets, the total for an outlet would be RM500k.

More on financial matters, the income from every outlet can reach

up to RM450k monthly. So, annually every outlet will get income over RM5.4mil.

But after all, this is not the amount that 99Speedmart® as their income. This is

because, 99Speedmart still need to pay the suppliers, logistic and others.

According to the staff of 99Speedmart®, they will only get roughly around 6%-

7% of income in every money they gain.

In Addition, 99Speedmart® make sure the customer are being put

first in every way they can. So, by following this rule and by getting the low

reselling price, 99Speedmart had to reduce the money that they have allocate for

advertising in order to be use in any other section. So this is the lead factor that

99Speedmart® are far less being known by people because there were no

advertisement are made to promote the company. As this happened, they are

more depending on the consumers to spread the news to other consumers.

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3.7 PRODUCT LIFECYCLE

Figure 1 : The Product Lifecycle

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CHAPTER 4

Product Comparison

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4 PRODUCT COMPARISON

In this chapter is the overview of product comparison.

MILO

Figure 1 : Taken from 99Speedmart®

Figure 1 : Taken from Carrefour

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The one that was taken from 99Speedmart are sold for RM23.99 compared to

the are being sold in Carrefour which is RM24.90, plus this is the season where

Carrefour are on sales but still 99Speedmart® are way cheaper.

MINYAK CAP BURUH

Figure 1 : Taken from 99Speedmart®

Figure 1 : Taken from Carrefour

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The price is appear to be the same which is RM13.35 per bottle both in 99Speedmart® and also Carrefour.

HUGGIES DIAPERS

Figure 1 : Taken from 99Speedmart®

Figure 1 : Taken from Carrefour

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Here certainly 99Speedmart® offers the consumer far lower price compared to

one that are being sold in Carrefour. 99Speedmart® are selling for RM35.99 but

as for Carrefour, they are selling it for RM39.90, and that is almost RM5 extra.

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CHAPTER 5

Consumer and Target Audience

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5 CONSUMER AND TARGET AUDIENCE

99Speedmart® target audience is basically a residential area. According to Mr.

Yong, Trainer in 99Speedmart® says that why are they targeting on residential

areas is because it is easy for the consumers. At the same time, it is also

significant with their slogan which is ‘Near ‘n’ Save’.

With this technique of doing a business, consumer got the full benefits

when the went to 99Speedmart. Near, cheap in price, less congested, great

environment is among the factor why consumers would love to go to

99Speedmart®.

5.1 Demographic

Age : 25-35

Gender : Both male and female

Ethnicity : All

Education level : All

Allowance : Less than RM1500

Geographical Location : Urban and Sub-urban

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5.2 Psyhcographic

Personality : Serious, caring, well-behaved, perfectionist

Attitude : determined, focus, calm

Lifestyle : Standard society who care about the flow of their money especially in

buying their daily needs.

Perception : To take life as a serious matter and they believe that lacking control

of cash flow is not good at all. In addition, they also care about the quality of a

product that they spend the money on.

Learning : A society that is easily influenced by friends, media or trend. Family

members can also be one of the factor.

Motivation and needs : The need in going through their daily lifestyle with all the

items that they needs in order to go through their normal daily life.

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CHAPTER 6

The Competitors

6.0 THE COMPETITORS

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6.1 Direct competitors

6.1.1 My Mydin

The business started in the East Coast in 1956 and since then, the business has

expanded to other states as well as to the capital, Kuala Lumpur in 1989 when

Dato’ Ameer Ali bin Mydin started a new outlet at Jalan Masjid India, Kuala

Lumpur.

MYDIN’s currently has 42 outlets nationwide including 5 Mydin Mart franchise

and 2 Hypermarkets. The stores are located all over the Klang Valley,

Terengganu, Kota Bharu, Seremban, Nilai, Johor, Alor Setar, Melaka, Penang,

Pahang and Kelantan. The 2 Hypermarkets are located at USJ, Subang Jaya and

Kuala Terengganu.

MYDIN has a strategic advantage over retailers as it sources directly from the

manufacturers and purchases in bulk which enables them to get special

discounts from the manufacturers, thus rendering it possible to fulfill its

business philosophy of selling to its customers at wholesale prices. Its customers

include end-users, wholesalers and petty traders. MYDIN sources its

merchandise both locally and from other countries including Bangladesh, China,

France, Hong Kong, India, Indonesia, Korea, Pakistan, Singapore, Taiwan,

Thailand, Turkey, United Arab Emirates and United Kingdom.

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Figure 7.1 Mydin Logo

Similarity : The Company retails household groceries and food lines.

Strength : MYDIN’s currently has 42 outlets nationwide including 5 Mydin

Mart

franchise and 2 Hypermarkets.

Weakness : Workers are totally outsiders (not Malaysian)

7.1.2 Econsave

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The history of Econsave began from a wooden sundry shop in Port Klang more

than 50 years ago. Through years of hard work and perseverance, adapting

constantly to the changes in the retail scene, Econsave has emerged as one of the

largest retailers in Malaysia

In the home state of Selangor, Econsave has the largest and most extensive

network of branches in all the main towns in Selangor, unmatched by any other

supermarket / hypermarket operators. Working hand in hand with Econsave

means that your products will potentially reach the four million consumers in

Selangor, one of the most affluent segments of the Malaysian population. In

addition, Econsave has a strong presence nationwide and is constantly looking

for new opportunities in Malaysia.

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Figure 7.2 The Econsave Logo

Similarity : The Company also retail household groceries and food lines.

Strength : The largest and most extensive network of branches.

Weakness : Hard to find the things as the store is too big and it is not in a good

arrangement.

7.1.3 KK supermart

KK Supermart in 2001 with an initial capital of RM60, 000 to rent a shoplot in

Kuchai Entrepreneurs’ Park and purchase computers and products. Owned and

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operated by KK Supermart Holdings Sdn Bhd, the chain currently comprises 35

outlets, of which one is in Kuching and the rest in the Klang Valley and Selangor.

Recession or not, people are still buying their daily necessities, says founder and

CEO Datuk Dr Douglas K.K. Chai, who also attributes it to the location of the

outlets in housing areas as shoppers need not travel far to buy what they need on

a daily basis.

It is a 24-hours mini-supermarket chain venture abroad on domestic front which

planned to expand the chain to the potential markets like Myanmar, Bangladesh

and India due to huge population.

Figure 7.3 KK supermart Logo

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Similarity : The Company also retail household groceries and food lines.

Strength : There are many outlets within the area so everyone can go

and shop

there.

Weakness : Expensive than the other supermarket.

7.2 Indirect competitors

7.2.1 7-Eleven

7-Eleven® Malaysia Sdn. Bhd. is the owner and operator of all 7-Eleven® outlets

in Malaysia. It is the pioneer and largest 24-hour convenience store operator in

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Malaysia. Incorporated on June 4, 1984, 7-Eleven® Malaysia has made its mark

in the retailing scene and have been a prominent icon for over 20 years.

Each of the stores carries over 2500 products, including its proprietary Slurpee®

and Big Gulp®. It offers diversified products and merchandise ranging from

fresh food; household needs to mobile phone reload cards. 7-Eleven® stores also

provide a variety of services, from photo copying to fax and even courier

services. With over 1000 stores, it still have on-going plans to expand its network

of stores nationwide to reach out to more customers while continuously

introducing new and innovative products and services to meet the customers’

requirements.

Figure 7.4 7-Eleven Logo

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Difference : They open their stores 24 hours and the product lines mostly

in lower volume and focusing high profit to cover their

operation of 24 hours.

7.2.2 Giant Hypermarket

The Giant store brand was founded by the Teng family as a simple grocery store

in one of the suburbs of Kuala Lumpur in 1944. Its mission was to offer a wide

variety of food products at the lowest possible prices. As its reputation grew, so

did its business.

Dairy Farm, which acquired Giant in 1999, recognized that the key to Giant's

success had been its ability to continuously offer value for money products. It

retained this core principle even as it began transforming Giant into a national

and international brand.

In 1999, the first Giant Hypermarket store opened in Shah Alam, Selangor. By

2006, the company had grown to operate a total of 86

hypermarkets/supermarkets in Malaysia with outlet size ranging from the

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350,000 sq ft (33,000 m2) hypermarket in Shah Alam to the 11,000 sq ft (1,000

m2) supermarket in Bangsar, Kuala Lumpur. The chain also includes 6 stores in

Singapore and 17 hypermarkets in Indonesia. Giant hypermarkets offer a wide

range of local merchandise, such as fresh local fruits, vegetables, and seafood

within a wet market environment.

On March 22, 2008, the first Giant Hypermarket in Brunei Darussalam was

opened on Gadong A, Brunei-Muara.

Figure 7.5 Giant Logo

Difference : They run their own franchise hyper market and their

product lines are in high volume, using many man powers to

handle the big stores, and also focusing high profit to cover

the electricity, man powers and store rent.

7.2.3 Carrefour

The number one retailer in Europe and the second-largest retailer in the world.

In Malaysia, Carrefour is a leading hypermarket chain selling a wide range of

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household grocery products ranging from frozen goods and fresh products to

textiles, garments and shoes, as well as electrical goods such as home kitchen

items and audio-visual appliances. Carrefour is widely recognized as a

convenient one-stop shopping centre that caters to a mix of consumers from

housewives to students and working professionals.

It respects its customers' freedom of choice through the variety of its store

formats and the diversity of the products and brands they sell. It further

enhances this freedom by providing thorough objective information. In addition,

it gives consumers the freedom to buy at prices consistent with their purchasing

power. It also provides the largest possible number of people with the

opportunity to purchase consumer goods. Furthermore, it empowers our

employees to take initiative and give them the freedom to act as entrepreneurs.

Figure 7.6 Carrefour Logo

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Difference : Wide chain hyper market selling wide range of household

products in high volume, with high man power so they target

high profits to cover man powers costs, electricity and r

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CHAPTER 8

Research Finding

8 RESEARCH FINDING

8.1 Methodology

For this research, surveys, questionnaires and interviews related to the

topic , which is 99Speedmart® has been conducted in other to get finding of the

research. As for the surveys and questionnaires, Google Docs has been used in

order to create the online surveys form (http://99speedmartsurvey.tk) and

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distribute it to target audience. With this, they can easily get access to it and do

the survey easily and shortly.

Another method in research finding is with the method of interviewing

consumers who visit 99Speedmart®. We documented the short and interview

session with the consumer with video camera in order to fulfill the requirement

in getting the result. This interviewing session happens at one of the outlets store

of 99Speedmart®. In addition, we also interviewed one of the staff of

99Speedmart®, Mr. Yeong (pangkat) and it was on 25th November 2009, at

99Speedmart® Headquarters , Klang.

8.2 Survey and Questionnaires Results

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72%

28%

What is your gender?

Male Female

Figure 1 : Pie Chart of gender

From the chart is shows that almost 72% of males answered the survey

compared to female which is only 28%.

62%

33%

5%

What is your age?

18-2324-2930 and aboveBelow 1213-17

Figure 2 : Pie Chart of age

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From the pie chart above, it show that 62% who answered this survey is

between the age of 18-23.

87%

8%

2% 3%

Race

MalayChineseIndianOthers

Figure 3 : Pie Chart of race

From the pie chart above, it shows that 87% of Malays who answered this

survey compared to others which is 8% for Chinese, 2% of Indian and 3% for

others.

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56%

37%

5% 2%

Marital Status?

SingleIn RelationshipMarriedDivorced

Figure 4 : Pie Chart of Marital Status

Figure 4 shows that most of the most of the people who answered the survey is

single, 56% and 37% in a relationship, 5% married and 2% divorced.

84%

14% 2%

Occupation?

StudentWorkingRetiredUnemployed

Figure 5 : Pie Chart of Occupation Status

84% who answered this survey is student and followed by others

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32%

44%

10%

6%8%

Monthly Income (RM)

200 and Below200-800900-15001500-2000More than 2000

Figure 6 : Pie Chart of Monthly Income

From the pie chart above, it shows that 44% 200-800 in monthly income

answered this survey and followed by 32%, 200 and below of monthly income.

56%32%

6%6%

How many times per week you went to a mini market?

1-3 times3-6 times6-10 timesmore than 10 times

Figure 7 : Pie Chart of trips per week went to mini market

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From the pie chart above, almost 56% went 1-3 times to a mini market, followed

by 3-6 times per weeks that is only 32%.

Price

Items Variability

Environment

Product line

Distance

Service

0 10 20 30 40 50 60

Figure 8 : bar Graph of what are the thing that people consider in going to a mini

market

As shown in the bar graph above, near to 50 people who answered this survey

said that price is the most important thing that they consider in going to a mini

market. Followed items variability and also the distance that they need to travel

in order to get there.

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91%

9%

Have you heard about 99Speedmart®?

YesNo

Figure 9 : Pie Chart of have they heard about 99Speedmart®?

The pie chart above shows that almost 91% of people who answered this survey

knows about 99Speedmart®, compared to 9% who have no clue of what

99Speedmart® is.

What they think about 99Speedmart®?

Here is the top 3 answers of good response and bad response from the people

who did this survey.

Top 3 Good Response :

1. ‘The service quite slow but the items at the mart quite cheap & variety.

For me it more convenient plus it more nearer to my house. so it much

easily for me to buy groceries items. Keep it up!!’

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2. “Variability items in one mini market, save time & cost. affordable price.”

3. “Some items are price cheaper than other places and you don't need to

buy certain items in bulk to get a cheaper price.”

Top 3 Bad Response :

1. “Only went in once...the vegetables all not fresh, dah busuk...very messy

and a bit rundown.”

2. “I don't really like the ambience of the store.”

3. “I’ve been to Sri Kembangan, few days ago for the first time. I think they

should put more groceries and make it even cheaper.”

Newspaper

Tv Commercials

Radio Advertisement

Web Advertisement

People Reviews

0 10 20 30 40 50 60

In what way do you know about a good mini market?

Figure 10 : Graph Bar of ways people know about a good mini market

From the graph bar above, it shows that more than 50 people who did this

survey agree that by people reviews is the way for them to know about a good

mini market, followed by Newspaper that falls in the 2nd place.

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8.3 An Interview with a Staff of 99Speedmart®

Figure 1 : Mr. Yong Eng Kwang, Training Manager, 99Speedmart®

Mr. Yong Eng Kwang is one of the staff in the headquarters of

99Speedmart®. He is the one who trained new comers of the company in

example the new staffs so that he will exposed them with what 99Speedmart® is

all about.

An interview session with Mr. Yong lasted about an hour and a half in a

meeting room of the headquarters of 99Speedmart®. There are a lot of things

that we talked and one of the most important thing is the background of

99Speedmart®. More to this, he spend his time telling us the origins of

99Speedmart® from being a single shops until what we have known today with

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many outlets that scattered all over Klang Valley and also within the federal

territory of Kuala Lumpur.

Furthermore, we also did interviewed him regarding the cheap price that

they offered in all of their outlets in order to get more audience to come to their

store and buy their product line. He said that, “buying in bulk always help in

reducing the price”. This is the method that are being used by 99Speedmart®,

they bought products from supplier in bulk and store it in their warehouse and

at the same time they are the one who distribute all the products to each outlets.

Hence, save a sum of money in area of logistic.

As from us, we appreciate the time and the information that he gave us

during the interview session plus we would also love to say thank you to

99Speedmart® in a whole for having us there with them. It was a great

experience in knowing how 99Speedmart® works in delivering good service to

their target customers.

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8.4 Interview with the visitors of 99Speedmart®

Figure 1 : Visitors of 99Speedmart®

Here are the samples of questions that were asked :

1. How many times per week did you go to 99Speedmart®?

2. What are the things that brings you to 99Speedmart®?

3. How do you know about 99Speedmart®?

4. What are the things that you normally bought here in 99Speedmart®?

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Question 1 :

Most of the consumer that has been interviewed by us said that weekly

they went to 99Speedmart® almost 3 to 4 times. Mostly they will spend around

30 minutes in order for them to search the product that they wanted and to

make a purchase on certain products. In addition, they also said that the key

factor on how many times of them coming to 99Speedmart® is mainly depends

on the product. In example, if the quantity of rice in their home almost depleted,

they will then make their way to 99Speedmart® to make a purchase on more

rice, so that they will have a sufficient amount of rice supply in their home.

Questions 2 :

From the interview session that we did with the visitors of

99Speedmart®, the things that lured them in coming to 99Speedmart® are

mostly because of the price. As well all know, budget is the most important thing

in buying daily needs. Without the proper planning of budget, it could be

troublesome for people who are getting low income monthly. Furthermore,

99Speedmart® provide far lower price compared to their competitors. This is

due to the buying in bulk system that is implemented as we were told by Mr.

Yong. Other reasons for that brings them to 99Speedmart® are the environment

of the outlets itself. On shelves product that are being arranged accordingly is

also one of the factors. It somehow create the easy feeling for customers to come

to 99Speedmart® and make a purchase on the items that they need.

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Question 3 :

From the interview session that has been done on the visitor of

99Speedmart®, mostly they knew about 99Speedmart® is through mouth to

mouth basis. This means that words of people talking about the benefits in

buying from 99Speedmarts® are spread from a person to another person via

talking with each other.

Question 4 :

There are lots of products available in 99Speedmart®. The most bought

things and also the reason for them to visit 99Speedmart® again the basic

household items. In example rice, baby milk, diapers, detergent and others. This

is some of the most bought items in 99Speedmart®. They said that compared to

any other mini markets or hypermarkets, all the items that they normally bought

are appeared to be expensive. Hence, 99Speedmart® is the place that they have

choose in order to buy their basic daily needs.

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8.5 Interview with the outlet staff of 99Speedmart®

Figure 1 : Outlet staff of 99Speedmart®

As shown in the picture above is Mr. Chee, he is the storekeeper of

99Speedmart® outlet based in Puchong Perdana. His age is 33 and as one of the

staff of 99Speedmart®, he himself prefer to buy his daily needs here at

99Speedmart®. Below is some of the question that were asked during the

interview session :

1. When is the peak time where 99Speedmart® are filled with customers?

2. Tell us a brief detail of you in becoming one of 99Speedmart®.

3. What are the most bought items here in 99Speedmart®?

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The Answers

Question 1 :

According to Mr. Chee, in his experience working in one of the outlets of

99Speedmart®, he knows when is the peak time of 99Speedmart® outlets that

will be filled with customers. According to him, times after working hours is the

most filled time for 99Speedmart® outlets. Add on to that, he said that it is

normal because after office hour, between 5pm to 7pm customers will be back

from work and on the way back before the reached their home, they can straight

away go to 99Speedmart® and make a purchase on the item that they need.

After that, their customers can continue their journey back home with all the

items that they need.

Question 2 :

Mr. Chee has been working with 99Speedmart® for months. According to

him, 99Speedmart® is a good place to do a part-time job. This is because

99Speedmart® had never encountered any problems even of the economy is in a

slummed. More from him, it is a good place for youngsters who having problem

in searching for job since the company, 99Speedmart® are focused on getting

local manpower for all their outlets.

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Question 3 :

After months of experience in handling customers who visits

99Speedmart®, Mr. Chee said that items that are normally bought by customers

is basically the daily used items such as diapers, milk, cigarettes and rice. All this

items are sold with cheaper price compared to their competitors. He believe that

is the major factor that lead customers made a purchase on such items.

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TABLE OF CONTENT

CHAPTER 1 : PROBLEM STATEMENT 2

1.1 : Mission and Aim

1.2 : Objective

CHAPTER 2 : THE INDUSTRY 5

2.1 : History and Development of Retailing Industries

2.2 : Retailing in Malaysia

2.3 : The Statistic of Global Retailing Industry

CHAPTER 3 : THE COMPANY 12

3.1 : Introduction

3.2 : The History

3.3 : Product Brand Involves

3.4 :Operation

3.5 : Awards

3.6 : Organizations Chart

3.7 : Financial Matters

3.8 : Product life Cycle

CHAPTER 4 : PRODUCT COMPARISON 22

CHAPTER 5 : CONSUMER AND TARGET AUDIENCE 27

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5.1 : Demographic

5.1 : Psychographic

CHAPTER 6 : THE COMPETITORS 30

6.1 : Direct Competitors

6.2 : Indirect Competitors

CHAPTER 7 : RESEARCH FINDING 42

7.1 : Methodology

7.2 : Survey and Questionnaires Result

7.3 : An interview with a staff of 99Speedmart®

7.4 : Interview with the visitors of 99Speedmart®

7.5 : Interview with the staff outlets of 99Speedmart®

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