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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

1. PROBLEM STATEMENT

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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

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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.

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 worlds 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 12th 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

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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, Macys, who sells daily apparels

can be traced back in the early of 1858.

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.

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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

Malaysias retailing development also proved that store-based

retailing here in Malaysia achieves a better performance compared

to others.

2.1 The Statistics of Global Retailing Industry


Courtesy of Moodys Investors Service

This statistics provide detailed guidance on Moodys approach


to rate retail sector globally.

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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

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Figure 1.3 : Overall Weighting Rating Score

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.

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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 dont have to travel far in buying your daily needs

hence, saving you expenses.

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

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are being supply by the big brand are vital in order to keep

99Speedmart fully equip with all the high demand products.

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:

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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.

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

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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.

3.5 Awards

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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

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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.

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

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Figure 1 : Taken from Carrefour

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

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Figure 1 : Taken from 99Speedmart

Figure 1 : Taken from Carrefour

The price is appear to be the same which is RM13.35 per bottle


both in 99Speedmart and also Carrefour.

HUGGIES DIAPERS

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Figure 1 : Taken from 99Speedmart

Figure 1 : Taken from Carrefour

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

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.

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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

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.

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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

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.

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MYDINs 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.

Figure 7.1 Mydin Logo

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Similarity : The Company retails household groceries and food

lines.

Strength : MYDINs currently has 42 outlets nationwide

including 5 Mydin Mart

franchise and 2 Hypermarkets.

Weakness : Workers are totally outsiders (not Malaysian)

7.1.2 Econsave

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

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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.

Figure 7.2 The Econsave Logo

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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 operated by KK Supermart Holdings Sdn Bhd,

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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

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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 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

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hypermarkets/supermarkets in Malaysia with outlet size ranging

from the 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.

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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 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.

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Figure 7.6 Carrefour Logo

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

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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 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 25 th November

2009, at 99Speedmart Headquarters , Klang.

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8.2 Survey and Questionnaires Results

What is your gender?

28%

72%

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%.

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What is your age?

5% 18-23
24-29
33% 30 and above
4th Qtr
62%
Below 12
13-17

Figure 2 : Pie Chart of age

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

survey is between the age of 18-23.

Race

3%
8% 2%
Malay
Chinese
Indian
Others
87%

Figure 3 : Pie Chart of race

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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.

Marital Status?

5% 2%
Single
In Relationship
37%
56% Married
Divorced

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.

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Occupation?

2%
14%
Student
Working
Retired
Unemployed
84%

Figure 5 : Pie Chart of Occupation Status

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

Monthly Income (RM)

8% 200 and Below


6%
32% 200-800
10%
900-1500
1500-2000
More than 2000
44%

Figure 6 : Pie Chart of Monthly Income

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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.

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

6%
6% 1-3 times
3-6 times
32% 56% 6-10 times
more than 10 times

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

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%.

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Service

Distance

Product line

Environment

Items Variability

Price

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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Have you heard about 99Speedmart?

9%

Yes
No

91%

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. Ive been to Sri Kembangan, few days ago for the first time. I

think they should put more groceries and make it even

cheaper.

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


People Reviews

Web Advertisement

Radio Advertisement

Tv Commercials

Newspaper

0 10 20 30 40 50 60

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

market

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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.

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

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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 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

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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.

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

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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?

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 :

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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.

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

1.1 : Mission and Aim


1.2 : Objective

CHAPTER 2 : THE INDUSTRY

2.1 : History and Development of Retailing Industries

2.2 : Retailing in Malaysia

63
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

5.1 : Demographic

5.1 : Psychographic

CHAPTER 6 : THE COMPETITORS

30

6.1 : Direct Competitors

6.2 : Indirect Competitors

64
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

65