1) Identify a trade channel and briefly describe the channel characteristics, e.g.

hypermarket, supermarket, direct selling, convenience store, pharmacy, etc.

First, I want to have a definition of channel: A manageable group of points of purchase

(POP) that satisfy the same consumer/shopper needs or requirements.

They enable companies to better target and allocate resources in order to maximize sales.

Channels are economical ways of dividing the great universe we call retail, so that we are
still able to draw up meaningful plans and programs to create impact on targeted retail
groups.

To be effective in targeting, we need to understand the various needs of the different kinds of
shoppers. From these insights, we can form our own “commercial arguments” to satisfy
them.

And what’s the need for channels:

In an ideal world we would manage every outlet individually. However, in reality this would
not be cost effective. On the other hand, treating them all the same would not allow our
brands to reach their full potential. It would also leave us vulnerable to competition! So, we
create channels so that we can analyse and manage them in groups!

In my case, the customer (Distributor) is GCH Retail (M) Sdn Bhd. And the Distributor
Brand is Guardian, and the Channel is Pharmacy/ Health & Beauty and the supplier company
is Proctor & Gamble (M) Sdn Bhd. My specific category for this outlet is Shampoo.

2) Select the most important player (retailer/ distributor) in the trade channel – to
be provided by Course Instructor and identify its competitors, briefly describe
the business profile of the selected retailer/ distributor.

The most important retailer/ distributor in the trade channel is Guardian. Its competitors are
Watson’s, Caring, Clarins and Vitacare.
About the company profile, In 1967, Guardian was a mere 200 square feet pharmacy at the
Weld in Jalan Raja Chulan catering to the expatriate community. Today we have transformed
into the largest Pharmacy, Health and Beauty retail chain in Malaysia; offering goods and
services to more than 27 million Malaysian consumers.

Guardian's commitment to its customer's needs is reflected in the dedicated team of

pharmacists, who impart professional advice and consultation to customers. We stand
committed to our strong corporate governance, which upholds responsible dispensing. This
also brought forth an agreement with University Kebangsaan Malaysia and The International
Medical University to facilitate a community pharmacy attachment program to develop
working skills and abilities required to purse a career as a pharmacist in today's ever
changing health care environment. 
 Guardian celebrates four decades of success by making a pledge to contribute to worthy
causes. As the renown Pharmacy, Health and Beauty retail chain, Guardian is an advocate of
corporate philanthropic by giving back to the community by getting involved in the efforts
that help to provide and promote the care, development and well-being of the local
communities and supporting programs that are dedicated towards those in need namely,
women and children. Among the organizations we have help to raise funds are National
Stoke Association of Malaysia (NASAM), National Cancer foundation (Makna), PRIDE
Foundation, Women's Aid Organisation (WAO), The Malaysian Parkinson's Disease
Association, The Alzheimer's Disease Association of Malaysia and World Vision.

Our brand is truly recognized and acclaimed by our customers, thus a reminiscence of our
motto: ''The One you Trust''. We will continue to provide an extensive range of health,
beauty and pharmaceutical products and services at unrivalled prices to help Malaysians to
stay well, look good and enjoy a healthy life. Our customers have no doubt choosing
Guardian as their preferred health & beauty destination. 
 3) Where are the retail stores located in Malaysia – how many and where?
The retail stores of this Retailer (Guardian) are as follows:

Name of State Stores

JOHOR 49
Kedah 16

Kelantan 4

Kuala Lumpur 66

Melaka 9

Negeri Sembilan 10

Pahang 13

Penang 21

Perak 18

Perlis 2

Sabah 25

Sarawak 17

Selangor 112

Terengganu 6

Stores
120 112

100

80 66

60 49 Stores

40 25
21 18 17
16 13
20 9 10 6
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IRPORT

4) Does the customer have a Distribution Centre where they received all their goods
or are the goods delivered directly to their stores by suppliers?

The Customer (GCH Retail (M) Sdn Bhd) has the distribution center in SEPANG. The sore
manager of every Guardian Store, is responsible for checking the items regularly and when
an item is out of stock, he/she should send the order to the distribution center for providing
the outlet needs. Now the customer (GCH Retail (M) Sdn Bhd has only one distribution
center which is located in SEPANG, but according to Star Newspaper: “GCH Retail
Malaysia Sdn Bhd, which operates the Giant, Guardian and Cold Storage outlets, will
allocate RM225mil to build three distribution centers in three years as part of the effort to
strengthen its supply chain infrastructure.

Chief executive officer Datuk John Coyle said the company would build two distribution
centres, one in the northern region and the other in the southern region, costing RM80mil
each.”

5) Gather information on the type of shoppers in your selected category – who are
their shoppers (you need to spend some time observing and interviewing some of
the shoppers or the store managers);

Actually I went to 3 Guardian outlets, one in Bandar Sungai Long, One in Mines and another
one in Plaza Metro Kajang. But none of store managers didn’t give any information to me;
they requested an official letter from university for having photo, any kind of information or
interview with customers. In the first outlet (Kajang) the store manager even didn’t allow me
to stay in their shop! So in another outlets (Mines and Bandar Sungai Long) I was observing
there as a shopper and I asked from shopkeepers for help me to choose good shampoo and I
bought 6 shampoos from these two outlets, because I need much more time!
Guardian shoppers for shampoo products are very selective for choosing their shampoo.
Most of them are the person who notice to the quality, brand and special purpose of shampoo
(and not price of the product), this can be easily understood from the Brand of shampoos that
located in the store and the arrangement of the shelves for shampoos. The first is L’Oreal and
the last one is Head and Shoulder. Hence all the shoppers, that I have talked to them were
very satisfied from the types of shampoo and whole of the products in Guardian.

6) Type of products sold (to focus on one product category to be specified by the
Course Instructor) and how these products are merchandise in the stores;

FIRST SHELF

SHAMPOO BRAND and SHAMPOO TYPE PRICE RANGE

location in the outlet
L’OREAL ULTRA RICH
ROW 1,2 & 3 ELSEVE
NUTRI GLOSS
TOTAL REPAIR
RE-NUTRITION RM 10.88 - RM 15.88
COLOR VIVE
CARING SHAMPOO
PROTECTING SHAMPOO

SHAMPOO BRAND and SHAMPOO TYPE PRICE RANGE

location in the outlet
POLYTAR (row 4) HAIR FALL CONTROL 48.50
PREVEN (row 4) ANTI DANDRUFF 24.50
PREVEN (row 4) INTENSIVE SHAMPOO 24.50
REGAN (row 4) HAIR FALL CONTROL 32.50

SECOND SHELF

SHAMPOO BRAND and SHAMPOO TYPE PRICE RANGE

location in the outlet
L’OREAL (first row) ELSEVE RM 15.88
VO5 (second row) SILKY SMOOTH
MOISTURE
DEEP NOURISHING
RM 12.90
SHEER VITALITY
MOISTURE SOAK
SHWRZKOPF OIL NUTRITIVE
COLOR PROTECT
GLISS KUR
LIQUID SILK GLOSS
(third row) TOTAL REPAIR RM 15.90 – 16.90
HAIR REPAIR
TRESEMME RE-MOISTURING
DEEP CLEANSING
(fourth & fifth row)
LUXURIOUS MOISTURING
SALON SILK RM 23.88
COLOR REVITALISING

THIRD SHELF

SHAMPOO BRAND and SHAMPOO TYPE PRICE RANGE

location in the outlet
PANTENE (PRO-V) SMOOTH & SILKY
HAIR FALL CONTROL
(first, second & third row)
TOTAL CARE
RM 9.30 – RM 10.88
NOURISHED SHINE
ANIT DANDRUFF
GUARDIAN PRIVATE ORGANIC BROWN RICE
LABEL (fourth row) REFRESHING RM 19.90
STRENGHENING & REPAIR RM 11.88
FOLLOW ME DEEP REPAIR
SCALP CARE
(fifth row)
BLOOMING FRESH
COOL & HAPPY SCALP RM 11.90 – RM 12.90
DEEP MOIST

THIRD SHELF

SHAMPOO BRAND and SHAMPOO TYPE PRICE

location in the outlet RANGE
SUNSILK (SHAMPOO & HAIR FALL SOLUTION
CONDITIONER) CO-CREATION
STRAIGHT PERFECTION
(first row to third row) DAMAGED HAIR RECONSTRUCTION RM 7.47 –
ANTI DANDRUFF RM 11.88
LIVELY CLEAN & FRESH
REJOICE ANTI FRIZ
ANTI HAIR FALL
(fourth & fifth row)
ANTI DANDRUFF
FRUITY ANTI DANDRUFF RM 10.50-
FRUITY SMOOTH RM 13.88

FOURTH SHELF

SHAMPOO BRAND and SHAMPOO TYPE PRICE RANGE

location in the outlet
DOVE DAMAGE THERAPY
(first to third row) CLEAN & ITCH CONTROL
DAILY SHINE
RM 10.50 - RM 13.88
INTENSIVE REPAIR
STRAIGHT & SILKY
DRYNESS CARE
HAIRFALL RESCUE
HERBAL ESSENCE SILKY & STRAIGHT
ANTI BREAKAGE
(fourth & fifth row)
SMOOTH & SHINY
SMOOTH & WEIGHTY RM 12.88
SAFI SEGAR MENAWAN
KUAT BERMAYA
(part of fifth row) With one travel size
LICIN BERSERI
percuma RM 15.90
 FIFTH AND LAST SHELF

SHAMPOO BRAND and SHAMPOO TYPE PRICE RANGE

location in the outlet
HIMALAYA (first row) PROTEIN SHAMPOO RM 14.48 (with one
ANTI DANDRUFF
travel size free)
CLEAR (second row) EXTRA STRENGTH
ICE COOL MENTHOL
SMOOTH & MANAGABLE
RM 11.00 – RM 18.50
MEN ITCH CONTROL
ANTI HAIRFALL
HEAD & SHOULDERS ANTI DANDRUFF
CLASSIC CLEAN
(third & fourth row)
SMOOTH AND SILKY
CLEAN & BALANCED RM 15.88
COOL MENTHOL
ANTI HAIRFALL
SEBAMED EVERYDAY SHAMPOO
ANTI HAIRFALL
(fifth row) RM 20.80 – RM 21.50
OILY HAIR SHAMPOO

SELSUN BLUE DANDRUFF TREATMENT RM 18.50

(fifth row)

7) Type of promotions typically organized or executed in the stores;

a. For shampoo products, the promotion prices for Head & Shoulders was RM
15.88, for Pantene RM 10.88 and for Herbal Essence was RM 12.88
b. The Gift of Learning; hosted by P & G company. In this program by purchasing
any of the participating P & G brands (Herbal Essences, Gillette, Head &
Shoulders, Oral B, Pantene, Rejoice, Olay and Whisper, part of the proceeds from
the purchase will be donated to support remedial education for dyslexic students at
Persatuan Dyslexia Malaysia and then the shopper will receive an exclusive Gift
of Learning Bag with purchase of RM 48.00 and above a single receipt while
stocks last.
 c. PINK HEART CAMPAIGN. RM1 to help abused women and Children. With
buying RM 20 and above in a single receipt of Uniliever brands, get an exclusive
Pink Heart Foundation Key chain (worth RM 9.90) this RM1 will be donated to
the “Pink Heat Foundation” for Women & Aids Organization). Uniliever will also
donate RM 1 for each “Pink Heart Foundation” key chain sold.
d. Another promotion was RM 100 Gift Voucher promotion! Which is available RM
90 only. It’s available from 1-30 April 2011 and the Redemption Period is 1-31
May 2011 for saving RM 10.
e. There was also buy two free one for Guardian Private Label Shampoos.

8) Type of displays that are used to attract shoppers;

In Guardian store there were too many sign boards with the picture of beautiful ladies and
couples; with the motto of Guardian; “GUARDIAN THE ONE YOU TRUST”

In the top of shampoo product section; there was a big pink color sign board that name of
HAIR STUDIO was written with very big font. It guides shoppers who intend to
purchase shampoo product easily. On this sign board, the name of all of hair products and
shampoo has been written with different lighter pink to white color that is a good
guidance for shoppers as well.

There was a Sensomatic sign board in front of each store for attracting the shopper and
the LCD that broadcasts the movie about the health care regularly with the logo of
GUARDIAN.

9) Customer service experience that would be enjoyed by a shopper – service

policies available;
Actually there was a good satisfaction level within the shoppers in outlets that I
observed because all of the shopkeepers were very well dressed and having a smile
say welcome to shoppers and asked them whether they can help for finding the
 desired goods or not. There was a separate beauty advisor who had a different cloths
from another staff and guide the shoppers for beauty products. And all of the shoppers
had a good experience from shopping there.
In Guardian stores minimum order fulfillment should be at least 95%, if order
fulfillment is below 95%, next Monday there would be a letter that asks the
explaining about the reasons of decreasing of sales improvement.

Winning at POP (Point Of Purchase) –the first moment of truth for P&G that is the
supplier for Guardian store. And POP is the culmination of all go-to-market efforts
and the only consistently shared interface between shoppers, customers and brands
Up to 75% of purchase decisions made at the POP.

10) Layout of a typical store – product accessibility; shopper traffic flow, etc.
I. Profile the customer you have selected in terms of the 4 P’s, i.e.
1. Product or Service Offerings 3. Place
2. Price 4. Promotion

The most important factors that should be considered about the product or service
offering are:

 Product variety
The variety of product in Guardian outlets is quite acceptable, but in
comparison with another competitor, Watsons, I believe is quite weaker.
 Quality
The main focus of Guardian is customer satisfaction and Trust, and for
achieving this goal, having the good quality of shampoos is most important
factor. As it can be easily observed the first shelf for setting the shampoos has
been specified for acceptable quality brands, like O’Real.
 Design
 The design of the products are not so good, because the shampoo part in
Guardian stores or Hair Studio hasn’t good and enough space and in the last
part as well.
 Features are the things that enhance the basic function of a product.
 Brand name; the name of brand is very important for choosing the product.
In Guardian stores, Clear brand was the most popular one and I think the
name of this brand is very influent factor for shopper’s choice.
 Packaging; the physical products have to be packaged and labeled. Many
marketers have called packaging a fifth P, along with price, product, place
and promotion. Most marketers, treat packaging and labeling as an element
of product strategy. Actually well designed packages can create convenience
and promotional value. We must include packaging as a styling weapon,
specially for this product, shampoo.
 Services; the services in Guardian store is quite different with another
similar competitors like Watsons and its has almost satisfaction level among
shopper (95%)

The main factors that should be considered for Price are:

 List Price
 Discounts
 Allowances

Main influencing factors for Promotion are:

 Sale Promotion, which consist of consumer promotion (such as samples,

coupons, and premiums); trade promotion (such as advertising and display
allowances); and business and sales-force promotion.
 Advertising; has the significant role on selling products by introduction of
the company and product; if a product has new features, advertising can
explain it, and it can remind to the customers of how to use the product and
reassure them about their purchase.
 Sales force
  Public relation; include communications directed internally to employees of
the company or externally to consumers, other firms, the government and
media.
 Direct marketing, that is the use of consumer-direct channels to reach and
deliver goods and services to customers without using marketing middleman.

And important factors for Place are:

 Channels
 Coverage
 Assortments
 Locations of the Guardian store is very important factor for its sale, for
example Guardian store in Midvalley Megamall is located in very good place
so the shoppers can easily see and find their shampoo products, but
Guardian in Plaza Metro Kajang hasn’t good location for shoppers.
 Inventory
 Transport

Each company can change its price, sales force size and advertising expenditures in
the short run. It can develop new products and modify its distribution channels only
in the long run. So the firm typically makes fewer period-to-period marketing mix
changes in the short run than the number of marketing mix decision variables might
suggest.

Some additional advice regarding the 4 P’s….

How you describe the 4 P’s as the marketing strategy for the Customer to attract
shoppers is very important to show your understanding of the customer. You should
think about:-

i) How does the Customer select the type of brands in the category to
differentiate itself from its competitors? What are the brands this Customer
have that its competitors do not have? Or are they all the same?
 In Guardian store the salesperson help and assist to shoppers for finding their
desirable shampoo, they ask from shopper which aspect of shampoo is very
important for you, for example if the shopper says that hair fall or anti-dandruff,
they introduce the best and well known brand for this purpose and the shopper can
decide easily accordingly.
Guardian has two Private Label (Guardian Brand) that another competitors don’t
have it. These two shampoo products are: ORGANIC BROWN RICE
REFRESHING and Guardian STRENGHENING & REPAIR shampoo.

ii) What is the pricing strategy that the Customer is using as an overall strategy
to differentiate itself from its competitors? What is the pricing strategy for
the category? Is it above the market (premium pricing) or competitive
pricing? You need to do a price survey of the various brand in the category
in the channel (where the Customer is competing) to make some conclusions.
Geographical Pricing
Discounts/Allowances:
• Cash discount
• Quantity discount
• Functional discount
• Seasonal discount
• Allowance

Promotional Pricing:
• Loss-leader pricing
• Special-event pricing
• Cash rebates
• Low-interest financing
• Longer payment terms
• Warranties and service contracts
• Psychological discounting
 Differentiated Pricing:
• Customer-segment pricing
• Product-form pricing
• Image pricing
• Channel pricing
• Location pricing
• Time pricing
• Yield pricing

iii) Place – you need to understand why the Customer has located its stores in
certain locations such as in middle income residential areas? Or in stand –
alone locations?

iv) Compare the various types of brand (in the category) promotions in the
Customer’s stores with its competitors and observe whether such promotions
are attracting more shoppers. Is the Customer winning in terms of securing
shopper loyalty from the promotions? What is your observation and can you
explain what strategy is being used?
Based on my observation the most important factor for choosing Guardian is
quality and brand name of shampoo products not the promotions and discounts,
most of the shoppers are Guardian loyal customers and they looking for some
special brand, feature or quality of shampoo product not the promotion and prices.
Actually in comparison with Watson’s we can easily find the it has less promotion
strategies and types for attracting customers, for examples Watsons has many
different promotional programs and warehouse sales that is really attractive for
shoppers, but not for whom that look for special and high quality brand. For
 example in this kind of sales you can only find some brands for daily use like
head & shoulders, Pantene and Sunsilk.

II. Profile the type of shoppers who shop in the stores (Retailer/ Distributor) you
have selected, based on your selected category?
 Shoppers who are looking for a shampoo with special feature; like Polytar
 Shoppers who are looking for a well know brand like O’Real
 Shoppers who are looking for good quality of a shampoo like Clear
 Shoppers who are looking for shampoo brand image and their loyalty to
the brand like Head & Shoulders and Pantene
 Shoppers who are price sensitive and look for cheaper and good one like
Sunsilk and Safi