BTMT 2083: Retails and Franchise Management

ASSIGNMENT 2 : Retailing

PREPARED FOR: EN KAMARUDIN BIN ABU BAKAR

Name Matric No.
LOOI KAH HONG B061510103
LAM JOA ANN B061510052
JOANNE TAN B061510022
WAI KAI XUAN B061510060
LEE CHENG CHEN B061510332
Who is the retailers target market and why?
 Age from 7 to 50 (include all different category of customer)
 Different design will satisfy needs for different customers,
enlarge customer base, increase opportunity and profit
How the retailers satisfied the needs of the target
market?

• 8 unique brands to satisfy the needs of different

target market
• Every brand represents a fashion philosophy, each
philosophy involve an extensive range of products.
How the retailers built a competitive advantage over their rivals?

 Management’s ability to analyze fashion trends, react quickly to changes in

consumer tastes
 Brand image : real value; quality, functionality and price
 Continued focus on the middle-income market with affordable price

How effective are the retail strategies used?

1. A wide range in style and pricing of the brands

Product arranged according to different brand and category
Cater large amount of target market , products suitable for all age
groups

2. Return and exchange policy

Enhance customer experience & satisfaction, increase profit over the
long term

3. Online shopping and free shipping services above RM120

Expand online business, target more customer, more opportunity

4. Different promotional strategy: Super Price, Special Price and Promo Price
Attract customers and increase customer purchase intention
Who is the retailers target market and why?
 Middle class women, 18-40 years old.
 Own consumption ability, more willing to invest themselves
 Health and beauty is growing fast in Malaysia

How the retailers satisfied the needs of the target market?

1. Stores are divided into different sales areas, different
categories of goods
 Placed neatly for selection, more convenience, customer
get their product easily
2. Wide range of choices : cosmetic, supplement, facial/ hair/
oral care, body wash, home care and others
 Satisfy most of customers need and wants from head to
toe, in only 1 store
3. Create Own brand
 More than 1200 kinds of health and skin care product
 Customer have more choices
 Offer more affordable and quality product
How the retailers built a competitive advantage over their
rivals?

1. VIP loyalty card with Touch & Go aspect

- Members enjoy more benefits & convenience
- Ex: points can exchange for price discount
- Value creation and gain retention

2. FOC pharmacy services/ professional guidance

- Strong team of advisers, subject to professional training
- Boost up customer’s welfare and wellbeing
- Extra value for customer and attract more loyal customers

3. Developed Watson Mobile Apps

- Consumer spends a lot of time on their phone
- Provide up-to-date information
- Convenience
- Boost online sales
How effective are the retail strategies used?

1. PWP / Partner with Touch and Go Apps

- Increase business opportunity
- Encourage consumer spend more
- Boost sales, reduce inventory stock

2. Update/ Bring in NEW products

- Continuous improve customer satisfaction
- Ex : Bring in Olay MagneMasks Infusion, Lux Botanifique ….

3. Decorated with creative POSM

- Ex: Hangsell, standee, shelf-talkers, wobblers and others
- More product information to customer
- Gain attention. convince customer with attractive contest

4. Different sales promotion for different season/ week

- Consumer are price orientated
- Bring in more business opportunity, boost sales for short term

5. Two distribution channels : stores and online

- E-comes sales growing due to consumers’ busy lifestyle
- Process and consumption of buying are simple
- Enjoy more benefits through online to boost online sales
Who is the retailers target market and why?
 Beauty and health conscious of women
 Growing levels of awareness over health and social issues
 Trendy brand, natural ingredients and innovative products
 Fair trade, social and environmental benefits

How the retailers satisfied the needs of the target market?

1. A wide range of products, different prices to target different
customers
-E.g. skin/ hair/ body care, make up, and fragrance.
2. Naturally made and environmentally friendly products
-100% vegetarian, 0% animal-derived ingredients
-Clinically proven for sensitive skin
How the retailers built a competitive advantage over their
rivals?

Green products
• successfully combined their green sense with products – one of
their main selling point
• Customer willing to spend more for natural products, especially
those who suffer sensitive skin

Green distribution strategy

• Green packaging and reduce waste & reduced environmental
costs
• E.g. Users return empty bottles and get RM1 off for next
purchase – enhance customer loyalty, enhance their next
purchase opportunity

Protect our planet

• Encourage in raising fund for the charitable organisations
supported in protecting environment
• E.g: Working with Wildlife Conservation Society-Malaysia (WCS-
MY)
• Build good brand image, customer preferred choices
How effective are the retail strategies used?

Luxurious and comfortable store decoration

• Message “ 100% Vegetarian” was shown in front of the store
• Attract customer to visit, natural ingredient suitable for everyone

Provide free consultancies service & excellent customer services

• Ex: Prepared a skin testing bar to customer
• Enhance customer experience, suggest best solution for them

Provide higher visibility for new product with attractive POSM

• Ex: Located at the centre of retail store
• Convey product superiority to customer
• Encourage trial

Sales and promotions

• Provide different promotional strategy (eg: free samples, price
reduction etc.)
• Download mobile app to get 20% discount

Loyalty Card & Gift packing service

• Build & enhance customer relationship and develop value