Marketing plan for 99 Speedmart: MBA class - AABGS,UiTM

1. STRATEGIC
MARKETING PLAN
Company: 99 Speedmart Sdn Bhd
Team Members (AA7012B)
Amiza Lina Nawari (2016231812)
Khairuddin Naim Mohd Zain (2016342915)
Mohd Rosnizam Zailan (2015470534)
Nurul Azrina Rusni (2016924421)
Al Ashraf Zarif Al Bakri (2016985231)

2.  A local company established in 1987 - founded in Klang by Lee Thiam Wah
 Mini market (mom & pop’s concept) focusing on fast moving consumer goods (FMCG)
 Currently with 1000 stores & 6 distribution centers nationwide
 Offering more than 3500 variety of items – located strategically close to residential area
 Price competitive – offering FMCG at a lower profit margin to compete with big
hypermarket; focusing on volumes for higher profit.
 Managing complete supply chain management – warehousing, packaging, ordering,
transportation and distribution.
 Achieving lower operating cost via economies of scale.
 Strive to provide customer “ideal shopping environment” with a unique selling
proposition (USP): NEAR ‘n SAVE.
Company Background – 99 Speedmart Sdn Bhd

3. Company Background

4. Deliverables
To analyze 99 Speedmart internal and external environment identifying its
strengths, weakness, threats and opportunities via the SWOT analysis tool
Utilizing the TOWS matrix to evaluate the findings established in SWOT
analysis – to develop strategic marketing solutions to add-value further
to 99 Speedmart organization.
To recommend the key actions/solutions to be implemented to
strengthen further 99 Speedmart’s position as the mini market’s leader in
Malaysia.

5. SWOT Analysis
(S1) Powerful branding awareness
(S2) Medium-quality product
(S3) Competitive pricing
(S4) Strategic location with 1000 stores
(S5) Large scale distribution centres
(S6) Effective supply chain
(S7) Cost leadership strategy
(S8) Store layout & arrangements
(W1) Little differentiation
(W2) High rental fee
(W3) Limited range of products as compare to
hypermarket
(W4) High staff turnover & subpar services
(W5) Lagged in adapting new technology
(T1) Increasing competition from brick & mortar
and online competitors
(T2) Rising commodity prices
(T3) Competition from big retailers / hypermarkets
S W
TO
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
(O1) Partnership with Petrol Station
(O2) Partnership with housing developer
(O3) Rising acceptance of own-label products
(O4) Online shopping trend on a rise
(O5) Global expansion (ASEAN region)

6. TOWS Matrix
i. Capitalize advantage warehouse distributions by establish
online store and delivery services. (S5+O4)
i. Intermediate between wholesaler and customer and selling
the products not available at virtual stores (S6+O4)
ii. Expand business by opening new branches or establish
business partnership with other local or abroad
companies. (S6+O5)
STRENGTHS
THREATSOPPORTUNITIES
i. Establish online stores and provide delivery
services especially in places where other
competitor operates. (W3+O4)
ii. Strengthen social media marketing via Facebook
Ad platform (W5+O4)
i. Establish own brand via relabeling / repackaging
wholesale brand products under 99 Speedmart’s name
to sustain 99’s brand recognition. (S1+T1)
ii. Capitalized 99 Speedmart’s location advantage by using
CRM technology i.e. FB and SMS marketing, to engage
better with customers. (S4+T4)
i. Expand store size or redesign interior space to sell
high range of products or previously not available /
limited. (W3+T1)
ii. Establish loyalty programs to encourage customers to
continue buying products from 99 stores. (W1+T1)
iii. Create strong brand positioning on their
concept of NEAR ‘n SAVE. (W1+T1)
WEAKNESSES
S-T
S-O W-O
W-T

7. Establishing e-Groceries capitalizing on strong supply chain established
(warehouse-logistic-customer) and strategically located near customer.
Establish e-Loyalty program to enhance customer’s retention strategy. Point
redemption, special member’s only via apps.
CRM integration with social media platform (e.g. Facebook)
Strengthening marketing and brand awareness via social media / internet
(IMC)
Recommendations for Marketing Plan Objectives
Strengthening position as a leader in mini market retail business by developing customer
loyalty strategies via:

8. Marketing Goal and Objective
To develop new application called e-GroceriesMarketing Goal 1
• To capitalize on the existing strong supply chain (warehouse-logistic-customer) and strategically located
stores near to customers.
To develop e-Loyalty program that linked to e-Groceries application.Marketing Goal 2
• To enhance customer’s retention strategy (point’s redemption, special offer member’s only, etc. via
App).
To build an interactive promotion via social networks.Marketing Goal 3
• To integrate CRM with social media platform (e.g. Facebook and Instagram ads).

9. Marketing Strategy
Market
Segmentation
• Repeated
customer
• On the go
customer
• Variety
customer
Product Strategy
• e-groceries
• e-loyalty
Pricing Strategy
• Fast Moving
Consumer
Goods
• Reasonable
Price
Distribution
Strategy
• Delivery
Service from
nearest stores
Integrated
Communication
Strategy
• Integrate
e-groceries
with other
promotional
tools

10. Marketing Strategy
Marketing Segmentation
• Repeated customer – Customers who prefer retail outlets that are conveniently located.
• On the go customer – Customers who more likely to engage in e-groceries.
• Variety customer – Customers who more responsive to the sales promotions.
Product Strategy
• e-groceries
• e-loyalty
Selling fast-moving consumer goods (FMCGs) products that are sold quickly and at
relatively low cost
Pricing Strategy
• Fast Moving Consumer Goods
• Reasonable Price
The target market segmentation are Generation Y and X who are technologies savvy.
Product promotion through e-Groceries and to retain customer by offering reward
via e-Loyalty program

11. Marketing Strategy
Providing delivery service and delivery made based on nearest stores locationDistribution Strategy
• Ordering process through e-Groceries
To integrate e-groceries application system with all other promotional tools
Integrated Communication
Strategy
• e-Groceries
• Facebook
• Instagram

12. Tactical Marketing Activities
Division /
Department
Roles & Responsibilities
e-Division • Involve the technical details of developing, testing and launching the new App.
• Involve in establish IMC via Facebook.
• Data analysis from online data received, translating stream of data into useful information
for better decision making.
Marketing • Strategize the content of the information to be display in Facebook (IMC activities).
• Pricing strategy – promotions, discounts & sales.
• Receive information from e-Division on effectiveness of the new App and consumer
behavior
Warehouse • Managing the supply chain with the new e-Groceries demand.
• Ensuring integration between inventory system and new App is effective to avoid customer
dissatisfactory.
Operations • The store operations – to understand how the system works and once deploy ready to
utilize.
• To provide feedback to e-Division for product improvement.
Customer Relation • Manage the e-Loyalty program.
• Interaction with customer via online system – feedbacks, ratings and comments fed through
from e-Division.

13. Implementation Schedule

14. Project
Management,
RM75,000
e-Groceries App
Development,
RM150,000
e-Loyalty Program
Development,
RM50,000
IMC (Facebook
Ads), RM100,000
Trainings for
Employee,
RM60,000
Logistics &
Warehouse,
RM315,000
Marketing Plan Budget - RM750k
Capital Expenditure for Marketing Plan

15. Evaluation and Control
Evaluation
and
Control
Performance
Evaluation
Return of
Investment
Target
Market
Sales
Customer
Feedback
Customer
Relationship
Management
Budgeting

16. Evaluation and Control
Overall performance standard for this marketing plan is to increase total sales
by 10% for the first year of e-Groceries implementation.
Measure on Return of Investment as to investigate whether the marketing
effort are bringing new customer and driving sales. (Capital Expenditure vs
revenue from online sales where the ROI is 18 months.
Evaluation based on geographical segmentation (Petaling Jaya, Shah Alam and
Kuala Lumpur). 700 out of 1000 stores located in Klang Valley.
Review monthly expenses by comparing plan and actual expenditure
Monitored by rating and feedback from Apps and FB and take immediate
response based on real time.
Marketing related performance can be measured through CRM operational metrics
Performance
Evaluation
Return of
Investment
Target
Market Sales
Customer
Feedback
Customer
Relationship
Management
Budgeting

18. e-Groceries App
Display product on promotions for better visibility to capture customer
immediate attention
Customer will be notified on stock availability based on the location of
the nearest store from customer (GPS tracked)
Display reviews and ratings of the products display, allowing customer
to make a better decision.
Allow register & login using Facebook, Google+ and other platforms, to
ease login process & improved communications
Provide delivery address, items purchase, total price and make payment
all within a single page
List of frequently used item (favorites) and able to schedule monthly
purchase within a click of a button
Promotes products with coupons and promotions via e-Loyalty points
redemptions

19. e-Loyalty Program
Electronic base loyalty program where no physical card is required. All
information are accessible via 99 Speedmart App.
All information on loyalty program for each consumer are stored in the
cloud, able to retrieve information at any stores for verification.
To redeem points, no form or phone calls needed. Instant redemption via
App for cash vouchers which can be used online or at physical store.
Faster way to collect points – automatic via online purchase, or scan QR
code at check-out counter at any of 99 Speedmart store
Immediate rewards to customer will improve brand loyalty significantly
since the benefits are gain instantly
Mobile Access (Card-less)
Cloud Base System
Easy Points Redemptions
Wireless Verification
Increase Brand Loyalty

20. Social Media Platform – Facebook Ads
More than 80% internet users use Facebook in Malaysia with more than
13 millions users registered. FB Ads able to reach million users effectively.
Reaching a Huge Population
Ability to reach exact audience – based on age, location, sex, social
behavior and interests.
Targeted Advertising
Start reaching thousands of targeted people within a day. It creates
conversations among users which can gives greater influence.
Quick in Spreading Information
Cost less than RM30 to reach 1,000 users. And the users can be targeted
effectively with feedbacks to create the social “buzz”
Cost Effective
With Ads displaying price & promotions – automatically launch apps to
complete the online transactions
Increase Sales & Revenue
Launching a campaign and monitor the market response immediately,
allowing adjustment of strategies / make corrections immediately.
Real-time Advertising