Marketing strategy that 99 Speedmart uses. PDF

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UNIVERSITI TEKNOLOGI MARAMACHANGASSIGNMENT 1:CASE STUDYGROUP ASSIGNMENT 1: CASE STUDYPREPARED BY:NAME STUDENT NUMBERSOFIEA NUR AINI BINTI JOHARI 2021850032AHMAD ZAHID AIMAN BIN AHMAD ZABIDI 2021619702AMMAR FIKRI BIN MOHAMAD ZIN 2021870656NURSHAHIRA BINTI HAMIZUN 2021471258NUR FATIHAH BINTI AZAMAN 20...

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UNIVERSITI TEKNOLOGI MARA MACHANG

ASSIGNMENT 1:CASE STUDY

PREPARED BY:

NAME

STUDENT NUMBER

SOFIEA NUR AINI BINTI JOHARI

2021850032

AHMAD ZAHID AIMAN BIN AHMAD ZABIDI

2021619702

AMMAR FIKRI BIN MOHAMAD ZIN

2021870656

NURSHAHIRA BINTI HAMIZUN

2021471258

NUR FATIHAH BINTI AZAMAN

2021847432

TABLE OF CONTENT 1.0 INTRODUCTION

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2.0 MARKET SEGMENTATION

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3.0 MARKET TARGETING

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4.0 MARKET POSITIONING

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5.0 RECOMMENDATIONS AND CONCLUSION

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6.0 REFERENCE

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1.0 INTRODUCTION

The activity of selling and purchasing has been practiced for centuries to fulfill human desires. Starting from the barter system to the currency system. Since long ago, people have always gone to the places which sell their needs and wants. In terms of sellers, they always try to find a way to attract a lot of customers to get more profits. So this activity will satisfy both parties; the customers get their things and the seller will be getting profit. In getting higher sales, a company must plan its marketing. Based on the Cambridge dictionary, marketing is the business activity that involves finding out what customers want, using that information to design products and services, and selling them effectively. Other than that, it is also a process by a company to create value for customers and build a strong relationship with customers to capture value from customers in return. So, a company must plan its marketing strategy to get a high return. In Malaysia, there are so many places to buy our needs and wants but people are more interested in buying basic needs and wants that are cheap and quality. One of them is 99 Speedmart which is a mini-market (mini supermarket) that fulfills multiracial consumers’ needs for groceries and services. It sells all the basic needs and wants with unbeatable prices; the lowest price that we can get in the retail groceries sector. 99 Speedmart was started in 1987 with the name Pasar Raya Hiap Hoe by their founder, Mr. Lee Thiam Wah in Tepi Sungai, Klang. In 1992, the company started to use the name “Pasar Mini 99” and in 2000, the company rebranded as 99 Speedmart and has been used until now. Through all these years, 99 Speedmart has more than 1750 outlets and has become one of the best in the retail groceries sector. In addition, 99 Speedmart were awarded by the government with “Anugerah Kedai Harga Patut” and “Kedai Pilihan Pengguna”.

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Therefore, the purpose of this report is to analyze the marketing strategy of 99 Speedmart that makes the company one of the best. This report will explain the market segmentation, market targeting, and positioning that have been chosen by this company.

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2.0 MARKET SEGMENTATION

Market segmentation is the process by which businesses divide large, diverse markets into smaller markets that can be reached more efficiently and effectively with products and services that suit their specific needs. Geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation are the four types of segmentation consumer markets. According to the research studies, 99 Speedmart uses geographic segmentation and demographic segmentation to market their business.

Geographic segmentation:

Figure 2.0: Location of 99 Speedmart Kota Warisan 2 Geographic segmentation divides the market into distinct geographical units or groups based on location, such as city, district, or housing estate. 99 Speedmart has more than 1750 outlets and launched its first store in Singapore at 110 Sims Avenue on 14 December 2019. 99 Speedmart was using geographic segmentation to place their stores at a strategic place. A significant majority of them are located on the west coast of Peninsular Malaysia with a growing presence in Sabah and Sarawak. All the stores are located in urban and suburban areas which is the local point place for every state and country because the 99 Speedmart slogan is “ Near n’ Save”. Figure 2.0 shows an outlet of 99 Speedmart is in an urban area. The particular reason for this circumstance is that all walks of life are mostly buying groceries and stuff in their daily life. In addition, a nearby grocery store will definitely ease the customer in getting their needs and wants. For instance, people buy snacks at 99 Speedmart to eat in their leisure time or when

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they are doing work at home because of the covid-19. Hence, 99 Speedmart will always be located in urban and suburban areas.

Demographic segmentation: Demographic is one of the most popular segmentation bases for doing user mapping because users' needs, wants and consumption rates typically vary according to their demographics. The market can be divided into groups using variables that describe individuals such as age, income, education, occupation, and religion. In this type of segmentation, an organization can categorize the needs of consumers and allow you to collate your customers in a way that lets you identify the best way to promote your goods or services to them. 99 Speedmart carries over 3,500 products for every age group and geders. 99 Speedmart uses income targeting to promote its products especially for those who are in the low and middle-income category because of the concept “economies sale”.Its goal is to provide the best possible products at the lowest possible prices.

Other than that, 99 Speedmart is a

family-oriented store that accepts a variety of products and services that cater to the needs of its customers. This concept draws on the company's core values such as trust, security, and comfort. Finally, this company's goal is to promote healthy eating and drinking water to its customers. Through its various initiatives, it aims to improve the customers' health by providing them with fresh and nutritious food and beverages.

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3.0 MARKET TARGETING Next, the process of evaluating each market segment's attractiveness and selecting one or more segments to enter can be defined as the definition of market targeting. Market targeting is a process of choosing the target market from the whole market. Target market consists of group/groups of buyers to whom the corporate wants to satisfy or for whom the product is manufactured, price is ready, promotion efforts are made, and distribution network is ready. It involves two actions which are an evaluation of segments and selection of the acceptable market segments.

Undifferentiated Marketing Undifferentiated Marketing can be known as Mass Marketing, which means the firm disregards market segment differences and targets the whole market with one offer. The company sells the same products to all the customer groups also they do not consider differences among buyers. The products and the marketing program remain for all segments. This strategy requires the activity of distribution and promotion to be carried out widely to reduce production costs and enjoy the benefits of economies of scale. They launched products mostly in large quantities without involving specific targeting and market targeting. For example, household necessities have a very wide market without requiring marketers to define targets or conduct target marketing. Thereby, the cost of production, distribution, and promotion can be reduced. If the cost is reduced to low prices it can attract the consumer. 99 Speedmart offers all in one store. So, customers will find their needs easier in the store. 99 Speedmart does not focus on one's needs only. 99 Speedmart also offers various necessities to consumers. 99 Speedmart provides more than 3500 varieties of items to fill what customers need such as foods, grocery supplies and cosmetics. 99 Speedmart also supplies baby products such as baby oil, pampers, infant formula, and baby foods. By offering various types of these goods, 99 Speedmart has become the focus and choice of customers to buy goods. So Speedmart does not need constant change in content. Plus, the cost will also be effective in the long run.

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4.0 MARKET POSITIONING

Market positioning is a strategy that every company uses to create the identity of a brand or product within the consumer's mind. The process indicates how you differentiate your product from your competitors. Every company uses different market positioning to improve their sales and make their company the first choice among the consumers. A company's success is heavily reliant on its positioning strategy. 99 Speedmart has positioned itself as a company that provides products at the lowest possible cost. It uses a pricing advantage to ensure the long-term viability of its business model. 99 Speedmart has destroyed several retailers such as MyNews and Tesco over its decades of operation due to its low price positioning. As a result, 99 Speedmart is the brand of a retailer that offers the convenience of one-stop shopping for everyday products at the lowest possible price to price-sensitive customers due to its operational excellence, inventory management, and logistics infrastructure. 99 Speedmart has the brand identity of a “ Near n’ Save”. From the start, the company's merchandising was based on a "national brand" strategy. By carrying all of the well-known brands at relatively lower prices, it was able to demonstrate the superior value it provided to its customers. Other than that, the promotion of 99 Speedmart products through cash vouchers, websites, and social media platforms such as Instagram and Facebook strengthen the positioning. For example, the launching videos of 99 Speedmart products on Facebook pique the interest of more people in the brand due to the low price. Because of the high quality of 99 Speedmart products, many people began to trust them. As a result, the 99 Speedmart brand was strengthened and became the choice of consumers to buy their necessities. All the market strategies that 99 Speedmart uses are in line with the vision and mission of their company thus making their company known today. 99 Speedmart keeps growing over time especially in the current situation where the country is hit by the Covid-19 epidemic.

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5.0 RECOMMENDATIONS AND CONCLUSION Despite the company’s success, there are still certain things that 99 Speedmart needs to improve in order to be considered among the best in Malaysia. One of these is displaying more local products and SMEs. This will help boost the company’s revenue and attract more local customers. In summary, 99 Speedmart has three market segmentations which are demographic segmentation, geographic segmentation, and geodemographic segmentation. All the products in 99 Speedmart can be categorized based on gender, age, and more. Besides, all the outlets have been opened in urban and suburban areas due to its strategic location. Lastly, some products are not sold in some areas due to the population of each race. Moreover, 99 Speedmart sells a lot of basic needs for Malaysians. This causes the company to use undifferentiated and micromarketing as their market targets. Lastly, 99 Speedmart focuses on the prices of its products for market positioning. Selling products at the lowest prices and its promotion through cash vouchers, websites, and social media platforms build up its reputation and expand its market. Hence, 99 Speedmart divides its consumers into three groups of market segmentation which are demographic segmentation, geographic segmentation, and geodemographic segmentation. Despite that, 99 Speedmart chooses to make undifferentiated marketing and micromarketing their market targets because they sell a variety of products based on the local needs. Furthermore, selling their products at the lowest prices attracts a lot of people and makes the company able to grow and succeed.

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6.0 REFERENCE The Edge Markets. (2021, May 13). 99 Speedmart and KK Super Mart hasten expansion. https://www.theedgemarkets.com/article/cover-story-99-speedmart-and-kk-super-mart-h asten-expansion Kotler, P., & Armstrong, G. (2018). Principles of Marketing (Seventeenth ed.). Pearson Education. MalaysiaPlaces.net. (n.d.). 99 Speedmart 1927 Kota Warisan 2 | KIP Sentral Sepang. 99 Speedmart Kota Warisan. Retrieved November 8, 2021, from https://malaysiaplaces.net/99-Speedmart-Kota-Warisan-3685320/ Market Targeting: Introduction, Definition, Procedure and Methods. (n.d.). https://www.yourarticlelibrary.com/economics/market/market-targeting-introduction-definit ion-procedure-and-methods/48609 Mialki, S. (2021, June 11). What is Demographic Segmentation with 5 Examples. https://instapage.com/blog/demographic-segmentation 99 Speedmart. (n.d.). 99 Speedmart' History. Our History. Retrieved October 18, 2021, from http://www.99speedmart.com.my/About/History YourArticleLibrary. (n.d.). Market Targeting: Introduction, Definition, Procedure and Methods. https://www.yourarticlelibrary.com/economics/market/market-targeting-introduction-definit ion-procedure-and-methods/48609 (Farooq, 2018) (Market Targeting: Introduction, Definition, Procedure and Methods, n.d.). Your Article Library. Retrieved November 15, 2021, from https://www.yourarticlelibrary.com/economics/market/market-targeting-introduction-definit ion-procedure-and-methods/48609 ZARIF, A. (2017, October 14). Strategic Marketing Plan - 99 Speedmart. SlideShare. Retrieved November 15, 2021, from https://www.slideshare.net/ALASHRAFZARIFALBAKRI/strategic-marketing-plan-99-spee dmart

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