99 SPEEDMART CASE STUDY

  • June 30, 2019

For example, even if the price of a product in Giant is slightly more expensive than 99 Speedmart, people would still go there to shop because of a better environment and more product choices. This can be seen from the newest distribution centre being set at Balakong Jaya which is near the North South highway. This meek beginning has allowed Mr. Giant brand features distinctive yellow and green packaging which will be instantly recognizable and also dependable. Therefore, placement of Speedmart were usually placed in residential areas or somewhere near the residential area as it is the most logical solution to ensure their survival in a competition against supermarkets.

Currently there are 11 stores at that particular area as of 29 November The driver is expected to do a milk run to area assigned to them to do daily replenish stocks. Lee to gain personal knowledge and insights into the sundry retail market through personal interactions with customers and suppliers. Other factors of consideration included that the majority of the interviewees preferred to save petrol and avoid traffic jams while travelling to their preferred destination, therefore, distance of the market from consumers home matters a lot and will affect the preferred choice of the consumers in choosing a suitable shopping destination. When the market is mature enough and enough distribution centres is being set near the near target market, they can start proceed to the next phase. The recommended expansion schedule can be as stated on table 1.

This is especially true in the case of 99 Speedmart, where they concentrated on selling products normal goods that have high turnover rates such as necessities to increase consumer demand.

The benefits they can obtain thru this are speed,art their space to store stock and also provide the right product to the community.

99 speedmart case study

Income elasticity for Demand Income elasticity of demand measures the responsiveness of consumer demand towards a product when their income changes. In the yeara new head office and distribution centre was completed in October at a cost of RM6.

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The payment will be cleared every time if the next order has been place to supplier to get better discount. But end of the day, it is this in etudy hands of the consumers to choose whether where they want to shop, and what they want to buy. We use cookies to give you the best experience possible. Giant brand offers its consumers with consistent quality and the best value product spwedmart money on the shelf. However, when their income increased, their desire to buy a better quality product will lead them to quit buying the Giant brand product which are considered inferior.

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Log In Sign Up. Consumers will have more choice to select with cheaper substitutes available to satisfy their wants and needs. Cqse will write a custom essay sample on 99 Supermarket specifically for you. Their most products are obtained and developed locally in view of Malaysia’s abundance in terms of raw material and also manufacturing facilities.

Both 99 Speedmart and Giant targeted low income or low to middle income demographics respectively, it is safe to assumed that casw Speedmart and Giant sells both inferior goods and normal goods, while Giant hypermarket sometimes sells luxury goods such as wine to consumers.

(DOC) Demand and Supply of Giant vs. 99 Speedmart | Arjinder Singh –

For Giant their main promotional strategy are using daily specials and weekend speexmart promotion. It was founded by the Teng family in year Since 99 Speedmart has achieved economies of scale they have 3 distribution centers in Malaysiathe adjustments of price for products shouldn’t be a problem for them.

For 99 Speedmart there is some disadvantage for them, they got less stock ability if compare with Giant so they will be always run out of stocks. Conclusion There is no doubt that Giant and 99 Speedmart are well known in their target categories.

Where else, 99 Speedmart can also try to make more promotion and also do some advertising. And also for 99 Speedmart every month they do have many event of sample give away such as Nestle sample, Maggie sample or ice-cream. When taking other factors such as environment and substitutes or varieties of product into account, those speedmar can affect the price elasticity of demand. Giant on the other hand sells luxury products such as wines in some outlets.

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Conclusively, Giant and 99 Speedmart sold products were usually that of normal goods to maximize their profit as the majority of their customers 99 towards normal goods.

99 Supermarket

Other than that, when at festival Giant will also have sales and will be opening for 24 hour, Example Chinese New year or Hari Raya. In every company they have their pros and cons, which makes it harder to say which is the best.

99 speedmart case study

A same item might be taking speedkart few days to reach minimum stock level in one outlet but a few weeks for another outlet as each of the area will have a different buying behaviour that affected by factors such as religion and cultures. They will have meeting every week on reviewing their sales done. However, 99 Speedmart is not a solo-player in retailing market. But for 99 Speedmart they got less promotion because most of their product are sold cheaper if compare with Giant.

Figure [ 3 ] 3. Orders will only be place when it reaches certain limit without actually overlook how long it takes to make their stock reach that level.

This meek beginning has allowed Mr. On the other hand, while 99 Speedmart does not sell inferior goods, Giant sells products such as rice and cleaning agents which is their own brand that were cheaper. This is caae to the income elasticity of demand theory where when income of an individual increased, the demand for inferior product will decrease.

This is because consumers would sfudy have preferred to choose a mini-mart which is farther away from their home than the supermarket, as the pricing would more or less similar to one another with the lack of variety as another issue.