Click here to sign up. 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. For the place and location Giant will prefer open near around housing area such as condo , apartments , flat and terraced houses , so that is more convenience for their customer. Other than that, 99 Speedmart also got different price from every outlet and the price of their product will keep on changing along with their cost, so it was very unfair for consumer. This will also gradually minimize the effect of lead time and bullwhip that impacts their operation.
This will let them to set up only a few distribution centre but high in efficiency in terms of centralize item delivery. The 99 Speedmart currently deploying computer assisted ordering system. In terms of variety of products and the environment, Giant obviously has the upper hand when it is compared to 99 Speedmart, this makes the pricing of product for 99 Speedmart much more sensitive to consumer demand. On the other hand, Giant has a lower sensitivity than 99 Speedmart when it comes to the Price elasticity of Demand. Out of the three, Carrefour Malaysia seems to be the worst.
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.
This is a good example that 99 Speedmart has to take extreme careful steps before expanding their business nationwide. This was astounding because supermarkets usually buy their products in bulk lesser costmaking their products usually cheaper than most supermarkets as well as having achieved economies of scale as they are an established brand.
It is recommended to take the expansion plan in phases instead of covering the service in whole Peninsular Malaysia at a time. Both 99 Speedmart and Giant targeted xpeedmart income or low to middle income demographics respectively, it is safe to assumed that 99 Speedmart and Giant sells both inferior goods and normal goods, while Giant hypermarket sometimes sells luxury goods such as wine to consumers.
So I suggest that they should set a central distribution centres or such items where the item will be delivered in a milk run method from area distribution centre to another area distribution centre.
This is cqse the majority prefers the location of the supermarket or market to be nearer to their home as it is more convenient. By Muhammad Khalilur Rahman. In order to understand what they need for each part of the area, the branch operation can further stury their department based as stated on figure 7. It takes about approximately 1 hour to reach Seremban, which is non Klang Valley shop located. Giant on the other hand sells luxury products such as wines in some outlets.
In the yeara new head office and distribution centre was completed in October at a cost of RM6.
99 Supermarket | Free Essays –
This gives 99 Speedmart an edge in their competition against Giant supermarkets in attracting customers. In terms of variety of products and the environment, Giant obviously has the upper hand when it is compared to 99 Speedmart, this makes the pricing of product for 99 Speedmart much more sensitive to consumer demand.
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. Home Papers 99 Supermarket.
Furthermore, they can take Japan operation model for reference on building a new logistics systems. Orders will only be place when it reaches certain limit without actually overlook how long it takes to make their 99 reach that level.
Our survey was in order to get insights of 99 people would prefer a mini mart over a supermarket or vice versa. Figure [ 5 ]: Giant also provide a very good services to their customers, they buying everyday groceries just for produce fresh foods under one roof and in a hygienic environment. Everyday giant will select up to 20 different product and giving promotion for the selected product.
Advertisements and Public Awareness Public awareness is another factor that increases demand. In Malaysia there was around outlet, most of their outlet was open around LRT station, bus station or housing area.
All Giant Brand products are available in all Giant hypermarkets and supermarkets. Furthermore the data being collected also useful to do future prediction especially festive seasons on providing enough stocks to full fill demand. This will allow them to attract more customer to visit their outlet. The decision is not made in a hurry but slowly with plans. Suggested Supply Chain Model Since some of the item is low in turnover, they have buy in a large batch order to get better discounts from manufacturer or suppliers.
For increasing their demand, Giant have spending more money on advertising comparing to 99 speed market. We will write a custom essay sample on 99 Supermarket specifically for you. They will separate out a Purchase with Purchase lane, so that all the products at that lane when you buy one you can get one for free. For Giant their main promotional strategy are using daily specials and weekend specials promotion.
(DOC) Demand and Supply of Giant vs. 99 Speedmart | Arjinder Singh –
Lee takes to realize his vision of building an integrated chain of mini-marts. Also at 99 Speedmart customer doesn’t have to go through by long queue for paying, customer can just grab and pay. Usually, when the product is more expensive, the more demand it gets from rich consumers.