This will let them to set up only a few distribution centre but high in efficiency in terms of centralize item delivery. They will take responsible to taking care of their product such as collecting expired and damage goods. When taking other factors such as environment and substitutes or varieties of product into account, those factors can affect the price elasticity of demand. Giant brand offers its consumers with consistent quality and the best value product for money on the shelf. In the year , a new head office and distribution centre was completed in October at a cost of RM6.
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.
For the pricing strategy Giant was using lower price productby putting lower price on selected product can be used as a hero products to attract consumers to their outlet to purchase other product. For example, consumer has a choice to go to Giant for more alternative products and better environment, why would they want to go to 99 Speedmart to shop for groceries?
The few promotion that can only stjdy found was maybe during big festival like Chinese New year or Deepavali. Giant brand offers its consumers with consistent quality and the best value product for money on the shelf. 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. The recommended expansion schedule can be as stated on table 1.
Since both 99 Speedmart spwedmart Giant sells normal good, it speedmartt be assumed that as fase the income of their target market increased, the demand for their products also increased.
With speedmzrt planning of distribution centres, this will gradually reduce the lead time to supply enough stocks to the end outlet. On the other handGiant also provide value voucher for letting consumer redeem online for free.
As for 99 Speedmart they are more focusing on Low income group, family house that earn less that per month. Figure [ 3 ] 3.
(DOC) Demand and Supply of Giant vs. 99 Speedmart | Arjinder Singh –
Factors of Demand Location Location are one of the main factors which influenced demand from consumers to a particular supermarket or minimarts.
Furthermore, they can take Japan operation model for reference on sthdy a new logistics systems. 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.
When the service is expanding nationwide, they have to coordinate with suppliers in order to get the nearest source on getting their good supplies. Current Supply Chain Model As stated as section 2. The 99 Speedmart currently deploying computer assisted ordering system.
The first step he has taken is to only carry limited product and only high turnover product will be sold in the store and they do not focus much on sales margin. This actually is a big issues as 99 Speedmart is currently is expanding fast in Klang Valley and also some experimental outlet outside of Klang Valley.
Conclusion There is no doubt that Giant and 99 Speedmart are well known in their target categories. On the other hand, 99 Speedmart were less advertised, which leads to lesser people to know about the brand. The middle income family mostly had minimum one car and minimum one or two child who are studying, most of them will have the price conscious on all the product.
Variety of goods and Price of goods On the other hand, as mentioned before, variety of goods and the pricing also contributed as one of the leading factors besides location in determining the demand of the market.
Currently there are 11 stores at that particular area as of 29 November Lee to gain personal knowledge and insights into the sundry retail market through personal interactions with customers and suppliers. A study of effect of location tsudy retaili outlet sales and services ofproducts.
In order to speeding up the process, voice directed picking system is suggested to be apply. During the period somewhere in the end ofAmidst speedmzrt growing popularity of Pasar Mini 99, 99 Speedmart name was launched with new store opening at Batu Belah, Klang with an intensive expansion strategy geared to help the chain increase market penetration and share.
This is how and why Japan is expanding fast and understands the customer demand well.
After 11 years of operating, they had almost branches and 3 distribution centre around the Peninsular Malaysia. This will let them to set up only a few distribution centre but high in efficiency in terms of centralize item delivery.
Giant also allow customers to get their money back if they regret for their purchase.
It was founded by the Teng family in year As exampleGiant sell the price of natural cooking oil with the price of RM We will write a custom essay sample on 99 Supermarket specifically for you.
Income elasticity for Speedmrt Income elasticity of demand measures the responsiveness of consumer demand towards a product when their income changes.