aeon

PRESENTATIONPRESENTATIONAEON Marketing PlanAEON Marketing Plan

Prepared for:Assc Prof Asmah Bt Zainuddin

Prepared by:Muhammad Nur Faiz Bin

Amran(2011893042)Mohammad Iskandar Bin Karib

(2011265189)Noor Fadzleen Bt Abd Rahman

(2011441666)Annabelle Anbrews (2011463864)

BM 220 5C

FACULTY BUSINESS ADMINISTRATION (MARKETING)

PRESENTATION OUTLINE

INTRODUCTION

TARGET MARKET

MARKETING MIX

CURRENT MARKETING STRATEGIES

SITUATIONAL ANALYSIS

STRATEGY ANALYSIS

INDUSTRY ANALYSIS

NEW VISION, MISSION AND GOALS

MONITORING AND CONTROL

RECOMMENDATION

What is marketing plan?

“The written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives.

INTRODUCTION

Company background:

•AEON CO. (M) BHD. is a leading retailer in Malaysia with total revenue of RM3.26 billion for the financial year ended 31 December 2012.

•The Company was incorporated on 15 September 1984.

•AEON CO. (M) BHD. (AEON or the Company) was set up in response to the Malaysian Government’s invitation to AEON Japan to help modernize the retailing industries in Malaysia.

•The ‘AEON’ name today is well established among Malaysians as well as foreigners, especially due to its association with the international AEON Group of Companies.

•At all times, in every market, AEON’s activities are guided by its unchanging ‘Customer First’ philosophy.

INTRODUCTION

Company VisionTo establish a solid competitive position and achieve continuous

growth Company Mission

To operate as an “international-scale retailing group”, recognized for excellence not only in Japan, but also in other nations

INTRODUCTION

TARGET MARKET & POSITIONING

MARKETING MIX

1) Halal-wide Product Lines for Halal-wide Target Market

2) Understanding the Consumer Led to Low Pricing Strategies

3) Promotional Strategies fall Secondary to Pricing and Products

4) Aggressive Geographic Placement Threatens Competitors

CURRENT MARKETING STRATEGIES

Current Situational Analysis

AEON’s top priority is to ensure consistent flow of communication in their supply chain network,

from the suppliers, to logistics and warehouse, to the ground staff and management team.


EXTERNAL ANALYSISGeneral Environment (PESTLE)


EXTERNAL ANALYSISPorter Five Force Analysis


The threat of potential new

entrants Medium

The bargaining power of suppliers

Low

The threat of substitutes

product & service

The competitive rivalry among

existing competition

The bargaining power of buyers

High

INTERNAL ANALYSISGeneric Strategy


INTERNAL ANALYSISGeneric Strategy

Type 1 Cost Leadership - Low Cost • offers products or services to a wide range of consumers at the lowest price in the

market• not much care for quality;• consumer switching cost is low;• consumer is price sensitive

Type 2 Cost Leadership - Best Value• offers products or services to a wide range of customer at the best price-value available

on market. • offer customers a range of products or services that are cheap in the market but is

considered of value or better quality than other competitors


INTERNAL ANALYSISValue Chain Analysis

•A tool for identifying ways to create more customer value.

•In this model, every firm is synthesis of activities performed to design, produce, market, deliver, and support its product.

•Refers to the process whereby a firm determines the costs associates with organizational activities from purchasing raw materials to manufacturing product(s) to marketing those products.


AEON Value Chain can be divided into 2 which are the primary and secondary activities.


Primary Activities Inbound logistic: all those activities concerned with receiving and storing externally sourced materials. For example, AEON receives all the raw material and product to be sold at their premises. Operations: The manufacture of products and services - the way in which resource inputs such as material that is converted to outputs such as products. For example, AEON normally received a big bulk of raw material and product from the supplier. They will break it into several small entities to be distributed to the whole branch and in bulk for buying in wholesale price.


Primary Activities Outbound logistic: All those activities associated with getting finished goods and services to buyers. The products are now ready to be assembled to the final customer by sending it to the branches all over Malaysia. It is concerned with delivering the product to the customer. There are several tangibles that have to be improved for AEON such as parking facilities, trolley collectors, till staff and systems to gain competitive advantage, if executed more efficiently than competitors, they will add value by saving the customer time, whilst increasing the turnaround. Marketing and sales: Essentially an information activity - informing buyers and consumers about products and services (benefits, use, price etc.). So far, AEON is seen only to respond to promotional materials of their rivals, by setting up corresponding billboards and by buying similar advertisement placements in the newspapers as and when the need arises.


Primary Activities Service: All those activities associated with maintaining product performance after the product has been sold. AEON provide a customer service counter and also money back warranty if something happen to their product during the warranty period. For instance, if customers spot other supermarket offer lower price for a particular product than AEON, AEON will return the differences back to them.


Secondary Activities Procurement: This concerns on how resources are acquired for a business such as sourcing and negotiating with materials suppliers. AEON CO. (M) BHD., the largest discount retailer in Malaysia, implemented a K2-based solution to track inventory, speed its procurement processes and save money. The implemented of K2-based solution help to incorporates automated workflow around several SharePoint sites. New processes were set up for product requests and to deliver inventory and product information. Human Resource Management: Those activities concern with recruiting, developing, motivating and rewarding of the workforce of a business. As a Hypermarket, most of the retail functions were done by AEON itself. Specialization in production and department means AEON needs to assign and control their manpower efficiently so that they can produce the maximum outcome (higher profit)


Secondary Activities Technology: Activities concern with managing information processing, and the development and protection of “knowledge” in a business. As new era (technology) conquering the business environment, all AEON system were manage by digital devices such as scanner, internet, and online database system. Consumer may also find the latest promotion through their website and by using social networking such as facebook and twitter. Infrastructure: Concern with wide range of support systems and function such as finance, planning, quality control and general senior management. In managing such a big Hypermarket which involves 100 outlets nationwide inclusive of 10 hypermarkets, 18 emporiums, 3 bazaars, 54 mini markets (MyAEON), 9 convenient stores (MyMart) and 6 franchise outlets (AEON Mart). Each of the hypermarkets is located in AEON Malls.


SWOT ANALYSIS

STRATEGY ANALYSIS

STRATEGY ANALYSISSTRENGTH

S1: AEON has pricing power, customers will continue using AEON’s products and servicesS2: Low cost leader can undercut rivals in priceS3: Variety of choice can contribute to customer loyaltyS4: the good brand name and well-known to people recognize

WEAKNESSESW1: AEON has less of space or capacity to in store their goodsW2: The management in AEON is not strongW3: Lack of customer services

OPPORTUNITYO1: The online market offer AEON the ability to greatly expand their businessO2: Trough capture new market they can diverse their portfolio of products and servicesO3: By going global, AEON have a new opportunity

SO STRATEGIESSO1: AEON can selling large volume of goods at globally (S2,O3)SO2: AEON can enter new market based on good brand name (S4,O2)

WO STRATEGIESWO1: To reduce the number of product placing (W1,O1)WO2: AEON need to improve their management to cater needs of new market(W2,O2)

THREATST1: AEON have to compete with other hypermarketT2: Competitors offer similar products range

SO STRATEGIESST1: Improve the services to build long-term relationship (S3,T1)ST2: Maintain lower price (S2,T2)

WT STRATEGIESWT1: AEON need to be alert with competitor changes by give a good customer services (W3,T1)WT2: Provide a large space to store a variety of products(W1,T2)

SWOT STRATEGIES

BOSTON CONSULTING GROUP (BCG) Matrix

AEON can be considered a cash cow because AEON requiring little investment to hold its current market share. AEON now to try their best to introduce and

familiarize their customers with their halal hypermarket.

STRATEGY ANALYSIS

SPACE MATRIX

STRATEGY ANALYSIS

Internal analysis External analysisFinancial position Stability position (SP)Return on investment 4 Rate of Inflation -2Leverage 2 Technology Changes -6Liquidity 1 Price Elasticity of Demand -4Working capital 4 Competitive Pressure -4Cash flow 5 Barriers to Entry into Market -1

Financial position (FP) average 16 Stability Position (SP) Average -17

Internal analysis External analysisCompetitive Position (CP) Industry Position (IP)Market Share -2 Growth Potential 6Product quality -3 Financial Stability 3Customer loyalty -6 Ease of Entry into Market 4Technology Know-how -6 Resources Utilization 3Control over Suppliers/Distributors

-5 Profit Potential 4

Competitive Position (CP) Average -22 Industry Position (IP) Average 20

SPACE MATRIX

ConclusionSP Average is - 17/5 = - 3.4CP Average is - 22/5 = - 4.4IP Average is + 20/5 = 4FP Average is + 16/5 = 3.2

Directional Vector Coordinate: x-axis: - 4.4 + (+4) = - 0.4y-axis: - 3.4 + (+3.2) = - 0.2

Coordinate (-0.4, -0.2)Conclusion: Vector points in Defensive Quadrant

STRATEGY ANALYSIS

A performance metric used in strategic management to identify and improve various internal functions and their resulting external outcomes.

BALANCE SCORECARD

Strategic

priorities

Goal Target Strategy

Financial Increasing sales

of demanded

product

Potential

customer

Diversification of

product range

Customer Attract more

people to

consume at AEON

Working people Offers more

convenient

product

Manager/

employee

Increase working

performance

Potential worker Send them

training to

strengthen skill

and expertise

COMPETITIVE PROFILE MATRIX (CPM)

INDUSTRY ANALYSIS

AEON TESCO GIANT

CRITICAL SUCCESS FACTORS: WEIGHT RATING SCORE RATING SCORE RATING SCORE

ADVERTISING AND MARKETING 0.1 3 0.3 2 0.2 3 0.3

PACKAGING 0.1 2 0.2 2 0.2 2 0.2

PRODUCT QUALITY 0.1 2 0.1 2 0.2 2 0.2

BRAND LOYALTY 0.2 3 0.6 1 0.2 2 0.4

CUTOMER TASTE 0.1 2 0.2 2 0.2 1 0.1

PRICE 0.4 4 1.6 2 0.8 1 0.4

TOTAL 1.0 3.0 1.8 1.6

IFE MATRIX (INTERNAL FACTOR EVALUATION)

INDUSTRY ANALYSIS

FACTORS WEIGHT RATING WEIGHTED SCORE

STRENGTHS:1. Pricing Power 0.35 4 1.40

2. Cost Advantage 0.10 3 0.30

3. Consumer Loyalty 0.15 3 0.45

4. Brand Name 0.20 3 0.60

WEAKNESSES:1. Less Space 0.07 2 0.14

2. Weak Management 0.03 2 0.06

3. Customer Service 0.10 2 0.20

TOTAL 1.0 3.15

EFE Matrix (External Factor Evaluation)

INDUSTRY ANALYSIS

FACTORS WEIGHT RATING WEIGHTED SCORE

OPPORTUNITIES:

1 Online Market 0.20 2 0.40

2. New Markets 0.25 3 0.75

3. International Expansion 0.10 2 0.20

THREATS:

1. Intense Competition 0.20 3 0.60

2. Substitute Products-AEON 0.25 3 0.75

TOTAL 1.0 2.70

VisionThe vision of AEON is that every person has a home and is

interconnected within communityMission

The mission of AEON is to create and sustain quality affordable homes that strengthen lives and communities

GoalsThe goal of AEON is to operate as an “international-scale retailing

group”, recognized for excellence not only in Japan, but also in other nations

NEW VISION, MISSION & GOAL

RECOMMENDATIONS

Enter global market

Improve Quality

Promotion of own house brand

product

Improve management

operation

Staying Focus

Store Appearance

Understanding customer and

employee need.

Business Model

To remain relevant in this highly competitive business, AEON Hypermarket needs to understand its customers, reckons the

capability of its competitors and be at ease with technology as a strategic tool

AEON has the potential to maintain as a lifestyle hypermarket. With their wise extension strategy, it is not surprise if one day, they would

be the leading and the biggest hypermarket in Malaysia

CONCLUSION