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RUNCIT MALAYSIA MAGAZINE ISSUE 15

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RUNCIT MALAYSIA MAGAZINE ISSUE 15

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Have a Profitable Chinese New Year

We are in the festive season and the much-awaited Chinese New Year is approaching. Although the news has not been very friendly with reports of present economic downturns and future challenges

that may come with the new year, we hope all of you are not discouraged. You should take the Chinese New Year as a chance to gain as much sales as you can so that 2009 will begin on a good note.

In our Rencana Runcit this issue, we came up with a story on traditional and modern festive foods along with important festive food and drink categories to give you better insights on what your shoppers would need for the season.

We are happy to feature some brands from Spritzer Bhd, Unilever (Malaysia)

Holdings Sdn Bhd and Yeo Hiap Seng (M) Bhd that are popular during the festive season.

We also continue with another brand profile from Cotra Enterprises Sdn Bhd. This time, we feature MARIGOLD Peel Fresh, a very successful juice brand from the company. Find out what makes this brand a hit during this merry season.

TINJAUAN RUNCIT

In line with this, we are very pleased to feature one of the biggest F&B companies in Malaysia, Pepsico (Malaysia) Sdn Bhd. In our Sahabat Runcit section, not only do you get acquainted with the company and its popular brands, you would also get some tips on how to improve your business.

To further help you prepare for this important season, we have also included some insightful articles filled with fresh new ideas in this issue. Read our Kedai Runcit to learn how you can organise your products and Mesra Runcit to take the right steps towards a successful business in the festive season. In addition, do get some ideas on how to modernise yourself and your business in Urusniaga Runcit and to set up your financial priorities in Wang Runcit.

We hope this issue will be of good use to all of you. Remember, perseverance will guide you to go the extra mile during this challenging period. With this, we wish you a profitable Chinese New Year and the best of luck in the new year!

William KhooExecutive DirectorInfovantage Sdn Bhd

[email protected]

! RUNCIT MALAYSIA MAGAZINE ISSUE 15

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Knowing the Foods We Enjoy During Festivities

Festive Foods

RENCANA RUNCIT

Having a lot of festivals to celebrate is one of the perks of being Malaysians. And since open house has become a Malaysian culture, most of us would have at least four different open houses to attend each year.

Apart from maintaining family ties and friendships, enjoying foods is also one of the reasons open houses are attended. Guests can eat all they can since a variety of delicious dishes would be served.

Festive foods may range from traditional to modern. The traditional ones may have histories dated back to thousands of years ago and eaten for specific reasons like for prosperity and blessing.

Nevertheless, consumers are getting more modern. Modern foods and drinks are earning places in the festive list. We can even observe combinations of western and Asian styles in some of the foods.

For the retailers, each festival could signal very important sales period. You need to be watchful of fast-selling and much-needed items during each festival. Having enough stocks and providing additional or ‘for limited time only’ items would help to maintain heavy traffic in your shop. Keep reading to get information on festive foods.


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Luck and ProsperityThe highly auspicious Chinese New Year

Chinese New Year or the Spring Festival is the most important festival to the Chinese community. The festival that marks the beginning of a new lunar year symbolizes renewal in fortune as well as in life. Red clothing and ang pows identify with the festival.

Reunion dinner would also be held on the eve of Chinese New Year where family members gather and enjoy scrumptious dishes together. As the Chinese are known to be rich in culture and tradition, every dish carries symbolic meaning.

‘La Chang’

A kind of Chinese sausage made of pork meat. Sometimes mixed with pork, duck or turkey liver. Used in cooking for dimsum, popiah, char kuay teow and many other dishes.

Oyster

Oyster is ‘hao’ in Mandarin. The sound is similar to good things. May be served as a side dish or in noodles.

‘Fa Cai’

A kind of black, hair-like seaweed that is served as a vegetable dish. The name literally means ‘receiving prosperity’.

Abalone

Considered a high-class ingredient in Chinese cuisine. Dried and canned abalones are often used compared to fresh ones due to price and availability.

‘Nian Gao’

A kind of steamed cake made of rice flour. Eaten for greater prosperity and rank in the new year.

Mandarin Orange

Called ‘kam’ (which means gold) in Cantonese. Therefore, the act of giving ‘kam’ can be seen as a symbol of generosity and wishing someone a good luck ahead.

Peanuts

This tidbit is called ‘hua sheng’ in Mandarin. It symbolizes fertility as the name means ‘giving birth to many sons and daughters’.

Sweets

Referred to as ‘tian tian mi mi’ in Mandarin which means ‘a sweet life’ or ‘a loving relationship’. Usually enjoyed for closer and more loving relationship of husband and wife.

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Returning to the RootsVisiting and Forgiving on Hari Raya

Muslims celebrate two Hari Raya every year: Hari Raya Aidilfitri and Hari Raya Aidiladha. The two festivals are religious and differ in terms of the practices required to be done in each. However, both are about being thankful of the

gift of life, patience, generosity and love. Forgiving and visiting one another are practiced in both Hari Raya. Open houses and delicious foods are customary to these festivals too.

Common Foods

Ketupat

There are two types: ketupat nasi and ketupat pulut. Ketupat nasi is made of rice wrapped in coconut leaves and eaten with peanut sauce, lontong or rendang. Ketupat pulut is made of glutinous rice wrapped in fan palm leaves (daun palas) and usually eaten with rendang or curry.

Rendang

Prepared with beef or chicken. The meat is usually left to cook for several hours for better absorption of the spices.

Lemang

Made of glutinuous rice and coconut milk. Cooked in bamboo sticks and barbecued over charcoal fire.

Kuih Raya

Assorted cookies that would be served on the coffee table. Cornflake cookies and Almond London are very popular with the Malays.

Regional Specialties

EastIn the East, celebration for Hari Raya Haji is usually much bigger than Hari Raya Puasa. Laksam, Nasi Kerabu and Nasi Dagang are eastern specialties for Hari Raya.

NorthPeople in the northern region of Malaysia enjoy Laksa Penang, Ketupat Pulut and curry mee during Hari Raya.

SouthLaksa Johor, Lontong and Briyani rice are favourites in this region.

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Triumph of Good Over EvilIn the Lights of Deepavali

Deepavali or Diwali is the Festival of Lights. Hindus who celebrate Deepavali will decorate their houses with lights and kolams (patterns made up from coloured rice). A lot of rich-tasting foods too would be served during this festival.

Curry

Be it chicken, beef, fish, mutton or vegetable, curry is a must for this festival. Although

significant to the Indians, curry has grown to become Malaysians’ favourite dish too.

Muruku

Also known as chakli, muruku is a savoury rice snack originated from Tamil Nadu, India. Made of bean and rice flour, salt and other flavourings.

Sweetmeats

As the name suggests, this treat has high content of sugar. Among the popular ones served during Deepavali is halva, burfi and laddu.

Vegetarian Foods

Naan, thosai and idli are among the vegetarian foods served. These foods are eaten with vegetable curry, pickles, chutneys or other dips that do not contain beef.

Love and RejoicingIn the Spirit of Christmas

Christmas has grown to become a secular festival rather than religious. Non-religious motifs like snow, stockings, Santa Clause, his reindeers and the Christmas tree are widely used in hotels and shopping malls during Christmas in this country. Foods served during Christmas too have histories behind them.

Roast Turkey

Serving turkey in its whole form is believed to ensure prosperity and better luck for the year to come. Turkey has become more affordable and most would not mind purchasing it for a special meal on Christmas.

Gingerbread

A type of cake that is often shaped as men, women or houses. The name comes from an old French word ‘gingerbras’ which means ‘preserved ginger’.

Christmas Cake

Began as an English tradition in the form of pudding. Then flour, eggs, butter, fruits and liquor were added to turn it into a rich, long lasting cake.

Yule Log

A tasty cake roll usually covered in chocolate icing and decorated with holly leaves and flowers. Yule log was created and enjoyed to commemorate the tradition of burning real logs on Christmas eve for protection against evil.

Mince Pies

Mince pies that we enjoy during Christmas now have not always been small and fruity. Originally, they are much bigger and filled with meat and spices.

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CELEBRATE WITH FOODConsumers would be preparing a lot of foods to entertain their guests during the festive season. The followings are food items that are sold more during the season.

Rice

Rice and rice-based dishes are widely served during every festival in Malaysia. Fragrant and specialty rice (like basmati & glutinuous) are more suitable to be used in preparations of festive dishes. Since 3/4 of all rice in the market are sold through traditional trade, you should stock up more on this item for the festive season.

Cooking Oil

Palm oil still dominates the market even though healthier oils like olive, sunflower, corn and canola oils are starting to gain more acceptance. Bigger packs are purchased more during festive season.

Noodles & Pasta

Variety is always welcomed during festivals. Therefore, preparing noodles is one creative way to delight the guests. Apart from the traditional yellow noodles and rice vermicelli, pasta too is gaining more popularity with dishes like Laksa Johor and Spaghetti Bolognese being regarded as festive foods.

Sauces, Stocks & Seasonings

Asian sauces like oyster and black bean are very popular especially during the Chinese New Year while stocks that are now available in the form of liquid, powder and cubes make cooking more convenient for consumers. Although seasonings can be purchased separately, pre-mixed spices are more

preferred. With them, even those who cannot cook can prepare dishes like rendang, bak kut teh, curry and sweet & sour easily.

Baking Ingredients

This includes everything from flour, eggs, nuts, sugar, cocoa powder, colourings and flavourings. Certain companies had come up with ready-to-bake cake and cookie mixes. It is best that these items are stocked up and grouped together in your shop so that shoppers can easily find them.

RENCANA RUNCIT


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Margarine

Consumers bake a lot of cookies, cakes and biscuits during the festive season. Consequently, sales of margarine tend to increase during this period. Palm oil based margarines that contain little or no trans fatty acids are more preferred as they help to prevent cancer.

Biscuits

Biscuits come in various types (eg wafer, rolls & sandwich) and flavours (eg chocolate, strawberry & peanut butter). Over the past few years, wafer rolls are served more compared with the traditional love letters/kuih kapit. Individual packs and resealable packaging have made it more convenient for biscuits to be served during this season.

Baked Goods

Consumers are getting busier and many cannot find the time to bake anymore. This creates a bigger market for ready-made

cookies, cakes and even traditional kuih. Most shops would create decorative island and block displays for these items during festive season.

Chocolates

Milk, white and dark are the common types of chocolates. Other ingredients that have been added to chocolates include nuts, fruits, jellies and liquor. Mini and bite-sized chocolates are served along with other snacks during festive season. Most chocolate companies would come up with attractive festive packaging to drive their sales. Chocolates too are popular items to be put in festive hampers.

Health Preparations

Wishes for better luck and health are always given during festivals. Due to this, health preparations like essence of chicken and bottled birds’ nests became popular festive gifts. These items are usually bundled into hampers.

RENCANA RUNCIT


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DRINK & BE MERRY

Drinking has long been associated to celebrations and merriments. These drinks are favourites for festivals in Malaysia.

Asian Soft Drinks (ASD)

Asian soft drinks (ASD) are traditional drinks that are packed and processed for modern consumers. ASD are increasing in popularity. Consumers enjoy ASD for beliefs and traditions that are associated to it and the century long history of its consumption. ASD can be divided into 3 segments: soy, botanical and fruits. Manufacturers are innovating soy drinks and now, consumers can get not only the original soy drinks but also those that are less sweet, with brown sugar and even produced with home-made recipe.

There is a wide range of botanical ASD but chrysanthemum tea remains as consumers’ favourite. Innovations in fruit-based ASD gave birth to a fusion of drinks like lemon barley. Innovative packaging too, creates great demand for this category. Tetra Brik 250ml and 300ml cans are popular festive pack sizes.

Wine

Wines are often enjoyed during family dinners, while entertaining guests or presented as gifts. They are usually made of grapes because the chemical balance in the fruit allows for fermentation without the

addition of sugars, acids, enzymes and other nutrients. Grape-based wines dominate the market with two variants: red (eg Burgundy) and white (eg Chablis).

Wines that are made with two or more types of grapes are also available in the market (eg Burgundy + Pinot Noir). Nowadays, consumers are exposed to wines made of apples, peaches and berries too. Most wines are sold in glass bottles and sealed with corks. Wines must be properly stored. All types of wine can spoil if exposed to heat, light and fluctuations of temperature.(Source: Wikipedia)

Juices & Fruit Drinks

Juices and fruit drinks are enjoyed because they are great thirst quenchers, suitable for everyone and also nutritious (for certain products). This category can be divided into 3: 100% juice, nectar juice (contains 35% or more juice) and fruit drinks (less than 35% fruit juice). Orange flavour remains as consumers’ favourite although manufacturers do try to entertain different taste buds with flavours like mango, apple, kiwi, berries etc. Consumers prefer ready-to-drink juices as pasteurisation makes them fresher and tastier.

RENCANA RUNCIT


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Beer

Alcoholic drinks especially beer, has always been associated to celebrations. Made of fermented yeast malt, it is the most widely consumed alcoholic beverage in the world. It makes up 80% of the whole ‘malt liquor’ market (stout holds the rest). Sales of beer would increase majorly before the Chinese New Year.

Beers can be divided into 3 segments: premium, mainstream and value. Premium is for those who are well informed of beers, mainstream indicates the majority of consumers and value is for those who want more value for their money. Cans and bottles are favourite formats for the festive season. Strengthen your shoppers’ perception with good merchandising technique and attractive in-store point of purchase (In-POP) medium for beers.

Carbonated Soft Drinks (CSD)

We have come a long way from the old syrup days. Carbonated soft drinks started with orange flavours that instantly became a hit for its association with ‘kam’ (gold). Then came Sarsi, Cola, Strawberry, Grape and other tasty flavours that are widely available in the market. Manufacturers have also come up with interesting innovations like CSD with none or less sugar and without caffeine to suit different needs.

To add to the excitement, more sophisticated taste were added to CSD (eg addition of lemon, lime and vanilla). Formats too have proliferated, from small glass bottles to 1.5liter PET bottles to 300ml cans and small PET bottles. For the festive season, you should stock up the 300ml format by cartons and more of the 1.5liter PET bottles.

Cordial

Cordial is a highly sweetened concentrate that has to be mixed with water before drinking. The most common flavour in Malaysia is orange, rose syrup and blackcurrant. Some consumers prefer cordials especially during festive open houses as it is cheaper and can be used to serve a large number of guests.

Water

Consumers need to stay hydrated while coping with their busy festive schedules create demands for water during the season. Natural mineral water, drinking water and the latest, flavoured mineral water contribute largely to the category. Sales of bottled water in traditional trade are almost equally as much as in modern trade.

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1. Cater EffectivelyConsumers are now more cautious in the way they spend. Therefore, you need to focus on pushing sales of products that are high in quality, give good value for money and most importantly, affordable to your target group of shoppers. You can usually get all these from the leading brands. You can even conduct ‘for limited time only’ promotions. This will allow you to maximise sales without wasting your resources.

2. Offer the Right Stocks & SKUBe ready to stock up a couple of months before the season. Remember, you should always be well-stocked, not over-stocked. Keep in mind that your shoppers are on tight budgets, so offer them what they can afford to buy. Stock up on popular SKU, economy and loose packs. If you sell festive hampers, don’t only go for the big ones, offer your shoppers smaller an affordable hampers too.

3. Keep Up with the TrendSuccessful retailers always follow consumer trends. However, do not be quick to judge on the overall trend because it may not apply to your shoppers. Respond to their momentum. For example, if a majority of your shoppers are health-conscious, emphasize on healthier foods, drinks (eg ‘less, less sweet’ products) and health preparations.

4. Promote Actively

Be friendly with your shoppers. Talk to them about their festive preparations and take the opportunity to give them suggestions on good quality products. Tell them about promotions that you are conducting. When a festival is nearing, give warm festive greetings to those who celebrate it. You can choose to produce leaflets to promote your shop but if your shoppers are happy with your service, they might help you to spread the good news around.

Use the festive season especially the Chinese New Year as a time to drive your sales. Kick start the new year with good, profitable festive sales. Good luck!

CONCLUSION

MAKE THE MOST OF THE FESTIVE SEASON

We hope that knowledge on festive food traditions and popular categories will be beneficial to you. Additionally, you need to practise good retail management in order to maximise your festive sales. This is especially important, considering the current gloomy economic situation. For many, success in this festive period will have a major bearing on their financial health throughout the new year. Here are some pointers on how you can get started.

Stephen Tan & Freda Abd Manan – Runcit Malaysia

RENCANA RUNCIT


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1. The Right AtmosphereInvite your shoppers into the festive mood. Decorate according to the Chinese New Year theme. Don’t overspend though, shop wisely for decorative items. You and your staff may even wear red shirts and aprons. And to complete it, play some Chinese New Year songs. You should also make it a point to interact with your shoppers. If you’ve never talked to your shoppers before, this is a good time to start. If they are Chinese, don’t forget to wish them a Happy Chinese New Year!

2. The Right Service Shoppers are usually very busy during festive season so they would definitely appreciate good and smooth service in the shop they visit. Therefore, you may want to provide extra service (eg home delivery) for your loyal shoppers and those who spend to a certain amount. You may also hire some temporary staff to ensure smooth traffic. For all you know you may be too busy to tend to all your shoppers.

3. The Right GiftsRewarding shoppers is a clever way of marketing. Not only will shoppers feel appreciated, they will visit your shop more frequently when they feel comfortable and happy with the service you provide. Chinese New Year is all about luck and prosperity. Therefore, you may want to give away kam (mandarin orange) or lottery ticket, preferably to enclose it in a red packet or Ang Pow, to your shoppers. For an element of surprise, if budget permits, reward your loyal shoppers and big

spenders with free Ang Pows for their own use and specially printed shopping bags. You may also conduct festive promotions. Do some research on neighbouring stores. Don’t do what they do; instead, do different ones or even similar but better promotions.

4. The Right NewsSo you’ve got the right atmosphere, offerings and gifts. Now all you need to do is spread the good news around. There are a number of ways to do it. It may require a small investment but it would be worth it. Create leaflets with your shop’s name, phone number and details of your Chinese New Year promotions. To get their attention, your leaflet should be attractive. If you cannot afford colour printing, just use coloured papers. Remember, bright ones are more eye-catching. Also, zoom in on details like discounts and mystery gifts. If you want to be unique, create a leaflet that contains only details about your shop, Chinese New Year greeting and invitation to celebrate it at your shop that has everything they need for an auspicious Chinese New Year.

Make use of these tips and you can rest be assured that business would be extra smooth and profitable this Chinese New Year!

MESRA RUNCIT

JOYFUL FESTIVE SHOPPING EXPERIENCE

Tips for better customer service this festive season.

End of year marks the coming of festive season. Take this opportunity to cultivate friendships with your existing shoppers and get new ones at the same time. Now that we are nearing Chinese New Year, you should be prepared to provide the best customer service. Here are some tips for you to do it right.

Chow Nyuk Loong & Freda Abd Manan – Runcit Malaysia


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ORGANISE YOUR PRODUCTS

For better festive sales.

Festive season usually brings in more business for retailers like you. Shoppers usually shop for specific products to suit their needs for the season. Therefore, it will definitely pay to reorganise your products. Your efforts will surely pay off well.

KEDAI RUNCIT

FESTIVE SPECIALITIES

Products that shoppers buy specifically for the festival (eg lap cheong & mandarin oranges for Chinese New Year, instant nasi impit & ground peanuts for Hari Raya, ghee & spices for Deepavali and cake ingredients for Christmas).

1. Know the traditionsRead up on festive traditions and trends (eg our article on festive foods this issue). You’ll know more of what people want and need for each

festival. Once you do this, you can decide on which to add on to your offerings.

2. Specific areas Don’t mix these items with the rest of the things you sell. Shoppers may not realise you have it. Allocate a space for festive specialties. We suggest you use the space at the entrance of your shop.

FESTIVE NECESSITIES

Demand for products like rice, cooking oil, sauces and soft drinks tend to increase during festive season.

1. Enough stocksA couple of months before the season, check stocks level and order sufficiently for the sales you expect.

2. Easy to findUse directional signs to indicate where these items are located if you cannot move them to a better place.

3. Easy to reachEye level is buy level, so move these items to make it easier for shoppers to grab them. Don’t lay stocks on the floor (over-stocking usually causes this); it is dangerous and makes your shop appear untidy.

4. Ready to go For packable items (eg ice cubes, dried chillies, potatoes etc), pre-pack them in suitable quantities to speed up sales. Your shoppers will surely appreciate the convenience.


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OTHER PRODUCTS

Take advantage of the heavy traffic in your shop to drive sales of products that shoppers may not need to buy during festive season (eg soap, detergent, sweets and chocolates).

1. Mount promotionsRegular items may look special if you know how to dress them. Consider bundled promotions, price off discounts, mystery gifts etc.

2. Maximise impulse purchasesYour shoppers may come with children. Make use of their presence to increase sales of items like batteries, sweets etc. These items are best placed near or at the checkout counter.

Having said all these, you can also create your own point-of-sale materials or get them from the suppliers. This will enhance your display and generate more impact. Good luck!

KEDAI RUNCIT



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BE A MODERN RETAILER

Change your mindset, improve your business.

Here’s how you can start thinking, working and profiting like a modern retailer even without a university degree, a big budget and a lot of time!

PASSIONIt gives you ideas and drive!

1. Educate Yourself People always want to learn more when they are passionate about something. And their passion increases as they gain more knowledge. Learn more about business by reading widely, keenly observing other establishments and discussing about it with other people like yourself. It’s a good idea to learn how to use the computer so that you can surf the Internet and discover a whole world of knowledge, tips and inspiration.

2. Be an AdvocatePassionate people love to tell others what they know. Feel free to chat with your shoppers and recommend products that you think will serve their needs well. You might also consider spending a little money to produce promotional flyers to tell your neighbourhood about your shop and the services (e.g. home delivery) you provide.

3. Be AwareThe modern trade is very passionate about shoppers and spend time and money to study them. You should take the same interest in your shoppers, too. Take note of who visits you. What is their income bracket? What times do they like to shop? What products could they need from you?

URUSNIAGA RUNCIT


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URUSNIAGA RUNCIT

ACTIONSuccess = 10% inspiration + 90% perseverance

Freda Abd Manan – Runcit Malaysia

1. Serve with Excellence Shoppers buy less when they are unhappy. Be friendly and courteous. Train your employees in

customer service skills. It is easier to deal with complaints or promote new products when your shoppers are your friends. Build loyalty by showing your shoppers that you care about them.

2. Be Helpful Provide useful services in your shop. Your community might be very grateful if you could provide postal, fax or computer services.

3. SocialiseMix with the people in your community. Join in or organize some activities, like a donation drive for the poor. This will not only build a good reputation for you, it will also give your business a bigger network of potential shoppers. Modern retailers spend millions on advertisements but getting yourself known as a friend is a cheap and effective way to advertise!

4. Strive for ProfessionalismMake sure you receive the Runcit Magazine regularly and update yourself with the latest Management skills in conducting your business. Our Team of Runcit Field Supervisors is also at your disposal, whenever they call on you to discuss on new business opportunities.


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SETTING YOUR FINANCIAL PRIORITIES

Towards better financial management and brighter future.

As a continuation to our financial management series, we present to you a guide on how to set your financial priorities. Learn how you can benefit from your profit and even your loss.

The Right Purpose

Why are you in business? If you can’t answer this, you may be in trouble. Not knowing why you do what you do is like driving a car to an unknown destination. You’ll spend a lot of time and energy but you’ll get nowhere. In business, you have to be ambitious. Let the right purpose serve as your drive to succeed. If you started business to support yourself and your family, you may want to think of expanding once your business is stable. In order to do this, you’ll need to save and invest for the future. However, without proper financial management, it is hard to reach your goal.

Barriers to Success

In the previous issue, we demonstrated how drawing on company’s money for personal use could ruin you and your business. This

mistake is so common among small business owners. When personal money and the company’s are not distinguished, expenses too will be mixed up. It gets worse when priorities are put on personal purposes and the unnecessary. Company’s debt will be mounting and soon your efforts will amount to nothing. You will also find it very hard to trace your business performance, current financial situation and the future of your business. This is why some retailers go out of business while others stay at the same level even after so many years in business. Making the Right Moves

All it takes to set your financial priorities is to take a disciplined approach towards knowing your detailed financial situation. One way to do it is by monitoring your profit or loss every month. Here are some reasons why you should do it:

• Encourages you to be more professional in meeting business obligations.

• Makes it easier for you to estimate your personal monthly income.

• Prevents you from taking the company’s funds for personal expenses.

• Helps you see how your business is performing.

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Profit or Loss?

Step 1Calculate the following:

o Your estimated monthly sales, in order to enable you to work out your gross margin, A.

o Your estimated monthly overheads (eg *your own salary, staff salaries, shop rental, shop utilities etc), B.

o Your monthly working capitals (eg to pay suppliers, buy new stocks, pay loan instalments), C.

o Your estimated incidental expenses, D.

Step 2

Use this formula: A – (B + C + D) = E

Step 3If E is:

o A positive amount, you get a profit. It is in your own interest to monitor your performance very closely to ensure that your monthly profit objective is met.

o A negative amount, it is a loss. To avoid this from reoccurring, revise the amounts for B, C and D. Cut down

where possible without compromising the necessaries.

*Note: This month, begin with an estimated salary that you think you deserve. Then, work on it to get a more suitable amount in the following months. Do take into consideration your car & home instalments, home utilities, the children’s tuition etc.

URUSWANG RUNCIT

The Final Rewards

The shop’s money is always there for you so disciplining yourself may be a little bit hard. However, some determination will go a long way to help you get a clearer view of your financial situation. Every year-end, you’ll be able to see how good or bad your business has performed. Hopefully then, you’ll be more motivated to improve your business and reach your personal goals. Good luck!

Next Issue: Setting Monthly Budgets



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Influencing Food & Health-Related Product Purchases

In-store point-of-purchase media can play a major role.

Information conveyed through in-store point-of-purchase (POP) media had a greater influence on final food purchase decisions than any other means of product communication. POP media also rated highly in purchase decisions for health-related products.

These findings emerged from a survey conducted in 2005 by Decision Analyst, a marketing research and consulting firm in Arlington, Texas, USA.

Asked what types of information influenced their final purchase decisions, a group of nearly 600 consumers cited information obtained from POP media more often than that which is obtained from TV, print or radio advertising, direct mail, the Internet or even word-of-mouth advice.

According to the study, POP media had a relatively powerful effect in the food category, where 46% of respondents noted it as an influence, followed by print ads at 29% and word-of-mouth at 24%.

For the purchase of health-related products, the effect of word-of-mouth advice (34.6% of respondents) was only marginally better than POP media information (33.7%). Men more often identified POP media than word-of-mouth (36% vs 30%); among women, the opposite was true (40% vs. 32%).

Decision Analyst conducted the survey as part of a larger study on consumer attitudes and buying habits using the company's American Consumer Opinion Online Panel.

Article adapted from www.instoremarketer.com

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The Power of In-POPExtending visibility, ensuring purchases.

The shop is the final frontier for every retailer and brand owner. This is the final place where products and brands need to compete against one another to ensure purchases of their brands. To succeed, their point-of-sale (POS) materials should be tailored to meet their objective of standing out among the rest.

Through our In-Store Point-of-Purchase (In-POP) mediums, Tri-Angle (Tri-A), Shelf Edge(SE) and Shelf Violator (SV), we make sure that consumers are reminded of brands by placing them at highly visible spots and where they are located in the shop. We make shopping easier for consumers, be it planned or unplanned.

MEDIA RUNCIT

The Power of Tri-Angle (TA)

• 3-dimensional effect – visible from the entrance, in between the shelves and even at the back of the shop.

• Placed at the most suitable height (6.5 feet from the floor) so that consumers can easily see the advertised products.

• Greeting shoppers as they enter the shop (depending on store layout).

• Decorating your shop by filling up spaces in between the shelves.

The Power of Shelf Edge (SE) and Shelf Violator (SV)

• Directing consumers to the shelf where the advertised product is located.

• Making brands stand out by blocking other brands’ messages in a cluttered environment.

• Two-way advertising – consumers can see your brand whether they come from the front or back of the shop.

• Placed at eye-level (2.5 feet from the ground) to increase brand awareness and encourage purchases.


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INSTALLATION OF TRI-ANGLE (Tri-A)

PREPARATION1. Fold Tri-A poster together.2. Lock Tri-A poster to the plastic pole in the

middle.3. Attach completed Tri-A poster to the con-

nector pole.

INSTALLATION4. Install completed Tri-A unit to the bracket

installed at the gondola end.

INSTALLATION OF SHELF EDGE (SE) / SHELF VIOLATOR (SV)

PREPARATION1. Mark & drill hole for screw.2. Screw bracket to the drilled hole.

INSTALLATION3. Install poster to the bracket.4. Screw completed unit of SE/SV to the

bracket.

MEDIA RUNCIT

All our In-POP mediums need to be in good condition at all times for maximum impact. Therefore, we have Standard Operating Procedures (SOP) for the installation processes.

Maintenance is key. We do the following to maintain our In-POP:

• Repair Tri-A/ SE/ SV

• Change poster

• Replace missing poster

• Removal of Tri-A/ SE/ SV upon expiry

• Relocation of Tri-A/ SE/ SV

• Removal of blocking items

For further enquiries, please contactMs. Chua Soah Sen

Sales Operation ManagerRuncit Media Sdn. Bhd, Suite 12.01, 12th Floor, Menara Merais,No 1 Jalan 19/3, 46300 Petaling Jaya, Selangor Darul Ehsan.

Tel: (03) 7957 1718; Fax: (03) 7956 5109; E-mail: [email protected]



PAGE 22 OF 29

HAVE A GREAT START IN 2009

Dear retailers,

This is the last issue of 2008, we wish all of you a great start in 2009 and that your business will

continue to flourish. 2008 is really a challenging year. Slowdown in the economy has greatly affected the purchasing pattern and consumption level of consumers. The overall situation is further aggravated by the unexpected petrol price hike announced by the government in June 2008 that has affected most of the categories in the FMCG industry. However, reduction of petrol price for several times in recent months has put the rising prices of consumer goods on hold, at least for the time being. With this positive move we hope that the suppliers and the traders will make some reductions to their prices, in order to benefit the consumers.

The start of the new financial year is also the time to review your past performances and to be made fully aware of your strengths and weaknesses. This is the time to make new resolutions and face new challenges. You must strive hard for improved productivity and efficiency levels. The following are some of our observations for 2008:

• There is a sudden surge in the sales of smaller SKUs with decreasing consumers’ purchasing power.

• The consumers, especially those in the semi-urban and rural areas, are resorting to buying cheaper alternatives.

• Consumers are buying only what is necessary, in smaller quantities and at more regular intervals.

With this change in consumers’ shopping habits, you have to be fully alert at all times so that you will not be caught completely off guard! We know for a fact that most retailers have generally taken the necessary corrective actions. However, you must not be too overly cautious to the extent that your

sales are affected and also you run the risk of losing some of your customers to the neighbourhood stores! These are some key areas that you have to seriously reconsider:

• Drastically reducing the inventory holding. Avoid running out of stock. It might cost you loss in sales and customers.

• Stock only the high turnover items. Strike the right balance in your clientele base. Have both fast selling and slow selling items in quantities that you think can surely be sold.

• Do not list in any new products. Place a small trial order for new products so that you can provide good customer service not only to your regular shoppers, but also to new customers.

• Range availability missing. This is also another area which could cost you your sales and your customers. There is no ideal situation and you are the best judge to determine the needs and wants of your customers! Having said this, you also cannot afford to stock everything to cater for everybody! Your final decision hinges very much on the following:

• The size of your shop

• Your locality

• The make-up of your clientele base (ethnic group/household income/etc)

• Your direct competitors in the sur-rounding areas.

This exercise is never easy. However, if you know your business and your customers well enough, you should be able to strike the right balance. Remember, in retailing, it is not just about solving the cash flow. In times of the economic downturn, to ensure an on-going business, sales and customers related areas too have to be given the due consideration! Finally, we hope all of you will put 2008 behind and look forward to a great start in 2009. All the best!

PAK RUNCIT

Chow Nyuk Loong – Runcit Malaysia


PAGE 23 OF 29

HAMPER-PACKING SERVICE

Pasar Mini U-Mart owned by So Soon Seng has been operating since 1986. Apart from selling quality goods and providing friendly service, So also provides hamper-packing service in his shop. The service is provided based on demand but So regularly receives orders from factories, schools and private companies. Every year, orders would increase during Hari Raya and Chinese New Year. Usually, his hampers are priced between RM50 to RM1000, depending on the content of each hamper. So allows his shoppers to choose items to be included in the hampers. So’s staff are very productive that they are able to pack up to 100 hampers per day.

Name: So Soon SengName of Shop: Pasar Mini U-MartTown: Kemaman, TerengganuFS: Mohd Rodi B Mohd Nor

GUESS & WIN CONTEST WITH NESTLE

When Nestle’s representatives approached Tan Hooi Kuan to conduct the Guess & Win Contest with Nestle, he welcomed them with open arms. The contest that went on from August 1 till September 15, 2008 was a hit with Tan’s shoppers. Shoppers were only required to purchase Nestle products worth RM5 and above to be eligible for the contest. Those who participated had to guess the number of Nestle products that were placed in a locked box. Tan was glad that the contest was well-received and helped to increase his sales.

Name: Tan Hooi KuanName of Shop: Excell Three Super CentreTown: Pokok Sena, KedahFS: Mohd Rodi B Mohd Nor

DEBIT MACHINE FOR CONVENIENCE

Realising that shoppers are getting busier by the day, Lim Chong Siang wanted to do something to ease their burden. He decided that a debit machine would help. With the debit machine, Lim’s shoppers can pay their electricity, water, Astro, Maxis, Celcom and Digi bills. They can also top up their Maxis, Celcom, Digi and IDD cards. Lim’s shop has become a convenient stop since his shoppers can do their daily shopping and pay bills at the same time. Lim could see that his effort is paying off well with the increase in both the number of his shoppers and sales.

Name: Lim Chong SiangName of Shop: Pasaraya Lim HengTown: Kepong, Wilayah PersekutuanFS: Ng Chin Chai



PAGE 24 OF 29

ENSURING VALUE & INNOVATION

Pepsico (Malaysia) Sdn Bhd is set to keep surging ahead despite tougher market conditions.

Pepsico (Malaysia) Sdn Bhd has been actively strengthening its brands, including PEPSI, MIRINDA, 7UP, REVIVE, LIPTON ICED TEA, TROPICANA TWISTER and QUAKER OATS. The efforts have enabled the company to achieve double-digit growth in recent years and also given it reason to be optimistic about the coming year. In this section, the General Manager of Pepsico (Malaysia) Sdn Bhd, Mr Jagrut Kotecha shares his view on the direction of the food & beverages market, and how retailers can rely on the company’s strengths.

“Will the convenience food & beverages market grow next year?”

The US financial crisis has not affected the Malaysian economy too much but there will be some changes in consumer habits. For example, people will still continue to eat out but they will opt for cheaper eateries. Aside from this, consumers will also want their refreshing drinks, thus continuing to drive at-home, on-the-go or on-premise consumption. Both situations will ensure that the convenience food & beverages market continues to grow.

“How can consumer loyalty be maintained?”

Consumers want products that provide a real benefit. They want the total combined offering that consists of product quality, range, price and promotion. QUAKER OATS is a fine

example; the ‘healthy heart’ promise is driving strong growth. Consumers’ perception of product value is crucial, especially when consumer sentiment is low (eg during an economic downturn). They would rather spend a little bit more on a brand that they trust, rather than spend less on an alternative brand that might leave them disappointed. So as to enhance value, we also keep differentiating our brands from their competitors through innovation. For example, REVIVE is the only isotonic drink with B-vitamins for the extra energy boost while TROPICANA TWISTER orange drink contains real fruit pulp.

“What are the roles of Permanis & Lipton to Pepsico’s business?”

Collaborating with outstanding partners strengthen our brands. In carbonated soft drinks and fruit beverages, we work closely with Permanis. Pepsico Malaysia focuses on brand management and product development while Permanis concentrates on product manufacture, sales and distribution. Our ready-to-drink (RTD) tea business comes under a joint-venture company called Pepsi Lipton International (PLI). Through PLI, we are able to synergise Unilever’s tea expertise and our expertise in RTD and on-the-go impulse product marketing.

“What is your opinion on the traditional trade?”

The traditional trade is an important distribution channel for Pepsico Malaysia products. That’s why we develop appropriate SKU (stock keeping units) and ensure that our product launches benefit the retailers. However, the retailers themselves need to know what drives their business and be open to working with us. For example, carbonated soft drinks and fruit drinks give good margin and you can maximize your sales by driving impulse purchases. Placing a chiller in front of your shop will surely help (please contact Permanis at (03) 2168 7333 for any queries). You may be getting high profit return and not just enough to cover your electricity cost.

Jagrut Kotecha, General Manager,

Pepsico (Malaysia) Sdn

SAHABAT RUNCIT


PAGE 25 OF 29

FUN FOR YOU, GOOD FOR YOU

Edwin Africa, Marketing Director of Pepsico Malaysia explains how the company’s balanced product portfolio is driving its growth.

Variety is the spice of life! This is one of the secrets behind Pepsico International’s success worldwide. Knowing too well that consumers demand choices, the company wanted to present a portfolio that ranges from indulgent treats to products that are good for health. So, from 2002 onwards, it acquired QUAKER OATS and TROPICANA, and added LIPTON ready-to-drink (RTD) tea. Effort was also made to introduce healthy product variants within existing brands, eg PEPSI MAX (full flavour but without sugar) and baked (not fried) DORITOS corn chips. Today, Pepsico is able to drive both the ‘fun for you’ and the ‘good for you’ product segments. It was a timely move that consumers were already waiting for.

The balanced portfolio is driving our growth in Malaysia but we have had to work hard to win the hearts of consumers. They are modern and demand that we identify and deliver what they want. We are pleased to have success-fully responded to them with products that offer the range, functionality and value they seek. The results are clear. Our carbonated soft drinks are continuing to grow.

So too are our isotonic drinks. More remarkably, our fruit beverages, RTD tea and hot cereals (oats) are surging with double-digit growth.

We are today one of few companies that has managed to earn the full confidence of consumers and retailers, alike. Our brands have tremendous consumer pull, regardless whether economic tides are up or down. At store level, our products have strong flow-through and will not be sitting on the shelf for months on end. We want you to enjoy the returns on our investments in brand-building and the quest to constantly deliver value.

Edwin Africa, Marketing Director,

Pepsico (Malaysia) Sdn

Brand Facts

WORLD’S FAVOURITE HEART-HEALTHY OATS

• Burgeoning hot cereals market. Malaysia has the highest consumption per capita of hot cereals (oatmeal) in all of Asia. Malaysians eat even more oatmeal than Australians!

• Good for the heart. We have been working with The Heart Foundation of Malaysia and mounting the nation-wide QUAKER Smart Heart Challenge programme to educate consumers about preventing heart disease. More consumers today are aware that daily intake of oats

provides a type of soluble fibre that helps reduce high cholesterol.

• Exciting taste of health. Like rice, there are so many ways to make oats taste more exciting. Thanks to our creative recipes, more consumers are now enjoying QUAKER OATS.

• More Malay consumers are eating oatmeal today. Our Ramadhan promotions and other marketing efforts have paid off. The Malay consumer segment has grown to be larger than the Chinese, and both are growing equally.

SAHABAT RUNCIT


PAGE 26 OF 29

SAHABAT RUNCIT

Brand Facts

LEADER IN READY-TO-DRINK TEA

• Any time, any place. Malaysian consumers are big tea drinkers. Thanks to the joint-venture, Pepsi Lipton International, they can now enjoy LIPTON, the world’s leading tea brand, in RTD format any time, any place.• Taste the difference. RTD LIPTON comes is three variants: ICE Tea with tangy lemon, CLEAR GREEN and the highly innovative RED TEA (Rooibos tea from South Africa).

NOBODY KNOWS JUICE BETTER

• Solid entry. What better way to cater to health-conscious consumers than bringing America’s No 1 fruit juice brand from the sunny orchards of California to Malaysia.

• Whole new level. The successful launch of TROPICANA TWISTER in delicious Orange and Apple met tremendous consumer response. With high visibility, unique PET packaging and a great taste, our product is driving the fruit drink market to a whole new level.

• Shaping the market. TROPICANA is working with the nutrition experts to mount ‘Take 5 A Day’, a consumer education programme on daily fruit and vegetable intake. Consumers are also taught about the benefits of 100% pure fruit juice.

FIZZ FOR EVERY OCCASION

• Celebration awaits. PEPSI, 7UP & MIRINDA continue to grace every festive occasion. Especially with the Chinese New Year around the corner, be sure to stock up.

• Need a boost? The only isotonic drink with B-vitamins, REVIVE rapidly refreshes and re-hydrates the body. Comes in great-tasting grapefruit flavour.

• Grab them! Besides having the cans (325 ml), thirsty consumers also have the choice of 600 ml and 1.5l PET bottles with a slim profile, designed for easy gripping.

Stephen Tan – Runcit Malaysia


PAGE 27 OF 29

Understanding Melamine

Here’s what you need to know and do, if you think fears about melamine contamination is affecting your sales.

In September 2008, the world’s media explodedwith news of children falling sick and dying in China as a result of consuming milk contaminated with high levels of melamine. This led to the discovery of melamine contamination in other foods as well.

The reports quickly drove the Malaysian and other governments into action – to conduct checks on food products and ban those found to contain dangerous levels of melamine.

Certain imports from China were stopped. Locally, food manufacturers also submitted their products for checking. Brands found to be contaminated were taken off the shelves. However, companies that were given clearance by the Ministry of Health (eg Nestle, Cotra, Fonterra, F&N, Abbott and so forth) quickly published newspaper advertisements to assure the public that their foods were safe to consume. Many also declared that they did not use milk ingredients from China.

However, fear of kidney failure and confusion over melamine created doubt among consumers in Malaysia and elsewhere. For no good reason, some stopped buying certain products, changed to other alternatives (eg taking soya milk instead of cow’s milk) or switched brands. If you experienced this in your shop, you’d agree that sales could be affected.

As a retailer, rest assured that the government is continuing to carefully manage the situation. However, there are still a few things that you can do to help your business as well as your consumers.

1) Be well informed. Read our accompanying article, “Facts About Melamine”.

2) TRUST LEADING MANUFACTURERS. They will not want their reputations for food safety tarnished. So, they will cooperate with the Ministry of Health in the interest of protecting consumers against food contamination.

3) SHARE THE FACTS. If your shoppers are still wary, tell them what you have learned from this article. Encourage them to visit the Ministry of Health Malaysia website fsq.moh.gov.my or to call the manufacturers’ hotline.

ISU SEMASA


PAGE 28 OF 29

Facts About Melamine

What is melamine?• It is an industrial chemical used to

produce plastics, adhesives, countertops, dishware, whiteboards as well as

fertilizers.

Melamine in food• Melamine is found throughout the food

chain across the world in very small amounts that do NOT present any health risk for consumers.

• Melamine can also be present at very low levels through transfer from adhesives and plastics containing melamine that come into contact with food. Occurrence of melamine at these levels is permitted and is well below the safety limits established by government health authorities.

The China contamination crisis• As was recently discovered, some

unscrupulous parties in China deliberately and illegally added melamine to milk. The melamine (which is high in nitrogen) was intended to artificially increase the apparent protein content when the milk was measured with standard tests. It was an attempt to hide the fact that the milk had been diluted with water.

• It is possible that the melamine that was added also contained an impurity, called cyanuric acid. The combination of high levels of melamine and cyanuric acid would account for the serious effects seen in children in China. The contamination of milk is particularly serious for infants who rely on milk for most of their nutrition.

Risk assessment and safety standards• Before the melamine contamination crisis

in China, Governments did not have any standards in place.

• Today, most governments (including the Ministry of Health Malaysia) have set permissible levels of melamine at set at 2.5 parts per million (ppm) for adult food products and 1 ppm for baby food.

Testing for melamine• There are several methods to test for

melamine.• Most methods can easily distinguish

between high (dangerous) and low level (safe) levels of melamine.

• It remains difficult to detect melamine when it is present at very low levels.

Article in collaboration with

ISU SEMASA

Stephen Tan & Chua Siew Ching – Runcit Malaysia


PAGE 29 OF 29

OVEREATING!

A Bad Festive Habit

Every festive season, we will be served with a variety of delicious and irresistible foods. Yes, they are to be enjoyed but you should not overeat. Be it accidental or deliberate, overeating may lead to so many problems.

Problems Caused by Overeating

• Makes you too full to sample delicious foods at the rest of the houses you visit.

• Creates trouble in the tummy that may interrupt your visiting rounds.

• Adds unnecessary kilos without you noticing it.

• Worsens overweight/obesity problems.

• Increases risk or problems of pre-existing heart disease, high blood pressure, diabetes etc.

GAYA HIDUP

Tracy Lew, Corporate Nutrition Advisor

Marketing Services UnitNestle Products Sdn Bhd

Avoid Overeating

• Plan your culinary adventure – consider the number of houses you’re going to visit and eat accordingly.

• Eat in small portions – you may enjoy the variety of foods but watch the intakes.

• Control your fat intake – eat less or avoid fatty foods (eg oily & sweet dishes).

• Watch the alcohol – it contains high amount of calories (7kcal/g) which is close to the content of calories in pure fat (9kcal/g).

• Walk the extra steps – be happy that there is no parking nearby an open house as walking will help you burn calories.

Serve Healthy Foods

Be responsible to your family and guests. Practice healthy cooking habits when preparing festive foods:

• Use less salt and sugar.

• Try different cooking methods. For eg, steam or stir-fry foods instead of deep-fry.

• Reduce fat in the dishes. Try replacing coconut milk with low fat milk.

• Add more vegetables for fibre. Cut in small pieces to make it less noticeable to the kids.

• Serve fresh fruits. Replace sweet desserts with these great sources of fibre.

For more information, please contact Nestle’s Toll-Free Line at 1 800 88 3433

Article in collaboration with

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