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PRESENTATION AEON 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 STRATEGY ANALYSIS TARGET MARKET INDUSTRY ANALYSIS MARKETING MIX NEW VISION, MISSION AND GOALS CURRENT MARKETING STRATEGIES SITUATIONAL ANALYSIS MONITORING AND CONTROL RECOMMENDATION INTRODUCTION 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 Vision To 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 TARGET MARKET & POSITIONING MARKETING MIX MARKETING MIX CURRENT MARKETING STRATEGIES 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 SITUATIONAL ANALYSIS 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 SITUATIONAL ANALYSIS 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 SITUATIONAL ANALYSIS 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) SITUATIONAL ANALYSIS 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, bazaars, 54 mini markets (MyAEON), convenient stores (MyMart) and franchise outlets (AEON Mart) Each of the hypermarkets is located in AEON Malls STRATEGY ANALYSIS SWOT ANALYSIS STRATEGY ANALYSIS SWOT STRATEGIES STRENGTH S1: AEON has pricing power, customers will continue using AEON’s products and services S2: Low cost leader can undercut rivals in price S3: Variety of choice can contribute to customer loyalty S4: the good brand name and wellknown to people recognize WEAKNESSES W1: AEON has less of space or capacity to in store their goods W2: The management in AEON is not strong W3: Lack of customer services OPPORTUNITY O1: The online market offer AEON the ability to greatly expand their business O2: Trough capture new market they can diverse their portfolio of products and services O3: By going global, AEON have a new opportunity SO STRATEGIES SO1: 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 STRATEGIES WO1: To reduce the number of product placing (W1,O1) WO2: AEON need to improve their management to cater needs of new market(W2,O2) THREATS T1: AEON have to compete with other hypermarket T2: Competitors offer similar products range SO STRATEGIES ST1: Improve the services to build long-term relationship (S3,T1) ST2: Maintain lower price (S2,T2) WT STRATEGIES WT1: AEON need to be alert with competitor changes by give a good customer services (W3,T1) WT2: Provide a large space to store STRATEGY ANALYSIS 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 Internal analysis Financial position Return on investment Leverage Liquidity Working capital Cash flow Financial position (FP) average Internal analysis Competitive Position (CP) Market Share Product quality Customer loyalty Technology Know-how Control over Suppliers/Distributors Competitive Position (CP) Average 4 External analysis Stability position (SP) Rate of Inflation Technology Changes Price Elasticity of Demand Competitive Pressure Barriers to Entry into Market -2 -6 -4 -4 -1 16 Stability Position (SP) Average -2 -3 -6 -6 External analysis Industry Position (IP) Growth Potential Financial Stability Ease of Entry into Market Resources Utilization -5 Profit Potential -22 Industry Position (IP) Average -17 20 STRATEGY ANALYSIS SPACE MATRIX Conclusion SP Average is - 17/5 CP Average is - 22/5 IP Average is + 20/5 FP Average is + 16/5 = = = = - 3.4 - 4.4 3.2 Directional Vector Coordinate: x-axis: - 4.4 + (+4) = - 0.4 y-axis: - 3.4 + (+3.2) = - 0.2 Coordinate (-0.4, -0.2) Conclusion: Vector points in Defensive Quadrant BALANCE SCORECARD A performance metric used in strategic management to identify and improve various internal functions and their resulting external outcomes Strategic Goal Target Strategy Increasing sales Potential Diversification of of demanded customer product range Working people Offers more priorities Financial product Customer Attract more people to convenient consume at AEON product Manager/employe Increase working e performance Potential worker Send them training to strengthen skill INDUSTRY ANALYSIS COMPETITIVE PROFILE MATRIX (CPM) AEON CRITICAL SUCCESS FACTORS: WEIGHT RATING TESCO SCORE RATING GIANT SCORE RATING SCORE ADVERTISING AND MARKETING 0.1 0.3 0.2 0.3 PACKAGING 0.1 0.2 0.2 0.2 0.1 0.1 0.2 0.2 BRAND LOYALTY 0.2 0.6 0.2 0.4 CUTOMER TASTE 0.1 0.2 0.2 0.1 PRICE 0.4 1.6 0.8 0.4 PRODUCT QUALITY TOTAL 1.0 3.0 1.8 1.6 INDUSTRY ANALYSIS IFE MATRIX (INTERNAL FACTOR EVALUATION) FACTORS WEIGHT RATING WEIGHTED SCORE STRENGTHS: Pricing Power 0.35 1.40 Cost Advantage 0.10 0.30 Consumer Loyalty 0.15 0.45 Brand Name 0.20 0.60 0.07 0.14 0.03 0.06 0.10 0.20 Less Space WEAKNESSES: Weak Management Customer Service TOTAL 1.0 3.15 INDUSTRY ANALYSIS EFE Matrix (External Factor Evaluation) FACTORS WEIGHT RATING WEIGHTED SCORE 0.20 0.40 New Markets 0.25 0.75 International Expansion THREATS: 0.10 0.20 0.20 0.60 0.25 0.75 OPPORTUNITIES: Online Market Intense Competition Substitute Products-AEON TOTAL 1.0 2.70 NEW VISION, MISSION & GOAL Vision The vision of AEON is that every person has a home and is interconnected within community Mission The mission of AEON is to create and sustain quality affordable homes that strengthen lives and communities Goals The goal of AEON is to operate as an “international-scale retailing group”, recognized for excellence not only in Japan, but also in other nations RECOMMENDATIONS Enter global market Improve Quality Understanding customer and employee need  Store Appearance Promotion of own house brand product Improve management operation Staying Focus Business Model  CONCLUSION 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 [...]... WEAKNESSES W1: AEON has less of space or capacity to in store their goods W2: The management in AEON is not strong W3: Lack of customer services OPPORTUNITY O1: The online market offer AEON the ability to greatly expand their business O2: Trough capture new market they can diverse their portfolio of products and services O3: By going global, AEON have a new opportunity SO STRATEGIES SO1: AEON can selling... markets (MyAEON), 9 convenient stores (MyMart) and 6 franchise outlets (AEON Mart) Each of the hypermarkets is located in AEON Malls STRATEGY ANALYSIS SWOT ANALYSIS STRATEGY ANALYSIS SWOT STRATEGIES STRENGTH S1: AEON has pricing power, customers will continue using AEON s products and services S2: Low cost leader can undercut rivals in price S3: Variety of choice can contribute to customer loyalty S4:... OPPORTUNITIES: 1 Online Market 1 Intense Competition 2 Substitute Products -AEON TOTAL 1.0 2.70 NEW VISION, MISSION & GOAL Vision The vision of AEON is that every person has a home and is interconnected within community Mission The mission of AEON is to create and sustain quality affordable homes that strengthen lives and communities Goals The goal of AEON is to operate as an “international-scale retailing group”,... on investment Leverage Liquidity Working capital Cash flow Financial position (FP) average Internal analysis Competitive Position (CP) Market Share Product quality Customer loyalty Technology Know-how Control over Suppliers/Distributors Competitive Position (CP) Average 4 2 1 4 5 External analysis Stability position (SP) Rate of Inflation Technology Changes Price Elasticity of Demand Competitive Pressure... 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 SITUATIONAL ANALYSIS Secondary Activities... (S3,T1) ST2: Maintain lower price (S2,T2) WT STRATEGIES WT1: AEON need to be alert with competitor changes by give a good customer services (W3,T1) WT2: Provide a large space to store STRATEGY ANALYSIS 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... market Improve Quality Understanding customer and employee need  Store Appearance Promotion of own house brand product Improve management operation Staying Focus Business Model  CONCLUSION 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... INTERNAL ANALYSIS Generic Strategy SITUATIONAL ANALYSIS INTERNAL ANALYSIS Generic 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... 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 SITUATIONAL ANALYSIS Primary Activities Outbound... convenient consume at AEON product Manager/employe Increase working e performance Potential worker Send them training to strengthen skill INDUSTRY ANALYSIS COMPETITIVE PROFILE MATRIX (CPM) AEON CRITICAL SUCCESS FACTORS: WEIGHT RATING TESCO SCORE RATING GIANT 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 0.1 2 0.1 2 0.2 2 0.2 BRAND LOYALTY 0.2 3 0.6 1 0.2