MOHD ZAHRIL BIN MANSOR G1226641

HANI RADIAH BINTI HASSAN SHAARI G1228618

CASE REVIEW: MYDIN

Question 1

Marketing Strategy

Among the strategies that the company is currently using:

- Business activity is retailing and wholesaling a broad range of goods (eg: food line ,
households, soft & hard line items) at affordable price (low pricing strategies)
- Target market is from the diverse economic backgrounds, upbringing and educational level.
- Aggressive & Strategic placement for a newly development/ expansion of outlet.

Internal and External Environment Analysis

Internal Environment

STRENGTH
• Customer Loyalty - A Loyalty Card
which collecting accumulated points for
the customers to redeem with other
goods, which attracts every customer.
• Cost Advantages – Lower cost can
undercut rivals on price
• Pricing Power – Customers typically
rebel against price increases by switching
to competing products, but if a company
has pricing power, customers will
continue using Mydin’s products and
services.
• The Power of Brand – Reputation and
strong name that holds ‘MYDIN’ itself
holds thousands of confident among
different types of customers.
OPPORTUNITIES
• Global Expansion – Mydin only owns 55
outlet nationwide. A strategic plan can be
drafted, so that Mydin’s reputation can be
promoted worldwide.
• New Market – With a strong brand’s
name, Mydin could expand to other
sector aside wholesaling, such as hotels
or agriculture.
• Online Shopping – To compete with
current need of shopping trends.
WEAKNESS
• IT infrastructure DRC – They seems to
have bottleneck of networking problem
whenever several outlets wanting to
access the same database at a time.
• Customer Service – hurts Mydin the
most, and this may cause most customers
to flee to and look for other alternative
shopping spot.
• Mart Layout & Spacious issue – Lots of
customer means they need a bigger space
because the existing Mart (especially at
Masjid India branch) seems are no longer
can occupy thousands of attendance
especially during festive season..
Customer no longer enjoying their time
shopping in Mydin
THREAT
• Competition From Another Foreign
Wholesaling Players (in term of adding
new outlet) eg Giant ,Tesco, Carrefour
to name a few.
External Environment

STRENGTH WEAKNESS
• Good relationship & special collaboration • Level of confident from non-Muslims to
with governing bodies and policies spend their money at Muslim’s store.
Eg: involving in campaign such as Price
Cut Campaign, Buy Malaysian Products,
KR1M, accept KadS1M at all MYDIN
branches and etc
• CSR-helps small holders, local
businesses through its pricing program
and partnership.
• Expand the business/open branches in the
rural area to create more employment
opportunities and improve people
standard of living.

OPPORTUNITIES
• Increasing target market by breaking the
60% Muslim barrier to a higher
percentage or marketable target,
including the non-Muslim community.
• Arrival of new technologies to support
Mydin’s dynamic operation.
THREAT
• Uncontrolled Policies from Government
on bringing in new International label to
introduce/market their newly-product.
• Subsidiaries from the government and
price-hike on daily goods.
• Emergence of substitutes products

Question 2

Mass Market or Niche’ Market?

From our analysis, Mydin is currently operated in a mass market. The market coverage is focusing
on high sales and low prices. Mass Marketing aims to provide products and services that will appeal
to the whole market.

Mydin operates in a mass market because:

1. Sell ordinary product to very large number of people at quite-cheap price.

2. Deal with big number & bigger community
3. Use expensive form of media to reach out to people.
4. Advertising in radio and TV

Market Segmentation for Mydin

1. Target – Mydin is targeting lower and middle-income’s earners in a community, these

strategies also indirectly attract the higher –basis income to shop for daily uses goods. So, in
basically, maintaining low goals target always prints the better end-result.
2. Variety of Choices – Different group of people will shop different variety of goods. One
thing that proven successfully in the Mydin Marketing statistic, wholesaling strategy with low
cost embedded gives so many choices for retailers, small biz, offices & school and other
shopping community. People who own a small stationary shop will always choose Mydin
rather than other hypermarket for their stocks, by taking advantage of Mydin’s wholesale
prices. Purchasing stocks and bulk-prices will generates higher margin profit in the end.

3. Focusing on Halal Concept – ‘Ïf is not haram, we will sell it”. With approximately 60% of
Malaysians being followers of the Islamic faith, this goes down well with Muslims, especially
those looking for economic purchases. Mydin is embracing the concept of halal (permissible)
products. In accordance to Islam, nothing is haram (forbidden) unless it clearly declared as
forbidden (by the Qur’an or Sunnah).

Mydin’s emporiums cater for almost any need that fall into the categories of worship, apparel,
accessories, food, household goods, travel, fittings and furnishings, electronics, cars, digital
technology, children and even exercise equipment.

Mydin always believe the concept of ‘balanced way of life’. Why people should spend more
on goods that may have same view or taste at a very high prices. Less money spending at their
emporium could translated into other beneficial need, such as educational for children and
personal saving for future plans.

The halal market spectrum is widened even still. Mydin also caters for wholesalers and
retailers in addition to household consumers. Their target market is as halal-wide as their
range of products.
Question 3

Mydin retail strategies & formats for 10 years from now and strategies for further growth that meet
the challenges of global positioning.

Improving CSR (Corporate Social Responsibility) activities - Continuing their commitment by

business to behave ethically and contribute to economic development and at the same time improving
the quality of life of the workforce and their families as well as of the local community and society at
large. By improving this strategy, it will create a better understanding and perception among staff and
other entities that related to their management. This includes providing good coverage and act for
employees’ welfare as well as maintaining good relationship among staffs.

Improving Marketing Plan - aggressively promoting their store itself as compared to the competitor
.As for the Mydin’s current official website to give information throughout the community, contents
and layout of their website is slightly fine. But, that will only works on certain amount of people who
have access to internet usage. What about people in rural area? The company should also target the
community which is without having internet access. The best way to spread the information for this
target area is by creating pamphlet & distribute from home-to-home should add more advantages in
promoting Mydin’s product. The nearest example is what Tesco ,Giant and Carrefour did as for their
weekly promotional advert in the local newspaper. With plans to open more outlets in the next few
years, Mydin need to reposition itself as a major player in the business to attain larger customer
segment particularly the youth. In order to achieve this, Mydin required a new centric website to be
online gateway for marketing and communication activities, a portal for targeting and converting a
large customer youth segment as well as a platform for announcing events and activities such as new
stores, launches and promotions.

IT strategy, strengthen up or compete? – One way or another, Mydin’s existing IT infra should
have defined the strength of the organization in processing thousands of database of stocks and
customer in general. But, since the technology keeps changing periodically or steered dynamically,
Mydin should plan a specific strategy to compete with the current globalisation changes. For example,
Cloud Computing is somewhat popular nowadays. So what should Mydin do is to be able to ‘talk with
the same lingo’ throughout the global world. In which area that this technology suits with Mydin’s
existing infrastructure? Alternatively, if virtualizations are no longer able to cater millions of
database, Cloud Computing should be introduced as another perspective.

It is important to know what you are doing and do the things that you know. Always try to learn as
much as possible about development in retail industry and to improve in terms of merchandising,
warehousing, customer service, systems and information technology, point of purchase, tenant
management, marketing and promotions- everything under the sun;
ATTACHMENT

MALAYSIA HYPERMARKET WAR