99 SPEEDMART CASE STUDY

We will write a custom essay sample on 99 Supermarket specifically for you. Figure [ 5 ]: Figure [ 3 ] 3. This is accordance to the income elasticity of demand theory where when income of an individual increased, the demand for inferior product will decrease. As it is not possible for 99 speedmart to compete with Giant in terms of variety of k, it would have to rely on other factors to attract demand to their stores.

For increasing their demand, Giant have spending more money on advertising comparing to 99 speed market. It also represents more than just a rebranding exercise and entails the introduction of a fresh approach in interior as well as exterior set up to enhance the visibility of the shop and the comfort of shopping. This will cost them for losing many profit as their customer will purchase from other place. It is recommended to take the expansion plan in phases instead of covering the service in whole Peninsular Malaysia at a time. As for damage product and expired, the rules and regulation is being set to a store can only return a limited box to headquarters.

99 Supermarket

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. Thus the bad economy that happens recently also will impact how they use their money.

The payment will be cleared every time if the next order has been place to supplier to get better discount. Consumers will have more choice to select with cheaper substitutes available to satisfy their wants and needs. As for 99 Speedmart they are more focusing on Low income group, family house that earn less that per month.

Carrefour has reported in March that its profit has been dropped by Furthermore, Mr Lee has made the process of ordering and payment easy for suppliers and it will be done within 30 minutes.

Current Supply Chain Model As stated as section 2. 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.

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In order to speeding up the process, voice directed picking system is suggested to be apply. After 11 years of operating, they had almost branches and 3 distribution centre around the Peninsular Malaysia.

Orders will only be place when it reaches certain limit without actually overlook how long it takes to make their stock reach that level. This will also gradually minimize the effect of lead time and bullwhip that impacts their operation. The driver is expected to do a milk run to area assigned to them to casf daily replenish stocks. Enter the email address you signed up with and we’ll email you a reset link.

The recommended expansion schedule can be as stated on table 1. According to data obtain from Department of Statistical Malaysia figure 3both the state have a high density of population compare to Pahang state thus the area fairly smaller compare to Perak. For the place and location Giant will prefer speedart near around housing area such as condoapartmentsflat and terraced housesso that is more convenience for their customer.

It was founded by the Teng family in year In the yeara new head office and distribution centre was completed in October at a cost of RM6.

Both 99 Speedmart and Giant targeted low income or low to middle income demographics respectively, it is safe to assumed that 99 Speedmart and Giant sells both inferior goods and normal goods, while Giant hypermarket sometimes sells luxury goods such as wine to consumers.

99 speedmart case study

Changes for Cope with Service Expansion 4. Coupled with the fact that their target market is of the low income group, the pricing of products for 99 Speedmart has a very high elasticity and sensitivity. For example, even if the price of a product in Giant is slightly more expensive than 99 Speedmart, people would still go there to shop because of a better environment and more product choices. So I suggest that they should set a central distribution centres or such items where the item will be delivered in a milk run method from area distribution centre to another area speedmartt centre.

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By Rizwan Raheem Ahmed. Giant also allow customers to get their money back if they regret for their purchase. 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. The decision is not made in a hurry but stuvy with plans. Literature Review Cwse chapter: This can be seen from the newest distribution centre being set at Balakong Jaya which is near the North South highway.

As referring to figure 6, we can notice that 99 Speedmart is having a flat structure to speeding up the decision process. It’s headquarter is located at Shah Alam, Selangor. This is because Giant has advantages such as varieties of products, better environment and better public awareness that attracts demand. As for damage product and expired, the rules and regulation is sutdy set to a store can only return a limited box to headquarters.

The reason why 99 Speedmart got lower stock level was because they speedmatr of place for putting their extra stock so they will not order many at one time. In terms of variety of products and the environment, Giant obviously has the upper hand when it is compared to 99 Casf, this makes the pricing of product for stkdy Speedmart much more sensitive to consumer demand.

99 speedmart case study