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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
EXTERNAL ANALYSIS
General Environment (PESTLE)


SITUATIONAL ANALYSIS
EXTERNAL ANALYSIS
Porter Five Force Analysis

The bargaining
power of buyers
High

The threat of
potential new
entrants
Medium


The competitive
rivalry among
existing competition

The threat of
substitutes
product & service

The bargaining
power of suppliers
Low


SITUATIONAL ANALYSIS
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 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


SITUATIONAL ANALYSIS
INTERNAL ANALYSIS
Value 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.


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


SITUATIONAL ANALYSIS
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.


SITUATIONAL ANALYSIS
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.


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, 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.



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
2
1
4
5

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

6
3
4
3

-5

Profit Potential

4

-22

Industry Position (IP) Average

-17

20



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