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Aeon
1. 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)
3. 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.
4. 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.
5. 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
9. 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
10. 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.
12. 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
14. 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
15. 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.
17. 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.
18. 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.
19. 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.
20. 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)
21. 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.
23. 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 well-known 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 a
variety of products(W1,T2)
24. 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.
25. 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
-17
-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
20
26. 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
= 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
27. BALANCE SCORECARD
A performance metric used in strategic management to identify and improve various
internal functions and their resulting external outcomes.
Strategic priorities
Goal
Target
Strategy
Financial
Increasing sales of
Potential customer
Diversification of
demanded product
Customer
Attract more people
product range
Working people
to consume at AEON
Manager/employee
Increase working
performance
Offers more
convenient product
Potential worker
Send them training to
strengthen skill and
expertise
31. 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
32. RECOMMENDATIONS
Enter global market
Understanding customer
and employee need.
Improve Quality
Store Appearance
Promotion of own house
brand product
Improve management
operation
Staying Focus
Business Model
33. 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
