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RMM26
TINJAUAN RUNCIT
TRANSFORMING THE WAY
WE DO BUSINESS
This time is a very special one. We are
celebrating our 54th Merdeka together with
Malaysia Day, plus we are still in the ‘Raya’
mood. Merdeka 2011 comes with the theme
“1 Malaysia, Transformation Success, People
Prosper”. Transformation means a marked
change, in appearance or character, and
usually for the better. Inspired by this theme,
we came out with this issue to help you make
some changes to transform your business.
opportunity to talk about
our Chill Ad, a unique
and
successful
advertising
WILLIAM KHOO
medium
Ex
ecutive Director
from
Infovantage Sdn Bhd
Runcit
[email protected]
m.my
Media Sdn
Bhd.
Successful innovations
In Rencana Runcit, we explore the topic of
innovations in non-food products. Find out
why and how some categories have changed
and get ideas on how to make use of the
innovations to drive a more successful
business. On top of that, we feature a number
of very successful innovative brands, namely
CLOROX, MARIGOLD, HEINZ and DRINHO.
Doing it right
Being ethical is key to having a successful
business. This time around, we discuss the
issue of counterfeit, contraband and parallel
import products that are slipping into the
market now. Learn how to protect yourself,
your business and shoppers from such
products. There are also a number of very
useful tips in this issue, from surviving
robbery, to balancing cash register, to
expanding your product offerings and
providing better service for your older
shoppers.
Shopper and marketing insights
We also highlight findings from Nielsen
Shopper Trends Survey 2010 that tell you
how shoppers have changed in the past year.
In addition, we have included some
information gathered from the latest national
census conducted by the Department of
Statistics. We collaborated with TROPICANA
TWISTER to help you further understand
consumer behaviour when it comes to readyto-drink beverages. This then gave us the
So take some time to browse through the
pages of this informative issue. From all of us
at RUNCIT MALAYSIA, have a happy Hari
Raya Aidilfitri and Hari Merdeka!
RMM26
RENCANA RUNCIT
EXPLORING INNOVATIONS IN
NON-FOOD CATEGORIES
Be in trend with your shoppers and offer them the products they truly need
• • •
As a retailer, over time you must have seen a lot of change in your stocked products. There are
many reasons for that; shopper demands have altered with their increasing living standards,
target market demographics are ever shifting and most of all, manufacturers innovate
constantly. Understanding the impact these have had on various product categories allows you
to better advocate suitable products for your shoppers. Here, RUNCIT MALAYSIA is proud to
present you some examples of these changes.
BODY WASH: FEELING & KEEPING CLEAN ALL OVER
Many shoppers have switched to body washes,
due to hygienic concerns over bar soaps.
Pumps and refill packs
Larger bottles (over 750ml) usually have
pumps for convenience and reduced
wastage. Refill packs are becoming popular as
they cost less and are more environmentally
friendly.
Medicated/Antibacterial
These body washes include compounds such as
Triclosan, which kill up to 99.9% of bacteria
and fungi.
Beautifying agents
Some manufacturers add milk, vitamins, and
moisturisers for the beauty-conscious shopper.
Others use plant extracts such as lemongrass
and frangipani for aromatherapy benefits.
Deodourising and alcohol-free
Sports washes include deodourisers to reduce
body odour, while alcohol-free ones remove oils
and dirt without drying the skin.
Pioneering Refill Packs In Malaysia
SHOKUBUTSU, from Southern Lion, has been
the No 1 beauty shower foam in Malaysian
households since 2004. It was one of the first
brands to popularise refill packs, helping
shoppers stock up on less bulky SKUs and
reduce household expenses. Additionally, as
most shoppers buy body washes to replace
empty dispensers, it can be a waste to throw
them away – to this end, refill packs are an
ideal solution. For these SKUs, Southern Lion
advertised heavily in mainstream media and
in-store advertising. This enabled retailers to
capitalise on sales, as more shoppers became
more aware and looked out for them. Southern
Lion continues to conduct R&D, including
home visits, to analyse consumer behaviour.
Hygienic Dispensers For Germ Protection
Dettol, from Reckitt BenCkiser (RB), is a
pioneer for innovation in the body wash
category. Over the years, RB has seen shoppers
evolve from using a single, all-purpose body
wash to several specific variants, such as ‘Cool’,
which provides a cooling sensation after
showering on a hot day, and ‘Exfoliating’,
designed to remove dead skin cells. Further,
RB notes that germ protection is more relevant
to shoppers, having gone through pandemic
scares such as SARS and H1N1. To address
this, the company came up with the No Touch
Hand Wash system, based on market and
consumer insights. With a battery-operated
dispenser, this system automatically dispenses
the right amount of liquid soap to kill 99.9% of
germs.
RMM26
RENCANA RUNCIT
DIAPERS: BABY’S COMFORT, MOTHER’S CONVENIENCE
There’s more to disposable diapers than
meets the eye.
Wear like Pants
Original cloth diapers were fixed with safety
pins. Then came Velcro fasteners. Today,
some diapers are made like pants that can
just be slipped on, and the baby’s ready to go.
Less Mess
Diapers now come with pockets to contain
the baby’s poop & prevent it from smearing
the bottom.
Pretty designs
Some diapers come with attractive cartoon
prints. They not only thrill the baby but also
nice enough to be worn on the outside,
without pants.
Baby Got Pants On
MamyPoko, from Unicharm, aims to be the brand that understands babies the best; making products
that suit babies at every stage of their growth. Its diapers are designed to accommodate changes in
babies’ urination & defecation as they grow. In 2002, MamyPoko became the first pants-type diapers
brand in Malaysia, offering greater convenience to shoppers. Since then, MamyPoko has led this
market segment. In 2008, Unicharm launched the first economy pants-type diaper ‘MamyPoko Easy
Fit Pants’, overturning shoppers’ perception was that they were too expensive. Unicharm has instore product presenters to educate shoppers on its products and highlight important features. It
also runs ad-hoc educational campaigns in-store.
TOOTHPASTE: MAINTAINING PROPER ORAL CARE
Shoppers have come to demand more from modern toothpastes than just to help clean their teeth.
Better dispensers
As well as tubes with flip tops, which are more convenient than screw tops, toothpaste also comes in
stand-up tubes, like those used for shaving cream, which are more hygienic and less wasteful.
Tooth whitening and sensitive teeth
Whitening toothpastes contain abrasives, which
rub away surface stains, and bleaching agents.
Other specially designed toothpastes for
sensitive teeth contain chemicals that block the
pain.
Halal and herbal
Stock halal-certified toothpastes for shoppers
worried about the toothpaste ingredients.
Toothpaste manufacturers also use herbs, such
as kayu sugi or aloe vera, for more ‘natural’
toothpastes.
RMM26
SANITARY PAD: FOR A
MORE COMFORTABLE
PERIOD
Publicly discussing periods was once taboo, but
now sanitary pad brands can use local celebrity
endorsements. They even hold ceramahs for
primary school girls to capture their loyalty!
Packaging and design
Sanitary pad’ surfaces are either plastic dryweave netting or cottony. Some pads have
‘wings’, which help secure them to the panties
for greater comfort and reducing panty stains.
Many brands also come attractively wrapped, so
shoppers are not shy to purchase or carry them
in public view.
Varying absorption levels
Sanitary pads have different sizes and lengths,
depending on how heavy the menstrual flow is.
From least to most absorbent, they are panty
liners, slim/normal pads, super/maxi pads and
overnight pads.
Night Pads That Fit And Work Right, No
Matter What
Sofy, from Unicharm, has upped its game with its
“Sofy BodyFit Comfort Night” overnight pads
range. Its new feature, called “Fit-to-Absorb
Zone”, slightly raises the pad in the middle to fit
the body’s contours and help increase menses
absorption when in motion. These pads have
sizes up to 41cm, with increased absorbency at
their sides. Unicharm sees Sofy as a brand
bringing comfort to Malaysian women. Priding
itself on understanding shoppers’ needs, Sofy is
in the top 4 brands of overnight sanitary pads.
Unicharm’s research suggests that of all
channels, traditional trade is where the
overnight and panty liner product range has
grown the greatest, and where teenagers and
women in their 20s most often buy their
sanitary pads.
RENCANA RUNCIT
LAUNDRY DETERGENT:
KEEPING CLOTHES
BRIGHT & CLEAN
Before, laundry detergents came in bars.
Today, most detergents are either liquids or
powders, but the bar is still popular.
Enzyme compounds/Anti-Malodour
Some detergents have enzymes that break
down food stains and remove bacteria that
cause clothes to smell when dried overnight or
indoors.
Colour enhancement
Certain laundry detergent SKUs have
chemicals called optical brighteners that make
the colours more vivid.
Did you know?
Many Malaysians think suds demonstrate
cleaning power. However, normal powder
detergent brands that produce a lot of suds can
cause problems in low water, high-efficiency
washers. So, low-suds brands are used instead.
Best Brand In Anti-Malodour Detergents
Top, from Southern Lion, took the market by
storm in 2003 by launching their powder
detergent with its groundbreaking antimalodour formula. Top’s advanced biotech
enzymes cleaning formula (Easy Clean)
effectively removes tough stains and bacteria
that cause malodour, helping make it the No 1
regular powder detergent brand in the market.
Southern Lion spends over RM1 million
annually in market and consumer research.
The company is committed to constantly lead
the market in terms of product innovation,
while educating, supporting and working
together with retailers.
RMM26
RENCANA RUNCIT
SHAMPOO: BEAUTY IN A BOTTLE
Today, shampoo is the preferred way of washing your
hair, and is an essential part of the hair and scalp care
category.
Scalp & Hair Care
Aside from medicated shampoos for dandruff control,
shampoos now come for oily, dry or itchy scalps. Herbs
and other plants such as aloe vera, urang aring and
flower extracts can moisturise hair, keeping it shiny
and minimising split ends.
Maintaining Hair Styles
Shampoos can help protect hair colour, blacken hair,
even straighten frizzy hair or otherwise maintain hair
styles or reduce hair loss. Shampoos also exist that
cater to women who wear tudungs or helmets, to avoid
‘helmet hair’.
CONCLUSION
As a retailer, you should be constantly on top of your shoppers and their ever-changing needs. Here
are some tips on how to optimise the product range you carry.
•
•
•
•
•
Keep in touch with the latest product category trends and innovations. That way, you will always
stay ahead of your shoppers.
Know your regular shoppers so that you can make good suggestions, adding value to your
service. Your shoppers will appreciate it.
Stock up on your best-sellers. That way, you will not run out at a critical moment.
Take advantage of manufacturer-driven product launches, which are generally supported by
thoroughly researched, well-planned advertising and promotion activities.
Understand shopper needs and frustrations, and address them. If there are strong price
perceptions, for example, display the price of the affected products prominently in the store.
RMM26
PENDEKATAN RUNCIT
EXPLORING
THE COMPETITION ACT
TIP: If you are not su
re whether any of
your contracts, agre
ements or practices
are not allowed unde
r the Act, now is the
time to ask! email icu
@kpdnkk.gov.my or
call MyCC at (03) 78
03 2611
Shila Dorai Raj
CEO of Malaysia Competition Commission
Ministry of Domestic Trade, Cooperatives and Consumerism
In its effort to encourage a healthy business environment, the Government has introduced the
Competition Act 2010, which aims to promote economic growth, improve the process of
competition and protect the consumers’ interest. Shila Dorai Raj, former Head of Interim
Competition Unit and now the CEO of the Malaysia Competition Commission (MyCC), Ministry
of Domestic Trade, Cooperatives and Consumerism (MDTCC), shared some interesting facts
about the Competition Act 2010 at a briefing held recently by the Malaysian Advertisers
Association (MAA).
Fast Facts: Competition Act 2010 At A Glance
• Applies to ALL commercial activities, whether by private companies or by governmentlinked companies.
• Prohibits anti-competitive agreements such as between competitors OR two parties at
different levels (eg between manufacturer and wholesaler/retailer) to fix prices or limit
productions.
• Will be enforced on 1 January 2012 and overseen by the Malaysia Competition
Commission (MyCC).
How The Act Affects You
The Act will have an impact on manufacturers, suppliers and you, the retailer.
1. The Act does not allow vertical arrangements (arrangements affecting the entire supply
chain from manufacturer to retailer) that can be seen as anti-competitive. This could mean
that certain agreements between supplier and retailer (such as exclusive dealership) may
be prohibited.
2. The Act does not allow price fixing besides that imposed by the Price Control and AntiProfiteering Act 2010. Therefore in most cases, neither manufacturers nor retail
associations can set fixed prices for products.
3. The Act prohibits abuse of dominant positions. If you own the only kedai runcit in an
area, you may be looked at much more closely, to ensure you do not take advantage of
consumers in the neighbourhood.
4. The penalties for infringing on the Act are very high; up to RM10 million of worldwide
turnover, or for offences committed, RM1 million or 5 years imprisonment!
Manufacturers are already preparing for the Competition Act, and you should as well! Work
closely with the manufacturers who care for you and have your best interests at heart.
RMM26
PENDEKATAN RUNCIT
NESTLE IS
PREPARED: YOU
SHOULD BE TOO
Victor Seah
Sales Director (Malaysia, Singapore, Brunei)
Nestlé Products Sdn Bhd
With the traditional channel forming 50% of
Nestlé’s sales, the company remains committed to
helping its traditional trade partners grow, even
in light of Malaysia’s Competition Act.
Nestlé Sales Director Victor Seah points out that
the current situation where there are two clearly
defined channels (modern trade and traditional
trade), with industry players either in one line of
business or the other, will not be the case for
much longer. “Already, leading hypermarkets are
experimenting with small format stores, and with
their parent companies’ buying power, they can
sell cheaper than traditional retailers and still
make a reasonable margin,” he cautions. “While
the Competition Act regulates similar-sized
entities, quantity has a quality of its own. These
small format stores still have access to their
parents’ resources, which means the peruncit has
to be on his toes.”
As such, Nestlé has spent the past 18 months
preparing to continue meeting the needs of
traditional retailers. The company has capitalised
on its 1st mover advantage by educating its staff
on the implications of the Competition Act. “We
have been holding roadshows all this time,
training and preparing our managers and our
sales personnel on what the Competition Act
might mean in terms of how we reach out to the
traditional trade, and how it changes the way we
do business with the retailers,” Victor explains.
Below, he outlines some of those changes and
preparations:
Moving Beyond Brand Thinking
Previously, we focused on growing our particular
brands when working with you. Our strategy is
now to help you promote category growth as a
whole. This is better for your business, and our
brands grow at the same time. These category
growth initiatives will change the very nature of
how we approach the advice we give to you, and
the support we provide your business, to our
mutual benefit.
Knowing Your Business Needs
Through GPS, we know exactly where outlets and
distributors carrying our products are in
Malaysia, and we also know what products sell
best where. Therefore, we can customise our trade
deals and come up with win-win situations. In
addition, through this geo-mapping, we can plan
strategic marketing and promotional campaigns
that take your particular surroundings and
shopper demographics into consideration.
A Team Just For You
We have created a focused organisational
structure, creating a team dedicated to the
traditional trade from top to bottom. This team is
designed to cater specifically to your needs and
your circumstances as traditional retailers. Our
team has spent the last year researching the
traditional trade, understanding the
requirements and spending habits of traditional
trade shoppers. In this way, we can continually
innovate the products and SKUs we offer to you
based on these.
Nestlé’s Advice To Retailers
In light of the Competition Act, Victor has some
advice for the traditional trade.
-
Don’t get into price wars; you must
differentiate in a different way.
Carry products that you can handle, the
brands people want, which allow you to make
a reasonable profit.
Modernise, modernise, modernise. Be smarter
at retailing. Get better POS equipment,
improve your store cleanliness, and ask for
help to have better shopping conditions and
attract more shoppers. The government is
moving in this direction, so you should as well.
RMM26
MAKLUMAT RUNCIT
THE MALAYSIAN SHOPPER
A look at the changing Malaysian shopper demographics.
It is crucial to understand your shoppers; their circumstances, their requirements and their
desires as these guide their purchasing behaviour. Here we present you some findings from
the latest national census undertaken by the Malaysian government, to help you gain some
insights into the Malaysian shopper.
A Steadily Growing Population…
… But A Gradually Aging One
The number of Malaysians below the age of 15 is
slowly dropping, while the number of working-age
adults (15-64) has increased. People aged over 65
now form slightly more than 5% of the population.
Therefore, it only makes sense to start catering to the
needs of our golden citizens.
An Urban Society
Malaysians are getting more urban as time goes by,
with 71% of all Malaysians living in urban areas in
2010 compared to 62% in 2000. However, around half
of the population in Kelantan (57.6%), Pahang
(49.5%) and Perlis (48.6%) still live in rural areas,
and hence rely largely on kedai runcit to serve their
needs.
Mostly Male
Men have been outnumbering women in Malaysia
since 1980, with 106 males for every 100 females on
average nationwide in 2010. That ratio is even higher
in Johor (112) and Pahang (113). However, if you are
based in Putrajaya (89) or Perlis (97), you might
want to consider catering more to women shoppers.
While these are broad figures, it indicates who and
what the average Malaysian shopper is likely to be,
and what our country is trending towards. We hope
this will help to start you off.
Demographics
stribution And Basic
Source: Population Di
istics Malaysia
, Department of Stat
Characteristics 2010
RMM26
RENCANA RUNCIT
CONDUCT BUSINESS ETHICALLY
Selling counterfeit, contraband and parallel import items may mean easy money, but in
the long term it can have negative effects on you and your business.
With the increasing number of modern
convenience stores, we in the traditional trade
are facing fiercer competition than before. This
has led to a group of retailers selling imitation,
illegal and unethical goods for quick and easy
profit. These items, despite their lower selling
prices, still rope in higher margins. While this
may prove profitable in the short term, you might
be putting your business and your shoppers at
unnecessary risk. Read on to learn up on these
items and how to avoid them.
COUNTERFEIT
What is it?
Contraband represents any item which is illegal
to be possessed or sold. These goods are often
smuggled or stolen stock, and sold at retail value
or less. In Malaysia, contraband cigarettes are a
big issue, accounting for more than 1 out of every
3 cigarettes sold. (Source: South Asia Tobacco
Control Alliance, SEATCA)
The Consequences
× Risk being fined by the authorities.
× Exposes shoppers to danger as contraband
items do not go through quality assurance.
× Compromised product quality.
PARALLEL IMPORTS
What is it?
Imitations made with the aim of passing them off
as genuine. Counterfeit products are produced to
take advantage of the high value of the imitated
product. For example, traditional trade in
Malaysia is facing the issue of counterfeit Oral-B
toothbrushes.
The Consequences
× Lower product quality.
× Negative store image.
× Reduced shopper satisfaction.
× Risk being fined by the authorities.
CONTRABAND
What is it?
Non-counterfeit products are often imported from
another country to be sold alongside the locally
available products. This is often because different
countries sell the same product at different price
points, and so the difference in cost is taken
advantage of. For example, suppliers in Malaysia
import certain goods from Indonesia because they
are sold at much lower prices there.
The Consequences
× Risk being blacklisted by authorised
distributor and/or manufacturer.
× Spoils the market for surrounding shops.
× Goods not exchangeable.
RMM26
RENCANA RUNCIT
cont’d
DO YOUR PART
Stocking up and selling these goods may bring you quick cash, but they can also bring you a lot of trouble.
You should avoid them by watching out for these signs:
ü Be wary of suppliers who approach you with unreasonably low prices.
ü Make sure your current suppliers are licensed.
ü Be careful of products that appear out of the ordinary.
Did You Know?
Like the trade practices described here, profiteering (taking advantage of economic situations like a
product shortage to jack up your prices) can be a tempting way to make a quick buck. But it is also
unethical, and like selling counterfeit and contraband products, illegal. For more information on
profiteering, read last issue’s article on the Price Control and Anti-Profiteering Act.
Instead of taking shortcuts to fast money, concentrate on ways to improve your business the right way
through improved efficiency, value-added services, special offers etc. Your shoppers will appreciate it and
you would be able to sleep peacefully at night, knowing that you’re making an honest living.
BEWARE OF COUNTERFEIT HEINZ ABC
SAUS MANIS
Recently, HEINZ commissioned Runcit Media Sdn
Bhd to run a product availability survey on its
ABC Saus Manis in a number of traditional trade
outlets throughout Peninsular Malaysia. At the
same time, they also investigated the availability
of counterfeit ABC Saus Manis products. It was
found that almost half of the outlets surveyed
had counterfeit ABC Saus Manis products on
their shelves. The majority of affected retailers
were not even aware that they were selling
counterfeit products!
IDENTIFY THE COUNTERFEIT
It is important for you to protect yourself and
your business from the serious implications of
selling counterfeit products. Therefore, you
should learn how to differentiate the fake from
the original. Below, we list down the
characteristics of counterfeit ABC Saus Manis
products that were observed by RMSB during the
survey:
×
×
×
×
×
×
×
White cap
No HEINZ logo
Wrong ABC logo
No nutrition information
Barcode on neck
No Halal seal
Usage of the word ‘kecap’
To impede the sale of counterfeit ABC Saus
Manis, HEINZ has sent out letters to retailers
requesting their cooperation on the matter. As a
multinational food product manufacturer, HEINZ
is committed in ensuring quality and cleanliness
in all its products. The HEINZ logo on every
original ABC Saus Manis is a guarantee that the
products are Halal (certified by Majelis Ulama
Indonesia, MUI, a body recognized by JAKIM)
and safe for consumption.
If you happen to have counterfeit ABC Saus
Manis products in your shop, immediately take
them off your shelves and report the matter to
HEINZ. To lodge a report on counterfeit ABC Saus
Manis, please send an email to
[email protected] RMM26
PENDEKATAN RUNCIT
MINIMARKETS ARE GROWING
STRONG
In quantity and popularity
Teoh Choon Keat
Associate Director of Retail Measurement Services
Nielsen Malaysia
Time and again, traditional retailer concerns about competing with modern trade outlets will arise.
However, findings from Nielsen Shopper Trends Survey 2010 seem to favour the minimarkets. Teoh Choon
Keat, Associate Director of Retail Measurement Services from Nielsen Malaysia, shared the findings with
RUNCIT MALAYSIA.
Fastest Growing Channel
Minimarkets is the fastest growing trade channel with 63% growth or 408 premises in 2010 compared
with 250 outlets in 2009. This channel is becoming increasingly popular with shoppers not only due to its
easy accessibility, but also competitive pricing, good product offerings and simple store layouts.
Shoppers Seek Promotions
RMM26
PENDEKATAN RUNCIT
cont’d
Malaysians are becoming more cautious in their spending for everyday household items. Many would visit
more outlets in search of better bargains. The survey found that 56% of respondents actively search for
promotions while 21% would even change stores based on the promotions offered!
Eyes On The Prices
When it comes to paying for the items they purchase, Malaysians are the most price-sensitive shoppers in
Southeast Asia. 55% claimed that they know the prices of most items and would notice if there are price
changes while 13% know all the prices of items they buy regularly.
Women Decide, Men Influence. Malaysia charted the highest percentage of males as main shoppers for
households in Asia Pacific with 37%. However, in terms of purchase decisions, women are still the main
decision makers while men play a more active role in influencing those decisions.
Brush Up Your Strategies
Teoh mentioned that switching stores based on promotions or price is a strong pulling factor for
shoppers. “Both retailers and brand owners would need to develop more active strategies such as cash
vouchers to protect or grow their market share. Longer-term constructs such as rewards-based
redemption programmes may also help to build stronger shopper loyalty,” said Teoh.
Article in collaboration with
RMM26
PERUNCIT PRAKTIKAL - URUSNIAGA
BALANCING CASH REGISTER
TIP!
Always ensure that yo
u have enough
small change (coins,
RM1, RM5 and
RM10 notes). Don’t
lose sales
opportunity or anno
y shoppers.
Balancing your cash register means
ensuring that the total amount of cash
collected for the day tallies with the cash
register’s records. This will help prevent
loss and ensure reliable accounting records.
Here’s how you can do it effectively:
1. One person is best
If you can, have just one person
manning the cash register so that it’s
possible to hold him/her responsible.
However, if you have cashiers operating
on shifts, make sure handovers are done
properly.
2. Don’t let people see this happening
Take the cash drawer and all its
contents to your office or a secluded and
safe area. If this is done at the end of
your operating hours, turn off all the
main lights and lock all the doors before
you start counting.
3. Investigate overages or shortages
Check all discrepancies. While minor
errors and small amounts may be
human error, frequent occurrences
could be employee theft or may indicate
that additional training is required for
the cashier(s).
4. Compile all receipts
Group all credit card slips (if any) and
suppliers’ bills and file them by date to
ease tracking your total earnings at the
end of the month.
5. Allocate reasonable amount of cash
Deciding how much cash to have on
hand depends on your outlet size, traffic
flow and average collections. Just as a
guide, a small outlet may have RM300RM400, medium RM500-RM700 while a
large outlet may allocate up to RM1,000
daily.
Convenience of a scanner
Bigger outlets usually have scanners that
are linked to cash registers to speed up the
process of counting total cash collected
and type of goods sold. It also helps during
stock-takes, be it monthly, quarterly or
annually.
RMM26
PERUNCIT PRAKTIKAL - OPERASI
EXPAND YOUR RANGE
New products are introduced into the market almost every day. Can any of them be offered
in your shop? Read on to find out how expanding your range of products can help to increase
profitability.
Why?
ü Avoid losing shoppers to another shop if they can’t find certain products they are
looking for. In the long run, they may even start patronising that shop too, so why take
the risk?
ü Encourage shopper loyalty because having a good product range is also a way to provide
better customer service. If you always have the latest products, you could suggest them
to your shoppers. They would definitely appreciate it, especially if they haven’t heard of
the new products yet.
ü Expand your shopper base. As you know, word-of-mouth is a very powerful marketing
tool. If your existing shoppers are pleased with your offerings, chances are new shoppers
will start coming when they hear about how convenient your shop is to shop at.
ü Stay competitive. If you can’t win with pricing, why not compete by always having the
latest products? In the shoppers’ eyes, you will also appear very knowledgeable and upto-date.
How?
• Study your shoppers’ needs and wants to find out what can be added or perhaps
removed (especially slow-moving products) from your existing range.
• Stock smart. Do not just buy whatever products offered to you without considering
whether they are sellable. Also consider your storage and display space. If you are
unsure of the products’ performance, purchase a small trial quantity.
• Manage your finances well. Will buying the new stocks affect your plans for purchases
of regular stocks? If possible, try to set aside a budget for purchasing new products.
TIP!
about the
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sale
RMM26
PERUNCIT PRAKTIKAL - MESRA
BETTER SERVICE FOR OLDER SHOPPERS
TIP!
Generally, older shoppers do not
carry a lot of cash. Therefore,
accepting credit and debit cards
may be something you want to
consider.
Ever thought about the roles older shoppers play in ensuring the success of your business?
If your shop is located in a housing area, chances are you will have a significant number of
older shoppers. Learn how you can provide better service for them.
1. Offer more functional products.
As discussed in last issue’s Rencana Runcit, older shoppers purchase more functional
products, be it food or non-food. Multivitamins, over-the-counter medications and adult
diapers are some examples of functional products older shoppers would buy.
2. Relook your product placement.
Are there any products that are popular with older shoppers but are currently displayed
at the back of your shop or in narrow isles? If so, switch the placements to make it
easier for them to see and reach them.
3. Train staff to pay extra attention.
Always remind your staff to be more helpful to older shoppers. Get them to help reach
products from higher shelves, carry selected items to the payment counter and car or
even offer valet parking.
4. Provide better equipment.
You can provide chairs for these golden citizens to sit while waiting to pay or get their
purchases packed. Adequate lighting along the isles and maybe even restrooms is
something you can consider as well.
5. Reward long-term shoppers.
If you know that they have been patronising your shop, why not show some
appreciation? Rewards can be in the form of small discounts or free gift. Older shoppers
are more appreciative of such initiatives.
RMM26
KATEGORI RUNCIT
BOOST YOUR RTD SALES
Did you know that shoppers find Ready-To-Drink
(RTD) beverages very convenient? They can either be
consumed on the spot for those looking to quench their
thirst, or brought to a party, so they are perfect for
today’s busy shoppers.
In April this year, we ran a study to see how shoppers
buy and consume RTD beverages. The study covered
11 outlets and 120 shoppers in Peninsular Malaysia.
We are pleased to present our results here, and to give
you some tips on how you can best market RTD
beverages.
Shoppers Mostly Buy From You!
This may surprise you, but in the study, we found out
more than double the number of shoppers buy their
RTD beverages at traditional retail outlets compared
with any other outlet:
44% from retail stores
17% from supermarkets
17% from convenience stores
12% from hypermarkets
Most Shoppers Plan Their RTD purchases…
73% of all RTD purchases are planned ahead of time, because the shoppers already know what
they want to buy and why.
… But when it comes to RTD fruit juices, impulse buys are high
A lot of shoppers change their minds in the store and make impulse buys for RTD fruit juices/
drinks in place of other RTD beverages. Therefore, consider using POP media to increase your
sales.
RMM26
KATEGORI RUNCIT
cont’d
Most Shoppers Buy RTD Beverages To Drink
Straightaway
As their name suggests, RTD beverages are designed
to be consumed as is, to save on preparation time.
Many shoppers buy RTDs because they are thirsty,
and drink them immediately after paying, so you
should set up your store to make this easier for
them.
ALL YOU EVER WANTED TO KNOW
ABOUT TROPICANA!
TROPICANA is the world’s no 1
juice brand.
ü It is recognised worldwide for its
100% pure fruit juices.
ü TROPICANA is an established and
trusted brand for well over 60
years, with global markets in all 5
continents.
ü It is a premium fruit drink that
Malaysians have trusted to give
them the fresh-tasting, high-quality,
rich daily nutrition that they need
to keep their bodies healthy.
Source: Euromonitor 100% Juice
2009
ü
DID YOU KNOW?
The study also found that TROPICANA
TWISTER is the most purchased fruit
juice/drink brand, at 69% of all such
drinks bought!
Juices are the preferred RTD beverages
Today’s shoppers are more health-conscious and
food-conscious than ever before. Therefore, it is not
surprising that fruit juices/drinks lead the RTD
category, followed closely by isotonic drinks. So,
stock more of these beverages.
*For more information on TROPICANA TWISTER
or other Permanis brands, call these numbers or
visit www.permanis.com.my
KL/ SELANGOR: (03) 8725 3333
MELAKA: (03) 3519 175
PRAI: (04) 3997 335
ALOR SETAR: (04) 7771 310
IPOH: (05) 2822 660
KOTA BHARU: (09) 9581 785
KUANTAN: (09) 5673 301
MENTAKAB: (09) 2272 730
KUALA TERENGGANU: (09) 6668 010
KOTA KINABALU: (088) 8435 868
KUCHING: (082) 2433 091
MIRI: (085) 5657 240
RMM26
KATEGORI RUNCIT
cont’d
AN ORGANISED CHILLER EQUALS BETTER BUSINESS
93% of RTD purchases at retail stores are off-takes from chillers. Keep your chillers in
good conditions by following these simple tips:
ü
ü
ü
ü
ü
Keep it hygienic
Clear out your chiller and give it a good wash every few months or so. Shoppers are
attracted to tidy displays.
Keep it maintained
Follow the maintenance schedule as closely as you can to keep your chiller in good
running condition. This will allow your RTD beverages to remain cold and reduce your
running costs.
Keep it organised
Neatly arrange the products in your chiller by their type. Put all fruit juices/drinks
together, all carbonated soft drinks together and so on, so your shoppers can easily find
what they want. Ask your supplier for planogramming advice.
Use POP media to your advantage
Advertising media can help increase offtake, so ask your suppliers how they can help with
marketing RTD beverages in and around your shop.
Keep different chilled items in separate chillers
While you might think it is cheaper to put vegetables and taufu in the same chiller as your
RTDs, it is not safe and can lead to contamination.
Article published in collaboration with
RMM26
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TEL: 603-7957 1718; E-MAIL: [email protected]
RMM26
FOKUS RUNCIT
SURVIVING A ROBBERY
Those of us who have been through the ordeal of being robbed know the distress that it can
cause and the dangers it can bring. Runcit Malaysia interviews retailers who have
experienced robberies and gathers practical tips on what to do in such situations, so you can
learn from their ordeal how to deter and get through robberies should it happen to you.
LIVES COME FIRST
“It all happened in only about 5 minutes. A man was
walking around the shop suspiciously. He then made a
phone call, probably to inform his accomplice that the shop
was empty. Another person came in wielding a parang. He
shouted at my staff to get down on the floor, and knocked
one of them on the head with the edge to keep them from
trying anything. They then proceeded to take everything
from the cash register, plus a few drinks from my fridge
before leaving. I have since installed an alarm system that
can be triggered with the push of a button. My advice to
other retailers is give your full cooperation during a
robbery. Lives are more important than money.”
– Lim Eng Chuan, Pasar Mini SS, Melaka
KEEP AN EYE OUT
“It was about 7.30 in the morning. Only my father was in
the shop at the time. 2 men came into the shop. 1 was
holding a steel rod, and the other, a parang. The one with
the steel rod hit my father on the head, while the other one
tried to slash him. Fortunately, my father escaped serious
injury. The robbers then took what valuables we had and
left. The nearby neighbours then called the police while I
sent my father to the hospital for treatment. I would advise
other retailers to always be on the lookout for anyone
suspicious.”
– Te Jin Long, Kedai Runcit Soon Li, Muar, Johor
INVEST IN SECURITY
“I remember that it was raining in the evening when it
happened. Business was slow. 2 suspicious men, in their
20s, stopped their motorcycle outside my shop. The next
thing I knew, they came into the shop; one was holding a
metal rod and the other one had a spanner. I tried to put up
a fight, and they got very violent. I was hit on the head. I
remember bleeding quite badly. After they took everything
from the cash register, they sped off on their motorcycle. I
wish I had installed more security measures, like an alarm
or something to deter these people.”
– Ibrahim bin Ismail, Pasar Mini Nisam Jaya, Cheras,
Kuala Lumpur
RMM26
FOKUS RUNCIT
cont’d
WHAT TO DO IN A ROBBERY
In a situation where your life is on the line, forget about the money. Your life is much more
important. Take a few minutes to memorise these tips, and teach them to your staff.
During The Robbery
ü Don’t try to be a hero. Do everything the robber says.
ü Stay calm. If you panic and do something that angers or startles the robber, it may endanger
your life.
ü Look down and away. Making eye contact might anger the robber.
ü Make sure your hands are in plain sight. If you have to move, do so while keeping your
hands visible.
ü When the robber is leaving, do not chase. Remember that the sooner the robber is gone,
the sooner everyone is out of danger.
After The Robbery
ü If there are any injuries, tend to them and call for medical help before doing anything else.
ü Call the police when it is safe to do so.
ü Close up the premises.
OBSERVE AND REMEMBER
Try your best to remember the features of the robber so that the police can find the culprit
efficiently. Calmly observe the following characteristics:
ü Height
ü Hair
ü Eye colour
ü Physical condition
ü Special marks or tattoos
ü Transport description and license plate
ü Direction of travel
ü Weapons
ü Anything unique
RMM26
WIRA RUNCIT
NEVER GIVING UP
Name: Mohamed Suhubudeen
Shop: ALI SHOPPING CENTRE, 14 Jalan Liku
B 8/B, 40000 Shah Alam, Selangor
Tel: (03) 5511 2521
The story of how Mohamed was almost ruined by competition,
until he decided to fight back.
At first glance, Ali Shopping Centre seemed similar to a modern mart chain; the premises
were clean and brightly lit, and the goods neatly stocked and arranged. There was a good
variety of brands and products. That, coupled with the workers’ pleasantness, made the
atmosphere warm and welcoming.
A FAMILY BUSINESS FOUNDATION
Mohamed Suhubudeen had a very strong foundation in the traditional trade; he started out
helping at his relative’s store from the age of 7. In 1985, his father opened 2 businesses: a
kedai runcit and a restaurant. It proved tough for his father to run both businesses
simultaneously. Meanwhile, Mohamed went on to obtain a diploma in accounting and then a
degree in IT. In 2002, when he finished his studies, Mohamed received an attractive job offer.
At the same time, his father presented him the option of inheriting and running the kedai
runcit. “I took my father’s offer without hesitation. It was a great opportunity for me.”
THE COMPETITION ARRIVES
“For 2 years I ran the store with little thought of expansions or upgrades. It was bringing in
enough for me to eat, keep up with my car payments and settle my rent, and so I left it as it
was.” One day, another shop opened up nearby. Mohamed saw a big drop in sales almost
immediately. His competitor was selling the same products but at lower prices, marking up
only enough for minimal profits. “Whenever a shopper informed me that they were selling the
same products but cheaper, I’d take them off the shelves. This was my way of avoiding direct
competition.” Before Mohamed realised it, his shelves were half empty, and business was
worse than ever. “After only 3 months, I was at rock bottom. I was behind on my rent, late on
my car installments and I was delaying wages and other payments. It was really bad.”
RMM26
WIRA RUNCIT
cont’d
FIGHTING BACK
“I was seriously considering closing up
for good. Then I asked myself, “Should I
go down without a fight?” That’s when I
decided not to give up without doing
everything I could first.” Mohamed called
up his supplier and pumped up his stock:
more brands and more products, giving
his shoppers more choice. “Secondly, I
concentrated on my shoppers – the most
important people in any business. They
were king, as far as I was concerned.
Complaints were dealt with in a swift
manner and enquiries were addressed
quickly and efficiently. I even installed
fans around my shop for their comfort.”
Mohamed’s Business Tips
ü
REAPING THE BENEFITS OF HIS
EFFORTS
Mohamed’s efforts paid off. His shoppers
returned. Slowly but steadily, business
picked up. “Not only that, I had more
business than I had before! I was winning
the war. Finally, my competitor packed up
and moved somewhere else. I ended up
with a better business and valuable life
experience. Today, I have 3 branches, and
on top of that, I’m planning to franchise
my shop,” Mohamed proclaimed with a
wide smile.
ü
ü
ü
ü
Location is very important. If you’re
looking to open a shop, keep an eye out
for new developments. There are many
new ones coming up nowadays. Try to
be the 1st one to open shop in an area.
The shopper is king, so take care of
them as best as you can. I give
immediate discounts whenever a
shopper tells me that another place
sells the same product cheaper. It’s not
worth 1 or 2 ringgit to lose a loyal
shopper.
Keep your staff happy. I’ve had
unhappy staff who have left before
working for even a month. This
hampers business. Treat your staff like
family and they will be dedicated. For
example, pay them on time, every
time.
Keep your store neat so that your
shoppers can find what they want
easily. I used to keep many products
high up on shelves. As it turned out, I
was losing sales because shoppers
were too shy to ask to see them closeup, and so they chose not to buy it in
the end.
Undertake tertiary education and
arm yourself with the education and
information you need first before
venturing into business. It will mature
your thinking and prepare you for
tough decision-making in a hard
business environment.
RMM26
HALAMAN PAK RUNCIT
GOOD DECISION MAKING
Be it right or wrong, we always have to abide by our decisions. In business operations, how
you go about making decisions is very crucial. A right decision will bring good results while a
bad one could end up in disaster, in terms of the bottom line.
A lot of retailers tend to shy away from making decisions. The result? Nothing is done and all
unresolved issues are left hanging in the air! Being caught in such situation will not augur
well for your business. Plus, it will reflect very poorly on you.
Decision making must not be based on impulse or feelings. Instead, we have to be sensitive of
the circumstances around us, in order to create a conducive environment to arrive at the
right decision. When a decision has to be made, act immediately. Any delay or
procrastination will affect the professional and personal wellbeing of the business.
The end result of our decision making can determine our destiny. Hence, it must be made in
the best interest of what we have set out to do. Here are some guidelines to various forms of
decision making. Hopefully, you can adopt the one that suits you best in running your
business.
Democratic Style
• The leader takes the lead while taking
into consideration the views of the
staff
• This will draw ideas and suggestions
by discussion and consultation
• This will also give rise to stronger
teamwork and team effort
• Besides creating a family concept
atmosphere, it will also encourage
participative style management
• This will create a conducive working
environment with the sharing of
responsibilities
Autocratic Style
• The leader assumes full responsibility
for all actions and decisions taken
• This requires minimum participation
from the subordinates. Instructions
given must be carried out without
further questions
• This works exceptionally well in an
environment where the staff are very
relaxed, in terms of bearing
responsibility
• The downside of this approach is that
it may affect staff motivation and in
the event a wrong decision is made, it
may reflect very poorly on the
credibility of the leader
RMM26
HALAMAN PAK RUNCIT
cont’d
Collective or Participative Style
•
•
•
•
This will encourage the staff to give their
views and share their knowledge and
experiences
While the input comes from the staff, the
leader is in total control and responsible
for the decision making
This approach is highly recommended,
when the subordinates are mainly skilled
workers which may not necessarily apply
in the context of your business operations
If this approach is adopted, it will do a lot
of good for team morale. However, the
process of arriving at the decision is very
time consuming
Having said these, the following prerequisites can greatly influence your decision making and
its outcome:
• Strong leadership qualities and a positive attitude
• Willingness to change
• Submission to authority and to seek counseling, whenever the need arises
• Understanding of objectives and goals in deploying the right strategies
• Thorough situation analysis
• Knowledge of the business, market and competition
• Strong determination to succeed and to excel in whatever you do
Please be reminded that decision making is never easy. It is a form of art in which you must
rely heavily on instincts and past experiences, for it to have a positive impact on your
business. We sincerely hope all of you will pluck up enough courage to pay greater emphasis
on your decision making, so that your business will continue to grow and prosper from
strength to strength.
RMM26
TANYA PAK RUNCIT
MANAGING COMPETITION AND
SHOPPERS
Q1. How can I practice price control to align
with other kedai runcit, so there are no major
price differences between all the various shops
in the area?
Zainuddin bin Ag. Mat
Pasar Mini Ketereh
Ketereh, Kelantan
A1. Fixed pricing apply only to items that fall
under the Price Control Act ( eg sugar, flour, rice,
etc), were the selling prices are constantly
monitored by the Ministry of Domestic Trade,
Cooperatives & Consumerism. Hence, for most
other items, their costs are up to the suppliers,
usually depending on the volume purchased. The
profit margin of the merchandise also vary from
one retailer to another and as such, the selling
prices are also different. No doubt, you have seen
that some big retailers, especially in the modern
trade, have much lower selling prices compared
to the kedai runcit.
The manufacturers’ recommended retail prices
and a quick check of what prices your
competitors offer are a good guide in deciding
your own selling prices. We suggest that rather
than controlling your prices, you look into other
areas that will appeal to your customers, like
providing better customer service. As a
responsible retailer, you should not get involved
in a price war, as it will benefit only the
consumers.
We hope you will now be able to determine your
products’ selling prices, guided by your own profit
policy. We wish you every success in establishing
an effective pricing strategy.
Q2. Some shoppers talk so much, while others
don’t even want to reply when I ask them
questions. Still others like to ask many
questions but end up not buying anything. How
do I deal with all these different types of
shoppers?
Choong Tuck Feei
Pasar Mini Chop Wan Ying
Jelapang, Perak
A2. It takes all sorts of people to make the world,
and likewise with your shoppers. You should
handle them in a professional way, without being
too offensive or getting into any auguments with
them. Your speech and body language have to be
closely guarded and do not send out any negative
signals, which can negatively impact your future
sales and traffic flow. Remember, if your shoppers
are happy, they will keep coming back for more
and in the long run, you will be able to build up a
strong base of loyal shoppers.
We would like to share with you some general
characteristics of shoppers to get you fully
prepared, so that you will be able to respond
appropriately:
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Generally, shoppers like to shop without being
disturbed or harrased.
Shoppers who like to talk a lot and ask
questions are usually those who are looking
for new products and want to find out more
before they make the purchase. Customers
are always right and it is normal for them to
bombard you with questions.
Shoppers like a clean shopping environment,
with a good store lay-out that will make them
feel at ease and comfortable.
Some shoppers just like to bargain; as
annoying as it can be, do not feel offended.
This can be avoided, if all your products are
clearly price-tagged.
Shoppers also tend to compare prices. In the
event you are confronted, ensure you are able
to handle this without getting into an
argument with them. You might win the
argument and lose the customer!
Shoppers may try their luck and ask for free
gifts and further discounts at the payment
counter, with some even asking for the
possibility of buying on credit.
Finally, providing good customer service is
absolutely crucial, and if correctly executed, will
bring a lot of benefits to your business. All the
best to you in successfully and effectively
handling your shoppers!
RMM26
FIND ME ON THE INTERNET
Name: Goh Sau Boon
Shop Name: Long Bang Mini Mart
Town: Batu Pahat, Johor
RM Field Supervisor: Ng Chin Chai
I have recently started using the Internet to
help improve my business. Now, if people were
to type Long Bang Mini Mart on GOOGLE
MAP, they will be able to find my shop
location. Through this, I am able to get new
shoppers to come to my shop when they are in
this area. I have also started a FACEBOOK
account for my shop under this email address
– [email protected]. I use this
social media to tell shoppers about my current
promotions. These efforts have seen me
receiving very positive feedback from my
shoppers.
EVEN LOWER PRICES
Name: Wan Ahmad
Shop Name: Pasaraya PKT Sdn Bhd
Town: Besut, Terengganu
RM Field Supervisor: Mohd Rodi Mohd Nor
As a response to the KPDNKK campaign that
encourages hypermarkets, supermarkets and
provision stores to lower their prices, I
conducted a month-long Price Reduction
Campaign in June. Under this, a number of
selected goods are sold at special prices. I also
put up various point-of-sale materials such as
banners, flaglines and latest price lists, in, out
and around my outlet to grab shoppers’
attention towards this campaign. In a way, this
is a social service to help shoppers save more
so they can use their money for other
important purposes.
CAKAP-CAKAP RUNCIT
IMPRESSIVE TRANSFORMATION
Name: Wan Fatimah
Shop Name: Pasar Mini Lyna
Town: Shah Alam, Selangor
RM Field Supervisor: Mohd Rodi Mohd Nor
I am so pleased to be one of the first
retailers to receive help from the
Government under the TUKAR
(Transformasi Kedai Runcit) Programme.
As most are aware, it is organised by
KPDNKK and carried out by TESCO. About
95% of the assets in my shop were changed
to give it a whole new look. Now almost
everyone is talking about my shop! My shop
is more comfortable and conducive inside
out. TUKAR is definitely the better option
for retailers who wish to renovate their
outlets. Not only does it tell you how to, it
also helps you get the loan and reduce the
cost of modification.
RMM26
CAKAP-CAKAP RUNCIT
cont’d
CYBER CAFÉ IN MY SHOP
Name: Md. Al Amin
Shop Name: Mah Mega Enterprise
Town: Parit Buntar, Perak
RM Field Supervisor: Mohd Rodi Mohd Nor
Now that the competition in business is getting harder than ever, I knew I had to find a way to
diversify my source of income. Because my shop is located in a housing area, I decided to allocate a
corner for computer and Internet service. This is not just a makeshift computers and desks area
though, I actually renovated the corner after a thorough planning to ensure that this new service
will not disturb my current retail operations. The response? Very good indeed, now my shoppers
can rely on my shop to get connected to the rest of the world!
FANTASTIC PRIZES FOR LUCKY SHOPPERS
Name: Surresan
Shop Name: Kedai Runcit Sempurna
Town: Segambut, Kuala Lumpur
RM Field Supervisor: Ken Wong
Who doesn’t like to try their luck, right? I for one do. Recently I ran a lucky draw contest in
my shop. With every purchase of just RM50, shoppers are eligible to participate in this
contest. In order to make it stand out from other similar ones, I offered irresistible prizes
such as holiday packages to Chennai, Guang Dong, Phuket as well as a 32” LCD television,
top loading washing machine, microwave oven and RM50 vouchers. The response was
tremendous, not only did I get more shoppers to come; they were also very excited in every
trip! I will definitely conduct another round of this contest in the future.
END