RMM22_Eng Version_v8.0(Final)
Transcription
RMM22_Eng Version_v8.0(Final)
TINJAUAN RUNCIT MALAYSIA MAGAZINE ISSUE 22 Runcit Malaysia has now reached the 22nd issue and we wish to thank you all for the support. We hope to continue serving you with good articles to increase your knowledge and enlighten you with what is new in the traditional trade. In this issue, the main article focuses on distribution. Distribution as we all know is an important part of the supply chain and though it is not new to us, we wish to highlight the common issues that you face with your distributors. We also suggested some useful tips to help improve your relationship with your distributor. This will indirectly help you grow your business and understand the distribution process better. Do also read our Operasi article on in-store signages. This article is useful for you to understand the importance of signages in your shop and there is also a section on the do's and don'ts of labelling products. Also in this issue is Pak Runcit's words of wisdom for potential champion retailer a must read for selfimprovement. I hope these interesting articles will benefit you and help you develop your business. Recently, we visited Julie’s (Perfect Food Manufacturing) in Melaka. We were very impressed with the cleanliness that also emphasizes on the environment. The comfortable and peaceful surrounding enables the staff to work conducively and happily. Indeed, Julie’s factory should be an example to all the other factories out there. Happy reading! RENCANA RUNCIT MALAYSIA MAGAZINE ISSUE 22 DISTRIBUTION: THE LIFELINE Any business needs two basic things to survive: customers and products. Products do not show up just like that. The process involved before it arrives at your shop is crucial and if not done accordingly, could be damaging to your business. Distribution, as you know it, is a vital part of any retail business because distribution helps you get your products so that you could sell it to consumers. Distribution is performed by a team of distributors who are appointed by the manufacturers. So essentially distributors represent the manufacturers in the supply chain to not only deliver the products to you but also to ensure smooth flow of those products. Distributors surely add efficiency to the whole process, as it is difficult to supply products without someone to monitor the flow and keep track of the product distribution. There are only two types of products, ambient and non-ambient products. Ambient products are products that could be stored in room temperature for example biscuits, can food, etc. However, non-ambient products are chilled products eg ice creams, chilled drinks, etc. Distribution could benefit you in many ways because this will help you get your products on time and you also get a reasonable price for your goods provided you buy from the right supplier. Distribution is the key success of any business, which is also the reason why the right strategies have to be effectively organised, however as a retailer there are many ways to make the best out of your distributor to ensure desired results. RENCANA RUNCIT MALAYSIA MAGAZINE ISSUE 22 12 THINGS DISTRIBUTORS DO A role of a distributor is mainly to distribute products but today, distributors play many roles in ensuring the products that come under their charge are well distributed and represented in the market place. 1. The different channels of outlets are to be regularly serviced, with the establishment of a fixed itinerary, call rate and call cycle 2. Handle and attend to complaints in the trade and to provide good after sales service. 3. Maintain a high standard of display and merchandising works at all times. 4. Maintain stock hygiene in the trade • Replace or exchange all the damaged stocks, which are not in a saleable condition • Take back all the expired or near to expiry stocks (Trade Returns) • All the stocks that are offered for sale is clean and presentable • Check and to conduct stock rotation, incorporating the first in, first out policy (FIFO) in the display area, as well as in the warehouse • Continuity of stock supply. 5. Ensure that the stocks do not run out at any one time. • Sell in the right quantity to the right outlet. • Ensure there is volume and assortment. 6. Extend credit to those outlets that are credit worthy and for the smaller retailers, to sell on a cash basis. • For those outlets that buy on credit terms, to ensure their bills are settled promptly, so that it will not affect the replenishment of the stocks. 7. Provide good Customer Service to the outlets and to attend to their problems/enquiries promptly. 8. Ensure a prompt delivery service to all the outlets. 9. Provide a team of well-trained Sales force and Merchandisers to regularly service the outlets. 10. Provide market feedback to the Brand Owners, including the close monitoring of all competitors' activities. 11. Responsible for the successful execution of all promotional plans and to see to the achievement of the sales and whatever businesses objective that have been set by the Brand Owners. 12. Have in place a good Administrative/IT support system. (Data collation/Reports). RENCANA RUNCIT MALAYSIA MAGAZINE ISSUE 22 COMMON DISTRIBUTION ISSUES A lot of retailers think that by selling their product in to the distribution channel, their role in the matter has come to an end and they no longer have to do any work. But in order to be effective, it is vital for retailers to take a market-oriented approach and manage every level of their product’s distribution until it arrives at the end user. However due to lead times being shortened and the fact that distribution is almost the last part of the supply chain, problems do occur. Problems like response time, product variety, product availability, order visibility, return ability, etc, could affect the distribution part of a supply chain. In this issue we would like to highlight some common issues that retailers face with their distributors and give some useful tips on how to solve those problems. Distributor does not show up Why: • Payment problem • Change in the coverage. Solution: • Ensure payment on time • Make sure you increase enough stock to tie you over. Distributors do not bring the right amount of goods ordered Why: • Stock out, wrong delivery at the warehouse Solution: • Check your goods thoroughly before you sign on delivery order. • If the products are short, write comments on the document. • If the item you ordered is incorrect, you can reject the item. Delay in payment issues Why: • The stock are still left unsold Solution: • If you buy new products, it is recommended to buy trial quantity as opposed to having extra stock and not exchangeable. Products not available Why: • Out of stock Solution: • Buy from other wholesaler or van operator. Can't return products that are not sold Why: • Policy of distributor Solution: • Make sure from the start the goods bought are returnable and exchangeable. Buy in small quantity and replenish when stocks are low. RENCANA RUNCIT MALAYSIA MAGAZINE ISSUE 22 KEY POINTS TO ENSURE A GOOD RELATIONSHIP WITH YOUR DISTRIBUTOR 1. Always make sure you have good knowledge of the products you ordered and the area of your clientele base. 2. Bear in mind the coverage and the call cycle of the suppliers. 3. Note the call frequency of the suppliers. This would help avoid being caught in an out-of-stock situation. 4. Always remember the type of repeat purchase that is required and the order turnaround time. 5. Remember to check your products and leave a comment on the delivery order form in case of any mistake or defect items. 6. Take into consideration how fast your products sell. Order regularly if you have to. 7. Always ensure your payments are on time to help ease the process. Distribution plays an important role in the supply chain because it makes products available to customers at point of purchase. This directly contributes to the success of your business. We hope that this article has helped you understand the distribution process and how you can make the best out of your distributor. KATEGORI FOKUS RUNCIT MALAYSIA MAGAZINE ISSUE 22 COFFEE AND YOU If you drink coffee, so do millions others! This beverage is synonymous with jump-starting the day, so it’s no wonder that coffee culture has swept the world! In Malaysia alone, coffee sales in 2008 stood at RM213,765,312! COFFEE MOMENTS Hot or cold, coffee is just plain refreshing! Drinking this beverage is often associated with these moments: WAKING UP Coffee kick-starts the system and helps us ‘wake up’ and face the day. It revs up the central nervous system and makes us more alert. PICK-ME-UP Caffeine in coffee provides a stimulating effect that revives the mind. A coffee break will make you more productive! WITH LOVED ONES Coffee is the perfect beverage when sharing special moments with our loved ones as it relaxes and enlivens us. ENJOY COFFEE CONFIDENTLY Studies reveal that moderate consumption (3-5 cups/day) is perfectly safe for healthy adults. Plus, it may have positive health effects due to certain bioactive compounds in it. So please, enjoy your coffee with confidence! Caffeine Caffeine belongs to a group of chemical compounds called alkaloids found in various beverages and some plant-based food. The amount of caffeine in your coffee depends on the blend, brewing method and strength of the brew. Bioactive Compounds Coffee beans are one of the richest sources of chlorogenic acid, a strong antioxidant which may have protective effects against cardiovascular disease. Caffeic Acid It is known as a carcinogen inhibitor, which means that this antioxidant has the potential to reduce the risk of cancer. KATEGORI FOKUS RUNCIT MALAYSIA MAGAZINE ISSUE 22 BENEFITS OF COFFEE It tastes great and wakes you up, but coffee may also have beneficial effects on our health, which includes reducing the risk of certain diseases like cancer, cardiovascular disease and high blood pressure. Here’s how else coffee benefits us: MIND • • • • • BODY • • • • One cup of coffee can result in contentedness, lower anxiety, more self-confidence and higher motivation Enhances cognitive performance at work Restores alertness Maintains day-time alertness levels at night Uplifts the mood Enhances muscles contraction and improves neuromuscular transmission Increases metabolism to allow your body to break down fat faster Increased accuracy and sporting performance May improve capacity when performing activities like running and cycling HEALTH • Linked to a reduced chance of developing Alzheimer’s disease in middle-aged drinkers • Associated with a lower risk of liver, kidney, breast and colorectal cancer • May have potentially beneficial effects on the heart • Related to a lower risk of developing Parkinson’s disease Now that you know all about coffee, the pleasures it brings and its health benefits, go ahead and enjoy a piping hot cup of goodness today! Article in collaboration with KATEGORI FOKUS RUNCIT MALAYSIA MAGAZINE ISSUE 22 LEADING THE COFFEE MARKET As the world leader in coffee, NESCAFE leads Malaysia’s coffee market with 80% share in instant coffee segment and 68% in total coffee category. Its 71-year-old heritage has seen NESCAFE come up with many firsts, including the world’s first soluble coffee. Since 1938, NESCAFE has been maintaining the highest levels of quality in the production of instant coffee, coffee mixes and Ready-to-Drink coffee that have become market leaders in their respective categories. WHAT MAKES A GREAT CUP? Beans. Different coffee beans provide different aromas and flavours. Arabica and Robusta beans are sold the most worldwide. Aroma. A mix of over 800 compounds that provides the balance between nutty, fruity, roasty and more caramel-like aroma notes. Bitterness. This provides that sharp, vibrant quality, without which coffee would taste flat. Texture. It gives coffee attributes like body (weight and richness), smoothness and aftertaste. Flavour. This depends on the coffee species. Arabica is considered richer and more aromatic while Robusta is more robust and stronger. Brewed or instant? Apart from brewed, there’s also instant (soluble) coffee. Just add hot water to coffee powder or granules and you’ll savour the pleasures that come with a great cup of coffee! FROM THE ORCHARD TO YOUR CUP Harvest: Coffee ‘cherries’ are harvested by hand when they are over 9 months old. They can be sundried or soaked in water to separate the beans from the skin, pulp and parchment. Roasting: This is when sugars, fats and starches in the beans are emulsified, caramelised and released, creating the delicate coffee oil which provides the aroma. The temperature and roasting time affect the colour, which in turn determines the strength of the brew. Grinding: The beans are then ground into the desired size; coarse, medium, fine or very fine. Making instant coffee: Ground coffee is put into an industrial percolator containing pressurised hot water to brew highly concentrated liquid coffee. The coffee liquor, as it is called, can then be spray-dried or snapfrozen, then ground again into fine particles. KATEGORI FOKUS RUNCIT MALAYSIA MAGAZINE ISSUE 22 A GOLDEN OPPORTUNITY NESTLÉ has come up with PERADUAN NESCAFÉ® GOLD MUG 2010 Contest as a year-end golden bonus to reward its loyal Malaysian consumers. From October 1 to December 31, 2010, customers can fill up the contest forms in your shop and return it with proof of purchase (NESCAFÉ® sachets, outer packs, jar labels or pierced tabs with “NES” stamped on them). It is a great opportunity to win a total of RM380, 000 in prizes! The nationwide contest is supported by television and press advertisements, plus other promotional activities. So be ready to receive your customers for the gold rush! Consolation prize: RM1, 000 cash x 4 winners For further information, please log on to www.nescafe.com.my. MEDIA RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 BEHIND THE SCENES Retail Advertising Panel (RAP) – Standard Operating Procedures (SOP) Today’s consumers are bombarded with so many commercials and advertisements and more often than not, it always confuses them. When a customer walks into a store, they will notice a proliferation of products in the market. However, through in-store media, the brand will stand out and attract more customers. But most importantly, it acts as an effective marketing medium that will be the last touch point and has the power to influence consumer’s final purchase. Because of this, Runcit Media pioneered the Retail Advertising Panel (RAP), a very effective point-of-purchase media and outdoor shop signage. It is the only media company today with direct coverage of over 7,000 traditional retail outlets in 1,200 towns throughout Peninsula Malaysia, Sabah and Sarawak. They have a team of dedicated experts servicing a growing clientele of local and multinational brand owners in ensuring the RAPs are maintained accordingly. Here we will take you through the process of how the RAPs are made and eventually installed in the shop. MEDIA RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 1) Introduction of Runcit Media Sdn Bhd A presentation and sharing session will be conducted by the client servicing team for i) New Clients – Introduction to RMSB’s media and services ii) Existing Clients – Update on RMSB’s new media and services 2) Proposal & Follow Up After introducing Runcit Media to clients • a proposal will be extended to the client based on the brief received during the presentation and sharing session • any special/different specifications requested by clients that is beyond the current standard media offerings will then be approached as a “Customised” project. 3) Acceptance Once the client has agreed to the proposal • a contract will be issued for confirmation • • followed by a job/ brand brief from clients o Understanding of the category architecture and uniqueness o Clients range of products o Competitive brands /products Clients will enjoy solus position as each outlet will only have one unit of RAP Outlets Selection Clients are given the privilege to select their outlets to install the RAP • Two (2) times of contracted number of outlets will be provided – e.g. investment of 100 outlets, Runcit Media will provide 200 outlets based on criteria as per job brief • This process takes the longest time to revert as it involves sales department where at times it will be also channeled to the distributor’s sales team. • Source of outlets !Current RMSB panel of retailers !Potential / identified outlets from clients being forwarded to RMSB for recruitment 4) Creative • Technical specifications will be provided to client for all engaged medias • The next step is to print the media. There are 2 types of printing available: MEDIA RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 Materials required Inkjet Printing CD and digital proof • • Offset Printing • 4-Colour separated positive film • 1 Die-cut line film (applicable to creative with die-cut) • 4-Colour progressive proof Test print should be viewed from a minimum distance of 5 feet. Guidelines on Creative (for Outdoor Mediums) • Language (all councils) o Usage of Bahasa Malaysia language is a must o Other languages are allowed but must be smaller or ! the size of the Bahasa Malaysia wordings • Mandatory requirements in Kelantan and Terengganu o Must have Jawi writing in all advertisements o Jawi writing must be bigger or same size as other Roman languages o Jawi writing must be placed above other languages o Female talents must be wearing ‘Tudung’ 5) Installation Installation of the RAP will take 4 – 6 weeks • a bi-weekly installation status will be sent to client. • Upon completion of installation, client will be provided • a product check report • photos of all media installed with outlet’s details URUSNIAGA RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 BE RESPONSIBLE FOR YOUR GOODS! How you can save yourself heartache, money and hassle A responsible retailer should always be aware of their goods. However, sometimes goods are found damaged and you do not know the cause and source of it. Some goods can be salvaged, re-conditioned or repackaged for resale while the rest will have to be written off. This is a very painful and costly situation and will negatively impact the profit of your shop. That is why a good retailer will most certainly ensure that only perfect stocks reach their shops and especially to the customers in good condition. Managing Your Stocks 1. Avoid over-stocking. Always buy the right quantity! 2. Order on a regular basis – when goods are low and not when they are completely out of stock. 3. Check the expiry dates of all stock arrivals. 4. Be sensitive of stock-holding and expiry dates of stocks in the warehouse and products on the shelf. 5. Keep minimum stocks that are slow moving. If a particular stock is found to be extremely slow moving, sought out the assistance of the supplier while the merchandise is still in saleable condition. 6. Ensure storekeeper regularly updates you on the stock situation (slow moving/ near expiry) and take immediate corrective action to clear them. 7. Do not stock-up too much on perishable products. Tip! You can increase stock volume for the below reasons (and only if the product sells and there is a market for it): • Price increase (last-bite offer) • Temporary shortage due to manufacturing • Delay in the shipment • Sudden upsurge in the demand to coincide with the festive seasons Stock Maintenance Here are some good tips on how to maintain the tip-top condition of your stocks once it is off-loaded into your shop: Upon stock arrival: 1. 2. 3. 4. Take full control and ownership of received stocks. Ensure they are properly displayed in the front of the shop and the rest in the back room. Handle the stocks with care at all times especially during loading and unloading. Immediately return damaged goods upon arrival of the stocks to avoid dispute. URUSNIAGA RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 Stock Display: 1. Keep a clean shop and store room/ warehouse to prevent pest from spoiling the stocks. 2. Practice the First In, First out (FIFO) system. The purpose of FIFO is to rotate stock so that it remains fresh and in good condition. 3. Regularly check for near stock-expiry products. Collaborative Effort with Brand Owner/ Distributor/ Supplier 1. Feedback on the quality of the packaging to prevent further damaged, crushed or dented goods. 2. Salesman to have better understanding of the shop. Sell the right product and the right quantity to the right outlet. 3. Train transporters to handle the goods correctly while loading and unloading. 4. Have a policy on slow moving products, for collection, exchange or replacement, while the goods are still in a saleable condition. OPERASI RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 IN-STORE SIGNAGES Organise your shop and make it easier for you and your shoppers. In-store signages are very important and are useful to inform customers on the latest products in the market as well as the latest promotions. There are many forms of signages, such as Point-Of-Sales Material (POSM) and also category organisers. Some of these are provided by Runcit Malaysia and also directly from supplier itself. However, there are also simple signages you could make yourself without cost and satisfaction guaranteed! From RMSB: 1. Horizontal banner 2.Shelf violator !" Counter Top 4. Triangle #" Chill Ad From the Suppliers: 1. Shelf Talker 2. Poster !" Wobbler 4. Decals 5. Flaglines OPERASI RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 Triangle Sign Board 1. Draw 3 vertical lines to divide the cardboard into 4 sections. 2. Fold according to the lines to form a triangle. 3. Glue the ends together to form a triangle cardboard. How to Label Correctly Do’s 1. Price perishable food products with ‘best before’ labels. 2. Label the price where it can be clearly seen. Don’ts 1. Block product name, information, nutrition information panel, barcode etc. 2. Do not neglect the 'Halal' label. WIRA RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 PURSUING DREAMS Name: Mathialagan Name of Shop: Mathialagan Family Store Age: 47 Bandar: Seremban Jaya Telefon: 06-6780953 Mathialagan is one successful business owner from the traditional trade. The first impressions I perceived about the Mathialagan Family Store were its clean and spacious premises. The owner Mathialagan delightfully proceeds to enlighten me with his story of how he started the businesses. Said Mathialagan, “This Mathialagan Family Store was opened in 2004, six years after my first shop the Mathialagan Mini Market, which was opened in Sungai Gadut, Seremban.” My plans to get into business actually started when I realised I had to find more money to support my children’s education. I only studied until standard six and later worked as a lorry driver for F&N until 1998. It was a gruelling 24 hours a day of servicing eight to nine outlets throughout KL, Singapore and Johor in one day!” Realising that he couldn’t be a lorry driver his whole life, Mathialagan decided that he had to do something else that not only benefited him, but also his wife and three kids. “I’m lucky I had my wife’s support the entire time. My kids were young then but they too helped me set up my first shop!" he added with a smile. Mathialagan has plans to open 10 more branches once all his three children have completed their education. Mathialagan’s youngest daughter commented on her father’s drive for success and said, “I owe it all to my parents who are my success role models, especially my father whom I am very proud of!” Mathialagan the proud father adds that his family is living proof that is a bright future in retailing and advises other retailers to be proud of their achievements. Mathialagan believes that the success of his business also stems from long opening hours (8am - 11pm) everyday. Additionally, Mathialagan Family Store opens on public holidays and only closes two days in a year for Deepavali celebrations. He has since built friendly relations with many of his customers and they prefer shop at his store to going to the hypermarket nearby! Business Tips: Mathialagan is eager to share some ‘success tips’ with his fellow retailers. They include: 1. 2. 3. 4. 5. 6. Being interested in learning about the traditional trade Having a little extra working experience Not being shy to ask for help for knowledge sake (even if it’s from a salesman!) Avoiding repeat of the same mistakes Accepting that obstacles can crop up, especially in the beginning Working hard for your business CAKAP-CAKAP RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 MODEL PREMISE THAT DO NOT SELL CIGARETTES Wanesa Mini Market was awarded by the Kelantan health ministry in conjunction with 'A day without tobacco 2010' Kelantan State level. The owner of Wanesa Mini Market, Mr Borhan Bin Omar has quit smoking for 2 years and feels that it’s his responsibility to support the government in the 'No Smoking Campaign'. Mr Borhan does not sell cigarettes in his shop to discourage his customers from smoking and to make them understand the importance of the 'No Smoking' campaign. Name: Borhan Bin Omar Shop Name: Kedai Runcit Wanesa Town: Pulai Chondong, Kelantan PL Runcit Media: Mohd Rodi Mohd Nor BLOOD DONATION IN CONJUNCTION WITH AGONG'S BIRTHDAY A blood donation drive was held in concordance with the agong's birthday. It was the held the second time in the year, first being held in conjunction with the Sultan of Kelantan's birthday. This has become a fixed activity in PKT Wholesale Warehouse Sdn Bhd. The event was held for two whole days. Many of the customers and staffs participated in the event. Name: Him Sim Leong Shop Name: Pasaraya PKT Wholesale Warehouse Town: Kota Bharu, Kelantan PL Runcit Media: Mohd Rodi Mohd Nor REASONABLE PRICES AND ATTRACTIVE SHELVING Perniagaan Yi Jia has always sold their goods for reasonable prices and because of that, they manage to compete with the other shops and get more customers. The owner Leong Lee Chai has frequent surveys on the pricing of goods at shops around his area. They also provide packed fruits and vegetable assuring excellent quality. Leong advises his workers to be friendly and provide the best for his customers. Name: Leong Lee Chai Shop Name: Perniagaan Yi Jia Town: Kuantan, Pahang PL Runcit Media: Mohd Rodi Mohd Nor CAKAP-CAKAP RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 PETRONAS BUSINESS PARTNER Bahrudin Zakaria started his business in 1990 by distributing Petronas products like petrol products and engine oil. The Petronas system allows the distributor to have their own place and run the business without committing 100% to the procedure. That gave me an idea to find a strategic location to open a mini market and sell these Petronas products together. I manage to get CIMB bank to cooperate with me to build an ATM machine nearby. I also built a public toilet for my customer’s convenience. Name: Baharudin Zakaria Shop Name: Baharudin Mini Station Town: Jeli, Kelantan PL Runcit Media: Mohd Rodi Mohd Nor PRODUCER OF BURGER BREAD AND SAUCE My experience as a burger seller gave me an idea to make my own burger bread because I believe I can make good quality bread. I built a factory just to make the burger bread. I manage to import the machine from Italy that could produce 60,000 dough in 1 hour. I then improvised by producing chilli and tomato sauces. After that I started distributing RAMLY products. I use 10 lorries to transport the products to all over Kelantan. My new factory cost me RM 1.8 million and is expected to finish this year. Name: Hasliza Ismail Shop Name: Pasaraya Che Wan Town: Tumpat, Kelantan PL Runcit Media: Mohd Rodi Mohd Nor LABOURS DAY PROMOTION Excel Three Super Centre carried out a Labour Day promotion. It was a joint effort with Unileaver, P&G, Gentle Supreme, Munchy's and DKSH. Many products were on discount. The event was held to appreciate all the workers in that area. The owner Mr Tan Hooi Han plans to make it a yearly event and not just on every annual anniversary. Name: Tan Hooi Han Shop Name: Excel Three Super Centre Town: Pokok Sena, Kedah PL Runcit Media: Mohd Rodi Mohd Nor EXTRA PROFIT FROM RENTING OUT SHOP I rented out a space in my shop to a money changer and that has increased profit in my business. The money changer does money transfer for the foreign workers to their homeland. These workers come to my shop to buy things when they come to transfer money. My intention to help other people succeed, has in a way helped my business to prosper too. Name: Yong Kim Yoeng Shop Name: Pasaraya Kawan Town: Tapah, Perak PL Runcit Media: Seaw Sek Chuan ISU SEMASA RUNCIT MALAYSIA MAGAZINE ISSUE 22 GET READY FOR THE COMPETITION ACT 2010 Business may become more challenging for traditional retailers but you can survive. VICTOR SEAH Sales Director (Malaysia, Singapore, Brunei) Nestle Products Sdn Bhd The Malaysian government recently passed a new law called the Competition Act 2010. Set to be in force before end-2011, it will prohibit manufacturers/ suppliers from performing certain actions, including restricting supply to certain areas, limiting production, as well as fixing, discriminating or setting excessive prices. All these prohibitions are intended to help promote healthy competition and benefit Malaysian consumers. However, according to Victor Seah, Sales Director (Malaysia, Singapore, Brunei), Nestle Products Sdn Bhd, the Competition Act would have serious implications for the traditional trade. He says: “The biggest concern is that, under the law, there will be nothing to restrict retailers, particularly the larger ones, from ‘throwing prices’ and even selling products at below cost, in some cases. “At the same time, manufacturers/suppliers will be prevented from giving any preferential treatment to the traditional trade. Whereas we are now able to provide product SKUs, pricing and trade deals exclusively for this channel, the new laws may prohibit this from happening in the future.” Seah stresses that the removal of these privileges means that traditional retailers will have to work harder to woo and retain their customers. “It will all boil down to how well you can differentiate your business from the competition. This calls for understanding, anticipating and meeting the needs of your market so as to provide the ambience, offerings, modern operations and excellent customer service that they demand.” These are the same success ingredients that have enabled the traditional trade in other countries to survive and thrive, in spite of intense competition. So, secure your continued success by starting to make improvements to your business. It’ll be a worthwhile investment for the future. Survival Tips Here are some suggestions to help you meet the challenges that come with the Competition Act 2010. • • • • • • • • • Modernise your store operations Enhance store ambience Ensure that you have the appropriate range of products that customers expect to find in your store Ensure that products are in stock to avoid disappointing customers Recognise and focus on potential target segments (eg families with young children) Price products reasonably Develop creative ideas to improve sales (eg a points redemption loyalty system) Incorporating other services to attract customers (eg in-store laundromat, postal, photocopying & facsimile services) Convenient services (eg telephone orders & home delivery) Article in collaboration with HALAMAN PAK RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 WHAT MAKES A CHAMPION RETAILER It is always good to adopt a professional approach and to excel in whatever we do and if we do a good job, the end result is that we will eventually be well rewarded in terms of the sales and profitability. We must always be very knowledgeable of what we have to do, so that we are in a strong position to reap what we have sown, failing which, we will only be spending a lot of productive time doing unproductive work! Here are some of the prerequisites of a champion retailer: 1) Have a strong desire to overcome all the problems and obstacles in the course of your work. 2) Find a solution for every problem and make sure that you do not give up easily. 3) Have a strong desire and discipline to achieve what you have set out to do. 4) To succeed total commitment and dedication is needed to be injected into the business, not to mention some personal sacrifices. Right Attitude Adopting the right attitude is the gateway to success which 90% of what we do will depend on how we react. These are some benefits to be derived from having the right attitude. a. The right attitude will give you the right start in effectively tackling the challenges ahead. b. It will also give you the correct perspective of things, as opposed to jumping into the wrong conclusions. c. It will determine what we see and not what others want us to see and how we can effectively handle the situations. d. Everyone is responsible for his or her own attitude and we are given the liberty to choose the way we want to go. e. As the leader driving the business, we also need to take charge and be responsible and accountable of our attitude. f. Bad attitude, just like your body language, can easily be identified and this will normally lead to the non-achievement of the desired results. The worse that can happen is that it will also have a negative rub off effect on all your staff. 25 HALAMAN PAK RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 Please be reminded that in whatever we do, the outcome of the results hinges on the following: • 60% Attitude • 30% Competency • 10% Others –factors which are beyond our control In summary, it is not just what happens to you, who is the main driver of the business, but ultimately, your success will be based on the outcome of the results. To start you on the right foot, you must be determined and bold enough to make the decision to change and to give it your best shot! “Change Management” is the ability to improve/change oneself, in order to progress, to keep pace with the changing environment and to strive for excellence and professionalism. For all the hard work and efforts that you put in, the benefits are indeed rewarding which can be summarised as follows. " " " " " You get a taste of success in seeing the achievement of the desired results. You can relate the progress and growth in your retail operation. Greater job satisfaction and the motivation to do even better and to bring the business to a new level. Getting all your team members to work together harmoniously to produce the results and to reward them accordingly. You and your Team are totally transformed to be a Professional. Well, we sincerely hope that you will take a positive step forward and work towards becoming a Champion Retailer. All the best! TANYA PAK RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 Q 1. Why does Colgate need a third party salesman or agent to sell its brand product to retailers? Why can’t they sell it directly to retailers? A. A well-known Manufacturer may not necessarily be a good Distributor, as its effectiveness in distributing its goods hinges very much on its strong infrastructure and its ability to reach the retailers. As a result of this, you will find that a lot of such Manufacturers farm out this very important function to a Distributor or a number of appointed key wholesalers, depending on which is the best route for their products to reach the market and ultimately to the consumers. It does not really matter who undertakes to do the distribution work, as long as the products in question are made readily available to the retailers and that there is a continuous supply of stocks to the trade. On this score, besides doing the physical distribution of the products, the Distributor must also be in a strong position to provide good after sales service, which is commonly known as customer service, which covers a wide area, to include the following. 1) Responsible for trade returns. 2) Handling of trade enquiries 3) Ensure a high standard of display and merchandising work is maintained at all times. 4) Sell-in the right quantity of stocks to the right outlet at the right time. 5) Timely replenishment of the stocks with the right call cycle and call frequency. 6) Handling of promotional activities and to see to the successful implementation and execution of the plans mapped out by the Manufacturers. The above is just to give you a rough idea on the modus operandi of a typical Distributor and to gain greater insights and understanding of this subject, please do not miss out on our article on, “ DISTRIBUTION: THE LIFELINE” in this issue. Happy reading and all the best. Q 2. My shop is in the outskirts and my problem is all the Nestle products that is spoilt or expired can’t be returned. So I am selling the one that sell out only. What is your opinion? A. The distribution of Nestle products is channeled through a Team of Long Term partners or commonly known as LTPs, as Nestle do not undertake to handle it on their own. However, after having said that, the LTPs should be responsible enough to provide good Customer Service which will also include the handling of trade returns, unless the goods in question are on a non-returnable basis, as clearly spelt out during the time of the transactions. The question we have is whether the products are bought from an appointed LTP or any other wholesalers and in the case of the latter, it could be that they are not doing a good after sales service job. We have on many occasions advised all of you to buy from the right Suppliers, those who come to service your outlets regularly and provide good Customer Service and cases like this should not happen which you may have to eventually bear all the cost of the damaged goods. Please take this as an expensive lesson and to ensure that it is not to be repeated. We would suggest that you call up the Head Office of Nestle at the general line 03 – 7965 6000 and to connect to the right Person, who is able to resolve your problem. All the best to you! BERITA RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 ANTABAX 'YOU CAN HAVE IT ALL' Antabax personal care products launched its reformulated and repackaged antibacterial range on 28th July 2010. They also introduced their new brand ambassador Ziana Zain at an exclusive media launch at 1Utama Shopping Centre. Antabax is a reliable and trusted range of antibacterial personal care products that promotes a healthy and hygienic lifestyle for the whole family through products that are dermatologically tested to be gentle on the most delicate skin making it suitable for frequent daily use. Company: Lam Soon Edible Oils Sdn Bhd Tel: 03 7882 2399 MISS MARIGOLD BODY BEAUTIFUL 2010 Marigold HL low fat milk is proud to be the gold sponsor of the Miss Chinese Cosmos Pageant Southeast Asia 2010. It exemplifies its brand promise of providing 'the perfect balance of highs and lows' for all the 22 lovely contestants to keep them energised and well nourished throughout the pageant. The judges for that day was Mr S.B Cheah (General Manager of Marigold HL low fat milk), Mr Micheal Ong (Deputy General Manager of Marigold HL low fat milk), Miss Phang Sau Lian (Director of Marketing, Sunway Pyramid), Miss Carrie Lee (Miss Chinese Cosmos Pageant International Winner 2004) and Miss Chantelle Chuah (Miss Malaysia Model of The World 2007). Company: Cotra Enterprise Sdn Bhd Tel: (03) 7955 4388 MALAYSIA INTERNATIONAL FOOD AND BEVERAGE TRADE FAIR This event was held from the 22nd till the 24th of July 2010 in Putra World Trade Centre. This trade fair covered more than 600 booths and over 25 countries exhibiting various types of foods from their respective countries. Among the highlights for the day was cooking revolution 2010 with celerity chef’s, creative Taiwan food festival, Mado's icecream show, MIFB most creative pavilion award, MIFB best booth design award, and MIFB 2010 premium F&B product gallery. Company: Project Secretariat: Expomal International Sdn Bhd Tel: (03) 8024 6500 BERITA RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 22 THE WORLD GOLDEN COMPETITION & EXPO 2010 This cooking competition was held on the 30th of July till the 1st of august. It was organised by The Malaysia Selangor & Federal Territory Ku Su Shin Choong Hung Restaurant Association and held at the Malaysia International Exbihition and Convention Centre, Seri Kembangan, Selangor. This event covered over 100 chefs from all over 20 countries to compete for the 'world golden chef' title. This culinary event featured 3 major segments comprised of the competition, the exhibition and the restaurant showcase. Company: Nestle Professional Tel: 1-800-288-8682 SOFY PANTYLINER Uni - Charm, Sofy is now launching its new range of pantyliner– Sofy Long & Wide Center Absorb & Sofy Long & Wide Comfort, which is specially designed for use during light flow days, especially during the last few days of the menstrual cycle. Sofy’s existing range of regular liners caters to both light flow days and everyday-use. Together with our range of napkins, Sofy now offers a complete range of feminine protection for the entire menstruation cycle. Sofy Long & Wide Center Absorb (40 pieces) is priced at RM8.50 and Sofy Long & Wide Comfort (40 pieces) is priced at RM7.90, and are now available at all supermarkets, hypermarkets and pharmacies. Company: Uni-Charm Corporation Sdn Bhd Tel: (03) 7660 1195 MAMYPOKO EASY FIT PANTS Uni-Charm introduces MamyPoko Easy Fit Pants, a new product that is sure to please the mothers who have difficulty changing normal diapers especially when the baby does not want to sit still. Easy Fit Pants has an elastic belt that makes it easier for the baby to move around. Now changing diapers would not be such a hassle. Company: Uni-Charm Corporation Sdn Bhd Tel: (03) 7660 1195 ABSOLUTELY THE JAPAN ORIGINAL Shokubutsu presents a brand new look to all Malaysians. Combining the originality of its Japan formula with today’s dynamism in look and style, Shokubutsu Body Shower Foam is now known as Shokubutsu Japan Original Shower Foam. Look out for the new Shokubutsu Japan Original in all leading outlets near you. Available in your ever favourite assortments of Orange Peel Sensation, Floral Delight, Green Freshness and Green Tea Harmony and in three pack sizes – 250ml Handy Pack (RM 6.50), 600ml Refill Pack (RM 8.95) and 700ml Family Pack (RM14.90). Company: Southern Lion Sdn Bhd Tel: (03) 7728 2880