PRESENTATION

AEON Marketing Plan

Prepared for:
Assc Prof Asmah Bt Zainuddin

Prepared by:
Muhammad Nur Faiz Bin Amran(2011893042)
Mohammad Iskandar Bin Karib (2011265189)
Noor Fadzleen Bt Abd Rahman (2011441666)
Annabelle Anbrews (2011463864)

BM 220 5C

FACULTY BUSINESS ADMINISTRATION

(MARKETING)
 PRESENTATION OUTLINE

INTRODUCTION STRATEGY ANALYSIS

TARGET MARKET INDUSTRY ANALYSIS
MARKETING MIX NEW VISION, MISSION AND
GOALS
CURRENT MARKETING
STRATEGIES MONITORING AND
CONTROL
SITUATIONAL ANALYSIS
RECOMMENDATION
 INTRODUCTION

What is marketing plan?

“The written document that summarizes what the

marketer has learned about the marketplace and
indicates how the firm plans to reach its marketing
objectives.
 INTRODUCTION
Company background:

•AEON CO. (M) BHD. is a leading retailer in Malaysia with total revenue of RM3.26 billion for the
financial year ended 31 December 2012.

•The Company was incorporated on 15 September 1984.

•AEON CO. (M) BHD. (AEON or the Company) was set up in response to the Malaysian
Government’s invitation to AEON Japan to help modernize the retailing industries in Malaysia.

•The ‘AEON’ name today is well established among Malaysians as well as foreigners, especially
due to its association with the international AEON Group of Companies.

•At all times, in every market, AEON’s activities are guided by its unchanging ‘Customer First’
philosophy.
 INTRODUCTION

Company Vision
To establish a solid competitive position and achieve continuous
growth  
Company Mission
To operate as an “international-scale retailing group”, recognized for
excellence not only in Japan, but also in other nations
TARGET MARKET & POSITIONING
MARKETING MIX
MARKETING MIX
 CURRENT MARKETING STRATEGIES

1) Halal-wide Product Lines for Halal-wide Target Market

2) Understanding the Consumer Led to Low Pricing
Strategies
3) Promotional Strategies fall Secondary to Pricing and
Products
4) Aggressive Geographic Placement Threatens Competitors
 SITUATIONAL ANALYSIS
Current Situational Analysis

AEON’s top priority is to ensure consistent flow of

communication in their supply chain network, from the
suppliers, to logistics and warehouse, to the ground staff and
management team.
 SITUATIONAL ANALYSIS
EXTERNAL ANALYSIS
General Environment (PESTLE)
 SITUATIONAL ANALYSIS
EXTERNAL ANALYSIS The threat of
Porter Five Force Analysis potential new
entrants
Medium

The competitive
The bargaining The bargaining
rivalry among
power of buyers power of suppliers
existing competition
High Low

The threat of
substitutes
product & service
 SITUATIONAL ANALYSIS
INTERNAL ANALYSIS
Generic Strategy
 SITUATIONAL ANALYSIS
INTERNAL ANALYSIS
Generic Strategy

Type 1 Cost Leadership - Low Cost

• offers products or services to a wide range of consumers at the lowest price in the
market
• not much care for quality;
• consumer switching cost is low;
• consumer is price sensitive

Type 2 Cost Leadership - Best Value

• offers products or services to a wide range of customer at the best price-value available
on market.
• offer customers a range of products or services that are cheap in the market but is
considered of value or better quality than other competitors
 SITUATIONAL ANALYSIS
INTERNAL ANALYSIS
Value Chain Analysis

•A tool for identifying ways to create more customer value.

•In this model, every firm is synthesis of activities performed to design,

produce, market, deliver, and support its product.

•Refers to the process whereby a firm determines the costs associates

with organizational activities from purchasing raw materials to
manufacturing product(s) to marketing those products.
 SITUATIONAL ANALYSIS
AEON Value Chain can be divided into 2 which are the primary and secondary
activities.
 SITUATIONAL ANALYSIS
Primary Activities

Inbound logistic: all those activities concerned with receiving and storing externally
sourced materials. For example, AEON receives all the raw material and product to be
sold at their premises.

Operations: The manufacture of products and services - the way in which resource
inputs such as material that is converted to outputs such as products. For example,
AEON normally received a big bulk of raw material and product from the supplier.
They will break it into several small entities to be distributed to the whole branch and
in bulk for buying in wholesale price.
 SITUATIONAL ANALYSIS
Primary Activities

Outbound logistic: All those activities associated with getting finished goods and
services to buyers. The products are now ready to be assembled to the final customer
by sending it to the branches all over Malaysia. It is concerned with delivering the
product to the customer. There are several tangibles that have to be improved for
AEON such as parking facilities, trolley collectors, till staff and systems to gain
competitive advantage, if executed more efficiently than competitors, they will add
value by saving the customer time, whilst increasing the turnaround.

Marketing and sales: Essentially an information activity - informing buyers and

consumers about products and services (benefits, use, price etc.). So far, AEON is seen
only to respond to promotional materials of their rivals, by setting up corresponding
billboards and by buying similar advertisement placements in the newspapers as and
when the need arises.
 SITUATIONAL ANALYSIS
Primary Activities

Service: All those activities associated with maintaining product performance after the
product has been sold. AEON provide a customer service counter and also money back
warranty if something happen to their product during the warranty period. For
instance, if customers spot other supermarket offer lower price for a particular
product than AEON, AEON will return the differences back to them.
 SITUATIONAL ANALYSIS
Secondary Activities

Procurement: This concerns on how resources are acquired for a business such as sourcing and
negotiating with materials suppliers. AEON CO. (M) BHD., the largest discount retailer in
Malaysia, implemented a K2-based solution to track inventory, speed its procurement processes
and save money. The implemented of K2-based solution help to incorporates automated
workflow around several SharePoint sites. New processes were set up for product requests and
to deliver inventory and product information.

Human Resource Management: Those activities concern with recruiting, developing, motivating
and rewarding of the workforce of a business. As a Hypermarket, most of the retail functions
were done by AEON itself. Specialization in production and department means AEON needs to
assign and control their manpower efficiently so that they can produce the maximum outcome
(higher profit)
 SITUATIONAL ANALYSIS
Secondary Activities

Technology: Activities concern with managing information processing, and the development
and protection of “knowledge” in a business. As new era (technology) conquering the business
environment, all AEON system were manage by digital devices such as scanner, internet, and
online database system. Consumer may also find the latest promotion through their website
and by using social networking such as facebook and twitter.

Infrastructure: Concern with wide range of support systems and function such as finance,
planning, quality control and general senior management. In managing such a big Hypermarket
which involves 100 outlets nationwide inclusive of 10 hypermarkets, 18 emporiums, 3 bazaars,
54 mini markets (MyAEON), 9 convenient stores (MyMart) and 6 franchise outlets (AEON Mart).
Each of the hypermarkets is located in AEON Malls.
 STRATEGY ANALYSIS
SWOT ANALYSIS
 STRATEGY ANALYSIS
SWOT STRATEGIES STRENGTH WEAKNESSES
S1: AEON has pricing power, customers will W1: AEON has less of space or capacity to in
continue using AEON’s products and services store their goods
S2: Low cost leader can undercut rivals in price W2: The management in AEON is not
S3: Variety of choice can contribute to customer strong
loyalty W3: Lack of customer services
S4: the good brand name and well-known to
people recognize

OPPORTUNITY SO STRATEGIES WO STRATEGIES

O1: The online market offer AEON the SO1: AEON can selling large volume of goods at WO1: To reduce the number of product
ability to greatly expand their business globally (S2,O3) placing (W1,O1)
O2: Trough capture new market they SO2: AEON can enter new market based on WO2: AEON need to improve their
can diverse their portfolio of products good brand name (S4,O2) management to cater needs of new
and services market(W2,O2)
O3: By going global, AEON have a new
opportunity

THREATS SO STRATEGIES WT STRATEGIES

T1: AEON have to compete with other ST1: Improve the services to build long-term WT1: AEON need to be alert with
hypermarket relationship (S3,T1) competitor changes by give a good
T2: Competitors offer similar products ST2: Maintain lower price (S2,T2) customer services (W3,T1)
range WT2: Provide a large space to store a
variety of products(W1,T2)
 STRATEGY ANALYSIS
BOSTON CONSULTING GROUP (BCG) Matrix

AEON can be considered a cash cow because AEON requiring little

investment to hold its current market share. AEON now to try their
best to introduce and familiarize their customers with their halal
hypermarket.
 STRATEGY ANALYSIS
SPACE MATRIX
Internal analysis External analysis
Financial position Stability position (SP)
Return on investment 4 Rate of Inflation -2
Leverage 2 Technology Changes -6
Liquidity 1 Price Elasticity of Demand -4
Working capital 4 Competitive Pressure -4
Cash flow 5 Barriers to Entry into Market -1
Financial position (FP) average 16 Stability Position (SP) Average -17
Internal analysis External analysis
Competitive Position (CP) Industry Position (IP)
Market Share -2 Growth Potential 6
Product quality -3 Financial Stability 3
Customer loyalty -6 Ease of Entry into Market 4
Technology Know-how -6 Resources Utilization 3
Control over Suppliers/Distributors
-5 Profit Potential 4

Competitive Position (CP) Average -22 Industry Position (IP) Average 20

 STRATEGY ANALYSIS
SPACE MATRIX

Conclusion
SP Average is - 17/5 = - 3.4
CP Average is - 22/5 = - 4.4
IP Average is + 20/5 = 4
FP Average is + 16/5 = 3.2

Directional Vector Coordinate:

x-axis: - 4.4 + (+4) = - 0.4
y-axis: - 3.4 + (+3.2) = - 0.2

Coordinate (-0.4, -0.2)

Conclusion: Vector points
in Defensive Quadrant
 BALANCE SCORECARD

A performance metric used in strategic management to identify and improve various

internal functions and their resulting external outcomes.
Strategic priorities Goal Target Strategy

Financial Increasing sales of Potential customer Diversification of

demanded product product range

Customer Attract more people Working people Offers more

to consume at AEON convenient product

Manager/employee Increase working Potential worker Send them training to

performance strengthen skill and
expertise
 INDUSTRY ANALYSIS
COMPETITIVE PROFILE MATRIX (CPM)
AEON TESCO GIANT
CRITICAL SUCCESS FACTORS: WEIGHT RATING SCORE RATING SCORE RATING SCORE

ADVERTISING AND MARKETING 0.2 3 0.3

0.1 3 0.3 2
PACKAGING 0.2 2 0.2
0.1 2 0.2 2
PRODUCT QUALITY 2 0.2 2 0.2
0.1 2 0.1
1 0.2 2 0.4
BRAND LOYALTY 0.2 3 0.6
2 0.2 1 0.1
CUTOMER TASTE 0.1 2 0.2
2 0.8 1 0.4
PRICE 0.4 4 1.6
1.0 3.0 1.8 1.6
TOTAL
 INDUSTRY ANALYSIS
IFE MATRIX (INTERNAL FACTOR EVALUATION)
FACTORS WEIGHT RATING WEIGHTED SCORE
STRENGTHS:
0.35 4 1.40
1. Pricing Power
0.10 3 0.30
2. Cost Advantage
0.15 3 0.45
3. Consumer Loyalty

0.20 3 0.60
4. Brand Name
WEAKNESSES:
1. Less Space 0.07 2 0.14

0.03 2 0.06
2. Weak Management
0.10 2 0.20
3. Customer Service
1.0 3.15
TOTAL
 INDUSTRY ANALYSIS
EFE Matrix (External Factor Evaluation)

FACTORS WEIGHT RATING WEIGHTED SCORE

OPPORTUNITIES:
1 Online Market 0.20 2 0.40
2. New Markets 0.25 3 0.75
3. International Expansion 0.10 2 0.20
THREATS:
1. Intense Competition
0.20 3 0.60
2. Substitute Products-AEON
0.25 3 0.75
TOTAL
1.0 2.70
 NEW VISION, MISSION & GOAL

Vision
The vision of AEON is that every person has a home and is
interconnected within community
Mission
The mission of AEON is to create and sustain quality affordable homes
that strengthen lives and communities
Goals
The goal of AEON is to operate as an “international-scale retailing
group”, recognized for excellence not only in Japan, but also in other
nations
 RECOMMENDATIONS

Enter global market Understanding customer

and employee need.

Improve Quality
 Store Appearance

Promotion of own house

brand product
Staying Focus

Improve management
operation Business Model 
 CONCLUSION

To remain relevant in this highly competitive business, AEON

Hypermarket needs to understand its customers, reckons the
capability of its competitors and be at ease with technology as a
strategic tool

AEON has the potential to maintain as a lifestyle hypermarket. With

their wise extension strategy, it is not surprise if one day, they would
be the leading and the biggest hypermarket in Malaysia