UGB229 Assignment Marketing

Topics: Marketing, Hypermarket, Strategic management Pages: 13 (2859 words) Published: December 3, 2014
1.0 Introduction
1.1 Objective and Scope
Overall the approach taken by MYDIN is simple - target the Muslim market only and flank for the others.  Focus on cost control and cost leadership where possible.

The reason why they have been successful is linked to their ability to stay focused on the Muslim market, whereas the others are catering for all the markets.  The strategy used here is the same one that allowed Power Root, Ali Cafe to beat the likes of Nescafe.  When a niche player appears in the market, it will always beat the others.  In the Malaysian retail marketing scenario - it is obvious that MyDin has a clear advantage over the others.  It also has strongly entrenched markets in East coast states that allow it to generate capital to pump for the war over at the central market.

1.2Background of (MYDIN)
The Mydin Company was created by Mr. Mydin Mohamed family in Kota Bahru, Kelantan under the name of Syarikat Mydin Mohamed in year 1956. Initially, the company started its business by selling toys from Thailand. Throughout the years until year 2000, Mydin has gone through a lot of improvement. In 2001, the company changes its name to Mydin Mohamed Holdings Sdn. Bhd. In the same year, the company is converted into public limited company and has since assumed the name of Mydin Mohamed Holdings Berhad. Mydin objectives are to gain more profit by attaining more customers. Mydin Mohamed Holdings Berhad has set up a company mission which are “We aim to be the leading local wholesale and Retail Company by providing the best value for money for the best assortment of goods, by providing service to our customers and by striving for excellence. We also aim to inspire more Malaysians to open outlets with our own proven success formula”. Besides, the company visions are to be the leading Malaysian wholesale hypermarket in Malaysia.

2.0 Environmental Analysis
Environment analysis is the process to identify all the external and internal that can affect the performance of the organization and evaluate the level of opportunity and threat of the company. MYDIN used the method to analyze the environment which is macro environment and micro environment. Macro environment is about PESTEL analysis, micro environment is about Porter’s 5 forces, and MYDIN use this to analyze what is their opportunity and threat. However, Market research refers to an action of gathering, analyzing information about market and what consumer need and want.

2.1Macro Environment (about 400 words)

Table 2.1-1PESTEL Analysis of (MYDIN)

Impact to (MYDIN)
Political & Legal

The implementation of the “Minimum Wages Order 2012” by the Malaysian Government

It is a threat, as the cost of hiring employee will increase and the operation cost will increase.






Total Score

Key for Opportunity/ Key for Threats
5: Great Opportunity/ Very serious threat
4: Good Opportunity/ Serious threat
3: Small Opportunity/ Some threat
2: Weak Opportunity/ Weak threat
1: No Opportunity/ No threat

(Source: Star 2013, Ali & Said 2012, Department of Statistics 2011) 2.2 Micro Environment (about 300 words)

Briefly explain what Porter’s 5 Forces analysis is, and why Porter’s 5 Forces analysis is applied.

Table 2.2-1Porter’s 5 Forces Analysis of (Tesco)

Threat of existing rivalry

Bargaining power of suppliers

Bargaining power of buyers

Threat of new entrants

Threat of substitutes



Degree of Seriousness
1: no threat
2: small threat
3: medium threat
4: serious threat
5: very serious threat
(Source: Star 2013, Ali & Said 2012, Department of Statistics 2011)

2.3 SWOT Analysis
A SWOT analysis is a tool to identify strength, weaknesses, opportunities, threats of the business. Tesco use SWOT analysis to get the information...
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