Growth Strategy To Be Market Leader In Retail Marketing Essay

Mydin Mohamed Holdings Bhd is a local business corporation in retail industry under the management of chief executive, Datuk Ameer Ali Mydin. The business starts its operation since 1957 in retail and general. In the financial environment, Mydin face task from other key players such as Large, Tesco, Carrefour and Econsave. Presently Mydin has 4 hypermarkets and its own total stores are 55 which located at Klang Valley, Terengganu, Kota Bharu, Seremban, Nilai, Johor, Alor Setar, Melaka, Penang, Pahang and Kelantan. To be competitive, the company blueprints to increase their business and develop organically. Mydin imposed low charges strategies and offer economically price goods to its customers. Surely, the enlargement and growth will influence the business purpose. Below is the assessment data of suppliers with its number of stores in Malaysia.


Number of stores



Total Giant stores: 100






38(supermarket & hypermarket)


4 hypermarkets.

Total Mydin stores : 55

Hypermarket list is not exhaustive.

[Business Times, Saturday, July 31, 2010]

Therefore I'd like to research whether Mydin's expansions and progress strategy is viable to the business enterprise to get market share and emerge as market innovator.


This commentary depends on these following helping documents;

MYDIN EXPECTS 10pc Surge IN Income,

Q&A with Datuk Ameer Ali (Mydin)/SKORCAREER

Mydin to built its biggest hypermart in Kota Baru/Business Times.

New logo, motto for Buy Malaysian Marketing campaign/mydin. com. my


Microsoft Helps Malaysian Retailer's Extreme Programs to Expend.

Malaysia mulls bar-code system for halal, products Business Times


Marketing Planning.

As a retail company in Malaysia, Mydin possessed put into action several marketing likely to boost their sales and obtaining bigger market share. Therefore, this commentary will analyze the marketing mix approached by Mydin to successfully market their product and formulate their online marketing strategy. Therefore, Mydin can movements towards learning to be a market head.

Marketing combine


Mydin has a wide range of products such as food line, soft line, hard-line and household items. Because of the wide range of product, Mydin will benefits from larger customer bottom part. This will give positive benefit to Mydin as its customer can obtain all products needed at lower and cheaper price. As an area player, Mydin provide items that are complement using its customers need. Majority of Malaysian are Muslims. Therefore, Mydin provide local prayer mats, prayer garment for ladies and traditional product that are rarely found elsewhere. However, Mydin should think about its non-Muslim customers because of the image of the place where only Muslim shops.


Besides, Mydin happens to be expending their business into different format namely hypermarkets, emporium, and My Mart (24 hour convenience stores). As described expansion of Mydin's chain by the entire year 2009 to 2020, the business forecasted to have 26 Hypermarket, 60 Convenience Store, 20 Emporium and 5 My Mart. This investment cost the business enterprise a large sum of money which is RM 200million for supermarket and 60 million for the building of hypermarket. The managing director will try to emulate the progress strategies of Kmart insurance agencies My Mart although Kmart experience bankruptcy. This growth can help Mydin, reachable because of its customers with various channel of distribution. For instance, the choice to create the largest hypermarket in Malaysia at Kota Baharu is due to popular and greater land available. However, Mydin should consider their large expansion as they might be afflicted by diseconomies of scale.


In terms of promotion Mydin apply 'me-to-promotion' where Mydin follow and react to their rivals marketing strategies such as purchasing similar advertisement plank and article from newspapers. Among its shops in Subang Jaya has an electronic billboard, controlled digitally from its office. This provides fast response toward its rival's advertising campaign. Besides, Mydin should consider having other marketing strategies such as advertisements through website or radio to provide complete information and awareness of their living.


Mydin is well-known for selling its product at inexpensive price (40% of its business is low cost). As compared to its rival, (Large, Tesco and Carrefour) Mydin is a well liked place for shopping especially in period of economic down switch. They gain RM 1. 3 billion in 2009 2009 from RM 1. 1. in 2008. This shows that as Mydin increase naturally, they gain durability in amount, thus can sell cheaper when compared with its rivals. Therefore, the situation is inciting its marketing objective.


Market positioning is essential to portray a good corporate image and differentiate Mydin's product over rivals. The unique selling point (USP) of Mydin that makes the business stand out from others is the embracing the idea of Halal (following the dietary legislations in Islam). Because so many Malaysian are Muslim and very particular in Halal product, the USP is an added gain.

Mydin popular slogans: "Where every person can buy" provide a perception towards the clients that in retail industry, you can buy product cheaper at Mydin. But Mydin need to sustain the image by giving items cheap rather than providing cheap items with low qualities. Mydin can perceive its brand to be a discount brands (at high quality but with good deal) although it's hard to preserve. Therefore, with the growth and growth strategies, Mydin is moving from Economy brands towards Great buy brands.





Premium brands

Cowboy brands


Bargain brands

Economy brands


Figure 1: Belief map showing marriage between price and quality.

The slogan is in line with government's plan, 'Buy Malaysian" which educates Malaysian to buy local product (Mydin provide local product on its racks). Mydin's shop at Subang Jaya has been chosen as the area for exhibition attends by Primary Minister to unveiling the advertising campaign. Besides, Mydin together with Halal Development Council (HDC) arranged Halal training program course for small- and medium-sized internet marketers (SMEs). The organization social tasks (CSR) done by Mydin boost its image and can attract customers to choose Mydin instead of others.


Product Planning.

As Mydin grow, the business enterprise may afflicted by overtrading scheduled to stockpiling. This example can increase cost and later absorb on the price tag on product. Hence, Mydin decide on Microsoft Dynamics AX for Retail to applied Just-In-Time stock management. The program provides information for its suppliers and decision-makers so that the distribution of companies runs easily from stores to provide chain. By this, Mydin can be more attentive to its customers, reduce their break-even point, and improve cashflow and the working capital pattern. Therefore, provide competitive advantages towards its rival.


Organizational Framework.

Besides, Mydin interfere coordination issue of its managers as the business enterprise grow hierarchal taller and wider span of control. Communication across the organizational structure can be frustrating and using circumstance may be distorted. To triumph over this, Mydin decide on Microsoft Office SharePoint Server 2007 which allows large information to be provided to all layer of the business and its own suppliers.


In becoming a market head, Mydin will need to have a productive employees to create much larger working capital. 16. 2% of its staff are foreigners and the rest of the are locals. To build sense of belonging to work and create teambuilding between staff, the company provides financial and emotional support. Corresponding to Maslow's hierarchy of needs, people are encouraged more than just money. Mydin fulfills the cultural needs of its employee by executing birthday parties, ethnic dance and inter-branch activities.


Mydin has carried out huge extension and organic progress of its company. They try to gain their market share by becoming more competitive toward its competitor. In becoming so, a transformation throughout the business is done. Based on the marketing planning completed, Mydin happens to be on the right way towards its corporate objectives. We can notice how Mydin develop strategic marketing combine to successfully market their product. However, there may be some areas that needs to be improved and focus on. In terms of product, Mydin can make an effort to draw in non-Muslim customers insurance agencies a advertising or creating a graphic of Mydin as a place for anyone.

Besides that Mydin has wide channel of syndication. However, Mydin should also consider interacting with diseconomies of scales. One of the selections is by launching measures to eliminate beneficial inefficiencies. Mydin might count number the effectiveness of each one of the business format. The marketing strategies suggest that Mydin can gain higher market share from its competitive gain in advertising and price.

In placing their product, Mydin experienced done it well through their USP, slogan and CSR performed. They have the ability to give clear conception of the business to open public. Hence, they can gain more customers in the foreseeable future. In operation management and recruiting, Mydin try to centralize their management to hinder business runs at loss and make efficiencies. Their decision to cooperate with Microsoft Corp. is a right choice to put Mydin at top among other key players. Also, without neglecting its employees needs and requirements.

Overall, based on the examination of marketing planning, procedure management and human being resource Mydin development and expansion strategies is feasible for the business to be always a market head in retail industry.

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