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marketing management

Working Paper · March 2016

DOI: 10.13140/RG.2.1.4244.5206

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MARKETING MANAGEMENT
BUSINESS AND MARKETING STRATEGIC
: AEON HYPERMARKET
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Table of Contents
PRELIMINARY EXECUTIVE SUMMARY .............................................................................................. 4
1. COMPANY BACKGROUND ............................................................................................................. 5
2. SITUATION ANALYSIS ............................................................................................................................ 8
2.1 Green and trendy ........................................................................................................................... 8
2.2 Technology .................................................................................................................................... 8
2.3 New frontier .................................................................................................................................. 8
2.4 Revolution of Shopping Centers ................................................................................................... 8
2.5 New Trends in Shopping Centers ........................................................................................................ 9
2.6 Customer wants .................................................................................................................................. 9
3. SWOT ANALYSIS .................................................................................................................................. 10
3.1 SWOT Analysis ................................................................................................................................... 11
3.1.1 Strengths ........................................................................................................................................ 11
3.1.2 Weaknesses .................................................................................................................................... 11
3.1.3 Opportunities.................................................................................................................................. 12
3.1.4 Threats............................................................................................................................................ 12
4. MARKETING GOALS AND OBJECTIVE .................................................................................................. 13
5. MARKET STRATEGIES (4P) ....................................................................................................................... 14
PRODUCT .................................................................................................................................................... 14
a) Product-oriented Reforms ................................................................................................................... 15
b) Organizational changes to promote product-oriented reforms ........................................................... 15
PRICE ........................................................................................................................................................... 15
DISTRIBUTION CHANNELS ........................................................................................................................... 15
PROMOTION ............................................................................................................................................... 15
6 IMPLEMENTATION ......................................................................................................................... 18
6.1 Mission.............................................................................................................................................. 18
6.2 Marketing Objectives ........................................................................................................................ 18
6.3 Target Market.................................................................................................................................... 18
6.4 Market Needs .................................................................................................................................... 18
6.5 Positioning ........................................................................................................................................ 19
6.6 Marketing Mix .................................................................................................................................. 20
6.7 Structure Renovation ........................................................................................................................ 21
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6.8 Hybrid Shopping ............................................................................................................................... 21

6.9 Specific Customers and Purpose ....................................................................................................... 22
7. SUMMARY ............................................................................................................................................ 24
RECOMMENDATIONS ............................................................................................................................ 26
SUPPLEMENTARY REFERENCES ........................................................................................................ 27
APPENDICES ............................................................................................................................................ 27
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PRELIMINARY EXECUTIVE SUMMARY

The retail industry are changing the lifestyle of shoppers and customers. Every retailing giant are
trying to build new lifestyle shopping centers in order to stay relevant in the competition.
In this paper, we develop a marketing strategy for Aeon Mall to continue to attract customers in
this competitive environment. Our plan is designed to provide customers with a diverse,
comfortable and convenient shopping experience.

Our goal is for Aeon Mall to continue to be the major regional destination for shopping and
leisure activities.
Carrefour Malaysia will be rebranded as AEON BIG, under the independently operated AEON
BIG (M) Sdn Bhd.

AEON BIG will comprise hypermarkets with a different target audience. Moreover, there are
just about 8 out of 26 Carrefour (M) stores within a 2km radius from an AEON (M) store.
Positively, with an enlarged presence in Malaysia, there are potential synergies in aspects such as
information technology, distribution network, product development etc.

AEON Co. (M) BHD has plans to open 100 stores in various formats in Malaysia and aims to
achieve MYR11.4b in revenue by 2020. If integrated, AEON Malaysia would be the second
largest retailer in Malaysia after Giant, generating annual sales of close to MYR5b.

By sharing know-how developed in retailing and creating global merchandise supply chains and
other infrastructure, AEON Co. (M) BHD aims to develop synergies to strengthen
competitiveness.
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1. COMPANY BACKGROUND

AEON CO. (M) BHD. is a leading General Merchandise Stores (GMS) cum supermarket chain
in Malaysia, being the country’s leading retailer with a total revenue of RM 3.71 billion for the
financial year 2014, with retailing business contributed RM3.193 billion and property
management services contributed RM512.3 million. AEON CO. (M) BHD must maintain the
status as the main leading hypermarket/ mall within its target segment customers .

Aeon Malaysia is a super regional retailer in Malaysia. They currently owns supermarkets and
hypermarkets across the country and expanding growth gradually.

Aeon Malaysia incorporated in 1984 in response to the Malaysian Government’s invitation to

help modernize the country’s retailing industry, AEON’s chain of stores across peninsular
Malaysia strives to satisfy the ever changing needs and desires of consumers.

It later bought the Malaysian arm of French retailer Carrefour SA in 2012 for 250 million euros
($275 million). Following the acquisition and subsequent rebranding of Carrefour Malaysia to
Aeon Big (M) Sdn Bhd, Aeon’s retail position is further strengthened with 31 Aeon stores and
28 Aeon Big outlets in Malaysia.

They are planning to buying Tesco's operations would make Aeon Malaysia's biggest
hypermarkets group. Their has 28 hypermarkets in the country and plans to open 100 more stores
in various formats by 2020. Aeon also owns 51.7 percent of Aeon Co M Bhd, which has 29
outlets and 4 MaxValu supermarkets in Malaysia.

Depending on location and customer profile, Aeon’s store sales growth in Malaysia ranges
between 1% and 18%.
At the same time, Aeon is also facing stiff competition with mushrooming convenience stores
and other mid-market players such as Econsave. It is also competing against GCH Retail
(Malaysia) Sdn Bhd, which operates Giant, Cold Storage, and Guardian pharmacy.
 6

AEON strongly supports environmental sustainability. It actively supports various causes,

including recycling, energy conservation and tree planting, engaging and encouraging various
parties, including staff, customers, NGOs, government agencies and the community at large.

On 2014 marks a significant milestone for AEON CO. (M) BHD. with 30 years of excellence to
boast, by staying relevant and competitive in the dynamic market.

AEON CO. (M) BHD stone craft vision, mission and philosophy, really reflect by their
subsequence successes from years to years.

Its vision “to establish a solid competitive position and achieve continuous growth”.
Its mission “to operate as an international-scale retailing group, recognized for excellence not
only in Japan, but also in other nations.

Its philosophy focus on the customers, the people and the community. By giving the right price,
with the most complete wholesale items, for the local community people and bringing people
together through their community service responsibility .

PEACE

THE
CUSTOMER

PEOPLE COMMUNITY
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Guided by its “Customer First” philosophy, the company’s acute understanding of their target
market needs, aided by optimal product-mix, AEON strives to surpass consumer expectations
and enhance their experience every time they shop.

Hence their tagline “AEON Enriching Your Lifestyle”.

Within the next three years, two new Lifestyle Centers are planned for the Malaysian market.
Lifestyle Centers try to recreate the feeling of shopping with their open air design and mix of
shopping, restaurants, and movie houses.
By sharing know-how developed in retailing and creating global merchandise supply chains and
other infrastructure, AEON Co. (M) BHD aims to develop synergies to strengthen
competitiveness.
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2. SITUATION ANALYSIS

2.1 Green and trendy

Totally enclosed malls with advantages such as artificial lighting, fully air-conditioning
are no longer main attraction for hypermarkets. Instead, open-air greenly areas are being
in-built and are making a trends within the malls industry designed and giving green
recycle policy a thumb- up. Two of the more popular types are leisure time/lifestyle
centers and convenience value added centers.

2.2 Technology
AEON’s top priority is to ensure consistent flow of communication in their supply chain
network between the suppliers, the logistics and warehouse, to the ground staff and
management team. Three main categories in maximizing customer spending, mainly,
General merchandise store, Hyper market Mall, Index Living Mall. All this will be
upgraded once Aeon Mall comply to the high technology communication system,
multimedia advertising, interaction bill board and information.

2.3 New frontier

AEON’s continuous objective and aiming as the leading commercial retailer in Asia,
through its strategies such as developing new concept malls and actively opening malls in
abundantly populated region like China and Asian region.

2.4 Revolution of Shopping Centers

Enclosed suburban shopping malls became popular, since the move from downtown
department stores to suburban shopping malls, retailers have evolved the shopping
experience to include factory outlet malls, power centers, cybermalls and now lifestyle
shopping centers.
Fifty years ago, 55% of retail stores were located in shopping malls. Today, that
percentage has dropped to approximately 20%.4.
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Accordingly, 80% of new retail developments are free-standing. These stores are
often built next to or across the street from a commercial or other large store.
Despite convenient parking and close to other stores, there is a drawback – minimal
foot traffic between stores. Developers of free-standing shopping centers are
concerned with a lack of foot traffic as this was a once a key benefit of the enclosed
shopping mall.

2.5 New Trends in Shopping Centers

The once-revolutionary shopping malls that took weather out of the shopping equation
are being pushed aside by retail developments with a fresh-air and mixed-use
sensibility. "Lifestyle Centers" and "Town Centers" are replacing the mall experience
by attempting to create a sense of community, and positive, varied experiences. These
new centers will create a new areas of sales for Aeon Mall. Implementing Lifestyle
Center characteristics and providing unique new services is critical for continued
success. These niche centers are bigger and focus on food, entertainment, music, books,
home goods, etc.

2.6 Customer wants

Customers park outside an attractive set of buildings and walk into a pedestrian
friendly environment. These centers are successful in affluent markets and focus on
“shopping” not “buying.” Citing a trend in the shopping center industry for department
stores and other major retailers to open stores in suburban shopping and power centers.
Retailers are taking another look at properties inside-the-outer-belt for their expansion
plans. Several of our centers offer prime redevelopment opportunities and put retailers
closer to their customers in stores with lower rents and operating costs than mall
locations.
Consumers also appreciate the convenience of in-and-out shopping in their own
neighborhoods.
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3. SWOT ANALYSIS

STRENGTHS WEAKNESSES

+ AEON BASIC PRINCIPLE - LESS SPACE

+ POWER PRICING - WEAK MANAGEMENT
+ COST ADVANTAGES - CUSTOMER SERVICE
+ CUSTOMERS LOYALTLY
+ BRAND NAME
+ SUSTAINABLE CORPORATE SOCIAL
RESPONSIBILTY
+ COMMUNITY FOCUS
+ EDUCATE CUSTOMERS SHOPPING
SKILL AND AWARENESS

OPPORTUNITIES THREATS

+ PURSUIT CUSTOMER SHOPPING - INTENSE COMPETITION

BEHAVIOUR AND SPENDING STYLES - SUBSTITUTE PRODUCTS AEON
+ ONLINE E-COMMERCE MARKETS
+ NEW MARKETS
+ INTERNATIONAL EXPANSION
+ COMMON EASTERN CULTURE
+ ASIA WORLD’S LARGEST MIDDLE-
INCOME EARNERS MARKET.
 11

In line with Aeon Mall basic principle, i.e remains committed to the development of its people in
its quest to be the best retailer in providing excellent shopping experience and in enriching the
lifestyle of its customers. Aeon Mall strives to equip its employees as knowledgeable brand
ambassadors who have the right skills and culture to provide the highest level of service and
widest range of merchandise.

3.1 SWOT Analysis

3.1.1 Strengths

a) Aeon Mall is managed by Aeon Co. (M) BHD. They are one of the main retailer in the
regional mall industry. The management understand the upcoming challenges that regional malls
face in the near future and have numerous ways to strengthen each hypermarket depending on
their specific qualities.

b) Aeon Mall has been the main shopping center in the retailing industry for thirty years. Loyal
or not, many people have been used to shopping here because of its variety of stores.

c) Aeon Mall is positioned along major commercial areas or highly density population and is
close to major growth corridor.

3.1.2 Weaknesses
a) Less space for food courts and car parks
Aeon Mall has a food court that offers little to the shopping experience. In term of food
choices, tastes buds, seating arrangements. Many customers want the convenience of parking
close to their retail destination. Customers can park on the wrong side of the mall and have a
10 to 15 minute walk to their destination.

b) Weak management
They prefer the local community manpower as one of their community service responsibility.
Sometimes under skills and unexperienced but cheaper and easier to employ due to locality
job seekers. Regional malls are losing appeal as other types of centers are opened, hence
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customer services and product knowledge are crucial in the retail markets. There is no feeling
of warmth in the mall, as their workers are more countable with their wages then the service
and comfort of customers. It is definitely showing in this economic recession period .

3.1.3 Opportunities
a) Adding Lifestyle Center characteristics to attract Baby Boomers looking for an upscale
shopping experience.
b) Offering customers unique service features found nowhere else.
c) Targeting the mall experience to a more widespread customer base.

3.1.4 Threats
a) Competition from other Lifestyle Centers and losing anchoring at new prime location .
b) Major super centers and other new store openings in area small towns reduce
shopping traffic to its mall.
c) High gas prices reduce the number of times people come to its mall to shop.
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4. MARKETING GOALS AND OBJECTIVE

AEON’S GOALS
They intend to implement its six priority strategies based on the concept ‘take-off towards
growth’, in an effort to become the leading commercial retailer in Asia, moving toward the
age of fully-fledged ‘Omni-channel’ retail, and also working to integrate experiences,
products and online services into our real-worlds malls.

AEON expanding program include opening 26 domestic mall in next three years, intending to
develop new concept malls to suit each location, and to strike a balance between revitalizing
local communities and improving revenue.

AEON foundationning on its communities focus and communities social responsibility and
strengthening its branding strong-hold. AEON family friendly second-home venue.

AEON considering customer transportation mode, focusing on ample free digital real empty
space parking system, and coordinating public transportation such as town buses, city bypass
and crossing train infrastructure, locating adjacent to public square and communities hotspot.
Airports and jetty and ports. AEON develop malls in line with the characteristics of each local
area, working in partnership with local communities to create towns that keeps on evolving.
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5. MARKET STRATEGIES (4P)

Taken together, the Aeon Co. BHD., implementation choices across the 4 Ps are often described
as the marketing mix, meaning the mix of elements the business will employ to "go to market"
and execute the marketing strategy.

The overall goal for the marketing mix is to consistently deliver a compelling message that states
the benefits derived from purchasing the product or service and why it is better than similar
products that are for sale.

It is this value proposition that reinforces Aeon Co. BHD., chosen positioning, builds customer
loyalty and brand equity among target customers, and achieves the firm's marketing and financial
objectives.

PRODUCT
"Now, That's Smart Living!"

The AEON Group's strategy for private brand is threefold.

First, to deliver AEON's philosophy and ideals to the customer and focus towards customer-
centricity by listening to and acting on the customer's voice in developing products and services.

Second, to deliver incremental profitability, sales and strengthening AEON's competitive

advantage through differentiation.

Third, to make private brand the bond that unites AEON Group and is the source of pride for all
AEON associates.

These three-pronged strategies for Aeon Co. BHD private brand is the foundation for the
MaxValu brand identity and positioning, not only in Japan but all international markets in which
the AEON Group operates and markets private brand.

AEON Malaysia's exclusive private brand for its customers. Customer look for quality, safety,
value pricing, and brands that add values rather than just being promoted through normal
marketing and advertising, such as:

a) prides itself on always providing the best choice for its customer
b) uses the customer voice in developing product
c) is safe and environmental friendly
d) provides all relevant nutritional and ingredient information
e) is always the best value in the store
f) guarantees your satisfaction
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a) Product-oriented Reforms
Malaysia is experiencing increases in the population of senior citizens, single-person
households, dual-income households, and urban inhabitants. Aeon Co. BHD is striving to
respond to the significant change and diversification of consumer needs accompanying these
social trends by carrying out product-oriented reforms which can ensure future growth in
retailing revenues and profit.

As part of this initiative, Aeon Co. BHD aims to raise the ratio of Maxvalue products sold
through GMS, supermarkets, discount stores and other Group retail channels as well as to
establish the brand as the leading private label in Malaysia in terms of scale, quality, safety and
reassurance.

b) Organizational changes to promote product-oriented reforms

In order to promote product-oriented reforms, Aeon Co. BHD adopted a product-based
organizational structure from fiscal 2014. The product and marketing organizations have been
unified to create a structure which can develop products with new value based on a deeper
understanding of customer needs.

Under the new structure, Aeon Co. BHD will promote the development of strategic product
categories to configure new sales floors for GMS, supermarket and other retailing sales areas.

Additionally, in conjunction with the market growth , Aeon will strengthen its merchandizing
function in order to respond to customer demand for high-quality products.

PRICE
Pricing (at what price slot does a producer position a product, e.g., low, medium or high price),
Aeon Co. BHD always catered for all ranging price products.

Based on its location and selection of merchandised . Those located in big town , main prime
commercial area, their pricing may fall between medium to high price, based on its local
purchasing power and branding products. Whereas in new town and smaller populated town,
their product may range from low to medium, just to satisfied the local shoppers basic need and
purchasing power.

DISTRIBUTION CHANNELS
Place (i.e., sales and distribution channels; the place or area where the products are going to be
sold, which could be local, regional, countrywide, or international),. They currently owns
supermarkets and hypermarkets across the country and expanding growth gradually .

PROMOTION
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Aeon Co. BHD, sales promotional tactics include contests, coupons, freebies, loss leaders, point-
of-purchase displays, premiums, prizes, product samples, and rebates.

Sales promotions can be directed to consumers, sales employees, or other retailers.

To encourage their supermarkets and stores to stock and display their products, Aeon Co. BHD.,
use sales promotion techniques including deal loaders and trade allowances.

Sales promotion may be referred to as "below the line" or "point of sale. " For example, price
reductions at the cash register or complimentary gifts with purchases all fall under sales
promotional tactics.

The objectives of a sales promotion is to increase consumer demand, stimulate market demand,
to get potential buyers to heed a call to action, increase the size of purchases and improve
product availability using media and non-media marketing communications.

Sales and coupons are some of the most common sales promotion tactics to stimulate interest and
encourage consumers to purchase products. Reward programs focus on customer retention and
repeat purchases, awarding customers points, miles, or credits for purchases and future
redemptions.

Besides price reduction and loyalty programs, point-of-purchase displays are a common tactic
used by brands to prompt "impulse" customer purchases. For example, house own brand items or
‘buyerable’ items such as chewing gum and candy are often placed next to the register to
increase sales of those products.

Other promotional tools include coupon booklets, mobile couponing, on-shelf couponing, as well
as product signage and packaging, which are strategically placed to encourage immediate
customer sales.

For new marketing initiatives, brands implement retail "mechanics" such as "Buy One, Get One
Free" Or "Three for Two" promotions to encourage consumers to buy new market releases.

Brands also use sales promotion techniques to encourage supermarkets and stores to stock and
display their products.

Some of these trade promotion activities are:

Trade allowances - Short-term incentives offered to retailers to stock up on a product.

Dealer loaders - Incentives used to persuade retailers to purchase and display a product.

Trade contests - Contests used to reward retailers that sell the largest quantity or highest units of
a brand's product.

Training programs - Training instructing dealer employees in selling the brand's product.
 17

Push money (also known as "spiffs") - Extra commission paid to retail employees to push
products.

Trade discounts (also called functional discounts) - Payments to distribution channel members
for performing certain functions.

Promoting product, sales areas responsive to customer needs

In modern society, customers have less time to prepare meals at home, and this trend is expected
to accelerate in the future. To respond to changing customer lifestyles, Aeon will innovate its
products and sales areas based on such sales concepts of “pre-prepared” and “healthy organic”
instead of the traditional sales area concepts of fresh foods and food ingredients.
 18

6 IMPLEMENTATION

6.1 Mission
Since nationwide mall traffic is down 30% in the last 5 years and the department store
percentage of total retail sales has dropped from 7% to 4%, it is imperative that Aeon Mall
develop a strong strategy to stay competitive.

6.2 Marketing Objectives

Over its thirty year history, Aeon Mall’s customer base has moved down the socio-economic
ladder. Customers are now predominately from Class C (middleclass). The objective is to
increase its market share of Class B (upper-middle class) and Class A-minus (lower upper class)
customers, especially baby-boomers.

6.3 Target Market

Teenagers make almost 40% more trips to shopping malls than other age groups. They spend
RM97.3 million annually, and therefore comprise an important market segment for Aeon Mall.
The second largest target market for Aeon Mall is dual-earner young married couples. This
group typically has a desire to remain fashionable and their children strongly influence many of
their expenditures.
The baby boomers, who account for 28 percent of the population, are spending more than any
other age group. Now more than ever, they have resources and time to shop. Therefore, it is
extremely important to recapture this huge market.
The current awareness benefits of halal products has redirect Aeon mall to increase their focus
on halal product for local and overseas markets.

6.4 Market Needs

With over 70 percent of purchase decisions being made by women, it is important to
meet their shopping needs. This means entertainment areas for families and children
when they accompany a parent on a shopping trip. Therefore, Aeon Mall must develop strategies
to provide family-targeted experiences in order to attract the essential female and family markets.
 19

6.5 Positioning
In order to get people to buy, you have to get them there, and the entertainment coefficient in a
mall is something that builds traffic-pure and simple. Therefore, shopping at Aeon Mall should
be a diverse experience that the new smaller shopping centers can’t offer. Entertainment and
recreational activities should be incorporated within the experience.

It is recommended that a positioning theme be developed for Aeon Mall based, not on its
physical attributes, but on customer feelings toward the shopping area. The most important
characteristics include a comfortable atmosphere, friendly service, appearance/cleanliness,
convenience, quality of merchandise and reasonable price, variety of products.

Its embracing the concept of Halal products and Halal certification will maintain its customers
locally and also increase greater and new market world wide.
Its contribution in the country they operate help local enterprises in buying at wholesale price for
consumers, distributors and retailers.

a) Shift to urban markets

Aeon will accelerate the expansion of small-scale urban-type supermarket chain Aeon Big,
which achieved profitability in fiscal 2013, as well as small-scale discount store chain Value4.
Aeon will also continue to fortify its business platform in major urban markets in Malaysia
through the expansion of Aeon Co (M). BHD, which were made consolidated subsidiaries in
fiscal 2013.

b) Shift to senior-oriented markets

Positioning seniors who enjoy an active and consumption-rich lifestyle as the “Grand Generation
(G.G.),” the Group has tried to develop business models specifically targeting this group of
consumers, including the “G.G. Mall” and “G.G. Cards.” Under its new Plan, the Group will
accelerate shift to senior-oriented markets by making efforts to duplicate successful models in
other parts of its operations, while seeking to develop product concepts that meet the needs of
active seniors and strengthen associated ranges of merchandise.
 20

c) Shift to digital markets

Under the previous Plan, Aeon mall to establish a foundation for the shift to digital markets
through the launch of the AEON SQUARE comprehensive portal website, the nationwide
expansion of AEON Net Super, and the development of other platforms.

Rather than just focusing on e-commerce to allow consumers to purchase goods online, the
AEON Group aims to leverage the benefits of its multi-format store network across Malaysia to
pursue omni-channel ‘clicks-and-mortar’ retailing strategies, such as in-store pickup of goods
ordered online or home delivery of products bought at the store. This approach of omni-channels
promises to help accelerate the Group’s growth.

6.6 Marketing Mix

Aeon Mall should change its marketing mix in the following areas.
• Pricing. Prices should match those of life-style shopping centers. Entertainment options
will be competitively priced to attract the family market.
• Advertising and Promotion. This is important because Aeon Mall needs to rebuild its
image. We recommend that Aeon Mall hire an advertising agency to assist in planning
advertising campaigns. Because Aeon Mall’s trade area is so large, coop television and
newspaper programs with the stores makes a lot of sense. Newsletters and newspapers
within a 5 km radius can run ads every month ends, pushing sales or special events.
• Special Events. These special /events should be scheduled at least once a month or
every weekend base on its locality. Special events are great opportunities. For example,
the back to school bash on year end, holiday and festive seasons attracted 70% of the
people. These types of events bring in large pieces of incremental business and reduce the
impact of competitors. Also, bringing in popular current musical acts is a big draw
pullers.
• Operating Hours. Mall should consider staying open late one Friday a month and
having an indoor concert series. Aeon Mall should take advantage of its highly visible
and convenient location in housing estate and major town center. Attract customers to
visit, shop, and eat, regularly.
 21

• Customer Service. Aeon Mall should actively survey customers and look for
opportunities to improve their customer service.

6.7 Structure Renovation

Aeon Mall should change its image by painting and design the exterior an earth tone such as
Terra Cotta. This gives the mall a more inviting appearance. Also, large awnings on the exterior
would help to soften the look. The interior should be renovated to make it more inviting, keeping
people in the mall longer. Painting with earth tones and adding texture such as stucco or murals
would give the feeling of warmth. Decorative fountains should be placed throughout the mall
to enhance the atmosphere and create a town square feel in multiple locations.
Themes, such as China town, Little India, Malay kampong ,New York, Paris, London, etc.,
should be developed throughout the mall. As customers walk the length of the mall, they’ll
“travel” the world.
All mall should consider building free standing centers on each side, parallel to the corridors.
This would provide maximum exposure. The new space would be filled with upscale shops and
restaurants with extended mall hours.

6.8 Hybrid Shopping

Online shopping has grown exponentially over the past five years. This has eroded store sales
because the products can be ordered and shipped with less manpower than the traditional brick
and mortar store. Hybrid shopping allows customers to order products from the company website
and immediately pick it up at the mall.
This helps those uncomfortable with pure online shopping. Hybrid shopping is more like calling
the store and having them pull the order. Also, the customer has a physical place to take returns
and an actual person to assist with any problems.

The mall should have a designated store front at one of the main entrances with designated
parking so the shopper could get in and out quickly. The second option would be to create a
drive through feature so the customer would not even have to get out of the car.
 22

6.9 Specific Customers and Purpose

 Men’s Place / Area
Men are sometimes asked to accompany their wives to the mall to shop. Aeon Mall should create
a men’s cluster for this group. It could include a sports restaurant with plenty of seating, an
indoor driving range, a batting cage, etc. Also stores such as Restoration Hardware provide
unique, fun products that can keep men occupied for long periods of time.

 Special Food Court and Restaurants

Aeon Mall’s food court should be placed near a play area designed to appeal to, not only the
family market, but also the homemaker market. It will generate substantial non-peak-time
weekday business. Homemakers are always in search of locations they can visit while their
children play nearby. Food courts are great locations for meeting, with a food selection better
than that of individual fast food restaurants. Each time the homemaker comes, there is a high
probability they will make some other purchases.

The variety of restaurants should be increased to target different markets including the price
conscious, children, and tourists. Some restaurants should be first choices when customers
consider celebrations, receptions, meetings, and business events.

 Integrated Entertainment Place for the Kids, the Young, and the Adults
Aeon Mall incorporates entertainment and unique family opportunities into their shopping
experience. It ensures their competitiveness in the changing retail landscape. Many new centers,
especially the urban-based ones, are devoting 40 percent or more of their offerings to
entertainment, restaurants and cinemas. Entertainment can include such simple additions as a
carousel, a children's play area, or larger entertainment destinations such as ice skating rinks,
skate parks, and multi-screen cinemas.

The free play area should be integrated into the central food court and offer edutainment-oriented
play to attract educated market segments. The multi-screen cinema, ice skating rink, and skate
parks will also be important entertainment anchor for lucrative youth market.
 23

The best example is the Smart Wonder World.

Smart Wonder World (SWW) began its operation in 2006 at AEON Taman Maluri Shopping
Centre and there are now 15 SWWs in AEON stores in Malaysia.
Bearing the concept of "Brighter, Safer & Family Oriented", our SWW is not just for children
under 12 years old but caters for all who patronize AEON stores.

The bright and safe surroundings coupled with a wide selection of game machines for all ages
are what make our SWW exciting and exceptional from the others. We have Kiddy Rides for
young children, sports related games such as basketball and hockey stadium and other fun
exciting games such as shooting, car racing and dance machines to cater to all.

In line with the Company's objectives, SWWs will be established at all new AEON stores. SWW
meets the needs of all, being an amusement center that is both conducive and safe for parents and
children.
 24

7. SUMMARY

On 2014 marks a significant milestone for AEON CO. (M) BHD. with 30 years of excellence to
boast, by staying relevant and competitive in the dynamic market.
In commemorating its 30th anniversary, the celebration will continue to enrich lives of
Malaysians and growing the nation with passion, love and inspiration.

A planned marketing strategy will help foster a competitive advantage for Aeon Co. BHD.
To regain market share, Aeon Co. BHD., must heavily invest.
Firstly, it needs to renovate the exterior and interior appearance of its facility to make it more
inviting to customers.
Secondly, time and money must be spent on the advertising and promotion in order to rebuild its
image.
Thirdly, efforts must be made to entice the Baby Boomers-new department stores, hybrid
shopping, men’s cluster, etc.
Lastly, entertainment options must be added to capture the lucrative youth and family market.
This is a significant investment; however, the potential profitability would cover these costs.
Also, these types of changes may be necessary to even stay alive in this highly competitive
environment.
Several improvement can help Aeon Co. BHD., thrive in the current economic market.
Diversification of current product range , in term of varieties , categories market target, family
homely household wholesale, seasonally periodic sales. More closely customer engagement like
comfort of staying inside more hours in hypermarket, by provided clean efficient restrooms,
baby diapers changing rooms, sufficient sitting/resting areas, completely right surau in term of
location, space and comfort.

Aeon Co. BHD., can also increase working performance and skill, by sending new prospect or
existing employees, supervisors, leaders, sales personals, promoters and supporting workers, to
job training , inhouse and outsource, in order to maintain the highly expectations from Aeon Co.
BHD., existing and future customers.
 25

Aeon Co. BHD., can also encourage and attract ‘educate shopper’ by providing helpful and
knowledgeable shopping skills and good habits. This make customers feel important and wise, in
making their choice in buying, spending, stopping over for their shopping spree.
Aeon Co. BHD., must also increase its electronic and technology , such as real time screen
billboard, escalators, bubble lifts , linear escalators, electronic shopping carts, baby carts and
cars. To remain relevant in this highly competitive business, they needs to understand its
customers, reckons the capability of its competitors and be at ease with technology as a strategic
tool.

Aeon Co. BHD., has the potential to maintain as a lifestyle mall/ hypermarket/ supermarket.
With their right move and wise extension strategy , it is not surprise if one day, they would be
the leading and the biggest mall/hypermarket/supermarket in Malaysia. To support dynamic
growth toward year 2020, the Aeon Co. BHD., plans to construct a robust financial base,
focusing on the maximization of cash flows by improving returns on investment and diversifying
the means of funding. To serve the demand of customers and trend setters, Aeon Co. BHD., may
have to expand and ventured into fresh wet markets like Cold Storage and adding health and
wellbeing services such as Guardian Pharmacy under their new investment budget and securing
greater customers in the future.

Recently was reported in the local newspaper , stating that Aeon Co. (M) BHD is talking and
planning to buy over Tesco (M ) Bhd., as part of their expansion program . It does not help too
that the rising cost of doing business and economic uncertainties will likely weigh consumers'
sentiment, which may reduce purchasing power and affect spending pattern. Even though Aeon’s
store expansion strategy will drive sales growth, the market remain cautious on pressure that is
affecting its profit margin. Indeed, the market will closely monitor Japan’s Aeon expansion plan
in Malaysia.
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RECOMMENDATIONS
1. Continuous entering new markets and global markets. prove
2. Improve quality in products, services, management and technology.
3. Increase promotion and producing of own house brand product.
4. Improve management operation , financial investment and retailing industry.
5. Continuously understanding retail industry, customers demand and employee needs.
6. Grand and fresh showcases , displays and mall appearance.
7. Staying ahead and focus in the retail industry competition by following on their
competitors programmed and plans, and making the right changers in their retail malls
concept regularly.
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SUPPLEMENTARY REFERENCES

1. Marketing Management (14th Edition) 14th Edition

by Philip T Kotler (Author), Kevin Lane Keller (Author)

2. Hug Your Customers:

The Proven Way to Personalize Sales and Achieve Astounding Results
Jack Mitchell

3. Marketing With Social Media: 10 Easy Steps to Success for Business

Linda Coles

APPENDICES

1. Aeon Co. (M) BHD annual report.

2. Reuter report
Wednesday, 22 july 2015 , Is tesco Malaysia up for sale

3. Industries report :
Tuesday 7 jul, 2015 : update 1 – japan’s aeon interested in buying tesco’s Malaysia
unit- sources

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