Giant Hypermarket

Brand Reinvent Strategies

Veritas University College

MBA: Marketing Management
Prepared by: Yap Thiah Huat
Executive Summary
1. Organization background
Owned by Giant Capital Holding (GCH) Retail
Incorporated in 1974 by Teng’s Family
Subsidiaries Include Guardian & Cold storage, Jason’s and
Mercato
Financial strength : Revenue RM (2018)
More than 130 outlets
More than 10000 employees nationwide

2. Branding Tag Line

Everyday Low Prices, Big variety and Great Value

2. Key products
Everyday groceries, Fresh produce & fresh foods
 Current Market Analysis
2019 GC H Re ta il Sa le s Gro wth (2013- 2017 ) %

Retail Growth 4.5%

( s o u r c e d f r o m s t a r R G M 8 J u n e 2 0 1 9 )
-

• Weak Internal & External

-1
economy environment
• Low consumer spending -1
• Harsh competition
-1

( s o u r c e d f r o m S S M 2 0 1 7 )

Giant need to reinvent its branding & adopt new marketing

strategy
• Increase market share
• Optimize operation efficiency & generate profit

companyname.com 3
 GIANT Sales Analysis

GCH Retail Sdn. Bhd Sales Revenue

(in Million RM)
6000
5709
5000
4792 4781 4771 4608
4000

3000

2000

1000

0
2013 2014 2015 2016 2017
 GIANT SWOT Analysis

• Strong brand Reputation • Variety of house brand

•
•
Competitive pricing
Large economy scale
S O • Outlet @strategic
location
• Strong in rural area • Huge customer base

• Stiff competition
• High turnover
• Lack of efficiency W T •
•
Substitute placement
Mini market
• High advertising cost
• Online Marketing
 Market Analysis
Political Technological
• Regulatory Compliances • RFID technology
• Mobile E-wallet

Environmental
Economical
• Economy downturn. • Green Environment
• Low consumer spending • Reduce pollution

Social Legal
• Group buy via mobile apps • House brand patent
• Discount
 GIANT Porter’s Five Forces Analysis
• Economical cost • Harsh Competition
• Low switching cost Buyer’s power • Competitive reprisal
(Strong) Competitive rivalry • Mini market
(Strong)

• High volume of Supplier’s power PFF

suppliers (Low) ANALYSIS
• Low switching Threat of new entrant
cost (Moderate)

Threat of substitute
(Strong)

• High barrier
• Substitute replacement accessibility • High capital investment
• Threat from Mini market
 Adoption of Strategy

01 Product ct
u
rod
P ce
Pl a
02 Place/Distribution

01
03 Promotion

rice ion
p ot
04 Price rom
P
 Product

0 Focus on customer
uct
1 preference Top brands
od
Pr
l ace
P
0 Focus Customer key daily
2 essential items (Selective)
01

Redesign layout and

0 rice ion
Influence customer to p ot
3
buy Star performer goods rom
P

0 Customer loyalty card

4 (E.g. Tesco, AEON card)
 Place/Distribution

0 Increase company profit by

uct
1 renting retail spaces od
Pr
(E.g. Brand Boutique shop, ce
Pl a
DIY, etc)

0 Re strategize outlet location 01

2 (E.g. Shut down loss making
location)
rice ion
p ot
0 Include more Food & beverage rom
P
3 Brands(E.g. Chatime, toast box ) to
drive traffic to outlet

0 Increase operation, distribution

4 efficiency and productivity inventory
 Promotion

0 Optimize floor plan usage by

uct
1 Organize more weekend od
Pr
event to driving traffic and ce
Pl a
increase floor rental income

0 Food & beverage Brands

(E.g. Chatime, toast box, etc.)
01
2

rice ion
0 p ot
More advertising via digital media
rom
3 (E.g. Facebook, instagram, etc) P

0 Online ordering process for

4 computer, consumer, communication
items
 Price

0 Low cost strategy to competitive

uct
1 with mini market od
Pr
l ace
P
0 Group buy coupon
2 (E.g. China Pinduoduo concept) 01

0 Create more house brand rice ion

p ot
3 (lower cost by direct purchase
rom
From manufacturer) P

0
4
Porter’s value chain (primary)
• Increase transportation & distribution
Inboard efficiency
01 Logistics • High quality product (E.g. Fresh food)

• Reduce operating cost

Operation
02 • Increase financial performance

03 Outbound • Transportation Efficiency

Logistics

04 Marketing & • Advertising (Digital Media)

Sales • More Weekend events
05
Service • Post sales service
• Product warranty
 Porter’s value chain (Secondary)
• Quality management Firm
• Advance information system Infrastructur
• Big database e 01

• Invest HR training program Human

• Increase Upselling skill Resource 02

Technology
• Online ordering (E.g. 3C) Developmen 03
• E-Wallet Payment t

• Effective procurement Procuremen 04

• High quality product t
 Growth Opportunity Accessment

Source: Monthly of Wholesale & Retail Trade April 2019, Department of Statistics, Malaysia
 Growth Opportunity Acessment

Source: Monthly of Wholesale & Retail Trade April 2019, Department of Statistics, Malaysia
Building Customer Life Time Value (CLTV)
Improve Up-Selling & Cross-Selling skill

Organize more weekend

Sales
events
Events Easy Ordering via online
Digital
website or mobile apps.

Customer loyalty card Member Post Sales Service

CLTV Post
Card
sales

Diversity Customer
Diversity of Goods & variety Customer Retention program
retention
of branded products
Customer
Relation

Customer Feedback .
 References
https://www.thestar.com.my/business/business-news/2019/06/08/2019-growth-forecast-for-retail-sales-increased-to-49

https://marketingmagazine.com.my/malaysia-retail-industry-report-2/