NTUC Fairpice
Qns: Explain any two retail communication approaches by the retailer:
1)Pricing & Sales Promotion: as NTUC Fairprice is targeting mostly at the heartlanders and senior citizens, they provide a lot of promotions to communicate their mission of moderate the cost of living for their customers. For example they have the weekly promotion where there will be price discounts and other promotion like “Purchase with Purchase”. Their prices are also generally priced lower than most of their competitors in most of the product categories. With the low prices and frequent sales promotion, Fairprice have made their products very affordable and at the same time fulfilling their mission statement.
2)Public relation and Goodwill: as NTUC Fairprice aims to be everyone’s choice by delivering the image and actions that they care about all the customers. They have done several goodwill activities such as donation, charity and saving energy on Earth Day. All this activities are heavily publicised in the media. By these actions they manage to communicate to their customers that they care about them, the society and the future.
Monday, July 27, 2009
Week 11!
Customer Service - NTUC FAIRPRICE
Qns: Outline 5 pitfalls of inadequate or poor customer service given by the retailers.
1)Inconsistency in service rendered, the service at the checkout counter is inconsistent. Sometimes the cashier personnel will say “Thank You” after the transaction but on other occasion they did not say “Thank You”. Although it could be due to the high human traffic but some customer may feel that they are less valued by the company compared too the others.
2)Blockageof passage way, sometime the staff will do stock replenishment during the operating hours. So there will be a lot of loading and unloading movement in the sales floor. Often we realize that they would have trolley and boxes of stocks blocking the passage way in between the two shelves. This cause inconvenience to us as customers and also to our safety.
3)No extended service and initiative, in our trip this week we acted as a mystery shopper and test out the staff ability to understand our needs. We observed that although we as a customer are encountering some doubts, the staff nearby having known that will not take the initiative to help. What we tested out is that we acted as a customer buying ice cream and we are unsure of the ongoing promotion. The staff who is nearby do some stocking overheard us and looked at us but she did not help us to understand the promotion.
4)Store layout and setting, we find that the passage way along the checkout counter is too narrow to accommodate movement from the customers. As the customer checkout, they are carrying bags of stuffs making it very difficult for the other customers to go out. We did not see any efforts from the retailer to improve on this area.
5)Slow response, at the checkout counter whenever there are any problems regardless if it is major or minor the whole counter would not be able to function. For example, if a product can’t be scanned the staff at the counter will ask other staff to get any product for scanning and she will just wait for that to happen. Instead she should have cancelled that transaction first and allow other customers to do their transaction.
Qns: Outline 5 pitfalls of inadequate or poor customer service given by the retailers.
1)Inconsistency in service rendered, the service at the checkout counter is inconsistent. Sometimes the cashier personnel will say “Thank You” after the transaction but on other occasion they did not say “Thank You”. Although it could be due to the high human traffic but some customer may feel that they are less valued by the company compared too the others.
2)Blockageof passage way, sometime the staff will do stock replenishment during the operating hours. So there will be a lot of loading and unloading movement in the sales floor. Often we realize that they would have trolley and boxes of stocks blocking the passage way in between the two shelves. This cause inconvenience to us as customers and also to our safety.
3)No extended service and initiative, in our trip this week we acted as a mystery shopper and test out the staff ability to understand our needs. We observed that although we as a customer are encountering some doubts, the staff nearby having known that will not take the initiative to help. What we tested out is that we acted as a customer buying ice cream and we are unsure of the ongoing promotion. The staff who is nearby do some stocking overheard us and looked at us but she did not help us to understand the promotion.
4)Store layout and setting, we find that the passage way along the checkout counter is too narrow to accommodate movement from the customers. As the customer checkout, they are carrying bags of stuffs making it very difficult for the other customers to go out. We did not see any efforts from the retailer to improve on this area.
5)Slow response, at the checkout counter whenever there are any problems regardless if it is major or minor the whole counter would not be able to function. For example, if a product can’t be scanned the staff at the counter will ask other staff to get any product for scanning and she will just wait for that to happen. Instead she should have cancelled that transaction first and allow other customers to do their transaction.
Monday, July 13, 2009
Video Answers!
a)The retail sector is flexible, employees can pick the working hours they want to work. Looking for skills, trustworthy, good communication skills and capable of building relationship with customers.
b)Retail is the best job in the world because there are opportunities to work with different products, people and customers.
c)Past experiences, good communication skills, reliable and good time management.
d)The other retailer mentioned in the video is Tesco.
e)The most important skills are good communication skills, reliability, trustworthiness and ability to build relationship with customers.
The benefits for retail employees are that the progression opportunities are fast and there are high earning potential. And also the job can fit their lifestyle and vice versa.
f)The two retailing careers are Team Leader and Shop Floor Manager.
b)Retail is the best job in the world because there are opportunities to work with different products, people and customers.
c)Past experiences, good communication skills, reliable and good time management.
d)The other retailer mentioned in the video is Tesco.
e)The most important skills are good communication skills, reliability, trustworthiness and ability to build relationship with customers.
The benefits for retail employees are that the progression opportunities are fast and there are high earning potential. And also the job can fit their lifestyle and vice versa.
f)The two retailing careers are Team Leader and Shop Floor Manager.
Monday, July 6, 2009
Cold Storage Specialty Store Tanglin!
Entrance of Cold Storage Specialty Store at Tanglin!
Champagne and Wines sold at the store!
Up-close picture of a specially imported drink.
Health snacks that are sold at the store! Don't they look healthy?!
Drinks!!! You want a drink?
Customer Service!
Customer service.
We have done this week questions on the Cold storage specialty store located at Tanglin.
Standardized Customer Service Strategy
The store adopts a Standardized customer service strategy which allows the store to meet the basic customer service needs of the customers however it would not exceed the customer’s expectations. In return to the reduced service standard, by having a standardized service strategy would allow the store to reduce cost and ensure high consistency so as to ensure that all customers would receive similar treatments.
Lack of products knowledge
The first level of customer service was received when the cashiers greeted us the moment we walk in. However, the service stops after that until the moment when we decided to complete the transaction. With such a small store space and more specialty focus, we expect more and better customer service in terms of product knowledge. But the staffs there don’t seem to have sufficient product knowledge when we enquire them on the organic products.
Inconsistent service
What we observe during this trip is that their service level is inconsistent. For example, when we came in to the store the cashiers greeted us. But in another scenario, when we are paying at the cashier counter she did not greet the incoming customers. The inconsistent service level could be due to the fact that the staff is assigned tasks that are difficult to perform at the same time. So the manager should only assign tasks to the specific personnel who are capable to performing in their job scope. For example, in this case the cashiers should not be the one to greet the customers since they also have to complete the transaction for the customers.
We have done this week questions on the Cold storage specialty store located at Tanglin.
Standardized Customer Service Strategy
The store adopts a Standardized customer service strategy which allows the store to meet the basic customer service needs of the customers however it would not exceed the customer’s expectations. In return to the reduced service standard, by having a standardized service strategy would allow the store to reduce cost and ensure high consistency so as to ensure that all customers would receive similar treatments.
Lack of products knowledge
The first level of customer service was received when the cashiers greeted us the moment we walk in. However, the service stops after that until the moment when we decided to complete the transaction. With such a small store space and more specialty focus, we expect more and better customer service in terms of product knowledge. But the staffs there don’t seem to have sufficient product knowledge when we enquire them on the organic products.
Inconsistent service
What we observe during this trip is that their service level is inconsistent. For example, when we came in to the store the cashiers greeted us. But in another scenario, when we are paying at the cashier counter she did not greet the incoming customers. The inconsistent service level could be due to the fact that the staff is assigned tasks that are difficult to perform at the same time. So the manager should only assign tasks to the specific personnel who are capable to performing in their job scope. For example, in this case the cashiers should not be the one to greet the customers since they also have to complete the transaction for the customers.
Monday, June 29, 2009
Tutorial 8
Retail Store Management Tutorial 8
Question 2
1. Discrimination – it means a bias that denies someone of opportunities such as promotions, selection and transfer.
2. Extrinsic reward - it is common reward that is expected by the employees and it will not lead to any greater satisfactions.
3. Intrinsic reward – it is an outcome that gives personal satisfaction. Example is such as one that derived from a job well done.
4. Job description - it is a written description of the specific jobs. It also includes the duty, responsibilities, scope and the working conditions.
5. Job enrichment - it means to add the level of responsibility of the employees. Job enrichment can also lead to higher level of job satisfaction.
6. Compensation - it is a direct or indirect benefit that the employees will receive from their employers. Example, direct benefits such as salary, allowances, bonus and commissions. Indirect benefits such as insurance, pension plans and vacation.
7. Commission – it is form incentives to motivate the employees. Example employees will get a % of commission from their sales so it will motivate them to push harder and also more discipline.
8. Labour scheduling - it is a tool to control and manage the company labour cost.
9. Job application form - a form for the employees to state their general information such as their contact numbers, education levels & qualification, address.
10. Shoplifting - the process of taking a retailer’s property without permission, ownerships rights which is illegal in nature.
11. Orientation programmes – it is a form training programme that educates the employees on the company’s policy, regulations, working hours, job representation and fringe benefits.
Question 3
The changing demographics in Singapore workforce:
1. Higher educated people
2. Aging baby boomers
3. Diversity of foreign talents
These following demographics factors will affect the existing staffs as they now have to compete with a group of higher educated people and also the influx of foreign talents. So the existing staffs have to show more diversity in the skills so that they can still be valuable to the company in addition to the better educated and also the foreign talents which is cheaper in labour cost. The management role will likely to become more competitive. The baby boomers are also most likely to lose out to the younger people but they still have experience that is valuable to the company.
It will also affect the recruiting efforts as higher educated people will only accept higher paid jobs, higher job positions and also more relaxing job scopes. So the retailer now has to look at foreign talents who can accept the lower salary and also the more challenging working conditions. While recruiting foreign talents they also have to retrain them especially their language command.
Recruiting efforts for local staffs also have to be more flexible so as to accommodate their high salary, low working hours demand.
E-Learning
1) How the employment acts help people interested in a retailing career?
Overtime Work:
In a retail career, one have to be more flexible in term of the working hours as there are times where we have to work overtime. So the employment acts come into action with the law that for any overtime works, the overtime pay must be paid within 14 days of the salary period. This ensure that anyone in the retail career will be paid according and on time. Furthermore, there is also a maximum of 72 hours overtime granted for regular cases only so on one are to work overtime exceeding that amount of hours.
Damage or loss of goods:
In the event where of damage to or loss of goods entrusted to an employee for his custody, or for loss of money which an employee is accountable for. No deductions shall be made unless the employee has been given an opportunity to explain the cause of the damage or loss and his reasons why the deductions should not be made. Except with the permission of the Commissioner for Labour, the total amount of such deductions must not exceed 25% of the employee's one month's salary, and such deductions may only be made on a once-off basis.
This have an impact on any person interested in a retail career as they have to handle many goods in a daily basis so there are chances that they may damage the goods. So will this law implemented, it will ease off some financial responsibility on the workers if such incidents did happen.
Employees’ Resignation
The employment acts stated that employers cannot reject any employees request to resign from his or her works.
2) How the employment acts help the retailer?
Termination of contract without notice
The employment acts help to prevent the retailer from taken advantage of, the acts state that the retailer can terminate a employees if he is absent from work for more than 2 working days continuously without excuse, medical certificates or with informing the employer. So this act helps the retailer by instilling discipline and responsibility into the employees. In a retail store, there must also have manpower to operate so if anyone is absent without valid reasons it will greatly affect the daily operations and even the sales.
3) How the employment acts help the retail industry?
Transfer of Employees
Under the employment act law, the employers have the right to transfer their staffs to another employer. In this way it can help the retail industry in a way as the company may set up a subsidiary brand so the retailer can transfer the staffs over for a temporary basis to stabilize the new brand. In this way the retailer can utilize their resources.
The employment act law also state that the retailer can transfer their staffs to a associated company or even to a totally unrelated company. In this way the resources is actually shared and utilize across the retail industry and it can save the trouble of finding and training new staffs.
Question 2
1. Discrimination – it means a bias that denies someone of opportunities such as promotions, selection and transfer.
2. Extrinsic reward - it is common reward that is expected by the employees and it will not lead to any greater satisfactions.
3. Intrinsic reward – it is an outcome that gives personal satisfaction. Example is such as one that derived from a job well done.
4. Job description - it is a written description of the specific jobs. It also includes the duty, responsibilities, scope and the working conditions.
5. Job enrichment - it means to add the level of responsibility of the employees. Job enrichment can also lead to higher level of job satisfaction.
6. Compensation - it is a direct or indirect benefit that the employees will receive from their employers. Example, direct benefits such as salary, allowances, bonus and commissions. Indirect benefits such as insurance, pension plans and vacation.
7. Commission – it is form incentives to motivate the employees. Example employees will get a % of commission from their sales so it will motivate them to push harder and also more discipline.
8. Labour scheduling - it is a tool to control and manage the company labour cost.
9. Job application form - a form for the employees to state their general information such as their contact numbers, education levels & qualification, address.
10. Shoplifting - the process of taking a retailer’s property without permission, ownerships rights which is illegal in nature.
11. Orientation programmes – it is a form training programme that educates the employees on the company’s policy, regulations, working hours, job representation and fringe benefits.
Question 3
The changing demographics in Singapore workforce:
1. Higher educated people
2. Aging baby boomers
3. Diversity of foreign talents
These following demographics factors will affect the existing staffs as they now have to compete with a group of higher educated people and also the influx of foreign talents. So the existing staffs have to show more diversity in the skills so that they can still be valuable to the company in addition to the better educated and also the foreign talents which is cheaper in labour cost. The management role will likely to become more competitive. The baby boomers are also most likely to lose out to the younger people but they still have experience that is valuable to the company.
It will also affect the recruiting efforts as higher educated people will only accept higher paid jobs, higher job positions and also more relaxing job scopes. So the retailer now has to look at foreign talents who can accept the lower salary and also the more challenging working conditions. While recruiting foreign talents they also have to retrain them especially their language command.
Recruiting efforts for local staffs also have to be more flexible so as to accommodate their high salary, low working hours demand.
E-Learning
1) How the employment acts help people interested in a retailing career?
Overtime Work:
In a retail career, one have to be more flexible in term of the working hours as there are times where we have to work overtime. So the employment acts come into action with the law that for any overtime works, the overtime pay must be paid within 14 days of the salary period. This ensure that anyone in the retail career will be paid according and on time. Furthermore, there is also a maximum of 72 hours overtime granted for regular cases only so on one are to work overtime exceeding that amount of hours.
Damage or loss of goods:
In the event where of damage to or loss of goods entrusted to an employee for his custody, or for loss of money which an employee is accountable for. No deductions shall be made unless the employee has been given an opportunity to explain the cause of the damage or loss and his reasons why the deductions should not be made. Except with the permission of the Commissioner for Labour, the total amount of such deductions must not exceed 25% of the employee's one month's salary, and such deductions may only be made on a once-off basis.
This have an impact on any person interested in a retail career as they have to handle many goods in a daily basis so there are chances that they may damage the goods. So will this law implemented, it will ease off some financial responsibility on the workers if such incidents did happen.
Employees’ Resignation
The employment acts stated that employers cannot reject any employees request to resign from his or her works.
2) How the employment acts help the retailer?
Termination of contract without notice
The employment acts help to prevent the retailer from taken advantage of, the acts state that the retailer can terminate a employees if he is absent from work for more than 2 working days continuously without excuse, medical certificates or with informing the employer. So this act helps the retailer by instilling discipline and responsibility into the employees. In a retail store, there must also have manpower to operate so if anyone is absent without valid reasons it will greatly affect the daily operations and even the sales.
3) How the employment acts help the retail industry?
Transfer of Employees
Under the employment act law, the employers have the right to transfer their staffs to another employer. In this way it can help the retail industry in a way as the company may set up a subsidiary brand so the retailer can transfer the staffs over for a temporary basis to stabilize the new brand. In this way the retailer can utilize their resources.
The employment act law also state that the retailer can transfer their staffs to a associated company or even to a totally unrelated company. In this way the resources is actually shared and utilize across the retail industry and it can save the trouble of finding and training new staffs.
Market Place!
Market Place!
Store Layout
The store uses grid layout as it is easy to locate merchandise, allows more merchandise to be displayed and also is cost efficient. As Market Place has a lot of SKUs, using grid layout would enable them to display more products. And the merchandise is categorized into different segments like beverages like frozen products.
Design Methods
The design must be consistent with the retailer’s image and strategy, it will have a positive influence on customer satisfaction and purchase behavior, and it will also be cost efficient and flexible. Market Place store design is in sync with their image and strategy. It enables customers to shop happily and also make it a good purchase experience.
Display Methods
The display method of Market Place is categorized into different segments. And those product placed at the eye level would command a more premium price that the distributor would have to pay. They would also display their products in clean and tidy manner so as to make their brand look more professional. They also tried to arrange their products in a classy manner so as to differentiate and position themselves from other competitors.
Store Layout
The store uses grid layout as it is easy to locate merchandise, allows more merchandise to be displayed and also is cost efficient. As Market Place has a lot of SKUs, using grid layout would enable them to display more products. And the merchandise is categorized into different segments like beverages like frozen products.
Design Methods
The design must be consistent with the retailer’s image and strategy, it will have a positive influence on customer satisfaction and purchase behavior, and it will also be cost efficient and flexible. Market Place store design is in sync with their image and strategy. It enables customers to shop happily and also make it a good purchase experience.
Display Methods
The display method of Market Place is categorized into different segments. And those product placed at the eye level would command a more premium price that the distributor would have to pay. They would also display their products in clean and tidy manner so as to make their brand look more professional. They also tried to arrange their products in a classy manner so as to differentiate and position themselves from other competitors.
Sunday, June 7, 2009
Outline 3 HR methods
1. Recruiting the potential employee
NTUC Fairprice recruits ex-employees from GIANT by paying them a higher amount of salary. NTUC Fairprice recruits staff that is reliable and workers that has a sense of initiative. NTUC Fairprice will select the employees that is eligible for their management roles. They provide a grooming programme that allows new employees to sign up for a contract and will be guranteed with a management role in the future.
2. Training and Developing people
NTUC Fairprice provide trainings such as customer service, teaching the new staff on how to use the POS systems. Also, NTUC would explain to the new staff of the benefits that they will be entitled with. They would also update employees on their new policy on refunding or etc.
NTUC develop their employees to have a sense of responsibilty and initiative to help out in areas that they might not be in-charge of.
3. Compensating the employees
NTUC Fairprice would provide over time pay for their employees if they stay over for stock take purposes. During festive seasons, NTUC provide extra benefits for instant free shuttle bus or claming of transportation fees. NTUC will also provide employees with a yearly bonus and also fringe benefits for example, medical, dental, personal grooming,insurance , annual leave and even maternity leave.
By also providing free samples of new products for their employees, in return getting feedbacks from the employees of their newly launch products.
1. Recruiting the potential employee
NTUC Fairprice recruits ex-employees from GIANT by paying them a higher amount of salary. NTUC Fairprice recruits staff that is reliable and workers that has a sense of initiative. NTUC Fairprice will select the employees that is eligible for their management roles. They provide a grooming programme that allows new employees to sign up for a contract and will be guranteed with a management role in the future.
2. Training and Developing people
NTUC Fairprice provide trainings such as customer service, teaching the new staff on how to use the POS systems. Also, NTUC would explain to the new staff of the benefits that they will be entitled with. They would also update employees on their new policy on refunding or etc.
NTUC develop their employees to have a sense of responsibilty and initiative to help out in areas that they might not be in-charge of.
3. Compensating the employees
NTUC Fairprice would provide over time pay for their employees if they stay over for stock take purposes. During festive seasons, NTUC provide extra benefits for instant free shuttle bus or claming of transportation fees. NTUC will also provide employees with a yearly bonus and also fringe benefits for example, medical, dental, personal grooming,insurance , annual leave and even maternity leave.
By also providing free samples of new products for their employees, in return getting feedbacks from the employees of their newly launch products.
Monday, June 1, 2009
This week we have decided to look at Carrefour which is present in 29 countries throughout the world with more than 12,217 stores, hypermarkets, supermarkets and convenience stores. Carrefour is the ranked the second biggest retailer in the world behind Wal-Mart.
Carrefour invests in low prices and generally their private label’s products are relatively lower in price compared to the other more established brands. For example in the household and home electronics products category, Carrefour’ private label; Firstline and Bluesky are lower in prices.
Carrefour set the prices of those products that are available in the market generally lower than their competitors regardless of whether it is during daily operation of during promotional period. This is supported in their refund policy that if the customers saw any retailers seeling the same products and brands lower than Carrefour than they can get back the difference from Carrefour.
Carrefour also offer rebates to their customers during their events and promotional period. Recently they have a 10% for their house brand products when the customers charge their bills to the POSB everyday cards on very Tuesday. This will offer price cuts to the customers directly and also increase the demand for the Carrefour.
Carrefour invests in low prices and generally their private label’s products are relatively lower in price compared to the other more established brands. For example in the household and home electronics products category, Carrefour’ private label; Firstline and Bluesky are lower in prices.
Carrefour set the prices of those products that are available in the market generally lower than their competitors regardless of whether it is during daily operation of during promotional period. This is supported in their refund policy that if the customers saw any retailers seeling the same products and brands lower than Carrefour than they can get back the difference from Carrefour.
Carrefour also offer rebates to their customers during their events and promotional period. Recently they have a 10% for their house brand products when the customers charge their bills to the POSB everyday cards on very Tuesday. This will offer price cuts to the customers directly and also increase the demand for the Carrefour.
Monday, May 25, 2009
This week we have decided to visit Market Place Singapore which is a part store brand of Cold Storage. Market Place is a full serviced retailer dedicated to offer the widest range of quality, good value and international merchandise to satisfy the daily needs of its target customers in a relaxed and pleasant shopping environment.
Merchandise Management
It is a process which the retailer offers the right quantity of the right merchandise in the right place at the right time and meets the company’s financial goals.
Market Place tried to order the right quantity by analysing their sales data. They analyse the sales performance of the previous year and the past few months of the current year. They compared the sales figures for the same particular month from last year data. Further more, they also look at the performance from the current first few months. From there, they can adjust the quantity ordered so that it will match the expected demands and there will be no shortage or excessive wastage in resources.
Category Management
It is the process of managing a retail business with the objectives of maximizing the sales and profits of a category.
Market Place categorised their groceries items into categories such as washing detergents, canned meats and toothpastes etc. Category management works for the Market Place by improving the relationship between them and the suppliers through the exchange of information. With the category management in place, the focus will centred around the effect of the total turnover of the category and not just looking at the sales of the individual products. So the suppliers are largely encouraged to suggest new product introduction and also to implement promotional activities. The expected result is a beneficial effect on the turnover and profit of the total category and it will benefits the shopper of that particular category. It will also in turn benefits the retailer as they would expected more shoppers and sales when the suppliers took the efforts to implement new products or promotional efforts.
Merchandise Management
It is a process which the retailer offers the right quantity of the right merchandise in the right place at the right time and meets the company’s financial goals.
Market Place tried to order the right quantity by analysing their sales data. They analyse the sales performance of the previous year and the past few months of the current year. They compared the sales figures for the same particular month from last year data. Further more, they also look at the performance from the current first few months. From there, they can adjust the quantity ordered so that it will match the expected demands and there will be no shortage or excessive wastage in resources.
Category Management
It is the process of managing a retail business with the objectives of maximizing the sales and profits of a category.
Market Place categorised their groceries items into categories such as washing detergents, canned meats and toothpastes etc. Category management works for the Market Place by improving the relationship between them and the suppliers through the exchange of information. With the category management in place, the focus will centred around the effect of the total turnover of the category and not just looking at the sales of the individual products. So the suppliers are largely encouraged to suggest new product introduction and also to implement promotional activities. The expected result is a beneficial effect on the turnover and profit of the total category and it will benefits the shopper of that particular category. It will also in turn benefits the retailer as they would expected more shoppers and sales when the suppliers took the efforts to implement new products or promotional efforts.
Market Place!
Neat and tidy store front !
Award the best retail concept for the year 2008!
Detail of shelving description in glass
Tidy and Classy shelves display
International brand bakery store
Tidy fruits section. Classy concept
Monday, May 18, 2009
Retail Strategy
1) Target Market
NTUC FairPrice general target market is at home makers who take care of necessities at home.
FairPrice Finest target market is groups of people who are more health conscious. Finest is also slightly targeting more at working professionals rather then housewives etc.
2) Retail Format
NTUC FairPrice has 4 different types of retail formats. Their 4 formats include Liberty Market, FairPrice Xpress, FairPrice Xtra Hypermarket and FairPrice Finest. These retail formats are located strategically all over Singapore with the number of outlets in Singapore itself exceeding 80 stores.
The store that we visited most recently was FairPrice Finest store. Finest is slightly different from the other Fairprice outlets because they offer more organic products. They have a stand alone Organic departments in their store.
3) Bases for building sustainable competitive advantage
NTUC FairPrice has three ways in building sustainable competitive advantage.
Firstly, is through having weekly discounts on their items. For example, FairPrice is currently having their 36th Anniversary offers on products now, purchase with purchase promotion meaning buy one get one free and FairPrice is providing a 5% discount on house-brand products. The prices in Fairprice are considered lower than the other competitors’ supermarket. Together with the weekly discounts offered, they can offer their customers with better deals.
Secondly, FairPrice understands and realises the demands of their target market hence, they also realise that majority of their customers are heartlanders, housewives. So they set up their stores in the heartlands which are more accessible. Fairprice also have many stores located at the different corners of Singapore. They have much more stores as compared to their competitors. This gives them an advantage as it provides easy and convenient purchases to people who are lazy to travel a further distance.
Thirdly, to keep their customers coming back to them, FairPrice have a customer loyalty programme which is called NTUC Link Points card which accumulates Link Points for customers to exchange their points for vouchers or certain products that are up for grabs during the month.
1) Target Market
NTUC FairPrice general target market is at home makers who take care of necessities at home.
FairPrice Finest target market is groups of people who are more health conscious. Finest is also slightly targeting more at working professionals rather then housewives etc.
2) Retail Format
NTUC FairPrice has 4 different types of retail formats. Their 4 formats include Liberty Market, FairPrice Xpress, FairPrice Xtra Hypermarket and FairPrice Finest. These retail formats are located strategically all over Singapore with the number of outlets in Singapore itself exceeding 80 stores.
The store that we visited most recently was FairPrice Finest store. Finest is slightly different from the other Fairprice outlets because they offer more organic products. They have a stand alone Organic departments in their store.
3) Bases for building sustainable competitive advantage
NTUC FairPrice has three ways in building sustainable competitive advantage.
Firstly, is through having weekly discounts on their items. For example, FairPrice is currently having their 36th Anniversary offers on products now, purchase with purchase promotion meaning buy one get one free and FairPrice is providing a 5% discount on house-brand products. The prices in Fairprice are considered lower than the other competitors’ supermarket. Together with the weekly discounts offered, they can offer their customers with better deals.
Secondly, FairPrice understands and realises the demands of their target market hence, they also realise that majority of their customers are heartlanders, housewives. So they set up their stores in the heartlands which are more accessible. Fairprice also have many stores located at the different corners of Singapore. They have much more stores as compared to their competitors. This gives them an advantage as it provides easy and convenient purchases to people who are lazy to travel a further distance.
Thirdly, to keep their customers coming back to them, FairPrice have a customer loyalty programme which is called NTUC Link Points card which accumulates Link Points for customers to exchange their points for vouchers or certain products that are up for grabs during the month.
Thursday, May 14, 2009
Thomson FairPrice Finest!
Thomson Plaza FairPrice Finest!
Section Selling All Organic Food
1st Retail Strategy - 36th Anniversary Discounts!
2nd Retail Strategy - Buy 1 Get 1 Free!
3rd Retail Strategy - 5% Discount On Housebrand!
A Staff In FairPrice Finest Uniform
Monday, May 11, 2009
1. Variety and Assortment:
The variety and assortment of Fairprice is very huge as it is one of the leading supermarkets in Singapore and most Singaporean will go to Fairprice for their weekly or monthly purchase. So their variety is quite huge and they sell from household items to food items just to name a few.
Their products range from household products, consumable, fresh foods & groceries to clothing, body & facial care and first aid products. For each category they have several brands, size, flavors and variant available to choose from.
Two challenges faced by this retailer:
2. SHOPLIFTING
The retailer we are doing NTUC Fairprice. One main challenge faced by Fairprice is that the number of people shoplifting is very high. As the store is very big, a lot of manpower is needed to ensure that no one shoplifts. And the store has many products that are very small in size so it will be easy for customers to pickpocket the items. For examples products like sweets and chocolate are products that can be easily stolen since it is near the checkout counter where there are long queues.
3. Expiry date of products
Another challenge that Fairprice face, maybe is to how they are able to maintain the extensive products’ expiry date. As NTUC have many SKUs to handle and a lot of their products are food related so the maintaining of the expiry date is very important. Because if someone buy a product that is expired and the person may face some serious health implications like food poisoning, etc.
The variety and assortment of Fairprice is very huge as it is one of the leading supermarkets in Singapore and most Singaporean will go to Fairprice for their weekly or monthly purchase. So their variety is quite huge and they sell from household items to food items just to name a few.
Their products range from household products, consumable, fresh foods & groceries to clothing, body & facial care and first aid products. For each category they have several brands, size, flavors and variant available to choose from.
Two challenges faced by this retailer:
2. SHOPLIFTING
The retailer we are doing NTUC Fairprice. One main challenge faced by Fairprice is that the number of people shoplifting is very high. As the store is very big, a lot of manpower is needed to ensure that no one shoplifts. And the store has many products that are very small in size so it will be easy for customers to pickpocket the items. For examples products like sweets and chocolate are products that can be easily stolen since it is near the checkout counter where there are long queues.
3. Expiry date of products
Another challenge that Fairprice face, maybe is to how they are able to maintain the extensive products’ expiry date. As NTUC have many SKUs to handle and a lot of their products are food related so the maintaining of the expiry date is very important. Because if someone buy a product that is expired and the person may face some serious health implications like food poisoning, etc.
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