RETAIL EXPERIENCE

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.