You are on page 1of 14

Part A Retailer Analysis

1.0 Introduction of the Retailer


1.1 Location You Have Visited and the Types of the Retailer
We have chosen Simple Coffee for our retailer analysis. Simple Coffee is
located at Taman Bandar Baru, Kampar which is near to Tunku Abdul Rahman
College (TARC). Besides, Universiti Tunku Abdul Rahman (UTAR) is also in that
area. The address of Simple Coffee is Lot 126029, Jalan Hala Timah 3, Taman Bandar
Baru, 31900 Kampar, Perak Darul Ridzuan, Malaysia.
The type of retailer of Simple Coffee is convenience retailer. This is because
Simple Coffee is located in the residential area that is near to its consumers and it is
selling the products that the local customers want. Simple Coffee also offers limited
assortment and variety of products. It is main in offering coffee and some other
products like spaghetti, pastries, juice and so on.
1.2 Type of Retailer by Retail Mix and by Ownership
Retail mix is a marketing plan that responds to a set of varying factors such as
merchandise management, communication mix, store design and layout, customer
service, pricing and location. Simple Coffee is using retail mix strategies to attract
customers and influence them to purchase their products.
Coffee is the main product that Simple Coffee is selling now. Simple Coffee is
selling variety flavour of coffee. For an example, Americano, Latte, Cappuccino and
so on. Besides coffee, it is also selling chocolate drink, tea, yogurt smoothies, iced
blended, milk, cakes, pastries and juices. The communication mix used by Simple
Coffee is sales promotion in order to attract more customers. Simple Coffee has
released few types of promotions like buy certain flavour of coffee and by adding on
RM5, the customer will get a sandwich or pasta. This will make the customers think
that the promotional package is much more worth than buy separately and it is more
expensive. By using this type of promotion, Simple Coffee can increase their sales for
the coffee and the sandwich and pasta.

Besides that, the store design of Simple Coffee is a good and relax
environment for their customers to enjoy the coffee and food. The concept of the
design of the store is nature. The furniture used by Simple Coffee is made from wood
and the wall of the store is painted green colour. The idea of the design comes from
the owners of Simple Coffee. A good environment will make the customer feel good
and want to visit the store again. The customer service provided by Simple Coffee can
make the customers feel satisfied. They are providing internet for their customer to do
their work and although the customers are needed to order at the counter, but the
workers will send the coffee to the customer seats. The workers at Simple Coffee are
very friendly and the owners are also given training to the workers on how to serve
the customer better.
The location of Simple Coffee is at Taman Bandar Baru, Kampar which is
nearby the Tunku Abdul Rahman College (TARC). Most of the people that are staying
around there will go to Simple Coffee for tea time or do their homework. This is
because the location of the store is very convenient for them. The price set by Simple
Coffee for their products is medium price. This is because the owners want to make
the coffee is affordable by everyone and also to remain the standard of the coffee.
The ownership of Simple Coffee is independent, single store establishment. It
is owner-managed and Simple Coffee management has direct contact with the
customers and they can respond quickly to the customer needs. Simple Coffee makes
their offering to the customers based on customers need. It is very flexible and can
react faster to the market changes and customer needs.
1.3 Competitors of the Retailer
The major competitors of Simple Coffee are Bean Caf, Starbucks and A&C as
they are selling and concentrate on coffee type drinks and any changes in competitors
strategies will directly influence Simple Coffees business.
There are several indirect competitors of Simple Coffee, such as Bo Eight Tea,
E-Cup, and Old Town White Coffee, and Aliba Bar. As they are taking a piece of the
cake in the food and beverage industry in Kampar area.

Competitor defined as any entity that is a rival against another. However, the
existence of competitors leads to reduce the prices and improve the quality of goods
and services the company tries to gain a larger market share. Rivalries also drive the
company to become more efficient and effective in order to reduce costs and improve
productivity.
1.4 Types of Store
Simple Coffee is one of the coffee shop retailers in the Kampar new town area.
Most of the customers like to visit Simple Coffee because it has a comfortable
environment. Furthermore, the type of store of Simple Coffee is a physical store
because Simple Coffee is operating its business like a restaurant. It is more suitable to
open a physical store, because most of the customers come to the coffee shop are
expected to enjoy the coffee, dessert and the environment or atmosphere of the coffee
shop. Simple Coffee operates its business based on the size of customers and the
location. Coffee and dessert are the foods prepared for the customers who want to
enjoy in a relax place. Therefore, Simple coffee considers as a site store.
Besides that, the location of Simple Coffee is located in the Kampar new town
of Perak because Kampar new town has University Tunku Abdul Rahman (UTAR)
and Tunku Abdul Rahman College (TARC). Most of the Kampar new town area is full
students, therefore Simple Coffee target market is the students. Most of the students
like to go to those places that are very comfortable and easy for them to do discussion
or assignment. Simple Coffee has found that most of the students are the caffeine
junkies. Therefore Simple Coffee established and its offer variety of coffee, tea and
desserts.
2.0 Strategy of the retailer
A.) Merchandising
Simple Coffee is a shop that sells coffee and tea drinks. Besides selling coffee,
Simple Coffee is also sells pastries, spaghetti, yogurt smoothies and juice.
Furthermore, there are many types of flavour of coffee in their shops like Cappuccino,
Espresso, Mocha, Tiramisu, Caramel Macchiato, Latte and Green Tea Latte. Not only
coffee, Simple Coffee also has many flavours of tea like Honey Lemon, Lemon Tea,

Earl Grey and Lady Grey. Other than that, they also have pastries for their customer
who like cheese cake, yogurt with many type flavours for them to try. Other than that,
Simple Coffee shows their pricing in a unique ways which is they use a huge
blackboard and a rectangular shape to let the customer easy to look for it. In between,
they also provide few set menus for customer to choose and enjoy the meal at Simple
Coffee. The merchandise that display by Simple Coffee is according by the types,
example like a place is display the cake, a part of the corner is put the water and cups
to let the customer drink, and also at the counter they display the set menu and
promotion to let the customer discover it. Moreover, there are some magazine display
in front of the counter to let the customer read for it. To conclude, Simple Coffee
merchandises their product at an average price which everyone can afford to buy their
coffee and food especially for students. There are also many types and different set of
menu provided by Simple Coffee to give their customers enjoy.
B.) Fixtures
Fixture is normally used to efficiently hold and display merchandise and it
defines areas of the store and direct traffic flow. It also works together with the design
of the store. There are four types of fixture which are straight rack, rounder, four-way
fixture and gondolas. In Simple Coffee, the owners are using cake display cabinet and
wall shelf to display their merchandise. The cake display cabinet is used to display the
cakes, fruit juices and pastries offered by Simple Coffee. The wall shelf is used to
display the cups that used for beverages. Cake display cabinet and wall shelf are
considered as straight rack because straight rack consists of a long pipe balanced
between supports on the floor or attached to a wall. The owners are using this type of
fixture because it is the simplest rack to display the merchandise. The cake display
cabinet and wall shelf are consistent with the merchandise and the overall atmosphere
of the store. This is because Simple Coffee needs the cabinet to display the cakes, fruit
juices and pastries that will make the customer easier to have a look on the
merchandise. Besides, the cabinet and shelf are quite space saving. Since the space of
Simple Coffee is not big enough, they need to use the fixtures that are space saving in
order to avoid the place look too packed. The cake display cabinet and wall shelf are
very suitable to the design of the store.
C.) Feature Areas

Feature area is anything in the store that can attract customers while in Simple
coffee, its environment and display are considered as the feature areas as it is
attractive enough that customers are willing to stay there the whole day. There is a
wall displaying a DIY coffee tree by the owners with coffee bean. It is a creative and
smart way to induce and motivate customers to buy a cup of coffee to taste. Moreover,
the soft songs played in the store and the theme of using wood and green colour that
aims to give an ecology idea has strongly delivered another countryside feels to
customers that make them feel like they are at leisure time and it is unethical if
without drinking a cup of coffee. The design in the store such as the staircase right
after the entrance will make customers feel like they are escaping from hectic life, but
walking into this coffee shop surrounded with the aromatic coffee smell and soft
songs. DIY aspects are almost displayed everywhere in the store. For example,
owners use PVC pipes to form a book rack to place some English books. Owners also
show their efforts as they also DIY some motivational quotes on the walls to motivate
their customers. This could be feature area as customers are attracted to walk in the
store as there become an inspirating places for them especially during customers
frustrated period. There is also a sky juice refill area, whereas customers can refill it
or have it for free before served with their orders and this can warm customers heart
too. Its latte art also can melt customers heart.
D.) Layout

Simple Coffee Layout


E.) Signage and Graphics
Signage and graphics are providing product information, suggest items or
special purchases to customers, and to help customer locate specific products and
departments. Signage is used to identify the location of merchandise categories within
a store and the type of products offered. It should be large and high to enhance the
visible of customers. Graphic such as picture and photo, that can reinforce the stores
image.
Simple Coffee has applied the signage and graphic to provide information to
their customers, such as the Simple Coffees signboard. Based on the theme of Simple
Coffee are eco-world, eco-friendly and go green, therefore Simple Coffee used the
brown colour (branch colour). By the way, the background of the signboard has used
yellow colour in order to prominent the signboard that customers can see it clearly.
This is we called it using figures and ground. On the other hand, Simple Coffee has
installed the yellow colour bulbs into the signboard, because when until the night, the
signboard bright with yellow colour will become more outstanding. It will bring the
feeling to attract the customers want to visit the Simple Coffee. Besides that, the
words of the Simple Coffees signboard are 3D design.

In order to spread the information more widely, Simple Coffee did the Call-toaction signage. Call-to-action signage is used to identify the locations, product
information, and the official web page of its retail store. For example Simple Coffee
provided an own store QR code to customers easier scan to know about Simple
Coffee. Other than that, Simple Coffee also created a Facebook page to promote their
coffee, tea, and desserts. At the same time, every customer also can give feedback to
the FB page for improvement of Simple Coffee.
Most of the retail store will display any promotional signage to attract
customer come over to consume its products. The purpose of promotional signage is
to describe special offers and found within the store or displayed in windows to entice
the customer into the store. This promotional signage applied by Simple Coffee
displays a special offers board with a board holder stand at the front of the entry door.
The size of the board is quite big and it is the suitable place for customers easily saw
that promotional board.
Lastly, Simple Coffee also has applied the point-of-sale signage. Point-of-sale
signage is placed near the merchandise they refer to so that customers know its price
and other detailed information. Example Simple Coffee created a special category
board at the head of customers order counter. The board is display all the products
categories and prices of each product for customers know about the prices.
3.0 Recommendation

4.0 Conclusion

Part B Internet Shopping Analysis


1.0 H&M and Zalora
We have chosen mens clothes as the birthday gift, and the two retailers that
we choose are Zalora and H&M. We have chosen the two retailers is because the
quality of the clothes that offered by them are good and they have a variety of

fashionable mens clothes. Besides, the price offered by them are medium price. The
prices are not too high and most of the time Zalora will have a lot of the promotions
such as Fashion Fever Week that the clothes price is from just RM 19. Zalora and
H&M are giving their customers confidence that the clothes they offered are good
based on the way they have positioned themselves in the consumers mind that they
provided quality products. Zalora are offering the clothes that from a variety of brands
while H&M is only offering the clothes that made by the H&M manufacturer. Zalora
and H&M are providing a few payment methods for their customers like credit cards,
debit cards, bank transfer and online payment service for them to choose which one
will be more convenient. Zalora also have a security system that secure payment with
SSL-Encryption and data protection to make their customers feel secure when they
make their payment.
2.0 Comparison of Shopping Experience on Internet to Shopping in a Local
Store
For clothes that we choose, we need not to waste time queueing up and
pushing through the crowd for fitting room if we have Internet shopping. We can also
save time to compare prices shop by shop. Instead, we just need to surf different
website and get the best deal. If we shop online, we can shop for clothes whenever we
want since it is on for 24/7 and browse through stores that our countries do not have
as it is unlimited geographical. However, if we shop at the local store, we can
experience it like try on clothes to ensure it fits us. We are also secured that we can
feel and touch the item and ensure the clothes are in good condition. If we shop instore, we can immediately get the clothes we like right after payment and we can
enjoy the services by workers as well as some of the special discounts or offer if we
frequent visit the particular shop. We can seek opinion and help from workers such as
whether the clothes suit ourselves or what is popular in the current trend.
3.0 Advantages and Disadvantages of Internet shopping.
Online shopping had become more popular as the technology growth
nowadays. Many people are more preferring online shopping but still some of them
are resisting this trend. That is the reason why retail shop still can survive and many
people still insisting to head over to a retail store. Based on the survey that conducted,
there are several advantages and disadvantages about this online shopping.

People that preferred online shopping because they found that online shopping
can be browsed at 24/7. It is very convincing, and save a lot of time. Besides that,
consumer can also save fuel and energy to drive so far from their house to the retail
store. Online shopping has also offered the detail information of the products, which
save much effort for consumer in comparison in terms of price, function, appearance,
size, colour. In online shopping, what you need is just an online banking account, a
device that can access to internet and data. In addition, products sold online usually
are lower price than those products sell in retail shop although they are the same.
Pricing at online shopping usually lower because they can minimize their expenses
like salaries and rentals. Moreover, the online shop can exclude from the government
and sales taxes, which further decreases their cost, thus they can sell the same
products in the retail store for a lower price.
For the group of people that still insisted on attending a shopping mall or a
retail store because they think that they unable to touch and feel the products is an
unsecured. They cannot try on it or perceive it before they pay for it. They feel risky
that they may receive some defect goods or size of the item is not suitable for them as
example a wrong size shirt. If they absent physically to the store, many problems
could arise if they are unsatisfied with the goods they received. Following by, online
shopping makes them feel unrealistic because what an online shopper did is just
facing to a device, click and pay. There is no communication with other people, yet if
shopping in retail shop, they might get some professional suggestion from the
salesperson; the salesperson may suggest the custumer a better choice of product that
is most suitable for them. Furthermore, online shopping may raise to buy many
unnecessary products because they are paying through online, this unrealistic
shopping online make them that not realizing that their money was actually paying
out.
4.0 Compare the Retail Offerings Shirts
H&M

Zalora

Shirt Easy Iron

Basic Slim Fit Long Sleeve Shirt

RM 49.90

RM 60.00 (Now RM 29.00)

Classic long-sleeved shirt with a turn- Black Basic Slim Fit Long Sleeve Shirt
down collar and an easy-iron finish that is from ZALORA features button down
tailored to fit the figure with shaping fastening.
darts at the back. Slim fit.

Cotton blend

65% polyester, 35% cotton. Machine

Regular collar

Long sleeves

Buttoned cuffs

Curved hem

Slim fit

wash at 40

95% Cotton 5% Spandex

4.1 Product Quality


H&M
Zalora
The quality of this shirt is quite
Zalora Basics long sleeve shirt
good due to the condition of this

composition is included 95% of

shirt is made by 65% polyester

cotton and 5% of spandex.

and 35% of cotton cloth.

This Zalora shirt only suitable for

For this shirt is suitable to iron in

warm iron and do not bleach and

the 45C, therefore it is an easy

tumble dry due to the cotton cloth

iron slide cloth.

is easily fade.

H&M product is a premium

quality.

This shirt cannot be dry clean and


it must be wash inside out with
similar colors.

4.2 Price
H&M
Zalora
Price of the shirt is RM49.90 for
Price of the shirt is RM60.00 but
all the color that has.

Least promotional.

It have 9 color for it :-

now the offer price is RM29.00


for it.

and always have higher discount


percentage.

-White
-Black

Promotional are more provided

It have 6 color for it :-

-Dark blue
-Light blue
-Grey
-Dark blue/Checked
-Dark blue/Spotted
-Dark blue/Striped
-Blue/Small checked

4.3 Suggestive Selling

-Sea foam
-White
-Navy
-Black
-Pink
-Teal

H&M
Zalora
H&M is a physical store and
Some of the customer purchasing

online store. Therefore we suggest

product is in the purpose of giving

H&M can offer either customer

the birthday gift. Therefore we

can claim it order products from

suggest Zalora can offer a service

the nearest store or delivery

that is packaging the items order

method

by customers and provide any

Doing more promotional discount

kind of the special packaging

in order to attract new customers

design to them.

and stay customer loyal.

We suggest Zalora can selling the


cushion, blankets, storage and any
decoration items to customers.

4.4 Website Features


H&M
Simple and easy (easy navigation)

provided

clear

contact information to their site in

android which is H&M iPhone

order customers can contact them.

Zalora have a clear navigation to

their customer can visit their retail

their site. Each of the information

shop in anywhere and anytime.

are arrange in sequence and it is

Customer can follow H&M at the

easy to understand for customers.

social media navigation example


Facebook,

Twitter,

Instagram,

Zalora have a mobile ready


version like application in the

YouTube, Google+ and Pinterest.

smartphone, easier to customer

H&M

visits everywhere.

site

included

crucial

business information

have

Mobile navigation for iPhone and


App and H&M Android App for

Zalora
Zalora

H&M graphic more clear and


interesting

to

products.

4.5 Design of Website

look

for

their

Text and word of site are big


enough to read.

H&M
Zalora
StudioLine Web integrates all
Since Zalora.com is positioning a

functions

for

designing,

high class quality product to the

publishing

and

maintaining

consumer mind, so in order to

professional web sites into a

meet

single user interface. Layout of

concept, therefore Zalora used the

the site is position in the easier

black and white color to be the

navigate.

main design of website.

Recently of promotion will show

the

Zalora

high

class

Distribute few of the bars design

in the home pages to publishing

to ease the way of customer

the discount offer to customer.

visiting.

4.6 Ease of Website Use


H&M
Zalora
H&M website does offer a combo
The words of Zalorasite are
box to jump from page to page

bigger in order to ease the

and easier to choose the color and

customers to visit its website.

size of the products. The combo


box

is

save time due to the multi-finding

customer to find the most similar

category distribution. There have

products.

more accurate of distribution of


many

each product. Example it separate

navigation bars and buttons so

the categories searching in the

that the site has a strong structure

brand, price, color, and any other

making its more users friendly.

category.

H&M

website

to

Searching products easier and

easier

H&M

advantage

site

uses

have

multimedia

features such as text and images


to help the site more engaging and
interactive.

4.7 Closing of the Sale

Zalora offer application in the


smart phone.

H&M
Payment method:

Zalora
Payment method:

MasterCard or visa symbol

Credit/Debit card

Payment slip in parcel

PayPal

Credit card/Debit card

CDM/ATM

5.0 Which One Website Would You Use? Why?


The website that I would like to prefer for online shopping is Zalora. Reasons
is the web page of design of Zalora is more attractiveness and also easy for the
customer. It is so handy to have the multiple brands and a huge assortment under one
web page. Besides that, Zalora they have shipping service in Malaysia and the
shipping fees will be free when fulfil the conditional that is if purchase more than
RM75 will get the free shipping fees. However H&M is also a best online shopping
web page but, they do not have shipping services in Malaysia. Nevertheless, Zaloras
collection is very versatile. They can carry a number of different brands item, hence
there is different style. Other than that, most of the time Zalora will have promotional
when purchase through online and the price is much cheaper. As a conclusion, Zalora
online shopping can provide more customer services for their customer in Malaysia
and the web page is easy to handle for most of the customer in between the price is
much lower compare to H&M.