Page 1 of 59 Runcit Magazine Issue 14 Tinjauan Runcit

KEEPING CUSTOMERS LOYAL

Whether big or small, companies must go all out to give customers every reason to keep coming back. After all, to lose a customer means missing out on potential sales while having to re-invest much time and money to replace him or her. In this issue, we provide you insights on customer loyalty, focusing on Customer Relationship Management. We provide some familiar examples plus a special case study on Nestle Products Sdn Bhd.I would like to thank the company for making time to give us a look at the dizzying activities undertaken by its Consumer Services Department.

Let us remember that customer loyalty begins with meeting customers’ needs and expectations. As more customers are switching to wellness products, a company that is successfully catering to their needs is Cotra Enterprises Sdn Bhd. Runcit Malaysia is pleased to profile their fast-growing brands over this and subsequent issues, starting now with MARIGOLD Milk.

Customer loyalty must also be earned through a sense of social responsibility. In our special feature presentation on Southern Lion – Partnering to Win, we show how the company’s strong sense of responsibility towards consumers and the environment has spawned the innovation and excellence that has made it a market leader today.

There is so much more that you can get out of this 14th issue of Runcit Malaysia. Learn more about rice in our Kategori Runcit, how to manage your cash in Wang Runcit, achieve healthy weight in Gaya Hidup Runcit and so forth. With all these, I wish you productive reading.

WILLIAM KHOO Executive Director Infovantage Sdn Bhd [email protected]

Page 2 of 59 Runcit Malaysia Magazine Issue 14 Rencana Runcit

GETTING TO KNOW CRM (Customer Relationship Management)

Facts on Customer Loyalty

1. Loyalty is when customers continue buying more from you and ignore your competitor’s effort to win them over. 2. Retaining customers is just as important as acquiring new ones. 3. Re-acquiring customers who were once dissatisfied can be very valuable. 4. Good customer service and customer satisfaction are key. 5. Current, continuous and frank feedbacks from real customers are very important. 6. Dissatisfied customers will tell as many people as possible of their bad experience, even through the Internet.

Ever heard of the ‘80:20 rule’ of marketing? It refers to the fact that, for most companies, 20% of their customers drive 80% of their business. This just goes to show that every customer is important and companies have to make a conscious effort to keep him/her loyal. Every time a customer is lost, the company has to invest heavily to find a replacement. Yes, it always costs more to win new consumers than retain existing ones. It costs even more to bring back a lost customer.

According to marketing experts, loyalty only results when the company is able to command a share of the customer’s mind, wallet and mouth. This requires effort and it is best to have a planned approach.

THE MORE, THE BETTER

 Share of mind. If a customer thinks of you when he needs something, he is more likely to buy it from you.

 Share of wallet. When a customer spends more on you, he will have less to spend on your competitor.

 Share of mouth. Customers who like your company, products or services will tell their friends. Word-of-mouth is a powerful form of promotion.

Page 3 of 59 MANAGING CUSTOMER LOYALTY

Spurred by intense competition, many companies today practise Customer Relationship Management (CRM). It refers to a systematic way to connect with customers (both existing and new ones) and establish a long-lasting relationship for mutual benefit. In essence, it always involves knowing the customer, his needs and finding ways to provide useful solutions in a friendly, caring and approachable way.

PILLARS OF CRM

 Knowing the customer. It’s not just about knowing his name but also other details (eg marital status, family size, likely income bracket, etc). Some companies keep this information in a computer database that is updated regularly.

 Understanding his needs & aspirations. CRM can be used as a magnifying glass, helping companies to find out more about their customers’ needs and desires. Some companies even ask customers on their database to tell them how they can be better served.

 Personalised customer services. Armed with all the necessary information, companies can plan and conduct various activities to interact with, and nurture, their customers to reinforce share of mind, wallet and mouth.

COMMON CRM TOOLS CRM programmes tend to differ from company to company. The tools that are commonly used are as follows:

Customer Care Telephone Lines. Some companies invite their customers to call and ask for information, learn how to use a product, get after-sales support, lodge a complaint or even share their views about the company’s activities. The same goes for callers from the trade who might also use the telephone to place product orders. Each call is an opportunity to make the customer feel important and, hopefully, predispose him to keep favouring the company. Customer care telephone numbers starting with ‘1-800’ are toll-free; the company will pay the cost. Calls to regular lines or starting with ‘1-300’ will be charged on you.

Blasts and Websites. Presently, companies use websites as a place where customers can easily obtain information at any time. In some cases, only loyal customers are given access to certain parts of the website which contain ‘special’ material (eg health advice, recipes, games, etc). They have to register for this exclusive privilege. Beyond such simple functions, some companies have even moved towards using computers to enable customers to shop on-line. Their website are like actual stores where customers can browse, select their products and pay for them using their credit cards or other internet payment methods. The products are then shipped to the customer.

Page 4 of 59 Direct Mailers. Some companies take this approach to literally get into customers’ homes or offices. Items, like sale catalogues, are usually sent en masse to canvas an entire community. More expensive materials (eg brochures and magazines) are given to specific customers known to the companies. Some companies even send seasons greetings and birthday cards to make their customers happy.

Mobile Phone Messages. With Malaysia having one of the highest mobile phone penetration rates in the world, it is no surprise that companies have begun using SMS (short messaging service) to send announcements and promotional information to their customers.

Consumer Events. These can be anything from a public forum in a hotel to a roadshow tour in a community hall or shopping mall. Customers would attend such events if they perceive them as being useful, entertaining or both. For the organising companies, these are opportunities to show that they care for their customers, a vital ingredient in any relationship.

Page 5 of 59 LOYALTY BEYOND REASONS

How Malaysia’s largest food company keeps its consumers loyal.

Khoo Kar Khoon Communication Channels & Events Manager Nestle Products Sdn Bhd www.nestle.com.my

Nestle Malaysia is a company that is truly passionate about building consumer loyalty. According to Khoo Kar Khoon, Communication Channels & Events Manager, it’s all about earning consumers’ trust and admiration. He says: “We strive to develop strong and lasting relationships with our consumers. Such relationships take time and effort to build. Ad hoc ‘hit-and-run’ promotions may be exciting but they aren’t enough to cultivate loyalty.” Khoo says: “There are a few common ways to measure consumer loyalty. These include surveying consumers on their brand preferences, consumption habits and views about the company’s credibility and trustworthiness. However, loyalty is also expressed when a consumer seeks to communicate with you or pay you a visit (whether on location or via the internet).”

What the consumer experiences during each contact becomes very important. Khoo explains: “Take, for instance, our toll-free Line. Every call that comes through is taken seriously and all effort is made to respond to the consumer right away. If necessary, the matter will be directed to someone who is more able to resolve it. Nothing less than professional handling is acceptable because the consumer has made an effort to ask us a question, share a suggestion or make a complaint. The consumer is actually helping us improve!” Khoo makes another point about adding value to the consumer. Committed to ‘Nourishing Malaysia’, Nestle tries to provide good information, suitable advice and helpful tips always. We believe that, by helping to enrich our consumers’ lives, we will earn their loyalty.”

Page 6 of 59 GETTING CLOSER TO CONSUMERS

Take a peek into Nestle’s Consumer Services Department

Chia Wee Leng Consumer Services Manager Nestle Products Sdn Bhd www.nestle.com.my

Nestle believes in the importance of reaching out to their consumers and engaging them in activities that promote better product understanding and usage to improve their enjoyment of life. According to Chia Wee Leng, Consumer Services Manager, Nestle does this in 3 ways – in-house activities, going out to the community and by interacting with consumers in their homes.

Nestle Consumer Services Toll-Free Line: 1-800-88-3433 You can contact Nestle through this toll-free-line that is manned by dedicated staff who work closely with in-house experts to provide accurate & immediate responses. The call centre successfully manages approximately 20,000 cases per year.

Website: www.nestle.com.my Log on to Nestle’s website and discover a treasure trove of information, advice, tips and even recipes for a healthier lifestyle.

Out & About Nestle also makes an extra effort by going out into the community. The company conducts cooking demonstrations for people with health problems like diabetes and high cholesterol. Sessions have also been organised for community nurses to help them improve the care they provide.

Page 7 of 59 In-house Activities Nestle provides free in-house cooking demonstrations and talks for visiting groups (minimum 40 pax). The sessions are conducted by Nestle’s professional chefs and qualified nutritionists.

Brand Activities Every main brand of Nestle is active in connecting with consumers through various events, contests and campaigns. Examples include the ‘MAGGI Masak-Masak Studio’, ‘MILO Junior Allstars’, ‘NESCAFE Kickstart’ and many more.

Dear Nestle This is a programme which offers exclusive benefits to Nestle’s loyal consumers. Registration is FREE. Benefits include attractive mailers, special promotions and product samples, as well as access to members-only sections on Nestle’s website (www.nestle.com.my/dearnestle)

Page 8 of 59 HOW SOME OTHER COMPANIES GARNER CONSUMER LOYALTY

BRAND’S Junior Club. Besides promoting health & wellness for everyone in the family, Cerebos (Malaysia) Sdn Bhd also has the BRAND’S Junior Club (BJC) for children Toll-free: 1 800 88 6226 aged 4-12. Members are known as ‘buddies’ and can communicate with ‘Big www.brandsworld.com.my Bro’, play fun games and win rewards on the website. Tour a BOH Plantation BOH Plantations Sdn Bhd makes it possible for consumers to take a ‘tour’ of a

Tel: (03) 2164 6555 BOH plantation on their website! BOH also sponsors arts and culture events www.boh.com.my and supports preservation of wildlife efforts. Games Galore F&N Coca-Cola (M) Sdn Bhd website is full of trendy features, including computer games, downloads & football updates and even a restaurant & Toll-free:1 800 88 1988 eateries directory. The Coca-Cola section is for members only. www.fn.com.my GAB Cares Guinness Anchor Berhad, the No 1 beer company in Malaysia, believes in enhancing its consumers’ enjoyment of parties, football, leisure & entertainment and so on. The company also drives various campaigns that give loyal consumers the opportunity to contribute towards children’s education Tel: (03) 7861 4688 and other charitable causes. www.gab.com.my QUAKER Smart Heart Challenge PepsiCo (Malaysia) Sdn Bhd has been conducting this challenge since 2004 to educate consumers about the dangers of high cholesterol. Those with the problem can enrolling in a 30-day programme that involves eating 2 bowls Toll-free: 1 800 88 1399 daily and making lifestyle changes under the guidance of health & nutrition www.quakerchallenge.com.my experts. Vitality from Unilever Unilever’s website features four essential sections that you can improve on to get more out of life; cooking and eating, healthy living, beauty and style and

Toll-free: 1 800 88 1315 homecare. www.unilever.com.my Club for Mama Wyeth Mama Club is a programme to build good relationships with caring,

Toll-free: 1 800 88 5526 modern mothers. Those who sign up will get access to a large network of www.wyethnutrition.com.my mothers, receive useful childcare and nutritional guidance, exclusive rewards and benefits such as special invitations to events.

Page 9 of 59 ENSURING CUSTOMER SATISFACTION Beyond superior packaging

As everyone knows, Tetra Pak pioneered the aseptic packaging technology that is used extensively in the beverages & food industry today. As part of its efforts to strengthen its relationship with customers (ie the manufacturers), the company draws on its global expertise to share relevant information and insights on emerging trends. For example, Tetra Pak (Malaysia) Sdn Bhd sponsored a seminar on soya innovations and another on marketing of children’s products in 2007. Recently, it held a seminar on the Health & Wellness business. The company also sends regular updates on major category developments.

Tetra Pak has also collaborated with its customers in spearheading certain community service campaigns. One example is ‘World Milk Day 2007’ which featured the mass distribution of free UHT milk to train commuters at selected stations in Klang Valley. Other initiatives include the ‘Milk Loves You!’ campaign and the ‘Feed-A-Child’ pledge to provide 6 months of milk supply to 400 children in .

CONCLUSION

Consumer loyalty is not only important for big companies. Fact is, we all need our customers’ support and have to work hard to stay in touch with them. As a retailer, you can also achieve loyalty in your shoppers. Here are some ideas:

Get Personal with Your Customers  Get to know their names and their families. Run a fun promotion (eg a lucky draw) to obtain their names, telephone numbers and addresses.  Employ bar code technology in your shop to help you track their buying patterns; this will give you a better sense of their needs, when and how much they buy.  Reward loyal customers with special promotions, exclusively for them.  Make them feel special by sending seasons greeting cards once a year.

Be Helpful  Take every enquiry and complaint seriously; handle them professionally.  Offer help whenever you think it’s needed (eg by locating a brand or product they seek, carrying heavy goods to their cars or making home deliveries for busy homemakers or aged shoppers).  Consider taking consumers’ orders by telephone.  Learn how to use the computer so that you can receive orders by email.

Get Involved with The Community  Support and participate in your neighbourhood events, particularly if they involve a big part of the community (eg football matches, gotong royong, etc) to build goodwill.

Stephen Tan & Freda Abd Manan – Runcit Malaysia

Page 10 of 59 Runcit Malaysia Magazine Issue 14 Kategori Runcit

RICE

Understanding Malaysians’ Staple Food

Rice is a staple food to two-thirds of the whole world’s population. And that includes us Malaysians. We may cook it differently but most of us will definitely prefer rice to other grains. Perhaps, this is why we are a net importer of rice. While there are many types of rice available, is Malaysians’ favourite. Nevertheless, Malaysians are now beginning to turn to certain healthier types of rice, including unpolished and semi-polished varieties, which are known to be higher in fiber, vitamins and minerals. In the market, rice products are branded and pre-packed, usually in 1kg, 5kg and 10kg sizes.

MALAYSIA’S RICE MARKET

With over 33,000 outlets located throughout the length and breadth of the country, the traditional trade plays an important role in making Malaysia’s staple food available to consumers. Below are some indicators of the rice market.

Market Share of Different Rice Types Volume % Share of Trade- Category

INSIDE A GRAIN OF RICE

Page 11 of 59 DIFFERENT RICE PROCESSES

 Polished rice. Buffed with glucose or talc powder, also referred to white rice (with its bran removed) in general.  Unpolished rice. Husk and hull removed, bran still intact.  . Boiled in the husk, has good nutritional value.

TIPS ON STORING RICE

 Tightly sealed plastic or glass containers are best for storing rice.  Store rice in a cool, dark and dry area of your shop.  Keep your store rat-free.  If properly stored, rice will keep for a very long time.  The shelf life of is only half a year.  Cooked rice can last for 3-4 days in fridge and up to 2 months in freezer.

RICE TYPES Padiberas Nasional Berhad (BERNAS) is the custodian of Malaysian paddy and rice industry. Most rice brands in the market bear the ‘Pilihan Bernas - A Smart Choice, Guaranteed’ logo. Colours are used to differentiate the 4 major types of rice.

LOCAL WHITE RICE (PURPLE) Long grain white rice with some broken grains (5%, 10% or 15%) inside. The higher the percentage of broken grains, the cheaper the product. Suitable for most rice meals.

IMPORTED WHITE RICE (BLUE) Long grain white rice imported from neighbouring countries. Shares the same texture, taste and characteristics of Local White Rice.

Page 12 of 59 FRAGRANT RICE (PINK) Naturally aromatic rice. Usually long and cylindrical in shape with tender texture. Quite glutinous, moist and waxy. A favourite of the Chinese, especially suitable for chicken rice.

SPECIALTY RICE (ORANGE)  Rice. Long grain rice from and Pakistan. The whiter the colour, the better the quality. Expands to two times its original length after cooking. Suitable for flavoured rice dishes like nasi briyani, nasi tomato, , etc.  Ponni Herbal Rice. Organic rice that is low in carbohydrate and high in protein. Lower in calories compared to other rice.  . Small and oblong in shape. Usually soft and sticky when cooked. Used in traditional delicacies such as pulut, , bacang, etc.  Brown Rice. High in fiber, vitamins and minerals because of the bran (outer layer) that is still retained. Might be brownish, reddish or purplish in colour.

HEAVY & BULKY Big rice packs can be too heavy for your shoppers to carry, especially if their hands are full with other groceries. Help by taking the rice packs to their cars or if necessary, provide home delivery. Your shoppers will appreciate the gesture.

Runcit Malaysia thanks the following organization for the information in this article:

Freda Abd Manan – Runcit Malaysia

Page 13 of 59 BRAND OWNERS

SERBA WANGI SDN BHD Address : No 450, 1st Floor, Jalan Raja, 05000 Alor Setar, Kedah. Tel : (04) 735 5620 Main brands : JATI, ECOBROWN’s Website : www.malaysiarice.com

JASMINE FOOD CORPORATION SDN BHD Address : Lot No 8, Jalan 25/123, Section 25, 40000 Shah Alam, . Tel : (03) 5122 3188 Main brands : SUNWHITE, PEARL, VIETLONG Website : www.jasmine.com.my

HOCK JU EDAR SDN BHD Address : No 26, 28 & 30, Persiaran 118C, Desa Tun Razak, 56000 . Tel : (03) 973 3388 Main brands : FLORAL, THAI KING, SIAM SUPER Wensite : www.hockju.com

SYARIKAT FAIZA SDN BHD Address : PLO 442 Jalan Wawasan 16, Kawasan Perindustrian Sri Gading, 83300 Batu Pahat, Johor. Tel : (07) 455 6900 Main brands : MOGHUL, KASHMIR, TAJ MAHAL Website : www.faizarice.com

YHL HOLDING SDN BHD Address : No 39 - 45, Jalan P4/6, Bandar Teknologi Kajang, Batu 18, Jalan Semenyih, 43500 Semenyih, Kajang, Selangor. Tel : (03) 8724 3368/3792 Main brands : SAKURA Website : www.sakura.com.my

Page 14 of 59 Runcit Malaysia Magazine Issue 14 Jenama Runcit

What the TINGE ambassadors said: “TINGE is tasty and energizing. It’s good for everybody who wants a healthy lifestyle”.

STYLE & EXCITEMENT New look, bigger sales potential

TINGE is sending a wave of excitement through the market. With a stylish new packaging and the endorsement of two hot celebrities, Rynn Lim & Marsha, the brand certainly lives up to its theme ‘A Tinge Makes the Difference’.

The brand’s new image will appeal to consumers, especially young adults looking for healthy refreshment. TINGE is 100% mineral water, low in sugar, non- coloured and non-carbonated.

Stock up on TINGE and spread the excitement to your shoppers!

New Tinge comes in 2 flavours – Lemon & Fruit Fusion. Retailing at RM1.50 for a 500ml bottle.

Contact Us. Make the Difference Today. Tel: (05) 801 2663 Fax: (05) 801 2118 E-mail: [email protected] Web: www.spritzer.com.my

Page 15 of 59 Runcit Malaysia Magazine Issue 14 Jenama Runcit

MALAYSIAN’S FAVOURITE HEALTHY CHOICE

Health is Wealth

“Consumers are moving towards the healthy lifestyle. They want low-fat, low-sugar, nutritionally-enhanced products that can contribute to their well being.” – Michael Ong, Deputy General Manager, Cotra Enterprises Sdn Bhd.

For over 20 years, MARIGOLD has been delighting consumers of all ages with wholesome, premium quality dairy products. Today, MARIGOLD is the fastest-growing liquid milk brand in the health & wellness market. Consistent product excellence, affordable pricing, constant promotion and strong distribution continue to drive the brand’s growing popularity. Thus, assuring solid offtake and healthy profit margins for retailers, like you.

PASTEURISED MILK

Pasteurised for Freshness

MARIGOLD Pasteurised Milk is a healthy choice for those who prioritizes nutrition and taste. MARIGOLD Multigrain Milk contains 12 types of high quality grains. It is your healthier and tastier choice.

With a unique formulation of for better calcium absorption and stronger bones.

UHT MILK

Wholesome Fun for Kids

MARIGOLD UHT Milk is packed with the calcium and protein that growing children need. Available in Full Cream, Chocolate, Strawberry and Low Fat.

With a unique formulation of for better calcium absorption and stronger bones.

Page 16 of 59 HL LOW-FAT MILK

Malaysia’s No 1 Low-Fat Milk

MARIGOLD HL Low Fat Milk is HIGH in calcium and protein, LOW in fat and lactose. Available in Plain, Chocolate and Strawberry flavours. The ideal companion for balanced and vibrant living. Fortified with 9 Vitamins (A,B1, B3, B6, B12, C, D, E and Folic Acid).

ISO 9001 : 2000 Certified HACCP Food Safety System In Place

DRIVE UP YOUR SALES WITH A GREAT NEW TASTE

Thrill your shoppers with STRAWBERRY milk, the latest taste sensation from MARIGOLD HL Low Fat Milk. MARIGOLD HL Low Fat Milk with real strawberry juice is high in calcium and protein and low in fat. With strawberry being one of the top two most well-loved flavours in milk, this product is a sure sell. Let your shoppers indulge in the perfect balance of great taste and good health. .

Page 17 of 59 PRODUCT CARE GUIDE For Freshness & Quality

ALL TYPES OF MILK  Check the “Best Before Date”. Make sure products do not pass this date. Contact our sales personnel or the toll-free line.

PASTEURIZED MILK  Place milk into fridge quickly. Keep time out of the fridge to a minimum.  Always store below 4°C to prevent spoilage.  For outlets with MARIGOLD chillers, contact our personnel if you think it is not working.

UHT MILK  Store at room temperature. Unopened UHT products will keep for 9-12 months.

TOLL-FREE 1-800-88-5587

Page 18 of 59 Runcit Malaysia Magazine Issue 14 Kedai Runcit

SHOPPING SENSATIONS

Make shopping with you a joy through sound, taste & scent

Shopping should always be a pleasant experience, even in a small store. When shoppers feel good, they are more inclined to spend more. You can enhance the environment of your store by paying attention to what consumers would hear and taste.

Entertaining Sounds Good Taste Pleasant Smells

 Market with music.  Market through the taste buds.  Market with welcoming smells. Supermarkets, hypermarkets, Work with suppliers to hold food Make your shoppers feel departmental stores and and drink sampling sessions in happier as soon as they step restaurants do it. So you your shop. This will help into your pleasant-smelling should also please your promote new product sales. store. shoppers with music.  Be supportive. Allocate  Ensure good ventilation. This  Play the radio. Your shoppers sufficient space and treat the will drive out the stale air and can listen to the songs and suppliers’ promoters like your help keep the atmosphere dry commercials. Choose a station own staff. Make them feel instead of damp and mouldy. that is suitable to the majority comfortable approaching your of your shoppers. shoppers.  Separate spaces. Keep fragrant products (eg soap and  Play Music CDs. As your shop  Personal invitation. Encourage detergents) away from strong- is a commercial establishment, your shoppers (especially the smelling products (eg belacan you need a license from Public shy ones) to try the samples. and onions). Performance Malaysia (PPM) They will appreciate the or Music Authors’ Copyright attention.  Encourage sniffing. Shoppers Protection (MACP). Find out like sniffing products (eg bar more at www.ppm.org.my and soap or talcum powder) before www.macp.com.my they buy. Keep these products dust-free.  Play commercials. Ask your suppliers for product

Page 19 of 59 commercials that you can play. You might just get a discount in exchange for promoting their brands or products.

Note! If you smell Note! Always be something unpleasant mindful of the in the air, be sure to volume. Too loud hunt it down. It could is irritating and too just be some rotting soft is not vegetables but it’s effective. enough to put off your shoppers.

Note! Food and drink sampling must always be done hygienically to avoid food poisoning which will give your shop a bad name.

Freda Abd Manan- Runcit Malaysia

Page 20 of 59 Runcit Malaysia Magazine Issue 14 Mesra Runcit

HANDLING COMPLAINTS

Learn how to deal with it when it arises & avoid it before it happens.

It is early in the morning. You have only been operating for half an hour. Suddenly comes Mrs. Lily complaining about a spoilt can of condensed milk she bought from your shop the day before. She refuses to take a simple apology for it. How do you deal with this situation? Can you avoid such problem?

Dealing Avoiding

Complaining shoppers may be either patient or No retailers want to lose money or face. Unhappy aggressive. However, no matter how they act, you shoppers can definitely cause you both. Therefore, should always aim to get them smiling at the end of ensuring shoppers’ satisfaction should be made your the confrontation. Here is how you do it: number one priority. Both you & your employees must play parts in achieving this goal:  Stay calm, listen & let them explain. Do not create an ugly scene. 1) As an Employer  Do not tempt their anger or test their patience.  Give your employees proper training so that they Always smile & show a concerned face. will do their jobs properly.  Apologize first before you do anything else.  Train your employees to handle various kinds of  Investigate the problem; when was the product complaints. bought? How much of the product has been  You are the boss, so step up. Only let your used? What is the overall condition of the employees deal with complaints when you are product? Where was the product kept at the not around. shopper’s house? and so on.  Take responsibility for any problem that occurs.  If you are sure that it is your fault, quickly Don’t blame your employees in front of your suggest a solution. Depending on the shoppers. You might give yourself a bad name. circumstances, you can suggest a refund or a replacement. 2) As an Employee  Once the matter is resolved, escort them out of  Remember: You are important because you help your shop & apologize again. run the shop.  Remember them so that you can service them  Pay attention during training & when your better in their next visit. employer is instructing.  Develop a sense of ownership of the shop so

Page 21 of 59 Not your fault? Doubtful complaints? that you’ll take your job seriously.  Don’t argue; rationalize the situation. Tell them  Be independent. Try to resolve problems when the reasons for why you think it is not your fault, your employer is not in. politely.  Don’t be selfish. Even if you are a cashier,  Thank them for highlighting the complaints. inform your colleagues if you foresee a problem  Promise them that you will take them up with the that could be caused by them. suppliers/ manufacturers immediately.

Note! 1. Always insist on product return. 2. Damaged stock, including those with contents that are not fit for human consumption is usually returnable to suppliers or manufacturers for replacement or credit note. 3. Pay particular attention to all food items with expiry dates & handle them with care (provide the right & proper storage system) 4. Beware of recurring complaints:  The same products (consult with your suppliers/ manufacturers or check on your ways of handling them)  The same shoppers (they might be irresponsible manipulators). Remember, providing good Customer Service, including the effective handling of complaints, will ensure that the shoppers would keep coming back & patronize your shop.

Freda Abd Manan -- Runcit Malaysia

Page 22 of 59 Runcit Malaysia Magazine Issue 14 Uruswang Runcit

3 COSTLY MISTAKES TO AVOID

Starting this issue, Runcit Malaysia helps you manage money better.

Time and again, we are shocked by stories of successful businesses falling into financial ruin due to poor money management. Here are the stories of 3 retailers who could have fared better.

1 EASY BUSINESS?

JO thought sales would improve if he had more stocks, so he practically doubled and tripled his usual orders. He also started buying unknown brands simply because they were cheap. He even ordered electrical items, thinking he could ‘steal’ some shoppers away from the departmental store nearby. His wife was worried but Jo scolded her for being silly. But true enough, sales did not rise as much as Jo expected. He could not generate enough business to pay his creditors. Eventually, he could not even replenish products that had run out. His money was all tied up in unsold stock.

2 EASY MONEY?

After consulting family and friends, ADAM decided to expand to a mini-market. Everyone agreed there would be enough business. Adam proceeded to take a bank loan. But when he received the money, he decided to gamble some of it. Winning initially, he raised the stakes. He wanted to win big to pay off his loan faster. Then his luck ran out; he started losing badly. He had no choice but to put more money up to recover his losses. Eventually, he lost everything except the unpaid bank loan.

Page 23 of 59 3 EASY LIFE?

Sam’s friends were impressed when he renovated his house, bought a few cars and other expensive things. But they did not know he was spending his shop’s money and using his company to take loans to finance his personal expenses. He thought the shop’s money was his money to spend as he pleased. Sure, he paid the banks and his suppliers but only in the smallest installments possible. He ignored the growing interest rates imposed on the unpaid amounts. His debts eventually grew so large that, for the next few years, all his sales will proceed towards settling them.

Next Issue: Financial Priorities.

Stephen Tan – Runcit Malaysia

Page 24 of 59 Private & Confidential Survey

HELP US TO HELP YOU

All business people should continually improve their financial management skills. Towards this end, Runcit Malaysia and our partners hope to develop solutions for you. Please help us better understand your financial needs, attitudes, practices and problems by completing this survey. Kindly staple the sides (where indicated) or put into a sealed envelope before returning it no later than November 30, 2008.

1. PERSONAL DETAILS

1. What is your race?  Malay  Chinese  Indian  Indian (Muslim)  Other. Please specify:…………………………………

2. What is your age?  20-30 years old  31-40 years old  41-50 years old  51 years old and above

3. What is your education level?  Up to Standard 6  Up to Form 5  Form 6/Certificate  Diploma/Degree

2. BUSINESS EXPERIENCE

1. How many years have you been in business?  Less than 5 years  5-10 years  11-15 years  16-20 years  21 years or more

2. What is your business type?  Sole proprietor  Partnership  Sdn Bhd

3. Where is your shop located?  Village  Township/Suburb  Town  City

Page 25 of 59 4. What is your monthly sales turnover?  Below RM10,000  RM10,000-RM15,000  RM16,000-RM35,000  RM36,000-RM50,000  RM51,000 and above

3. FINANCIAL DETAILS (you may tick more than once for each question)

1. Do you experience these financial problems? Frequently Sometimes Rarely Paying suppliers    Settling company loan installments    Cash flow problem    Paying yourself adequately for your efforts    Paying for your family’s expenses   

2. When cash flow is low, how do you cover your shop’s expenses (eg pay for stocks, utilities, salaries, rental installments, etc) (You may choose more than 1 option)?  Draw from personal savings  Draw from company savings  Borrow from family/friends  Use bank overdraft  Take bank loan  Use credit cards  Borrow money elsewhere. Please specify ………………………………..

3. In what order do you make the following payments each month? Please mark from 1 (top priority) to 6 (last priority).

Pay To/For  Your suppliers  Yourself  Business loan & credit card installments  Shop rental & utilities  Save for shop and self/ or family  Personal & family expenses

4. Let’s say you have extra money, what would you do with it (You may choose more than 1 option)?

 Buy more stocks  Pay suppliers  Pay personal borrowings  Pay company borrowings  Spend on self & family  Invest  Gamble

Thank you for your time and effort. Your responses will be treated as strictly private & confidential.

Page 26 of 59 Page 27 of 59 TRUE RESPONSIBILITY

Annette Ling Corporate Planning & Business Development Director Southern Lion Sdn Bhd

Southern Lion’s success has always been founded on a deep sense of responsibility. Annette Ling, Corporate Planning & Business Development Director, says: “We strive to ensure a positive impact on our consumers, customers, society and the environment.” Below, she elaborates on the extent to which the company will go to uphold this philosophy.

Runcit Malaysia (RM): CONSUMERS’ HEALTH & WELLBEING Ling: Southern Lion is dedicated to bringing happier, cleaner and healthier living to all Malaysians through our fabric care, beauty care and oral care products. Towards this end, we make every effort to combine in-depth consumer understanding and state-of- the-art technology to offer high efficacy products that are innovative, high quality, safe and cost-efficient.

RM: FAIR TRADE Ling: We believe in building happy, long-term relationships with our trade partners so that we can enjoy a mutually profitable business. In order to maintain their loyalty, we uphold ethical practices and maintain a high degree of transparency and fair treatment in our dealings.

Page 28 of 59 RM: SOCIAL GOOD Ling: We see ourselves as a social entity that cares beyond the call of business. We have reached out to aid the suffering, such as during the Johor floods, the China earthquake and so on. On a more regular basis, we actively promote health, such as through our LION Dental Hygiene Centre (LDHC). Set up in 1998, with assistance from LION Dental Health Foundation of Japan, LDHC teaches school children about good oral care. Working closely with government dental authorities, we provide free dental check-ups and hold dental exhibitions with fun and interesting activities. So far, we have interacted with more than 200,000 children throughout the country.

RM: ENVIRONMENTAL PROTECTION Ling: Certified with ISO 14000 (for environmental protection), we strive to contribute towards reducing ‘greenhouse’ gas emissions, effectively using and recycling resources, considering the environment from a product-oriented perspective, appropriately handling chemical substances and fostering environmental awareness among our employees. This commitment has led to numerous eco-friendly innovations. One example is TOP SUPER FAST CLEAN Laundry Liquid whose special active ingredient biodegrades quickly. Another is the use of refill packs that use significantly less plastic packaging material and are not bulky like bottles.

Page 29 of 59 INNOVATIONS FOR MALAYSIAN CONDITIONS

Yasuaki Kimura Production & Technical Director Southern Lion Sdn Bhd

Southern Lion has all the hallmarks of a manufacturer of excellence - ISO 9001, ISO 14001, Good Manufacturing Practice and Halal certification. But Yasuaki Kimura, Production & Technical Director, is quick to point out that the company stands out from the rest. As a Malaysian-Japanese joint venture, it enables consumers to benefit from the finest technology, adapted to suit Malaysian conditions. Here, he describes how this partnership has spawned exciting innovations.

RM: GREAT SHOWER EXPERIENCE Kimura: Our SHOKUBUTSU body shower foam is made of 100% plant-based cleansing ingredient, almost exactly the same formulation as that available in Japan. Thus, the product ensures superior cleansing after a hot and humid day, leaving consumers with a totally fresh after-shower feeling.

RM: PREVENT TOOTH DECAY Kimura: Our KODOMO with Zylitol not only prevents tooth decay but also helps cure the early stages of dental caries. This same unique protection is one of the reasons for KODOMO’s leadership in the children’s toothpaste category, in Malaysia and in this region

RM: INDOOR DRYING CONCEPT Kimura: Consumers who dry their clothes indoors surely are familiar with the faulty smell that usually results. This smell comes from the presence of bacteria that are alive or have been killed during the wash but still remain inside the fabric fibres. Most other laundry detergent manufacturers could only mask the malodour. LION Corporation Japan has successfully developed an enzyme in TOP laundry detergent that can remove all bacteria.

Page 30 of 59 INVESTING IN THE FUTURE

Continuous investments in sophisticated technology have contributed greatly to Southern Lion’s success in its first 20 years. Spurred by overwhelming demand and anticipating greater growth in the next two decades, the company has already taken steps towards enhancing its technical capabilities and production capacity.

Expansion of GMP Factory Our GMP factory (certified by Ministry of Health) that manufactures SHOKUBUTSU body shower foam is in the process of expansion to cater to the high demand of our products.

World’s largest MES Factory MES (methyl ester sulphate) is the active ingredient for powder laundry detergent developed by LION Corporation Japan. Based on palm oil, the compound is not only highly biodegrable but has also been proven to show good washing performance. Work is already underway to build the factory in Johor Bahru.

Page 31 of 59 REPUTATION FOR EXCELLENCE

Kuan Mun Jen General Manager – Marketing Division Southern Lion Sdn Bhd

With a spirit forged by years of challenges and an uncompromising determination to excel, Southern Lion has grown stronger with each passing year. Today, the company enjoys a solid reputation for excellence among consumers and the trade. “It reflects the passion, boldness, creativity and integrity that characterize our actions and activities,” says Kuan Mun Jen, General Manager – Marketing Division. She recounts the company’s strides that have led it to the forefront of the fast-moving consumer goods (FMCG) industry in Malaysia.

EXCELLENCE IN SALES & MARKETING

In spite of youth and limited resources in its early years, Southern Lion has successfully made its mark and is now the company to watch in the fast-moving consumer goods market.

LION FAIR For Malaysia’s traditional trade, LION Fair is much- awaited event of each year. Throughout the country, dazzling block displays light up the stores in a concerted campaign to drive sales to exciting new heights, fuelled by tailor-made incentive schemes from Southern Lion. www.southernlion.com.my With so much to offer, Southern Lion launched its website in 2007. Accessible 24 hours a day, 7 days a week, it is updated regularly to ensure that visitors receive the latest information on the company’s dynamic activities.

Page 32 of 59 1-800-880-133 Also launched in 2007 was Southern Lion’s toll free customer service line. Operating during office hours every working day, it is manned by dedicated personnel who are trained to effectively handle calls from the public. Where necessary, trade enquiries will be directed to our distributor, Lam Soon Edible Oils Sdn Bhd, for follow-up action.

LEADING THE MARKET WITH INNOVATIONS

In the short span of 20 years, BIO ZIP, TOP, SHOKUBUTSU, FRESH & WHITE, KODOMO & ZACT have grown into household names, each with a history of ‘FIRSTS’ in Malaysia.

FABRIC CARE

1st laundry detergent in polybag with an enzyme formulation. This innovative start steadily propelled BIO ZIP into the No 1 position in the total laundry detergent market.

1st laundry detergent formulated to eliminate malodour resulting from indoor drying. TOP became the No 1 premium detergent brand in the modern trade within 3 years of launch.

1st successfully launched environment-friendly non-ionic liquid detergent. TOP SUPER FAST CLEAN rose to No 2 position in the liquid detergent sector within 2 years of launch.

1st to introduce refill pouch in the liquid detergent sector. A welcomed innovation for environment-conscious consumers.

Page 33 of 59 BEAUTY CARE

1st to popularize body shower foam without the ‘sticky’ after-shower feeling. Formulated from 100% plant-based ingredients, it is perfect for Malaysia’s hot & humid climate.

1st to popularize the refill pack in body shower foam. The big saving on the amount of plastic used in the packaging is translated into bigger value for money to consumers.

1st body shower foam to cater to the sport segment. Giving consumers unprecedented freshness for the active lifestyle.

ORAL CARE

1st children’s toothpaste in the market. KODOMO has been the No 1 children’s toothpaste brand in Malaysia since 1987.

1st toothpaste for smokers. Launched in 1987, the brand continues to offer unparalleled effectiveness and brand value in the specialised segment.

1st to introduce a fruity-minty taste in adult toothpaste. A most pleasant difference in the oral care experience!

Page 34 of 59 “We would never have grown without the staunch support of Lam Soon Edible Oils and the thousands of retailers who have journeyed with us through thick and thin over the last 20 years. Thanks to you, we have grown from strength to strength. In line with our 21st year theme, ‘Partnering to Win’, we invite you to continue with us in taking on the future. Together, let’s overcome the challenges of the ever- changing market landscape and seize the tremendous potential to continue succeeding together.”

- Ho Mun Woh, Managing Director, Southern

Page 35 of 59 Runcit Malaysia Magazine Issue 14 Fokus Runcit

SCENTS & SENSIBILITIES

Scents play a big role in defining the products that consumers choose.

Ahhh, don’t you just love a fresh after-shower smell or the scent of washed laundry? Such odours might even remind us of our childhoods and happy times with the people we love!

“Scents are powerful sensations as they can affect our mood, depending on the memories and feelings they excite” says Justin Wang, Category Marketing Manager of Shanghai Givaudan Ltd. “This fact makes scents an important driver that influences consumers to choose one perfume over another.”

“The same principle applies when it comes to choosing perfumed personal, household, laundry and air care products, like soaps, shower gels, shampoos and conditioners, detergents and fabric softeners, air fresheners and so on. Manufacturers of such products pay much attention on selecting just the right fragrance that will appeal to consumers.”

His colleague, Dr Linda Li, Technology Manager – Fabric Care, explains: “The sense of smell, called olfaction, involves the detection and perception of chemicals floating in the air. The olfactory system is linked to the part of the brain that controls our moods, long-term memory and behaviour.

“Humans have about 10 million olfactory neurons, cells that are sensitive to smells. These cells carry about 380 receptor proteins, which enable us to distinguish between more than 10,000 different odours. Of course, some odours are more easy to detect than others.”

Leading Sensory Innovation

Many scents occur in nature, like the smell of flowers, fruits and so on. But, amazingly, science and technology has enabled fragrance manufacturers, like Givaudan, to capture and reproduce those scents and even create new ones to be incorporated as ingredients into products.

Givaudan is known among product manufacturers as the world’s largest fragrance manufacturer with tremendous creativity. It’s capability is enhanced by an applied knowledge of all customer product categories and a cutting edge palette of ingredients (essential oils and molecules that go into the making of a perfume).

Page 36 of 59 Givaudan takes pride in leading sensory innovation. Most of its perfumers are trained for three years in the Givaudan Perfumery School in France. These specialists continually create what is known as ‘perfume accords,’ i.e. combinations of scents that work together to produce a whole new perfume. Out of more than 70 perfumers worldwide, Givaudan has nearly 20 perfumers, 40 evaluators, 25 marketers and market researchers in fragrance creative development centres, of which there are six in Asia.

With such expertise, the company has successfully introduced more than 20 new fragrance molecules in the last 8 years, way ahead of its competitors. It has also successfully developed delivery systems, like Bloomtech® and Mechacaps®, that are able to encapsulate the fragrance molecules in such a way as to make the scents bloom and last longer when used in various products.

GIVAUDAN: LEADING ASIA

 Givaudan is the No 1 fragrance supplier to manufacturers in most Asian countries  Quite a large number of fragrant consumer daily chemical products is perfumed by Givaudan  And in detergent category, nearly half of the fragrances are created by Givaudan

Givaudan also emphasises malodour counteraction. You could say that a part of making something smell nice is to eliminate any bad smell it might have. This can be done by covering the badly smelling molecules using the knowledge of perfumery or by eliminating such off-odours by special means. Towards this end, the company has developed agents like Neutraq® and Neutrazone® which are incorporated into consumer products to effectively fight malodour.

There is growing consumer interest in ‘naturals’, scents prepared from natural sources. In order to meet the requirements, Givaudan obtains such raw materials from ethical suppliers who adopt environment-friendly measures such as the replanting of sandalwood trees, a valuable source. The company also actively engages in research into biotechnology and enzymatic treatment to develop fragrances “naturally” while reducing strain on the environment. The ScentTrek® method has been much publicised for being a highly innovative way of ‘capturing’ natural scents of mother nature (i.e.,rain forest) which are then analysed and reconstituted in the perfumery lab later.

Page 37 of 59 Givaudan’s profound understanding of the scent-mood link is best demonstrated by being able to develop patents for ‘relaxing’ and ‘happy’ fragrances. This, and other successes, stem from the company’s in-depth consumer understanding, supported by unique testing methodologies and market expertise. The repository of all its endeavours is Fragranceland®, a living global product encyclopaedia of information, knowledge and insights covering over 20,000 products from four categories – fine fragrance, fabric care, household and personal care.

The demand from product manufacturers is great, as Dr Helge Stobbe, Regional Operations Director, Asia Pacific-Fragrances will tell you. “Our fragrances are produced using state-of-the-art technology. “Make to Order” is our production principle. We make it a point to ship our products with short leadtimes after receiving our customers’ orders,” he says.

Clearly, there is much more to fragrance manufacturing and Givaudan is one of few companies that could be said to be leading the world by the nose.

FREQUENTLY ASKED QUESTIONS

Q: Do people have their own individual smell? A: Yes. Each of us has our own unique odour which is influenced by our genes, skin type, hair colour, diet, medications, stress, the environment in which we live, and so on.

Q: Do women have a keener sense of smell than men? A: Yes, but much of it learned from being encouraged to use their noses more often than men through their interest in cooking, flowers, creating interior environments, and the early use of fragrance products.

Q: Can fragrance last indefinitely? A: Except where the molecules have been technologically encapsulated, fragrance generally will begin to fade after the product is opened.

Stephen Tan – Runcit Malaysia

Page 38 of 59 Runcit Malaysia Magazine Issue 14 Jenama Runcit

Malaysia’s Fastest Growing Soya Milk Brand

HOMESOYTM has been sweeping consumers of their feet with its sensational taste of homemade, street soya milk! HOMESOYTM Original was launched in mid-September

2007. This was followed by HOMESOYTM Brown Sugar in June 2008. Superior in quality and strongly supported by advertising and promotions, HOMESOYTM has become Malaysia’s fastest growing soya milk brand over the last 12 months.

AS NATURAL AS YOU CAN GET WORLD’S 1ST SOYA MILK WITH

BROWN SUGAR IN TETRA PAK All HOMESOYTM Soya Milk products are made with the highest quality Canadian soya beans brewed to perfection according to traditional recipe. Specific temperature  Hygienic. Brown sugar is semi-processed to control and special processing know-how capture the retain originality. original soya aroma and texture. UHT (Ultra High Temperature) treatment retains high protein and nutrient  Distinctive colour and flavour. Brown sugar levels in the product while ensuring long shelf-life without further enhances the taste and aroma of soya preservatives or refrigeration (until opened). milk.

 Consumer approval. Over 60% of respondents in a sensory test preferred having brown sugar (rather than white sugar) in soya milk.

 Less calories. Brown sugar has slightly less calories than white sugar.

HOMESOYTM Original and HOMESOYTM Brown Sugar is available in 1L and 250ml Tetra Pak.

Page 39 of 59 NEW!

BOTTLED for BETTER SALES Especially for Traditional Retailers

HOMESOYTM Brown Sugar now comes in a modern, wholesome-looking 300ml bottle to serve the convenience of consumers on the go.

 Sterilised using high temperature process  No preservatives  12 months shelf life (room temperature)  Best stocked in chiller for impulse consumer purchase

IN-STORE PROMOTIONAL SUPPORT

HOMESOYTM in 300 ml bottle comes with an array of in-store point-of-sale material.

BETTER MARGINS GUARANTEED!

HOMESOYTM Brown Sugar in 300 ml bottle also offers all traditional retailers better margins than all other soya milk brands. Contact us to place your order today.

ACE CANNING CORPORATION SDN BHD Lot 33-37, Lengkuk Keluli 1, Kawasan Perindustrian Bukit Raja Selatan, Seksyen 7, 40000 Shah Alam, Selangor Darul Ehsan Fax: (03) 3362 2929 Email: [email protected] Tel: (03) 3362 2828

Page 40 of 59 Runcit Malaysia Magazine Issue 14 Jenama Runcit

THE TOTAL CLEANING EXPERT

The best laundry cleaning solution

GOODMAID CHEMICALS CORP SDN BHD has been actively introducing new cleaning products and solutions to consumers since its inception in 1989. Recently, the company takes another step to continue its success by launching the all-new GOODMAID ACTIVE powder detergent. This innovative product is enhanced with a unique blend of SUPERBRIGHT FORMULATION for brighter and fresher clothes. It combines 5 key properties that you need for the best laundry cleaning solution:

 TRI-ENZYME formulation penetrates deep into the fibres of your clothes to remove embedded dirt, especially microscopic and organic stains (sweat, blood, mucus, etc).  SUPER OIL & GREASE REMOVER to remove grease and oil stains easily.  SUPER CLEANING POWER for effective removal of stubborn stains, even on collars and cuffs.  OPTICAL BRIGHTENER to brighten clothes and protect them from harmful UV ray while preserving the colours.  LASTING FRAGRANCE keeps clothes smelling clean and fresh always, even for indoor drying.

GOODMAID ensures that every new product goes through a stringent R&D process to meet the company’s proposition – GOOD QUALITY, BEST VALUE. So have this product available in your shop and just wait for good responses from your shoppers!

Page 41 of 59 GOODMAID ACTIV Q&A The first 30 participants who answer the following questions correctly will receive a GOODMAID LAUNDRY CARE GOODIE BAG.

1. GOODMAID powder detergent was launched in 1989. TRUE / FALSE. 2. GOODMAID powder detergent is named GOODMAID ACTIV. TRUE / FALSE 3. GOODMAID ACTIV has 5 key properties to enhance laundry cleaning. TRUE / FALSE

GOODMAID Chemical Corporation SDN BHD Suite C-12-12, Plaza Mont KIara, No 2, Jalan Kiara, Mont Kiara, 50480 Kuala Lumpur Tel: (03) 62939558; Fax: (03) 6203 9557; Website: www.goodmaid.net

Page 42 of 59 Runcit Malaysia Magazine Issue 14 Jenama Runcit

MALAYSIA’S HOTTEST INSTANT NOODLE BRAND

Loving to eat ‘round the clock, Malaysian consumers look to MAMEE Instant Noodles to satisfy their cravings and quell their hunger pangs. Why not? Our instant noodles come in a dazzling range of variants and well-loved flavours. Manufactured to HACCP Food Safety and ISO 9001 and 9002 standards, our product quality is so high you can practically taste it! No wonder MAMEE is Malaysia’s No 1 instant noodle brand. We’re the winning choice of consumers and retailers, alike.

“The key to our success is to always listen to our consumers and to get involved with them” - Datuk Pang Tee Chew, Managing Director, MAMEE DOUBLE-DECKER

MAMEE-Double Decker was incorporated in 1971. From its humble beginnings, the company today is a leading manufacturer of instant noodles, snacks, dairy products, dairy products and confectionery. Mamee-Double Decker is listed on the Main Board of the Kuala Lumpur Stock Exchange. In 2007, the company received the prestigious Malaysia’s Most Valuable Brand (MMVB) award.

RISING STAR

With a great fiery theme and catchy TV commercials, our MAMEE Sllrrrp! range is already blazing a trail of success in the market. Turn the page and let us fire up your sales (and your tastebuds)!

Page 43 of 59 Page 44 of 59 Page 45 of 59 FIRE UP YOUR BUSINESS

MAMEE Sllrrrp! KARI BERAPI and MI REBUS PEDAS GILER are firing up sales for thousands of retailers. Here is what some have to say.

“I have been selling MAMEE Sllrrrp! for a year now. My customers really love them. So, too, my family and I. KARI

BERAPI is our favorite” – Ang Siew Yik, Syarikat Kang Khow, Port Klang.

“MAMEE Sllrrrp! has been available in my shop for 5 years. The noodle and soup are very delicious. Thanks to the new TV advertisement, my shoppers just can’t get enough of MAMEE Sllrrrp!” – Amirudin B. Nuri, Pasaraya ANK, Meru.

Page 46 of 59 Runcit Malaysia Magazine Issue 14 Cakap-cakap Runcit

Through this section, you can share ideas and comments with other retailers. Contact Ms Chua Soah Sen at (03) 7957 1718 or talk to your friendly Field Supervisor (FS).

BLOCK DISPLAYS PROMOTE SALES

Law Kok Siong has been running his shop for five years with the help of both his father and brother. After seeing the efforts made by shop owners in supermarkets to put up block displays by themselves, Law began to realize the importance of merchandising that actually helps to increase sale. Law then started putting up block displays in his shop. At first, he was thrilled when given some incentives by the suppliers (eg Nestle, P&G and Unilever) but since then, good things keep coming in. He has also been winning awards (eg 1st prize and 2nd prize in contests by Nestle and Ridsect respectively) and receiving positive feedback from his shoppers, which in return, increasing his sales. Law usually keeps every block display in his shop for a month and he ensures that the best cooperation is always given to his suppliers.

Name : Law Kok Siong Name of Shop : Pasaraya Jimat Ceria Town : Sungai Lalang, Kedah Runcit Media FS: Rodi

Page 47 of 59 A REWARD FOR COMMITMENT

It pays to be committed to your business. Wong Sii Ching learnt this in the most pleasant way. His shop, Swehon Supermarket Sdn Bhd was awarded by the Ministry of Domestic Trade and Consumer Affairs as the Consumers’ Choice (Supermarket Category) for the year 2007. It was such a surprise to Wong since he never expected to receive such recognition. He is very proud of the achievement that has further motivated him and his employees to give only the best to his consumers.

Name : Wong Sii Ching Name of Shop : Swehon Supermarket Sdn Bhd Town : Sarikei, Sarawak Runcit Media FS: Rodi

Freda Abd Manan – Runcit Malaysia

Page 48 of 59 Runcit Malaysia Magazine Issue 14 Media Runcit

MEETING THE STANDARD

We come, we install, we maintain

As Malaysia’s media specialist for traditional trade, we in Runcit Media Sdn Bhd (RMSB) strive to provide the effective solutions to connect brands to consumers in outlets like yours.

In STRAM, we have two main media products – Retail Advertising Panels (RAP) and Counter Top (C-Top). Both serve different but interrelated purposes. RAP is designed to intercept consumers at the point of entry to your shop while C-Top (which is usually placed at the cashier counter) completes the consumer ‘call to buy’ the advertised product before they leave the shop.

Knowing the importance of RAP and C-Top to your business, we are very particular about the condition of these media products all the time. A rusty, dirty and neglected RAP will not serve its purpose to invite consumers into your shop. A cracked C-Top is not very useful too. Therefore, we make it a point to install and maintain them properly based on Standard Operating Procedures (SOP). The following illustrations give an example of our high standards.

Retail Advertising Panels (RAP) INSTALLATION

1 2

PREPARATION 1. Install nameplate on RAP structure. 2. Paste poster on adplate. 3 3. Install adplate on RAP structure.

Page 49 of 59 4 5 6

INSTALLATION 4. Measure spacing to install RAP. 5. Bring up, install and adjust position of RAP. 6. Paint the RAP structure and take photos of it.

ROUTINE RAP MAINTENANCE

1. RMSB Field Supervisor (FS) inspects RAP and identifies maintenance to be done. 2. FS updates maintenance requirements in database. 3. FS provides maintenance list to the technical team (TT). 4. TT informs retailer about maintenance required. 5. Upon consent, TT proceeds with maintenance. 6. TT takes photo after completion of maintenance.

Page 50 of 59 CHECKLIST OF COMMON MAINTENANCE TASKS

 Repairing RAP  Paint structure  Change poster  Change name plate  Removal of RAP  Relocation of RAP  Removal of blocking items

For further enquiries, please contact Ms. Chua Soah Sen Sales Operation Manager Runcit Media Sdn. Bhd, Suite 12.01, 12th Floor, Menara Merais, No 1 Jalan 19/3, 46300 Petaling Jaya, Selangor Darul Ehsan. Tel: (03) 7957 1718; Fax: (03) 7956 5109; E-mail: [email protected]

Freda Abd Manan – Runcit Malaysia

Page 51 of 59 Runcit Malaysia Magazine Issue 14 Media Runcit

Maximum Exposure

Providing ideal business solutions.

I am probably a familiar face to most of you retailers. My name is Thong Kang Hee. I am a Field Operations Executive for Runcit Media Sdn Bhd (RMSB). I have been with the company for more than seven years now.

RMSB is dedicated to serving the needs of traditional trade retailers by creating media products and services that help to improve their business. Towards this end, the company pioneered the creation of STRAM (Structured Ambient Media) in 1988. To this day STRAM continues to be a popular media product among retailers and manufacturers alike.

As an RMSB’s STRAM specialist, my job involves finding a suitable location to place the STRAM, applying for the license, ensuring it is always in good condition, and making sure that nothing blocks people from viewing the STRAM.

STRAM brings many benefits to your business. First of all, it does not cost you a cent. In fact, you stand to make some extra money from having a STRAM outside your shop, as we pay out a yearly rental fee to all our STRAM outlets.

Because STRAM is designed as an outdoors medium, it benefits retailers by giving their shop exposure, especially for shops in rural and suburban areas. People driving by will take notice that there is a shop in that location. Plus the advertisements will help in promoting product sales. Most retailers realise this, which is why when I approach them, they readily agree to be recruited. Sometimes, I encounter a few retailers who might be a little uncertain of how STRAM can help them. However, they usually end up asking me for the medium after checking with other retailers who have benefitted from it.

Jothi Jeyasingam – Runcit Malaysia

Page 52 of 59 Runcit Malaysia Magazine Issue 14 Pak Runcit

Question & Answer

Q. Bought a new product in a small quantity and it sold well. The second time around, I increased the quantity, but the product did not sell well. How do I make the product sell? – Pasar Mini Taman Muhibbah - Sg Siput Utara, Perak.

A. If a new product has proven to sell well initially and suddenly took a dip in the off-take, it is in your own interest to conduct a detailed investigation. This approach will also help you to determine what has actually gone wrong and to re- strategise, to stop the declining sales trend.

The following are some recommendations which serves as a check list. To list in a new product, the most important thing is to first establish whether you have the right clientele base. From your initial sell-out, of the trial order, you obviously have made the right decision to list in the new product. Assuming the new product is also available in the other neighbourhood stores, you may have to conduct some investigation on the pricing to see whether your selling price is competitive or not. This could be one of the reasons why your customers have stopped picking up your stocks and have in the meantime, gone somewhere else to purchase it.

If there is nothing wrong with your pricing, proceed to the next stage to check on the other related activities. 1) Find out whether your competitors are offering any other additional incentives, like promotions/discounts, to induce customers to purchase. 2) Once you have done your homework, you will be able to pin-point the actual problem and act accordingly.

Assuming everything is in order, you may have to re-look at your ordering and the inventory you are holding, as a lack of exposure or brand awareness could be the reason affecting sales.

Under normal circumstances, it usually takes a longer time for a new product to gain a wider consumer acceptance. A little more time is required to achieve this objective. Before you get a little bit too anxious, monitor closely the sales trend in the next couple of months and if the situation does not change for the better, you obviously have to act on it without any further delay.

You will then have to make a business decision whether to continue selling the product and keep a low inventory to cater for the handful of customers or to stop ordering altogether. As a rule of thumb, the implementation of promotions will usually help to accelerate the off-take of any new product.

Page 53 of 59 Please be reminded that providing good "Customer Service" is very important in a Retail Operation and you obviously do not want to lose out some of your customers to the neighbourhood stores, that is, if you do not carry a good range, including new products.

We hope you will be able to make the right decision.

All the best!

Q. Whenever suppliers introduce new items, they will force and cajole us to buy. However, when the expiry date has passed, they will say that we have to order again or that the company no longer sells the item. – Pasar Mini Bumi Indah - Karangan, Kedah.

A. This is a very common problem faced by most retailers and if not probably handled, can lead to losses, if the goods become unsaleable, due to expiry or damaged!

In making any future purchases, especially for new products, please make sure you buy from your regular suppliers, who call on your shop with a fixed call pattern, so that in the event of any problems with the products , you have somebody reliable to fall back on.

Generally, most FMCG products are returnable/exchangeable, in the event of expiry or damage, unless otherwise stated, at the point of the transaction.

Make sure you buy from the right source, either directly from the brand owners or their appointed distributors/ stockists/ key wholesalers. There are also a lot of reliable wholesalers and van operators you can buy from. If you get a little bit suspicious of the supplier or in your opinion, you think it is a fly-by night operator, it is best that you do not get involved, even if the promotions or prices offered are very attractive.

If you have been buying regularly from a particular source, make sure you request for credit terms which can also assist to lighten your burden on the cash flow, besides having some outstanding bills to hold on to, in the event of buying some new products which may end up expired or unsaleable in time to come.

Before you make the decision to list in any new product, please remember to go through the following check list, if you are not too sure of its acceptance and off-take. 1) Do you have a ready pool of customers for the new product? 2) If the answer is in the affirmative, you can then proceed to take in a small trial quantity, to first gauge the response and the off-take.

Page 54 of 59 3) Please also check the shelf life of the new product, to see whether you can clear the quantity ordered within the stipulated time, failing which, you may even have to reduce it further, unless there is an undertaking given by the supplier on the balance of any unsold quantity. 4) Make doubly sure that the new product is exchangeable/returnable, if it becomes damaged or in the event of any expiry. If the terms are not forthcoming, it is best that you refrain from placing even a small trial order. It pays to be careful, as any unsold stocks can affect the profitability of your business. 5) For any new product to be listed, make sure that it is not totally new in the market place and that it is already being sold in the other channels. If it is from a reputable supplier, you can rest assured that the risk involved will be reduced. 6) Know your market, the needs of your customers and exercise better business judgement which we are sure, will enable you to make a prudent decision, especially in the listing of any new product.

All the best!

Chow Nyuk Loong – Runcit Malaysia

Page 55 of 59 Runcit Malaysia Magazine Issue 14 Gaya Hidup

FIGHT DENGUE

From dusk till dawn

Dengue fever results from a viral infection caused by the Aedes aegypti and Aedes albopictus mosquitoes. Both are very common in Malaysia. According to a Ministry of Health report, 1,069 cases of dengue were reported in the country in one week (July 20-26, 2008) alone! Most infections occur at dawn and dusk when the mosquitoes come out to feed. Yes, when you & your family are watching TV or are fast asleep.

Everyone should maintain a clean environment where there is no stagnant water (eg in vases, flower pots, gutters, piles of leaves and rubbish) for the mosquitoes to lay their eggs. Besides this, we should also prevent the possibility of being bitten, even if it means by using an insecticide.

 Effective. Kills and repels mosquitoes in enclosed space Vaporise from Dusk till Dawn up to 1,200 cubic feet.  Constant. Releases same amount of active ingredients throughout time of use.  Easy to use. Just attach the bottle to the electrical unit, switch on at dusk and turn it off the next morning!  Power-saving. Consumes minimal electricity.  Economical: One refill can last for at least 60 nights with 8 hours of usage per night.  Fire-safe. Comes with pilot lamp indicator and temperature control regulator.

Page 56 of 59 Dengue or Chikungunya?

Chikungunya is spreading fast through bites of Aedes mosquitoes that are affected by the virus. The symptoms are similar to dengue; reddish skin with white spots, high fever and persistent muscle and joint pain (especially for the elderly). Johor, Perak, Negeri Sembilan and Malacca are the states most affected by this disease.

Dengue Signs & Symptoms

 High fever (40°C) for more than 3 days  Extreme fatigue  Reddish skin with white spots  Chills and headache  Red eyes, pain at the back of the eyes  Deep muscle and joint pains  Decreased urination  Loss of appetite, nausea & vomiting  Vomiting blood or presence of blood while brushing teeth

Source: Ministry of Health, Malaysia

Artikel usahasama

Freda Abd Manan- Runcit Malaysia

Page 57 of 59 Runcit Malaysia Magazine Issue 14 Gaya Hidup

ACHIEVING HEALTHY WEIGHT

Guide to a healthier, happier you

Tracy Lew Corporate Nutrition Advisor Marketing Services Unit Nestle Products Sdn Bhd

OVER 40% OF MALAYSIAN ADULTS ARE FAT A Ministry of Health survey of 33,055 Malaysian adults in 2006 found that:  29.1% were overweight  14% were obese

BEWARE! If you are one of the people with excessive body weight, you might be having:  Tiredness  Depression  Breathing problems  Skin problems  High blood pressure  Diabetes  Heart disease  Certain cancers

Page 58 of 59 SLIMMING TIPS

 Assess your body weight. Calculate your BMI to find out your weight status.  Balance your food intake. Eat regular small meals. Take more fruits and vegetables. Cut down on fats and oils. Take carbohydrates in moderation.  Exercise regularly. Try walking 30 minutes every day.  Do it healthily. Aim to lose between 0.5 to 1kg a week. Don’t diet drastically.

CALCULATE YOUR WEIGHT STATUS (BMI)

1. Weigh yourself in kilograms (kg). 2. Measure your height in meter (m). 3. Calculate using this formula:

BMI = weight (kg) height (m) X height (m)

Your Result  If your BMI is 25 and above, you are overweight.  If it is 30 and above, you are obese.  Consult with your doctor if you are overweight or obese. You might be suffering from diseases that you are not aware of.

Article in collaboration with

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