Profile
We are a group of fun loving retail students using the little technology to journal what we will be discovering about the wonders of retailing. Based on the retailer we had chosen, we will provide readers with our findings and how this retailer operates its business. Ding Li
Regina
Mei Mei
Shree
Jun Jie
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Monday, May 18, 2009, 9:58 AM
Retail Store Strategy
The Three Elements of Fairprice Retail Store Strategy1.)Target Market
Fairprice targets everyone but there are various categories we put the consumers into. They are; young people, housewives, working adults, old-aged, families and single people and majority are middle income people. They cater to everyone’s needs.
Fairprice is mostly for middle income group and neighborhood centered residence. It provides convenience to all living there. Some Fair price are operating 24 hours and that makes it even more convenient fro residence. The higher end consumers shop at places like Paragon supermarkets than Fairprice.
There are different purposes for different target groups. Other than food and groceries as we all know about, they sell household products such as rice cooker, oven, hair dyer and microwave. They also sell daily necessities such as shampoo, soap, diapers and toothpaste.
On an average, consumers spent 20 – 60 dollars per receipt. There are many items in Fairprice that gives a wider range of choices and that makes a consumer buy more.
The wide variety of choices in the supermaket also allows them to choose what they want at ease without the hassle to travel to different stores to get their items.
1.) Working Adults
For working adults some of the outlets are situated at the MRT stations, shopping centers and neighborhood, thus it would be convenient for working adults to drop back by after their work or in between their work to do their grocery.
The extended operations hours also enable blue collar workers to do their grocery too.
Singaporeans are also tied up by time constraints.
2.)Families and Housewives
For families, it is quite standardized for them to do monthly provision shopping for the family. They are very health conscious and they take that into deep consideration. They encourage eating healthily. Fairprice helps in being healthy as all food products have food labels. This makes it simple for consumers to pick their food products.
2.)Retail Formats
Supermarket
The mainstay of Fair Price business is retailing and its flagship is supermarkets
A supermarket is a large self service grocery store offering a wide variety of food, dairy products and household merchandise, organized into departments , usually on a cash- and -carry basis. It is larger in size and has wider selection than a traditional grocery store and its is smaller than a hypermarket or a superstore.
Hyper mart at Fair Price 'xtra ( Ang Mo Kio)
It's a vast self-service warehouse-cum-retail outlet that combines the features of a supermarket, department store , discount store and specialty store in one location.It was also Fair price first time adopting the hyper mart retail format.
3.)Bases for Building Sustainable Competitive Advantages
1.) Location : It is located island wide in Singapore. This had built Fair Price to sustain their competitive advantages.
- a.) MRT station- This provides convenience and accessibility to the neighborhood citizens and consumers. Consumers would not need to travel that far to purchase the product they need.
- Neighborhood Area- To provide an alternative for the people to do their grocery or replenish their basic necessities from their nearby Fair Price Outlet.
- b.)Retail Malls - Shoppers get to do their grocery while shopping at the mall and people working around could just drop by and do their grocery or get grab something from Fair Price.
2.)Customer Loyalty: By maintaining a good relationship with existing customer and especially their members. Providing them with incentives and privileges to retain them as well as making them feel important to the company.
Some programs are currently use by Fair Price to build Customer Loyalty
- Patronage Rebate - the rebate is paid annually based on the purchase made on the last financial year , up to a maximum of $6,000 per annual.
- Link Points- Consumers are able to earn link points and redeem attractive prizes from the points.
- Fairprice Baby Plus Club- A club for parents to learn and share their parenting experiences with the fellows members at Fairprice including parenting tips and updates on parenting issues.
- Just wine Club- An exclusively club for wine lovers ,updates on the latest wines that are available at Fair price.
- Traning staffs: Educating and training staffs with good product knowledge and good customers service skill. This would not in turn rise the service standard and make the customer happy but also building a better reputation for the company.
Private Labels: Fairprice offers a line of private label product ranging from bread, utensils at a relatively lower prices as compare to the global brand. They had also promise to ensure high product quality by having stringent quality checks in all their outlets.
5.)Good staff welfare
1) they offer incentive for good performance
2) they offer medical benefits such as hospitalisation and surgical benefits
3) they provide annual leave of up to 14 days
4) they provide allowance for employee children education fee
6.)SCM
1) they price their product slightly lower as they incur low cost of acquiring their product from their supplier as they are purchased in bulk
7.)IT system
1) POS system
- allow cashier to check the product price
- allow easy real time inventory control such as refunds, returns, exchange
- allow easy stock take and audit control
- allow easy monitoring and keep track of sales transaction
3) Provide doorstep delivery when customer purchase their products online
This week outlet's highlights:
Venue: Yishun MRT Station
Time: 7.00 pm. ( Peak period)
The outlet front layout
Very neat and vibrant
The Seafood Section with a fishmonger there
Promotions
Star Buy
Good visual merchandising
Good visual merchandising
Stock at wrong shelve
Cartons on the floor blocking shopper's way
Venue: Yishun MRT Station
Time: 7.00 pm. ( Peak period)
The outlet front layout
Very neat and vibrant
The Seafood Section with a fishmonger there
Promotions
Star Buy
Good visual merchandising
Good visual merchandising
Stock at wrong shelve
Cartons on the floor blocking shopper's way