RUNCIT MALAYSIA MAGAZINE ISSUE 18runcit.com.my/backup/pdf/rmm18e.pdf · RENCANA RUNCIT RUNCIT MALAYSIA MAGAZINE ISSUE 18 PAGE 9 OF 43 Clean, well-lit and well-arranged layouts. Consumers

RUNCIT MALAYSIA MAGAZINE ISSUE 18

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BE PROACTIVE!

We have discussed the issue of the economic downturn in the last two issues. Although most of us are affected, signs of recovery are clearly showing now. Therefore, we thought it is time to share an interesting topic to give you some ideas on how to evolve and modernise for better business.

This round, our Rencana Runcit discusses the “Small Format Stores” phenomenon, an emerging trend that is taking the retail world by storm. Find out what it is, the factors that had contributed to its success and how you can adopt and adapt the concept to your business. We hope you like the fun and colourful way in which we chose to present the article too.

We are also happy to present two interesting Kategori Runcit on Biscuits and Toothbrush. Not only do the articles provide you more information and tips to drive sales of the two categories, it also introduces the main players of each category: Munchy’s and Jordan. Learn more about the companies and their great products that are popular with consumers.

In addition to that, we are pleased to feature a few companies with their own interesting ways to give back to consumers for supporting them. We have Southern Lion Sdn Bhd with its Lion Dental Health Programme and SHOKUBUTSU’s 11th Birthday Celebration, Spritzer Bhd’s 20th Anniversary and its “No 1 Photo Moment” Contest as well as Gentle Supreme Sdn Bhd’s MI SEDAAP and DAIA contests. Read on to find out how you can work with them to gain more consumers’ support for their brands as well as your shop.

Do not forget to check out the Urusniaga, Wang, Operasi and Kedai Runcit columns too as they contain a lot of useful tip that you will surely appreciate. For those of you who are concern about your cholesterol level, our Gaya Hidup article should be able to give you some helpful pointers. We hope you will benefit from the articles we provide this issue. On behalf of the whole RUNCIT MALAYSIA team, I wish all our Muslim readers Selamat Hari Raya Aidilfitri and Maaf Zahir Batin. Hope this delightful month will bring in more success to your business!

William KhooExecutive Director

Infovantage Sdn [email protected]

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mailto:[email protected]


RUNCIT MALAYSIA MAGAZINE ISSUE 18TINJAUAN RUNCIT

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RUNCIT MALAYSIA MAGAZINE ISSUE 18RENCANA RUNCIT

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The new breed of stores that are creating big impact in the retail world.

SMALL FORMAT STORES


“How do we compete with hypermarkets and supermarkets?

Their prices are so cheap.” – Aminah, Kedai Runcit Wawasan,

Taiping, Perak.

“My shop is just a few kilometers away from a hypermarket. My shoppers have been visiting it

more often now.” – Raju, Berjaya Mini Market,

Subang Jaya, Selangor.

“The modern trade is so advanced. I don’t have the means to keep up with it.” – Ah Lek, Pasar Mini Win, Kuantan, Pahang.

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The above are examples of the many similar questions we received from you. Clearly, the rapid growth of the modern trade in the country worries you. In fact, it does pose a real threat to your business should you not take any counteractive measure. And modern retailers are not planning to stop expanding just yet.

With the changing lifestyle and consumer behaviours, they are constantly looking for other ways to tap on consumers’ every need and want. However, if you think modern trade is all about “big box” retailing, think again. Today, they are growing small, forming a new breed of modern trade channel known as the Small Format Stores (SFS).

Lying in the middle ground between huge hypermarkets, supermarkets and tiny provision shops, SFS are usually franchises of bigger retailers like Tesco and Carrefour. They are run by modern-minded operators who are familiar with the needs of their neighbourhood. Well-managed, convenient and efficient, these stores provide customised services to cater to the changing needs of consumers, who are becoming more affluent, more discerning in where they shop and place importance on the overall shopping experience.

In recent years, SFS has vastly grown in popularity worldwide. In Latin America, for example, the convenience store retailer Oxxo has established around 4,000 SFS in Mexico alone. The same goes in the United States, where big names like Wal-Mart and Publix are experimenting with the concept. The trend is also catching on in Malaysia with the birth of smaller versions of the bigger retailers like Carrefour Express by Carrefour and Pasaraya Maxvalu of Aeon Jusco. Let us now find out more about SFS, the factors that have led to its success and how you can adapt it for the success of your business.


“I don’t have much time for shopping.”

Fatimah, 43, is a stay-at-home mother of four school-going children. Wanting to help her husband provides for the family, she takes up a part time ‘work from home’ job. Juggling between house chores, taking care of her children and the new job, she ends up with very limited time for shopping. She wants a shop where she can buy what she needs as quickly as possible.

“I don’t want to travel just to shop.”

Ali, 28, is a mechanic who lives in the suburb. He used to love going to hypermarkets in town on the weekends, not only for shopping but also for entertainment. However, the excitement is wearing down, even more so with the economic downturn. Ali now hesitates to travel the distance just to spend more time and money.

“I want to curb my spending, so I don’t want to be tempted by too many promotions.”

Letchumi, 32, is a government officer who has a lot of credit card debts. Realising the situation that she is in, she is becoming more cautious in spending. She stops buying the ‘luxuries’ and avoids stores that throw a lot of promotions that could lure her into using her ‘plastic’. She even utilises shopping lists to avoid overspending.

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THE CHANGING CONSUMERS

Social changes leading to the birth of SFS.

Consumers are no longer the same. Everything that involves their daily activities, shopping and consumption habits has been altered due to their present circumstances like demanding work and life commitments and rising prices of goods. The following are a few scenarios that demonstrate how consumers are changing today.


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“Shopping is difficult because my working hour is not fixed.”

Selva, 24, is a fresh graduate who just landed a job as a management trainee in a multinational company. Having too much to learn and do, he ends up coming home late almost everyday. Because the neighbourhood shops are closed early, it is hard for him to even buy a new bottle of shampoo.

“I want my family to eat good quality foods but I need them at good prices.”

Rokiah, 61, is a retiree who spends her time taking care of her granddaughter. With high awareness and family history of chronic diseases, she wants to make sure that the granddaughter stays healthy by eating only fresh and good quality foods. However, such products are more expensive and Rokiah cannot get them in the neighbourhood shops.

“I’d like more information and services when I shop.”

Lai, 38, is a successful businesswoman who has very limited personal time. Therefore, even when she goes for grocery shopping, she wants to make sure that the trip is worth his time. She likes going to shops that are clean, well-organised and provide personalised services.

“I can’t afford to buy in bulk for my family’s daily usage, what more in this economic downturn.”

Ah Fook, 49, is a father of six who owns a small bookshop. Since business is slowing down due to the downturn, he finds it hard to make ends meet. Instead of making big purchases of necessity items every month, Ah Fook now gets his wife to buy in smaller portions at the neighbourhood store. At least, he gets to keep more cash in his pocket in case of emergencies.


UNIVERSAL CHARACTERISTICS OF SFS

How SFS cater to modern consumers.

Consumers are changing, and the changes are very likely to stay if not to evolve even more. Keeping true to this fact, the retail industry jumps quickly into action by taking a lot of initiatives to continuously meet consumers’ needs and expectations. One of the most significant initiatives that can be seen is the emergence of SFS. Read on to find out more about the universal characteristics of SFS that are tailored to match the changes in consumers.

Range from only 2,000 to

4,000 sq feet in size.

Busy consumers want shopping (especially for the necessities) to be quick and easy. The size of SFS helps consumers to easily navigate through the aisles and avoid them from having to wait in long checkout lines.

Mainly stock high frequency food, grocery

and household items.

Since there is limited shelf space, SFS usually focus on necessities that are frequently purchased by consumers eg 7 – 8 times a month. This makes shopping easier and help consumers refrain themselves from buying the items they don’t really need.

Placed in strategic

locations, not just in city centres.

Since most modern trade outlets are built in city centres, not all consumers are able to visit them frequently especially those who live in suburban areas and come from lower-income group as it requires travelling. SFS are strategically built to reach out to more consumers regardless of their locations and income brackets.

Many are open 24 hours a day.

Demanding work commitments cause more consumers to work late thus making it hard for them to shop in outlets that are closed early. SFS that are open all day provide them the means to shop late at night or early in the morning.

Offer basic and fresh goods at

reasonable prices.

Most consumers believe that products sold in modern trade are much cheaper and of better quality. SFS cater to this perception by helping consumers get more value from purchases of basic necessities like staples.

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Clean, well-lit and

well-arranged layouts.

Consumers appreciate good store layouts that make shopping convenient and enjoyable even during top-up and quick trips. SFS emphasise on proper store layouts to provide consumers the pleasant shopping experience they usually get in modern trade outlets.

Sell products in the right

quantities for daily use.

The economic pressure on consumers cause them to keep more cash in their pockets. Therefore, most consumers especially from the lower income group are not keen on big monthly purchases especially for the necessities. Most SFS stock products in smaller quantities that are suitable for daily use ie becoming consumers’ pantries.

Emphasise personalised

and customised services.

The size of standard modern trade outlets hinders consumers from getting personalised services like explanation on products that helps in influencing their purchases. Most SFS pay more attention to such services as well as other ancillaries like home delivery, laundry, food reheating etc.

Use up-to-date technology to

operate the business.

Modern retailers invest in SFS to ensure that they mirror their bigger counterparts ie hypermarkets and supermarkets. Most SFS utilise modern technology like bar coding & security system, inventory and cash management software etc to increase efficiency, making it more convenient for consumers.


SFS AROUND THE WORLD

The small format stores concept is becoming a global phenomenon. The following are information on some of the key players and the countries they operate in.

Europe

Sainsbury’s Local (United Kingdom)Sainsbury's Local offers customers 1,500 of Sainsbury's Supermarkets most popular products, as well as convenience store innovations such as in-store baked bread, a hot food counter and an

ATM facility.

Aldi (Germany)Aldi, which started in Germany, now has over 5,000 stores worldwide. Stores dedicate their shelf space to the most frequently purchased grocery and household items. The products mostly comprise those of their own in-house label.

South America

Super EKI (Argentina)Super EKI is a discount store chain that started in 1996 and sells basic staples and key grocery items. Super EKI currently has 150 stores spread across Buenos Aires and Santa Fe.

Oxxo (Mexico)Oxxo is a convenience store chain that boasts over 5,500 stores across Latin America and is the largest chain of its kind in Mexico. Store layouts follow a pattern similar to convenience stores such as 7-Eleven.

United States

Tesco Fresh & Easy Neighborhood MarketAt roughly 10,000 sq ft, UK-based Tesco’s Fresh & Easy Neighborhood Markets in the United States gives customers a faster, easier shopping experience. In addition to prepared meals and fresh produce, Fresh & Easy offers brand products and household items. Each store employs approximately 20 to 30 people.

MarketsideWal-Mart’s Marketside, the US retailing giant’s first small format concept store, comprise outlets that stock 5,000 to 10,000 items such as fresh produce, bread and basic necessities like toothpaste.

Asia

Bharti Retail (India)Bharti Retail aims to serve all regular shopping requirements of average Indian household, including all food & grocery categories, fresh fruits & vegetables, meat, poultry & dairy products, FMCG and processed foods.

NTUC FairPrice (Singapore)The leading supermarket retailer in Singapore, with a retail network of over 225 stores. Besides its flagship FairPrice supermarkets, the FairPrice Group also has various store formats targeting different market segments eg FairPrice Xpress, FairPrice Homemart, FairPrice Xtra and FairPrice Fines.

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Malaysia

Carrefour ExpressCarrefour, Malaysia’s smallest hypermarket chain (in terms of outlets) opened its first Carrefour Express in March 2008. Described as a fusion between hypermarket and convenience store, the stores that are only about 1,000 sq m in size carry almost 4,000 items.

Pasaraya MaxValuAeon Jusco ’s Pasa raya MaxValu (formerly known as

D’Hati) provides maximum value to consumers in terms of quality, prices, product freshness & assortment and customer service. Stores are situated at densely populated neighbourhoods.

Speedmart 99A provision retail chain, Speedmart 99 offers a range of in-demand, essential and fast-moving consumer goods. The brand focuses on a strategy of top-up shopping and quick trips.

MyMydinLocal hypermarket operator

Mydin Mohamed Holdings Bhd (Mydin) currently has nine MyMydin mini markets and plans to open 50 more via franchising over the next two years. The mini markets costing between RM500,000 and RM1million each depending on the size, will all be located in the Klang Valley.

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CONCLUSION

Now that you have understood the SFS concept, it is time to take the necessary actions. Do not just wait and watch in despair as more and more such outlets are built around you. Interested in modernising and evolving your business as per this concept? Here are some ideas that you can implement.

Understand Your ShoppersThe key to the success of SFS is a good understanding of consumers ie their needs, wants, changes etc. Observe and talk to your shoppers to find out how you can serve them better. They may need better range & assortment, cheaper price, higher quality or maybe just a friendlier service from you.

Get A New LookIf you have never changed the look of your shop ever since you started business 15 years ago, perhaps it is time to do so. Do own research on contractors and suppliers that can give you the best prices for renovations and new appliances for the shop (eg shelves, lightings, computer etc).

Update Your SystemFind out more about recent technologies that can be applied to your business and do not be afraid to spend a bit. For example, try bar coding system which is more effective than the traditional way.

Start Doing MoreExpand your business by exploring into more areas. Stand out among your competitions by offering other services than just selling products. Home delivery, ready-to-eat dishes, internet and laundry services are some good examples of services that you can provide.

Brush Up The SkillsRead up more on business and management skills. Attend workshops and talks that can help you improve the way you run your business. Then, make use of the knowledge to train your staff to be more efficient and helpful to your shoppers.

Promote Your ShopLet people know about your shop and services. You may opt for the common leaflets or better yet, have your own website that will surely give you more exposure. You can easily get one constructed at reasonable rates nowadays.

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Freda Abd Manan & Kumar Sivagurunathan – Runcit Malaysia

CAN’T BEAT THEM? JOIN

THEM!


BISCUIT TALES NOW AND THEN

Long gone are those days when biscuits were mainly sold in huge metal tins in night markets and traditional shops. The biscuit industry has evolved along with technology.

Remember the good old days when we used to enjoy our biscuits with hot kopi or teh o? Biscuits were then sold mainly in neighbourhood shops and night markets. The retailer would scoop the biscuits with bare hands, chuck a handful in a plastic bag and weigh it. Sometimes we twitched but we still bought them for the love of biscuits.

Alternatively, we bought biscuits from the bai roti who would come on his bike every morning and evening, selling many kinds of bread and snacks including biscuits. Compare biscuits then and now, the evolution of the biscuit industry is happening right before us.

Consumers used to have it easy when it comes to biscuits. The formats and flavours were limited. Biscuits came in either air tight metal containers, big-sized plastic packaging or plastic bags tied with raffia string and the three common flavours: chocolate, vanilla or strawberry.

However, the biscuit industry has evolved majorly over the years. Along with changes in consumers’ taste and preference, the industry players responded by coming up with different categories of biscuits. As can be seen in the “Biscuit Category” diagram, consumers are now free to choose the kinds of biscuits to munch on. The same goes with flavours. Just to name a few, today consumers can enjoy cheese, coffee, fruit, seaweed and even wasabi-flavoured biscuits. In addition, modern biscuits come in different pack sizes and packaging to meet consumers’ different needs and wants.

Another interesting point to note is the reversal in the roles of the retail channels. If loose biscuits could only be bought in grocery shops and night markets before, they are now more easily found at the titbits sections of hypermarkets and supermarkets. It seems that what was once made famous by the British is now dominated locally. The biscuit industry grew even bigger when local players such as MUNCHY’S, Kraft, Julie’s and Hup Seng dominated the market.

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CRUNCH BITES

• 10,000 years ago – The first biscuits were produced in China.

• Baked twice – The meaning of the Latin word from which “biscuit” came from.

• Great Britain – The country that started industrialisation of biscuits.

• World War I – Soldiers had biscuits as daily food because it lasted longer when kept in tin containers.

• Apicius – The Roman chef who created the first biscuit recipe made of thick wheat flour paste and served with honey and pepper.


THE BISCUIT TREE

BRAND OWNERS

MUNCHWORLD MARKETING SDN BHD Address : Centro Building 23rd Floor, 8, Jalan Batu Tiga Lama, 41300 Klang, Selangor Darul Ehsan. Tel : (03) 3344 7888 Main Brands : MUZIC, LEXUS, MINI, LITE CRACKERS AND CAPTAIN MUNCH Website : www.munchys.com

KRAFT MALAYSIA SDN BHD Address : Unit 701-704, Level 7, Uptown 1, No. 1, Jalan SS 21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor Darul Ehsan. Tel : (03) 7727 1888 Main Brands: JACOB’S, TIGER Website : www.kraft.com

PERFECT FOOD MANUFACTURING (M) SDN BHD Address : AG 6876, Alor Gajah Industrial Estate, 78000 Alor Gajah, Melaka. Tel : (06) 5561 401 Main Brands : JULIE’S ASSORTED BISCUITS, JULIE’S LOVE LETTERS, JULIE’S SANDWICH BISCUITS, WAFERICO Website : www.perfect-food.com

HUP SENG PERUSAHAAN MAKANAN (M) SDN BHD Address : 14, Jalan Kilang, Kawasan Perindustrian Tongkang Pecah, 83010 Batu Pahat, Johor. Tel : (07) 4151 211 Main Brands : HUP SENG CREAM CRACKERS Website : www.hupseng.com

HWA TAI INDUSTRIES BERHAD Address : No 8, Jalan 1/1, Taman Industri Selesa Jaya, 43300 Balakong, Selangor Darul Ehsan. Tel : (03) 8961 0900 Main Brands : LUXURY Website : www.hwatai.com

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Freda Abd Manan & Wong Wen Dee – Runcit Malaysia


C.K. TanGroup Chief Executive OfficerMunchy Food Industries Sdn BhdMunchworld Marketing Sdn Bhdwww.munchys.com

Bright-coloured packaging. Fun and cheeky messages. Who would not think of MUNCHY’S when it comes to these? MUNCHY’S has gone a long way from its humble beginning as a company that only produced wafers. Today, it is the No 1 Homegrown Biscuit Brand (Nielsen Retail Index Corporate Value Share, June 2006 - July 2008, excluding Sabah & Sarawak) specialising in wafers, wafer sticks and biscuits. RUNCIT MALAYSIA spoke to the group’s Chief Executive Officer, C.K. Tan about the journey that has taken the company to its admirable position today.

RUNCIT MALAYSIA (RM): How did the MUNCHY’S business come about?C.K. Tan (CK): My two elder brothers, S.K. Tan and L.K. Tan founded the company in 1991. Believe it or not, we started business with just a secondhand wafer machine worth only RM80,000 in a small factory in Batu Pahat. Then in 1992, we received an offer to produce chocolate-coated wafers. That was when my brothers bought the most advanced machine and started producing wafers with modern technology. I joined the company in 1994. Subsequently, my two younger brothers hopped on board. In 1996, we moved our factory to the current Batu Pahat site and imported the largest wafer line in Asia.

RM: What were some of the challenges faced in the early years of MUNCHY’S?CK: When we started, wafers only had about 1% market share. Although there was room for growth, developing a niche market was a real challenge. The mid 1990s financial crisis did not help either. In 1996, our turnover was only about RM12million. Thankfully, we had a very committed team that had worked together to support and rapidly grow the business. By the time the crisis ended in 1999, our turnover summed up to over RM53million.

RM: What is the idea behind the colourful and fun image of MUNCHY’S?CK: Our founders always liked vibrant and cheerful colours because it represents the enjoyment of life. Our target consumers have always been the young people and those ‘young at heart’. We want to

encourage them to always be happy. This is why, in 2005, we revamped our positioning to ‘colouring moments with cheeky fun’. This applies to not only our products but also our factory and our people.

RM: The Nielsen Company recently named MUNCHY’S the No 1 Homegrown Biscuit Brand. What had contributed to this success?CK: We are overwhelmed by this achievement but recognition is not the only thing that matters. Our focus is more in defining our products and creating our own niche. We always challenge ourselves to do better. We invest a lot in people too. We have invited a number of highly talented and capable individuals from multinational corporations to join us. The merge of the new and old staff has brought the company to the next level. We also continue to let technology and quality drive our success. We have spent over RM200 million since 1996 in our top-of-line factory and warehousing facilities. In the last 2 to 3 years, we invested RM50 million to double our manufacturing capabilites to upwards of 5,000 tons per month. Our factory is now recognised as the most advanced biscuit factory in the country. We never compromise our quality. Every MUNCHY’S product goes through stringent manufacturing process. Apart from being a well-known homegrown brand, we are also targeting to be more recognised internationally. Today, our products are exported to approximately 60 countries worldwide.

RM: How important is the traditional trade to MUNCHY’S business?CK: The traditional trade has high potential due to its size and reach. This is the reason why we recently appointed 20 distribution partners to help us increase penetration into this channel. We are also creating many new products that are skewed towards it. For example, CAPTAIN MUNCH is specially developed for traditional trade consumers. Although the traditional trade only contributes about 38% of our business at the moment, we believe it will grow tremendously within a year.

RM: What is your advice to traditional retailers to keep on striving for success?CK: In business, being optimistic is key. Retailers need to focus more on doing what’s best for their business than worrying about the competitions. I do not agree that imported brands are more superior, their set ups is better or that they have better people than us. Make the best use of your resources and never settle for less.

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NO 1 HOMEGROWN BISCUIT BRAND

MUNCHY’S success proves that local brands are not inferior.

http://www.munchys.com



COLOURING MOMENTS WITH CHEEKY FUN

K.K. Sim, General Manager – Distribution, Sales & Marketing of Munchworld Marketing Sdn Bhd explains

why there’s MUNCHY’S for every place and time.

K.K. SimGeneral Manager – Distribution, Sales & MarketingMunchworld Marketing Sdn Bhdwww.munchys.com

Meeting everyone’s expectations – this is what we aim for when creating our products. Since our inception in 1991, we have been striving to create MUNCHY’S reputation as a brand that is able to meet every demand, be it satisfying hunger, snacking or just having plain good times. We strongly believe that in order for consumers to continue purchasing our brands, they must be tasty, have good quality and come in interesting packaging at affordable price points.

We place great focus in brand building. Over the last few years, we have taken many initiatives to ensure that consumers adopt a strong liking towards our brands. By changing our logo from a single M to a ‘universe’, we emphasise that our sub-brands like MUZIC, LEXUS and MINI come under one motherbrand, MUNCHY’S. We also invest a lot in sponsorships and corporate social responsibilities programmes.

There is no doubt that the traditional trade is an important channel to MUNCHY’S because it allows us to reach a wider scope of the market. We are now tailoring our marketing efforts to focus more on creating better representation of our brands in this channel. We work closely with our distributors to ensure that we provide the support and help needed by retailers to drive the sales of our brands. In addition, we do a lot of strategic promotions and come up with specific SKUs for the traditional trade.

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BITE THESE!

The following are some awards and recognitions received by MUNCHY’S to date.

o ISO 9001:2000 (2003)o Brand Equity Award (2003)o Superbrands Status (2003/2004/2005/2008/2009)o HACCP (Hazard Analysis Critical Control Point) Certification (2004)o HALAL certification by JAKIM (since 1998)o Malaysia Book of Records 2006 “ Largest Wafer Manufacturer” (2005)o Taste of Malaysia Award from Tesco, London (2007)o The BrandLaureate Award:

• Product Branding (Confectionery Category) – Biscuits and Wafers (2006-2007,2007-2008,2008-2009)• Brand Specialty in terms of Brand Strategy (2008)




BRAND FACTSFirst ‘MINI’ in Southeast Asia

Handy and easy-to-eat, MUNCHY’S MINI is the first sandwich biscuit of its kind in South East Asia to combine diminutive size and great taste. Produced in a revolutionary way to maintain consistent quality in taste and texture, despite the size and manufacturing speed, MUNCHY’S MINI demonstrates a milestone in the company’s manufacturing process. Whether one is stuck in evening rush hour traffic, in need of a quick nibble at home until lunchtime or hanging out with friends, there’s a MUNCHY’S MINI to the rescue. Small in size and big on fun, MUNCHY’S MINI is available in three variants: Cheese Cream, Chocolate Cream and Peanut Butter Cream. MUNCHY’S MINI truly reflects that ‘Life’s more fun with MUNCHY’S’.

Fun & Energizing CAPTAIN MUNCH

MUNCHY’S CAPTAIN MUNCH reinforces the brand’s commitment to providing more great-tasting snacks that help consumers strike a healthy balance in their daily lives. Enriched with Energy Plus that contains Vitamins B1, B2, B3, B6 and B12, MUNCHY’S CAPTAIN MUNCH isn’t just an easy treat to grab between meals – it is also an important source of vitamin and nutrition. MUNCHY’S CAPTAIN MUNCH is the healthy snack solution for kids, teens and adults on-the-go. Consumers can take a quick break from their busy schedules to enjoy a delicious and healthy snack that’ll rejuvenate them before moving on to the next activity. Busy mums too now have the perfect nutritious and tasty quick-fix snack for their children. MUNCHY’S CAPTAIN MUNCH comes in two flavors: Milk and Chocolate, in 75g and 200g handy pack sizes.

LEXUS Satisfies Hungry Moments

LEXUS, the hero product of MUNCHY’S is a perfect filling snack at work or at home. With Vitamin A, D3, E, B1, B2, B3, B5, B6, B12, Iron, Calcium and Folic Acid, MUNCHY’S LEXUS is the healthiest of its range. Unlike any other crackers, MUNCHY’S LEXUS does not have an oily surface, contains zero preservatives and is sprinkled with real vegetable parsley. MUNCHY’S LEXUS caters to every-one’s taste with three interesting flavours: chocolate, peanut butter and cheese. The specially formu-lated cream is rich in taste and smooth & creamy in texture. The crackers are automatically produced and packed in individual sachets to maintain freshness and hygiene. MUNCHY’S LEXUS sachets come in a one-of-a-kind box that opens up to form a placement tray. It comes in four pack sizes: 32.5g, 118.75g, 190g and 285g.

Healthy LITE For All Generations

MUNCHY’S LITE has its very own creamy fragrance and taste. It is the perfect choice for breakfast and serves as a good fill-me-up snack during those hungry moments. MUNCHY’S LITE comes in four different variants: Cream, Calcium, Vege and Sugar to suit individual liking and preference. Each cracker is marked with its respective series and comes in fresh and toasty texture. The Cream, Vege and Sugar variants are available in 450g while the Calcium variant comes in 380g pack size. There is also a 150g pack size for MUNCHY’S LITE Cream Crackers.

The Perfect Bite of MUZIC

MUNCHY’S MUZIC comes in nine alternative layers of wafer and cream that are stacked together to form a perfect bite-size cube. The wafers are made fresh to give that special crunch when eaten while the cream is made of special ingredients, formulated to stay in shape outside and instantly melts in the mouth inside.A special process for applying cream onto wafers is utilised to create a smooth and silky texture of cream. Available in two different flavours: chocolate and hazelnut, MUNCHY’S MUZIC is made of real cocoa, peanut and hazelnut paste. This healthy muncher contains no preservatives, trans fats or artificial flavouring. MUNCHY’S MUZIC comes in two convenient pack sizes: 125g and 225g.

SAHABAT RUNCIT

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Freda Abd Manan – Runcit Malaysia


KNOW YOUR TOOTHBRUSH

Tips on understanding the toothbrush

History Of The Toothbrush

In the past, there were no fancy toothbrushes like what you see in stores today. People either used their fingers, charcoal powder, chewed sticks or rubbed their teeth with a damp cloth. From those primitive methods, we have evolved to using the toothbrush thanks to the Chinese who invented it. The bristles were made from the hair of wild boars or horses hair and were attached to a bamboo or bone handle. Many centuries later, the hair was replaced with nylon. Over the centuries, toothbrushes of various innovative designs, materials and colours began to appear in the bid to cater to the needs of different consumers, which continues to this day.

Most consumers are willing to spend on their toothbrushes if convinced that their needs could be met. Here are some insights to help retailers like you, better manage this product category.

1. Range There are many ranges of toothbrushes. The adult and children ranges are quite common and can be found in most stores. There are also sensitive and whitening ranges that are designed for specific functions.

2.BristlesHard bristle toothbrushes are meant for large, solid teeth and gums. Medium bristles cater to people of all ages and are able to thoroughly clean your teeth. Soft bristles suit the elderly and children as well as for those who have conditions, eg; sensitive teeth. Toothbrushes should be replaced when the bristles fray or within three months, whichever earlier.

3.Head TypeBrushing your teeth can be an uncomfortable experience if the wrong toothbrush head type is used. There are four common toothbrush heads. If you have a large mouth, choose a full size head. Use a compact head if you have a small mouth. For those who have difficulty brushing those hard to reach places, try using an oval or rectangular head for maximum brushing.

4. DesignBelieve it or not, toothbrushes are part of our lifestyle. Many consumers are attracted to the many colourful designs.

5. Price Consumers look for efficiency and practicality at reasonable prices.

6. Buying Patterns According to TNS Worldpanel Asia, consumers only stock up on multipacks towards the ending year. This could be due to either their dwindling stock of toothbrushes or simply a general behaviour of buying multipacks twice a year. Nevertheless, there is a decline in sales of both single and multipack toothbrushes. Malay consumers prefer to purchase single packs whereas the Chinese prefer multipacks.

Article in collaboration with

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Wong Wen Dee – Runcit Malaysia


THE ESTABLISHED ORAL CARE SPECIALIST FROM NORWAY

JORDAN’S success is the result of a rich heritage dating back to more than 170 years. It has established itself as Norway’s oral care specialist. The quality of its products has given consumers healthy and satisfying smiles for decades. It is those smiles that have built the corporation’s outstanding reputation.

A pioneer in the development and marketing of cutting-edge oral hygiene products, JORDAN’S strengths lie in its flexibility and ability to develop products for local markets and specific oral health needs. JORDAN is constantly strengthening its expertise in product development by collaborating with research centres, universities, dentists, designers and, most importantly, its customers.

JORDAN entered the Malaysian market in the early 1980’s. It has a factory located less than 30 minutes from Putrajaya. It now has the capacity to produce 50 million toothbrushes a year. Locally produced JORDAN toothbrushes are exported to more than a 100 countries in Europe, North America, Asia and Australia.

JORDAN’S History

1837 - Established by Mr Wilhelm Jordan as a small Norwegian family business.

1920 - Became the biggest brush producer in Scandinavia.

1927 - Started toothbrush production.

1957 - Began exporting toothbrushes.

1974 - Jordan was known as the world’s second largest toothbrush manufacturer.

For orders and enquires, please contactJORDAN REGIONAL OFFICE

Tel: (03) 7803 3060 Fax: (03) 7803 3260 Website: www.jordanfareast.com

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UNDERSTANDING TAXES

It saves you from paying too much or too little

Adam received a fine from the Inland Revenue Board (IRB) because he failed to include certain items in his tax. He had no idea that they had to be declared.

Sounds familiar? Not the best situation to be in isn’t it? Familiarise yourself with the rules and regulations of taxes to avoid yourself from getting into such trouble.

A Compulsory Contribution

Taxes are used by the government to fund for public services such as education, hospitals and healthcare, roads and welfare. However, in business, a sole proprietor like yourself should take advantage of allowable business expenses and deductions to reduce taxable income.

Deduct It!

Do not pay taxes blindly! Understanding the workings of tax helps to avoid you from being penalised, alert you of your deduction entitlements and lessen your business and personal financial burdens. The following are three types of expenses that you should look into to reduce your business tax.

Business Expenses

This is also known as operat ing expenses. I t involves monthly utilities that is necessary to run your business. These are some examples of tax-deductible expenses:

• Water• Electricity• Waste removal• Telephone• Accounting fees• Rental of premises• Sales advertisements

These on a monthly basis c a n c o s t y o u s e v e r a l hundred or even thousands of ringgit. Try and deduct some of these expenses in your tax return to lessen your burden.

Mixed Overhead Expenses

Small business retailers tend to have limited sources. They usually mix personal assets such as motor vehicles, mobile phones and computers into their business usage.

Therefore, it is important that you clearly separate items such as:• Petrol • Repair and maintenance on

vehicles • Telephones charges.

These expenses should be segregated according to either business or private expenses. If p r i v a t e e x p e n s e s a r e intentionally added in business expenses, there will be a hefty fine to pay.

Entertainment Expenses

These expenditures are usually used to maintain existing sales promotion or revenue and increase sales. They are generally 50% deductible. However, there are some expenses that can be fully deducted such as

• Promotional samples of your business products

• Provision of promotional gifts within Malaysia w h i c h c o n s i s t s o f advertorial write-ups that i n c l u d e y o u r advertisement or your business logo

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Tax Penalties

It is important to declare your taxes properly or risk being fined or even sentenced to jail! The government can penalise you on the following circumstances:• Fail to notify chargeability• Late submission of return form• Fail to comply with notice• Fail to declare all related taxable items• Intentional declaration of personal expenses through business expensesThe dateline for company income tax submission is the 30th of June every year. Trying to avoid paying taxes is a serious offence! This also applies to those who intentionally try to falsify their accounts. If you are unsure or need more information, visit the Inland Revenue Board (IRB) for further clarifications.

Source: Inland Revenue Board

Tax is neither our friend nor our enemy. So, remember to pay your taxes. We hope the information provided is sufficient. Good luck!

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Chow Nyuk Loong & Wong Wen Dee – Runcit Malaysia


MINDING YOUR DEBT

Practising good debt management is important especially in times of crisis.

Debt! What is the first thought that comes to mind? Did you perceive it as something good or bad? Regardless of you just starting your own business or have been in it for years, it is important that you spend your cash wisely. This will avoid being caught up in tight cash flow situation at any time.

Why Manage Debt?

• Gain knowledge and able to decide on the right preventive measures.

• Provide long-term financial benefit when managed properly.

• 10.3million Malaysian credit cardholders are in debt worth RM22.8billion (Source: The Star, February 2009).

• According to Agensi Kaunseling dan Pengurusan Kredit (AKPK), people are unable to repay their debts mainly due to poor financial planning (22%) and failure/slowdown of business (13%).

How To Manage Debt?

• Debts Are Not Necessarily BadDebts come in two forms. Good debt means able to pay off what you have borrowed. It will bring long-term benefits if managed well. Bad debt means borrowing unnecessary for vacations, clothing or recreation purposes that you might not be able to pay off.

• Understand Interest RatesInterest rate acts as a lender’s fee for using their money. Different type of loans comes with various rates and is usually based on per annum (p.a) basis. Always double check on the terms and conditions before agreeing to any loan.

There are two types of interest rates. Fixed interest rates –will remain the same until your loan is fully paid. Variable interest rates- will fluctuate from time to time throughout loan term. It is usually pegged on a standard market rate.

• Identify Current Financial SituationAnalyze your financial situation at least once a month. It will help foresee any future debt problems should any arise.

• Pay Bills On TimeThis prevents your debts from mounting up and paying late charges fee, especially for credit card payments. This also helps maintain or build good relationships with suppliers. Most importantly, it will ensure continuity in your stock supply.

• Track Your SpendingStart a debt spreadsheet or a small notebook to keep record on your spending. This will give you a clearer picture on where your money is mostly spent.

• Have An Emergency Fund“Malaysians do not save enough”, commented Mohamed Akwal Sultan, CEO of Agensi Kaunseling dan Pengurusan Kredit (AKPK). Make regular contributions to the fund as this will be handy should there be any unexpected expenses.

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Who Can Help?

Should you need advice or to enquire about debt management, Agensi Kaunseling dan Pengurusan Kredit (AKPK) is a subsidiary of Bank Negara Malaysia that can provide you professional help.

AKPK can help with• Providing free financial education on basic money management skills and tips on responsible

credit usage.• Providing free financial counseling and advice on finance management. • Offering free debt management services to those who have financial problems. Professional counselors and financial service providers will help design your personal debt repayment plan.

For more information or enquiries, call AKPK toll free number 1800 88 2575 or visit their officialwebsite, www.akpk.org.my

We hope that the information provided is sufficient as a guide to healthy debt management. All the best and good luck!

WANG RUNCIT

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EFFECTIVE INVENTORY TURNOVER

Effective inventory turnover is vital to any operating business as it greatly impacts cash flow especially for small businesses.

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In our last Rencana Runcit, manufacturers such as Dutch Lady and P&G highlighted that inventory turnover is one of the challenges faced by them due to the current economic downturn. For a traditional retailer such as yourself, inventories are your assets. Keeping tabs on it is like a balancing act. Controlling your inventory turnover helps to avoid congesting your shelves with overstocked products. It could either help grow your profit or shower you with debts.

Turning Inventory Into Cash

Your business is all about selling products. Over a period of time, you might wind up with a gradual mounting store of items that fail to sell. To avoid losing your assets, here are some tips on engaging in a healthy inventory turnover.

1.Take Responsibility On Your ProductsMany retailers take advantage of the trade return policy and neglect in taking ownership of purchased goods. Taking responsibility allows both manufacturer and retailer to take on a positive approach in eliminating or minimizing trade returns.

2.Clean Shop, Clear PerspectiveA clean shop and organised shelves will help in stock checking. With an organised shop, retailers will be able to clearly determine what and how much to stock.

3. Purchase The Right Quality And Quantity Observe and communicate with your shoppers on the types of products they buy. It would help improve your forecasting on purchasing stocks. Never overstock unless under circumstances such as price increment of products (last batch offer), temporary shortage caused by another party (mostly manufacturer’s) and sudden demand of shoppers due to festive seasons.

4. Keep Minimum Stock LevelMinimum stocks should be kept for slow moving products but remember to order on regular basis when products are running low.

5. Stock Up According To Your Facilities If you do not have chillers or fridges in your store, never stock perishable products. If you wish to do so, stock up a small amount that allows you to sell it all in one day.

6. Keep Proper RecordsAlways check on expiry dates of products at least once a week to avoid loss. Have regular updates on your stocks to allow you to take measures to clear them out.

7. First In, First Out To ensure that old stocks with earlier expiry dates are sold first, always place them in front of the shelves. Place new stocks behind to allow for longer duration for them to leave the store before expiration.


Removing Old Stocks

Stuck with old stocks and don’t know what to do with them? Here are a few tips that could help you clear some shelf space.

1. Sales And Promotions Be creative and try to sell as much of the old stocks. Bundle these items up and package them at an attractive price. Have promotions such as “Buy One, Free One” deals.

2. Return To Manufacturer Return unsold stocks to manufacturer based on trade returns policy. However, this is not encouraged as it should be ideal for both manufacturer and retailer to work together and minimise trade returns.

3. Perishable Goods Take the effort and initiative to clear all perishable products such as vegetables, milk and other food items that have expiry dates within the day to minimize loss. Check your stocks a few hours before closing time. You can sell them creatively such as closing time sale, happy hour sale, half price or stock clearance sale.

We hope these tips can help you manage your inventories even better especially in this economic crisis. All the best and good luck!

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KNOW YOUR PRODUCTS

More information, more sales!

“What is the difference between this and that? They both look the same.”

Have you been asked this question? If you hesitate or answer wrongly, the shopper may not buy either. Prepare yourself with knowledge on products to secure purchases of those already in your shop and attract new shoppers.

WHY SHOULD I?

• Encourage loyalty to brands and your shop. A good explanation will build shoppers’ trust in a product and create a good image for you as a knowledgeable retailer.

• Drive sales of certain items. Be it new, slow-selling or even hot items, being able to explain your products will surely encourage more purchases.

• Bring you closer to the suppliers/manufacturers. When finding the information, you will know more about the company, its new products, consumer or trade promotions and even get help on display and merchandising.

WHICH PRODUCTS TO FOCUS ON?

• Necessities. Shoppers will continue buying these regardless of the shape of the economy. Find out more about the range so you can give recommendations based on your shoppers’ needs and budgets.

• New products. Have the right information on these products as shoppers need them before making trial purchases. Failure to do say may cost your investment in the new stocks goes to waste.

• Slow-selling items. Certain products may not sell well because they are not promoted enough or even placed in wrong sections. Gain more knowledge on them so you can merchandise better and encourage your shoppers to purchase them.

WHAT DO I NEED TO KNOW?

• Backgrounds. This has to do with the manufacturers. Knowledge on the company’s performance and range will definitely help you explain their products.

• Uses. Be prepared to answer questions like how, where, when and why to use certain products.• Benefits. Knowing why a product is better than the other will help you drive your sales.• Performances. Explanation that is based on personal or others’ experiences is more effective compared

with those written on its packaging or leaflet.• Types. Having information on the shelf key units (SKUs) will enable you to tailor your explanations to suit

each shopper.

HOW DO I GET THE INFORMATION?

• Ask your suppliers when they deliver stocks or bring new items. If the explanations are doubtful, reconsider buying the products. After all, shoppers will do the same too if you can’t give them the information they demand for.

• Contact the manufacturers. Most manufacturing companies have toll-free lines and operators to answer questions from consumers and retailers.

• Visit the companies’ websites for more information on products, ingredients and even target shoppers. Some websites also have lifestyle tips that can be used for your business or personal life.

• Ask your shoppers who have tried or been buying the products that you want to drive. Make use of the responses to help you recommend the products to others.

• Try the products so you will be able to share your real experience with shoppers. This will also encourage you to become more ethical in business.

Always remember that as a traditional retailer, you have the opportunity to give personalised service unlike your modern trade competitors. We hope these tips will help you drive more sales in your shop. Good luck!

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APPRECIATING CONSUMERS’ SUPPORT

Since its inception over 22 years ago, Southern Lion Sdn Bhd, a joint venture between Lion of Japan and Lam Soon (M) Bhd, has truly come a long way. Today, with continuous efforts to innovate, Southern Lion has become a strong leader in several main categories while maintaining its commitment to environmental protection. Much of the company’s success is owed to the strong support from consumers. In an effort to show its appreciation, Southern Lion recently fetes consumers through various activities including Lion Dental Health Programme, Corporate Roadshow and SHOKUBUTSU’s 11th Birthday Bash with MY FM.

LION Dental Health Programme

The Lion Dental Health (LDH) Programme was introduced in Malaysia in 1998. The programme is one of Southern Lion’s social contribution programmes for Malaysians. It aims to create awareness on the importance of oral care since early age.

In the beginning, the programme was conducted by staff from the LION Dental Hygiene Centre (LDHC) of Japan. However, in 2000, the LDH programme began to be fully conducted by local staff. Every year, the programme undergoes transformation to ensure its relevance to local identity and to take into account the public’s habits and levels of awareness on oral care.

LDH Programme educates children on the importance of oral care through fun and exciting ways. Serious messages are delivered through fun story-telling sessions to make it easier for children’s understanding. In addition, the programme is often conducted in collaboration with government dental clinics around Malaysia. Since its inception in 1998 till now, the programme has managed to reach more than 370,000 children across Malaysia.

Healthy Family, Healthy Life

In July and August 2009, Southern Lion held a Corporate Roadshow themed “Healthy Family, Healthy Life” in Queensbay Mall, Penang, Sunway Pyramid, Kuala Lumpur and AEON Tebrau City, Johor Bahru. The objective was to create awareness among the public on the importance of practising easy health tips to ensure a healthy family and life. Various interesting activities like free dental check, hand washing and product demos as well interactive games were conducted.

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Special Reward for Loyal Consumers In Conjunction with SHOKUBUTSU’s 11th Anniversary

11 years is not a long period but for SHOKUBUTSU, it is a great achievement. SHOKUBUTSU is a liquid shower foam made with 100% plant cleansing ingredients. It is the only brand that has managed to reach the No 1 position in total Peninsular Malaysia (TNS Consumer Panel, June 2008-2009) in such a short period.

In conjunction with its 11th anniversary, SHOKUBUTSU’s loyal consumers were given the chance to celebrate with local and international celebrities during the 11th Anniversary Celebration Concert that was held in collaboration with MyFM radio in Genting Highlands on August 15, 2009.

Southern Lion Sdn BhdTel: 1 800 880 133 Website: www.southernlion.com.my

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Gentle Supreme Sdn Bhd is the distributor company for superior household and personal care products from the WINGS Group of Indonesia. Their brands include DAIA laundry detergent, BOOM powder detergent, GIV beauty bath soap and MI SEDAAP instant noodles. These products are widely available in every type of store, from provision shops to hypermarkets.

Renowned for its dynamism and excellence, Gentle Supreme has been awarded the Business Superbrands Award. DAIA laundry detergent received the Brand Equity Award for 5 consecutive years (2002 – 2006) and MI SEDAAP instant noodles received it for 2 consecutive years (2007 – 2008). The brands’ success and impressive market share are the result of earning the trust of consumers who demand top quality products, as well as the company’s relentless efforts to mount exciting promotions as shown here.

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PROFIT FROM OUR CONTESTS

From September 1 until November 30, 2009, consumers will be rushing to buy DAIA products in order to join the “Decorate DAIA & Win Contest.” Make sure you are well stocked with DAIA products when consumers come for them.

Contest Mechanics

To win, consumers need to collect 10 points from cut-out DAIA barcodes on packaging. Next, decorate DAIA’S logo creatively and complete the slogan. After that they will send their entries to the given address that is listed in the contest form.

Contest forms can be obtained from leading stores, newspapers and magazines. The barcodes can be found in all of DAIA products such as DAIA Powder Detergent, DAIA Bar Detergent, DAIA Liquid Detergent, DAIA Super Low Suds, DAIA Fabric Softener, DAIA Floor Cleaner and DAIA Stain Killa.

This contest is separated into 3 rounds. Round 1 (01/09/09 to 30/09/09), Round 2 (01/10/09 to 31/10/09), Round 3 (01/11/09 to 30/11/09)

* Terms and conditions apply** The prizes above are for display purpose only


For orders and enquiries, please contactGENTLE SUPREME SDN BHD

Tel: (03) 8023 1489; Fax: (03) 8023 7389

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MI SEDAAP will be having a contest, which will run from October 5, 2009 until February 4, 2010. Be sure to stock up on MI SEDAAP instant noodles, as consumers will want to buy the products in time to join the Jom “Click” Bersama MI SEDAAP contest. Contest entry form is provided inside each MI SEDAAP pack of di fferent f lavours and can be found at al l hypermarkets, convenience stores and provision stores.

Contest MechanicsThis contest has 4 rounds. Participants just have to follow 4 simple steps.

1. Name one of the MI SEDAAP flavours.2. Attached a 4R size photo of you and MI SEDAAP

(cooked or non-cook) posing in a creative way.3. with not more than 20 words, give an interesting

caption based on your creative photo.4. Send in your entry to the given address. Each entry

must be attached with 3 empty packs of different flavours.

* Terms and conditions apply.

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Since its inception in 1988, Runcit Media Sdn Bhd (RMSB) has established itself as the traditional trade media specialist. Today, the company is expanding its services by providing a comprehensive suite of integrated services to help you extend your reach in this highly potential trade channel. Apart from its Structured Ambient Media (STRAM), In-Store Point of Purchase (InPOP), RUNCIT MALAYSIA magazine and customised services, RMSB provides non-biased trade insights that complement your sales strategies for a more effective decision-making. The insights are gathered through two methods: Observation Check and Feedback.

OUR EYES AND EARS IN THE TRADITIONAL TRADE

Runcit Media Sdn Bhd’s Useful Insights For Your Business

The INTERMEC CN2B

Runcit Operations Sales System (ROSS)

A customised system from Grand Flo Manage Sales that is used by RMSB to meet the following objectives:

• Data collection for Observation Check as it includes data capturing and analysis. The collection process that allows for fast and timely processing that results in reliable information.

• Critical path analysis for the automation of its field force. ROSS enables route tracking and KPI monitoring. It increases the team’s efficiency as it ensures that the tasks given are carried out.

ROSS utilises INTERMEC CN2B, a device that has the following features:

• Small (pocket-sized), ruggedized handheld unit.

• Comes with built-in WiFi and linear imaging technology that reads 1-dimensional barcodes.

• Strong and durable (survived Drop Survival Test from 3 feet to steel or concrete).

• Completely sealed from dirt, dust and splashing water.

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OBSERVATION CHECK

Insights from the Observation Check is gathered by RMSB’s team of Field Supervisors (FS) who make regular rounds in traditional trade outlets. The information are then compiled to form data that are ready for clients’ use. Through ROSS, the FS collect four types of insights:

1. Product AvailabilityInformation ranging from the frequency of SKUs or brands from one manufacturer to a comparison with competitors can be gathered through the Observation Check.

2. PriceRMSB can also provide information on clients’ product prices. Clients will get to make comparison of price range of different SKUs, from lowest to highest and the most common in shops.

3. FacingsInsights on facings are gathered by the FS who will go to shops and run manual check by counting the number of facings of products.

4. Sales OfftakeInsights on sales offtake are collected through two stages. The first stage is done during stock collection where the FS will record the number of products brought into a shop and compare it with suppliers’ invoices. A month later, the FS will conduct the second stage where they record stock closing and compare them with records of purchases.

FEEDBACK

RMSB Insights also consist of Feedback that is gathered either by the FS through over-the-counter interviews or through the RUNCIT MALAYSIA magazine. The feedback is collected for two purposes:

1. To be presented in the RUNCIT MALAYSIA magazine.This is done with regard to certain industry topics or other topics concerning retailers that may also be useful to manufacturers. The questionnaire forms may either be inserted in the magazine where retailers can post their feedback or are handed to FS internally so they can go to selected shops and get retailers’ feedback. It will then be compiled and published in the magazine in the form of charts or articles.

2. To be given to clients upon requests.RMSB can also provide retailers’ feedback based on clients’ requirements. It may be on topics like retailers’ views on their promotions, campaigns or new products. The feedback will then be compiled and presented to the respective clients.

For further enquiries, please contact:Ms Elenie Tan

Client Service HeadRuncit Media Sdn Bhd

Suite 12.01, 12th Floor, Menara Merais, No 1, Jalan 19/346300 Petaling Jaya, Selangor

Tel: (03) 7957 1718; Website: www.runcit.com.my; Email: [email protected]

Samples of feedback & survey form in RUNCIT MALAYSIA Samples of findings from the Observation Check



EXCELLENCE IN QUALITY

Mention mineral water and consumers will think of SPRITZER. It has been Malaysia’s No.1 bottled mineral water brand for 20 years (source: The Nielsen Company, within bottled water value % share market). It is also the only mineral water brand recognised by the US Food & Drug Administration (FDA). This year we celebrate the 20th Anniversary of SPRITZER brand.

Outstanding Achievements

Spritzer Berhad started in 1989 as a small set-up in Taiping, Perak. It has since expanded into becoming the biggest water manufacturing factory in the country, covering 295 acres, surrounded by lush greenery and away from pollution.

The company’s foundation for success is its commitment to produce quality bottled mineral water. With a vision of being recognised and respected as the premier and best bottled mineral water producer, it adopts a stringent process where each step is closely monitored. Its production lines are completely automated and equipped with state-of-the-art bottling technologies. From the source to the bottle, the whole process is untouched by hand. In 2007, Spritzer Berhad won the Frost & Sullivan Industrial Technologies Awards for Market Leadership in Bottled Water Markets (Malaysia and Singapore) category. It also won the 6th Asia Pacific International Entrepreneur Excellence Award 2007 in the category of Excellence Brand and Excellence Leadership and is the long-term partner as the official water sponsor for Olympic Council of Malaysia (OCM).

In 2008, SPRITZER mineral water was recognized by the International Taste and Quality Institute (iTQi) Brussels, Belgium in the Superior Taste category. The company went on to also win the SMEs Recognition Award 2008 in the SME Achievers category. One of the greatest achievements so far was winning the Reader’s Digest Trusted Brand Awards – Platinum category for 10 consecutive years (1999 to 2008).

The Spritzer Group of Companies will continue to invest in brand building programmes and other marketing initiatives. It intends to defend its stronghold in traditional trade besides expanding its modern trade channels.

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“My No. 1 Moment” Photo Contest

“My No. 1 Moment” Photo Contest will run from October 15 until November 18, 2009, as a way to celebrate SPRIT-ZER’S 20th Anniversary. So, be sure to stock up right away.

Contest Mechanics

1) Consumers are required to send in their “My No. 1 Moment” photo (eg: my graduation, my 1st baby, my 1st car, my wedding & etc).

2) Submissions need to be made by email to [email protected] with THREE 600ml label codes or ONE 1500ml label code.

3) The judges will shortlist 4 of the best photos weekly.

4) Please log on to www.spritzer.com.my for more info

*Terms and conditions apply.

Prizes

20 x HP ProBookworth RM50,000 will be given out within the span of 5 weeks.

For orders or enquiries, please contactSPRITZER BERHAD

Tel: (05) 801 2663; Toll-Free Line: 1800 883 111; Fax: (05) 801 2118; Website: www.spritzer.com.my



http://www.spritzer.com.my





We are coming to the end of the year and we wish you well. While you need to end 2009 on a positive note, you also need to ensure that you have a great start for the new financial year! It is also time to take stock of your mistakes and ensure that they are not repeated in 2010. Since the economy is picking up and is predicted to improve further during the fourth quarter, we hope you will capitalize on this to bring in the much-needed sales!

Be mindful of your operating expenses as running a business is not only about hitting the top line, but also to watch out for your bottom line as it determines your profitability. Having said that, we are disappointed to note that many retailers are saddled with a lot of

unrecoverable bad debts! For those of you who are still selling on a credit basis, please stop it immediately. Your new transaction policy for the new year should be to sell on a 100% cash basis, regardless of whether they are your loyal shoppers or not. If you need to extend credit, consider accepting credit cards. At least, the payments are assured although you may have to pay a marginal fee to cover the merchant discount rate.

Another area that will influence your sales is the availability of your stocks. Stock the right type of goods to cater for your clientele base. We have recently encountered many outlets with a high frequency of stock out situation. It was then revealed that the cutback in the inventory was primarily due to the economic slowdown in the beginning of 2009! The sad part is shoppers will formulate a very bad impression on this and go elsewhere to shop. You are not wrong to keep a low inventory. However, when the basic things like bread and biscuits are grossly under-stocked, you could send out the wrong signals to shoppers. This is very important, what more with the continuation of the price slashing strategy by the hypermarkets.

These two key areas, effective bad debt management and keeping the right inventory, are not to be taken lightly. If you exercise greater caution, you will have something to cheer about at the end of the year. We hope that you will take heed of our advice and see the marked transformation in your business.

All the best!

PAK RUNCIT

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LEARN FROM YOUR MISTAKES


BAR CODING SYSTEM

What is the advantage of using bar coding system when the traditional way is faster, especially when there are many shoppers waiting at the check-out counter. Doesn’t bar coding require extra staff and more work?

P/M Sinda - Sungai Ara, Pulau Pinang

Bar coding system is the obvious choice when your business transactions have increased tremendously. It helps to speed up your overall operations, besides improving the productivity and efficiency levels. As your business grows, the number of items will also increase to enable you to cater for a wider clientele base which makes it absolutely essential for you to have a tight control over your stocks!

You should know that most modern trade outlets are currently using this system. Contrary to your belief, it will not slowdown the traffic at the check-out counter but helps to ease off the congestion instead. The initial set-up may be tedious, as you have to ensure that all products come with a bar code. For items which are not bar coded, you will have to make sure that the suppliers comply with this ruling. Generally, most products are bar coded, unless the suppliers want to risk losing the sale, as modern trade outlets will reject the goods, if they do not conform to this requirement. Some of the benefits from the bar coding system are as follows:

1. Since it is linked to the cash register, all payments can be centralized. Thus, only one person is needed to handle the cash collections. This will help to minimize any discrepancies.

2. Every transaction is captured to give you more effective control in terms of stock holding. You can tell just by looking at the report, when a particular item is running low to minimize your stock- out situation.

3. You can easily match the total collections in the cash register with the total transactions which will speed up your reconciliation exercise.

4. It helps to fast track the annual stocktaking exercise and saves a lot of time in identifying and resolving any discrepancies.

5. It also helps to minimise stock loss or shortages as corrective action can be taken immediately, without waiting to go through the annual stocktaking exercise!

If your business is sizeable enough, this system it is undoubtedly a worthwhile investment. We hope you are in a much better position to decide whether or not to proceed with the implementation of the bar coding system. We wish you every success.

SELF-MADE POSTER

Is it wrong to make my own poster to drive sales? For example, if I put a picture of a celebrity next to a DUMEX product to show that she likes it?

K/R Haji Othman Talib - Selama, Perak

To come up with your own posters to drive sales is a very ingenious idea. However, there are limitations as to what you can do. As long as the posters are in the form of words to highlight or to announce a special offer, it is alright, but not when the picture of a celebrity is featured, without getting the clearance to do so!

This comes under the copyright law in which a defaulter could be fined or taken to court for not complying to requirements! When a celebrity is used in any form, be it in a poster, radio or TV commercial, the advertiser will first have to get clearance ie a fee has to be paid. Just like the in-house music that is being played for the listening and shopping pleasure of shoppers, it also comes under the copyright law, as long as it is for commercial use.

It is always good to dress up your shop with posters in order to attract the crowd. You can get them from suppliers whom we are sure, will only be too willing to assist. After all, it is for their benefit, in boosting up their sales and enhances the display and merchandising standards of their products! Best of luck!

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OWN PACKAGING LABEL

I sell snacks like peanuts and crackers that I pack by myself. Do I need to label the packs? If so, what are the details that should be on label?

Setor Mariyam - Batu Caves, Selangor

If you strictly follow the label law, any product that is offered for sale or commercially marketed and distributed must comply with the following:

1. The net weight of the product must be stated.

2. The description of contents must be featured, depending on the nature of the product, usually with the ingredients and specifications.

3. The name and address of the importer/distributor/manufacturer or packer must be indicated.

To get a better idea of the above guidelines, all you need to do is examine some of the branded products that you are currently selling. During our rounds in the trade, there are still a lot of in-house pre-packed products that do not follow this ruling. This is considered flouting the law, if the enforcement officers happen to visit your outlet!

In the case of peanuts and crackers which are pre-packed in small quantities and offered for sale only in your shop, it could be exempted from this ruling. However, we would suggest that you check with the approving authority, if such product offering is permitted on a long-term basis. In business, no matter what we do, it is always recommended to conform and comply with the law at all times. All the best!

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Share your stories with other retailers here! Call Ms Chua Soah Sen at (03) 7957 1718 or tell our friendly Field Supervisors (FS) about it.

MORNING MARKET

I realised that the nearest market is located about 10km from my shop. Understanding my shoppers’ needs, I set up a small morning market in front of my shop. Every weekday from 9am to 11am, I sell fresh vegetables in the market. Besides that, I also have a “Special Offer Hour” that highlights certain items for an hour from Friday to Sunday. The morning market is a success and has attracted new shoppers despite the presence of competing supermarkets in the same area.

Name: Pathmanathan Name of Shop: Pasaraya Jaya GadingTown: Kuantan, PahangFS: Mohd Rodi Mohd Nor

HANDPHONE BOOTH AND SNACK STALL

After visiting a shopping complex, I noticed the convenience that could be offered to shoppers when both handphone booth and snack stall are placed together under the same roof. This gave me the idea to set up my own handphone booth and snack stall as there was potential demand. At my handphone booth, I do not only sell handphones but its accessories as well. For my snack stall, I sell wafers and ice creams. My shoppers, especially teenagers and children have responded very well to these initiatives.

Name: Mohd Zuki bin MahassanName of Shop: Pasaraya Pantai JohorTown: Alor Setar, KedahFS: Mohd Rodi Mohd Nor

FRESH HAINANESE BREAD AND ANTIQUE PHONES

I own a Chinese Medical Hall and in this business, it is important for me to constantly be ahead of my competitors. Therefore, I decided to offer products that my shoppers are interested in. Every Mondays, Wednesdays and Fridays, I would sell freshly baked Hainanese breads at reasonable

prices. Although the profit margin is low, it helped to generate more shoppers. Apart from this, I also sell good quality and reasonable priced antique phones which are imported from China. Both products attracted many shoppers as very few competitors around my area offer fresh bread and quality antique phones.

Name: Kenny LeowName of Shop: Pasaraya JimatkuTown: Selayang, Selangor FS: Low Yew Chai

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EXPANDING YOUR BUSINESS

Due to the current economic downturn, retailers took the initiatives to attract more shoppers to their shops. This issue, we feature stories that highlight some of the innovative steps taken by retailers to expand their business, products and services.


“BUY AND WIN” CONTEST AND MUSHROOM PLANTATION

Each year, I would have promotions in conjunction with my shop’s annual anniversary. This year was my shop’s 10th year annual anniversary. I celebrated the occasion by rewarding my shoppers with a “Buy And Win” contest. Not only did this increase my sales, it also attracted new shoppers to my shop. Besides having promotions and contests in my shop, I also have my own grey oyster mushroom plantation. When the mushrooms are well grown, I harvest them. The mushrooms are then sold at markets and to food shops around my area.

Name: Shaharil Bin ShafieName of Shop: Kedai Serbaneka PE CeriaTown: Parit Buntar PerakFS: Seaw Sek Chuan

PRODUCING HOME BRANDS

After inheriting my father’s shop in 1999, I decided to grow the business by selling my products on a van. This allows me to travel within regions and gain more customers. A year later, my business became so successful that I managed to buy a shop lot. Six years later, from one shop lot, I expanded to three shop lots. Besides managing my shop, my

siblings and I also have a factory named ABCD Enterprise. We produce our home brands of oil and salt. In the future, I plan on producing my own brands of chilli and soy sauces too.

Name: Mohd Riduan Solehan Bin Abu BakarShop: ABCD EnterpriseTown: Pasir Puteh, KelantanFS: Nor Shahrizal B. Mad Sani

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THE JOURNEY WELL PLANNEDManagement skills, the key factor to MO-ET’s success

Name: Mohidir Bin AminShop Name: MO-ET Mini MarketStarted Business: 1992Motto: “Wise decisions are made in calm situations.”

From a humble beginning as a traditional retail outlet, MO-ET mini market has evolved over the years. Today, it has grown into an organisation that also ventures into other businesses. Mohidir Bin Amin shares his knowledge and key factors that have led to his success.

Not to be Left Out

Started his business in 1992, Mohidir has come a long way with 18 years of experience. “What kick started me to open my own shop was my observation of my surroundings. I was amazed at how the Chinese expanded their business into something huge.” said this 35 year-old entrepreneur. Even

though he lacks knowledge of the business, he decided not to be left out as he could foresee the opportunities and aims to make it a success.

Start of the Climb

Every successful business has its ups and downs. MO-ET mini market is no exception either. “I was quite scared when I first started as business was quite slow but thankfully, things improved over the years.” said Mohidir. Challenges are common in the business world. He has to overcome both business and personal challenges. When Mohidir first started, not only did he have difficulty in stock management but also gaining the trust of suppliers and shoppers.

Keeping consistency and commitment were other challenges faced by him. “We are talking about long term business deals. For suppliers and shoppers, they look into issues such as your consistency and commitment towards them,” he said. Mohidir believes that once he gains the people’s trust, then they are confident in business dealings with him.

Management Skills Matters!

“Many people talk about vision, knowledge and passion. Only few looked into management skills. How you manage your business affects your outcome greatly. Any country or any business, failure or success depends on management skills,” said Mohidir.

He continued: “Manage ourselves first! We start with passion to achieve our vision. Uncontrollable passion is dangerous and could get you into trouble such as going against business ethics. Then only can you proceed to manage your team. It takes time and dedication to train someone to be confident in making the right decision for the company,” he said.

Mohidir enjoys analysing case studies of global and local current issues. From there, he explores the causes of failure and success. “Management also involves handling data or facts that you have. Understanding ofconsumer habits is useful for business planning,” he quoted.

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RUNCIT MALAYSIA MAGAZINE ISSUE 18WIRA RUNCIT

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MO-ET Management Tips

1. Practise teamwork.2. Set realistic goals. 3. Incorporate management ethics as part of your daily life.4. Utilise related data and facts that can assist in making decisions.5. Have a strategic plan for your business for at least three years.

Always Growing

Over the years, Mohidir has refined his business and management skills. He said that although everyone has a vision but many failed because they set unrealistic goals to achieve it. The secret to his success is the dedicated discipline towards himself and his work. Look towards the future and practise strong business ethics. “Do not conform yourself with others but think out of the box. Try to cater shoppers’ needs during good times and bad times.” he said.

Being in the business has given Mohidir a solid foundation that prepares him to venture into other business. However, he stressed that when operating a business, one must always be sincere, honest, optimistic and constantly improving oneself.

RUNCIT MALAYSIA MAGAZINE ISSUE 18JALAN-JALAN RUNCIT

Who would have though that Batu Pahat has so many attractive places to visit! Without wasting any time, we took the opportunity to explore around the town. Whenever you are here, be sure to visit these interesting places:

• Dataran PengaramSiamese troops that once invaded Batu Pahat chiselled rocks at a nearby village for fresh water. Because of this, Batu Pahat landmark portrays a hammer, chisel and stone.

• Pantai Minyak BekuLook out for the famous water well near the seaside. According to the locals, the name “Batu Pahat” originated from this well. Don’t forget to enjoy the sea breeze and the lighthouse view.

• Jalan Rugayah’s Night MarketTake a walk in Batu Pahat’s night market. There are a variety of stalls selling clothes, toys, foods and even shoes.

• Jalan PengaramLooking for textile and gold? This is the street for you. These colonial shop houses are famous for selling arrays of textile goods and gold.

• Batu Pahat’s 100 year-old TreeBe sure to get your camera ready as you go along Jalan Rahmat. A 100 year-old tree is planted in the town’s main roundabout.

A Local BlendAfter exploring Batu Pahat, we took a rest in Rengit Coffee cafe. This place is famous for its coffee. Their coffee is planted, harvested, roasted and brew locally. According to the owner, many customers enjoy the many varieties of coffee, other beverages and food it has to offer. Customers can even buy its freshly grind coffee that is sold in the café itself.

Outlet Locations• No. 6-10, Jalan Keembong, Taman Rengit, 83100 Rengit, Batu Pahat, Johor, Malaysia. Tel: (07)

424 2241, (07) 424 2188• No. 114, Jalan Sultanah, Batu Pahat, Johor, Malaysia. Tel: (07) 433 5139• Lot 5, Carrefour Batu Pahat. Tel: (07) 433 5132• G 62 & 63, Batu Pahat Mall. Tel: (07) 433 5166

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BATU PAHAT

Many Attractions In One Small Town



CONTROL CHOLESTEROL LEVEL

Stay Away from Heart Disease

Surely most of you have seen, read or heard of health campaigns that encourage us to control our cholesterol levels. Cholesterol is a substance that helps the body produce Vitamin D & some hormones, build cell walls and create bile salts for fat digestion. It is produced by the liver but can also be found in certain foods like meat, eggs and dairy products. So why do we need to control the level, you ask?

Good Cholesterol, Bad Cholesterol?

Bad cholesterol is known as Low-Density Lipoprotein (LDL). It increases the risks of coronary heart disease as LDL build-up may clog blood vessels that supply blood to the heart and cause stroke if it clogs the blood vessels that carry blood

to the brain. On the other hand, good cholesterol is called High-Density Lipoprotein (HDL). It helps to carry cholesterol from the blood vessels to the liver and reduce the risk of heart disease.

How To Control?

• Reduce or better yet, quit smoking and avoid second-hand smoke.• Achieve and maintain healthy body weight.• Take foods like wholegrain bread & cereals, brown rice, vegetables, fruits, lean meats & poultry, oily fish and

reduced fat dairy products. Also, try taking vegetable protein like tofu and nuts as alternatives to meat once in a while.

• Limit cholesterol-rich foods including offal and egg yolks.• Consume plant sterol enriched foods.

Did You Know?

Plant sterols or phytosterols are naturally occurring parts of plants found in vegetable and nuts, legumes, grains and cereals. Studies shown that an intake of 1.2g plant sterols in 30 days can lower LDL level in blood until up to 7%* as they lessen absorption of cholesterol into the body. Consuming foods with added plant sterols like milk (for example, Nestle OMEGA PLUS ACTICOL with added plant sterols) everyday may lower your cholesterol level.

*Thomson AB et al Eur J Clin Nutr 2004; 58: 860-870

With Tracy LewCorporate Nutrition AdvisorNestle Products Sdn Bhd

For more information, call Nestle Toll Free Line at 1 800 88 3433

Article in collaboration

GAYA HIDUP

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