introduction

One of Malaysia’s largest retail giant faces a major issue: Decreasing basket size & value, due to a number of factors including shifting consumer trends, the introduction of a new privileged competition, governmental regulations, and certain licensing limitations.

The General Retail industry is a tough one to crack: Consumers are often looking for better prices, greater value & more convenience. Loyalty to a particular brand is nothing without any of the above, and it’s not guaranteed.

With tightening government regulations and the introduction of GST (Goods & Services Tax) in Malaysia, the general population become more increasingly aware about their spending – Often citing price increases as one of the major factors in determining the size of their checkout basket.

General retailers often work in very thin margins for the products they carry on their shelves. For discount retailing, it’s often about sheer volume. Pricing & promotions play an extremely important role in the ecosystem, apart from location & stock availability.

Consumers today are smarter, and old tactics die hard. The Loss Leader Pricing Strategy for example, isn’t an effective way to increase volume and basket size any further. The days of losing cents on a tin of Milo for the possibility of purchasing a mug at handsome profits are long gone.

Overseas, many traditional brick & mortar retailers use the Internet as a platform for marketing, some online commerce. In the situation of this company, the supply chain needs a complete revamp before eCommerce can come into the picture. However, this didn’t deter us from getting a traditional business online.

The Situation

Marketify was introduce to a host of fundamental problems during the project initiation: Non-existent web infrastructure, a number of advertising agencies that took our client for a ride, disorganised operational procedures & workflows, lack of direction in the digital department, a mountain of spending on unnecessary web assets and the list goes on.

Our challenge was to come up with a number of activities where we will re-organise existing workflows and assets, give a clear direction on the Digital department, reclaim assets that were wrongfully taken away by 3rd party companies and further influence the consumption of promotional messages on the consumer level. 

By creating a stable & efficient foundation to work upon, the digital team will be able to further contribute to the overall goal: Basket size.

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THE BRIEF

The goal that was given to us was “Consumption” and “Loyalty”. Our job was to ensure that our existing visitors consume larger amounts of information from the website, and that they are constantly informed about the latest promotions that are happening.

We were also tasked to ensure that we reach out to a broader audience – This includes targeting users that are in the suburbs, at specific areas or towns that are not as developed as the central cities.

Our client realises that Brand Loyalty for discount retailing is only as good as Price and Convenience, hence it is crucial that we push information out there to people to consume as much as possible.

OUR APPROACH

Marketify approached the situation by laying a proper foundation for the client – A clear direction, measurable metrics, securing all web assets, synchronising offline to online and vice versa activities, standardisation of workflows and reporting.

Our results after 2 years of laying the right foundation has worked well for the client: A very clear view of what the Digital department’s contribution to the ecosystem, reduced web infrastructural costs, a very strong database growth of almost 1,000% jump from the original number, consistently.

Through some rigorous data engineering works, Marketify was also able to send targeted mailer campaigns to based on interest, purchase patterns & activities.