School of Business and Communication

Diploma in Business (DIB)

E-COMMERCE THEORY AND

APPLICATION
ICT2107
Semester January 2020
ASSIGNMENT ONE
E-COMMERCE BUSINESS PLAN

……………………………………………......

Marks /100

GROUP MEMBERS:
Student Name Student ID
Chea Eu Rich J18027337
Kau Suet Yi J18026780
Miow Yoke Tein J18027143
Ong Shuet Hui J18027514
Teh Siuk Quin J18027894

Tutorial Group: DB4

Course Lecturer: Mohd Norhazli Bin Mohamed Azlanudin
 Table of Content

Index Content Page

1 Table of Content i

2 1.0: Executive Summary 1-2

3 2.0: Company Description 3-5

3.0: Market Analysis 6-10

➢ 3.1: Industry Overview 6
➢ 3.2: Overall Market Interpretation, Segmentation & Needs 6-7
4
➢ 3.3: Target Market Segmentation Strategy 7-8
➢ 3.4: Competitors Analysis 9
➢ 3.5: Google Trend Analysis – Competitors 9-10
4.0: Operational Plan 10-12
5 ➢ 4.1: Order/Request Processes 11
➢ 4.2: Operational Management 12
5.0: Organization & Management 13
6
➢ 5.1: Job Descriptions 14
7 6.0: Products & Services 15-23

7.0: Product Positioning 24-26

8 ➢ 7.1: Overview 24-25
➢ 7.2: Comparisons with the Industry 26
9 8.0: SWOT Analysis 27

10 9.0: Marketing & Sales 28-30

11 10.0: Target Consumers 31-32

12 11.0: Potential Issues 33

13 12.0: Proposed Solutions 34

14 13.0: Financial Projections 35

15 14.0: Operational Cost (Budget Development) 36

16 15.0: Business Progress (Gantt Chart) 37-38

Page | i
1.0: Executive Summary

Being a successful establishment in Japan, FamilyMart is known to be the second largest

convenience store brand worldwide. Since its establishment in 2015, FamilyMart Malaysia
has been a preferred choice of convenience store among consumers where it emphasizes on
customer service excellence. The company has changed the overall perspective and
experience of convenience stores in Malaysia through the introduction and emphasis of fresh
foods, and ready-to-eat meals, as well as bringing the exposure of Japanese culture-based
and store concept to the Malaysian market.

With this business proposal for the e-commerce store of FamilyMart Malaysia, the company
strives to integrate with the technological trend of Industrial Revolution 4.0 (IR4.0) by
evolving into a click-and-mortar company. Hence, consumers would be given enhanced
convenience and speed in acquisition of a typical convenience store product through the use of
this online digital feature.

As an introduction to the market, the e-commerce store would be aggressively promoted

through various channels such as through the physical stores, social media, retargeting
advertisements, and many more.

In pursue to the current market trends, the e-commerce store of FamilyMart Malaysia have
analyzed the market demands through various researches for integration in a convenience store
perspective. Prioritizing to serve substantial market segments, this online digital feature is
currently made available in regions where a large population with similar characteristics
aligning of those with the e-commerce store of FamilyMart Malaysia resides. In the foreseen
future, expansions would be done in response to serve the greater wants of the market as
well as generating value and profitability for the sustainability of investors, executives, and
shareholders relations.

With awareness of competitions towards the trend, FamilyMart Malaysia strategizes to be

closely attentive to the market trends primarily through social media. Accordingly, additions
and changes would be actively implemented towards the products offered in the e-commerce
store. As a company-consumer sustainability measure, FamilyMart Malaysia would be
frequently engaged with consumers on promotional efforts through social media marketing,
email marketing, and many more.

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Despite being a click-and-mortar company, store location remains as an important aspect in
supporting the e-commerce store. The current brick-and-mortar stores act as a bridge that
connects the supply chain between the processing factory and the customers.

Apart from that, unforeseen issues such as server crashes along with consumers’ tendency of
demanding refunds tend to arise during the operations of the e-commerce stores. In response
to these issues, critical solutions have been strategized to be integrated as a code-of-
conduct by FamilyMart Malaysia. This includes establishing ties with reliable website hosts
as well as conducting occasional maintenance.

Based on a reliable estimation, it is forecasted that the annual net profit margin would show an
increase of approximately 15% to 30% from the introduction of the e-commerce store in 2020.
Revenues as well as costs are expected to increase marginally in the coming years where greater
efforts and strategies would be implemented to remain competitive in the increasingly
competitive market.

As accordingly, the various strengths identified in the e-commerce of FamilyMart Malaysia

have the potential of opening opportunities such as gaining higher volume of sales, and
reduction in costs by supporting the inventory management. Hence, they would be utilized as
competitive advantages over the various competitions present in Malaysia.

Page | 2
2.0: Company Description

Overview

Figure 1: FamilyMart Malaysia Official Logo

Founded in the city of Sayama, Japan on September 1973, FamilyMart Co. Ltd. is a
convenience store brand incorporated by Seiyu Group and currently headquartered in Tokyo,
Japan. Through its worldwide establishment concentrated in the Asia region such as Thailand,
Indonesia, Vietnam, Malaysia, and many more, FamilyMart Co. Ltd. is known to be the 2nd
largest convenience store operator in the world with over 24,000 stores.

The name, FamilyMart, indicates the familial relationship that values growth and support
among its customers, employees, and stakeholders. Pioneering the convenience store industry,
FamilyMart strives to offer quality products and services that captures the everyday lifestyle
needs of its customers, in adherence with its focus towards a fresh and fun experience for its
consumers.

Figure 2: FamilyMart Malaysia’s First Store Figure 3: FamilyMart Malaysia’s First-day

Opening Customers

FamilyMart Malaysia began its operations on November 2016, where its first store is located
in Bukit Bintang, Kuala Lumpur. The franchise is currently owned by QL Resources Bhd. and
Maxincome Resources Sdn. Bhd. Since its establishment, there are currently 174 stores in
operation, where they are opened 24-hours daily.

Page | 3
Market Offerings

Figure 4: Fresh-food Range of FamilyMart Malaysia’s Market Offerings

Striving to implement a Japanese culture-based convenience store concept, or “Konbini”,

FamilyMart is known to be the first convenience store brand in Malaysia to offer fresh foods
to the market. Being the main attraction of consumers, the above 4 types of market offerings
has become one of its success factors despite the competitive macroenvironment in Malaysia
due to the alignment with the consumers’ wants and demands from a convenience store
perspective.

Other attractions include offering a relaxing ambience, lounges, ready-to-eat meals, and many
more that attracts the target market as researched on Page 6 to 8. Along with its services offered
as seen on Page 25 and 26, FamilyMart Malaysia has gained competitive advantage to be in
par with large industry players as analysed in Page 8 and 9.

FamilyMart’s e-commerce store is made available to deliver the experience of “Konbini”

equivalent to its brick-and-mortar stores while complementing high convenience and
accessibilities to Malaysian consumers in reaching the products and services offered.

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Missions & Values

FamilyMart strives on achieving its missions through the values held that will underpin the
Company’s growth on going forward as stated in the following statements:

1. FamilyMart is a network of small local stores. Each store lives with and owes its existence
to the people who live in the neighborhood. We will work earnestly to become a store that is
rooted closely and evolves as an integral part of the local community.

2. We will do our best to meet the needs of each customer who visits our stores. Our stores
will provide what the customers want, furthermore, discovery of exciting and high quality
products. By doing so, the stores will be a place where people will stop by anytime.

3. We will foster close ties with business partners like a family running a small local store. We
want customers to feel part of the neighborhood family. We will continue innovating towards
comfortable lifestyle which will contribute not only to convenience but also to the wellness of
everyone. We will commit to the pursuit of happiness of the “Family”.

As a whole, the following corporate message summarizes the above statements:

“FamilyMart, Where You Are One of the Family”

Page | 5
3.0: Market Analysis

3.1: Industry Overview

The convenience store industry remains as a sustainable

industry in Malaysia where enhancements are constantly being
integrated that contributes towards fulfilling the market needs.
One of these enhancements include integrating each store with
online digital features accessible through the Internet and
mobile applications relevant to IR4.0 that provides benefits to
its customers, in terms of earning rewards, gaining privileges,
Figure 5: Use of Online as well as experiencing greater convenience.
Digital Application

Apart from that, convenience stores today remain competitive by expanding their range of
products and services offered to the market such as fresh foods, ready-to-eat (RTE) meals,
imported fast-moving consumer goods (FMCG) while ensuring high accessibility to the market
through constant store expansion and the usage of e-commerce stores in Malaysia.

3.2: Overall Market Interpretation, Segmentation & Needs

Chart 1: Malaysia Population by State Chart 2: Malaysia Population by Gender & Age

In terms of geographic segmentation, the population in West Malaysia is highly concentrated

in Selangor (Klang Valley), followed by Johor, Penang, and Malacca as indicated in Chart 1.

Page | 6
According to Chart 2 above, Millennials and Generation Z, consisting of working adults,
teenagers, adolescent, and below, are among the highly populated age groups in Malaysia. In
terms of behaviour and personality, they are known to be adaptive and well-versed with
technological advancements. Furthermore, these age groups tend to be concerned of their
personal image and are very likely to spend money on upkeeping it.

Moreover, as research suggests, Malaysians have high affinity and adaptation towards
experiencing International exposures such as the cultures, and products. However, they tend
to spend substantial amount of time connecting with technologies rather than seeking and
gaining physical exposures. Hence, this explains their characteristics of being less physically
active, proficient in acquiring information, reliance on online reviews and ratings, and
high awareness of various brands in the market with the likelihood of trying new and
unfamiliar brands or experiences compared to adhering with usual and familiar brands or
experiences.

With the introduction of FamilyMart’s e-commerce store, it has the potential of fulfilling these
market needs. As the majority of consumers belong to the stated generation where they are
adaptive to technology and frequently uses online digital features, the e-commerce store has
the potential of directly serving these consumers not only with heightened convenience and
speed at their homes or workplace from deliveries, but also at any time and day (24/7 server
and service availability). Furthermore, the descriptions of the many products offered on the e-
commerce store are made available for consumers to view, compare, and purchase accordingly
to cater their variable wants and needs.

Moreover, FamilyMart offers a Japanese cultured-based convenience store concept which

introduces a new and unique experience to Malaysians in which it aligns with their preference
of International exposure. Therefore, this has the potential of capturing their awareness and
urge to shop at FamilyMart. In addition to the high accessibility through the e-commerce store,
these components provide a competitive advantage for FamilyMart in the industry.

3.3: Target Market Segmentation Strategy

As FamilyMart is still new in the Malaysia market along with the fact that fresh foods are
among the products offered to customers, FamilyMart strategically targets to serve highly
populated and accessible regions from the Global Positioning System (GPS) to carry out its

Page | 7
business. Serving within these regions would not only allow FamilyMart to acquire sufficient
revenue and profitability essential for expansion to serve outside of these regions but would
also gain recognition and awareness from the Malaysia market that acts as a catalyst in
their expansion process. Moreover, a close proximity with a large target market would be cost-
efficient for the delivery services provided from the e-commerce store.

Apart from that, the e-commerce store is targeted to serve all consumers of different
demographics as this is regarded as an insignificant factor towards its line of business.

Based on the features, potentials, and advantages of FamilyMart’s e-commerce store

establishment, the following table reveals the characteristics of the targeted market according
to geographical, demographical, behavioural, and psychographic segmentation strategy:

Segmentation Characteristics
➢ Urban and Suburban Areas
➢ Prioritize highly populated and accessible regions (Detectable
under GPS)
• Klang Valley (Selangor, Kuala Lumpur, Putrajaya)
Geographic • Johor
• Georgetown, Penang
• Melacca
➢ Regions with wide, stable and fast connectivity of Internet
• Low and stable latency
➢ Targeted to all age groups (Insignificant factor)
Demographic
➢ Caters all genders without any religion restrictions
➢ Seeks for indulgence in Japanese culture-based products
➢ Expects new products to be offered
➢ Demands for fast and convenient purchases
Behaviour
➢ Seeks for rewards from long-term brand loyalty
➢ Frequently utilizes online digital features
➢ Utilizes e-Wallet/cashless payments for purchases/transactions
➢ Tech-savvy in accessing online store features/benefits
➢ Prefers light and flavourful meals/snacks
➢ Comfortable in exploring diverse range of products
Psychographic ➢ Enjoys spicy, sweet, and comfort meals/snacks
➢ Seeks for fresh ready-to-eat (RTE) meals
➢ Enjoys a variety of South-East-Asia cuisines
➢ Demands for products and services at any time and day

Page | 8
3.4: Competitors Overview
7-Eleven Malaysia by 7-Eleven Malaysia Holdings Berhad

Began operations in Malaysia since the 4th of June 1984, 7-Eleven

Malaysia is currently the largest convenience store brand with over
2,411 stores nationwide as of December 2019. Among its unique
products offered include the “Slurpee” beverage, fresh baked foods,
Figure 6: 7-Eleven
Malaysia Logo along with online top-up/reload services such as “Touch ‘n Go” Reload,
“MOL Points” top-up, and many more.

MyNews by MyNews Holdings Berhad

Established in Malaysia since the 25th of December 1996, MyNews

bridges the competition gap between 7-Eleven Malaysia and
FamilyMart where it has implemented approximately 453 stores as
Figure 7: MyNews
of December 2019 in which most of them are located on the Logo
Western region of West Malaysia, such as the Klang Valley,
Melaka, Pulau Pinang, and Johor. Similar as FamilyMart, MyNews also offers Japanese-based
cuisines and products, such as sushi, sandwiches, and desserts to its customers.

3.5: Google Trend Analysis – Competitors

Chart 3: Google Trend Analysis of Selected Convenience Store Brands in Malaysia

Page | 9
The comparison chart above describes the number of Google searches performed by consumers
online involving FamilyMart, 7-Eleven, and MyNews over the period of 5 years (February
2015 to February 2020). As FamilyMart began operations in Malaysia on November 2016,
related searches about the brand began rising that immediately surpassed of those affiliated
with MyNews. On average, the amount of interest towards FamilyMart shown by consumers
online is closely in par of those towards 7-Eleven, considering the period of FamilyMart’s
inception. As time passes, the number of online searches for FamilyMart increases marginally
due to greater awareness by the market, especially in Selangor. From the statistics shown, it is
forecasted that the number of online searches for FamilyMart, on average, will exceed those
related to 7-Eleven, which is currently the top interest in most regions, by the year 2021.

In the month of November 2015, it was seen that 7-Eleven has gained substantial interest from
consumers. This was due to the launch of its nationwide promotional event in conjunction
of its annual brand anniversary for the date “7.11”. For a duration of 2 days, its “Bring Your
Own Cup” (BYOC) 2015 marketing campaign has attracted consumers by offering price
discounts to its unique “Slurpee” beverage while encouraging them to snap photos of their
purchase to be uploaded on Facebook with hashtags as participation procedures. Consequently,
7-Eleven rewards participants while gaining a sudden rise in awareness due to the short trend
from social media and hashtags. Acknowledging this, the e-commerce store of FamilyMart
may adopt similar promotional strategy as a competitive advantage against 7-Eleven.

Moreover, a sudden spike in consumers’ interest towards FamilyMart Malaysia can be seen
during mid-June 2019 and late-August 2019. According to this data, FamilyMart Malaysia was
able to attract great interest by consumers by following the market trend of “bubble tea
addiction”. The limited-time introduction of bubble tea beverages as well as milkshake
beverages respectively for each period has successfully captured major attention from
consumers in which it has prevented consumers’ brand interest from falling below its
competitors. Hence, market trends will be closely monitored for the e-commerce store to
exploit and gain competitive advantages in the market.

According to the data procured, most searches or queries related to FamilyMart made by
consumers on Google Search Engine are involved its menu or products offered. Hence, it can
be identified that the products offered by FamilyMart is the main attraction towards the
market, where the positioning strategy will be further discussed on Page 27.

Page | 10
4.0: Operational Plan
4.1: Order/Request Processes
Orders and payments
made by customers are
sent and processed by
the e-commerce
department
Store employee-in-
charge acknowledges and
confirms order received
Designated delivery
agent arrives to check
and collect the order
while confirming pick-up
A notification is sent to
the customer's email for
feedbacks and review of
the experience delivered
Chart 4: Operational Process for Regular Order Transactions
Product requests made by
customers are sent to and
processed by the e-
commerce department
Notification on product
availability is sent through
the customer's email
Chart 5: Operational Process for Product Requests
Automated verification
Notification of order is
and confirmation are
sent to the designated
done from the
store
department
Order is gathered,
Delivery agent is notified
prepared, heated (if
of the order with a given
necessary), and packaged
collection time
by the store
Integrated GPS tracks the Customer checks and
delivery route and receives products from
approximate time before the delivery agent to
arriving to the customer confirm order completion
Feedbacks and reviews
listed on the e-commerce
website are analyzed for
future improvements
Information is sent to the Product requests are
manufacturing/processing fulfilled by the relevant
and supply chain departments to be sent to
departments the designated store
Page | 11
4.2: Operational Management

Inventory
FamilyMart controls every aspect of the production ranging from farm to table, and raw
materials to ready-to-eat foods in stores to ensure food security by means of several inspection
procedures. That being said, these products are freshly made every day in its production base
where they are delivered freshly to its convenience stores. Displaying fresh products on the
shelves of each store, they are exposed to short shelf-life. As the e-commerce store is adopted,
inventories would be established according to order forecasts and requests. The inventory
would also be tracked according to each product’s unique Stock Keeping Unit (SKU) code
for identifying stock levels and forecasting demands. In future perspective, the number of
products displayed on the physical store shelves are expected to minimize due to the
adaptation and reliance towards the e-commerce store.

Supply Chain
In the light of a new era, FamilyMart is actively embracing the transformation of the supply
chain, integrated logistics, information systems, a bakery, a fresh food processing plant and
more. It has invested heavily to upgrade its e-commerce logistics supply chain and develop its
food processing facility to reinforce the foundation as a convenience store so that its customers
are able to be provided the necessary solutions. Furthermore, it provides a store pick-up
service and it is planned to transform this into a shop-to-home delivery service as shown
in Chart 4. In terms of the provision for refrigerated and frozen products delivery service,
FamilyMart Malaysia plans to collaborate with the delivery agent to support air-conditioned
deliveries in accommodating these products.

Page | 12
5.0: Organization & Management

GENERAL
MANAGER
CHEA EU RICH

FINANCE MARKETING
MANAGER MANAGER
MIOW YOKE TEIN TEH SIUK QUIN

BUDGET EVENT
ANALYST PLANNER
KAU SUET YI ONG SHUET HUI

Chart 6: FamilyMart Malaysia Organizational Chart

Page | 13
5.1: Job Description

NO JOB TITLE JOB DESCRIPTION

1. General Manager Individual who is in charge of and oversees part or all
of a company's operations and activities, including
generating revenue and controlling costs. They ensure
the organizational activities align with the company’s
missions in order to achieve its visionary goals.

2. Finance Manager Individual who responsible for the financial health of

the organization. They produce financial reports, direct
investment activities, and develop strategies and plans
for the long-term financial goals of their organization.

3. Budget Analyst Individual who assists various organizations and

businesses to organize and allocate their financial
resources by developing and executing appropriate
budgets for them relevant to the organization’s
capabilities.

4. Marketing Manager Individual who manages the marketing of a business

or product. They are responsible in planning and
engaging activities to boost the sales of several
services or products and be in charge of the life-cycle of
most products.

5. Event Planner Individual who is responsible for every aspect of event

planning. Their main duties include collaborating with
the marketing manager to arrange event services,
select venues, determine the overall cost, and monitor
the client’s approval to ensure smooth event
operations.

Page | 14
6.0 Products
6.0.1 Cafe

RM8.30 SKU: SW-0001 RM8.30 SKU: SW-0002

Page | 15
BEVERAGE HOT ICED

RM5.50 SKU: CF-0001H RM6.90 SKU: CF-0001C

RM6.50 SKU: CF-0002H RM7.90 SKU: CF-0002C

RM6.50 SKU: CF-0003H RM7.90 SKU: CF-0003C

RM7.50 SKU: CF-0004H RM8.90 SKU: CF-0004C

Page | 16
 6.0.2 Light Snacks

RM4.90

SKU: FM-BV0001 SKU: FM-BV0002 SKU: FM-BV0003 SKU: FM-BV0004

RM6.00

SKU: FM-SK0001 SKU: FM-SK0002 SKU: FM-SK0003 SKU: FM-SK0004

Page | 17
 RM4.90

SKU: ON-0001 SKU: ON-0002

RM4.90

SKU: ON-0003 SKU: ON-0004

Page | 18
6.0.3 Meal Station

RM8.90 SKU: MS02-0001 RM8.90 SKU: MS02-0002

RM7.00 SKU: MS03-0001 RM9.90 SKU: MS01-0001

Page | 19
RM4.90

SKU: MS04-0001 SKU: MS04-0002

SKU: MS04-0003 SKU: MS04-0004

Page | 20
6.0.4 Combo

5% Off Total
Individual Prices

SKU: ON-0001

Healthy
Combo

Breakfast
Combo

Page | 21
6.1 Services

NO SERVICES DETAILS
1. FAMIPAY &
FAMILOAD ✓ Customer can stay connected and purchase top-
ups for all phone and gaming needs.

✓ It can pay all the bills at once at any of Family

Mart stores.

✓ For instance, topping up mobile phone prepaid,

Touch n Go, game point such as My Card and
MOL Point.

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2. FAMICASHLESS ✓ All the Family Mart stores are equipped with
credit card terminals for easy, cashless
payments.

✓ Consumer no longer have the requirement to

carry a lot of cash.

✓ For example, Visa, MasterCard, MyDebit card,

Samsung Pay and more.

3. FAMILOUNGE ✓ Customer get comfortable at our cozy sit-in

area, equipped with USB charging docks and
toilet amenities.

Page | 23
7.0: Product Positioning

7.1: Overview

FamilyMart not only offers unique products and services to the Malaysian market, but also an
entirely new experience to consumers since its establishment. Bringing a hint of Japanese
culture as well as products from the Japanese-based convenience store concept to
Malaysia, consumers are exposed to Japanese-styled shopping experience in both contacts
with the physical store and the e-commerce store that uniquely positions FamilyMart into the
convenience store industry. This includes the code-of-conduct by FamilyMart to adhere with
unique protocols in serving and greeting consumers in a committed and polite manner, brand
integration with online digital features in response to IR4.0, and offering a wide range of
products that differentiates between the various convenience stores in Malaysia.

FamilyMart is known to be the first convenience store brand to introduce fresh foods and
ready-to-eat meals in the convenience store industry. This has positioned FamilyMart as the
pioneering convenience store brand in which it has attracted and created a need for fresh
foods and ready-to-eat meals in Malaysian consumers. Since then, competitors to the brand
began following its footsteps in introducing their range of fresh foods. Hence, the following
process is implemented for product positioning:

Step 1 Step 2 Step 3

Know your target Identify the Unique selling
audience well product features Propositions

Step 6 Step 5 Step 4

Maintain the position Ways to promote Know your
of the brand brands competitors

Chart 7: Product Positioning Process

Page | 24
The range of products offered to the market mainly comprised of Japanese-based products in
terms of fresh/ready-to-eat foods, and packaged consumer goods, where they differentiate
FamilyMart in comparison with other industry players. This includes imported Japanese
products such as snacks, powdered beverages, accessories, and many more, as well as ready-
to-eat Japanese-based cuisine such as Bento, Onigiri, Oden, ice-cream, cakes and puddings.
Catering towards Malaysians’ affinity towards International exposure, the offering of
Japanese-based products to the market in the form of convenience store sets a unique
positioning for FamilyMart to stand-out in the industry.

Not only FamilyMart concentrates on Japanese cultured products, it has also introduced a
customized range of the said products that caters for the local needs. As research suggests,
local cuisines remain as a favoritism among Malaysians. Hence, FamilyMart has introduced
local cuisines such as Dim Sum, as well as bringing new flavours to its Japanese-based
cuisines such as Tom-Yam-flavoured Oden relative to its authentic Curry-flavoured Oden.
Contingent to seasonal and consumer trends or demands, products offered to the market
would vary according to it. As such, these product strategies would position FamilyMart as a
unique convenience store brand with competitive advantages over its competitors.

Page | 25
7.2: Comparisons with the Industry

Product
FamilyMart Conventional Convenience Store
Offering
➢ Imported goods exclusively
Fast-moving/ from Japan
packaged ➢ Conventional local goods
➢ Conventional local goods
consumer
goods (FMCG) ➢ Reasonably priced based on the
market average

➢ Over 12 varieties of RTE meals

each ranging from Bento boxes,
spaghetti, and salad, with add-
on option of an egg, and heating
service
➢ Wide variety of RTE snacks
➢ Normally none or not more than
ranging from Onigiri, and
8 varieties of RTE meals
sandwiches
➢ Emphasizes more on local RTE
➢ Serves instant hot fresh foods
Ready-to-eat snacks such as curry puff,
such as Dim Sum, Oden, and
sausages, and sandwiches
goods other “street” snacks
➢ Mostly South-East-Asian
➢ Combination of both Japanese
cuisines
and South-East-Asian cuisines
➢ Offers heating services
➢ Limited-time/Seasonal
Sandwich options such as Ayam
Percik during Hari Raya
➢ Introduces new Onigiri
variations every few months
➢ Offers heating services

➢ More than 7 varieties of desserts ➢ Very few, usually not more than
ranging from freshly made ice- 5 varieties of desserts such as
Desserts
cream, chilled cakes and fresh ice-cream
sandwiches, and puddings

➢ Freshly brewed hot or cold

beverages ranging from coffee, ➢ Often serves hot coffee with
Beverages minimal selections
frappe, bubble tea, and
milkshakes

➢ More than 20 varieties of baked

goods
Freshly baked ➢ Generally comprised of
goods ➢ Comprised of unique Japanese- common local baked breads
styled and common local baked
breads

Page | 26
8.0: SWOT Analysis
Beneficial
Strengths* (S)
➢ Delivers greater convenience and
speed on checkout
➢ Higher accessibility in acquiring
product information and
comparing between them
➢ Daily 24 hours online availability
➢ Allows early order planning by
saving products in cart
Internal
Factor ➢ Tendency of impulsive purchases
➢ Able to identify purchasing habits
of consumers for marketing
analysis and research
➢ Consumers may leave impactful
positive product reviews
➢ Government initiatives in
introducing to e-wallet usage in
consumers
➢ Epidemic outbreak situation
Opportunities* (O)
➢ Encourages consumers to order
from the e-commerce store
➢ Consumers can easily make
decisions according to their needs
➢ Generates revenue at any time
➢ Order forecasts can be made for
in-store inventory management
➢ Enables greater profit margin
from boosted sales for expansion
to serve further regions and
industry growth
External
Factor ➢ Increases accuracy in creating
promotional contents that meets
the demands of customers
➢ Positive product reviews can
potentially increase attractiveness
and sales of a product
➢ Initiatives expand the E-wallet
consumer market for higher
profitability potentials
➢ Encourages consumers to order
their meals through online and
minimize outdoor interactions
during the outbreak
* Each “S” & “W” points interrelate with each “O” & “T” points respectively in sequence.
Harmful
Weaknesses* (W)
➢ Limitation of online users in
viewing and feeling actual
product and presence of delivery
costs
➢ Consumers who do not or rarely
use online digital features may be
unfamiliar with the system
➢ Catering sudden high traffic of
online users that demand for
instantaneous replies to their
inquiries at any time of the day
➢ Consumers may leave impactful
negative product reviews
➢ Digital taxation enforced on online
purchases causes rise in product
pricing
➢ Prone to server crashes/breaches
and data concerns
Threats* (T)
➢ New users of the e-commerce store
may refrain from making
purchases unless persuaded from
reliable product reviews
➢ Online profitability may be
minimal from the market segment
that are not familiarized with
online digital features
➢ Late replies to or unintentionally
neglected online consumers may
feel discontented, or deteriorate
their loyalty towards the company
➢ Negative product reviews can
potentially create brand avoidance
and decrease the sales of a product
➢ Digital taxation discourages
consumer in making purchases
➢ Deteriorates consumers’ trust
and perception on the e-commerce
store’s reliability while facing
potential losses
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9.0: Marketing & Sales

E-Commerce Store Introduction

The e-commerce store would be introduced to the market through advertising on its brick-
and-mortar stores. To further attract customers in utilizing it, limited-time promotions and
discounts would be implemented for the commencement of the e-commerce store. This is
executed by acknowledging customers through the storefront windows, in-store television,
and cashier counter. For instance, the combination of “double” points accumulation from
purchases and no delivery charges for a limited time would encourage consumers to
familiarize themselves with the e-commerce store by experiencing greater convenience in
their purchases while getting rewarded. Having consciousness that certain target market
segments are unfamiliar with online digital features, brochures that include guidelines and
benefits of the e-commerce store would be provided in each FamilyMart convenience store.

Figure 8: Example of Store-front Marketing of Proposed E-Commerce Store

Similarly, this is also done by advertising through its official social media pages. Since the
main or primary targeted audience for the e-commerce store would derive from consumers that
are well-versed with online digital features, marketing through social media websites such
as Facebook, Instagram, and Twitter along with social news sites such as WorldofBuzz, and
SAYS would be effective marketing channels to increase the virality of the opening of
FamilyMart’s e-commerce store. This is due to the current trend where most of these
consumers would browse through these media websites during their leisure period for

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entertainment, interacting with other users, acquiring information, and reading news
feeds. Furthermore, with the ease and tendency of consumers to “share” news, the awareness
of the e-commerce store can also be disseminated through the usage of “hashtags” (#) as
seen in 7-Eleven’s strategy in effectively attracting the market during its BYOC 2015
Campaign.

E-Commerce Store Sustainability

Figure 9: Creating Retargeting Advertisements through Facebook Pixel

Throughout its operations, promotional efforts, such as price discounts, “Buy 1 Free 1”
(B1F1), and free delivery, would be conducted from time-to-time to engage and maintain
the loyalty and relationship with its customers. Information regarding on this would be done
through the social media platforms as a strategic measure thanks to the ease of “sharing”
features implemented on most social media platforms. Relating to this, the use of retargeting
advertisements, such as on Facebook, has been known to significantly increase awareness
and conversion rate based on a study. Hence, online digital features such as Facebook Pixel
would be utilized to track customers’ activities and boost the number of visits or sales from
the e-commerce store.

Figure 10: Potential of Email Marketing and Social Media Marketing

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Moreover, this can also be notified to customers through email marketing. Being an essential
online feature for every individual, sending newsletters and promotions of FamilyMart’s e-
commerce store to subscribers would encourage or give customers the urge to visit the e-
commerce store according to researches. Furthermore, the e-commerce store would be
frequently updated with new products as per introduced to its current brick-and-mortar
stores in accordance to new consumer trends and seasons. Additionally, scarcity marketing
would be utilized to psychologically attract customers into buying products in terms of
informing on low stock/fast depletion stock availability, limited time free delivery and many
more.

In addition, the e-commerce store will engage with various marketing efforts in response to
the different online shopping festival trends. Due to increasing popularity with the “Double
11” festival originated from the Chinese e-commerce platforms, FamilyMart’s e-commerce
store will follow this trend by arranging massive promotions with efforts as exampled above
to greatly boost sales that leads to increased value and profitability of FamilyMart. This
also applies to other online shopping festivals such as Black Friday, and Cyber Monday sales,
as well as seasonal sales (Autumn, and Winter sales, to name a few). Besides that, related
marketing strategies will be implemented to accommodate other festivals. An example of this
includes creating unbelievable/surprising jokes during April Fool’s Day (1st of April) as a
marketing strategy to increase brand awareness as seen from Burger King’s Chocolate
Whopper post on social media.

Furthermore, product reviews have significant impact towards the sales of a product. They
are known to be one of the decisive factors in persuading a customer in purchasing a
product. Regardless of receiving positive or negative reviews on a product, proper response
to each review would be done in terms of complementing or giving assurance to rectify
issues respectively. This gesture indicates concern to the consumers in which it would
maintain their relationship with FamilyMart.

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10.0: Target Consumers

The primary consumers targeted for FamilyMart’s e-commerce store are segmented in terms
of geographic, demographic, behaviour, and psychographic segmentation. This ensures
that the e-commerce store have the potential in generating profitability and value from its
products and services by serving a measurable, accessible, substantial, differentiable, and
actionable market segment.

As the e-commerce store services are only available within the vicinity where the physical
stores are located, FamilyMart would continue expanding its stores in strategic locations
according to the size of the potential market present as well as consumer demands as shown
in Page ?. Moreover, FamilyMart convenience stores would be strategically established
moderately wide-apart due to the availability of the e-commerce store in delivering to nearby
locations. Additionally, the promotions of the e-commerce store would be engaged through the
physical stores, social media and social news feeds to reach urban and suburban
consumers.

Chart 8: Types of Products Bought by Customers in a Convenience Store

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To avoid the deterioration of consumers’ interest, the products offered will be updated
according to the market trends and demands. Based on Chart 8 and 9, the e-commerce store
will expand the range of the highly demanded products, such as snacks/drinks and coffee,
by offering more brands and flavours that are not available in the local market. Moreover,
new products will be offered to the market for a limited time not only to provide new
experiences to consumers, but also to evaluate their demands on it whether it is feasible to
be listed as a permanent offering. Based on researches, it was also found that limited time
offers have the potential of attracting customers and boosting sales by 226%. Accordingly, the
release of new products will be rotated or combined to cater the segments’ needs of Japanese
culture-based cuisines, and South-East-Asia cuisines in terms of spicy, sweet, or comforting.

Furthermore, point collection systems and gamifications would be implemented to provide

rewards and rebates to loyal consumers. Approaching the technological era, cash-on-
delivery would not be utilized. Instead, e-Wallet and credit card payments would only be
available to improve consumers’ convenience and target tech-savvy customers.

Chart 9: Reasons Consumers Prefer Online Shopping

Besides that, the services from the e-commerce store would be made available at any time of
the day to cater consumers that demand accordingly. This includes performing all-day
delivery as well as implementing a 2-layer customer service representative where
consumers’ inquiries are first assisted by an automated bot system for common inquiries
followed by a real employee of FamilyMart on the corresponding shift for unique
inquiries. In addition, the e-commerce store will also target consumers by emphasizing on
reasons shown in Chart 9 such as creating ease in comparing prices, implementation of online
sales, and many more.

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11.0: Potential Issues Forecasted

Issue 1: Returns & Refunds

As consumers are unable to physically look and feel the products through the e-commerce
platform, requests for returns and refunds on products tend to occur. Being a common but major
issue of e-commerce operations, returns and refunds may cause losses to FamilyMart in terms
of encountering additional delivery costs and time consumption, especially purchases that
are partially consumed. Moreover, this issue is known to be one of the factors that would
determine a consumer’s interest before viewing and purchasing from the e-commerce store.

Issue 2: Server Crashes

Transactions may occur at any time considering the daily 24-hours uptime of the e-commerce
store. When an unforeseen server crash occurs, customers are unable to access the e-
commerce store to view and purchase products. As a result, the e-commerce store would
face potential losses not only from the estimated orders that could have been transacted
during the downtime, but also the trust and loyalty of potential customers in the reliance
of the e-commerce store.

Issue 3: Security Breaches

The e-commerce store is responsible in storing consumers’ information such as personal and
payment data to ensure its operations, by means of checking-out processes, are performed
smoothly. However, most e-commerce stores are threatened by potential online security
breaches where sensitive information can be stolen by hackers. Among the breaches may
include brute-force attacks, where hackers attempt to access the e-commerce administrator’s
profile through inputs of every possible password combinations, trojan horses, and malwares,
where consumers’ information are stolen upon gaining access from the e-commerce
administrators’ computers and website codes respectively.

As such, these issues can be disseminated through “word-of-mouth” among consumers quickly
and extensively which could potentially affect the business of the e-commerce store if
preventive measures are not taken to resolve these issues.

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12.0: Proposed Solutions

Solution 1: Returns & Refunds

According to researches, online consumers tend to purchase when it is involved with hassle-
free return policies. Therefore, return policies would be made transparent and clear for
consumers to easily understand before making the purchase. Not only this would create
confidence in consumers, but it would also contribute towards achieving the goal of customer
service excellence whereby their satisfaction is prioritized by FamilyMart. In the view of
controlling losses from refunds, FamilyMart would establish insurance contracts with its
suppliers where goods would be compensated if they are found to be below standards.

Solution 2: Server Crashes

Data backup is an essential element to prevent data losses from unforeseen server crashes
where it can potentially affect consumers’ trust negatively. This can be done creating a backup
server through cloud backup where consumers can still access the database copy of the e-
commerce website even when the primary server is down. Additionally, the e-commerce store
would be established and supported on a reliable host that could withstand a surge of
traffic from conversion advertisements on social media, or other marketing efforts.
Nevertheless, occasional server maintenance would be done to support its sustainability.
Customers would be informed of the maintenance date and duration in advance through
emails and website notification to avoid any inconvenience experienced by consumers.

Solution 3: Security Breaches

Primarily, the e-commerce website will be adhered to Hypertext Transfer Protocol Secure
(HTTPS) where Secure Sockets Layer (SSL) certificates are equipped to further enhance
the encryption security of the website. This way, sensitive information of users can be
protected, where most internet browsers today would indicate the website as “Secure” while
instilling trust and confidence of consumers to purchase from the e-commerce website. As
the administrators’ profiles are often targeted, initiatives of enforcing strong passwords and
regular changes will be done to prevent intrusions. Apart from using Anti-Malware/Virus
software and firewalls to prevent access of untrusted networks, the e-commerce website
would avoid the storage of users’ payment information. Instead, third-party payment
processors such as Paypal, and iPay88 would be used as a measure to minimize the impact
from possible security breaches.

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13.0: Financial Projections

Company: FamilyMart Malaysia Company Business: e-Convenience Store Duration (Years): 2020 to 2024

Years
in Ringgit Malaysia (RM’000) 2020 2021 2022 2023 2024
Gross Income
a - annual revenue RM 1,079,571 RM 1,193,749 RM 1,396,952 RM 1,701,253 RM 2,147,672
- product sales

Manufactural Cost
- Raw material
b - Maintenance (RM 83,781) (RM 93,472) (RM 108,488) (RM 133,495) (RM 171,507)
- Direct labour
- Manufactural overhead
Operational Cost
c (RM 739,428) (RM 803,417) (RM 913,015) (RM 1,078,392) (RM 1,352,295)
- Refer below
Marketing Cost
d - Advertisement (RM 53,751) (RM 62,256) (RM 75,761) (RM 93,244) (RM 116,242)
- Marketing platform

e Gross Profit RM 202,611 RM 234,604 RM 299,688 RM 396,122 RM 507,628

f Tax (SST 10%) RM 20,261 RM 23,460 RM 29,969 RM 39,612 RM 50,763

g Net Income RM 182,350 RM 211,144 RM 269,719 RM 356,510 RM 456,865

h Target Net Profit RM 170,000 RM 190,000 RM 235,000 RM 325,000 RM 435,000

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14.0: Operational Cost (Budget Development)

Company: FamilyMart Malaysia Company Business: e-Convenience Store Duration: January 2020 to December 2020

in Ringgit Malaysia (RM’000) Total Cost

1. Labour RM 31,008
2. Rentals - premises RM 27,400
3. Utilities - electricity RM 2,280
4. Utilities - water RM 912
5. Utilities - waste disposal RM 5
6. Communication - internet, telephone, mails, website (maintenance/support/subscriptions) RM 30
7. Insurance RM 2,280
8. Transportation (Logistics + Distributors’ Cost) RM 270,108
9. Cost of Imported Goods RM 400,365
10. Maintenance – air conditions, refrigerators RM 45

Total Cost RM 739,428

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15.0: Business Progress (Gantt Chart)
Company: FamilyMart Malaysia Company Business: e-Convenience Store Duration (Years): 2020 to 2024
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
H: 6 months H1: First half of the year H2: Second
PROGRESS AND MISSION DURATION
half of the year
Company Registration
- Provide supporting documents
1. 6 months
- Provide Legal documents
- Register company at The Companies Commissioners of Malaysia
Introductory Analysis
2. - Perform cost-benefit analysis, operations analysis, technical analysis, and risk 6 months
analysis
Business Infrastructure Planning
- Plan the e-commerce business platform (internet, hosting, web design and
3. development) 1 year
- Plan the e-commerce requirement (employee hiring and delegation, collaboration
with third-party entities, supply chain and inventory planning)
Business Infrastructure Preparation
- Execute and establish the e-commerce platform according to the plan
4. 1 year
- Conduct various internal testing for errors and bugs
- Ensure the platform is stable, smooth, secure, and fully functional
Funding Planning
- Seeking for potential investors
5. 1 year
- Plan the potential funding arrangement and requirements
- Negotiate for the most beneficial agreement
Funding Implementation
- Get investors to invest
6. - Get any potential investment that can benefit the business based on the plan 2 years
- Utilize the funding to support the e-commerce in revenue generation
- Fulfil according to the investors’ expectation from the funding agreement
Market Research
- Plan the type of market research approach and its objective
7. - Allocate sufficient funds to conduct the selected market research approach 6 months
- Monitor and execute the market research based on the current market trends
- Analyse the market research feedback to improve the business

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 Marketing Planning
- Utilize market research information to aid in the plan
8. - Plan the potential e-commerce-based marketing 6 months
- Plan effective advertisement channels
- Identify any glitches that may occur within the marketing strategy
Marketing Implementation
- Implement the marketing strategy according to the plans
9. - Use all the potential marketing channels 3 years
- Contact the relevant third-party entities involved in the marketing plan
- Product and e-commerce platform advertisement to the market
Supply Preparation
- Ensure supply of products in the e-commerce platform is in accordance to the plan
10. - Establish a code-of-conduct that connects between the e-commerce activities with 6 months
the supply chain department
- Provide the efficient supply chain in order to ensure the constant of product supply
Inventory Preparation
- Allocation of inventory storage for the e-commerce store
11. 6 months
- Ensure the inventory storage is sufficient to support the e-commerce store
- Execute inventory management strategy in accordance to the plan
Product Testing
- Conduct an overall product testing process as how the product is delivered from
scratch to end to ensure the quality before selling it to the potential customers
12. 6 months
- Ensure the product is in accordance to local authority requirement and law
- Application and acquisition of Halal certification from The Department of Islamic
Development of Malaysia
Product Selling
13. - Opening of the e-commerce store and products are made available for purchasing 3 years
- Execute consumer promotional plans
Customer Feedback Analysis
14. - Monitoring of customer product review and feedback 3 years
- Respond with solutions to all customer issues and inquiries
Business Sustainability
- Constant monitoring of business potential issues and progress
15. 3 years
- Occasional maintenance on e-commerce platform
- Ensure business run efficiently and effectively
Business Improvement
16. - Analyse business obstacles to resolve and keep the business run efficiently 2.5 years
- Frequently engage with customers through marketing efforts

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