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Change is inevitable and usually, it’s for the better. Just look at the products you’re offering in your shop today. Many have been improved to contribute towards disease prevention or overall improvement of health. In this issue of Rencana Runcit, we shared with you on how the rise of chronic diseases has caused consumers to be more health conscious. This, in turn, resulted in manufacturers doing their best to improve their products to meet this particular need of consumers.

New rules and trends

In Selidik Runcit, we brought back the topic of cashless transactions but now with more evidence on why you should jump on the bandwagon and make shopping more convenient for your shoppers. We also highlighted 2 recently enforced rules, School

Canteen Guidelines and Price Control & Anti-Profiteering Act 2011, both of which are highly important for your business.

Brands with excellent performances

We also have a line up of interesting brand write-ups this round. First, MARIGOLD HL milk introduced a new variant, with the additional benefit of plant sterols that have been shown to lower blood cholesterol. We also featured the celebration of World Digestive Health Day 2011 by VITAGEN. Then there is a list of No 1s; BIO-OIL – the best selling scar and stretch mark product in Malaysia, MI SEDAAP – Malaysia’s favourite Mi Goreng as well as TROPICANA – the No 1 juice brand in the world, on its famous Live.Love.Life Tropicana Twister contest. Finally, we introduced you to the retailer-friendly bank,

Alliance Bank Malaysia Berhad.

More knowledge sharing

This issue is also filled with many interesting tips that you can apply to your business. Learn interesting new ways to promote new products, how to personalise your customer service and maximise the space at your payment counter. Pak Runcit also talked about the importance of motivation and shared four effective ways to motivate your staff.

We hope you will greatly benefit from the articles that we have put together this issue. Happy reading!

TOWARDS HEALTHIER LIFE AND BUSINESS

WILLIAM KHOOExecutive DirectorInfovantage Sdn Bhdwilliam.khoo@runcit.com.my

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FOODS MADE HEALTHIERWhy are food companies steering towards creating more nutritious and healthier foods? Read on to find out about the trend that’s causing this and how you can jump on the bandwagon.

• • •

Malaysians love food but the rise of chronic diseases such as diabetes and heart disease has caused consumers to be more health conscious. They want food that taste good and can help them reduce their chances of getting the diseases. As a response, manufacturers improve classic brands with new ingredients and added nutrients, while retaining the taste that Malaysians love. Many food companies are also investing heavily in research to create new ingredients that will help improve consumers’ health. These healthier foods or otherwise known as functional foods, have triggered a food revolution in 21st century Malaysia, ensuring that we will never look at our food the same way again.

HOW HEALTHY ARE WE?

Malaysians are becoming afflicted with diet-related chronic diseases such as heart disease, diabetes, high blood pressure, cancer and osteoporosis. You can see this all over the media. This is mainly due to bad eating habits, predominantly overeating and consuming foods that contain too much fat, salt, sugar and not getting enough fiber. Unhealthy habits such as high intake of alcohol and lack of physical activity also put us at higher risk of getting chronic diseases.

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Disease Danger Facts

Heart Disease

Leads to heart attack, resulting in sudden death or heart failure at a later stage.

16.5% of the 45,936 deaths in government hospitals in 2008 were due to heart disease. An estimated 38,000 new cases of coronary heart disease are reported every year.

Diabetes

Damages small and large blood vessels, resulting in blindness, kidney failure, nerve damage, foot gangrene and heart attack.

The number of diabetics has increased by almost 80 percent from 1996-2006 to 1.4 million adults above the age of 30.

High blood pressure

Contributes to stroke, heart attack and kidney failure.

About 4.8 million Malaysians today suffer from high blood pressure.

Cancer

Causes cells to grow abnormally and become dangerous tumors that can spread to vital organs.

1 in 4 Malaysians will develop cancer by age 75.Top 5 cancers in Malaysia are breast, colorectal (bowel), lung, cervical and nasopharyngeal.

Osteoporosis

Makes bones so brittle that they can fracture especially at the wrists, spine and hips; hip fracture often leads to death in the elderly.

1 in 4 women and 1 in 8 men over the age of 50 suffer from osteoporosis. It is estimated that over 1 million Malaysians are at risk of osteoporosis.

DIET-RELATED CHRONIC DISEASES; THE STATISTICS

Sources

http://www.malaysianheart.org/article.php?aid=427

http://www.diabetes.org.my/article.php?aid=921

http://thestar.com.my/news/story.asp?file=/2010/1/29/nation/

20100129142214&sec=nation http://cancer.org.my/learn-about-cancer/about-cancer/

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The government, non-governmental organisations and companies have been promoting healthy lifestyle to the public since several decades ago through advertising campaigns and community activities. As a result, consumers are becoming more health conscious. This can be seen from the increasing number of people who engage in physical activities such as exercising at the parks and gymnasiums. Many are also opting for functional food products that are scientifically developed to help reduce the risk of certain diseases and/or improve overall health status. At the industry level, manufacturers are doing their best to make food products healthier to enjoy. This is why you can see labels such as ‘less fat’, ‘less sugar’ and ‘no MSG’ on certain products in your shop.

HEALTHY HEART

Heart attack occurs when the arteries are clogged up by cholesterol. You can maintain healthy heart by lowering the level of ‘bad’ (low density lipoprotein, LDL) cholesterol in your blood. Take minimum amount of fats and foods that have high level of cholesterol such as brain, liver and other internal organs. There are also functional food ingredients that have been scientifically proven to lower cholesterol level such as beta glucan and plant sterols.

Beta Glucan

Beta glucan is a type of soluble fibre. Although can be found in whole wheat and rice, only oats have a high amount of beta glucan. When consumed, it helps to lower the amount of ‘bad’ cholesterol being absorbed in the stomach and intestines.

Plant Sterols

Plant sterols are part of a plant’s cell structure. They are naturally found in many fruits, vegetables, nuts and seeds, but in small amounts. Plant sterols may help to

control overall blood cholesterol level by reducing the amount of cholesterol being absorbed into the blood stream.

HEALTHY BLOOD SUGAR LEVELS

Type 2 diabetes is a disease that results in chronically high blood glucose levels. You can reduce the risk of diabetes by maintaining healthy weight and taking sensible amounts of carbohidrates, particularly sugar.

Less Sweet

Many manufacturers are cutting down on the amount of sugar or using low calorie sweeteners such as stevia and aspartame in their products. There are also many food products that do not contain additional sugar. Apart from these, some products have low glycaemic index that helps to slow down the release of sugar into the blood stream.

THE QUEST FOR HEALTHIER LIFE

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HEALTHY BLOOD PRESSURE

High blood pressure is a condition in which the force of blood against the artery walls is too strong. . Excessive intake of sodium, found in salt and monosodium glutamate (MSG) can contribute or worsen this disease.

Less Salt

Many food manufacturers are reducing the amount of salt and MSG in their products. Food products that bear the claim “Less salt”, “No added salt” or “No added MSG” are becoming more widely available today.

STRONG BONES

Bone density will reach its highest level when we are in our 30s. After that, we tend to lose bone mass. That is why it is important to restore bones that have been lost. We can do this by ensuring sufficient calcium and vitamin D intake everyday.

More Calcium

There are many dairy products enriched with calcium to help build up enough calcium in the bones. Some also contains magnesium, which helps the body absorb calcium better. Some manufacturers also add specially developed ingredients that contain various minerals and vitamins to help the body absorb and retain calcium in the bones more effectively. Don’t forget to get enough vitamin D from diet and sun exposure daily.

PROTECTING BODY CELLS

Cancer is a disease in which the cells in our body grow abnormally and become dangerous tumours that can spread to vital organs. Scientists believe that this happens when cells are damaged by free radicals. Simply put, free radicals are ‘bad things’ that cannot be paired with cells. Therefore,

they cause harm to the cells. We may reduce the risk of free radical damage by protecting our cells from radiation, pollution and unhealthy lifestyle practices (for example smoking and excessive alcohol intake). It also helps to include antioxidants in our diet.

Antioxidants

Antioxidants are substances that can help protect cells from being damaged by free radicals. Many vitamins such as vitamins A, C and E are antioxidants. It can also be found in healthful substances, called phytochemicals, in plant-based foods like palm oil, fruits and vegetables, cereals as well as other food sources. Latest research also shows that coffee is the richest beverage source of antioxidants.

continued

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CONCLUSION

The functional food market offers growth opportunities for potential investors and retailers, especially in a developing country like Malaysia. The growth is fuelled by the increasing number of older people who are concerned about their health as well as health conscious younger people with higher income. These are consumers who are willing to pay more for healthy, tasty and convenient foods. Here’s how you can benefit from this trend:

1. Know your shoppers’ preference – have a chat with your shoppers and find out the types of healthier foods they’d like to conveniently purchase from your shop.

2. Be aware of the innovations – you can expect many more innovations in the near future. New product launches are usually followed by TV and radio commercials. Pay attention to these while tuning in to your favourite shows!

3. Listen to the explanations – when suppliers approach you with new products, listen carefully and ask questions to fully understand the benefits. You can even educate yourself by reading more about the healthier innovations on the internet.

4. Support campaigns related to health – welcome campaigns by manufacturers to

promote health and disease awareness. This will help to drive sales of healthier products in your shop.

5. Be willing to try – work out a deal with your suppliers to buy new products on a different credit term and buy a reasonable amount of stocks. If shoppers can’t find them in your shop, they will go to other outlets so don’t lose out!

CARING FOR CONSUMERS

It is important that the industry acts responsibly to protect consumers from false claims and maintain healthy competition among the players. That is why the government has made nutrition labelling compulsory. There are only three types of nutrition claims that can be made by Malaysian manufacturers:

Nutrient content claim – describes the level of a nutrient in a food product such as ‘low in’, ‘free of’ and ‘high in’.

Nutrient comparative claim - compares nutrient levels and/or energy value between two or more similar foods such as ‘reduced’, ‘less than’, ‘fewer’ and ‘light’.

Nutrient function claim - describes the roles of nutrients in growth,

development and normal functions of the body such as ‘beta glucan from oats helps lower or reduce cholesterol’ and ‘calcium aids in the development of strong bones and teeth’.

continued

TIP!

Some products have very insightful websites and even interactive Facebook and Twitter pages. Look up for them on the internet!

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In the previous 2 issues of Rencana Runcit, we talked about how to better manage your cashflow as well as the benefits of providing cashless payment facilities for your shoppers. Subsequently, we asked your opinions on cashless transactions. The findings however, showed that most of you still need convincing on how providing cashless payment facilities could prove good for your business.

What Say You?

Runcit Media Sdn Bhd conducted a survey of about 500 retailers in Peninsular Malaysia from April to May 2011 on the subject of going cashless. Here are some interesting findings from the survey:

ü Almost a third of retailers have been asked by customers on whether or not they accept cashless payments

ü Only 7% of retailers accept credit cards and 5% accept debit cards

ü 84% won’t accept if offered debit card payment terminal

ü 4 out of 5 retailers believe that providing cashless payment facilities will not help improve sales

CASHLESS DOES WORKYou may be missing out on sales by sticking only to hard cash.

WHY THE CHANGE?Without the ability to pay with credit or debit cards, your shoppers will only purchase within the limit of cash they have on-hand. What other choice do they have, right? Cashless equals convenience, something shoppers love. Let’s look at some of the main reasons why consumers are going cashless.

I can plan my finances

“I don’t like to carry big amounts of cash as it

isn’t safe. So when I need to buy expensive items, credit cards come in handy. By using credit cards, I

can track my expenses and plan my finances. It’s also good in case of emergencies, as cash can be

advanced easily when needed.” – Ida, 25

I only use the money I have

“Debit cards relieve the burden of carrying a lot of

cash around and it can be used to purchase expensive items. Plus, I can avoid overspending as the

limit is the amount of money in my account. This also means that there are no late payment penalties,

finance charges or collective card debts.” – Jim, 34

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LEARNING FROM THE NUMBERS

Cost Money to Handle Money

ü Did you know that the cost of managing cash transactions in Malaysia is about RM29 billion per year?

ü And of this, RM17 billion comes from the retail industry!

You may not realise it but there is a cost to handling cash. This is why the government is pushing towards cashless transactions. This is also the reason why most of your modern trade counterparts are providing cashless payment solutions.

(Source: Wincor Nixdorf Retail Solutions, Jan 2011)

Cashless Is The Future

From what we’ve shown you, one thing is evident – more consumers are opting for credit and debit cards. They are discovering the convenience of cashless payment method and they are increasingly using it, even for everyday purchases. All evidence points to the fact that businesses that provide these payment facilities stand to gain more success in the long term. What are you waiting for? Keep up with the times!

Whether it is in Malaysia or neighbouring countries, consumers’ usage of credit and debit cards are going up. Let’s look at some of the latest statistics.

There are currently about 8.5 million credit cards in Malaysia

Source: Bank Negara Malaysia (2011)

In 2010, consumers spend an average of RM9,300 per credit card in a year

Source: Bank Negara Malaysia through The Star (April 2011)

About 21 thousand debit cards are currently being used in Malaysia

Source: Bank Negara Malaysia (2011)

Note: This data only refers to domestic PIN-based debit card scheme

Debit cards are very popular in neighbouring countries

Source: Euromonitor International (Jan 2010)

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Do you have a school near your shop where children always stop by to buy themselves a treat? Do many school children frequent your shop to buy snacks and candies? Well, 70 odd items deemed unhealthy for children have been proposed by the Health Ministry's Nutrition Division to be banned in school canteens and these include items sold in your shop.

Why the Ban?

• Canteen guideline to focus on healthier food and preparation methods to reduce obesity among students. Study by Universiti Kebangsaan Malaysia (UKM) showed that obesity among pupils had increased from 11% in 2002 to 13.7% in 2008.

• To ensure children are getting enough nutrients from their meals and to curb unhealthy snacking

• To instill better eating habits among school children

However, there is no basis why you should not continue selling these banned foods in your shop. These are the reasons why:

• source of income for your business.

• children only visit after school hours and would already eaten a proper meal and obtained their nutrients

• snacks and sweets are consumed for enjoyment and everyone needs an occasional treat.

Always remember you are selling these foods to cater to a wide market, and everyone is welcomed to buy it. Have the stocks available at all times, especially in preparation for the surge in the sales of these items as children will always be wanting these treats.

Following are some examples of ‘unhealthy’ foods that are now prohibited from being sold in primary and secondary school canteens:

• Preserved food such as burgers, nuggets and jeruk

• Chocolates, sweets & ice-cream

• Coffee, tea & carbonated drinks

• Food, drinks & snacks with artificial colouring & flavouring

• Food that is sold with toys

What Foods are Prohibited?

MOH SCHOOL CANTEEN GUIDELINES

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And if you really want to be a responsible retailer, you can limit the amount that the children buy and try to sell snacks which are healthier as more food companies are also moving towards producing healthier foods.

Remember the time when we were hit with the H1N1 epidemic? Many consumers were buying face masks to protect themselves but some retailers increased the price so excessively, even selling it at RM5 per piece! This is an example of excessive profiteering and now there is a new law that prohibits businesses from taking advantage of the consumers. The long-awaited Price Control and Anti-Profiteering Act 2011 will be enforced starting from April 2011 and those found guilty will be imposed with heavy penalties.

The Purpose of the Act

• The Government will determine the prices of controlled goods.

• To control profiteering activities, for instance, those who sell ice kosong for RM1 will be hauled up under the Act. In this way, the Act is also protecting the consumers from being overly charged.

• To prevent businesses from taking advantage of the changing economic situation, for example, those that charge exorbitantly for their food because of the rise in petrol prices.

How Do You Know if You Are Breaking the Law?

• Retailers can consult the Price Advisory Council, under the Ministry of Domestic Trade, Cooperatives and Consumerism’s if they are not sure whether their pricing is too high and can be considered profiteering.

• The council will be fair and will take into consideration the operational costs of the retailers like taxes, suppliers’ costs, supply and demand conditions and geographical locations or product market circumstances.

These are some examples of goods that are controlled at all times under the Supplies Control Act 1961. Excessive price increase in these can see you punishable by law.

• Sugar

• Cooking Oil

• Rice

• Flour

• Milk (including condensed, evaporated and powdered milk)

• All types of bread

What Are The Controlled Goods?

PRICE CONTROL AND ANTI-PROFITEERING ACT 2011

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What are the Penalties?

• A corporate body committing an offence under the Act will be fined up to RM500,000, while the second or subsequent offences will carry a fine of up to RM1 million.

• Individuals found guilty of committing offences under the Act will face a fine not exceeding RM100,000, or three years' jail, or both, and for the second and subsequent offences, the penalty is a fine of up to RM250,000 or five years' jail, or both.

For further info, please contact the

Ministry of Domestic Trade, Co-

operatives and Consumerism at

+603-8882 5500 or write to them at

No. 13, Persiaran Perdana,

Presint 2, 62623 Putrajaya,

Malaysia.

New products can help your business if you handle and promote it well. Introduce the product to your shoppers and increase your sales with these easy steps.

1. Have presence• Always make sure new products’

visibility is given top priority.• Make sure you have the correct

planogram. Get help from your supplier to merchandise their products.

• Place the product at eye level. Studies have shown that eye level is buy level and products here usually have higher off-take.

• Allocate more shelf spacing to attract more attention to its existence.

2. Attract Attention• Get the new POSMs from your

supplier and use it to highlight the product.

• Create an attractive display at a hotspot in your store. Have an impactful display with posters, hanging mobiles etc.

3. Explain the Benefits• Communicate the benefits of the

products.• Give out flyers or brochures

provided by the supplier so that shoppers know the benefit and the product range the brand has to offer.

4. Sampling• Work out with suppliers to give out

samples. Once the shoppers try the product and they like it, they will buy it.

• Offer promotional products especially small samples. This can help create interest in the product and allow the shoppers to try more products from the brand.

• If possible, ask the supplier for promoters to promote the new products. They will be helpful in merchandising the products as well.

PROMOTING NEW PRODUCTS

TIP!

Spread the word. Recommend to shoppers the new products yourself. Word-of-mouth marketing is a simple and effective method in promoting a new product!

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Think of what it means to be a customer and how you would like to be treated when you shop in the store. More attention? More information on the products? It’s time to get back to basics and learn how to personalise your store's customer service.

Smile. The very first thing a customer should see is a smile. This creates a warm, friendly and cheerful first impression. Always be polite and welcome your shoppers. Say your store's greeting with a pleasant and upbeat voice to make the shoppers feel welcomed. Be consistent and greet every shopper.

Be available. Make yourself available for the shoppers’ needs and periodically check on them but be careful not to interrupt their shopping experience. If possible, offer to take the shopper to the aisle and lead the customer to the item that they are looking for. Better yet, wait and see if they have questions about it, or further needs.

Know your products. Your customer may ask you for your advice and you should know what you are talking about. Lend your expertise, if asked, for product recommendations. Make honest suggestions so that the shoppers trust your taste and opinions. Sincerity and trust must always be maintained so that credibility gap will not exist between shoppers and you.

Offer to help your shoppers carry their purchase to their vehicles, provided that someone is manning your shop. The shoppers will appreciate your thoughtfulness.

Explore Additional Services!You can provide the following services when your shoppers buy a minimum amount of order:• Accept telephone orders so shoppers can save the time and hassle to travel to your

store.• Provide house delivery, especially for regular customers with repeat orders.

PERSONAL SERVICE

TIP!

Be sure to tell the shopper on

their way out to have a great

day and encourage them to

come again. Don't forget that

smile too!

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Ever wondered the space where you are always situated is also the most prime area in your store? The counter top, also your payment counter, can serve as an area to increase sales and accelerate product off-take. Find out below what are the recommended products to place there and what’s not!

Keep It Neat• Counter top is a high traffic area

(hotspot) that must be kept clean and well-organised at all times.

• A neat and well-planned counter will result in more impulse purchase and faster turnover.

Place Visual Presenters• Grab shoppers’ attention, as they are

more receptive here compared with other areas of the store.

• Earn some income by renting this area for placement of visual presenters as brand owners know it can help to accelerate faster shelf off-take.

Push for Impulse Purchases• Focus on products categorised under

“impulse purchase” – unplanned and picked up just before making payment for all items.

• Payment counter generates the highest volume for categories like

o Confectionery – small packs of chocolates, sweets in sachet and stick form, chewing gum etc

o Biscuits – individual wrapped, in small pack sizes and placed in attractive display box

o Batteries and analgesics– usually come in clip strip, dispenser, dump-bin or plastic showcase

Utilise the Space Behind• Display case behind the counter is

commonly used to display cigarettes/ cigars.

• Over-the-counter (OTC) products are kept here as they come in small packs and are high value.

• Other high value products to be placed here include shaving products, infant products e.g. milk powder and phone/ top-up cards

• This is also a strategic area to highlight important messages such as promotions etc

Avoid This at Your Counter!• Magazines and newspaper are to be

strictly avoided as these will jam up the traffic flow.

• Toys or complementary products that cater to kids must not be placed here as it will create havoc to the traffic flow.

WHAT GOES ON THE COUNTER TOP

TIP! The counter area is also known as the “Pleasure Counter” in convenience stores, where there will always be a wide offering of condoms stacked in a display case.

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Runcit Media Sdn Bhd’s (RMSB) 23 years of experience in the traditional trade translates into our in-depth understanding of the business and consumer behavior in this channel. This understanding is applied into our offerings, to provide you with integrated solutions to help you meet your sales objectives. At RMSB, we do not practice the ‘one size fits all’ approach. Our services are tailor-made to ensure effectiveness of each campaign.

Whether the purpose is to create awareness, entice or create familiarity, navigate or direct shoppers to your products or communicate brand messages to influence shoppers’ purchase decision, our Outlet Navigation (ONG) and Customised Media will help you own the ‘hot spots’ of your choice, be it in small or large outlets.

RMSB’S VALUE ADDED SERVICESEach Client that engages our media services will also get to enjoy a host of Value-Added Services. By utilising our understanding of consumer behaviour in the traditional trade, good relationship with our panel of 8,000 retailers nationwide and our experienced team of Field Supervisors, we are able to offer you:

1. Over The Counter Check - to gather information on product availability and shelf/ sticker prices

2. Retailer Feedback - to evaluate effectiveness of campaigns conducted in their outlets and gain perception feedback

3. Pre-Selling Initiative - to assist in product penetration 4. Display & Merchandising - to complement your sales &

merchandising team in trade displays and display merchandising initiatives

LEAVE YOUR CAMPAIGN ACTIVATION TO USAnd let your sales team focus on selling

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Merchandising Blitz is the latest addition to our Value-Added Services. Categorised under Display & Merchandising services, Merchandising Blitz is offered along with investment in media. Through this, RMSB will work together with you to achieve maximum exposure for trade campaigns that comprise both media and merchandising. You may choose the outlets from our panel of outlets and/ or recommend other outlets for us to recruit for participation in the campaign.

What It Does?

With Merchandising Blitz, RMSB’s team of Field Supervisors will be able to complement your sales & merchandising team to successfully activate your trade campaigns. Following are our value propositions for Merchandising Blitz: brandowner

ü Inform shoppers of the availability of a particular product in the outlets

ü Remind/ influence shoppers to purchase the product

ü Increase product facing and space in the outlets

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FOR MORE INFORMATION, CALL US FOR A PRESENTATION!RUNCIT MEDIA SDN BHDTEL: 603-7957 1718; E-MAIL: info@runcit.com.my

MERCHANDISING BLITZ

WORKING GUIDE

A quick look around the 2-storey mart gave an impression similar to that of a small hypermart. The fittings were bright and modern, the fixtures up-to-date and everything very neatly arranged. What crossed our minds was how much it all must have cost, and what had prompted such an investment. On top of that, Pasaraya Best is Kopal’s 3rd store; the other 2 are equally well furnished and well stocked. We had a chat with the owner, Kopal, on how things came to be.

Early BloomerAt a very young age, Kopal had already started to discover the entrepreneur in him. When he was still in secondary school, he was already helping out at his father’s provision shop daily. His chance to shine came when he was asked to handle the entire shop for 2 months while his father was away in India. When he came back, Kopal’s father found that the sales for those 2 months were among the highest he had ever seen! “I have always been inclined to business, ever since I can remember. I would try out anything and everything that I thought would yield results. I did things like giving away small gifts with minimum purchases and having value promotions for certain items periodically. Soon after that, most of the neighbourhood started shopping at our store.”

Don’t Be Afraid To InvestInvest in your instincts. Many a time, thinking too much can cost you valuable opportunities. I keep a savings account for my businesses, which I make sure to pump money in at the end of every month. I use that money to expand and regularly install new fixtures and furnishings.” We could see he means what he said; he had installed anti-theft sensors at the entrance to deter shoplifters, prepared trolleys for the convenience of his shoppers and his store sells a wide variety of goods, from fresh meat and vegetables to hardware and even CD players!

1. Keep a savings account for your business and put in money at the end of every month.

2. Do not be afraid to invest. You cannot invest 1 Ringgit and hope to get 100 Ringgit worth of returns.

3. Make your product range as complete as possible so that your customers don’t have to go anywhere else.

4. Maintain good relations with your suppliers to get the best credit terms and prices.

5. Keep up to date with the current trends by visiting and observing other successful businesses, especially hypermarts.

6. Take care of your customers’ needs and encourage your staff to do the same.

Kopal’s Business Tips

MONEY MAKES MONEY

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Keep Growing“To me, running a business is like riding a bicycle; once you stop pedalling, you risk falling down. The key is to be action-oriented and keep your business fresh. If there’s something you think would work for your business, go ahead and do it. If you run out of ideas, go out there, visit other successful businesses and observe the way they do things. Jot them down and look into them when you have the time.”

Don’t Be OverconfidentWhen asked about how he thinks about his success so far, Kopal responded, “I do not see myself as successful. I believe that when a person sees himself as having achieved success, he becomes laid back and loses his passion. I try not to be satisfied with what I have. My principle is that nothing is set in this world. You could be enjoying success one day and be bankrupt the next. Complacency can cost you if you’re careless. But at the end of the day, I still cannot help but be proud of what I have achieved with the support of my staff and my wife.”

Name: Kopal A/L PalaniandyShop: Pasaraya Best, 25-31, Jalan DC 4/1,

Desa Coalfields,, 47000 Sungai BulohSelangor Darul Ehsan

Tel: (03) 6038 4680

RECYCLING BAGSName: Md Shah Md FauziShop Name: Pasaraya PKT (KM) Sdn BhdTown: Kota Bharu, KelantanRM Field Supervisor: Mohd Rodi Mohd Nor

PKT Group has responded to the Government’s call for the reduce usage of plastic bags in the country. Starting from 1 Jan 2011 and on every Saturday, there will be no plastic bags provided to the customers. Those that insist and want to have plastic bags will have to pay 20 cents for a bag. PKT has taken the initiative to produce their own eco-friendly recycling bag. The bag has PKT’s logo on it and is sold at an affordable price of RM1.50 each. The bag has received tremendous response from the customers as the designs are attractive and it is sold at a reasonable price.

AWARD WINNER

Name: Titit HandayaniShop Name: Bumi Terus Maju Sdn BhdTown: Temerloh, PahangRM Field Supervisor: Mohd Rodi Mohd Nor

The shop has won 2 awards from KPDHEP which is the Excellent Ethical Retailer Award (Anugerah Kecemerlangan Peniaga Beretika) and Reasonable Price Award (Anugerah Harga Patut). These awards had ignited the spirit within us to provide the community with excellent service. We will continue to provide our customers with the best friendly service and reasonable price items.

TAKING CARE OF THE ENVIRONMENT

Name: Mariam Bt YusofShop Name: Salamku Xtra Sdn BhdTown: Pasir Mas, KelantanRM Field Supervisor: Mohd Rodi Mohd Nor

Salamku Group is supporting the KPDNHEP campaign in reducing the usage of plastic bags, where no plastic bags are given on Saturdays. However, Salamku Group is still providing plastic bags without charge to its shoppers considering that the shop is situated in the outskirts of Kelantan. Nonetheless, Salamku is aggressively educating its shoppers to reduce usage of plastic bags by telling them about the campaign and also by strategically placing buntings and posters around the shop to remind shoppers about it. Salamku has received many positive comments about its initiative and wants to slowly culminate the recycling habit in their shoppers. This campaign has also indirectly benefitted Salamku as they themselves have reduced the cost of plastic bag usage.

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CUSTOMER SERVICE COUNTER

Name: Norshafira binti YahyaShop Name: Pasaraya Hafifah (M) Sdn BhdTown: Kangar, PerlisRM Field Supervisor: Mohd Rodi Mohd Nor

Pasaraya Hafifah has taken a step further to make sure its shoppers are getting the best by having a customer service counter in its shop, just like the modern supermarkets. This is a value-added service provided by the shop that the shoppers appreciate and love. This counter provides numerous services including application for the Pasaraya Hafifah membership card, point redemption, taking hamper orders and many more.

ADDITIONAL SERVICE FOR RESIDENTS’ BENEFIT

Name: Ahmad Sabri bin HassanShop Name: E Mat Mini MarketTown: Bandar Tun Razak, PahangRM Field Supervisor: Mohd Rodi Mohd Nor

E Mart makes life easier for the residents in the area by providing additional services such as top-up for their mobile, payment of utility bills and their main service, money transfer to Indonesia. By using the mobile money pin, the money can be transferred easily and will be received by the intended person in only 5 minutes. This service has received great response as there are a lot of Indonesian communities living and working around the area.

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How can I improve my productivity, when the boss does not even motivate me? This is often heard among the staff and as the boss of a retail operation, what can you do? Motivation is a very important ingredient in the successful management of your business.

The word motivation comes from two words, Motive and Action which refers to the inner drive that inspires action. It is therefore in your utmost interest, as the leader, to pave the way in creating new opportunities for your staff. To fully exploit the situation and in deploying the right strategies and get the maximum out of your staff, it is absolutely necessary to have a clear understanding of what motivation is all about:

“Motivation is the ability to make people do what you want them to do, by convincing them that they can obtain what they want by doing what you want them to do and liking it”

Once the stage is set, you can then start to look into the things that will motivate your staff. Please note that motivation, hinges very much on your understanding and knowledge of their needs. Money is not always on the priority list, although it is important and a competitive package is necessary. Recognition and appreciation have been identified as the two most powerful tools in motivating the staff, as employees want their efforts and contributions to be recognised. Remember that motivation will lead to a high morale in the team, which will spark off a higher level of productivity.

The following are four key areas to guide you in effectively handling and motivating your staff.

a. Monetary Rewards This is very short term and easily forgotten. Please note that this will only offer temporary motivational impact.Creates a healthy in-house competition.Helps to satisfy the needs and wants of the staff.

b. Personal RecognitionThis is the most lasting element of motivation.A gift as a token of appreciation/gesture is highly recommended.Increase chance of career advancement to a more responsible and challenging job.When the management pays close attention, the staff will work harder and their performance will be on the right track.

THE POWER OF MOTIVATION

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c. Person-to-Person RelationshipPersonal relationship with each staff is the keyword to success.Create a strong sense of belonging and keeps the fire of achievement burning.Have regular communication with the staff on their performance and demonstrate your leadership by example in helping them overcome their problems, if any.

d. Fear Motivation (Security)Job insecurity/fear in losing the job. Fear motivation is to be used only as a last resort. When staff is not meeting the KPIs set by the Company or not measuring up to the expectations of the boss.

To provide you with more ideas on how you can motivate your staff:

a. Regular review of the performance, progress and contribution of the staff vis-à-vis the company’s objectives.

b. Give praise where necessary and likewise also give constructive criticisms.

c. As a leader, make sure you are readily available, be a good listener and have time for your staff.

d. No exploitation. Make sure you pay your staff according to market rate and performance.

e. Encourage self-development. Be a good teacher in the areas of training.

f. Build up the Family concept working environment and create a strong sense of belonging.

g. Give the staff the responsibility and authority within the framework of the job.

h. Do not just believe in lip service. Any rewards which are quantifiable will leave a long lasting impression.

Remember that Motivation is an on-going process. You have to work hard at it in order for it to be effective.

All the best!

Q1: There is a mini market in my area that sells daily provisions such as rice, biscuit, coffee and noodles as part of their weekly discount specials with a price that is lower than the wholesalers. Because of this, I have less customers coming to my shop. How can we handle this problem?Ting Tiew SengHo Seng CompanySarikei, Sarawak

A1: The weekly discount specials offered by the mini market is a very common practice which is very similar to that undertaken by the Modern Trade, especially the Supermarkets and Hypermarkets, with the primary objective of attracting new customers. This type of promotional gimmick is usually carried out at the expense of the margins and it may interest you to know that some of the Hypermarkets even go to the extent of selling below their cost, in a desperate attempt to attract more customers.

If the prices offered on the selected items are lower than what you get from your Wholesalers, this is cause for concern which you may have to look at your source of supply immediately. For all you know, the prices you get may not be competitive enough for you to mount a similar type of promotion to compete with the Mini market.

Please be reminded that customers do not just patronise your outlet based only on a few weekly specials, as there are also other areas of important considerations:

1) Cleanliness of the shop.2) Shopping ambience and environment.3) Layout of the shop, in terms of traffic flow.4) Placement and accessibility of goods.5) Range availability.6) Overall fairness, in terms of the pricing policy.7) Regular promotional activities.8) High level of Customer Service.

Please use the above as a checklist to see whether you are lacking in any particular area which could be the reason why your customers are shying away from your shop. In the event that you want to retaliate by offering a similar promotion as the mini market, please ensure

that you do not get into a price war. If this happens, it will not do anybody any good. Best of luck to you and we hope you will soon win back all your customers.

Q2: How do I handle stubborn and ignorant customers that cannot understand that purchased goods cannot be exchanged or returned? Sometimes I even get customers that wants to return broken items that was sold to them in good condition. Because of this, it has created argument and hostility on both sides. Please advise.Azman Bin A. AsgarMan Chon TradingKunak, Sabah

A2: The best way to overcome this problem is to display a sign in a strategic location to notify the customers, so that they are fully aware of your policy. While you have every right to dictate your terms, please be reminded that you must also not go overboard, in view of the competitive nature of your type of business.

To the best of our knowledge, goods sold are usually not returnable for cash. However, most retailers will allow the customers to exchange the goods, depending on the validity of the reasons given. If you do not exercise this form of flexibility, you are only driving your customers away and you can rest assured that they will not patronise your shop again in the future. This is also part of what we call good customer service which you have to give it some thought, if you want to maintain a pool of loyal customers.

On the subject of trade returns, you must not have a blanket policy, but rather view it on a case-to-case basis. What comes to mind is that if a bottle is broken, with the cap still intact, there are suppliers who entertain such returns. We are sure you know the suppliers well and the policy of their trade returns and as such you should exercise care and caution when you deal with your own customers.

We hope you can solve your problems amicably, without affecting your business in the long run.

All the best.

THINK BEFORE YOU ACT

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