For our monthly insights digest
Between 2008 and 2013, modern grocery retailers, like supermarkets, in key Asian markets saw a 9.5% annual sales growth, versus 4.2% in traditional trade, like mom-and-pop stores. Amid the opportunities this brings to clients, DKSH Malaysia realized that the rise of chain supermarkets and hypermarkets also brings its challenges.
With modern trade retailers operating centralized distribution centers and centralizing their inventory management system, buying is increasingly done at headquarter level and stores are automatically replenished from the distribution centers. As a result, clients like OldTown White Coffee, a leading producer of coffee products and a DKSH client in several markets, were finding it difficult to get visibility on individual store performance and influence sales at store-level.
DKSH, through our field marketing joint venture DKSH Smollan Field Marketing (DSFM), therefore set up the MT Store Execution, Measurement and Insights Capability system, SMART. DSFM field marketing representatives were stationed in modern trade stores nationwide equipped with mobile devices and DSFM’s proprietary SMART software. They analyzed stock situations, undertook merchandizing based on guidelines and tracked promotion execution on a daily basis. In addition, the field marketing representatives also performed a regular inventory count on client stock keeping units.
The field marketing representatives quickly realized that certain OldTown White Coffee products ran out in certain supermarkets at certain times. The results were shared in real-time with OldTown White Coffee and DKSH managers, through an online reporting dashboard and discussed with the customer. For the first time, the storekeeper and line buyers at headquarter level had access to accurate store-level data.
Together with OldTown White Coffee, we developed a strategy to improve sales which included increasing the minimum order quantity for involved stores. As a result, OldTown White Coffee’s out-of-stock situations decreased considerably and this also provided an opportunity to optimize sales in these stores.
Mr. K.C. Ong, General Manager, White Café Sdn Bhd, said: “I am impressed by the transparency that DKSH’s reports provide. The detailed store-level insights allow us to see trends and take action accordingly. The field marketing and sales capabilities of DKSH, together with their strong network across the country, enable us to grow our business across Malaysia.”
This state-of-the-art system demonstrates DKSH’s unique capability to grow the business of clients and customers. MT Store Insights Capability will be implemented across the modern trade channel in Malaysia and in other DKSH countries in due course.
Market Expansion Services at work: growing business in new and existing channels
DKSH leverages its network of unique scope and modern technology tools to grow the business of our clients and customers. Thanks to our customer-centric mindset and marketing and sales capabilities, we spot growth opportunities and develop engaging field marketing activities to turn shoppers into buyers.