Al Ikhsan Marketing Strategy

2122 words (8 pages) Essay

2nd Jun 2017 Marketing Reference this

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1.0 Introduction

In 1993, aL-ikhsaN Sports were formed with a single store in Holiday Plaza, Johor Bahru. Initially, the business started off as a general sportswear outlet. aL-ikhsaN today has expanded aggressively towards the goal to be the biggest sports chain-retailer nationwide. Today, the name aL-ikhsaN is synonymous with football. It is a “Play Football. Think aL-ikhsaN” situation, particularly among the younger generation. As a valued dealer, aL-ikhsaN has access to the latest product range and information on the newest development in the sportswear industry. Whenever there is a new product launch, these major brands will include aL-ikhsaN’s branch addresses in all their latest promotional materials. From a single outlet, Al-Ikhsan has learnt to remain competitive in difficult market conditions, while growing pace by pace to 65 stores in every country within Peninsular Malaysia. The Company started as a single Sole Proprietorship and each new store that was opened was individually registered as Sole Proprietorships also. It is a major concern for the Government that Bumiputera retailers are a minority in almost all Shopping Malls and well-developed areas as is evident from the fact that aL-ikhsaN has been chosen to be a Nominated Franchiser by the Government, aL-ikhsaN meets all the criteria for a highly successful Bumiputera retailer. In 2010, as the business grew, Al-Ikhsan sports set up a new store at Gurney Plaza, Pulau Pinang. The manager wants to use a suitable promotion strategy to increase their sales.

1.2 Problems

In 2007, the economy crisis in whole world. Unfortunately, aL-ikhsaN sports also affected by it, the sales drop significantly from year 2008 to 2010. The manager doesn’t know which type of sales promotions are preferred by TAR college students in Pulau Pinang. The aL-ikhsaN which outlet or location are preferred by students from TAR College. Besides that, some TAR college students are not satisfied with the aL-ikhsaN services and price. The TAR college students aware of the range of product sold at aL-ikhsaN.

1.3 Objectives

1.3.1-To investigate which outlet or location are preferred by students from TAR college.

1.3.2-To investigate the range of products sold at aL-ikhsaN preferred by TAR college students.

1.3.3-To investigate satisfaction level among students at TAR college regarding aL-ikhsaN prices.

1.3.4-To investigate the types of sales promotions that are preferred by students from TAR college.

1.4 Significance

1.4.1 Significance to consumers

This report is beneficial to consumers as they can have a better understanding with aL-ikhsaN marketing strategy. With this report, the consumers will be able to make comparison between aL-ikhsaN and other sport accessories shops. Lastly, consumers can knows better about promotion and pricing of aL-ikhsaN.

1.4.2 Significance to aL-ikhsaN

After going through the report we have prepared, aL-ikhsaN will be aware of the problems faced. Therefore, actions can be taken to rectify the problems and improvements can be making. Moreover, aL-ikhsaN can plan a better strategy for their sales promotion to increase their sales. Besides that, aL-ikhsaN can obtain feedback from consumers on pricing.

1.5 Limitations

1.5.1 Location

We investigate aL-ikhsaN store in Gurney Plaza, Penang. We choose Gurney Plaza outlet as our limitation of location because it would be easier for us to do research. Besides that, the financial problem also limitation us only can do the research in Penang.

1.5.2 Respondents

We will assign questionnaire to 40 respondents. The respondents all are students from TAR College, Penang and have a common interest that is sport. We choose them as our respondents because they are close to us and we can have feedback quickly.

2.0 Methodology

2.1 Design

A primary research was carried out by Tunku Abdul Rahman College students with distributing questionnaires conducting a survey on promotion strategy by aL-ikhsaN. Secondary data on promotion strategy of aL-ikhsaN was obtained from aL-ikhsaN website regarding with their sales promotion.

2.2 Primary Research

2.2.1 Subjects

The questionnaires were given to 40 respondents who are studying in Tunku Abdul Rahaman College. All of the respondents are about 18-21 years old and they share the same interest in sport.

2.2.2 Instrument

A questionnaire was designed to obtain responses on promotion strategy of aL-ikhsaN. It contained 6 questions that are 2 YES/NO questions, 2 multiple choice questions, 1 rank list questions and 1 scale questions. Questions 1 and 2 are in regard with objective number1 which is the outlet or location preferred by students from TAR College. Question 3 and 5 are related to objective number2 for the range of product sold at aL-ikhsaN. Thirdly, Question 4 is regarded of objective number 3 the satisfaction services of aL-ikhsaN by TAR College. Lastly, Question 6 in regard of objective number 4 which type of sales promotion is preference acceptable by consumer.

2.3 Secondary Research

Secondary information on promotion strategies of aL-ikhsaN was obtained from aL-ikhsaN website www.al-ikhsan.com regarding their promotion strategy to increase their sales. Besides that, the information of prices and range of product are taken straight away from the outlet at Gurney Plaza.

2.4 Data Analysis

Data obtained was tabulated and presented in chapter 3 with pie charts and graphs. The figures were calculated as percentages and number of respondents.

3.0 Findings & Discussions

3.1 Outlet or location is preferred by students from TAR College.

Figure3. The outlet or location of aL-ikhsaN easy to find in year 2011

Based on the date collected, 30 %( 12) of all respondents agree (YES) that is easy to find the outlet of aL-Ikhsan. In contrast to this figure, 70 %( 28) of all respondents disagree (NO) that the outlet of aL-ikhsaN is easy to find it in years 2011.

In short, it can be concluded that majority of student disagree (NO) about the outlet of aL-ikhsaN is easy to find it.

3.2 The range of products sold at aL-ikhsaN prefers to buy by TAR College students.

3.2.1 aL-khsaN Products preferred by TAR COLLEGE students.

Figure3. . 1 Product is more prefer to buy at aL-ikhsaN by TAR COLLEGE students

Based on the data collected, 47.5 %( 19) of all respondents the most preferred product to buy T-shirt. Secondary, 32.5 % (13) of all respondents are preferred product to buy shoe. The accessories products are the least students preferred to buy that are 20 % (8) of respondents.

In sum, it can be concluded TAR College student are more prefer to buy T-shirt in aL-ikhsaN.

3.2.2 aL-ikhsaN product quality.

Figure 3.2.2 aL-ikhsaN product quality in year 2011

Based on the data collected, 2.35 mean values valuables are the opinion of the respondent. Following that 2.3 mean values are realizable & safety is the opinion of the respondent. In addition 2.2 mean values are satisfying are the opinion of the respondent.

In conclusion, it can be concluded that all of the respondent are feel that the product sold at aL-ikhsaN is valuable.

3.3 The satisfaction level among Students from TAR college regarding prices of aL-ikhsaN.

Figure3 3.1 Students from TAR college satisfaction level of aL-ikhsaN prices in year 2011.

Based on the data collected, 60 % (24) from all the respondents feel that the price of aL-ikhsaN is same with other shop. Following that, 25 % (10) of the respondents feel that the price of aL-ikhsaN is expenses. Lastly, 15 % (6) of the respondents feel that the price of aL-ikhsaN is cheap.

In a nutshell, it can be concluded that the price of the aL-ikhsaN significantly same as other places.

3.4 Preferences of types of sales promotions among students from TAR College.

Figure 3 4 the type of sales promotion are preferences acceptable by students from TAR College in year 2011.

Based on the data collect, 49% (25) of the respondents are more preferred the mega sales promotion. Following that, 25.5 %( 13) of the respondents are choosing the cash voucher. In addition to this figure 9.8% (5) of the respondents are choosing the sms discount and the membership loyalty programmer.

There are high number of people are choosing the mega sales as them sales promotion compare with the other sales promotion.

4.0 Conclusions

In conclusion, the marketing strategy used by aL-ikhsaN almost successful but there still needs to improvement for increase their sales. The Malaysian younger generations are “Play Football. Think aL-ikhsaN” situation, there is a good news for aL-ikhsaN. This is due to the product is valuable and safety of buying in aL-ikhsaN. Furthermore, the price of food is reasonable and many brands of product can choose at aL-ikhsaN. The students from TAR College are the part of younger generations and they play important role in the local market.

4.1 The outlet or locations are preferred by students from TAR College.

The outlet of aL-ikhsaN in Gurney Plaza is not preferred by students from TAR College. Based on the research, majority of them disagree about the outlet of aL-ikhsaN is easy to find it. This is attributed to the location of Tunku Abdul Rahman College is too far away from Gurney Plaza. So, the students more preferred to go other place to buy where more close to them.

4.2 The range of products sold at aL-ikhsaN preferred by TAR college students.

TAR College student are more prefer to buy T-shirt in aL-ikhsaN compare to the shoes and accessories. This is because the price of T-shirt is cheaper compare to other shop and the style is upgrading all the time. Besides that, the quality of products is valuable, this can see through the research.

4.3 The satisfaction level among students at TAR College regarding aL-ikhsaN prices.

Majority of the respondents feel that the price of aL-ikhsaN is same with other shop. This is due to the supplier to other shop almost the same such as Nike, Adidas and many again. So, the product prices are almost same with other shop and the prices are fixed.

4.4 The types of sales promotions that are preferred by students from TAR College.

The TAR College students are more preferred the mega sales promotion. The sales promotion of aL-ikhsaN attracts a lot of students, because there have a good discount to them and cheaper than normal period.

In short, the aL-ikhsaN need to take actions on their weakness and improved it to increase their sales target. The problems of aL-ikhsaN can solve quickly, if they take necessary actions on it.

5.0 Recommendations

5.1 Recommendation on the outlet of aL-ikhsaN.

After the research, we found that the outlet of aL-ikhsaN was not easy to find by TAR College students. We suggest that aL-ikhsaN sure open the outlet after done the survey on where locations have the more potential customer. The aL-ikhsaN sure open the new outlet depends on the different geographic, the type of customer and the type of product.

5.2 Recommendation of diversified the products.

The aL-ikhsaN sure provides more chooser on type of shoe and accessories products to attract more customers. This can solve it with contact more supplier from different brands for diversified across all sport products such as sportswear, sport accessories and shoes.

5.3 Recommendation to cut down the cost of products.

The aLikhsaN sure solve the problem of the price of product too expensive immediately. This is because it can caused losing the loyalty customer and decrease the sales. We suggest the aL-ikhsaN straight away order the store from the industry to deduct the cost by middleman. The aL-ikhsaN also can get discount from the supplier by order the huge amount of store. According to the two steps, the cost of product will be cutting down and we can sell it with the lower price compare to other shop.

5.4 Recommendation the types of promotion.

The sales promotion sure provides by aLikhsaN in fixed period such as the year end mega sales. Although the mega sales will decrease the profit earned, but it can maintain the quantity of loyalty customer and clear the store for buy in more new products.

According the steps suggestions by us, we believe the aL-ikhsaN will be have the good improvements and increase their sales.

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