Situation Analysis

SITUATION ANALYSIS REJECT SHOP
CHAPTER 1 PROJECT OVERVIEW
Chapter 1 : Project Overview

1.1 Introduction Reject Shop is a home grown Malaysian chain store within the Metrojaya group of companies which focuses on retailing global branded garments which are off-season, discontinued stocks or late order cancellation stocks. Shoppers wanting good quality garments at great value can also look forward to Metrojayas own developed quality merchandise. Well-known brands from the USA, Europe and Australia find their way onto the shelves of Reject Shop, enabling the store to offer mens, ladies, and childrens apparel across a full range of sizes. Since its introduction in 1990, Reject Shop now operates a nationwide chain of stores and outlets at leading shopping locations. Reject Shop, has been appointed as the Official Retailer for the Liverpool Football Club (LFC) Asia Tour 2011 merchandise by Retro Development Pte. Ltd (the official licensee for the Merchandise of Liverpool FC Asia Tour 2011). Reject Shop has grown by leaps and bounds since it first set up its store in 1990. Today, it has close to 40 stores in all major shopping Malls in east and west Malaysia. Reject shop is a unique retail business that offers customers quality merchandise at great value prices. The store specializes in retailing quality branded garments from off season stocks, discontinued lines and late order cancellations. With close to 40 stores across Malaysia in strategic locations it is able to reach out to the mass football fraternity in Malaysia. With ideal locations and a formidable sales and merchandising team, this project have been a great.
1.2 Problem Statement and Issues The issue that Reject Shop has is that Malaysian concerned more about the brand. With a name like Reject Shop, they probably though the items being sold would be pretty inferior. They also think the quality of the clothes are worse compares to others competitor such as Factory Outlet Store (FOS) because of their very cheap price. The design of Reject Shop store is not strong enough to attract people attention to go shopping in there, although only for window shopping. And Reject Shop doesnt have an official website for their brand; make it harder to find any information about their brand and clothes. Reject Shop also lack of advertisement and promotion on their product and corporate identity.
SITUATION ANALYSIS REJECT SHOP 1.3 Objectives and Aims 1.3.1 Objectives To make an advertisement that will focus more on showing the quality of clothes, comfortable to wear. To redesign Reject shop store, make it more stylish, and re-arrange their position. To build an official website for the Reject Shop and utilize the social media to promote and updating any news regarding promotion or event at Reject shop such as Facebook, Twitter, Instagram and etc. To create a TVC for promoting Reject Shop through local media. In addition, to create more value promotion or membership, using QR code or augmented reality.
1.3.2 Aims To expose the Reject Shop brand. To ensure people change their perception on Reject Shop quality. To help Reject Shop in popularize their brand in the Malaysian market. To increase Reject Shop sales in Malaysia. To raise awareness and brand image for Reject Shop so they will enable to stand together with others competitor.
CHAPTER 2 PROJECT PROFILE
Chapter 2 : Project Profile

2.1 Product Name Reject Shop is chain store of apparel and home products. They bring off-season, discontinued, or late order cancellation stock from big international labels and they also bring the prices way down, so you get superior and value for money designs.
2.2 Product Classification Reject Shop are tastefully meeting customers needs for everyday wear. They recognized the unique needs of their customer for quality and price of their clothes and home products. They also knowledgeable and have efficient service at a fair price.
2.3 Product Characteristics 2.3.1 Ladies Department (includes apparel and accessories) Type : Tops and Blouse, Pants, Skirt, Inner Wear, Handbags and Purse Price Range : RM 10 RM 100 Unit per Sale : Single
2.3.2 Gents Department (includes apparel and accessories) Type : Shirt, T-Shirt, Pants, Inner Wear, Belt and Wallet Price Range : RM 10 RM 200 Unit per Sale : Single
2.3.3 Juniors Department (for teens and young adults) Type : Tops and Blouse, Shirt, T-Shirt, Pants, Skirt, Inner Wear Price Range : RM 10 RM 50 Unit per Sale : Single
2.3.4 Children Department Type : Shirt, T-Shirt, Pants, Skirt Price Range : RM 10 RM 50 Unit per Sale : Single 5
SITUATION ANALYSIS REJECT SHOP 2.3.5 Cosmetics and Fragrances Type : Men and Women Perfume Price Range : RM 10 RM 200 Unit per Sale : Single
2.3.6 Home Product Type : Floor Mat, Curtain, Towel, Small Pillow, Table Runner Price Range : RM 10 RM 50 Unit per Sale : Single
2.3.7 Packaging
Reject Shop Plastic Bag
2.4 Product Range 2.4.1 Ladies Department (includes apparel and accessories) Various colors and designs based on what women desire of to dress like sophisticated grownups, which works in favor of being modest and chic. Apparels are available in all size from XS to XXL.
SITUATION ANALYSIS REJECT SHOP 2.4.2 Gents Department (includes apparel and accessories) Various colors and designs based on what men desire of to dress like sophisticated grownups, which works in favor of being modest and chic. Apparels are available in all size from XS to XXL.
2.4.3 Juniors Department (for teens and young adults) Various colors and designs based on what teens desire of to dress like sophisticated young adults, which work in favor of being modest and chic. Apparels are available in all size from XS to XXL.
2.4.4 Children Department Various colors and designs based on what parents desire of for their children dress like sophisticated kids, which works in favor of being modest and chic. Apparels are available in all size from baby to 6 years old kids.
2.4.5 Cosmetics and Fragrances Various scents and bottle designs based on what women and men desire of for their daily use, work and occasionally events. Perfume bottle are available in all size from small to big.
2.4.6 Home Product Various colors and designs based on what consumer desire of for their home decoration. Home products are available in all size from small to big.
2.5 Distribution Distribution of Reject Shop clothes direct retailing global branded garments which are off-season, discontinued stocks or late order cancellation stocks from the manufacturer/factory, without intervention of importers or other links. They usually purchase products in bulk, whereby they have huge stocks in the shop. That makes it possible to keep the costs low, which you see at the final price. The cheap clothing is 100% original and of good quality. Sometimes the labels of the clothes have been removed.
SITUATION ANALYSIS REJECT SHOP 2.6 Product Life Cycle Sales
Period Start Growth Peak Decline
Product life cycle of Reject Shop is still growing and expanding.
2.7 The Brand Reject Shop is a home grown Malaysian chain store within the Metrojaya group of companies which focuses on retailing global branded garments which are off-season, discontinued stocks or late order cancellation stocks. Shoppers wanting good quality garments at great value can also look forward to Metrojayas own developed quality merchandise. Well-known brands from the USA, Europe and Australia find their way onto the shelves of Reject Shop, enabling the store to offer mens, ladies, and childrens apparel across a full range of sizes. Since its introduction in 1990, Reject Shop now operates a nationwide chain of stores and outlets at leading shopping locations.
2.8 Brand Image and Implication Although already in market for almost 23 years but still have customers who not aware of the existence of Reject Shop in Malaysia. This happens because of lack of live exposure and advertisement about their brand. The market situation or business are competitive and doing just fine compare with its competitors.
2.9 Strength and Weakness 2.9.1 Strength Variety of women, men and kids apparels Affordable price Good quality Comfortable to wear Sell larger (European) sizes 8
SITUATION ANALYSIS REJECT SHOP 2.9.2 Weakness Bad clothes display at store Lack of promotion via media such as television, radio, etc. Lack of exposure to the public Customer tends to more buy other brand because their perception of Reject Shop brand is not really good at quality Not official website for more information of the brand and promotion
2.10 Advantages and Disadvantages 2.10.1 Advantages Any level of economic group of people afford to buy the clothes
2.10.2 Disadvantages Too competitive in the clothes industry from others clothes outlets
2.11 Unique Selling Proposition (USP) The prices way down, so you get superior and value for money designs.
2.12 Promotional History and Advertising Schedule 2.12.1 Timeline History 14 April 2010 9 May 2010 : Mothers Day Promotion at Reject Shop 1 - 20 June 2010 : Fathers Day Treat 8 - 13 June 2010 : Clearance Sale 5 August 2010 19 September 2010 : Raya Deals 4 - 31 October 2010 : Reject Shop 9Avenue Putra Nilai Opening Specials 24 - 28 November 2010 : Warehouse Sale 18 20 January 2011 : Reject Shop Opening Special @ Bintang Megamall at Miri, Sarawak 25 January 2011 - 6 February 2011 : Reject Shop Summit USJ Exclusive Promotions 28 March 2011 : Fabulous Deal 21 April 2011 - 8 May 2011 : Spring Promotion 25 April 2011 31 May 2011 : Price Cut Campaign 25 29 May 2011 : Warehouse Sale 23 June 2011 : Launching of Liverpool FC Asia Tour 2011 Merchandise 9
SITUATION ANALYSIS REJECT SHOP 22 31 July 2011 : Branded Sale 10 September 2011 30 October 2011 : Reject Shop 21st Anniversary Celebration Specials 7 16 October 2011 : Promotion 25 October 2011 : Reject Shop Discount Card Launch 30 November 2011 4 December 2011 : Warehouse Sale 17 March 2012 1 April 2012 : Reject Shop Miri Anniversary Promotion 28 March 2012 1 April 2012 : Warehouse Sale 12 22 April 2012 : Warehouse Sale 16 29 April 2012 : Clearance 26 April 2012 6 May 2012 : Warehouse Sale 26 April 2012 - 10 Jun 2012 Exclusive French Designer US Beach Wear 10 20 May 2012 : Warehouse Sale 25 May 2012 10 June 2012 : Clearance 1 30 June 2012 : Promotion 11 17 June 2012 : Fathers Day Promotion 15 June 2012 2 September 2012 : All Liverpool Product at 70% Less 22 June 2012 26 July 2012 : Reject Shop Mega Sale 2 15 July 2012 : Renovation Sales @ Subang Parade 4 - 8 July 2012 : Raya Sale 10 July 2012 2 November 2012 : Super Sale 28 July 2012 21 August 2012 : Raya Sale 8 August 2012 : Home Item Special Raya Promotion 10 - 21 August 2012 : 15 Min Further Slash Promotion 22 August 2012 2 September 2012 : Fashion Fair 31 August 2012 : Coloring Contest 2 September 2012 : Reject Shop Fashion Show 14 September 2012 : Baby Apparel Fair 14 September 2012 12 October 2012 : Cute Baby Contest 2012 26 - 30 September 2012 : Warehouse Sale 19 October 2012 18 November 2012 : T-Shirt Carnivale Sale 19 October 2012 30 November 2012 : T-Shirt Carnivale Facebook Contest 10 November 2012 - 2 December 2012 : Year End Sale 3 December 2012 - 1 January 2013 : Festive Sale 5 - 9 December 2012 : Warehouse Sale 6 December 2012 - 1 January 2013 : Year End Sale 28 December 2012 1 January 2013 : Opening Specials 8 10 January 2013 : Reject Shop Card Members Special 11 January 2013 11 February 2013 : Red Sale 12 February 2013 15 March 2013 : Shop & Win Contest 16 March 2013 - 7 April 2013 : Grand Prix Sale 27- 31 March 2013 : Warehouse Sale 12 April 2013 22 May 2013 : Colors Carnival 25 May 2013 23 June 2013 : Reject Shop Now Open @ CityONE Megamall Kuching. 10
SITUATION ANALYSIS REJECT SHOP 25 May 2013 23 June 2013 : Red Sale 4 - 18 June 2013 : My Cool Dad Contest 29 June 2013 1 September 2013 : 1Malaysia Mega Sale Carnival by Reject Shop 3 - 7 July 2013 : Warehouse Sale
2.12.2 Print Ads
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2.13 Positioning Statement Reject Shop is meeting customers needs for everyday wear with the prices way down, so you get superior and value for money designs.
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CHAPTER 3 THE COMPANY
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Chapter 3 : The Company

3.1 Company Overview Metrojaya is a popular retail company in Malaysia which offers items at a medium-to-high rate. Ever since the opening of their first store at Pertama Complex, Kuala Lumpur in September 1976 with a retail space of 18,305 sq ft (1,705 sq metres). The Metrojaya department stores have established a sterling reputation for itself in the Malaysian retailing industry. Metrojayas latest outlet, in Berjaya Times Square closed in December 2009 after only three years of operation. Metrojaya currently has five outlets in Peninsular Malaysia namely Mid Valley Megamall, Plaza Pelangi, Island Plaza, Bukit Bintang Plaza and The Curve, Mutiara Damansara. The group operates a chain of seven department stores and over 70 specialty stores that occupy over one million square feet of floor space including Cape Cod, East India Company, Living Quarters, Reject Shop and Somerset Bay.
3.2 Business Description The company is principally involved in operating departmental stores and investment holding whilst its subsidiary companies are principally involved in property holding, investment holding as well as the operating of specialty stores and general merchandising stores. Metrojaya department stores offer a wide range of merchandise that caters to the needs and tastes of middle and high income groups. The group operates five department stores, one hypermarket store under the Cosmart name at the Bukit Jambul Complex in Penang and one MJ by Metrojaya Fashion Concept Store at The Curve in Mutiara Damansara. The cornerstone of their success has been their continued commitment towards designing a distinctive shopping environment for their customers, offering exclusive yet affordable fashion and household goods which go beyond the ordinary.
3.3 Company History Metrojaya was incorporated in Malaysia on December 31, 1974 under the name of Metrotex Sendirian Berhad. The company changed its name to Metroraya Sendirian Berhad on May 25 th, 1975 and subsequently to Metrojaya Sendirian Berhad on February 10, 1976. On June 28, 1990, the company was converted to a public company and became Metrojaya Berhad. The company was then admitted to the Official List of the Main Board of the Kuala Lumpur Stock Exchange on January 9, 1991 until its shares were delisted and removed from the Official List of Bursa Securities with effect from 9:00 a.m., Friday, 31 March 2006. Metrojaya Berhad has an Authorised Share Capital of RM300,000,000 ordinary shares of RM1.00 each and an Issued and Paid up Capital of RM126,000,000 ordinary shares of RM1.00 each.
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SITUATION ANALYSIS REJECT SHOP Metrojaya commenced business operations in September 1976 with the opening of its pilot Department Store with an area of 18,350 sq ft at the Pertama Complex, Jalan Tunku Abdul Rahman in Kuala Lumpur. Since the opening of this first store, the Metrojaya chain has grown from strength to strength with a present total number of seven department stores covering a total floorspace of approximately one million sq ft. It is a leading Department Store operator in Malaysia, offering a wide range of fashion lifestyle apparel and merchandise to an ever widening base of loyal and valued customers. The company has successfully ventured into the specialty stores sector with the debut of Toys R Us in October 1987, East India Company in November 1989, Reject Shop in July 1990, Living Quarters in August 1994, Somerset Bay in August 1994, Cape Cod in 2005 and conducted the operations of the La Senza Girl franchise from January 2002 through to 2005 and Laura Ashley in November 2007. The company has also ventured into the hypermarket sector through the Cosmart hypermarket in Bukit Jambul, Penang which opened in 1997, and into the Fashion Concept Store sector through the first MJ by Metrojaya store opened at The Curve Mutiara Damansara in May 2006 and Gurney Plaza in 2008. As at today, the Metrojaya specialty store network comprises over 60 outlets located at popular shopping destinations across Malaysia.
3.4 Key People 3.4.1 Key Executives for Metrojaya Berhad Name Board Title Relationships Fook Hee Heng 17 Chief Executive Officer and Executive Director Relationships Ah Choy Leong No Assistant General Manager - Finance and Assistant Relationships General Manager Accounts Tiew Cheo Sin No General Manager of Properties & Operations Relationships Hong Cheung No Head of Merchandising - Department Stores Relationships Cheng Keow Kuan No Divisional Head - Merchandising - Living Quarters Relationships Eng Gaik Teoh No Divisional Head - Merchandising - Somerset Bay / La Relationships Senza Girl
Age 53 51 -
3.4.2 Metrojaya Berhad INSIDERS ON Board Members Name Board Title Relationships Fook Hee Heng 17 Chief Executive Officer and Executive Director Relationships
Age 53
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3.4.3 Other Board Members On Board Members Name Board Type of Relationships Board Members Ahmad Bin Mohd 18 Yusoff Relationships Mohd Bin Mohd 20 Zain D.S.P.N., Relationships D.I.M.P. Farizon binti 13 Ibrahim Relationships Chon Hee Ngui 10 J.S.M., K.M.N., Relationships S.M.T. Abdul Zain 12 Relationships Lian Tee Tan 8 M.B.A., F.C.I.I., Relationships F.M.I.I. Kay Peng Khoo 87 PSM, DPMJ, KMN, Relationships JP, Hon.D Litt., Hon. LLD, Hon. Ph Choung Yau Chan 11 Relationships
Primary Company
Age
Johan Holdings Bhd Brahim's Holdings Berhad
71 69
Pan Malaysian Industries Berhad Pan Malaysian Industries Berhad
56 79
Scomi Group Bhd Malayan United Industries Berhad
90 59
Malayan United Industries Berhad
74
Malayan United Industries Berhad
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3.4.4 Audit Committee of Metrojaya Berhad Name Board Title Relationships Ahmad Bin Mohd 18 Chairman Yusoff Relationships Lian Tee Tan 8 Non Independent Non-Executive Director M.B.A., F.C.I.I., Relationships and Member of Audit Committee F.M.I.I.
Key Development -
3.4.5 Compensation Committee* Name Board Relationships Ahmad Bin Mohd 18 Yusoff Relationships Chon Hee Ngui 10 J.S.M., K.M.N., Relationships S.M.T.
Title Chairman Non Independent Non-Executive Director
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Key Position
Industry Range No Compensation vs. Industry data is available for 3441.
3.4.6 Nominating Committee* Name Board Relationships Ahmad Bin Mohd 18 Yusoff Relationships Chon Hee Ngui 10 J.S.M., K.M.N., Relationships S.M.T.
Title Chairman Non Independent Non-Executive Director
Key Development Metrojaya Redesignates Heng Fook Hee as CEO and Tan Lian Tee as NonIndependent Non-Executive Director
3.5 Location and Subsidiaries 3.5.1 Headquartes MJ Department Stores Sdn Bhd 3rd Floor Menara PMI, 2 Jalan Changkat Ceylon, 50200 Kuala Lumpur, Malaysia. Tel : 1800 88 8865 Fax : 03 2117 5988 General Email : hod.marketing@metrojaya.com.my
3.5.2 Department Store Metrojaya Mid Valley Megamall, Kuala Lumpur Tel: 03 - 2283 3002 Fax: 03 - 2283 2369 Email: storemanager.midvalley@metrojaya.com.my Metrojaya Bukit Bintang Plaza, Kuala Lumpur Tel: 03 - 2144 1751 Fax: 03 - 2144 1073 Email: storemanager.bktbintangplaza@metrojaya.com.my Metrojaya The Curve, Selangor Tel: 03 - 7728 2230 Fax: 03 - 7725 6233 22
SITUATION ANALYSIS REJECT SHOP Email : storemanager.thecurve@metrojaya.com.my Metrojaya Danga City Mall, Johore Bahru Tel: 07 - 222 9108 Fax: 07 - 222 9073 Email: storemanager.dangacitymall@metrojaya.com.my Metrojaya Plaza Pelangi, Johore Bahru Tel: 07 - 333 5616 Fax: 07 - 333 6455 Email: storemanager.pelangi@metrojaya.com.my Metrojaya Suria Sabah Shopping Mall, Sabah Tel: 088 - 484 352 Fax: 088 - 484 031 Email: storemanager.suriasabah@metrojaya.com.my Metrojaya CityOne Megamall, Kuching Tel: 082 - 532 990 Fax: 082 - 532 996 Email: storemanager.mjc1k@metrojaya.com.my
3.5.2 MJ Outlet MJ Outlet @ Brem Mall, Kepong Tel: 03 - 6250 0392 Fax: 03 - 6250 0400 Email: storemanager.bremmall@metrojaya.com.my
3.6 Brands, Major Products and Services Metrojaya is developing a brand and already expand into international level. Their brands include Laura Ashley , Somerset Bay, East India Company, Living Quarters, Cape Cod, Emanuelle Passages, Zona and Reject Shop. For major products, they are more to fashion apparels and talk about service, what they more focusing is customer service which they ensuring the delivery services is perfect with a big Thanks and they keep updating & replying all customer in social networks medium such as Facebook pages.
3.7 Corporate Vision Providing customers with the best and creating a shopping experience of first choice.
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3.8 Corporate Mission We will strive to be leading, thoroughly professional and genuinely caring retail group . In all that they do. They will provide the best merchandise, sales and service experience for their customers. They will do this in a way that will foster the continuous improvement of their people and their company. They will strive to be a leading Retail Group when measured against appropriate business standards of performance in every function, in every department, in every outlet. We will pursue quality and profitability with the aim to stay in business and provide jobs for our people. The development of their people is essential to their growth and future success. They will provide them with training to encourage long term employment and professional advancement. We will strive for constant improvement and innovation in all that we do. They will earn and re-earn the goodwill, trust and confidence of their customers and colleagues every day. The highest ethical standards will guide everything they do. They will strive to achieve Excellence in Service, Efficiency in Management and Integrity in their Business Dealings. Our suppliers are important to our success. They will establish long term relationships with suppliers whose values and quality are consistent with them.
3.9 Companys Current Promotional Metrojaya now have added 4 new brands under their company which is Burberry Body where it focuses more to fragrance for women. Decleor's Aromessencetm is a serum for face and body. Husk's Ware is carries a full range of dining ware. Trudy & Teddy are apparels for the precious little ones, created for the babies. Husk's Ware and Trudy & teddy are already available at the Metrojaya Mid Valley Megamall. Metrojaya Go Green Winner - TheSun, 29 July 2011 Reject Shop is the official retailer for the Liverpool Football Club Asia Tour 2010 merchandise Star, 28 June 2011 Metrojaya family day with children from Sanctuary Care Centre - Sinar, 22 June 2011 Metrojaya "Go Green" campaign: Eclimo electric m-bike up for grabs - New Straits Times, 31 May 2011 Laura Ashley's H1 net profit up on higher sales - Star, 21 September 2010 Metrojaya Bukit Bintang; Trendier store after facelift - Star (metro), 20 August 2010 Metrojaya Bukit Bintang Plaza; Best of the old and new - New Straits Times, 18 August 2010 Metrojaya Cheque Presentation of RM20,000 to Rumah Kanak Kanak Angels - The Star Metro, Fri 21 May 2010 & New Straits Times, Sat 22 May 2010 Ang Pow Bonanza Prize Presentation - New Straits Times, Fri 26 Mar Metrojaya Boosts Efforts To Make KK a Shopping Haven - The Borneo Post, 4 Dec 2009 24
SITUATION ANALYSIS REJECT SHOP Metrojaya Opens at Suria Sabah Today - The Borneo Post, 3 Dec 2009 Metrojaya : New stores will drive up sales - New Straits Times, 12 Jan 2009 Metrojaya Cheque Presentation of RM27,000 to Rumah Kanak Kanak Angels, KL - Star, 2 April 08 Laura Ashley Profit Surges 62pc - New Straits Times, 2 April 08 Laura Ashley : Retailer Of The Year Award - Star, 2 April 08 Metrojaya to invest RM10mill in second JB store - Star, 29 March 08 Laura Ashley : Outrunning The Big Boys - Star, 23 March 08 Metrojaya Cheque Presentation of RM27,000 to Eden Handicap Service Centre, Penang Oriental Daily, 8 March 08
3.10 Product Sales History The information is confidential.
3.11 Current Marketing Objective 3.11.1 Short Term To reinforce all their brand into all Malaysians top of mind. Increase sales for all their brands via social media and promotions. Increase brand awareness among all Malaysians.
3.11.2 Long Term To accelerate further development in international markets. To be one of the top company in providing fashion apparels and home ware in Malaysia. Expanding more brands Sustain markets interest and maintain sales.
3.12 Media Expenditure Mostly appear in newspapers.
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CHAPTER 4 CONSUMER AND STAKEHOLDERS
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Chapter 4 : Consumer and Stakeholders

4.1 Current Consumers Characteristics 4.1.1 Demographics Age : 1828 years old Gender : Male and female Education : High school and above Occupation: Student, housewife, working adult Income range: Allowance (RM 10-RM 100), workers (RM 100-RM 1000) Race & ethnicity : All races and ethnicity Geographical location : Urban
4.1.2 Psychographics Perception: Finding clothes that have a good quality and comfortable to wear with no budget Learning: Friends, family, TV ads, magazines, newspaper Motivation & needs: Quality clothes with affordable price Attitude & Personality: Willing to try new brand Lifestyle: Casual, active, easy going and constantly changing
4.2 Stakeholders Characteristics 4.2.1 Primary Chairman. Set Up the company goals. Collaborate with the board of directors to direct the company development. Boards of Directors. Directing the employees of the company to achieve organization goals. Bankers. Responsible for establishing and maintaining positive customer relationships, planning and delivering effective sales strategies and monitoring the progress of new and existing financial products. Shareholders. Investing money to the company in interest of a share on its profit. Employee. Contributing to the company in cooperation with their directors, in exchange for the wages to support their lives. Consumers. Spending money for the goods produced by the company if they are in good quality or with a good branding, which contribute to the company revenue.
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4.2.2 Secondary Media and Journalist. Setting up company goals and supervising company development on collaboration with the boards of directors. Distributors. Aids the distribution of the goods produced while earning from the service provided. Retailers. Aids the selling of the goods products directly to customers.
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CHAPTER 5 INDUSTRY AND MARKETPLACE
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Chapter 5 : Industry and Marketplace

5.1 The Industry 5.1.1 Definition of the Industry Retailing is a business of selling goods to important customers for personal, family and household use. Retailers are business firms which involves in offering goods and services directly to consumers. The function of overlooking the wholesale and retail sector falls under the supervision of the Ministry of Domestic Trade and Consumer Affairs (MDTCA) through the Committee on Wholesale and Retail Trade. The Committee was born in 1995 to control the industry, including foreign participation in the sector. Authorization for foreign companies to set up or opening wholesale or retail operations locally or relocate the branches is needed from the Committee.
5.1.2 Shape of the Industry The retail environment in Malaysia has been through a continuous change in the past 10 years. The retail division in Malaysia contains complicated blend of many changing forms of economic behavior and organization apparent such as hawkers, street traders, small family business, wet and dry markets, night markets, bazaars and supermarkets. But the retailing in Malaysia was growing to be more mature. Retailing industry is expanding as retailers with growing retail brands in Malaysia offering a wider choice to consumers in both brands and styles. The Malaysian retail industry is floating with strong retail growth of12.8% in 2007, the highest since 1992 while private consumptions pending grew at 11.7%. With slowdown economy and the increasing prices of basic products, the consumers begin to limit their spending as they facing financial difficulties
5.1.3 Development of the Industry After the recession hits the economy of Malaysia in year 2008 and 2009, 2010 finally has witnessed economic recovery. The purchasing power is slowly growing of both local and international consumers due to spending from pent-up, restricted, suppressed demand and increasing tourist arrivals. Retailing had a healthy growth in 2010. But with many uncertainties shadowing global economy, economic environment still remained challenging. Thus, retailers resumed they proceed their expansion plans in a moderate way, while consumers spent cautiously. Foreign retailers getting stronger reputation as the consumers demanding more choices from retailing and getting more international tastes. This has made the retailing in Malaysia more competitive and saturated. GCH Retail, Tesco Stores, AEON Co and Carrefour 30
SITUATION ANALYSIS REJECT SHOP Magnificent Diagraph foreign retailers are rapidly growing in Malaysia and replacing many local leading players in retailing. In2010, The Store Corp, Econsave Cash & Carry, Parkson Corp were the only three local players who in the top 10 list of value share.
5.2 The Marketplace 5.2.1 Current Condition of the Marketplace Nowadays, there are intensive competitions in the market of retailing industry in Malaysia. Since the existing brands that always distribute new design, new colors, and new concept. All brands are trying to give different approach to win consumer attention. Reject Shop itself, has getting tough competition. Factory Outlet Store (F.O.S), Brand Outlet and PDI are the biggest competitors to Reject Shop. Consumers rather buy other brand because the felt established brand is more quality than Reject Shop. Even though Reject Shop is against the dominant market, but the unique and outstanding beneficial orgasm that provided by Reject Shop has become its unique selling proposition.
5.2.2 Changes in Marketplace 5.2.2.1 Positive Competitors that are already exist in the market make the company to put extra effort in producing quality product, boosting the growth of the whole industry. Consumers aware with the new brand establish.
5.2.2.2 Negative Big company able to invest more on the media expenditure to advertise and promote their products. As the technology and electric media develop further, Malaysians are slowly becoming more conscious about their appearances as fashion trends is introduced to them easily by the advance technology and surrounded by media in urban areas.
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CHAPTER 6 COMPETITIVE SITUATION
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Chapter 6 : Competitive Situation

6.1 Direct Competitors
Factory Outlet Store (F.O.S) is one of the Reject Shop biggest competitors. F.O.S is an established clothing retail chain that specializes in imported stock lots and overruns. The inaugural opening of its outlet in Sunway Pyramid in 1997, during the infamous economic crisis in Malaysia, marked the birth of F.O.S. From that single outlet in Sunway Pyramid, F.O.S has grown to a total of more than 50 outlets to date throughout major shopping complexes located in the Peninsular as well as Sabah & Sarawak. Our number of outlets is constantly growing with the opening of each new major and exciting shopping complex throughout the country. It is a little known fact that F.O.S is locally established. In fact, people are astonished that F.O.S is of local origin and very much home grown. The success story lies in the very concept of F.O.S itself. A wide range of clothing and accessories are made available at an affordable price at F.O.S. Strengths Established brand and having countless of outlets in Malaysia. Provide online stores for customers to buy via online. Comes with joyful concept.
Weakness Easy to out of stock, especially for big size
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Brands Outlet is the personification of shopping convenience, variety and affordability. We gave life to these underlying ideas by translating it into a brand experience in-store. As an all-in-one store, we offer a variety of brands, styles and items for men, women and children. Another feature of Brands Outlet is that the store layout is designed to make the shopping experience easy and fun. Our well-organized and well-stocked aisles showcase extensive options within each product category. To top it off, we are big on value for money shopping, offering promotions and value buys year round. Shopping just doesnt get any better. Strengths Established brand and having countless of outlets in Malaysia. Garnered a huge capacity of loyal customers.
Weakness Easy to out of stock, especially for big size.
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PDI
PDI is about fuss-free fashion as encapsulated in our tagline Basics with Style. We strip away the rules and complexities of the ever-changing fashion world by offering smart, simple basics like denims, jeans, T-shirts, jackets, shirts, polo Ts and accessories. PDI takes the guesswork out of fashion and being fashionable. It offers the fundamentals of any wardrobe for him and her that are updated from season to season to reflect new trends in style, fit and colors but without detracting from its to-the-point design message of fashion for all. Strengths Established brand and having countless of outlets in Malaysia. Good at promotion. Have establish own PDI for Kids.
Weakness Simple design No big size
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SITUATION ANALYSIS REJECT SHOP 6.2 Indirect Competitors
From the catwalk to the shop floor, Cotton On delivers fast fashion for style savvy guys and girls. Collections incorporate globally relevant trends at stunningly low prices; you'll find everything from tanks to cardis, dresses to jackets and a whole lot in between. With 600 stores around the globe, Cotton On is taking the world by storm. Strengths Established brand and having countless of outlets in Malaysia. Good at promotion. Garnered a huge capacity of loyal customers.
Weakness Expensive
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CHAPTER 7 SWOT ANALYSIS
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Chapter 7 : SWOT Analysis

7.1 Strength Consider as affordable price on market in Malaysia. Any level of economic group of people afforded to buy the product. Available in almost every state shopping mall in Malaysia. Sell larger (European) sizes. High quality products at reasonable price. Comfortable vibrant products.
7.2 Weakness The packing is too simple. Lack of promotion via media. Brand awareness is not strong enough. Advertising in Facebook pages and store is not so powerful. People doubt about their quality because of their low price.
7.3 Opportunity Affordable and reasonable prices of the products. Ideal for people who looking for apparels and accessories with tight budgets.
7.4 Threats Too many competitions among local and international retail brands. The market demand for Reject Shop is still low.
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CHAPTER 8 STRATEGIC TARGET AUDIENCE
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Chapter 8 : Strategic Target Audience

8.1 Proposes Primary Target Audience 8.1.1 Demographics Age : 2025 years old Gender : Male and female Education : College and higher Occupation: Student, housewife, working adult Income range: Allowance (RM 50-RM 500), workers (RM 500-RM 1500) Race & ethnicity : All races and ethnicity Geographical location : Urban, Sub-Urban
8.1.2 Psychographics Perception: Finding clothes that have a good quality and comfortable to wear with no budget Learning: Friends, family, TV ads, magazines, newspaper Motivation & needs: Quality clothes with affordable price Attitude & Personality: Willing to try new brand Lifestyle: Casual, active, easy going and constantly changing
8.2 Proposes Secondary Target Audience 8.2.1 Demographics Age : 2635 years old Gender : Male and female Education : Working adults Occupation: Housewife, working adult Income range: RM 1000-RM 4000 Race & ethnicity : All races and ethnicity Geographical location : Urban, Sub-Urban
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SITUATION ANALYSIS REJECT SHOP 8.2.2 Psychographics Perception: Finding clothes that have a good quality and comfortable to wear with no budget Learning: Friends, family, TV ads, magazines, newspaper Motivation & needs: Quality clothes with affordable price Attitude & Personality: Willing to try new brand Lifestyle: Casual, active, easy going and constantly changing
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CHAPTER 9 RESEARCH DEVELOPMENT
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Chapter 9 : Research Development

9.1 Marketplace research 9.1.1 Reject Shop Outlets
Summit USJ
IOI Mall Puchong
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Alamanda Putrajaya
9.2 Market Observation
Mostly customer came here is women average 20-35 years old, men average 20 - 30 years old and some old couple average 40 above years old.
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SITUATION ANALYSIS REJECT SHOP 9.3 Online Survey The online survey is conduct from 12th 16th July 2013, with a total of 155 participants for 5 days. The result is positive. The aims are to analysis and investigate people perception towards Reject Shop brand. 9.3.1 What is your gender?
Male 41% Female 59%
9.3.2 What is your age group?

1% 1% 14% Below 20 21 - 30 31 - 40 84% 40 above
9.3.3 What is your profession?

SecondaryStudent Housewife 4% 1% Employee 23%
College/University Student 72%
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SITUATION ANALYSIS REJECT SHOP 9.3.4 What is your monthly income?

Allowance Below RM1000 RM1000 - RM1500 RM1500 - RM2000 Above RM2000
10% 11%
12%
57%
10%
9.3.5 Does brand matter to you?
No 41% Yes 59%
9.3.6 Approximately, how many times do you buy your clothes?

Rarely Occasionally As the nees arise During the festivities During the sales period Once a month Once every 2 weeks Once a week 0 18 24 66 34 50 47 14 2 10 20 30 40 50 60 70
9.3.7 Approximately, how much do spend for your clothes?

70 60 50 40 30 20 10 0 Below RM100 RM100 - RM200 RM200 - RM300 RM300 - RM400 RM400 & Above 20 10 5 54 66
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SITUATION ANALYSIS REJECT SHOP 9.3.8 Which fashion style do you prefer?
Covering Awrah Feminine Elegance Modest Stylist Casual Simple 0 20 40 60 80 100 26 33 35 55 89 106 120 45
9.3.9 Among of these few brand, which will you go for?

80 60 40 20 0 F.O.S Brand Outlets Reject Shop Cotton On Padini Uniqlo 54 44 71 66 65 61
9.3.10 Do you recognize Reject Shop?
No 8%
Yes 92%
9.3.11 Where did you hear about Reject Shop?

Never Newspaper Magazines Website/Blog Social Media Friend/Relatives 0 20 40 60 80 100 120 140 1 3 4 10 55 145 160
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SITUATION ANALYSIS REJECT SHOP 9.3.12 Have you visited Reject Shop before?
No 8%
Yes 92%
9.3.13 Have you purchased any items from Reject Shop?
No, 34% Yes, 66%
9.3.14 If No, why?

60 50 40 30 20 10 0 Low quality Design of clothes Price Customer Service Store Atmosphere 20 12 2 53 40
9.3.15 What can Reject Shop improve to achieve brand awareness?

Store Atmosphere Customer Service Quality Price Branding Promotion Advertising 0 20 40 60 80 100 120 70 100 105 135 140 160 35 100 95
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SITUATION ANALYSIS REJECT SHOP 9.4 Interview An interview was conducted in order to get more details about the company and the brand itself. The interview was done by email and talking through phone calls. The first and second email was rejected and ignored by the marketing. But after several calls to marketing, they finally shared some basic info to me thru phone.
9.5 Others Several methods had been applied in order to get sufficient information for better understanding and research development. Other than internet resources searching, on ground research had been done by visiting to the outlet store. I had also bought the products for research purpose and trying to experience it from the perspective of a consumer.
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CHAPTER 10 PRECEDENT STUDIES
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Chapter 10 : Precedent Studies

10.1 Advertising Strategy 10.1.1 Promotion and voucher
10.1.2 Contest
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SITUATION ANALYSIS REJECT SHOP 10.2 Precedent Studies 10.2.1 Concept Store
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SITUATION ANALYSIS REJECT SHOP 10.2.2 Website
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CHAPTER 11 REFERENCES
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11 : References
Metrojaya website http://www.metrojaya.com.my Reject Shop Facebook page https://www.facebook.com/REJECTSHOPMY Bloomberg Businessweek http://investing.businessweek.com Wikipedia http://en.wikipedia.org/wiki/Metrojaya F.O.S website http://fos.com.my/ F.O.S Facebook page https://www.facebook.com/factoryoutletstore Padini Holdings Website http://www.padini.com/
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CHAPTER 12 APPENDICES
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Chapter 12 : Appendices
12.1 Online Survey
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SITUATION ANALYSIS REJECT SHOP

CHAPTER 1 PROJECT OVERVIEW