Revamping Makro
A paper presented
to Mr. Mauricio
Evangelista, Marianne Joyce M.
Lim, Eric Darryl N.
Ong, Valerie
10524452
10514503
10609717
Rocafor, Shirley C.
10506284
Teh, Germaine Larisse Y.
10537317
September 3, 2009
Introduction
In the past, city markets were the ideal destination for cheaper and fresher goods.
As companies who wish to purchase the best parts from the stock, they would go to the
market early in the morning for such. At times, the demands are high and the prices
skyrocket, on the other hand, there are times that the company may buy nothing at all due
to stocks running out of stock.
In the establishment of Pilipinas Makro, it has provided a solution for these
companies through a membership-based wholesale buying that provides inexpensive yet
fresh goods. Hotels and restaurants would flock to Makro and purchase hundreds of
poultry or beef, for instance, as products bought from Makro are usually priced lower
than in the local market. At the same time, buyers benefit from more quantities as Makro
usually sells in bulk – a better deal altogether. It is a “warehouse type of a department
store
which
offer
low
wholesale
prices
to
its
members"
(http://www.manilablog.com/makro-versus-sm-hypermart/).”
Trends change and competitors naturally spring up out of good business. After the
recent success of Makro, many other similarly structured companies have followed its
path and even improved on the Makro cash and carry type system, thereby making their
competitors more modern in amenities and services provided. This had led to the present
stand of Pilipinas Makro.
Problem Trigger
Given this scenario, the problem trigger to deliberate is: “You have been
appointed Vice President Corporate Planning by Makro”.
KIND Template
K
You
Have been
I
N
maybe Hans Sy appointed Who appointed you? Why
you
"you"? Is "you" a leader?
Why "you"? Are you a new or
pirated employee? How long
maybe you were appointed
have you been in the
by Makro Board of
corporation? Who was your
Directors
previous employer? Were you
promoted?
maybe the appointment
was made last year
When was the appointment
done?
maybe the appointment
For what reason was "you"
was made in the middle of
appointed?
acquisition
D
Internet research on
possible changes in
Makro Structure
Internet research on
possible changes in
Makro Structure
Appointed
When was the acquisition and Research through
Maybe Makro was acquired
by whom? Why was Makro
internet news articles
by a corporation
acquired?
and interviews
maybe you were appointed Why were you appointed? And
Internet research
by SM Management
by whom?
Maybe you were appointed
by Makro management
maybe as VP, you have
certain duties and
Vice President
responsibilities to both
Makro and SM
maybe as VP, you are now
under SM
maybe you're appointed to
Corporate
do long term Strategic
Planning
plans
Makro
Why were you appointed? And Newspaper
by whom?
articles/archives
To whom does the VP report
to? What are the duties or
responsibilities of VP CP?
To whom does the VP report
to?
What are the future plans of
Makro?
maybe to plan and direct
business and
organizational operations
What does the department
contribute to Makro? What
happened to Makro?
maybe the Corporate
Planner sets goals and
realize goals
What is corporate planning?
What does a corporate
planner do?
maybethe Corporate
Planner sets the growth
plans of the company
What is corporate planning?
What does a corporate
planner do?
Internet research on
identity of VP CP
Internet research on
the ownership of Makro
Research through
internet news articles
and interview
Research on Corporate
Planning job
description; research
on internet articles
Research on Corporate
Planning job
description; research
on internet articles
Research on Corporate
Planning job
description; research
on internet articles
What is the financial standing
Makro financial
of Makro? Are they profitting
statements
or losing?
Internet research on
maybe Makro is like S&R
What exactly is Makro?
company profile from
but cheaper
website
Internet research on
maybe Makro is
What is Makro specifically?
annual report and
membership grocery
What does it offer to its
internet research on
shopping type of company customers?
company profile from
website
maybe Makro has been
Internet research on
How long has Makro been in
existing in the Philippines
company profile from
existing?
for more than 10 years
website
Research on it articles
What industry does Makro
of incorporation,
maybe it is into retail and
belong to? Who are the main research on the internet
wholesale
competitors of Makro?
and Makro's website,
and interviews
Is Makro a local, international,
Newspaper
maybe it is a local company multinational company? What
articles/archives
size is Makro?
What is the
maybe it is a private
vision/mission/goals of Makro? Articles of incorporation
corporation
Where is its principal place of and By-laws
business?
maybe Makro is losing
money
What is Makro Planning to do? Personal Interview with
maybe it has been acquired
What are their future plans?
Makro employees and
by SM
Did SM acquire Makro? Why? research on the internet
Why did it liquidate? Did they Research through
maybe it is in liquidation
encounter any problems?
internet news articles
maybe it has been in a
process of selling-out
Makro is an international
Dutch chain of stores
maybe majority shares
were sold to SM
Why is it selling-out? Did they Research through
encoutner any problems?
internet news articles
Research through
Who owns Makro?
internet news articles
and websites
Who are the stockholders of Research through
Makro?
internet news articles
Concept Map
(insert concept map)
Background and State of the Problem
Makro is a chain of self-service Dutch-German warehouse clubs, which are also
known as cash and carries. These stores have started branching out in Europe and later on
extended to America and Asia. Makro had the business open registered members only.
Currently, Makro Cash & Carry (UK division) and Today’s Group (a member-owned
organization providing benefits and value-for-money to the retailers and wholesales in
UK) joined to further become competitive in negotiations with suppliers.
Pilipinas Makro, which operates the Makro stores in the Philippines, originally
was a partnership between the Sy family’s SM group, SHV Holdings N.V. of the
Netherlands, and the Ayala group.
But in 2004 the Ayala group sold its 28-percent interest in Makro to its jointventure partners, and in late 2007 SM Investments folded the Makro stores into its
operations after it increased its ownership of Pilipinas Makro to 60 percent. The SM
group now holds 100 percent of Makro, but due to the economic slowdown in the
Philippines, in the next few years, all Makro outlets will be converted into SM
Hypermarkets.
In the years that have passed in Pilipinas Makro’s existence, the buying behavior
of consumers has changed. In the past, the only consideration was price and availability
of quantity and this seemed to play well in the favor of Makro. However, due to the rise
of other competitors and the economic slowdown, prices have been challenged and with
the passing times, the needs of the customers have also changed. Today, consumers have
become more demanding.
Another interview was conducted with a former purchaser of Makro, and
according to her, one of the terms they have SHV would be to maintain the name Makro
and to pay royalties. Prior to the year SHV-Makro Netherlands sold Makro Philippines to
SM, they also sold other Makro Asia’s stores such as Indonesia, Malaysia, & China. The
reason for SHV for these divestments is dispose their non- performing business and
concentrate in their core business in Europe which is “Scrap”. The interviewee further
believes that “eventually, Makro will no longer exist since the SM wouldn’t want to pay
the royalty anymore and since they are the strong leader in the retailing business here in
the country they will continue to expand to the fullest the name SM”. As of the moment,
SM is gradually converting Makro stores into SM Hypermart or Savemore. “The Sy
family’s holding firm initially would convert three Makro stores in Novaliches, Makati
and Mandaluyong into hypermarkets, said Robert Kwee, executive vice president of SM
Hypermarkets (Austria, 2009).”
Is Makro really that unprofitable? Is it the end for Makro and the start for SM
Hypermarts? Are all Makro outlets losing money? Will all sites for Makro be applicable
for conversion to SM? What is the corporate planner of Makro to do? How will he/she
save Makro? Can it still be saved?
Analysis
The Cash & Carry concept means pay in cash and take your goods away. The
business model is not meant for end users but a form of self-service wholesale that sells
to intermediaries and large commercial users on a membership basis. Communication is
based on direct mailing. Usually, the businesses buy goods for daily business needs in
bulk packaging.
The self-service concept is different from the traditional wholesale wherein the
customers in Makro would come to the store, pick-up the merchandise, and carry it away
themselves. It is beneficial in the following ways:
 The outlet provides a wide assortment of goods and becomes a one-stop shop for
customers to save time
 The permanent availability of goods and goods management system makes the
customer able to come back daily for fresh reinforcements without “out of stock”
problems as well as for contingency purchases
 Long business hours make it easier for the customer to shop seven times a week
Makro sells food and non-food products, usually located in different sections of
the store. Each store also contains a hot-food cafeteria, and a cash machine. The food half
always includes an in-store bakery, a wine section, fresh meat & butchery department,
and refrigerated aisles. The non-food half includes clothing, DIY, jewellery, office
supplies, electricals, computing, and seasonals, such as garden furniture.
Its target customers are the following:
- HoReCa – hotels, restaurants, and catering businesses (food products and
supplementary goods)
- Traders – small retail outlets, neighborhood stores, kiosks, and private entrepreneurs
(resale of goods)
- Other business users – office, service companies, government agencies, other
organizations (professional use of office equipment, detergents, etc)
Vision/Mission
Vision:
 To be the leading cash and carry distributor of Food and Non-Food products
Mission:
 The distribution of products with excellence in price, quality, and variety to
professional customers, offering them advantages and opportunities to growth.
 The employment of good and knowledgeable staff who will be trained to realize
the full potential of the Makro concept.
Competitors
Puregold
SNR
SM Hypermarkets
Strategic
Map/Group
Makro
Cash and Carry
SM Hypermarkets
Makro is ranged towards the class A to B sector.
SM Hypermarkets
As it is undoubtedly the main task of the corporate planner to handle the shift of
Makro stores into SM Hypermarkets, one must look into the nature of SM Hypermarkets
and learn about these more.
According to the SM Hypermarket website, it was first started in the late 90s by
none other than the now acquirer of Makro, the Sy family. It is said that the new business
entity of SM Group of companies was created “in response to the growing needs of the
market for more convenience.” (www.smhypermarket.com). The format of SM
Hypermarket is that it is a retail store that combines a supermarket with a department
store, a clear enhancement of Makro outlet’s lack of convenience. SM’s offering is more
convenient because its first-rate indoor wet market, food as well as general merchandise
store to provide one-stop shopping convenience for shoppers everywhere.The first known
branches of SM Hypermarkets are located in Sucat, Bicutan, and Marilao, and there are
now 15 hypermarkets all in Metro Manila.
The main aim and strategy of SM Hypermarket is to be “the PLACE to SHOP, the
PLACE to SELL and the PLACE to WORK” which highlights its emphasis on
convenience for its customers, customer and employee satisfaction.
Other competitors
Puregold Priceclub Inc. is engaged in the wholesale and retail business as well.
With the rise of such exclusive membership shopping malls, Puregold opened its doors to
the public without any membership requirements. It caters to the public specifically the
Class C and D in the society.
Internal and External Analysis
Internal Analysis
STRENGHS
 Wholesale buying
 Inexpensive goods
 Fresh goods everyday
 Usually prices are lower than in local market
 Sells by volume/ bulk making it cheaper
 Convenient and reliable (does not run out of stock)
 Clean and spacious
 Has strict standards, works well with suppliers to ensure that standards are met,
processes are improved and quality is good
 Has been existing for 14 years
 Former major owner has over 30 decades of experience in the self-service, cash
and carry distribution system
 Has an established name in the market
 Provides best buying conditions and products
 Suits the needs of hotels, restaurants, caterers and small retailers or sari-sari store
and service-end-users
 Offers over 28, 000 at the lowest wholesale prices to members
 Has a non-food and food department
WEAKNESSES
 Has limited number of stores
 Lacks popularity with the Filipino people






Lacks competitive strength
Inefficiency of the software
Supplier relationship under new management
Loss of key staff and employees
Bad location (i.e. in tondo near Smokey Mountain) hence reflects inferior
management decision
Policy membership- pinoy family oriented
External Analysis
OPPORTUNITIES
 Could target other markets
 Could improve on amenities and services
 People are now looking for cheaper goods given the economic slowdown
 Could increase stores in the provinces
 Acquired by SM group who is the Market leader (capital, resources, management
clout, advertising, people, technology, etc)
 Sources of suppliers will be streamlined and improved
 Management style and experience of SM with added financial resources
possibility of expansion
THREATS
 There exists some similar and more structured companies
 There exists aggressive, established, and known competitors
 More modern amenities and services of competitors
 Change of people's buying behavior
 Economic situation
 Seasonal market demand
 Vulnerable to attacks by competitors
 Trend of refillables, packs, and sachets
 Future foreign inventors
 Loss of reliable suppliers
Objectives
Core Objective
The general task of the corporate planner is to maintain the Makro outlets by growth in
outputs in market share and profits.
Corporate Planner’s Objective
According to Lorenzo (n.d.), a corporate planner’s goal is to contribute to the
economic development of a corporation through “business intelligence and global
competitiveness” by “practicing good corporate governance and social responsibility.”
Specifically, in business intelligence, according to Lorenzo, corporate planners should
know all the aspects of the business. Planning is critical to ensure “repeated success;”
however, a corporate planner’s job does not stop in the planning stage, it continues to the
implementation stage where being practical is important as well (Lorenzo, n.d.). Some
other businesses, on the other hand, consider corporate planning as one of the most
important department in a organization as it facilitates, develops, and coordinates the
“corporate, strategic and strategic operating processes and activities” of an organization
(www.maniladoctors.com.ph).
The corporate planner has to be aware of both the differences and similarities in
the strategies of Makro and SM Hypermarkets. The task of the corporate planner is to
now learn from the shortcomings of Makro in the past, and integrate the necessary
improvements in order for the plan for SM Hypermarkets a success. This is also
important as the transition from Makro to SM Hypermart will also affect its assets,
liabilities and its liquidity. It will also affect Makro’s current employees since SM is
known for hiring on a contractual basis. Management may also meet a certain level of
resistance from the Makro’s existing system if the transition is done hastily.
Strategic Objective
Opportunities
Threats
Strengths
SO
ST
Weaknesses
WO
WT
SO
- To overcome economic downturn and the limited market by using core-business model
of low cost, low margin, adjusting structure for innovation for local Philippine market.
ST
- To overcome competitors, and similarly structured companies with better adaptation
towards the local Philippine market
WO
- Adjust amenities and services fitting for the local Philippine market
WT
- Avoid attack by competitors and similarly structured organizations with differentiation
and deeper understanding of the local Philippine market.
Strategy Formulation
The group’s main strategies for Makro are listed below. This will be further explained
through the different strategies discussed in class.
1. Research into the market and the channels it services and create a Makro Tracking
Program
Further involve the company into research and deeper understanding of the local
Philippine market. This would emphasize on the target segment focus, its range in the
social stratification structure and products that will be needed by the segment. In
addition, by focusing on the targeted segments, the company can learn more about the
purchasing habits and attitudes of retailers and caterers within the sector. Value-chain
analysis, as discussed in class is the analyzing of the activities that the company does
and then link these activities to the organization’s competitive position.
2. Redefine focus of target segment
Update if the “all things to all businesses” approach is still applicable with the
existence of SM Hypermarkets and increase focus on professional sectors including
hotels, restaurants, and catering as its main operation. The company can also consider
those operating sari-sari store businesses and even direct customers as their target
segment.
3. Update the Corporate Identity
Makro, after knowing the target segment, should rebrand itself. It could change its
logo and its image to attract the market. The “Hothouse Product Development” can be
used to improve on branding strategy with companies like hothouse
(http://www.hothouse.co.nz/) that transforms strategic communication and
capabilities for a proactive business. The differentiation could be in these key areas:
 People
 Originality
 Company culture
 Breadth of Portfolio Services
 Content Development Capability
 Business Development Expertise
Corporate Level Strategy
Stability Strategy
The “Pause and Then Proceed” strategy may also be used considering that Makro did go
through a turbulent experience with SM acquiring it. Makro may take the time to pause,
do in depth market research first (see strategy formulation 1) before going into the
horizontal growth strategy.
Growth Strategy
For Makro’s growth strategy, it could implement a concentration type of strategy
specifically, horizontal growth. Horizontal growth according to Dr. Mauricio’s (2009)
lecture notes, involves “expanding the company’s existing products into other locations
and/or market segments.” By applying this type of strategy, the group proposes to
introduce the selling of both bulk and non-bulk goods to target also the sari-sari store
market and the direct customers or the end-product users. The sari-sari store market now
comprises the bulk of the main businesses in the Philippines according to Makro’s
website (please refer to the image below) hence the group believes that this might present
as a niche market for Makro. One of the proposed strategies is to open Makro’s market to
those tech-savvy, on-the-go customers by selling online.
Competitive (Business Level) Strategy
Makro can do a combination of differentiation and overall price (cost) leadership
strategy. Differentiation is applied in terms of new channel for the market which is online
buying. Cost leadership, on the other hand, is seen as Makro will target to provide
products at lowest price possible.
Competitive Tactics
With the strategies mentioned above, it could be seen that Makro through these strategies,
will employ both an encirclement and a guerilla warfare type of tactics. Encirclement,
according to Dr. Mauricio’s (2009) lecture notes, “involves encircling and pushing over
the competitor’s position in terms of greater product variety and/or serving more
markets”. Makro targets to provide a greater variety of products by offering both bulk
and non-bulk products in the market. Its target market will also now include those
handling sari-sari stores, direct consumers, and those in the catering industry. Makro, in
this situation, also applies a “hit and run” or guerilla warfare type of tactic wherein it
“creates small, intermittent assaults in the different market segments” and such attacks
“will create small gains without seriously threatening” (Mauricio, 2009) established
companies such as SM.
Functional Strategies
According to Dr. Mauricio’s Strategic Management Lecture Notes, functional strategies
are “relatively short-term activities that each functional area within a company will carry
out or implement the broader, longer-term corporate level and business level strategies”.
As it is the main aim to realize the goals and objectives specified, coherence and
consistency across all functional areas is crucial.
Marketing
The marketing managers and its constituents will be in charge of spearheading the market
research of each of its target segments, both existing and new. This entails that during the
stabilization phase (pause-then-proceed strategy), market research must commence with
researching and analyzing the critical functional areas and see where improvements can
be made. More importantly, it must go into reinvestigating the current buying behavior of
their existing market segments (hotels, restaurants, caterers), as well as its new target
segments (sari-sari stores, end-product users). In lieu of the strategy aimed at making
more aggressive marketing strategies such as promotions and improving channels
between the customers and Makro, the marketing department must work hand-in-hand
with finance and operations, respectively.
Finance
As Makro has recently experienced a rather turbulent series of events with the acquisition
of SMPIC from 60% to 100% of Makro shares, all functional areas, with the management
by the Finance department, must ensure that the costs and risks involved in the strategies
formulated are minimal or at least manageable. With Makro being under scrutiny of its
new owner, SM, it cannot afford to make any mistakes or go into strategies that are too
risky. For each of the new plans, the costs, feasibility and profitability should be first
checked and approved by Finance. It must allocate resources where they are most needed
in terms of accomplishing the strategies.
Operations or Productions
As mentioned under Marketing, the Operations or Productions department must support
the former in order to obtain the necessary information or feedback from the current
processes being done by delivery, packaging (products into bulk), customer services, and
the like. Further, Operations must check the feasibility of the proposed changes of
Marketing if labor and current technologies can manage them.
Human Resources
The strategies formulated by the group require the people comprising Makro to make
some adjustments. Some training will definitely have to be orchestrated in order for the
staff to handle any new technologies (such as the proposed changes in the website) or
processes (delivery/ distribution to customers) that will be introduced. However, costs of
training must again be minimal and constricted to training by managers and not outside
experts.
Management Information System
This function is important as it “designs to help managers plan and direct business and
organizational operations”. In a time of great instability and uncertainty of the future,
Makro’s strategic/corporate planner must be kept up to date with the on-goings of the
organization. Close monitoring and management is essential for the corporate planner in
order to keep tabs on the execution of the strategic plan.
Strategy Implementation
For the plans to be implemented, the strategies have to be understood by everyone
in the company. The management of Makro should make it a point to let its employees
know that the plans will make a huge positive difference for the company. The
management should also allot time to review the plans as it is implemented. This is to
show that they are monitoring the progress of the strategies and tactics. It must also be
implemented from the top management to the front line employees.Makro’s management
should be able to motivate its employees to be open to the changes it will impose. The
support of the people is very important to make the strategies mentioned above work.
Resistance may be met by management which is why they should correctly inform the
people to be involved. Makro management should make sure that the change is still in
line with its culture to lessen the resistance it will encounter. Makro management should
further make sure it has the right people who have the necessary skills in the right
positions in every functional area mentioned above. The budget should also be allocated
efficiently so as to not waste any resources such as time, personnel, and money.
To better facilitate the strategies and tactics mentioned above, an alliance network
may be useful seeing as the strategies of Makro’s competitors are changing significantly.
Makro is already struggling to survive at the moment. It would be helpful during strategy
implementation if can form an alliance with its suppliers, customers and distributers to be
more competitive. It is also advisable that Makro be more centralized so that it can
maximize its resources and focus on its target market.
Detailed Action Plan
To achieve an effective way to determine the success of the strategies proposed above, a
detailed action plan will be thoroughly used. This is to encourage the different
departments to be accountable and responsible in the implementation stage.
Stability: Pause-Then-Proceed Strategy
As seen below, in the Stabilization period, Makro can do in-depth research before going
into the growth strategy. The management could first assess the buying behavior of the
different target segments (i.e. hotel, restaurant and caterers). This will be headed by the
Marketing and Operations team leaders as specified. Next, the Marketing and Operations
team leaders would then have to identify areas of improvement and success for each part
of the vain chain. Lastly, to assess the interface of Makro with its customers, the
Marketing and the Management Information System department heads would have to
take charge in this leg. The respective measure and time frame of each of the actions can
be seen in the table below.
Stability: Pause-Then-Proceed
Step
No.
Action Item
Responsibility
Measure
Time Frame
1
Assess the buying
behavior of current
hotel, restaurant and
caterers
Marketing (Mr. Lim) and
Operations/Productions
(Ms. Ong)
2 dealers
from each
category
1 to 2 months during
Stabilization period
2
Identify areas of
improvement and sucess
for each part of the value
chain
Marketing (Mr. Lim)
and Operations/
Productions (Ms. Ong)
Evaluation
from all
department
heads
1 month
3
Assess the interface of
Makro (products and
services) with its
customers
Maketing (Mr. Lim)
and MIS (Ms.
Evangelista)
2 dealers
from each
category
2 months
Growth Strategy: Horizontal Growth
To implement the horizontal growth strategy, the plan is that first, to aggressively do
market research on the new target segment (i.e. sari-sari store owners and end-product
users). To do this, Mr. Lim, together with the rest of the Marketing Department, will
research on a small sample of 200 sari-sari store owners and 200 end-product users. After
the market research, the new online function should be then put up and tested, heads from
the MIS, Marketing, and Operations department should take charge. After the first few
runs of the new online function, subsequent trainings and support of
Operations/Productions staff in terms of delivery and handling of online orders from
existing market and orders of new target segments would be done—headed by the HR
and Operations department heads. The measure and time frame of each of the actions is
seen in the DAP table below.
Growth Strategy: Horizontal Growth
Step
No.
Action Item
Responsibility
Measure
Time Frame
1
Do Market research on
buying behavior of new
target segment: sari-sari
stores and end-product
consumers
Marketing (Mr. Lim)
200 Sari-sari
stores and
200 endproduct
customers
1 to 2 months during
Stabilization period
2
Develop onlinebuying/ordering function
for existing market in the
Makro Website
MIS (Ms. Evangelista),
Marketing (Mr. Lim)
and Operations/
Productions (Ms. Ong)
Program
pilot testing
3 months
3
Training and support
of Operations/
Productions staff
Operations/
Productions (Ms. Ong)
and Human Resources
(Ms. Rocafor)
Program
pilot
testing
3 months
4
Introduce non-bulk
products in the
market to cater to
new target segment
Operations/
Productions (Ms. Ong)
and Markeitng (Mr.
Lim)
10 Makro
stores
3 months
Competitive (Business Level) Strategy and Tactics
As for the Competitive (Business Level) strategy, the group proposes a combination of
overall price (cost) leadership strategy and differentiation. To implement this, feasibility
studies should be done and incorporate the findings into the promotions. This will be led
by the Fiannce and Marketing head. Next is to promote the new online function in the
Makro website to specific target segment (i.e. hotels, restaurants, caterers) which would
be done by the Marketing department. Last, is to diversify into non-bulk product that
offers to cater to different markets. To do this, aggressive promotions would be done.
This leg of the strategy will be handled by the Operations and Marketing heads. The
respective measure and time frame for each is again seen in the table below.
Competitive (Business Level) Strategy and Tactics
Step
No.
Action Item
Responsibility
Measure
Time Frame
1
Assess the feasibility
and incorporate into
promotions
Finance (Ms. Teh) and
Marketing (Mr. Lim)
20 dealers
1 to 2 months
2
Promote of the new
online-buying/ordering
function in the Makro
Website
Marketing (Mr. Lim)
1000 site
visits
2 months
3
Diversification into nonbulk product offering to
cater to different
markets - promotion
Marketing (Mr. Lim)
and Operations/
Production (Ms. Ong)
10 Makro
stores
3 months
Specific Tactics
As for the specific tactics, since the strategy used will be of encirclement and guerilla
warfare-like, implementation will be as follows:
Strategy 1: Market Expansion by Abolishing Membership Requirement
• Makro stores are not open to the general public. They are currently marketing to traders, caterers, and complementary
business users.
• The main competitors of Makro: SNR/Pricesmart, Cash and Carry, and SM Hypermarkets all have one thing common that
Makro is that although all three are basically of the same product range, these companies do not require membership cards
for customers to be able to shop.
Strategy 2: Increase Promotions: Sales Promotion and more Publicity/Public Relations
• Makro may be offering low prices just as much as Cash and Carry and SM Hypermarkets. However, it is not at all doing enough
promotions targeted to the general public. Their existing marketing strategies, are of course, dependent on the media habits
and lifestyle of their current market.
• SM Hypermarkets are more aggresive in their PR effots such as events. Seen in their websites under the "Featured Events"
side bar are only some of the events that enable SM Hypermarkets to gain more publicity from the market.
Strategy Evaluation
Sources:
Nisa-Today’s Corporate Website. Retrieved from http://corporate.nisa-todays.com/home
Macro Vision and Mission. Retrieved from https://www.makro.co.th/b2b/pdf/MissionVision.pdf
Grocery & Foodservice Wholesaling Conference 2009. Retrieved from
http://www.igd.com/index.asp?id=1&fid=2&sid=1&cid=972
Hothouse Company Website. http://www.hothouse.co.nz/
Management Information System. Retrieved from:
http://education.yahoo.com/reference/dictionary/entry?id=m0070650
Puregold Information. Retrieved from :
http://en.wikipedia.org/wiki/List_of_shopping_malls_in_the_Philippines#Puregold_Price
_Club_Inc.