2. Company Background
2.1 Company History
Southern Lion Sdn.Bhd was established in April 1987 in Larkin Industrial Estate, Johor Bahru. The company is a 50/50 joint venture company between Lam Soon (M) Berhad and Lion Corporation, Japan. The well-known brands sold by company include TOP, Shokubutsu, Systema and Kotomo (Southern Lion Sdn.Bhd 2012).
The company vision is aimed to be the market leader within the top three positions. They seek to build the brands with providing high quality and ecofriendly. It is also strict to achieve the cost-efficient production and market innovation goal in operation (Southern Lion Sdn.Bhd. 2012).
The mission of company is to improve the life quality ...view middle of the document...
It includes supermarket, retail store, convenience store and hypermarket as it can be easy for consumers to purchase its products.
Southern Lion Sdn.Bhd is focusing its promotion on the strong brand differentiation. In 2015, it also conducts the promotional event during Raya which required participants to upload the photo with family in selected themes to entitle the chance to win the jewelry worth RM28,400.
Based on the TOP official website, the pricing of powder detergent is based on the packaging size. 125G cost RM1; 1kg cost RM5.50; 2.5KG cost RM14.90 while 4KG is cost RM23.30. There is difference price of 2.5kg and 4.0kg between Penisular Malaysia and East Malaysia due to the shipment cost.
3.0 Situational Analysis
The rapid changes of the political scenario in Malaysia had result in uncertain policies which made business as uncertain. The rally between Pakatan Rakyat and Barisan Nasional had brought many double rules and regulation for the merchant and caused confusion in business operation. While the new tax system - good and service tax (GST) imposed by Government had directly affected the businesses as the merchant need to rearrange their pricing and taxing works. The merchant had to reform their pricing strategy according the Malaysia Custom order due to there is a new way of labeling the price. For example, one of the rule is the price which shown in the price tag must be GST inclusive (GST Malaysia 2015). In addition, the household chemical need to be faced with regulatory such as clearer product information, labeling, better product marking and safer packaging in order to protect the consumers. Furthermore, Halal certification is another issue which very sensitive in Malaysia as the majority consumers was Muslim. There are some of detergent ingredient contain alcohol which against the law of Halal (JAKIM 2011). These are the political aspect which might influence the product or the business process.
According Department of statistics Malaysia, Malaysia consumer’s spending power is increasing. This will be good factors that attract businesses or merchant. Furthermore, the inflation rate of Malaysia in 2015 is lower compare with previous year (Trading Economies 2015). This is another good factor which can increase consumers spending power and investor also will have a optimistic view in Malaysia. Implementation of GST not only beneficial to the country but merchant also enjoys the benefit as well. Implementation of GST had reduced the selling price of some goods. This is because GST can eliminate all the indirect taxes which prevent duplication of taxes. In addition, GST also reduce business costs as merchant can claim back input tax(GST Malaysia 2015). While for the gasoline, the unstable price had made business difficult to estimate the operational cost but it also record slightly lower than previous year.
First of all, the retirement age for Malaysia workforce had...