Marketing Strategy of Malaysia's Emerging Hypermarket – Mydin

Marketing Strategy of Malaysia's Emerging Hypermarket – Mydin

(By: Maria Zain)

Mydin Mohamed Holdings Berhad (Mydin) first established its presence in the Klang Valley of Kuala Lumpur (KL) through their 2 emporiums in the early 80s. They sold mostly economically-priced clothes and Muslim prayer equipment and apparel. Today, the outlets are nicknamed "KL's best kept secrets" and have diversified their product lines offering a wide range of different goods. Nevertheless, they are still perceived as the best place to buy Muslim clothes, prayer rugs and other attire related to Islamic worship at affordable prices. In the years that followed, Mydin developed a vision to become Malaysia's leading hypermarket - appealing to Muslims and non-Muslims alike. 25 Mydin branches, a Mydin mart and 2 Mydin wholesale hypermarkets later - these establishments are challenging the large foreign players Tesco, Carrefour and Giant.

Here is an overview of Mydin's marketing strategies that have led to its success to-date. Mydin's entrepreneurship vision takes a wholesome point of view, embracing the concept of halal (permissible) products. In accordance to Islam, nothing is haraam (forbidden) unless explicitly declared as forbidden (by the Qur'an or Prophetic Sunnah). Visit any one of the Mydin emporiums and consumers will find themselves walking single-file down jam-packed shelves and baskets of goods ever imaginable to the human need or want. The halal market spectrum is widened even still. Mydin also caters for wholesalers and retailers in addition to household consumers. Their target market is as halal-wide as their range of products.

Understanding the consumer led to low pricing strategies. With continuous price hikes attributed to reductions in government subsidies (such as oil), "change your [expenditure] lifestyle" campaigns have graced national media as a public service reminder from the government. Mydin has been able to address both issues - they have mitigated the harshness of price-hikes by allowing an alternative shopping avenue for both household and business necessities.

Promotional strategies fall secondary to pricing and products. Mydin's emergence as a hypermarket has posed stiff local competition to major players such as Carrefour, Giant, Tesco (and soon, Wal-Mart). Even as a hypermarket offering groceries similar to the international hypermarket range, Mydin is able to undercut prices by a reasonable percentage. Mydin outlets first opened in less developed states where competition was close to nil and when costs were extremely low. Currently, they place themselves in areas that are accessible to homeowners and traders, such as in small residential towns as well as the congested Kuala Lumpur. Some of their stores are placed in more aggressive positions than others.

As a conclusion, Mydin represents the emergence of Malaysia's first hypermarket. They were very much perceived as a "Muslim" store catering for "Muslims," due to their debut line of products from earlier years in the Klang Valley. Their product ranges have expanded extensively and now they shelf a whole range of necessities for household consumers as well as businesses. Mydin's product spread coupled with their aggressively low prices represents their main marketing strategies that have led to their success.