SIEP 2

ACKNOWLEDGEMENT
I thank the Almighty for getting me this far. I would also like to thank all the people
who have lent me their continuous support, encouragement and guidance throughout the
period of doing this Student In Enterprise Programme (SIEP). First, I am grateful to my
department head, Mr. Pathivan for his support, supervision and valuable guidance in my
SIEP project during my training at Econsave Cash & Carry Daiman Jaya. Secondly, I am
grateful to my family for their continuous support, encouragement and committing their
resources towards my education this far. Their sacrifices and opportunities accorded to me
have enabled me come this far.
Finally, I salute the entire University Malaysia Kelantan fraternity for giving me
conducive environment to thrive academically and for providing me with the resources I
needed to see me through my SIEP training. I also want to thanks to lecturers involved in
SIEP project, Mrs. Nurhazwani binti Abdullah and my SIEP 2 panel, Dr. Hasif Rafidee Bin
Hasbollah. I will always treasure the help of the lecturers, members of staff, and my fellow
classmates for enabling me to learn more in the future.

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1.0

COMPANY BACKGROUND
The history of Econsave began with a wooden sundry shop in Port Klang more
than 50 years ago. Through years of hard work and perseverance, while constantly
adapting to the changes in the retail scene, Econsave has emerged as one of the
largest grocery retailers in Malaysia. In the home state of Selangor, Econsave has the
largest and most extensive network of branches in all the main towns in Selangor,
unmatched by any other supermarket or hypermarket operators. Going hand in hand
with Econsave means that the products will potentially reach the four million
consumers in Selangor, one of the most affluent segments of the Malaysian
population. In addition, Econsave has a strong presence nationwide and is constantly
looking for new opportunities throughout Malaysia.
For SIEP 2, I chose Econsave Cash & Carry Daiman Jaya which is located at
my hometown, Kota Tinggi, Johor. Econsave currently operates a chain of
hypermarkets in Malaysia. They are one of the top three retailers in Malaysia. With
the slogan ''Bandingkan Harga Kami'' [Compare Our Prices], they strive to offer the
cheapest prices in town at all times. This is achieved through a no-frill operation, bulkbuying in cash and direct imports, spearheaded by Econsaves directors, to ensure
that the lowest prices are offered. The practice of ''Every Day Low Price (EDLP)'' has
also attracted increasingly more loyal customers to Econsave.
They achieve their vision and mission by dedicated professionals, with a
strong integrity and a high level of professionalism, emphasises excellence and a
dynamic decision making process. This enables Econsave to continue growing, in
leaps and bounds, despite numerous economic recessions and the entry of foreign
hypermarkets into the retail market scene in Malaysia. All Econsaves directors are
actively involved in the daily operations of the company, to ensure that our goals are
on track and are always in focus.

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2.0

PRODUCTS AND SERVICE OFFERED

Econsave Cash & Carry Daiman Jaya is a supermarket that selling groceries
and daily necessities. Econsave have a few departments such as fresh department
that provided fresh and frozen products, canned food department such as cooking oil,
sundry department such as detergents and nonfood department such as electric
equipments. These four departments consist of a department head, supervisor and
staff. Fresh department is the biggest department and consist of the largest number of
staffs because there are many types of products in this department. Fresh products
such as fish and meats checked first by supervisor before received by the store clerk.
After finished the receiving process, the products will immediately brought to the
department to keep them fresh. For frozen food such as ice cream, yogurts and
nuggets, the store clerk need to check the expired date.
Same goes to the canned food department, the store clerk needs to check
expired date that should be at least three months before the due. If less than three
months expired date, the company will reject the goods ordered. Canned food
included junkfoods, snacks, instant food, beverages and rice. There are many
companies that supplied canned food due to the compeitition between brands either
imported or local brand. Econsave also produced their own brand for several types of
canned food such as dairy milk. All of Econsave brand products are made at very
affordable prices. Econsave products are manufactured with careful precision to cater
to the various market segments. Econsave products are made with the consumer
interest in mind. With careful study of the needs of consumers, Econsave able to
produce a brand and product that will serve the purpose of the every shopper that
spends in the store. Switching to Econsave products can help customers save due to
the low cost products.
Apart from that, Econsave also offered sundry product sold by Malaysias
brand. Econsave had created their own product including dish soap and liquid, baby
diapers and clothes softener. Sundry product including econsave brand, econsave
choice brand and econsave value brand. Other sundry products such facial foam,
perfume and cosmetics. Nonfood product also offered by Econsave such as electric
product, clothes and groceries. All the product offered almost similar with other
hypermarket in Mlaysia such as Tesco and Mydin. Hopefully, Econsave also can be
successful like the other big companies in Malaysia soon.

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3.0

MARKETING STRATEGY
As a retail company in Malaysia, Econsave had implemented several
marketing planning to boost for sales and obtaining bigger market share. Therefore,
Students In Enterprise Programme (SIEP) will examine the marketing mix
approached by Econsave to successfully market the products and formulate
marketing strategy. Therefore, Econsave can moves towards becoming a market
leader. As usual, this 4Ps marketing strategy is the successful key to Econsave.

3.1

PRODUCT
Econsave has a wide range of product line such as food line, soft line, hardline and household items. Due to the wide range of product, Econsave will benefits
from larger customer base. This will give positive advantage to Econsave as its
customer can obtain all products needed here at lower and cheaper price. As a local
player, Econsave provide items that are complement with its customers need.
Majority of Malaysian are Muslims. Therefore, Econsave provide local prayer mats,
prayer garment for women and traditional product which are rarely found elsewhere.
However, Econsave should consider its non-Muslim customers due to the image of
the place where only Muslim shops.
Variations in the business scenario can create needs for new products and
services at the cost of established provision. Following changing in demands of
Econsave clients, it is possible to launch new types of products. Although most of the
products available in Malaysia come from local suppliers, products such as diapers
and wet wipes are imported from Germany and Korea and are all of international
quality and standards, yet set at extremely affordable price points and are easily
accessible for Malysian consumers.

3.2

PLACE
Econsave has a multi-channel approach so that people can shop how they
want to. Econsave has different shops format to suit customers needs. Some like to
drive to a bigger store, others like to shop for their fresh food on their local high street
and some find it easier to shop online and order their shopping straight to their door.
Econsave preserve their customer by built their supermarket at the residential area at
every district. Econsave has more than 60 outlets in Malaysia including Sabah and

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Sarawak. This means that the store locations were consider important to
management team.
3.3

PRICE
Econsave should provide the fair trade products at lower rate in comparison to
its competitors. It is essential to provide the products at value added price, so as to
lure the attention of the customers. Price always been an important element of the
marketing mix but in retailing the importance is even more significant considering that
on average the margin are around the 1% of the net sales. In the light of this, price is
fundamentally linked to the concept of promotion and competitiors are frequently
surrounded by an environment of price wars as it is exemplified.
Although aggressive promotions can be the consequence of price conscious
customers as a result of a financial crisis it is also a dangerous startegy if Econsave
want to preserve the core purpose of the company. It is difficult to earn lifetime loyalty
breaking promises as Econsave did when failed to beat others competitors and had to
refund money to customers.

3.4

PROMOTION
Econsave promotion strategy is consistent with its overall business startegy of
cost advantage. Econsaves marketing objectives are profit maximization in shortterm and long-term perspectives and increasing the value of the brand image. This
objective is achieved through media advertisements, sponsorship of events and
charitable causes, point of sales marketing strategies, regular announcement of
promotional offer and discounts.
The term promotion encompasses all the various ways Econsave can
communicate with customers and includes advertising, public relations and publicity
(PR), sales promotion, direct mail, the internet and direct communication as well as
sponsorship. Together all of these communication tools are referred to as the
promotional mix. The top manager of Econsave Cash & Carry Daiman Jaya, Mr. Mas
always make promotion by sponsoring the poor some daily necessities. Econsave will
join with any media that make documentary of poor citizens then sponsored them.
Moreover, there are always had promotion almost every weeks by spreading the
flyers to customers. This ways is the effective ways to attract customers.

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4.0

SWOT ANALYSIS

4.1

STRENGTHS
The main strength of Econsave is its strong brand name and its valued
customer service. The company is far less integrated than the other big company that
which makes them more flexible compared to others. Econsave also had competitive
prices strategy that focused price cuts made it possible for it to draw in far more
consumers via competitiors along with catch the volume that backed the bottom
prices. As we know, Econsave has large business structure by operating not only in
main city but at almost every district and having more than 60 outlet in Malaysia.

4.2

WEAKNESSES
Eventhough Econsave has many outlets in Malaysia, the transportation cost
increasing by years because the distance between outlets are far. Econsave has their
our lorries called HQ lorries that sent Econsave products. The lorries need to travel to
each outlets everyday to sent their products so if there is any new outlets opened, the
transportation cost will increase too. Increasing geographical spread maks focus on
specific markets difficult to adapt. Econsave company also lack in online business.
They can compete more if they make online business in the future.

4.3

OPPORTUNITIES
Econsave can carry out a high customers due to the large parking provided.
The parking area had almost the same size with the Econsave building. Opportunities
in Malaysia provide excellent possibilities for growth. Econsave can plan for strategic
alliance with other famous companies. Furthermore, many chances of opening new
outlet at Sabah and Sarawak because the region only have one outlet for each. I also
believe that Econsave has high potential to enter Asian market and make it
international company that can be known in Asia.

4.4

THREATS
There are also many threats come upon by tough competition from bigger
companies such as Giant, Tesco and Mydin. Due to the economics decline,
fluctuation in taxes may impact the Econsave financials and give bad effects to this

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company. Econsave needs more attention in innovation and technology because
many of other big companies more advanced than Econsave. Econsave also may
face the rising in material cost due to the economics downturn happened in Malaysia.
5.0

EXPOSURE DURING TRAINING

I assigned as store clerk when I joined this company. At first I noticed that as a
store clerk, I need to work faster because there were many things to do. This work
scope including store clerk, products sender and EDP department. These three
parties need to cooperate diligently to make sure that the process is going smoothly.
As a store clerk, I needed to deal with the suppliers driver that sent their product. As I
was newbie, my senior workers taught me all about receiving the items. I did mistake
and my department head corrected me. As a store clerk, the first thing I did after
received tax invoices from the driver was searching the purchase order in the files
arranged by departments then separate the documents into two places. There are
drivers document that neede to give back to the suppliers as proved that Econsave
had received items sent. The other part was the companys that needed to be
checked and evaluated by the store clerk.
My department head taught me to scan the purchase orders barcode then
went to the products that loaded at loading bay by suppliers. Store clerk must scan
the barcode of items included in the tax invoices that the purchase order scanned just
now. The wrong items cannot be scanned. After scanned the barcode, I need to count
the quantity they sent. If products sent lesser than tax invoices, we will assign it as
shortage and will give them a credit note for refund. If the quantity more than it should
be, we will immediately asked them to take back the products. This way will avoid
miscalculation products quantity during stock record for every three months. For fresh
product such as fish, vegetables and meat, supervisor from fresh department will
come and checked the quality of the products to make sure the quality of each
product is the best.
After done checking and record the receiving report, I need to print it and sent
to EDP department to be matched with companys data system. They need to match
the quantity ordered, the price put by the suppliers and the total price of overall tax
invoices. I learnt about EDP staffs work during covering them on the leave. I learnt on
how to match them and what action took if the quantity and price were not matched. It
was very different from what store clerk works eventhough store clerk and EDP are in
same department. There are many things I learnt during the training and the

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knowledge is precious to me. I will not forget what they taught me because I will use it
in the future.

6.0

SKILL NEEDED IN MANAGING COMPANY

There are basic rules for business success that haven not gone away with the
digital age and they have only become more important. The skills listed below could
have appeared from any businessmens mind. The main skill needed is
Communication skills. Management is still tight with budgets, and needs to be sold on
new project ideas. The ability to construct an argument and make the problem
forcefully and clearly to my department head, suppliers or items sender will move
ideas to fruition. Computer systems can provide all the information needed, but
machines do not know how to package it up to get decision-makers excited about
lending support to a project or idea. Other than that, time management and
organization also an important skill to have. The ability to stay organized and prioritize
tasks will go a long way to moving the team forward. An application may accomplish a
task within a millisecond, but it does not know its context or how it fits into the scheme
of things. Just as important, to be able to make a decision and act on an
opportunity now without getting wrapped up by paralysis by analysis will deliver
results.
As a manager or department head, the goal must be set first. No business
operation will get anywhere without a vision of the end result. It is this vision that
focuses and solidifies all activities teams are undertaking after the goal planned, the
company must delegate the tasks to the staffs. No matter how talented and
educated, one individual cannot do everything that needs to be done to keep an
organization on track toward its goals. The ability to surround staffs with talented
people who can augment the skills will get things done every time without fail.
Relationship building is important to avoid misunderstanding between staffs and top
management. Nothing helps lay the groundwork for advancement more than
cultivating and maintaining good relationships. Social media and email may help
make it easier to keep in touch, but the key is to keep those contacts going.
As a store clerk, passion and determination needed to face the unpredictable
suppliers manner. Motivation has to come from within the drive to excellence is
entirely an internal affair. Totally out of reach of any IT system. Due to the programme
I took at university, entrepreneurial and innovation skills also important during

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managing business. Even in the techiest of places, it takes a sense of imagination to
conceive new ways to create value. New ideas are not generated by machines, they
come from the minds of the people using those machines. As I was training, I must
have high desire to learn. Nothing beats the value of education, whether it's formal
college degrees or completion of training skills in my profession. Even seeking out
coworkers on the job for opinions and experiences means the growth of knowledge.
Because this was only training for students like me, I need flexibility and adaptability
to be more efficient. Be open to new ideas, environments, and responsibilities.
Technology will constantly changing, professionals need to change as well.

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7.0

ACTIVITIES DURING TRAINING

7.1

FIRST WEEK
FIRST DAY
For my first day, they show me the equipments that we use while recording the
received goods. Econsave using HHT scanner to scan products barcode then it will
save the record and we can directly print the receiving report form the HHT scanner.
Before starting scanning the barcode, store clerk need to scan the barcode of the
purchase order made by the EDP department. If the purchase order scanned then we
can detected the product order was the right product or not. If the product is not
ordered, the HHT scanner cannot verified the barcode so store clerk need to return
the goods. After knowing the equipment used, I learnt to separate tax invoices,
purchases order and delivery order gave by the suppliers.
I also went to EDP department to learn how to print stock card by suppliers
vendor number in data provided in the Econsave system. Merchandiser from any
vendor can made order from stock card printed.
SECOND DAY
For the second day, I still practicing separate the tax invoices, delivery order
from suppliers and the purchase order made by the merchandiser. These documents
separated by the companys copies and the suppliers copies held by the lorries
drivers. Every invoices has different purchase order. After done seperating these
documents, I can strat recording the goods received by HHT scanner following the tax
invoices. The products recorded by the HHt scanner must be same as the tax
invoices given. If suppliers gave us wrong items then company will return it and
declare a credit note to the suppliers.
The credit note must be signed by the drivers to verified that they sent the
wrong items or the items was not delivered so Econsave can claim the payment back
for undeliver items.
THIRD DAY

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As usual, I worked by using the HHT scanner machine but that day I misused
it by recording the wrong items. Suppliers only sent the items in the tax invoices
based on companys order from the purchase order form. But there is possibilities that
suppliers do not sent all the items ordered from the purchase order form due to out of
stock. I scanned items for wrong tax invoices and saved it in the companys data
record. So my head deartment need to called Econsaves manager to delete the
wrong data. I should be careful in the future.
FOURTH DAY
After given warning by manager and department head, my department head
decided to monitor my works.at first, he watched me worked because when he was
not the one who taught me, the senior worker did it. Finally, he personally taught me
all the receiving thing from the start until finished in the right way. He told me that
sometimes workers took short-cut ways to finish faster. I learnt the most important
value today and very happy to have a responsible department head. There were
diferences between the ways of teaching from both senior workers and the
dpeartment head. I hope I can do better in the future.
FIFTH DAY
I was starting the new day with parcticing the things that learnt a day before.
Even I was slow but I was sure that the I done the right thing. I was hoping for no flaw
that day.
I learnt new things after the receiving process. I need to print out the receiving
process and sent the documents to EDP department to further process. EDP
department is one department but the way of working different from the store clerk.
EDP department will match the tax invoices sent and the receiving report printed.
From this process, the staffs will know either the documents were matched or not.
7.2 SECOND WEEK
FIRST DAY
I practiced as usual by receiving and recording the sent items by suppliers. But
today I learnt to continue the process after sent the documents to EDP department.
EDP staffs will match the documents sent and they will give back to store clerk to be
signed from the sender of the following items. If the document are not match with
Econsaves data system either low cost or over cost, EDP staffs will print out credit

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note to be signed by the items sender. This signature is very important to be
evidence that approving the items are having problems. This is the ending process of
receiving items from the suppliers. These documents will be sent to the financial
officer to be checked for the second time. If there were any mistakes the store clerk
who responsible to the invoices will be called and need to explain the problems. So all
the store clerk need to put their name in every document checked by themselves.
SECOND DAY
I came to work as usual and due to the lack of staffs the department head
asked me to learn how EDP staffs work. As usual, he personally taught me. EDP
department is about companys data recorded from the ordering and receiving
products. After store clerk done receiving the items, EDP staffs need to match the
quantity and price offered to the company. If the supplier price higher than the price
offered to the customer, Econsave will recorded it as overcost. Same goes if the items
sent is wrong then Econsave will print out credit note to the supplier and asking for
refund.
The day was very hard for for covering two task in a day. I hope I will be more
professional in the future.
THIRD DAY
I keep learning in EDP department due to the lack of staffs. I had to cover both
departments. I started my day with received items from suppliers as usual. Then after
lunch I will cover for EDP department. This is because during morning there were less
store clerk. At 1.30 pm, the noon shift workers will come and I had covered for the
EDP department. This company usually had job rotation every month. Store clerk will
rotate will EDP staffs so they can work for both department. This ways can improve
the quality of workers.
Working in EDP department was really different. As a store clerk, staffs were
facing sender of the items ordered and the items quantity and quality. But in EDP
department, staffs we facing with data and systm. If the data was not match there
were action took.
FOURTH DAY
I was working as store clerk because all of the EDPs staffs were backed to
work and I was relieved. But today I needed to learn how to receive G-value items

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and Headquaters items sent. G-value items are under nonfood department. Supplier
usually sent them in large quantity and the purchase order made after the items sent.
This process tool a long time due to the large quantity and the purchase order that not
settled yet. During the purchase order is in the making, store clerk can record the
receiving by wrote down the barcode and the quantity for each items. Then, key in the
record by using the HHT scanner after the purchase order was done. This process
went same with items sent by the Headquaters but the different was the type of
products sent. The HQ usually sent fresh products such as fruits and vegetables. So
HQ items must be checked on the time it arrived because to maintain the quality, the
products must be kept at freezer.
The knowledge I learnt was very valuable and I will practice them in the
future.
FIFTH DAY
It was my last day of learning so I worked as usual but it was the day my
department head will evaluate me about my working quality and gave feedback by
using the form given by my university. I quite nervous but I needed to prove that I am
the best student that the company ever hired. Before I left, they made a small farewell
party to me between our departments member. I am very happy having my training in
this company.

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8.0

CONTRIBUTION TO COMPANY
By using the HHT scanner machine, I scanned the purchase order first then
went to the followed items sent to scan their barcode. As I scanned the barcode, I
needed to calculate the quantity they sent. After done scanning products, I saved the
record and print it out then attached it with the companys tax invoices and purchase
order. After that, the documents needed to send to EDP department to match the
record and if there were any problem exist, the store clerk on duty will be responsible
for the mistake. Then, the documents will be given back to driver to be signed as
proved. Finally, I gave their documents back.
In a nutshell, I had contributed my time as I needed to cover staffs that went
recess at lunch and dinner. Due to the lack of staffs, I did part time almost everyday.
There were three shifts for staffs which were morning shift, noon shift and full shift.
Usually, morning shift staffs will cover the noon shift staffs during dinner break. The
loading bay cannot be empty to avoid theft. Covering hours were about one or hours.
When the company hired me to be a store clerk, I contributed my energy and efficient
skill to accelerate the receiving process. I helped this company recording and
handling the receiving process better than before because Econsave has lack of
staffs. The staffs usually not permenantly worked there. They only part timer that
spending their free time by working there. So I helped Econsave by covering the
vacancy.
I also be more patience during training process after being scolded due to the
misused of HHT scanner. The suppliers also complained that the way of we were
working were too slow. Actually,store clerk just record, save and print the data. Then
the data sent to EDP department to be matched. The process quite slow due to the
hundreds of tax invoices needed to be matched by them in the same time. I hope my
contribution beneficial to the company and they happy with my contribution.

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9.0

DISSCUSION ABOUT THE COMPANY

The history of Econsave began with a wooden sundry shop in Port Klang more
than 50 years ago. Econsave was founded in 1955, from the board in the grocery
store, originally transformed itself into one of the nations largest grocery retailer, stick
to the principle of decades, the meager profit but high turnover, cheap and fine.
Through years of hard work and perseverance, while constantly adapting to the
changes in the retail scene, Econsave has emerged as one of the largest grocery
retailers in Malaysia. Going hand in hand with Econsave means that the products will
potentially reach the four million consumers in Selangor, one of the most affluent
segments of the Malaysian population. Hopefully Econsave will stimulate the market
absolutely, giving another wonderful place for shopping in the city. Econsave has
implemented huge expansion and organic growth of its company. They try to gain
their market share by becoming more competitive toward its rival. In becoming so, a
transformation throughout the organization is done.
Based on the marketing planning carried out, Econsave is currently on the
right direction towards its corporate objectives. We can notice how Econsave develop
strategic marketing mix to successfully market their product. However, there is some
areas that should be improved and focus on. In terms of product, Econsave can try to
attract non-Muslim customers by having a promotion or creating an image of
Econsave as a place for anyone. Besides that Econsave has wide channel of
distribution. However, Econsave should also consider dealing with diseconomies of
scales. One of the choices is by introducing measures to remove productive
inefficiencies. Econsave might count the effectiveness of each of the business format.
The marketing strategies indicate that Econsave can gain higher market share from
its competitive advantage in promotion and price. They manage to give clear
perception of the business to public.
Hence, they can gain more customers in the future. In operation management
and human resources, Econsave try to centralize their management to hinder
business runs at loss and to generate efficiencies. Overall, based on the analysis of
marketing planning, operation management and human resource Econsave

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expansion and growth strategies is viable for the business to be a market leader in
retail industry.

10.0

RECOMMENDATIONS
There are some recommendations that I want to Econsave improve in the
future. The recommendations are:

Improves the communication skills between staffs and customers.

Even between staffs also have miscommunicate during sending
information

among

departments.

Sometimes,

there

is

misunderstanding between store clerk and items sender because lack

of communication skills.
Even Econsave is well known in Malaysia but the cost reduction
strategy must be proved to be a valid approach to productivity
improvement especially raw materials cost. Econsave used low price
to attract customer so it will be better if the cut the cost to get more

profit.
I hope the management can set the work scheduling better because
during my training, they department head will approve any staff that
apply for leave. He just approved whom asked for leave without
checking who will cover the task for them. I need to cover for EDP
department even I am store clerk because lack of staffs. This situation
may lead to low productivity.

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REFERENCES
1.0

PEOPLE
Mr. Pathivan,
Department Head of Store Clerk,
Econsave Cash & Carry (DJ) Sdn Bhd,
Lot 37087, Taman Daiman Jaya,
81900 Kota Tinggi, Johor.
07-8828050

2.0

WEBSITES
http://www.econsave.com.my
http://www.google.com/maps/place/Econsave+Daiman+Jaya/

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APPENDICES
LOCATION AND MAPS

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PARKING LOT

PROMOTION

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HHT SCANNER MACHINES

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EDP DEPARTMENT

LOADING BAY

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STORE CLERKS WORKSTATION

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