(Business Model: B2C, with brick-and-mortar storefront)
Introduction
FairPrice is one of the leading supermarket retailers in Singapore. It has a retail network of about 225 stores island-wide. It serves the needs of more than a million everyday and it’s known as “Singapore’s Very Own”.
The FairPrice main mission is to help moderate the cost of living for low income households in Singapore. In the financial year 2006/2007
Today, FairPrice has grown to become the leading supermarket retailer in Singapore. It has a retail network of over 225 stores island-wide. Owned by about 500,000 Singaporeans, it serves the needs of more than a million everyday, and is indeed "Singapores Very Own". Its founding mission to help moderate the cost of living for low income households in Singapore remains at the heart of its operations. With sales of more than $1.49 billion in the financial year 2006/2007 and a staff strength of over 5,000, the corporate mission of FairPrice incorporates an additional responsibility not only to its customers but also its staff, who have made its success possible. "NTUC FairPrice, Best Place to Shop, Best Place to Work and Best Corporate Citizen" underlines its commitment to bring value to the community, its customers, its staff, and ultimately to its co-operative members who by their support make FairPrice Singapore's Very Own largest supermarket chain. Over the years, FairPrice has continuously revolutionised its business to remain in the forefront of retail technology and innovation, and remain responsive to the changing environment and customers' needs.
(For this assignment we are focusing on http://www.fairprice.com.sg/)
History
During the early seventies Singapore faced with the oil crisis and rising prices due to inflation. Therefore the Labour Movement together with the determined Singapore government worked closely to find a solution to the problem, and the solution was eventually NTUC FairPrice.
In 1973, the National Trades Union Congress, Singapore Industrial Labour Organisation and the Pioneer Industries Employees Union launched individual co-operatives to run the supermarkets to help curb profiteering. The National Trades Union Congress supermarket co-operative was called NTUC Welcome which was officially opened by Prime Minister Lee Kuan Yew to indicate the strong support from the government.
But in early eighties, the Singapore Industrial Labour Organisation and the Pioneer Industries Employees Union merged to form the Singapore Employees Co-operative (SEC) which eventually merged with the NTUC Welcome to form an enlarged co-operative known as NTUC Fairprice Co-operative Limited.
Since then, NTUC FairPrice has become the people’s supermarket and continues with its original mission to stabilise the prices of essential consumer products.
Business Strategies
One of the main strategies of the FairPrice Group is to have various store formats targeting at different market segments. With that in mind they ventured into new formats and services such as Cheers, Convenience Stores, FairPrice Xpress, FairPrice Homemart, FairPrice Online, FairPrice Xtra and FairPrice Finest.
Another important strategy they have is to cater to their shoppers needs. Examples are the halal fresh and deli items for Muslim shoppers, more healthy-choice products and nutrition programmes for the health-conscious shoppers, more exotic products that come from non-conventional sources like Chile, Hungary, South Africa, to cater to the adventurous consumers, as well as online-shopping for the Internet savvy shoppers.
The main reasons for this improvisations and additions to the traditional range of products and services is to better the customers better, especially when customers nowadays are much are well-travelled, better educated and lead increasingly modern and global lifestyles.
Characteristics
Strengths
Saves time
The website helps customers save time. Usually customers would have to do to a retail outlet to buy their computers (Brick and Mortar environment). Singaporeans nowadays are very busy with their individual work and personal commitments and it would be difficult for them to make it to the shop before 10pm at night to do their necessary shopping. With online shopping, it saves time and they will be able to short at any point of time.
And the items they have purchased will be delivered to the customers. It is not necessary for customers to make their way to the physical shop to collect their items.
There is also a listing of all the outlets in Singapore. Therefore instead of customers trying to find for the nearest physical shop available they will be able to locate the place through the website and make their way there faster.
Direct Business model
FairPrice has direct relationship with all of its customers, as they organize their business around well- defined customer segments to focus on and deepen those relationships. This direct model is the approach best suited to understanding and fulfilling customers’ needs.Insight to technology trends
The system that is design and build are consistently rated among the industries finest.There is Browse Quick Search Service which allows customers to look for the items they want. The items are separated in different categories which make it easier to chose the items, compare the prices of the same type of products and also select the total number of quantities they are want.
Feedback
Customers are allowed to give feedback regarding the website and the services provided to them. This way the company would be able to upgrade themselves and also see to the customer’s individual needs.
Contact Us
There is also a contact us link which allows customers to alias with someone when they are in doubt regarding any information. The only problem is that contact us is only available during office hours. Therefore after office hours customers will be required to email to the company and might have to wait for a reply only during the next working day.
Security
Only members who have registered with the website are allowed to make online purchases. Furthermore the customers’ information is protected.
Weakness
Payment is only via credit cards. Paypal services or cheques are not available.
The website’s layout is very crowded with too many information therefore customers might find it difficult to browse the website.
There are no images for most of the products. Therefore some customers might not be able to really see the product they are purchasing. This might cause problems when they are not sure about the products brand or name.
Conclusion
To summarize, the website provides an insight for its target market by providing the necessary information to provide convenience for its users. With the feedback system FairPrice is able to their services and products. NTUC FairPrice lives up to its name “Singapore’s Very Own” as it meets its objectives of providing good services to the customers and to always upgrade themselves in order to keep up to the fast pace lifestyle in Singapore.
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