Royal Selangor Marketing Report

No. Content Page Number

1. Introduction 3

2. External Environment Analysis 3-5

SLEPT Analysis
Threats and Opportunities

3. Segmentation, Targeting and Positioning Strategy 6-7

Definition of STP
STP in Practice

4. Product Mix 8

5. Conclusion and Recommendation 9

6. Referencing 10
 1. Introduction
The Royal Selangor Pewter started in 1885 by a pewtersmith named Yoon Koon. It is a
Malaysian pewter manufacturer and retailer, a home decor and luxury giftware brand which have
received its recognition worldwide. Their office and retail stores is located in 20 countries which
includes Malaysia, Hong Kong and Japan. (Seth, 2013) However they still operates from its main
factory based in Royal Selangor Visitor Centre Kuala Lumpur where the worlds largest pewter
tankard is placed. According to Ng (2015), the Visitor Centre has attracts more than 200,000
visitors every year.

2. External Environment Analysis

SLEPT
SLEPT analysis consist of the 5 factors such as social, legal, economic, political and
technological which affect the macro-environment. It is structured to determine an organizations
external environmental influence on a business. (MBA skool, n.d.)

a. Social
The social factors in SLEPT analysis influence The Royal Selangor business environment. The
social condition may support the companys business but also it can limit the business. Therefore
the company must respond to the changes in sociocultural in the macro-environment.

In the component of widening wealth gap for Malaysia in the social factors, The Royal Selangor
Pewter does not have much opportunities to grow their business. This is because majority of the
Malaysian are low income people. According to The Department of Statistics Malaysia (2017),
the average monthly salaries of the Malaysian holds in 2016 is RM 2,463 which being
categorized as low income class. However, The Royal Selangor Pewter has the opportunity in
expanding and improving their product mix to satisfy more customer and a more diverse target
market. This is because customer are always expecting more in a product especially it is a known
brand worldwide. For example, The Royal Selangor Pewter creates satisfaction of their customer
by producing a product that targets their culture, lifestyle and personality. The brand has a
various of collection to do so, like the Arabica collection, zodiac series, chess sets, the pink
collection, The Star Wars collection and so on.

b. Economic
In the economic factors, it works closely with the social factors above. This is because when the
economy is rising, the purchasing power of superior goods will also rise and there will be more
potential buyer in the market which creates the opportunity for the business to grow. However as
for now the economy of Malaysia is in the downfall, The Royal Selangor Pewter is also able to
get benefits from it because the currency and value of Ringgit Malaysia today is decreasing, this
means that tourist from others country are willing to use their higher currency to exchange for
more Ringgit Malaysia notes in order to travel and buy our items here. The company are able to
gain more profit in this factor.

SWOT Analysis
SWOT analysis is a structured planning method used to identify the strength, weaknesses,
opportunities and threats of a company or an organization. (Investopedia, n.d.) It is a useful tool
when it comes to developing an overview of a companys strategic situation. Below are the
components of opportunities and threats for The Royal Selangor Pewter.

a. Opportunities
New market
New market can leads to expanding their business and allows them to have more customers. The
Royal Selangor Pewters existing targeted customer are aging and might have a decrease in
spending power when they get older, however the company add on more of their product lines to
target a younger generation. For example, the company are first targeting generation X who have
spending power last time but the company also begin to created other collection so to target high
income class millennials. Next, the company also creates opportunities by making more jewelries
who is targeting to high income women. Women hardly have purchasing power last time, but
now majority of the women have spending powers. By creating the jewelries and pink collection
The Royal Selangor Pewter is targeting their product on them.

b. Threats
Substitution of Products
The companys product can be substituted by another product which allow the customer to easily
switch from one product to another product which may damage the sales of The Royal Selangor
Pewter. For example, there is jewelries, home decor and tableware that can be bought from
others store with a cheaper price but different design and raw material.

Competitors
The Royal Selangor Pewter shop is nearby some other shop who have similar products with their
own brand. In this scenario, customer may step into other store instead of The Royal Selangor
Pewters store. Furthermore, as mentioned in the substitution of product, the company is
competing directly with Tumasek Pewter who is also a Malaysian pewter manufacturer and had
been established since 1981 which can be a threat for the company.
 3. STP Strategy
STP Strategy is referring to the segmenting, targeting and positioning strategy. Is is a three-step
approach for building a marketing plan, the process will guide the company on creating
marketing mix as well as competing in the market. (Kokemuller, n.d.) STP strategy helps to
differentiate ones customer group and its market as well as spotting the segments which is less
satisfied and succeed them by satisfying the segments.

a. Segmentation
Segmentation is dividing its market or population into a smaller segments. The types of
segmentation are demographic, geographic, behavioral and psychographic.

In the demographic segmentation, The Royal Selangor Pewter are segmenting its potential buyer
who have purchasing power by age of 28 years old to 50 years old which is considering targeting
into generation X and millennials with a high social class and a high income. The company
creates products for both female and male, children and adults respectively for example, their
product category consist of expensive mens and womens accessories as well as children gifts
and other luxury goods.

The companys geographical segmentation are in both domestic and international regions which
is located in urban areas. Their stores locate in developed countries like Toronto, London,
Singapore and Malaysia.

Like others luxury brands, The Royal Selangor Pewter focuses its psychographic segmentation in
lifestyle allowing their customer to feel and experience a luxury lifestyle. (Peterson, 2014) Their
potential customer are mainly high income employee or employer who's buying decision are
being influenced by the company itself, therefore the company produce a high quality and
satisfactory product where consumer feels satisfied for buying it. The company targets their
customer who wants to maintain their luxury lifestyle by their interest and personality. For
example, those who love drinking tea may attempt to buy their collection of tea accessories,
those who are Tao or Buddhism may attempt to buy the celestial blessing collection.

In behavioral segmentation, the company creates special purchased occasion products, The
Royal Selangor Pewter has their zodiac series collection when their customer celebrates Chinese
New Year. Next, the company also have Star Wars and The Lord of the Rings collection when
the movie is being released.

b. Targeting
According to Ward (2016), targeting strategy is referring to evaluating a market segments,
breaking the segments apart and choose one or more segments to concentrate and enter.

The company target market segments is differentiated marketing. Differentiated market is when
a company creates its products that is appealing to more than one market segments or targeted
groups. (Newton, n.d.) The Royal Selangor Pewter has many products with different marketing
mix, having their resources segmenting into different categories allows them to be highly
appealing and famous for their chosen segments. For example they are famous for their home
decor like candle stands and photoframes as well as other collections which targets on potential
customers personality and interest.

c. Positioning
It is creating a product and brand image in the consumers mind which helps to differentiate the
products and services of a company from their competitor. The companys craftsmanship had
been its unique selling point since the olden days, they employed more than 250 skilled
craftspeople to make all their products by hand to sell to its customer. When people think of
Royal Selangor, they think of a brand having a high quality, luxury handcraft pewter products.
 4. Product Mix

Diagram 1: The Product Mix Diagram of The Royal Selangor Pewter

Product mix is also called product assortment or product selection which there is the total
number of product lines that the company are offering to its customer consisting its own width,
depth and length. (Suttle, n.d.) The width of the companys product mix is depending on the
number of product lines that the company sells. The width or the categories of Royal Selangor
are diamond, gold and pewter product.

From the pewter categories there is various of product lines which is also called the depth of a
product mix, the depth of their products are accessories, home decor, tableware, collection and so
on. Then, they have the length or the variants of product such as cufflinks, flash drives,
keychains and wearables from the product lines of accessories. Their products such as candle
stands, vases, incense and scent holders, photo albums and photoframes are from the product line
of home decor.

5. Conclusion and Recommendation

I learnt that marketing strategy is about helping the company to create products or services with
the best chances of making profit. I realized how the company are responding to the changes
from the macro-environment and it is critical to respond or eliminate those macro-environment
changes so that the company getting a benefit out of the situation.

Lastly, since The Royal Selangor Pewter is a worldwide renowned luxury product, I do
recommend the company to step into others superlative country like Dubai because I feel that
superlative country is The Royal Selangor Pewter major business centre.

Referencing

Department of Statistics Malaysia (2017) Salaries and Wages Survey Report, Malaysia, 2016.
Link:
https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=157&bul_id=U3JoKzFie
kE5WFFKK0VMRWQ0a2FDQT09&menu_id=U3VPMldoYUxzVzFaYmNkWXZteGduZz09
[Accessed: 03.06.2017]

Investopedia (n.d.) SWOT Analysis. Link: http://www.investopedia.com/terms/s/swot.asp

[Accessed: 03.06.2017]

Investopedia (n.d.) Market Cannibalization. Link:

http://www.investopedia.com/terms/m/marketcannibilization.asp [Accessed: 12.06.2017]

Kokemuller, N. (n.d.) What is STP Marketing. Link:

http://yourbusiness.azcentral.com/stp-marketing-1769.html [Accessed: 03.06.2017]

MBA Skool (n.d.) SLEPT Analysis. Link:

http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/8377-slept-analysis.
html [03.06.2017]
Newton, C. (n.d.) Difference Between Differentiated Marketing Strategy and Concentrated
Marketing Strategy. Link:
http://smallbusiness.chron.com/difference-between-differentiated-marketing-strategy-concentrate
d-marketing-strategy-30462.html [Accessed: 08.06.2017]

Ng, K. (2015) How Royal Selangor Became The Largest Pewter Maker In The World. Link:
http://my.asiatatler.com/homes/interiors/royal-selangor-130-years-history
[Accessed: 01.06.2017]

Peterson, F. E. (2014) Six Must Dos for Successful Luxury Goods Marketing. Link:
https://www.theguardian.com/media-network/2014/nov/25/luxury-goods-marketing-ferrari-le-lab
o [Accessed: 03.06.2017]

Seth, S. (2013) Royal Selangor Plans 25 Stores. Link:

https://retail.franchiseindia.com/interview/retail-people/profiles/Royal-Selangor-plans-25-stores.i
430/ [Accessed: 01.06.2017]

Suttle, R. (n.d.) What is a product Mix. Link:

http://smallbusiness.chron.com/product-mix-639.html [Accessed: 13.06.2017]

Ward, S. (2016) Targeting Marketing. Link:

https://www.thebalance.com/target-marketing-2948355 [Accessed: 08.06.2017]