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Chegu Aiman Gadget should make a loyalty program and reward their customers to build customer loyalty. For instance, Chegu Aiman Gadget can do loyalty program and reward which customers can earn points for every purchase they made in the Chegu Aiman Gadget and get a discount depends on points the earn for second purchase such as iPhones or iPads either new product or used original product and free accessories depends on the product they bought. Therefore, Chegu Aiman Gadget can achieve the marketing objective which is to build customer loyalty by making a loyalty program and reward.

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7.2 ANSOFF Matrix Analysis (Product/Market Growth Strategy)

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7.2 ANSOFF Matrix Analysis (Product/Market Growth Strategy)

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Current ANSOFF strategy done by Chegu Aiman Gadget (CAG) are market penetration, market development and product development.

Market penetration, CAG focuses selling to existing customer that want to upgrade their phone. Usually iPhone users have the tendency to upgrade their device yearly.

Market development did by CAG is by extanding into new locations. Now, they have Chegu Aiman Gadget Samarahan in Kota Samarahan and also Chegu Aiman Gadget Tuaran in CKS Plaza, Tuaran Sabah.

Product development, CAG just started selling gold to their customer too. The customer can trade in their jewellery with an iPhone or the either way.

For next following years, Chegu Aiman Gadget should create more customer loyalty programs and benefits. The loyalty programs should be making their existing customer loyal and continuing to purchase from CAG.

For longer term, in 3-5 years. Chegu Aiman Gadget need to expand their market development by opening branches in Peninsular Malaysia. This will attracts new customer coming from other location.

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Chegu Aiman Gadget pricing strategy is competitive pricing strategy which Chegu Aiman Gadget slightly lower the price than competitors. For example, Switch sells their new product such as iPhone 13 at RM 4049.00, and Chegu Aiman Gadget sells their new product for Iphone 13 at RM 2999.00 which is cheaper than Switch. The business also offers discounts on used original iPhone and gives a free give away during festivals such as “Hari Raya” to the customers which attracts more customers to buy the product. Chegu Aiman Gadget also makes limited-time flash sales that are promoted in social media to lead urgency for customers to want to buy it immediately. This current pricing strategy allows the business to attract price-sensitive customers, increasing sales volumes during promotions and flash sales, and make the business presence more stand out in a crowded market as quality and affordable product business. However, this pricing strategy may create a perception of low quality when its heavy reliance on discounts and thin the profit margins which limit the ability to reinvest in business growth. In simple terms, this competitive pricing strategy may help Chegu Aiman Gadget to attract the customers and boost sales, does not mean it is sustainable in the long run and reaches much higher profit than competitors do. To maintain competitive pricing while increasing profitability, Chegu Aiman Gadget should launch a loyalty program which gives rewards to customers who purchase a new product like iPhone and give points for discounts so customers can earn to make another purchase that can encourage repeat purchases and increase customer loyalty. To avoid heavy reliance on discounts, Chegu Aiman Gadget can offer added value such as free accessories for the purchase such as accessories for iPhone or iPad. This also can avoid the profit margins to be thin.

sources: https://shop.switch.com.my/products/iphone-13-mlqf3zp-a

https://www.cheguaimangadjet.com/collections/feature-on-homepage/products/iphone-13

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The business current marketing and promotion strategy are interesting promotional video contents posted in social media. Reference: https://vt.tiktok.com/ZS6mU4WAX/

The peak demand of the business during a festival celebrations because everyone want to upgrade their gadgets as self rewards after embrace the journey surviving another year.

The most successful strategy are interesting contents with a contest. For example giving 1 iPhones to lucky followers and iPhone buyers. Reference: https://vt.tiktok.com/ZS6mUqbdr/

Yes, they fully utilized online platform.

1. Tiktok : https://vt.tiktok.com/ZS6mUEk33/

2. https://www.instagram.com/cheguaimangadget?igsh=NTc4MTIwNjQ2YQ==

3. https://www.facebook.com/share/1BGhYthMT5/?mibextid=LQQJ4d

I would like to suggest Chegu Aiman Gadget to venture into event promotions because CAG only focuses only promotions. For example, join any booth events in a mall. Persuasion skills will be important role during this.

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99 likes, 2 comments. “korangg jangan gaduhh dengan bos korang pulak lepasni 🤭 btw chegu masih ada promo aidiladha tauu 🥰 rugii kalau tak grab sbb sekarang harga runtuh gilaaa 🔥 click link on bio for fast response ‼️”

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Mr. Aiman began venturing into this industry while he was a student at Institut Pendidikan Guru Kent (IPG Kent) in Tuaran, Sabah. He initially focused on iPhone repair services and gradually expanded to selling used iPhones and Android devices.

In 2020, Mr. Aiman bin Abdul Hamid, started his first business selling smartphones at Metrocity, Matang while still teaching. Chegu Aiman Gadget, commonly known as CAG, is a reseller company that specializes in selling used iPhones and Android devices, as well as brand-new gadgets.

In April 2023, after Mr Aiman opened his second branch in Kota Samarahan, he left his career as a teacher to focus more on expanding his business.

Chegu Aiman Gadget now has three branches, the first branch is at Metrocity, Matang, followed by CAG Samarahan and CAG Tuaran. The company offers business-to-customer services, including selling gadgets, gold, and repair services.

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The vision of Chegu Aiman Gadget is to open many branches in Malaysia

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The mission of Chegu Aiman Gadget is to provide phones, gold and trade-in services at affordable and reasonable prices giving everyone the opportunity to afford one at least. Soon, CAG will also offer a pawn services, allowing people to pawn their valuable items in exchange of fast cash.

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We chose “Chegu Aiman Gadget” or well known as CAG is a growing company that started from bottom. The owner of CAG name is Aiman bin Abdul Hamid raised and born in Kuching, Sarawak. Chegu Aiman Gadget is a reseller company that resell Apple products which is brand new iPhone. In order to sustain business and compete with it’s competitor, they also sell used iPhone and androids or brand new androids. They also now started selling gold and target to do a pawn service in the future. In this portfolio we will see the details of the company based on the owner answer during the interview.

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Chegu Aiman Gadget is a gadget store that selling gadget products but mainly focus selling new/used iPhone and gold. Type of business they focus on is business-to-customer (B2C) but also do business-to-business (B2B) in a small scale providing small scale of used iPhone for other business that are selling used iPhone.

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Reference: https://www.instagram.com/p/DDGbnBKyelC/?igsh=NTc4MTIwNjQ2YQ==

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Used iPhone is a second hand iPhone that have previous owner but everything is still original and in good conditions.

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This is the example of brand new iPhone. It is still sealed and only can be open after the customer made the payment. This brand new iPhone have 1 year warranty under Apple (any internal damage can directly claim with Apple Centre)

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Only available in Chegu Aiman Gadget Metrocity, in the shop they have a section selling gold.

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References: https://www.facebook.com/share/p/14uj54Fm2F/?mibextid=WaXdOe

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Chegu Aiman Gadget market segmentation is demographic segmentation.  This is because Chegu Aiman Gadget focuses on selling gadgets, especially iPhone and golds to the customers which involves dividing larger markets into smaller group based on specific demographic attributes. For example, not all people can buy or want to buy gold, it is for those who have higher income and willing to invest in gold. If CAG only selling gold, it will be difficult for them to expand its customers and maintaining the business, that is why CAG provides other products like gadgets which are at reasonable and affordable prices.

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Chegu Aiman Gadget main target market are those people who are working because their products that they are selling are majorities in big amounts.

They also provide installment services for those students that saved up money to buy a new smartphones. This installment method is different from loan installment, the method is the customer will make payment to CAG whenever and any amount they can but only receive the items once the total of their payments reached the price of the items that they want.

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Their position in the market among consumer are “ Cheaper Original iPhone “ and honest service from the staffs will become words of mouths between people. This definitely have positive impacts of the business. It will attracts more customer to buy iPhone at Chegu Aiman Gadget.

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I think above matters are sufficient for the business espescially they did “ product development “ of their services by providing friendly students installment and also “ diversification “when they introduce selling gold as their business too. Not only that, they have a branch in Sabah and visualise of opening branch whole Malaysia which already a “ market development “

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Chegu Aiman Gadget Metrocity · Kuching, Sarawak

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Chegu Aiman Gadget Metrocity · Kuching, Sarawak

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Find local businesses, view maps and get driving directions in Google Maps.

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CHEGU AIMAN GADGET - Aiman Mall, Samarahan · Kota Samarahan, Sarawak

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CHEGU AIMAN GADGET - Aiman Mall, Samarahan · Kota Samarahan, Sarawak

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Find local businesses, view maps and get driving directions in Google Maps.

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Chegu Aiman Gadget - CKS Plaza Tuaran · 289150, Lorong Plaza CKS 2, 89150 Tuaran, Sabah, Malaysia

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Chegu Aiman Gadget - CKS Plaza Tuaran · 289150, Lorong Plaza CKS 2, 89150 Tuaran, Sabah, Malaysia

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STRENTGH

Chegu Aiman Gadget (CAG) biggest strength is providing cheaper brand new iPhone than his authorised reseller competitor. In order to cover the smaller margin profits, they sells varieties of products such as used iPhone, new or used android and also gold. They focus more on “many” small profits instead of “bigger” profits.

WEAKNESS

From there, we can see the weakness of CAG itself came from their strength. Too much discounts or cheaper price might make potential customer wait for a cheaper price instead of just buying it.

OPPORTUNITY

The opportunity that Chegu Aiman Gadget has took was during the Endemic of Covid 19. During this time, many businessnes are unable to pay rent of their shoplot and decided to close. The owner of CAG took the opportunity to lowball shoplot rental prices and the shoplot owner agreed because there is no other business want to rent their shoplot due to Movement Control Order (MCO).

After the endemic, government announced people can take out some of their savings from KWSP/EPF. Chegu Aiman Gadget grabbed this opportunity promoting and great offers such as “ Low prices with limited stocks “ as well as discount rate during upcoming festivals like Aidilfitri which most of people want to upgrade their smartphone to get better experience capturing the festival moments

THREAT

Biggest threat Chegu Aiman Gadget faced are the economy inflations. If inflations happened, Malaysian Ringgit (MYR) value will drop which affected CAG when they are importing newset iPhone stocks form Singapore or America so the money exchange rate will be costly.

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Chegu Aiman Gadget dominate the market between businesess selling used iPhones such as Muaz Gadgets but still in development of competing with authorised reseller by Apple.

The main competitor of Chegu Aiman Gadget are

well-known established Apple reseller which are

1. Switch

2. Urban Republics.

The weakness of these competitor are devided into categories. First, Muaz Gadgets have limited stocks of used iPhone because of limitation to invest buying used iPhone stocks . Second, the authorised reseller only sells brand new iPhone which cost too much for some people.

Chegu Aiman Gadget took this opportunity by investing to buy used iPhone stocks and also diverse selling both new and used iPhone stocks.

To market against competitor, we need to educate by posting online making sure people know new iPhone are produced by Apple not Switch or Urban Republics. They are just reseller same as CAG but CAG sell at lower prices because they have other profits to cover the cost of new iPhone by selling used iPhone too.

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The currency distribution strategy for Chegu Aiman Gadget is a dual-channel distribution strategy in which the business combines both direct and indirect approaches. This company sells products directly to customers through physical stores where customers can assess the product physically and online platform so customers can browse the product and price with other companies and make purchases. Chegu Aiman Gadget also partners with e-commerce platforms like Lazada and Shopee to expand its reach. Chegu Aiman Gadget uses intermediaries in its distribution strategy such as e-commerce platforms and logistics providers. For e-commerce platform Chegu Aiman Gadget partners with Shopee are important intermediaries in the company's drive to expand the customer base, especially to those who prefer online shopping. Chegu Aiman Gadget also uses third parties for the Products that are ordered online which are delivered with the help of a third-party courier service to the customer's location. Chegu Aiman Gadget strikes a balance in the use of direct and indirect channels for effective online and offline penetration. While the company utilizes e-commerce websites along with other local retailers to reach out to more customers, it also would not want to lose control over its brand and products. This approach keeps things flexible and accessible to all customers.

Source: https://shopee.com.my/chegu_aiman_gadget

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The current constraints Chegu Aiman Gadget are from buying other Apple products such as iMac and iPad. This products are too costly and takes time to close deal on the product with a customer.

I would say the average cost spent on marketing and overall cost is at fair margin. The owner never shared exact amount of cost he spent but based on observation it is around RM300k yearly per branch including rental, stocks, shoplot renovations, maintenance and salaries. We noticed a the owner use a high end camera to record their promotion video that cost around RM25k. Not only that, the owner itself will go to the nearest Apple store every year during new products launch to grab the new products and resell for his business.

1. The camera: https://vt.tiktok.com/ZS6mf6Us3/

2. Apple store in Singapore: https://vt.tiktok.com/ZS6mfko4y/

In my opinions it is sufficient but they should join an event promoting their business physically.

The marketing costs on giving away an iPhone to lucky draw buyers should be increases. Example, if 10 people already bought an iPhone and only 1 person won, they are still in profits. Source: https://vt.tiktok.com/ZS6mUqbdr/

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2022 likes, 45 comments. “Which one yang anda akan guna?”

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In conclusion, Chegu Aiman Gadget will always grab every opportunites in the markets. By doing 3 ANSOFF Matrix which are market penetration, market development and product developments. Using their own strength by selling products lower than their competitor and cover the small profits margin by also selling gold to their customers. Chegu Aiman Gadget also aware and make use of their competitor strength and weakness to be able compete to their competitor standards. The mindset that brought CAG being able to sell affordable and reasonable prices of expensive items to their customer is wanted everyone could at least once have the experience buying something that is expensive.

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Our meeting deciding which company and what question to ask in order for us to achieve our objectives

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We received approval letter to conduct interview with the company

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This our picture after interviewing Mr Aiman bin Abdul Hamid in his office.

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Question asked during the interview session.