Basic Situation Analysis Chapter 3

Chapter 3: The Company

3.1 Company Overview

F.O.S is an established clothing retail chain that specialises in imported stock lots and overruns. The opening of the first outlet in Sunway Pyramid in 1997, during the economic crisis in Malaysia, is the birth of F.O.S.

F.O.S has grown to a total of more than 40 outlets to date throughout major shopping complexes located in the Peninsular as well as East Malaysia. F.O.S is locally established. The success story lies in the very concept of F.O.S itself. A wide range of clothing and accessories are made available at an affordable price at F.O.S.

Cancellation orders of stock provisions from international renowned brands unavailable locally are made available in F.O.S. They form a significant share of our merchandise, which are sold at only a fraction of the original retail price. F.O.S also carries its own in-house development brands which complements the stocklots and provides a much welcome variety to the merchandise available at F.O.S.

3.2 Business Description

3.2.1 The Store

F.O.S stores are directly link to customers. F.O.S  stores are usually  have spacious appearance and wide space for displaying all products. Their outlets are mostly situated in shopping malls. Their stores is designed for attracting  middle class customers to search for their simplicity and stylish products. The main products such as new arrival clothes, promotional items  are placed within reachable and easy spotted areas. But other products are placed on racks  and not easy access places.

3.2.2 Store Locations and Counts

Location (Malaysia)	Store Number
Kuala Lumpur	10
Selangor	13
Pahang	3
Perak	1
Penang	4
Johor Bahru	3
Malacca	4
Negeri Sembilan	1
Kedah	2
Sabah	4
Sarawak	1

3.3 Company History

Factory Outlet Store originally was born in 1997 where the first outlet is opened in Sunway Pyramid and from there F.O.S keep expanding until having more than 40 outlets in Malaysia.

3.4 Key People

* Due to the nature of the company, which is a Sendirian Behard establishment, a private company, the key people was considered to be private and confidential. I was not able to obtain any official data on the key people.

3.5 Location and Subsidiaries

3.5.1 F.O.S (Malaysia)

F.O.S (Factory Outlet Store)

Optimum Global Resources Sdn. Bhd.

No.20, U1/20 Jln Jurunilai,

Hicom Glenmarie Industrial Park,

40000 Shah Alam. Selangor Darul Ehsan.

3.5.2 F.O.S Branches (Malaysia)

Kuala Lumpur         - Berjaya Times Square, AEON Cheras Selatan Shopping Centre, AEON Bukit Tinggi Shopping Centre, Ampang Point Shopping Centre, Bangsar Village Shopping Centre, Taman Maluri Shopping Centre, Wangsa Walk Mall, Carrefour Wangsa Maju, Maju Junction Mall, Sungai Wang Plaza.

Selangor                   - 1 Utama Shopping Centre, IOI Mall, Mid Valley Megamall, Subang Parade Shopping Centre, Sunway Pyramid Shopping Centre, The Curve, Ikano Power Centre, The Mines Shopping Fair.

Pahang                     - East Coast Mall, Berjaya Megamall, First World Plaza.

Perak                         - Ipoh Parade

Penang                     - AEON Sebarang City Shopping Mall, Sunway Carnival,

                                       Queensbay Mall, AEON Seberang City Shopping Mall.

Johor Bahru             - Johor Bahru City Square, AEON Bukit Indah Shopping

                                       Centre

Malacca                  -Dataran Pahlawan Melaka Megamall, Mahkota Parade,

                                      AEON Bandaraya Melaka Shopping Centre.

Negeri Sembilan    - Jusco Seremban 2 Shopping Centre

Kedah                       - Langkawi Fair Shopping Mall, Lagenda Heights Village

                                       Mall

Sabah                       - Centre Point, 1 Borneo Hypermall, Warisan Square.

Sarawak                   - The Spring Shopping Mall

3.6 Brands Major Products and Services

F.O.S produces polo tees, basic tees, plaid shirts, shirts, graphic tees, long pants, short pants, jackets, hoodies, skirts, dress, coats, flatties, ballerinas, slippers, sandals, baby shoes,  hang bags, eco bags, school bags, shoulder bags, blouse, tunic tanks, coats, jackets, tights, socks, purse, scarves, nail polish bottles, sun glasses, boxers, briefes, trunks, innerwear and watches.

3.7 & 3.8 Corporate Vision & Mission

·         To provide quality stylish clothing at an affordable price in a bright, vibrant and happening atmosphere to our customers.

·         Hope this message is communicated through our stores as well as out slogan tagline: Find it. Love it. Buy it for Less at F.O.S!

3.9 Company Current Promotional Strategy

F.O.S now is  running our Clearance Sale Event. F.O.S has  just completed 2 locations which are in Petaling Jaya and the event is now happening up north in Penang & Langkawi. F.O.S is   phasing out our Buy 1 Get 2 Free promo slowly on selected stores as stocks are sold out. F.O.S will soon launch our Christmas Eco Bag promo next month. Strategy will still be more value to stretch your money’s worth.

3.10 Product Sales History

F.O.S are constantly adding more products to our merchandise line. In the past year alone, we have introduced fragrances, sun shades, bedroom slippers, cardholders, ballerinas, watches, and nail polish just to name a few. F.O.S is also collaborating with Disney on the long run to come up with exclusive Disney merchandise sold only at F.O.S. F.O.S tries to offer fresh and new items made available at our stores. F.O.S want to change and provide more to their customers in their  stores.

3.11 Current Marketing Objective

3.11.1 Long Term Objective

Long Term Objective is to be the first destination for all Malaysians to go to when they want to shop for clothes.

3.11.2 Short Term Objective

Short Term Objective is to reinforce our brand into all Malaysians top of mind.

3.12 Media Expenditure

F.O.S do not often advertise in the media. F.O.S spend averagely around RM20K to RM30K annually.