BPME3033 ELECTRONIC ECOMMERCE

SECOND SEMESTER SESSION 2022/2023 (A232)

GROUP PROJECT:

CASE STUDY MR DIY

SUBMITTED TO:

DR AHMAD EDWIN BIN MOHAMED

PREPARED BY: GROUP 13

NAME MATRIC NO

PRAVIN RAJU NAIDU A/L S PALANI RAJU NAIDU 287352

NORAINI BINTI JOHARI 287513

NUR ATHIRAH BINTI MOHD KHAIRUIZAM 291518

 TABLE OF CONTENT

1.0 Assess how the website and its associated social media contributed to MR. DIY.’s
marketing effort
1.1 Website Assessment
1.2 Social Media Contribution

2.0 Uses and Gratifications (U&G) theory concerning consumer behavior in making
online purchases

3.0 Disadvantages that MR.DIY experience and factors lead to an e-commerce venture
3.1 Disadvantages of MR.DIY. experience
3.2 Factors lead to an e-commerce venture 6

4.0 Data data analytics and digitalization affect the business strategies and
sales/marketing at MR.D.I.Y.

5.0 References 8
1.0 Assess how the website and its associated social media contributed to MR.
DIY.’s marketing effort

1.1 Website Assessment

Upon evaluating the MR.DIY website and taking into account its
associated presence on social media, it is clear that these digital platforms
play a significant role in MT.DIY.’s marketing endeavors. The website and
social media contribute to MR.DIY.’s marketing strategy in several key ways.
Firstly, the user-friendly interface of the website allows customers to easily
navigate through various product categories, promotions, and store locations,
thereby enhancing the overall shopping experience.

Additionally, the website effectively showcases MR.DIY.’s extensive

range of products, encompassing hardware, household items, electrical
equipment, car accessories, stationery, toys, and more providing customers
with a comprehensive overview of available offerings. Furthermore, by
offering an online store, MR.DIY. caters to the growing trend of online
shopping, granting customers the convenience of browsing and purchasing
products from the comfort of their own homes.

Moreover, the website supports an omnichannel purchasing experience,

enabling customers to seamlessly transition between online and offline
shopping channels, thereby augmenting customer engagement and
satisfaction. Promotions, discounts, and special offers are prominently
featured on MR.DIY.’s website, attracting customers and encouraging repeat
visits for potential savings and value-for-money purchases.

Lastly, the website furnishes essential information such as store

locations, product details, pricing, and promotions, empowering customers to
make well-informed purchasing decisions and enhancing transparency in the
shopping process.
 1.2 Social Media Contribution

MR.DIY.effectively utilizes social media platforms like Facebook,

Instagram, and Twitter to enhance brand visibility, expand its reach, and
interact with customers across popular social channels. Through interactive
posts, contests, promotions, and customer feedback, MR DIY. fosters a
sense of community and loyalty among its followers. The company leverages
social media for promotional activities, new product launches, and special
events to drive website traffic and boost sales through targeted marketing
strategies.

Additionally, social media platforms provide a platform for customers

to share feedback,reviews, and recommendations, enabling trust within the
online community. The use of visual content,including product
images,videos, and infographics, further enhances engagement and attracts
customers by showcasing the diverse range and high quality of products
available at MR.DIY.

2.0 Uses and Gratifications (U&G) theory concerning consumer behavior in

making online purchases

When it comes to how customers behave when making online purchases, the
Uses and Gratifications (U&G) theory focuses on how they actively select media and
material to meet their unique psychological requirements. Within the framework of the
MR.D.I.Y. scenario, the U&G theory can be deconstructed into multiple fundamental
points such as content gratification, process gratification, social gratification and security
and trust.

i) Content Gratification
 The term "content gratification" describes how customers feel about the
actual material that the e-commerce platform offers, such as product
descriptions, user reviews, and other pertinent information. In this instance,
consumers seek for thorough product details, photos, and specifications in order
to make knowledgeable purchasing selections. According to the website
(Mentek,M. 2022) the extensive information on every product available on
MR.D.I.Y.'s e-commerce platform gives customers confidence in their selections.
Furthermore, one important part of content gratification is the ability to compare
products side by side based on features, prices, and user reviews. This aids
customers in weighing their options and selecting the ideal product for their
requirements. Customers can also assess a product's quality and level of
satisfaction by reading reviews and ratings left by other customers.

ii) Process gratification

Process gratification is the term used to describe how satisfied customers are
with the usability, effectiveness, and general user experience of the e-
commerce platform.An easy-to-use interface that makes it simple for
customers to browse categories, filter results, and search for products
improves their buying experience. To address this demand, MR.D.I.Y.'s
platform probably prioritises a smooth and user-friendly design. Performance
of Websites and Apps Important features include responsive design that
functions well on desktop and mobile devices, quick loading times, and no
downtime. Furthermore, Platforms that are dependable and operate properly
without experiencing technological problems are valued by users. Integration
of Customer Service Having quick access to customer support via chatbots,
email, or hotlines contributes to a satisfying experience all around. Process
satisfaction is increased when problems are resolved quickly and when
support is provided promptly.

iii) social gratification

 Social gratification refers to the advantages that customers get from
using an e-commerce platform to communicate with others, exchange
stories, and participate in community-related activities.According to the
website (Mentek,M. 2022) the tool might make it simple to share purchases
and products on social media. Before making a purchase, people
frequently ask friends and relatives for advice. Social media platforms allow
users to post product links, reviews, and wish lists, satisfying this social
need. Through MR.D.I.Y.'s interaction with social media platforms, users
may engage on social media by sharing their purchases, asking for advice,
and recommending products to their network. This not only makes
MR.D.I.Y. more visible, but it also creates a community of interested
clients.Through features like social sharing, customer reviews, community
forums, influencer alliances, and interactive aspects, MR.D.I.Y.'s e-
commerce platform facilitates peer validation, community building, and
social involvement.

iv) Security and Trust

According to the journal(the millennial generation, 2017) security

describes the precautions used to shield sensitive consumer financial and
personal data against fraud, security lapses, and other nefarious activity
while Customers' faith in an online retailer's capacity to fulfil their promises
of providing goods and services is known as trust in e-commerce.Building
confidence is largely dependent on MR.D.I.Y.'s established reputation as a
trustworthy retailer. Customers are reassured by a strong brand reputation
that the company will provide high-quality goods and services.Additionally,
the business helps clients make educated judgements by offering
thorough and accurate product descriptions, specifications, and photos.
This lowers the possibility of disappointment and promotes
trust.Additionally, MR.D.I.Y. uses encrypted connections and reliable
 payment processors to guarantee the security of every transaction on its
platform. This lessens the possibility of risks to the financial information of
clients. Transparency and Communication: MR.D.I.Y. keeps consumers
informed about their orders with emails of confirmation, tracking numbers,
and delivery status updates. Informed and comforted customers contribute
to the development of trust through this transparency.

From a tiny hardware store, MR.D.I.Y. has grown into a well-known retailer of home
improvement products. MR.D.I.Y. may improve customer experience, streamline
operations, and preserve its competitive advantage in the global market by utilising
technology and data analytics.
3.0 Disadvantages that MR.DIY experience and factors lead to an e-commerce
venture

3.1 Disadvantages of MR.DIY. experience

MR.DIY. may encounter various drawbacks if they disregard the necessity of
entering into an e-commerce platform. One of these disadvantages is the inability
to meet evolving customer expectations. In today’s market, customers anticipate
a smooth omnichannel experience, which includes the convenience of shopping
both online and offline. Neglecting to offer an e-commerce option could result in
customer dissatisfaction and a decrease in sales.

Additionally, an e-commerce platform can provide MR.DIY. with valuable

customer data and insights. Through online transactions, MR.DIY can gather
information about customer preferences, shopping habits, and demographics.
This data can be used to tailor marketing strategies, improve product offerings,
and enhance the overall customer experience. Without an e-commerce platform,
MR.DIY. would miss out on this valuable source of information and may struggle
to stay competitive in the market.

Another drawback of not having e-commerce platforms is the limited reach and
accessibility. With physical stores, MR.DIY is limited to serving customers within
a certain geographical area. However, with an e-commerce platform, MR.DIY
can reach customers nationwide or even globally. This expanded reach can lead
to increased brand awareness, customer base, and ultimately, sales.

Lastly, not having an e-commerce platform may hinder MR.DIY’s ability to adapt
to future market trends and technological advancements. As technology
continues to advance, online shopping is likely to become even more prevalent.
By disregarding the necessity of entering into an-ecommerce platform, MR.DIY
may find it challenging to keep up with changing customer preferences and
market demands.
3.2 Factors lead to an e-commerce venture

i) Market pressure and competition

According to the website (ecommerceDB (2023).) the retail industry

experienced heightened rivalry following the rise of e-commerce. MR.D.I.Y.
and other traditional brick-and-mortar establishments were up against
competition from internet retailers that provided convenience and
affordable prices. The brothers realised they would have to change with the
times in order to be relevant and competitive in the evolving retail space.
Because of this, people are now more likely to shop online, especially for
non-perishable and non-consumable goods. Because to lockdowns and
movement restriction orders brought on by the Covid-19 outbreak, many
consumers were compelled to turn to internet platforms for their shopping
needs, which exacerbated this shift.

ii) Advancements in Technology and Digitalization

According to the website ( Beylo, B. (2022). ) opportunities to

improve customer experience and operational efficiency arose with the
rise of digitization. MR.D.I.Y. understood how crucial it was to use
technology to enhance their market positioning and expedite processes.
Their deployment of a robotic e-commerce warehouse demonstrated their
dedication to utilising technology to enhance productivity. Furthermore,
because of the country's high internet penetration rate and tech-savvy
populace, Malaysia's e-commerce business was expanding quickly and
had a lot of promise. Malaysia's e-commerce industry brought in a healthy
amount of money, and the trend suggested that it would continue to
expand. This gave MR.D.I.Y. a very profitable chance to reach a larger
audience of clients.
iii) Leadership and Internal Advocacy

Tan Yu Yeh was first reluctant to embrace e-commerce, but Tan Yu

Wei and the management team pushed for it. Yu Wei was instrumental in
persuading his brother to accept the internet business strategy because
of his experience and outlook on the retail industry. According to the
website ( Beylo, B. (2022). ) By spending money on cutting-edge
logistical solutions, such a robotic e-commerce warehouse, MR.D.I.Y.
was able to manage online orders more effectively. The necessity to fulfil
the increasing demand for e-commerce and boost operational efficiency
—which in turn improved consumer satisfaction—was what motivated this
investment. The leadership's visionary strategy was crucial in guiding the
business towards digital transformation.

iv) The business cannot accommodate a large number of orders

Mr DIY's business expanded into the e-commerce platform owing to

a significant volume of orders and unfamiliar brands in rural places. One
of the reasons Mr DIY's company opted to open its own web shop was to
guarantee it could manage the huge number of visitors. This is because,
according to (4 minutes read 03, 2020), MR.DIY serves 100,000 clients
every month in 500 locations. So it is clear that they want an effective
web shop to ensure that every customer's wishes and requirements are
addressed without having to visit the store to purchase basics. Not only
that, the presence of this online store will lessen congestion at company
premises since clients who are busy with work do not have time to shop
by buying at the web store using smartphones in accordance with today's
technology developments.

v) The business brand is not known in remote areas.

 Furthermore, the brand was not well appreciated in remote places,
which prompted Mr DIY's firm to open an online store. This is because
places remote from metropolitan areas have a limited population, which
results in fewer responses from consumers, less sales, and it is
conceivable that there are obstacles that make it difficult for them to
reach the company location. According to (4 minutes read 03, 2020), in
rural locations without MR.DIY outlets, the firm misses out on a profit-
generating potential. However, with a web store, the business can be
accessed anywhere with a strong service network that allows them to
make online purchases.
4.0 Data data analytics and digitalization affect the business strategies and
sales/marketing at MR.D.I.Y.

According to the website (Stormboard, 2024), data analysis is the act of analysing
massive data sets to identify patterns and trends that may be used to make decisions. It
entails gathering data from numerous sources and applying analytical methods to gain
insights. There are four sorts of data analysis that should be employed in business:
predictive, perspective, diagnostic, and descriptive. Prediction uses several computer
techniques such as machine learning, data mining, and statistics. It searches for
patterns, linkages, and trends in the data that might assist predict what could happen in
the future. Not only that, but perspective is a type of analytics that goes above and
beyond by demonstrating the appropriate action. It accomplishes this by evaluating
prospective solutions using big data or artificial intelligence. This enables accurate
action plans that take into account expected effects.

One advantage of employing analytical data is that it enables the automation of

complex processes. Automation saves you time and money while lowering the
possibility of mistakes. Data analytics may help you discover processes that can be
automated and provide guidance on how to do so efficiently. Process automation is also
vital since it makes any AI or machine learning system more effective. Furthermore, it
aids in performance tracking. Data analytics can give a detailed picture of the success
of your digital transformation. To keep your plan on track, measure critical indicators
such as customer interaction, page visits, and purchases. This allows you to make
timely changes to keep your digital transformation going ahead.

According to (Moh, 2021), home improvement supplies retailer Mr DIY Group (M)
Bhd has 800 outlets in Malaysia, which was achieved via the application of analytical
data and scientific algorithms. For branch development, or the establishment of new
stores, we prioritise data (collected and analysed), such as population and residential
numbers, in site selection. The information gathered will be utilised to decide where to
build a store and tailor the business's offerings to meet the demands of the people. For
example, in some areas, it may not be large enough to sustain a full-size store, so we
introduce Mr DIY Express, which works in a smaller format of 2,000 to 4,000 square
feet.

Data collection and interpretation are proprietary aspects of the company to help
Mr. DIY make the right decisions. The company uses data to adjust its inventory to stay
relevant and focused, and to bring convenience and proximity to people in the
neighbourhood. Data is also used to determine the demand of a community, and then it
organises store formats and offers to support that community, creating economic
sustainability for the company. Products are supplied in accordance with our tagline
'Always Low Prices', and we do this by utilising our size and data analytics to guarantee
that we choose clients for each shop at scale.
5.0 References

4 mins read 03. (2020, January 3). Kajian Kes Maxis eCommerce: MR.DIY.

Maxis Business.

https://www.business.maxis.com.my/ms/spark/testimonials/ecommerce-case-

study-mr-diy/

Barrow, A. (2022, February 3). Mr. DIY: How Two Brothers Turned One Store

Into A $5B Empire. Macro Ops: Unparalleled Investing Research. https://macro-

ops.com/mr-diy-how-two-brothers-turned-one-store-into-a-5b-empire/

ecommerceDB. (2023). Malaysia eCommerce Market - Data, Trends, Top

Stores. Ecommercedb.com. https://ecommercedb.com/markets/my/all

Moh, J. (2021, August 19). Data analytics – the tool behind Mr DIY’s success.

Thesun.my. https://thesun.my/business/data-analytics-the-tool-behind-mr-diy-s-

success-FE8226474

Stormboard. (2024, April 10). Data Analytics: the Guiding Light of Digital

Transformation. Stormboard. https://stormboard.com/blog/data-analytics-guiding-

digital-transformation#:~:text=Data%20analytics%20can%20provide%20a

theedgemalaysia. (2022, June 30). E-commerce: The digital heart of Malaysia’s

economy. The Edge Malaysia. https://theedgemalaysia.com/article/ecommerce-

digital-heart-malaysias-economy