51102641 Ppt Tesco Stores Malaysia Sdn Bhd 2

8/11/2019 51102641 Ppt Tesco Stores Malaysia Sdn Bhd 2

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Tesco Stores (Malaysia) Sdn Bhd


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Prepared by :

Noor Ulfah Muhamad Zin 808504Mohd Fhadli Mohd Fudzi 808493


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Overview of Retail Industry in Malaysia

Tremendous growth since 1980s

Around 400 retail outlets in MalaysiaForeign-owned hypermarket are fast gaining popularity inMalaysia

1st Qtr, 7.90%

2nd Qtr, 5.60%3rd Qtr, 9.80%

4th Qtr, 6.10%

Sales growth rate for the year 2010

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


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Tesco: Then and Now


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Tesco History

Founder : Jack Cohen in 1919 based in UK

First product : Tesco Tea

First store : Opened in 1929 in Burnt OakFourth-largest retailer- measured by revenues (after Wal-Mart, Carrefour and Metro) and second-largest retailer-

measured by profits (after Wal-Mart)

Tesco have 14 market all over the world including UK

Leader in 5 countries: UK, Korea, Ireland, Thailand and Hungary


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UK R.O. Ireland

Czech Republic

Poland

Slovakia Hungary

Turkey

Thailand

Malaysia

Japan

Korea USA China

Tesco Stores Worldwide

India


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Comparison of Tesco market around the world


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Tesco Stores (Malaysia) Sdn Bhd

Company Overview

Incepted on 29 November 2001

Strategic alliance -Tesco PLC UK with local conglomerate, Sime

Darby Berhad of which the latter holds 30% of total sharesFirst store in Malaysia-Puchong, Selangor (May, 2002)

Currently operates 33 Tesco and Tesco Extra stores

Acquired Makro Cash & Carry in Malaysia (Dec 2006) andrebranded to Tesco Extra

2009-Tesco as the number 1 Hypermarket in Malaysia.


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Overview of Tesco Stores Malaysia Sdn Bhd

Tesco partner with Sime Darby

First Tesco store opened atPuchong

Launched Tesco own brand, TescoValue

Tesco Malaysia launches its own

house brand, Tesco Choice

Tesco opens 4 more stores which atIpoh, Shah Alam Kajang andBanting


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Acquired Makro Cash and Carry

Tesco launched ClubcardTesco launched TescoExtra

Tesco launched Green Clubcardand Green BagsTesco launched 50 Basic NeedsGuaranteed Not Beaten on Price

Tesco number 1 Hypermarket inMalaysiaTesco launched Tesco LightChoicesTesco launched Tesco - RHBCredit/Debit Card to consumers


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TESCO Malaysia: Adoption of strategy

Core UK business Non-food business Community Personal Finance

Club card Green club card Own brand value Home brand: Tesco

Choice

To create value forcustomer to earntheir lifetime loyalty

Everyday Low Price 50 Basic Needs

guaranteed notbeaten on prices

LowPrice

strategy

CustomerFocused

strategy

Diversify

strategy

Growth

strategy


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TESCO Malaysia: Management

Tesco PLC has appointed Tjeerd Jegen as chief executiveofficer (CEO) for Malaysia from April 26 2010

Jegen replaced Chris Bush, who has taken over the helm at

Tesco ThailandJegen will be responsible for all areas of the business, fromoperations to marketing, finance and corporate affairs,involving 33 stores and over 11,000 staff

To this appointment, Jegen was the chief operating officer forThailands Tesco Lotus.

Jegen began his retail career in 1995 when he joined RoyalAhold as management trainee


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TESCO Malaysia: Business Operation

Operates retail stores for fresh food, groceries, household

needs, and apparel in MalaysiaEmploys nearly 13,000 employees

Operates 33 stores and in two formats. These are:

i. Tesco Hypermarketii. Tesco Extra Hypermarkets


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Tesco and Tesco Extra format

TESCO TESCOExtra

Current Tesco offer of:Low pricesBroad rangeGreat customer serviceProduct qualityStrong mall offer

With Extra :Provides products and

services focused for smallbusinesses

Bigger pack sizesSpecial trolleysSpecial checkoutsDedicated business

development team

Enhanced facilities


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Competitors and Competitor Analysis

Hypermarket Competitor AnalysisBackground

Offer products such as grocery product, clothing,consumer goods and household appliances besidesthese commodity products Concept of fresh quality product at discounted priceand direct from producer to customer

Offer customers merchandise of better value especiallyon apparels Extends to financial services, restaurantoperations and shopping centre development

Offer variety of products at the lowest possible prices Offer range of local merchandise, fresh local fruits,vegetables, seafood within wet markets

Wide range discounter, single focus on low incomeMalays Limited choices


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Comparison of market share between hypermarket inMalaysia for 2010

30%

24%

22%

15%

9%

Market Share of hypermarkets in Malaysia

TescoGiant

Jusco

Carrefour

Others

Tesco

Giant

Jusco

Carrefour

Others

Source: Planet Retail

Stars@2010


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SWOT Analysis

Strengths Weaknesses

Own house brand-Tesco Choice Competitive pricing strategy Customer loyalty/relationship

Acquisition of MakroStrong hypermarket format

Dependable of UK business Burden of higher cost Foreign brand

Opportunities Threats

Have ready customers-low and

mid-income householdsExplore into new location in

MalaysiaDiversification to maintain UK

business

Stiff competition within industry

Changing in customer tastesGovernment policies

51102641 Ppt Tesco Stores Malaysia Sdn Bhd 2

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