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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