Basic Info About Tesco Malaysia

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Tesco Stores (Malaysia)

Background/ History

Tesco Stores (Malaysia) Sdn Bhd was incepted on 29 Nov 2001, as a strategic alliance with local conglomerate, Sime Darby Berhad of which the latter holds 30% of total shares. Malaysia was selected as the next market of entry because of its growing economy with political stability, market size & GDP and its ability to grow. The first Tesco store in Malaysia was officially opened in May 2002 in Puchong. The opening of Tesco changed the consumer demand as well as brought new standards in retailing. This spurred both big and small retailers to be efficient and competitive with the end result of benefiting Malaysian consumers. The second store in Malacca was opened in October 2002, followed by the opening of the Klang Bukit Tinggi store in December 2002, the Mutiara Damansara store in March 2003, Sg Petani store in December 2003, Penang store in November 2004, Ipoh in January and Shah Alam in July 2005. We have also launched Tesco Banting, Tesco Express Selayang, Ipoh & Kuantan in 2005.

Tesco offers Malaysians a complete one stop shopping for their needs - fresh food to groceries from household needs to apparel. Tesco carries a total of 86,000 lines of products including more than 1,300 Tesco branded items. Tesco was founded in 1924. Over the past 81 years, as the retailing market has changed, the company has grown and developed, responding to new opportunities and pioneering many innovations.

The brand name of Tesco first appeared on packets of tea in the 1920s. The first store opened in 1929 in Burnt Oak, Edgware in South East London By the early 1960s, Tesco had become a familiar name. As well as groceries, the stores sold fresh food, clothing and household goods. The business then prospered and grew. It evolved and changed over the years and is today Britain's leading food retailer.

Marketing Strategy

Target market
Target market is the focus group of the retail establishments market. Every retail establishment specializes in a different market also known as market specialization. Market specialization is a business term meaning the market segment to which a particular good or service is marketed. It is mainly defined by age, gender, geography, socio-economic grouping, or any other combination of demographics. It is generally studied and mapped by an organization through lists and reports containing demographic information that may have an effect on the marketing of key products or services.

Competitive advantage

Location Selection

The locations for the tesco stores are mostly isolated stores because the size of the premices is very large. The average store space is about 2,827 square metres. Though there are some of tesco stores which are located in unplanned business districts.

For this assignment we shall look at 4 main tesco stores located in selangor because there are to many stores to go over individually.

Tesco Puchong

Tesco puchong is an example of a store which is located at an unplanned business district. It is located along a main high way which is the damansara – puchong (LDP) . Although the area across the highway is a planned business district which was planned and developed by IOI Properties , the area which Tesco is located is not a planned business district. This means there is a low amount of pedestrian traffic and there is no other facilities around the area. One of the reasons why Tesco have managed to open its puchong brance in an unplanned business district is because tesco puchong was open at the time puchong was not a fully developed town.

Tesco Kajang

The story for tesco kajang is slightly different because it is located in an isolated location this is because kajang town was already fully saturated and cant accommodate a hypermarket in town so Tesco choose to set its store...
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