A Comparative Study on the Promotion and Advertising Used by Tesco and Carrefour Hypermarkets in Malaysia

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ABSTRACT This study was set out to compare the promotion and advertising strategies used by Tesco and Carrefour hypermarkets in Malaysia. Various selection of relevant literature was sought to establish a solid framework. Through a survey which covered a sample population of 30 respondents, the study was able to determine that Tesco seems to be more popular compared to Carrefour. It highlighted that effective advertising and promotion strategies have contributed to the hypermarket’s popularity. The study significantly indicates the advertising and promotion strategies that both hypermarkets practice and describe how they manage to be more attractive and how they analyze they companies’ weaknesses and strengths. This study also discusses the use of marketing strategies to enhance the productivity in order to be efficient. Many retail outlets have been growing since the early 1980s due to the change of era. Foreign-owned hypermarkets are fast gaining their popularity in Malaysia as they come with a different concept from the other retail outlets which exists today. Hypermarket is a concept of supermarket and department store together under one-roof. But different retailers have different marketing strategies to attract customers. Therefore, the most interesting examples of leading hypermarkets in Malaysia are Tesco and Carrefour. Tesco is an international hypermarket from the United Kingdom. With a huge growth of profit, Tesco then decided to look into the expansion of its international market to maintain its position. Then Malaysia was selected as the next market of entry and the first Tesco Hypermarket in Malaysia was opened in Puchong in May 2002 and followed with the second Tesco which opened in October in Malacca.. Tesco carries a total of 86,000 lines of products including more than 1,300 Tesco branded items. Another leading hypermarket is Carrefour and it is the number one retailer in Europe and the second-largest retailer in the world. Carrefour opened its first store in United Kingdom. Just as Tesco, Carrefour also wanted to expand its market into international market. Then Carrefour came to Asia and in Malaysia, Carrefour is also a leading hypermarket with a wide range of products such as household groceries, garments, shoes, home appliances and many more. Beside that Carrefour also provides lowest price guarantee to its customers. STATEMENT OF A PROBLEM Tesco and Carrefour are both leading hypermarkets in Malaysia that provide offers similar products but with different marketing strategies such as on advertising and promotion. Tesco seems more popular, as Tesco tries to understand its customers need. Tesco also makes the shopping experience better for their customers by adopting a low pricing strategy and tries to keep its price as low as possible from its competitors and without sacrifing product quality. Besides that Tesco also becomes more popular because of every day low pricing (EDLP) strategy that they have been implemented win which it makes many people (customer) attracted to it. Therefore this study intends to identify why Tesco seems to be more popular compared to Carrefour. RESEARCH QUESTION Tesco and Carrefour are both leading hypermarkets in Malaysia, but lately Tesco seems to be more popular compared to Carrefour due to its promotions and advertising. How does this contribute to Tesco being more popular? LITERATURE REVIEW From the research nowadays in the business world, many companies tried to do competition among each other due to make profit for the organization but different company comes with different strategies to promote their company and product to the outsiders so that people from outsider will know about it. Therefore the companies need a better understanding through the marketing strategies. According to Kotler and Armstrong noted that “Marketing is the key element of the companies in dealing with buying With good marketing strategy give the benefits to both sides that are...
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