Tesco Marketing Management In Malaysia

Topics: Marketing, Tesco, Pricing Pages: 19 (3134 words) Published: February 23, 2015
Table of Contents
2.Strategic Analysis
Company Analysis
General Environment Analysis
Competitors Analysis
3.Ansoff Matrix Strategy
Market Penetration
Market Development
Product development
Market Diversification
4.Porters Generic Strategies
5.Marketing Segmentation and Market Target
6.Marketing Targeting Tools
Media Campaigning
TV Commercials
Printed Materials
7.Marketing Mix
9. Bibliography

Founded in 2001, Tesco Stores (Malaysia) Sdn Bhd owns and operates hypermarkets under the name Tesco and Tesco Extra in Malaysia however Tesco Stores (Malaysia) Sdn Bhd operates as a subsidiary to TESCO PLC with a joint venture together with Sime Darby Malaysia. Tesco Malaysia is based in Kuala Lumpur with stores in Kuala Lumpur, Selangor, Perak, Penang, Kedah, Negeri Sembilan, Melaka, Johor and Kelantan amounting of a total of more than 41 stores in Peninsular Malaysia. Tesco Malaysia offers fresh produce, groceries, household essentials, it's own brand of both food and non-food items and even apparels in all of their stores (BLOOMBERG).

Strategic Analysis
Company Analysis
Tesco Malaysia have a market share of 11% in the domestic grocery retail segment and have more than 41 stores in Peninsular Malaysia and plans to increases their market share with having over RM3.0 billion investment made Malaysia since 2002 and have more than 13,000 local employees in all of their stores nationwide (EDWARDS, Tim, 2010).

General Environment Analysis
In the present up-to-date environment for supermarket retailing industry operates their business in highly competitive environment. There are various environmental factors, which influences the operation of the organization.

Competitors Analysis
Tesco Malaysia have a a few core competitors in Malaysia, all of them are leading supermarkets withe their own share of market segments and operates in the similar nature and offers similar range of products. The competition for Tesco is highly competitive in Malaysia as the quality of products and services offered by Tesco's competitors are relatively the same. However with it's expansive operational network, Tesco Malaysia got a leading position since it has outlets vary in size in all around Peninsular Malaysia. Tesco ensures its distinct identity by introducing smart marketing mix followed by carefully designed promotional mix to keep themselves to be ahead of their competitors. Competitors for Tesco Malaysia are Giant, Carrefour, Econsave, MYDIN, The Store and the relatively new Aeon Big (GROCERERS, Malaysia). Ansoff Matrix Strategy

Market Penetration
Increasing share in the current market and obtain dominance with the same product or services can be said to be market penetration.. This can be done by either driving out competition or change the existing market. Tesco to improve long-term growth strategy by firstly penetrating the market. The market penetration of Tesco Malaysia can be seen by the purchasing of Makro Malaysia stores in 2006 to boost its market share by rebranding Makro into Tesco Extra. This move was a strategic acquisition by Tesco to strengthen its position in Malaysia and become a market lead in one of Tesco's statement on the acquisition. (REUTERS, 2006) Stated by Tesco Malaysia's CEO Georg Fischer, Tesco Malaysia will expand its presence by opening more stores in 2014 to not only penetrating the Malaysian market (TENG, Liew Jia, 2013).

Market Development
Market development to expand the market and customer base, with the products that a company offers. The move of Tesco by introducing online grocery shopping is a clear example of market development by Tesco. This is a new distribution channel for Tesco to market themselves and capture the spenders as Tesco realise the need of the Malaysian market which is now more tech savy.

Product development
Product Development main...

Bibliography: EDWARDS, Tim. 2010. [online]. [Accessed 27 November 2014]. Available from World Wide Web:
REUTERS. 2006. Tesco says buys Makro Malaysia stores. [online]. [Accessed 27 November 2014]. Available from World Wide Web:
SUN, The. 2014. Tesco unveils toddler range. [online]. [Accessed 27 November 2014]. Available from World Wide Web:
TENG, Liew Jia
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