PPT TESCO STORES MALAYSIA SDN BHD (2)

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Tesco Stores (Malaysia) Sdn Bhd

Transcript of PPT TESCO STORES MALAYSIA SDN BHD (2)

Page 1: PPT TESCO STORES MALAYSIA SDN BHD (2)

Tesco Stores (Malaysia) Sdn Bhd

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Prepared by:

Noor Ulfah Muhamad Zin 808504

Mohd Fhadli Mohd Fudzi 808493            

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Overview of Retail Industry in Malaysia

Tremendous growth since 1980s Around 400 retail outlets in Malaysia Foreign-owned hypermarket are fast gaining popularity in

Malaysia

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 Oak Fourth-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 shares First store in Malaysia-Puchong, Selangor (May, 2002) Currently operates 33 Tesco and Tesco Extra stores Acquired Makro Cash & Carry in Malaysia (Dec 2006) and

rebranded 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 at Puchong

Launched Tesco own brand, TescoValue

Tesco Malaysia launches its own house brand, Tesco Choice

Tesco opens 4 more stores which at Ipoh, Shah Alam Kajang and Banting

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Acquired Makro Cash and Carry

Tesco launched ClubcardTesco launched Tesco Extra

Tesco launched Green Clubcard and Green BagsTesco launched 50 Basic Needs Guaranteed Not Beaten on Price

Tesco number 1 Hypermarket in MalaysiaTesco launched Tesco Light ChoicesTesco launched Tesco - RHB Credit/Debit Card to consumers

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TESCO Malaysia: Adoption of strategy

• Everyday Low Price

• 50 Basic Needs guaranteed not beaten on prices

• To create value for customer to earn their lifetime loyalty

• Core UK business• Non-food

business• Community• Personal Finance

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

Tesco Choice

Low Price strategy

Customer Focused strategy

Diversify strategy

Growth strategy

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TESCO Malaysia: Management

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

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

Jegen will be responsible for all areas of the business, from operations to marketing, finance and corporate affairs, involving 33 stores and over 11,000 staff

To this appointment, Jegen was the chief operating officer for Thailand’s Tesco Lotus.

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

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TESCO Malaysia: Business Operation Operates retail stores for fresh food, groceries, household

needs, and apparel in Malaysia Employs 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 TESCO Extra

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

With Extra:Provides products and services focused for small businesses Bigger pack sizesSpecial trolleys Special checkoutsDedicated business development teamEnhanced facilities

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Competitors and Competitor Analysis

Hypermarket Competitor AnalysisBackground

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

•Offer customers merchandise of better value especially on 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 income Malays•Limited choices

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Comparison of market share between hypermarket in Malaysia for 2010

30%

24%

22%

15%

9%

Market Share of hypermarkets in Malaysia

TescoGiantJuscoCarrefourOthers

Tesco

Giant

Jusco

Car-refour

Others

Source: Planet Re-tail 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 industryChanging in customer tastesGovernment policies