1.0 Overview of Grocery Sector - Tesco

1.
0 Overview of Grocery Sector Tesco

Besides oxygen and sunlight, nowadays groceries has become one of the
categories that we cant live without. Due to the diverse religion and races in
our country, the grocery retailing industry in Malaysia is probably the most
dynamic and diverse due to the several elements such as Halal and nonHalal foods. In year 2013 alone, Malaysia had imported a whopping amount
of $10 billion USD of food and beverages product with a forecasted growth of
6% annually (USDA, 2014).
1.1 Background of Tesco Malaysia

Tesco plc originates from England and is also one of the largest retailer in the
world that operates more than 2300 supermarkets worldwide. Their online
store Tesco.com is also ranks as the largest online supermarket in the world.
In other countries, besides online supermarket they also offer diversified
services such as Tesco Financial Services for installment plans and also Tesco
Express chain that provides essentials daily groceries similar with the
concept of 99 Speedmart (Advameg, 2015).
Tesco Malaysia established on 29 November 2001 and it is a joint-venture

between Englands Tesco Plc and Malaysias Sime Darby Bhd with the stakes
of 70% and 30% respectively. Currently in Malaysia, Tesco Malaysia operates
54 stores nationwide in all major cities. Tesco Malaysia is one of the Top 3
retailer nationwide with the brilliant record of RM82.2 million net profit in
year 2014 alone (Malaysian Insider, 2015).
1.2 Climate and Situation

With the current economy downfall of events such as depreciation of
Malaysia Ringgit, most of the price of imported goods went up significantly.
Besides that, the GST policy that implemented one year ago has also
resulted a chain effect of price hikes from manufacturing to logistics. With
multiple economy downfall, it is challenging for Tesco to remain competitive
while maintaining low prices for all their product.
In the 21st century where everyone wants everything to be efficient and

cheap, almost every retail sector has adopted online shopping with express
delivery. Also, with the busy lifestyle in urban areas, most white collars dont
have the luxury of time and energy to purposely visit hypermarket for
groceries.
1.3 Primary Business & Business Sustainability Plan

As mentioned above, Tesco primary business is focusing on grocery retail
which consists categories of foods, drinks, personal hygiene and household
products. To compete with the emerging competitors such as 99 Speedmart
and 7-11 that offers mobility and convenience for their customer, Tesco has
recently come up with an ultimate business sustainability plan which is
Tesco.com.my online grocery shopping. In Tesco.com.my, they offered
almost everything that we can purchase in Tesco outlets and also provides
express delivery within the same day that we order. Besides that, Tesco also
launched a loyalty program that allows their customer to accumulate points
to be exchanged into cash value products to maintain long term growth and
customer loyalty.
2.0 Environment and Economic Factor

2.1 Competitive Pressures & Demographics
2.2 Consumer Behavior & Buying Preference
2.3 Influence of e-Commerce and Technology
3.0 Competition
3.1 Direct & Indirect Competitors
3.2 Measurement of Competitive Strength
3.3 Competitive Threats
4.0 Retail Market Strategy

4.1 Target Audience
4.2 Image & Public Relation
4.3 Utilization of Technology
4.4 Global Presence & Strategy
4.5 Geolocation Strategy
4.6 Marketing Approach
5.0 SWOT Analysis
Reference
1. Advameg. (2015). Tesco plc Company Profile, Information, Business
Description, History, Background information on Tesco plc. [Online]
Available at: http://www.referenceforbusiness.com/history2/56/Tescoplc.html [Accessed on 14th March 2016]
2. Malaysian Insider. (2015). Is Tesco Malaysia up for sale? [Online]
Available at: http://www.themalaysianoutsider.com/sideviews/article/istesco-malaysia-up-for-sale-maxmonster-analytics [Accessed on 14th
March 2016]
3. USDA. (2014). Malaysia Retail Foods Annual 2014. [Online] Available
at: http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail
%20Foods_Kuala%20Lumpur_Malaysia_11-19-2014.pdf [Accessed on
14th March 2016]

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1.

0 Overview of Grocery Sector Tesco

1.1 Background of Tesco Malaysia

Tesco Malaysia established on 29 November 2001 and it is a joint-venture

1.2 Climate and Situation

In the 21st century where everyone wants everything to be efficient and

1.3 Primary Business & Business Sustainability Plan

2.0 Environment and Economic Factor

4.0 Retail Market Strategy

5.0 SWOT Analysis

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