Introduction to Tesco Malaysia Analysis

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Tesco Stores (Malaysia) Sdn. Bhd. is a strategic alliance between Tesco Plc UK and local conglomerate Sime Darby Berhad that was established in 2001. The company opened its first hypermarket in Malaysia in 2002 and currently operates 33 stores in Malaysia. Tesco Malaysia offers a value range of products, including its own branded range, electronic goods, and clothing. The company has also launched its own Tesco Light Choices and Tesco-RHB Credit/Debit card. As a responsible corporate citizen, Tesco Malaysia has worked with communities and NGOs to raise funds for the Tesco-MAKNA Cancer Research Fund for Life. The company aims to create value for customers and earn their lifetime loyalty.

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Introduction to TESCO Tesco Stores (Malaysia) Sdn. Bhd. was incepted on 29 November 2001, as a strategic alliance between Tesco Plc UK and local conglomerate, Sime Darby Berhad of which the latter holds 30% of the total shares. Tesco opened its first store in Malaysia in February 2002 with the opening of its first hypermarket in Puchong, Selangor. Tesco Malaysia currently operates 33 Tesco and Tesco Extra stores. Total store by state in Malaysia is Selangor with 12 store, Kuala Lumpur 3 store, Perak 5 store, Johor 4 store, Penang and Kedah 3 store, Melaka, Negeri Sembilan and Kelantan 1 store.

In year 2003, Tesci Lauched Tesco own brand, Tesco Value. In 2004, Tesco Malaysia lauches its own house brand, Tesco Choice. In December 2006, Tesco also acquired Makro Cash & Carry in Malaysia, a local wholesaler which was rebranded to Tesco Extra and provides products for small local retailers. In 2007, Tesco launched ‘ClubCard’. This acts a way to say thank you to customers by giving money back to them. Clubcard has received an overwhelming response from customers with nearly 2 million household members signed up to date. As of January 2009, Tesco have rewarded nearly RM10 million worth of Clubcard Cash Vouchers to the customers.

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Later in year 2008, Tesco introduce Green Clubcard and Greenbags making Tesco Malaysia to be the first Tesco International business to introduce the Green Clubcard scheme. As part of its global commitment, Tesco Malaysia is market leading on tackling climate change in techniques of energy saving, launching Green Clubcard Points to incentivize customers shopping with their own bags, introduce degradable carrier bags, promote positive behavior among staff though Energy League competition intra stores and a recycling centre to facilitate customers to do their part for the environment.

Launching new promotion campaign to the consumers, 50 basic needs guaranteed not beaten on price. 2009 embarked Tesco as the number 1 Hypermarket in Malaysia. Tesco Malaysia offers a value range; own branded range, electronic goods, the loyalty clubcard and clothing. Tesco launch very own Tesco Light Choices and also Tesco-RHB Credit/Debit card to the consumers in the same year. Tesco Malaysia employs nearly 12,000 employees and operates 33 stores and in two formats: Tesco Hypermarkets The hypermarket format offers customers a complete one stop shopping for heir needs from fresh food to groceries, from household needs to apparel. It carries more than 60,000 lines of products including nearly 3,000 own brand of products ranging from food to non-food items. Tesco Extra Hypermarkets The Tesco Extra format serves the needs of small businesses, families and individuals all under one roof by providing a comprehensive range of products and services focused for small businesses including bigger pack sizes, special trolleys and checkouts as well as a dedicated business development team to support small business owners with their orders.

As a responsible corporate citizen, Tesco Malaysia has responded and worked with communities including NGOs such as the National Cancer Council (MAKNA) to raise more than RM500, 000 for the Tesco-MAKNA Cancer Research Fund for Life. It is Tesco Stores (M) Sdn Bhd’s aspiration to create value for customers to earn their lifetime loyalty.

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