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145857412 Research Of Tesco Malaysia Essay

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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 Malaysia commenced operations in February 2002 with the opening of its first hypermarket in Puchong, Selangor. Tesco Malaysia employs nearly 15,000 employees and operates 40 stores and in two formats following the acquisition of the Makro Cash and Carry business in Malaysia in December 2006.Theseare:

Tesco Hypermarkets
The hypermarket format offers customers a complete one stop shopping for their 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. Tesco Malaysia is the only Hypermarket to run its own loyalty card, which returns money to customers 4 times a year. Tesco Clubcard and Biz Clubcard were introduced, as 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.

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

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than RM500, 000 for the Tesco-MAKNA Cancer Research Fund for Life. 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.

Tesco is proof of the good a little dressing up can do. The world's fourth-largest grocery retailer, Tesco runs about 5,380 stores in the UK (where it's the #1 retailer), and more than a dozen other countries in Europe, Asia, and the US (under the Fresh & Easy banner). Built on the "pile it high, sell it cheap" creed of founder Sir Jack Cohen, Tesco abandoned its discount format, with its down-market image, for a variety of dressier midmarket formats. Its operations include supermarket, convenience, and gasoline retailing (Tesco Express), small urban stores (Tesco Metro), superstores (Tesco Extra), and financial services (Tesco Personal Finance). is Britain's leading Internet delivery service. The purpose of this assignment it aims to provide an analysis of the situation of own brand and particularly Tesco brands in the Malaysia. The management of Tesco Stores Malaysia needs to know whether it would be feasible to introduce its own branded chilli sauce to the Malaysian consumers.The concept of own brands has been investigated in many studies and brands has been defined in different ways. For instance, were able to categorize brands into twelve ―most important‖ themes.

Own brands can be perceived as a legal instrument, a logo, a company, a shorthand, a risk reducer, an identity system, an image in consumers‘ minds, a value system, a personality, a relationship, an added value and an evolving entity. All of those categories are derived from different studies and reflect different points of view.

However, for the purpose of a research process study, perception of a own brand as complex information about attributes of the product, such as producer, price, shape or performance suits best. Nowadays, retailer own brands are thus to be found next to national brands in virtually every food category and some of them, including Tesco, have been developed to a form of standard brand in their own right . Own branded products are simply described as ―all merchandise sold under a retail store‘s private label‖ .

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This vague definition is then adopted by many other authors who characterize it as the ―products retailers sell under their own names‖. Terminology, in addition, is not stable and various terms, such as own brand, own label, private label, private brand and retailer‘s brand, are currently used to refer to this phenomenon.

Generally speaking, private brands or own brands can involve a broad scope of quite different products. Nonetheless, whatever they are called, these own brands have experienced significant image revolution and are no longer a synonym for cheap and poor quality imitations. The products sold under store name are now being constantly developed and innovated, since they have become a crucial tool to build customer loyalty and to differentiate the store from competitors.

Statement of the Problems and Ideas – Tesco Malaysia offers different brands of chili sauce which is a very popular condiment in their country and because of the continues demand of this condiment the Management of Tesco in Malaysia realize the needs to introduce their own brand of chili sauce for Malaysian local consumer although they already have their own brand of Tesco chili sauce. They also need to know if they are able to compete with the other well know manufacturer of this product or will it be feasible to introduce their own local brand? What would be the demand and how will it be accepted by the public knowing that there are more popular brands in their stores in Malaysia? Will the Tesco group allow their local branding process?

Literature Review – Tesco also allowed local branding to gain local consumer an access to localize products on their own which is usually effective in targeting their preferences this also enhances the store‘s nationalistic approach although most of their products are imported from other country. Tesco also value the manager‘s initiative to think globally by selling their products locally knowing that every little helps or we put our heart to serve you as their slogan. (Tesco Main) Localization of international brands is very effective tools in most stores of different industries so there will be no problem in supplies and management for rebranding. Mc Donald, Pepsi, Walter Mart, Star bucks and other organization also does this strategy to expand their brand.

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But to clarify it would take more than the perception but an actual identification of production process and market testing so as to project the sustainability and return of investment about the research process. Therefore it should be well researched. The production plant, manpower and promotional budget are needed for positioning the new entry of the product. This means that it would really take an initial cost and investment in their production, they need to start as soon as possible in their production to test their product in the market. Locally made products engage in an international organization would be their advantage but they should also understand the product is not made to compete with their products but to ensure that the consumer has more option to buy over their preferred brand or they will end up with competing with each other.

Collection of Pertinent Data – Malaysia is relatively a small country but they have a large arable land consisting of about 3930 hectares reserved only for chili production and cultivation according to the Federal Agriculture Marketing Authority (FAMA 1995) therefore they have the resources to produce their own brand that will provide them their advantage over the competition considering its local branding. Chili is one of the key ingredients for Malaysian cuisine because of its popularity and its taste. The local chili market in Malaysia rose up to 21% starting in 2008 and still gaining demand up to the present times in fact in 2009 they have used more than 50,000 tons of chili in a year in distribution. (The Economic Times Magazine 2009) Knowing that demand is good, the sources and materials are available in Malaysia and Tesco support localization branding it is nearly feasible to start the production process and their goals of re branding is easy to realize knowing that everything is in its right place.

Population and Market Advantages over the competition – it is easy to say that local brand can be best promoted to gain popularity over their people to gain market advantage but in reality this is not always the case because most competing products always look their ways to find a loophole to position their product in the highest level through constant advertisement, trials, free taste and other marketing strategy just to promote their products. Tesco in Malaysia and their management should also think globally if they are going to produce their own products this means that they should not simply limit their Product, Price, Promotion and Place of distribution in a single location but they can also think of expanding their market in different geographic location especially in their neighboring countries in Asia who usually love chili sauce in order to realized its full production potential and demand.

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Their local production supplies or raw materials are another one good advantage to gain higher quality and more affordable pricing scheme. They can also provide employment to their people.
Analysis and Conclusion of the Study – Since every details has been summarized and introduced (excluding financial report), the problem and solution has also been identified we can safely say that the proposal of the Tesco Management in Malaysia in the branding and production of local chili sauce is very feasible in their country. It is very affirmative that this can bring a good response during their introduction so they should not delay their plan. Research Process

Research process usually involves a multi-stage process. Although the actual number of stages may vary, research must include formulating and identifying a topic, reviewing literature, planning a strategy, collecting data, analysing data and writing a report. The research process usually starts with interest in a certain event, situation, object or just wanting to know something about new product. Research is the process of gathering the information needed to answer certain questions and thereby helping in solving problems faced by an individual, firm, organisation or society. For information to be useful, it must be good. The process of getting the information must be good. A good process is must specific or systematic research process.

The steps in the research process are;

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Problem Identification
The first stage of research is to identify problems or issues and to justify the need for research. There are many sources of research problems such as personal interest, personal experiences, social problems, world trends, new development in technology or society, etc.


Formulate Research Questions
Research questions are important to ensure that the research is moving in the right direction. The questions serve as guideline for literature search, data collection, analysis and conclusion. Research questions are usually more specific in quantitative research than in qualitative research. We cannot answer all research questions that rise. Rather, we need to select questions based on the time and cost available in a research project.


Research Philosophy and Approach

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In research, understanding of the appropriate research philosophy and approach is important before beginning a research. You may choose to use an inductive approach rather than a deductive approach. You may choose to follow the physical science approach (i.e. positivism) or focus on the human aspect of studies (i.e. interpretive). Deciding on your research approach is important to justify your own values and how you see the world. This justification at the early stage of a research will determine the way you design your research, collect and analysis data, and conclude your research. IV.

Research Design
In this stage, a range of research methods are available for conducting your research. The choices are between quantitative and qualitative methods. Sometimes the use of combined research methods is encouraged.


Data Collection
Before collecting data, you need to think about the sampling method. Qualitative research will usually adopt a theoretical sampling method while quantitative research will adopt probability or non-probability sampling. You have to decide what data need to be collected such as primary or secondary data. You will also need to think about how to access these data and what method you will use to capture these data. There are many ways you can collect data such as observation, semi-structured or structured interviews. Before collecting data, questionnaires need to be developed.


Data Processing and Analysis
The main issue that needs to be considered here is how to prepare data for either quantitative or qualitative analysis. Data need to be edited and coded for subsequent analysis. For quantitative data, the use of computerized analysis software package such as SPSS is encouraged. Analysis of qualitative data is very subjective and is usually done manually. The use of various qualitative data analysis methods such as pattern matching, textual analysis, grounded theory and narrative analysis depend on the nature of the data itself.


Conclusion and Report

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The final report presents the whole research project from the research issues, literature review, research methodology, findings, data analysis and conclusion. Not all reports are of the same format; as a researcher you have to decide on the structure, content and style of the final report.


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The development of a research question
To conduct research we need to develop a focus. This focus takes the form of a ‗research question‘, this is the issue that we want to explain, understand or make sense of (Weick, 1996). Having raised the issue and emphasized the centrality of the ‗research question‘, it is important to discuss this in some detail. Developing, or articulating, a research question is the most important element in the entire research process as, from this, many things follow. In the assessment or evaluation of a research project, whether it is a postgraduate dissertation, a PhD, or a piece of consultancy, being able to identify a coherent, well articulated research question is absolutely critical. The research question encapsulates what the research is about. However, a degree of realism needs to be applied to what can be achieved. In framing a research question, the ‗do-ability‘ of the project should always be considered. Many research questions are soon found to be over-ambitious or not practical. Many projects fail because the researcher cannot get access to the subject of their research. Unfortunately, this is a particular problem in management research as many organizations will not allow the researcher access to gather data.

Why is the act of articulating a research question so important? Firstly, the research question is the focus of the piece of work, encapsulating in a statement what it is trying to be achieved. If there is uncertainty about the focus of the research, then a high quality piece of research cannot be undertaken. Furthermore, the way a research question is articulated will largely determine the methodology or approach to evidence collection and analysis that will be used. If a research question is not articulated clearly, the wrong approach to answering the research question may be chosen. Essentially, having defined what the research is trying to achieve will often shape how the research will need to proceed.

Articulating a research question
Given the centrality of the research question to the research process it is essential that researchers understand how to frame or articulate a research question. Common criticisms of research proposals are that:

• There is no clearly articulated research question at all

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• What is assumed to be the research question is articulated in a way that it does not render that question testable
• The research question is articulated badly or it is wrongly formulated, and • The research question was unrealistic and could not be achieved. By focusing on trying to understand or explain something, we will inevitably be asking questions beginning with phrases such as "How does….?"; Why does…..?"; What is the relationship between x and y?; and, "Given a particular theory, what will be the effect of doing x on y?" Questions of this type are research questions. Operational sing the research question

In the previous section we developed a concise research question and by articulating the research question in this way, we could more easily see how we could implement the evidence collection and analysis phases of the research process to test our hypotheses. While the research question was now relatively clear, we still had some work to do if we were to test the research question operationally. First, we had a number of concepts that we were interested in measuring (loyalty, motivation, morale, commitment and sense of job security) but before we could measure them, we needed to be clear about precisely what it was that we were trying to measure - essentially we needed to develop operational definitions of these terms.

Having defined concepts, the next phase of the research involves the development of operational measures. The easiest way to achieve conceptual clarity and develop operational definitions of concepts and constructs is to explore the literature to see how they have been defined in earlier research. This is an important step, as clear and concise definitions of terms need to be developed if they are to be reliably and validly measured. By adopting earlier operational definitions it is possible to directly compare findings with those of other researchers in the field. In addition, it will allow the researcher to compare whether the findings are consistent with earlier research, or not, and also isolate quite clearly what information is new (i.e. what the contribution to knowledge has been). It is in the development of operational measures of constructs that the terms ‗validity‘ and ‗reliability‘ become important. If we are to measure constructs, we need to develop items to be included in a questionnaire that are both valid (they measure what we think they measure)

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and reliable (they measure things consistently in different settings and at different times). For a discussion on the importance of validity and reliability see Mitchell (1996). Using market research to launch a new brand

Brands play an important role in the confectionery industry. A brand is a name, mark, or feature, which distinguishes one product from another. A good brand effectively guarantees that it will deliver all of the qualities that the consumer associates with it. Tesco want carries out a systematic process to identify new product ideas, which can be developed and brought to the market. This process always starts with a market research exercise.

The purpose of market research
Market research is the collection and analysis of data in order to identify and satisfy consumer needs. The main purpose is to reduce risk and facilitate decision making. It is particularly useful when launching a new product and ensures that the right goods are produced. Market research provides information on consumer needs and wants, competitors, the marketing mix and potential sales.

Consumer needs and wants - individuals have different requirements and consumers with similar characteristics must be identified. A company...

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