Strategic Retail Marketing and Promotions for TESCO in Malaysia

Running head: TESCO 0
Strategic Retail Marketing and Promotions
TESCO

TESCO 1
Executive summary:
TESCO is the company that is a very big name in the retail industry. This is the company that is
headquartered at UK and has set up many of its stores in different countries. All over the
company have its stores in around 15 countries. Malaysia is one of those countries where the
business of TESCO is gradually uplifting. It has been analysed that the retail market of Malaysia
has high potential and thus results in providing many opportunities that can be explored by
TESCO.

TESCO 2
Table of Contents
Introduction:...............................................................................................................................................1
Roles and nature of retail market:...............................................................................................................1
7P’s..............................................................................................................................................................2
PESTLE.........................................................................................................................................................5
STP:..............................................................................................................................................................6
Customer acquisition and retention:...........................................................................................................7
Innovation and trends:................................................................................................................................7
Recommendations:.....................................................................................................................................9
Conclusion:..................................................................................................................................................9
References:..................................................................................................................................................9

TESCO 3
Introduction:
Setting up the business in the international market requires the company to analyse the market
and the environment of the international country. Tesco is a British general merchandise and
multinational grocery retailer having its stores situated in 12 countries across Europe and Asia.
TESCO is the company that is headquartered at UK and has stepped into Malaysia as well. It is
also a market leader in grocery in UK, Hungary, Ireland and Thailand. There is a constant
increase in the revenue of the company over the years and is currently reported to be increased to
£55.92 billion in the year 2017 from £53.93 billion in the year 2016. The main competitors of
Tesco include Sainsbury’s, ASDA, Lidl, Aldi, Waitrose and Morrison’s. In terms of profits,
Tesco is the third largest retailer in the world. Moreover, Tesco has occupied the position of
ninth largest retailer in terms of revenue. In the year 2016, Tesco Malaysia was ranked at first
position among the other retailers in Malaysia by Kantar World panel.
The trends in the retail industry are at the changing phase due to various new developments and
varying demands of the customers. Nowadays, those retail businesses are becoming popular who
are involved in the promotion of transparency of operations, better quality of products and the
adoption of sustainable practices. Moreover, the provision of unique in- store services to the
customers is becoming popular among the retailers. The latest technological developments have
necessitated the retailers across the globe to adopt mobile payment solutions. Also,
personalization of services has also become a trend in the retail industry for enhancing the
experience of the customers on the stores and while making online purchases.
Following is the report that focuses on analysing the strategies of the company in the local
market that is UK and the international market that is Malaysia.
Roles and nature of retail market:
Retail market is the market that deals with selling the consumer goods to the market. It is very
much required to manage such retail market and the industry as a whole. This is because when
the monopolistic conditions appear, the market tends to exploit the consumers by charging high
prices as they are selling consumer goods which need to be bought by the consumers at any cost.
There are various components of retail market such as product, rice, place, promotion, customer