Marketing Case Study: Tesco Malaysia

2.0 PROBLEM IDENTIFICATION AND FORMULATED RESEARCH QUESTIONS

2.1 THE TOPIC

Ideally, the mission of the Tesco Malaysia management to introduce its own brand of chilli sauce to the Malaysian consumers is a constructive growth strategy. This strategy is able to drive Tesco profits because selling own brands product has the advantage of offering high gross margin in the range of 25%-50%, higher compared to the national brands. Moreover, as a well established shopping centre with 40 branches in Malaysia, chilli sauce of Tesco brand could penetrate the consumers market easily. Besides, today, as Malaysia economy outlook is in downturn, with the rise of inflation and not much changes in income level, give chances to the Malaysian consumers seeking a good value of products at a lower price.

2.2 THE RESEARCH PROBLEM

Own brand products are created by the retailers that put their own name on the products and sold at their retail stores. It is also known as store brands, private-label brands, wholesale brands, retailers brand and distributor’s brands (Calvo-Porral, C., Martínez-Fernández, V., Juanatey-Boga, O., & Lévy-Mangín, J. (2015). Regardless of its name, the own brand products always professed as

Chaniotakis, Constantine Lymperopoulos & Magdalini Soureli (2010) claims that the consumer attitudes, perceives benefits, brand loyalty, trust in own label products, real economic situation and income are the aspects influencing consumers’ intentions of buying own brands food products. Jian Ai Yeow, Mei Min Chow & Audrey Poh Choo Cheak & Yu Han Soon (2015) added price and social are significant factors in influencing consumers of purchasing own brand products. Besides, a study by IPSOS and SSI in 2014 showed that Malaysian consumers are willing to pay more for quality, freshness, and convenience (Farah Siru, 2015). This factors influencing consumers buying behaviour will determine the feasibility to introduce own brand of chilli sauce to the Malaysian