Tesco Malaysia Marketing Strategy

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A strategy is a plan by which a business intends to achieve its objectives. There are many strategies that businesses can pursue. Tesco was opened its first hypermarket in Puchong, Selangor. Tesco Malaysia currently operates 33 Tesco and Tesco Extra stores. Tesco Malaysia launched its own house brand as Tesco Choice in 2004. Tesco also acquired Makro Cash & Carry in Malaysia, as a local wholesaler which was rebranded to Tesco Extra and provides products for small local retailers. We are focusing on Tesco Peringgit which is situated at Melaka. Pricing is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization it costs to produce and design a product, the costs to distribute…show more content…
Tesco has boarded as the number 1 Hypermarket in Malaysia. The targeted price cuts enabled Tesco to attract more shoppers from competitors and capture the volume that supported the lower prices. Tesco has extended its low price positioning in core groceries across non-foods lines to undercut competition which actually Tesco selling with low price but provide high volume. Tesco Malaysia is the first supermarket to launch a long-term EDLP campaign in a bargain to address the rising cost of living. According to an article they have invested about RM40Mil for the campaign to be able to reduce prices up to 30%. Low prices were implemented to maximize sales. Tesco 's value-added products at low prices attracted many customers. The company adopted the strategy of 'Everyday Low Pricing ' (EDLP), while continuing its other promotional activities. EDLP included daily groceries such as fish, chicken, vegetable, bread and other cooking stuff for a very low price compare to market price. The EDLP program aimed to regularize low prices for Tesco customers and targeted low and middle class income families. Low prices were not merely a strategy used for the occasional sale, but on a regular and daily basis. Implementing the EDLP strategy proven Tesco 's commitment to its customers, putting customer needs and wants as their priority. This also a competition between companies. Pricing was a key strategy and selling point for Tesco. As a conclusion Tesco has successfully implemented their differentiation strategy with their own manufacturing products which is also as a substitute products for consumers and keep on competing with their

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