h

RESEARCH METHODOLOGY

1

TABLE OF CONTENTS

1.0 INTRODUCTION 2

2.0 RESEARCH PROCESS 3

2.1 The steps in research 3

2.2 Statement of Problems on Tesco’s own branded chili sauce 5

2.3 Literature Review 5

2.4 Collection of Pertinent Data 6

2.5 Population and Market Advantages over the competition 6

2.6 Analysis and Conclusion of the Study 6

3.0 PROBLEM IDENTIFICATION AND FORMULATED RESEARCH QUESTIONS 7

4.0 TESCO PROJECT 9

4.1 Turning the idea into a finished product 9

4.2 Testing the feasibility of the product 9

4.3 Tesco Chilli sauce prototype 10

4.4 Test Marketing the Tesco chilli sauce 10

4.5 Results of testing 11

4.6 Launching the Tesco chilli sauce 11

5.0 LITERATURE REVIEW 11

6.0 CONCLUSION 15

5.0 REFERENCE 15

2

1.0 Introduction

Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Over the

years the business has grown and now it operates in 12 countries around the world, employ over

530,000 people and serve tens of millions of customers every week. Tesco have always been

committed to providing the best shopping experience. Today Tesco continue to focus on doing

the right thing for its customers, colleagues and the communities.

In Malaysia, Tesco has opened many stores across Peninsular Malaysia since the launch in 2002.

Following the launch of grocery home shopping in 2013, Tesco grew its grocery home shopping

business in its first year of operation in the country.

The company offer a wide range of 4,000 own brand products – 90% of which are sourced in

Malaysia.

The purpose of this assignment is to know whether it’s feasible for Tesco Stores Malaysia to

introduce its own branded chili sauce to the Malaysian Consumer.

The advantage of having own brand is it’s inspires customer loyalty leading to repeat sales. For

the objective of a research process study, perception of an own brand such as producer, price,

shape or effects takes into account. Own brands have experienced significant image revolution

and are no longer a synonym for cheap and poor quality imitation. Let us see if Tesco will be

successful in introducing its own branded chili to the Malaysian Consumer.

3

2.0 Research process

Research process involved in Tesco’s effort of having own branded chili sauce.

2.1 The steps in research process are:

Step 1: Identify the Problem

The first step is to identify a problem and develop a research question.

Step 2: Review the Literature

Once a problem identified, the researcher must learn more about the topic under investigation.

4

Problem identification

Formulate research questions

Literature review

Research philosophy and approach

Research design

Data processing and analysis

Conclusion and reports

The researcher must review the literature related to the research problem. This provides

foundational knowledge about the problem area.

Step 3: Clarify the Problem

Here the researcher clarifies the problem and narrows the scope of the study. This can only be

done after the literature has been reviewed.

Step 4: Clearly Define Terms and Concepts

The term and concepts need to be specifically defined as they apply to the study.

Step 5: Define the Population

Research projects can focus on a specific group of people, facilities, park development,

employee evaluations, programs, financial status, marketing efforts, or the integration of

technology into the operations.

Step 6: Develop the Instrumentation Plan

The instrumentation plan serves as the road map for the entire study, specifying who will

participate in the study; how, when, and where data will be collected; and the content of the

program.

Step 7: Collect Data

The collection of data is a critical step in providing the information needed to answer the

research question.

Step 8: Analyze the Data

All Steps 1 through 7 of the research process culminate in this final step. The researcher finally

has data to analyze so that the research question can be answered.

Step 9: Conclusion

Final step is to conclude and make a report on the research.

2.2 Statement of Problems on Tesco’s own branded chili sauce

Tesco Malaysia offers various brands of chili sauce which is a very popular in Malaysia. Since

there’s continues demand for this product the Management of Tesco in Malaysia decided to

5

introduce their own Tesco brand chili sauce for Malaysia consumer. Nevertheless the

management wanted to know if it will be feasible to introduce its own branded chili sauce. They

having doubt if their own branded chili sauce would be able to compete with the other well-

known branded, that are already in the market for very long.

The question arise is what would be the demand for the Tesco own branded chili sauce and how

will it be accepted by the local customers. Will the Tesco group allow their local branding

process?

2.3 Literature Review

Tesco allows local branding to gain local consumer. This improves the store’s local country

approach even though most of their products are imported from foreign countries. Tesco

appreciate the initiatives of the staffs to think globally by selling their products locally.

Localization of international brands is very effective.

The Tesco team has to study in order to project sustainability and return of investment about the

research process.

The production plant, manpower and promotional budget are needed for positioning the new

entry of this product. This means it would take an initial cost and investment in their production.

The management needs to immediately work in order to test their product in the market.

Locally made products engage in an international organization would be their

advantage as consumer has more option to buy over their preferred brand

2.4 Collection of Pertinent Data

Malaysia is relatively a small country but has land consisting of about 3930 hectares reserved

only for chili production and cultivation according to the Federal Agriculture Marketing

Authority (FAMA 1995). Chili is one of the key ingredients for Malaysian cuisine. 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. Knowing that demand is good, the sources and materials are available in

Malaysia,Tesco’s idea on having own brand chili sauce is feasible.

6

2.5 Population and Market Advantages over the competition

Other competitors advertise their products, provide trials, free taste and other marketing strategy

to promote their products. Tesco should also apply the same strategy to enter the new market by

promoting their product, price, promotion at various places and also can expanding their market

out of Malaysia if wanted.

2.6 Analysis and Conclusion of the Study

Problems and solution has been identified and discussed. Thus, we can conclude that Tesco

Management in Malaysia should go ahead to produce their own chili sauce. It is very feasible to

have Tesco own brand chilli sauce in Malaysia.

3.0 Problem identification and formulated research questions

Identification and formulation of a research problem is the first step of the research process.

Research questions are important to ensure the research is moving in the right direction. The

questions serve as guideline for literature search, data collection, analysis and conclusion.

A research problem may come from several sources:

7

Sources of Research Problem

Exposure to field situations

Folklores

Intuition

Brainstorming

Social Issues

Critical Appraisal of

literature

Previous Research

Existing Theories

3.1 The development of a research question

A research question is a brief question that helps direct our efforts to collect, critically read, and

evaluate the sources. Research question involves five steps:

1. considering the needs and interests,

2. reflecting on our role as a writer,

3. generating potential research questions,

4. selecting a preliminary research question, and

5. refining that question.

Choose a Question that is Neither Too Broad or Too Narrow

3.2 Articulating a research question

Articulating a clear and concise research question is fundamental to conducting a robust and

useful research study. Research question is useful when deciding what research methods to use.

3.3 Using market research to launch a new brand

A brand is a name which differentiate one product from another. A good brand has a good

quality of products that could be delivered to customers.

Tesco carries out a systematic market research process to identify new product ideas, to be

brought to the market.

8

Personal Experience

Practical Experience

Consultation with experts

3.4 The purpose of market research

Market research is the collection and analysis of data in order to identify and satisfy

consumer needs and to reduce risk and to help in decision making.

3.5 Methods and types of market research

Surveys, focus groups, personal interviews, observation, and field trials are few methods of

market research. The type of data we need and how much money we are willing to spend will

determine which techniques to choose for the business.

4.0 TESCO Project

The development of a new product is a process that starts with an initial idea and finishing

with its launch on the market.

It involves a number of stages:

Product Development process

Product Development is one of the key ingredients for successful product development.

Below are the steps will ensure the overall marketability will happen quick, and accurately

Step 1: Generating

Tesco Research and Development team are continually to look for innovation which can be

developed into a profitable product. Brainstorming sessions are used to generate ideas.

Step 2: Screening Idea

Many various product proposals were evaluated and own branded Tesco chilli sauce is the most

favorable idea. After examining existing brands, management identified a possible gap in the

market and trying to find solutions to fix the gap.

9

4.1 Turning the idea into a finished product

Now the product had to be a finished product and ready to be a marketable product. Tesco’s

researcher team would identify product that similar to existing and have innovative features to

attract new customers.

4.2 Testing the feasibility of the product

The objective is to find out if the new idea is feasible. A detailed cost analysis indicate that the

cost of production would be similar to the existing other chilli sauce. Various price assumptions

were assessed until the optimum price was decided upon and the potential profits were

calculated.

4.3 Tesco Chilli sauce prototype

A prototype is the first sample of the product. Various recipes were tried by using different sauce

effects, types of chilli, and various ingredients. Four recipes of chilli sauce were developed. A

standard chilli sauce, Thai chilli sauce, less hot chili sauce specially for children and super-hot

chili sauce for chili lovers.

A few packaging were suggested. Research was carried out among consumers to identify the

most favorite.

The results were as follows:

Packaging Percentage choosing

Glass Bottle 55

Plastic packing 10

Plastic bottle 12

Refill packing 23

This result shows glass bottle was preferred, thus glass bottle was designed and it carries Tesco

logo. It also includes information on ingredients and weights as required by Malaysian law.

10

4.4 Test Marketing the Tesco chilli sauce

Test marketing is the process of finding out consumer reaction to a product before full

production commences. It reduces the risk of making a costly mistake.

A sample survey using interviews was carried out. A total of 520 people were asked to

sample four products in different locations

Four products were included in the test:

a standard chilli sauce.

A Thai chilli sauce.

a super hot chilli sauce.

A less hot chili sauce

The products were tested against a background of other similar products. Testing was

conducted in Jan 15th until March 15 2015.

4.5 Results of testing

Tesco chilli sauce rated well on the taste, flavors and quality. The Thai chilli sauce was favourite

among all the chili sauces, the second option was standard chilli sauce. As for the less hot one is

the most preferred by the kids.

4.6 Launching the Tesco chilli sauce

Tesco own branded sauce is now ready for the launching. Marketing mix elements have been

taken into account for the launch.

Product

The product must be one that can satisfy consumer need, is top quality. Test marketing

indicated that Tesco chilli sauce met these criteria.

Price

Price must be competitive, cover costs and offer consumers value for the money.

Research indicated that the product should be priced at RM 25 per bottle.

Promotion

11

Tesco chilli sauce was advertised in all kind of medias like radio, papers,magazine and

also in television.

Place

This is the distribution channel where consumer can get products. The chili sauce will be

sent to these places before it is launched. This is to ensure it reached consumers

immediately.

With all elements in place Tesco chilli sauce is launched in July 2015. Tesco chilli sauce has

made a successful launch in the marketplace and certainly will be profitable.

5.0 LITERATURE REVIEW

A literature review reviews the scholarly literature on a specific topic by summarizing and

analyzing published work on that topic.

A literature review provides the reader with a comprehensive overview and helps place that

information into perspective.

1)Article: Blueprints to successful concept development.

Authors: Camille Nicita and Christi Walters

The article introduces four basis for a successful concept development. They are consumer

wants and needs, emotional connections, brand equity, and competitive landscape.

The author said in-depth understanding of product through consumer’s eyes is required to

understand consumers’ wants and needs.

Whereas, emotional connections is often what makes the difference between a product that looks

good but fail in positioning in market to a product that wins the heart and mind of a consumer.

12

Emotionally connection can be achieved by studying specifically how a product, brand or

category fits into the consumer’s life.

Collecting brand equity information means exploring consumers’ on its current image, strengths

and weaknesses. Successful positioning will help maintain and strengthen a brand.

Finally the author emphasized on successful positioning and product strategy. Companies should

know their competitors very well. This enables development of concepts that take advantage of

competitive vulnerabilities and capitalize on market opportunities.

2) Article: Retailer Brand Development and Handling process

Author: Young-Sang ChoOUNG-SANG CHO

This research is on why is the retailer brand market share of Tesco Korea higher than that of

local Korean retailers. Of the foreign grocery retailers who have expanded

into Korea, Tesco has achieved the most outstanding performance, with the highest retailer

brand share in the market. After the withdrawal of Wal-Mart and Carrefour from Korea in

2006, Tesco Korea has been positioned as the successful foreign retailer.

Based on in-depth interviews with retailers and suppliers, store observations, the author’s own

experience in retailer brand development, and company documentation, this research explored

the differences between Tesco Korea and domestic Korean retailers in how they develop and

handle their own brands. Tesco Korea has taken advantage of retailing know-how, that is,

retailer brand development skills created by Tesco UK. With the help of Tesco UK, the

retailer brand development process of Tesco Korea is differentiated in a number of areas from

that of the local Korean retailers.

The entry of retailers with advanced retailer brand development knowledge into markets

where retailer brands are less well developed is a catalyst in promoting retailer brand

markets, and in intensifying retail competition. This research suggests that retailer brand share is

related to the degree to which retailers are proactively involved in the development and handling

processes for retailer brand product ranges, as well as to how sophisticated or advanced their

knowledge of the retailer brand development process is. Advanced development and handling

13

skills make a considerable contribution to increasing retailer brand share in markets with a lower

share or no presence of retailer brands.

3) Article: McDonald’s has a new tactic... be less like McDonald’s

Author: Lauren Davidson

The author says McDonald’s has a new strategy that is being less like McDonald’s. McCafe in

Camperdown, Sydney has changed its from Mc Café to The Corner. The Corner is the first of

four “Customer Learning Labs” that will open this year, with another 10 planned for early 2015,

where McDonald’s can experiment with new dishes.

Its not only selling Mc Donald’s original fast food item but also other invention like gingerbread

men and muesli pots, or create their own meal at the soup or salad station from a variety of

options. That’s including salads featuring Moroccan roast chicken breast, chipotle pulled pork,

brown rice, pumpkin, lentil and eggplant salads, sandwiches and barista-made quality coffee.

Besides this customers can also build their own burger from a self-service digital device,

choosing from a range of breads, cheeses and sauces, which is delivered to the table on a wooden

board, with chips in a basket.

This is a truely new innovation of Mc Donald.

4) Article: Five Things Starbucks Did to Get China Right

Author: Helen H. Wang

The author said Starbucks has successfully expanded its business to China despite knowing the

country is fan of tea. By year 2012 Starbucks Starbucks opened more than 570 stores in 48 cities

since it first entered China in year 2000. This shows Startbuck has think differently to invest

14

their coffee in the country of majority of tea lover. Starbucks has revolutionized how Chinese

view and drink coffee.

Startbuck implemented a smart market entry strategy by not using any advertising and

promotions that could be perceived by the Chinese as a threat to their tea-drinking culture.

Instead Starbuck focused on selecting high-visibility and high-traffic locations to project its

brand image.

Starbucks capitalized on the tea-drinking culture of Chinese consumers by introducing beverages

using popular local ingredients such as green tea. This strategy has effectively turned potential

obstacles into Starbucks’ favor.

Starbucks understands the value of its global brand and has taken steps to maintain brand

integrity by training new employees through best baristas who act as brand ambassadors.

It is critical for global brands to adapt their businesses to local markets in order to succeed in

China, and Starbucks has done just that.

With various cultures, Starbucks has partnered with three regional partners as part of its

expansion plans to address the complexity of chinese market.

6.0 Conclusion

Every research methodology process have been discussed in detail. Problem and solution been

identified thus we can conclude the proposal of the Tesco Management in Malaysia in branding

and production of local chili sauce is very feasible in Malaysia. It is very affirmative that this can

bring a good response during their introduction.

15

5.0 Reference

1) Alison Wicks (2006) Conceptual and practical issues in qualitative research: Reflections on a life history study

Tom Lemanski and Tina Overton (June 2011) An Introduction to Qualitative Research

2) http://www.quirks.com/articles/a2003/20030208.aspx? searchID=622320897&sort=5&pg=1 [retrieve: July 24 2015]

3) http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11317485/McDonalds-has-a-new-tactic...-be-less-like-McDonalds.html [retrieve: July 24 2015]

4) http://www.forbes.com/sites/helenwang/2012/08/10/five-things-starbucks-did-to-get- china-right/ [retrieve: July 24 2015]

Total words: 2920

16