A discount store, Tesco Extra is a newest business format in Malaysia. The first Tesco Extra store opened in Seremban on 30th April. Tesco Extra is a Macro Malaysia Business that serves both small business customers as well as the normal customer. Nowadays, there are eight Macro stores in Shah Alam, Selayang, Johor Baru, Ipoh, Seberang Prai, Seremban, Cheras and Penang as well as all its’ staff including those at Head office.
By the way, we found that there still have some fields that Tesco Extra can improve so that it can compete with its competitor and keep survive in the market. For our assignment, we choose Tesco Extra Cheras as our topic. We had provided some recommendation to help Tesco Extra Cheras improve the sales and customer satisfaction.
Customer satisfaction is very important for all type of business, so the services that provided by all the staff and promoter must be take concerned. Based on our experience, the staffs are not doing their job well. For an example, during the time we visited Tesco Extra at Cheras, we found that most of the time the staff are not available at the counter during the peak time, and some of the customer are not friendly to customer. So we recommend that Tesco should provide training for the staff, so that the staffs are concerning and have discipline in doing their job. Besides that, the outlet manager should always walk around the outlet to make sure all the staffs are performing their job well. The rules and regulations also is an effective way to improve the staff performance. The staffs are requiring to follow some perspective rules in order to prevent some punishment, in this way, the staffs can be more professional and able to manage their work properly.
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Product Delivery Services
Product delivery services are very important for those customers who purchase a big size applicant product, such as fridge, washing machine, and other electric product. For Tesco Extra, it need to take 2 day to deliver the product to customer, and it provide free of charge services for the customer who want to deliver the product within 30km. if the delivery distance more than 30km, Tesco Extra will charge rm40 and every rm1 for any additional of 1km. But, if we compare with Carrefour discount store, we can found that Carrefour provide a better delivery service if compare with Tesco Extra. Carrefour just needs to use 1 day to deliver the product for customer. Same as Tesco, the delivery distance less than 30km, free of charge, if the distance more than 30km, the price charges will depend on the driver. Based on the information get from my colleague, the distance within 31-35km, the driver will not charge the price. It means that the price is adjustable. By these comparisons, we can recommend that Tesco Extra should deliver the product latest by the next day after the customer bought. And the delivery charge should be reducing since the fee is a major concern for customer.
Fully Utilized the Space
A space is very important for a company in order to allocate their product well, so the company should fully utilize the extra space. Based on our experiences, the 2nd floors of Tesco Extra’ racks have a lot of empty space, especially in the row of 26, 27, 28 and 31. The staffs just purposely put some product over there, so overall the arrangements are quite messy. So for our recommendation, we recommend that the staff should rearrange and put some product like drink or food product inside the rack in row 26, 27, 28 and 31. This is because the rack is allocated near the entrance where the people come in, it will let the customer had a bad impression if there have a lot of empty space left in the rack. The customer will think that, “A big store but there is just a few products which are available in the rack to be chose.”
Tesco Extra Cheras provide indoor and outdoor parking lot. Although during the day time, the environment of the parking lot is quite dark. And during the night time, the east sides of the parking lot do not switch on any light. We are strongly recommended that Tesco should switch on the night and during the day time. It can reduce the customer frighten and on the same time reduce the accident case happened. It is very dangerous for the customer if driving and walking around in the dark environment.
Weekend is the peak day for operate the business. Most of the customer will come and visit and purchase or refill their daily food and thing on these day. So in these 2 days, we recommend that Tesco Extra Cheras should request to get some promoter from the agent for specific famous brand. The promoter can handle or manage the customer when the staffs are busying serve other customer. It can able to prevent the customer complaint and dissatisfaction when the customers are not being served by the staffs properly. And the promoter will get the better and latest knowledge than Tesco staffs since the promoter just focus on specific product brand.
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Customer would happy if they can get some free gift after the purchase. So, we suggest that Tesco Extra Cheras should provide some free gift for customer as an appreciation for customer who spent their time and money in Tesco. For an example, Tesco Extra Cheras may provide some special gift like special edition Tesco key chain, recycle bag and so on during different period of time for customer who spent certain money in purchasing the product in Tesco. Customer would like to purchase more if they willing to collect the free gift.
Understand customer is also one of the main factors that a business must know so that can survive in this competitive market. In order to more understand customer, we recommend that Tesco Extra Cheras can provide some simple survey form. Through the survey form, Tesco can know how what the customer want and how the customer evaluate the service provided by them, then Tesco can make any improvement based on the information get from the customer.
A company that developed a strong vendor relationship with its supplier will definitely gain competitive advantages against other competitor. We recommend that Tesco should build a strong vendor relationship with its supplier so that Tesco can obtain some special terms of purchase that given by the competitors and that are not available to competitors that lack of such relationships. In this situation, Tesco can obtain the popular or best sale merchandise like fresh fish, meat and etc from the supplier in an according time.
Tesco had done a lot of advertising in television program, newspaper, radio, internet etc. But sometime most of the potential customer does not get the Tesco further information due to some reason. In here, we recommend that Tesco should add pamphlet as one of their advertising tool. Tesco can deliver the pamphlet to the loyalty customer through postman, the pamphlet will showing that which product is having the great promotion in a certain period of time, and bottom of the pamphlet we can include some voucher for the customer as an appreciation for being a loyal customer of Tesco. In this way, customer will feel happy because they feel that they have been respected by Tesco, and it indirectly improve the relationship between Tesco and customer.
Every time customer shop inside the Tesco, with the Tesco Clubcard, every spent of rm2 the customer will get 1 point. Then every time u get 150 point and above, you can gain minimum rm1.50 as Tesco cash voucher. But, if compared with Jusco, Jusco provide more and more benefit for customer. For example, the J card day, the customer can enjoy more than 70% discount and can redeemed some Jusco gift voucher when the customer buy over certain payment of the product. So, we recommend that Tesco should change its membership program in order to give more benefit to the customer and get to increase the market share in the competitive market.
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