BBMR 4103

BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS

SEPTEMBER 2021

BBMR 4103

RELATIONSHIP MARKETING

MATRICULATION NO : 800727105539001
IDENTITY CARD NO. : 800727105539
TELEPHONE NO. : 0183861597
E-MEL : albrahim30@oum.edu.my

LEARNING CENTRE : SHAH ALAM

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1. Introduction

Retail is the process of selling consumer goods or services to customers

through various distribution channels to make a profit. Retailers meet demand identified
through the supply chain. The term "retailer" is commonly used where a service provider
fulfills small orders from many individuals, who are end users, rather than large orders
from a small number of wholesales, corporate or government customers. Shopping
generally refers to the act of buying a product. Sometimes this is done to get the final
items, including essentials such as food and clothing; sometimes it happens as a
recreational activity. Recreational shopping often involves purchases, more popular and
known as "window shopping" does not always result in purchases.
Grocery markets and stores have a very ancient history since time
immemorial. Some of the earliest retailers were sellers of goods. For centuries, grocery
stores transformed from "rough stalls" to state-of-the-art shopping malls of the modern
era. Most modern retailers usually make various strategic level decisions including store
type, to-serve market, optimal range of products, customer service, support services and
overall store market positioning. Once the strategic retail plan is structured, the retailer
designs a retail mix that includes products, prices, venues, promotions, personnel, and
presentations. In the digital age, more and more retailers are striving to reach the wider
marketplace by selling through multiple channels and online retailing. Digital technology
is also changing the way consumers pay for goods and services. Retail support services
also include credit provision, delivery services, advisory services, styling services and a
range of other support services.
Grocery stores come in a wide variety and in a variety of contexts – from
shopping malls on residential streets to large indoor malls. Shopping streets can limit
traffic only to pedestrians. Sometimes shopping streets have a partial or full roof to create
a more comfortable shopping environment – protecting customers from all sorts of
weather conditions such as temperature, wind, or extreme rain. Non-store forms of
retailing include online retailing (a type of electronic commerce used for business-to-
consumer (B2C-business to customer) transactions) and mail orders.

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Retail refers to the activity of selling goods or services directly to a

consumer or end-user. Some retailers may sell to business customers, and those sales are
referred to as non-retail activities. In some regions, the definition of retail legislation
stipulates that at least eighty percent (80%) of sales activity must be end users.
Retailing often occurs in grocery stores or service places, but it may
also occur through direct selling such as through vending machines, door-to-door sales or
electronic channels. While the idea of retailing is often associated with purchasing goods,
the term can apply to service providers selling to consumers. Retail service providers
include retail banking, tourism, insurance, private healthcare, private education, private
security firms, law firms, issuers, public transport etc. For example, a travel provider may
have a retail section that books trips and accommodations for consumers plus a wholesale
share that buys blocks of accommodation, hospitality, transportation and sightseeing that
are then packaged into holiday trips for sale to retail travel agents.
Some retailers call their stores "wholesale stores" that offer
"wholesale prices." While this practice can encourage consumers to imagine that they
have access to lower prices, while preparing to swap reduced prices for a narrow inside-
store environment, in other words, a store that sells most of its merchandise directly to
consumers, is defined as a retailer rather than a wholesaler. Different jurisdictions set
parameters for the ratio of consumer and business sales that define retail businesses. The
Malaysian retail industry reported a 4.5% year-on-year growth rate (y-o-y) in retail sales
in the second quarter of 2019 (2Q2019), according to Retail Group Malaysia (RGM). In
its September 2019 Retail Industry report, RGM said this latest quarterly result did not
meet market expectations.
In this assignment, I chose Mydin supermarket. "Why Pay More? Buy at
Wholesale Prices!". The history of Mydin Supermarket has started since before
independence. The first Mydin store was opened in Penang by Tuan Ghulam Hussein
Jamal. After their family-owned shop in Penang caught fire during the Second World
War, Tuan Mydin Mohamed who was his son; has opened a small shop in Kota Bharu
town known as Mydin Mohamed Company. At that time, the shop sold toys and general
merchandise. Tuan Mydin Mohamed started his business without the help of anyone,
including from government agencies. It all starts with the results of its own sweat points.

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Later, with the help of the children, Tuan Mydin began to expand his business to Kuala
Terengganu around 1979. Then to Jalan Masjid India in 1989. That's where Mydin
Company became public, thus successfully opening hundreds of stores, supermarkets,
and franchises nationwide.
From a small shop, Now Mydin Company has become the largest wholesaler
and retailer in the country. In addition to the availability of over 95 branches nationwide.
In addition, Mydin's business network has also expanded into different types of
businesses with hypermarkets, emporiums, convenience stores, bazaar fiber mini
supermarkets. This diversification, based on the needs of the locals, has generated a profit
of over 1.6 billion a year. Mydin is the place every Malaysian is going to look forward to
meeting their daily needs. Mydin Mohamed Holdings Berhad is the largest halal
supermarket and retail chain in Malaysia.
Mydin Hypermarket is in Kajang district in Taman Anggerik Perdana
neighborhood, 43500 Semenyih, Selangor. It is also the largest halal grocery supermarket
in Malaysia.
"Customer is the KING". Customers also bring money into the business. When the
hypermarket was introduced in Malaysia, the owners of these retail stores raced to
introduce their membership cards to their customers as a way of thanking you. There are
various methods for each type of appealing to attract consumers to become regular
customers. Among them is distributing leaflets and brochures to the public in front of the
entrance of business premises. Distribute leaflets to residential homes around the
neighborhood near the supermarket. Tracts may be distributed weekly or monthly.
Customers will return to shop back to the supermarket. These hypermarket owners also
use another method of introducing the membership card method.
This membership card has special features. Customers need to apply to
have this membership card. From this method, data will be obtained on customer
background such as customer's age, gender, average household income, occupation, and
many others. It's one way to "bind" regular customers to have them go back to spending
their income for household use, every month. Relationship marketing drivers play a very
important role in successful business strategies. It covers customer satisfaction, loyalty,
trust, and commitment to ensure the success of one's business.

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In other words (according to De Wulf, Odekerken -Schröder and Iacobucci,

2001), Satisfaction, trust and commitment are three important aspects of relationships.
(According to Egan, 2000) Sometimes disgruntled customers can switch to another
business company if they believe they can get better value, convenience, or quality
elsewhere. According to (Bennet and Rundle-Thiele, 2004) Satisfaction is just a proxy for
loyalty, but it's still an important factor. By opinion (Grönroos, 2000). Satisfaction is also
needed to generate customer loyalty, trust, and commitment.

1.1 USING THE BASIS OF GEOGRAPHY

The opening of large-scale retailing is a method in which it promises
potential buyers a sense of belonging. Geographical groups that differ based on
population density in mukims, towns, districts, or housing estates. Operates in only a few
areas. It will certainly pay more attention to the difference if it is a premise found in a
small residential area.

For example, Mydin Hypermarket in Taman Anggerik Perdana, Semenyih,

Selangor. With its strategic location, its large structure and amp; amp; convenience
provided gives the hypermarket an edge. To attract more visitors, various facilities such
as consumer goods kiosks, playgrounds, ATM facilities, restaurants and many more are
provided which should provide convenience to the consumers especially during
weekends and school holidays. The trend of shopping in hypermarkets is increasingly
becoming the lifestyle of urban and rural communities as this medium is seen as more
prestigious, contemporary, and modern.
High population density, many companies operate in such neighborhoods.
With significant funds and capital, the institution can conduct large-scale promotions in
print and electronic media to reach offices and homes through weekly and monthly
newsletter distributions to promote their sales. These tactics and techniques can attract
the attention and interest of consumers to visit their cheap sales locations. Prices for
different types of goods are also sometimes below the price of the coin. Advertising,
promotion, and sales efforts to meet consumer demand in each residential area. It is

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intended to adapt to environmental conditions. Value of life, lifestyle, and the way
society shop. Our Malaysia has the value of intimacy. In addition to religious demands so
that consumers do not waste. Mydin Holdings Berhad also manufactures products under
its own brand. It's named Myrasa.
Among the products are: -

Evaporated milk

Kuih loyng

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Kuih Kapit

1.2 Competitors
Competitors in the market will respond to their closest competitors. I chose
Tesco as a competitor to the first supermarket. Tesco supermarkets are franchised from
the United Kingdom, Britain. Tesco supermarket is located close to my residence in
Semenyih, Selangor. The Semenyih area is booming with the opening of new housing
estates.
The Tesco brand first appeared in 1924. The name came after Jack Cohen
bought a tea delivery from Thomas Edward Stockwell. He created a new label using the
initials of the supplier's name (TES), and the first two letters from the surname (CO), says
TESCO. Jack Cohen, the son of Jewish immigrants from Poland, founded Tesco in 1919
when he began selling war groceries from a stall in Well Street Market, Hackney, in
London's East End. The Tesco brand first appeared in 1924. The name came after Jack
Cohen bought a tea delivery from Thomas Edward Stockwell. He created a new label
using the initials of the supplier's name (TES), and the first two letters from the surname
(CO), says TESCO. After experimenting with the first fixed indoor market stall in
Tooting in November 1930, Jack Cohen opened his first Tesco store in September 1931
at 54 Watling Street, Burnt Oak, Edgware, Middlesex.Tesco floated on the London Stock
Exchange in 1947 as Tesco Stores (Holdings) Limited. The first self-service store opened

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in St Albans in 1956 (which remained in operation until 2010 before moving to larger
premises on the same street, with a period as Tesco Metro), and the first supermarket in
Maldon in 1956. In 1961 Tesco Leicester appeared in the Guinness Book of Records as
the largest store in Europe.
Tesco Malaysia or its trade name TESCO STORES SDN BHD (MALAYSIA).
Tesco opened its first store in Malaysia in May 2002 with the opening of its first
hypermarket in Puchong, Selangor. In 2007, Tesco Malaysia operates several shops
located in Selangor, Perak, Johor, Kuala Lumpur, Penang, Kedah, Melaka, Negeri
Sembilan, and Kelantan. Tesco is partnering with local conglomerate Sime Darby
Berhad. Tesco also acquired its Malaysian operations from wholesaler Macro, which was
rebranded as Tesco Extra and provided products for local retailers. Tesco was established
in 2000 and is based in Kuala Lumpur, Malaysia. It is a franchise business from Tesco
PLC United Kingdom. Tesco's head of operations is located at:
Head Office, Level 3 No. 3, Jalan 7A/62A Bandar Menjalara 52200 Kuala Lumpur
Federal Territory
Tesco also has its own brand products. The products are comparable to
preferred brands such as Wise (potato chips), Kellogs (breakfast cereals), Nescafe (coffee
powder) and Lipton (tea powder). It comes at a cheaper, higher quality price as well as
attractive packaging. To me, the taste of this Tesco product is tastier.
Among the products offered and preferred by consumers are potato chips, mixed coffee
powder, breakfast cereals, mixed tea powder.

Breakfast cereals

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Potato chips

Mixed coffee powder

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Mixed tea powder

I have conducted random interviews to visitors who visit these two supermarkets. It aims
to identify which supermarkets are preferred by visitors who are also customers.

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I, as a consumer, become a regular customer to these two supermarkets at the

end of each month. I prefer to shop at Mydin supermarkets for kitchen items from wet
market such as chicken, fish, vegetables as well as personal care items. Whereas I chose a
Tesco supermarket to buy snacks from Tesco bakery parts such as cakes, breads, and
pastries.
Tesco's supermarket in Semenyih opened in 2007. Located at Number 1, Jalan Tps 1/1,
Taman Pelangi Semenyih, 43500 Semenyih, Selangor. It has targeted customers. With
the existence of premium-level residences around the area namely Setia Ecohill and Eco
Majestic, customers who come to shop are also from the highest income group, as well as
foreign students from the University of Nottingham. They come to Malaysia carrying
foreign currencies such as US Dollar, Pound Sterling to be converted to Ringgit
Malaysia.

2. LOYALTY PROGRAM BENEFITS

Loyalty programs can be defined as incentive systems that encourage

consumers to buy more in the long run beyond the influence of discounted prices or

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major deals (De Wulf, Odekerken-Schroder & Iacobucci 2001). Program loyalty plays an
important role in retaining customers in many industries, including hotel chains, airlines,
store retail, and financial institutions. The perceived value that customers faithfully attach
their experience to the program as provided or done by the member program is referred to
as the beneficiary of the program. Programs categorised benefit economy, psychology,
and sociology.
Therefore, consider that studies assess how beneficial programs affect program
satisfaction, program loyalty, and loyalty storage in the context of hypermarkets and
hypermarkets, the benefits of programs for study and symbolic benefits.
Customer analytics, competitor analysis, and brand analysis are fierce. How the
company or brand is distinguished by customers. Companies with their own brands
appeal to customers when customers choose to buy them over other brands that are
already based in the market.
Types of marketing planning refer to the diagram below: -

The company began developing a range of products it sold in the 1960s to

include household items and clothing under the Delamare brand, and in 1974 opened its
first gas station.

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In July 2001, Tesco became involved in internet retail retailing in the US

when it acquired a 35% stake in GroceryWorks. In 2002, Tesco bought 13 HIT
hypermarkets in Poland. This has also been a major and significant change to the UK's
convenience store market with the purchase of T&S Stores, the owner of 870
convenience stores in the UK's One Stop, Dillons, and Day &Nite chains.
In June 2003, Tesco bought the C Two-Network in Japan. It also acquired a
majority stake in Turkish supermarket chain Kipa. In January 2004, Tesco acquired
Adminstore, the owner of 45 Cullens, Europa, and Harts department stores, in and around
London.

In Thailand, Tesco Lotus is a joint venture of Charoen Pokphand Group

and Tesco but faced criticism over the growth of hypermarket CP Group selling tesco
Lotus shares in 2003. At the end of 2005 Tesco acquired 21 remaining Safeway/BP stores
after Morrisons disbanded its Safeway/BP partnership [In mid-2006 Tesco bought an
80% stake in Leader Price supermarket in Poland, which is then rebranded as a store
Tesco Small. On February 9, 2006, Tesco announced plans to move to the United States
by opening a small format food chain in western states (Arizona, California, and Nevada)
in 2007 called Fresh & Easy.

3. Customer loyalty
Tesco launched its customer loyalty scheme, Tesco Clubcard, in 1995. It was
cited as a significant development in Tesco's progress into the UK's largest supermarket
chain and which fundamentally transformed the country's supermarket business. Tesco
itself was quoted in a Wall Street Journal article as using intelligence from Clubcard to
thwart Wal-Mart's initiative in the UK.
Cardholders can collect one Clubcard point for every £1 (or one point for €1 in
Ireland and Slovakia or 1 point for 1zł in Poland) they spend in a Tesco store, or in
Tesco.com, and 1 point per £2 for fuel (not in Slovakia). Customers can also collect
points by paying with a Tesco Credit Card, or by using Tesco Mobile, Tesco Home
phone, Tesco Broadband, selected Tesco Personal Finance products or through Clubcard,
E. ON and Avis partners. Each eye is equivalent to 1 p in the store when redeemed, or up

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to four times its value when used with Clubcard deals (offers for vacations, day trips,
etc.) Clubcard points (UK &IE) can also be converted into Avios and Virgin Atlantic
with flight distance frequency. The more customers shop, the more points that can be
exchanged for tickets.
The diagram below shows the statement regarding customer loyalty.

4. WAYS TO INCREASE CUSTOMER LOYALTY LEVELS

There are various ways to increase customer loyalty. Among them are: -
i. Encourage new customers to sign up for an account. The client will be issued
a membership card.

ii. Periodically send regular or electronic mail (e-mails) to customers. Weekly

and monthly product promotions.

iii. Offers incentive and loyalty programs. Example: spend RM1 and customers
are entitled to collect 4 points.

iv. Send me a happy birthday card. Customers will feel close, remember, getting
a warm memory with the retailer. The mode of delivery is by regular mail or
electronic mail (e-mail), SMS (short messaging service)

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v. Some retailers present in conclusion, Tesco Malaysia is the choice of the local
people for the ability to provide quality and affordable goods and services.
However, until 15 February 2021, Tesco United Kingdom agreed to
subsequently sell shares of Tesco Malaysia and Tesco Thailand to a Thai
company, Lotus.
vi. The continuation of the relationship between retailers and customers lies
deeply with brand, customer service and pricing. Many people do not mind or
do not care about the price if they can own, use, or enjoy the product happily.
A good product can establish, surviving in the market and giving a good
image to retailers. Sometimes the show has changed ownership, but customers
will still look for it on the basis of loyalty and trust in the brand. The brand
has survived on the market for decades. Most traditionalist-type customers
will remain using the product and introduce it to future generations., buy one
free one to those customers during the month of their birth. This example is
widely done by cinema retail owners in Malaysia such as TGV (Tanjung
Golden Village Cinema) or GSC (Golden Screen Cinemas). There are also
retailers who present their own new launch product.

vii. Ask the customer for feedback. What's liked, what needs to be improved in
terms of products and services.

In recent years, with the existence of smartphones and the creation of social
applications on electronic media, many retailers have used this advantage to promote
their products. This way garners more followers.
Customers or followers who have been accustomed to shopping for the brand will return
to buy it for brand reasons, the quality the brand maintains.
Most large companies will invest more in business premise locations, R&D
(research and development) for brands, quality, packaging, joint ventures with other
companies such as fashion niche, promotions ads etc. Analysis of each customer's data
information is paramount. The result of this investment brings a very lucrative profit.

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More than double the investments made each year. Loyal customers will still come to the
business premises to shop around.

5. Conclusion
In conclusion, Tesco Malaysia is the choice of the local people for the ability to
provide quality and affordable goods and services. However, until 15 February 2021,
Tesco United Kingdom agreed to subsequently sell shares of Tesco Malaysia and Tesco
Thailand to a Thai company, Lotus.
The continuation of the relationship between retailers and customers lies deeply
with brand, customer service and pricing. Many people do not mind or do not care about
the price if they can own, use, or enjoy the product happily. A good product can establish,
surviving in the market and giving a good image to retailers. Sometimes the show has
changed ownership, but customers will still look for it based on loyalty and trust in the
brand. The brand has survived on the market for decades. Most traditionalist-type
customers will remain using the product and introduce it to future generations.

Reference
https://www.majalahlabur.com/inspirasi/kisah-pengasas-pasaraya-mydin-dan-
sejarah-penubuhannya/

www.forbes.com Top Shopping Trend 2018

Logistic and Retail Management (2nd Edition) edited by; John Fernie & Leigh
Sparks

https://ecommercebooth.com

Forbeshttps://www.forbes.com › sites › springwise › 2013/05/09 (RETAIL

INNOVATION)

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https://www.thebalancesmb.com/most-innovative-retailing-companies-2892365
(most innovative retailing)\

https://shoppingcenters.com/article/7-most-innovative-retailers-2018-taking-look-
retail-success-stories/

www.mycustomer.com › selling › sales-performance

https://www.utusan.com.my/ekonomi/2020/09/peruncit-tempatan-beli-rm5-03b-
saham/

Egan, J. (2000). Drivers to relational strategies in retailing. International Journal

of Retailing & Distribution Management.

Gronroos, C. (2000). Creating relationship dialogue: Communication, interaction

and value The Marketing Review

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