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RESEARCH METHODOLOGY

TABLE OF CONTENTS
1.0

INTRODUCTION

2.0 RESEARCH PROCESS

2.1 The steps in research

2.2 Statement of Problems on Tescos own branded chili sauce

2.3 Literature Review

2.4 Collection of Pertinent Data

2.5 Population and Market Advantages over the competition

2.6 Analysis and Conclusion of the Study

3.0 PROBLEM IDENTIFICATION AND FORMULATED RESEARCH QUESTIONS

4.0 TESCO PROJECT
4.1 Turning the idea into a finished product

4.2 Testing the feasibility of the product

4.3 Tesco Chilli sauce prototype

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4.4 Test Marketing the Tesco chilli sauce

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4.5 Results of testing

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4.6 Launching the Tesco chilli sauce

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5.0 LITERATURE REVIEW

6.0 CONCLUSION

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5.0 REFERENCE

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1.0 Introduction
Tesco was founded in 1919 by Jack Cohen from a market stall in Londons 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 its feasible for Tesco Stores Malaysia to
introduce its own branded chili sauce to the Malaysian Consumer.
The advantage of having own brand is its 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.

2.0 Research process

Research process involved in Tescos effort of having own branded chili sauce.
2.1 The steps in research process are:
Problem
identification
Formulate research
questions
Literature review
Research philosophy and
approach
Research design
Data processing and

Conclusion and reports

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.
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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 Tescos own branded chili sauce

Tesco Malaysia offers various brands of chili sauce which is a very popular in Malaysia. Since
theres continues demand for this product the Management of Tesco in Malaysia decided to
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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 wellknown 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 stores 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,Tescos idea on having own brand chili sauce is feasible.

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:

Intuition

Social Issues
Critical Appraisal
of literature

Brainstorming

Exposure to field
situations

Sources of
Research
Problem

Previous Research

Existing Theories

Folklores

Personal
Experience

Consultation with
experts
Practical
Experience
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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.
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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.

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. Tescos
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

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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.

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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
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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 consumers 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.

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

category fits into the consumers 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 authors 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

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skills make a considerable contribution to increasing retailer brand share in markets with a lower
share or no presence of retailer brands.

3) Article: McDonalds has a new tactic... be less like McDonalds

Author: Lauren Davidson
The author says McDonalds has a new strategy that is being less like McDonalds. McCafe in
Camperdown, Sydney has changed its from Mc Caf 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 McDonalds can experiment with new dishes.
Its not only selling Mc Donalds 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. Thats 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 their

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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.

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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/McDonal
ds-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-getchina-right/ [retrieve: July 24 2015]

Total words: 2920

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