CUSTOMER RELATIONSHIP MANAGEMENT

(INDIVIDUAL ASSIGNMENT)

Name : Nur Atikah binti Yaakob

Id Number : 62214217149
Group : M10
Lecturer Name : Sir Ismail

1
 TABLE OF CONTENT

NO CONTENT PAGE

1 Tesco 3

2 Domino’s Pizza 8

3 Pos Malaysia 15

4 References 21

5 Appendices 22

2
TESCO

Tesco is the second largest retailer in the world measured by profits, and the third
largest measured by revenue. Not only does it have stores in 14 countries across Asia,
Europe, and North America, but it's also the grocery market leader in the UK, Malaysia, the
Republic of Ireland, and Thailand.

Although their success can mostly be attributed to their competitive pricing,

comprehensive product and service range, affiliated programs, and global accessibility, their
aggressive marketing and CRM strategies have played a central role in helping them retain
their competitive advantage and large marketshare.

Tesco Stores (Malaysia) Sdn Bhd owns and operates hypermarkets in Malaysia. It
offers fresh produce, groceries, household items, and apparel; and its own food and non-food
products. The company was founded in 2002 and is based in Kuala Lumpur, Malaysia with
stores in Malacca, Klang, Purchong, Mutiara Damansara, Sungai Petani, Penang, Ipoh, Shah
Alam, Kajang, Banting, Ampang, and Seri Alam. Tesco Stores (Malaysia) Sdn Bhd operates
as a subsidiary of Tesco PLC.

3
Experience

Most of Malaysian people will have experience went to Tesco hypemarket and buy
thing from there. Its same goes to me which had been existing customer lo Tesco since seven
years ago. Tesco be one of my favourite place to buy groceries and household. Since the
business launch of Tesco Malaysia in 2002, they had become one of attractive place for
people do their grocery shopping because all had been provide by Tesco in one roof. They
grew their grocery home shopping business in its first year of operation in the country. They
had offer a wide range of 4,000 own brand products which 90% of that are sourced in
Malaysia. They include Tesco Value, Choice and Finest, as well as specialist ranges such as s
Lighther Choices.

Tesco had give their service to people in the country as what they are needed. Tesco's
efforts towards offering better services to its customers and meeting their needs can be traced
back to the days when it positioned itself as a company that offered good quality products at
extremely competitive prices. This can be prove when Tesco always give the best service to
their customer, they also have provide Tesco Delivery which customer can also make
purchase from home and get their shopping in front their door.

I choose to go the nearest to my place at Seberang Jaya, Penang. Beside, shopping for
groceries, there also have a lot of shop with sell variety type of product such as clothes, skins
care, foods and many more. These entire products can be found in one roof. There also have
convenience facilities to their customer such as free parking, parking for disable, customer
service counter, toilet, trolley, ATM machine and many more. My parents also do their
shopping here because of their service and facilities provided. I prefer to shop at traditional

4
markets or grocery stores rather than use the online shop like Tesco Online. I want to touch,
see, smell, and pick groceries by hand.

Tesco Malaysia CEO Paul Ritchie said on Saturday that the online shopping trend is
growing much slower as Malaysians still liked to visit traditional markets or grocery stores
(The Star Online, 2017). This show that Consumers still want the physical aspect of grocery
shopping. Tesco was the first grocery chain to introduce online grocery shopping two years
ago. Since 2014, Tesco Malaysia’s online sales have totalled RM179mil (The Star Online,
2017).

Tesco Malaysia already provide online shopping which people can just buy their
groceries from website and been delivered to your place. It much easier for busy and
convenience to housewives. Although this strategy had been implemented by Tesco but most
of Malaysian people likely to do their shopping manually, which go the store, touch, smell
before they choose to buy. I also prefer to do traditional manually shopping before by doing
this I can wisely choose what I want and at the same time can spend time with my family
while shopping.

As we know that Tesco hypermarket appreciate their customer by giving vouchers and
lowest price compare to their competitors. Before customer can experience all the benefits
given by Tesco, he or she requires registering to sign up the ClubCard. My family and I also
had sign up for the ClubCard and had been rewarded voucher because the pointed collected. I
went to their customer service desk and claim for voucher. I had been redeem three time for
voucher. I will wait for seasonal promotion like Hari Raya or Chineese New Year to redeem
my point and do shopping with promotion price with voucher.

After about 5 years what I can rate about Tesco were merely adequate which the
service is okay but still a lot of improvement can be done in order to attract more Malaysian
people and to compete their competitor like Giant, Mydin and Aeon. These competitors likely
to compete each other but each of them have different specialty to attract different target
people in Malaysia. Like myself also having some problem with Tesco which their cashier
had double scan two of my groceries without I’m realizing when I paid. I directly go to the
customer service. This gives bad reputation to me as their loyal customers who need to go
customer service and need to wait about 45 minute until the procedure done. Although there

5
staff that attain me for solve my problem but the process take time and I need to fill about 2
form of refunding which waste my time as customer.

CLUBCARD Loyalty

Tesco Clubcard loyalthy scheme was first intriduced in 1990s Britian, where there
was growing demand for keeping loyal customers in large markets such as Tesco. Tesco has
managed to advance its Clubcard scheme, with the Clubcard being available for muliple
countries outside the UK, as well as increased the number of service where it can be used.
From customer’s persepctive the Clubard systme is rather simple, the customer only has to
provide the card at the checkout so that it can be swiped across and the points can be
recorded. The point will ve cinverted into a voucher, which then can used for shopping.
Futhermore, there are also extra points available for purchasing recycle bags, part of Tesco’s
initiative to protect the environment.

How the ClubCard Effective

1. Registration

6
Before the customer becomse to experince the benefit of the ClubCard programme, he/she
has to register and enter certain details to sign up for the programme.

2. Swiping the card

Customer swipes his/her card through the scanner. The personal is red from the card and
research in the relational database.

3. Converting points
The money spending in Tesco for buying product is then converted into points, which are
updated on the customer’s account.

4. Applying queries
Once the number of point have been updated, certain queries will be applies in the DMS. If
the customer’s number of points exceeds 150, a voucher would be offered. At the same time,
the system will send a notification in a form of an email or an update on the smartphone
application. Sometime, the cashier will remind us that we can redeem the points as they will
deduct with the total of purchased.

5. Using voucher
Once the voucher has been used, the database will be notified, and the new 150 points will be
required to gain the next voucher.

Tesco’s Clubcard program boosts 10 million active household and capture 85% of
weekly sales. This show the effectiveness of step taken by Tesco to do ClubClub program to
all their Tesco outlet around the world. It is also a symbol of Tesco’s commitment to their
customer as individual

In Malaysia, there had launch Tesco Clubcard Malaysia application which can be
download from google apps store or apple apps store for free. This app helps you manage
your Clubcard account at your fingertips anytime and anywhere when you shop with us!
View promotions, download and redeem vouchers or coupons, check points balance, and
enjoy more features via this app.

7
 In the five year period following the implementation of the Club Card program, sales
have increased by 52% and still grow at a rate higher than the industry average. Store
openings and expansions have increased Tesco's floor space by 150%.

In the online space, tesco.com boasts 500,000 transactions weekly, totaling nearly two
billion pounds in sales each year. The profitability, plus the size of the tesco.com business and
the number of transactions it completes, makes tesco.com a truly unique online grocery store.
Ritchie said he expects Tesco’s online sales to improve this year, in line with Malaysia’s
online shopping growth of 18% a year. With the rapidly changing retail landscape, Tesco is
focused on making shopping more convenient to consumers (The Star Online, 2017).

DOMINO’S PIZZA

Domino's Pizza started with just one store called "DomiNick's" bought by brothers
Tom and James Monaghan for $500 in 1960. James traded his half of the business to Tom in
1965, and as sole owner Tom renamed the business Domino's Pizza Inc. In 1978 the 200th
Domino's store opened, and things really began to cook.

By 1983 there were 1,000 Domino's stores, and in the same year Domino's opened its
first international store in Winnipeg, Canada, followed by its first store on the Australasian
continent in Queensland, Australia in the same year. By 1989 Domino's had 5,000 stores in
operation, making it the fastest-growing pizza company in the world, with stores in the UK,
Japan, and South America

Domino’s Pizza is the world's leading and fastest growing pizza delivery company
committed to upholding the industry in product quality and operational excellence. Globally,
Domino’s Pizza Inc. operates a total network of 14,000 owned and franchised stores

8
throughout the U.S. and in over 85 markets. Domino’s internationally ranks in the top five e-
commerce companies by the virtue of most online transactions.

In Malaysia, Domino’s Pizza is managed by master franchise holder, Dommal Food

Services Sdn Bhd. Domino's Pizza Malaysia was officially launched by Tom Monaghan,
founder of Domino's Pizza Inc, in September 1997. As at Q1 2017, Domino’s Pizza Malaysia
is the largest Domino’s market in Southeast Asia and fifth largest in Asia Pacific with 200
stores in Malaysia.

Forging ahead as an e-commerce entity, Domino’s Pizza has led many firsts in its
digital platforms. Domino’s Pizza Malaysia has leveraged on the digital world to the best of
its advantage and this began when it was certified as the first QSR company to provide an
online ordering platform by the Malaysian Book of Records with the launch of its website in
2003. Since then, the online ordering platform has grown tremendously, contributing
significantly to its ordering traffic. Domino’s Pizza Malaysia’s online ordering platform is
also ranked #1 for its online speed of service in the QSR industry.

Domino’s is the award winner of the 2009, 2010, 2011, 2012 and 2016 Gold Franny
Award, a distinguished Achievement Award of the International Franchise Association at the
Domino’s Pizza Worldwide Rally. In a show of confidence by Malaysian consumers,
Domino’s Pizza won Bronze in the "Restaurant & Fast Food" category of the prestigious
Putra Brand Awards 2014, silver in 2015 and bronze in 2016.

Domino’s Pizza Malaysia has grown by leaps and bounds since it first began its
operations in 1997. From a single store in USJ with a headcount of 15 staffs, the pizza chain
today has 200 stores in Malaysia and 23 stores in Singapore with a headcount of 3,600 staffs.
Domino’s Pizza Malaysia has experienced solid growth, particularly in the past few years
with the opening of its 50th store in January 2011, 100th store in December 2012, 150th store
in March 2016 and now the 200th store in April 2017.

Domino’s Pizza continues to strive towards delivering quality service and products
while embracing technology driven platforms as we progress into the next phase of growth in
Malaysia.

9
Experience

Domino’s Pizza is one of fast pizza delivering in Malaysia. Domino’s Pizza is one of
my favorite’s fast food line restaurants to dine in, take away or delivering. Mostly I will go to
their retailer outlet restaurant once a month or two month once with my friends or family.
This restaurant becomes my family favorite’s port to have dinner and also food for party or
any occasion.

I rather go to the Dominos than other pizza restaurant because of their service and
product line provided to the customers. The product serve in Domino’s Pizza in Malaysia
such as Pizzas, Pastas, Breadstick, Cheese dips, chicken, beverages and desserts. I had
experience in ordering by phone call, walk in and also online order. Based on my previous
experience using Domino’s Pizza service, it above my expectation which I satisfied with this
restaurant. Generally, Domino’s Pizza is likely others restaurants but specialize in pizza but
the service given by them to the customer are greats.

The difference menu provide by Domino’s Pizza is their type of crust for pizza. They
have various type of crust can be chosen by customers based on the preference. There about
seven type pf Domino’s Pizza crust which is classic hand tossed, crunchy thin crunch, new
York crust, cheese burst crust, cheesy crust, BBQ cheese burst crust and chilli cheese burst
crust. All these type of crust are been most orders by customer.

Domino’s Pizza also has their most famous all time desserts which is their chocolave
cake. This most famous dessert was order by most of customers that came their store. I also
always will try their new menu which will only available for certain period of time such as

10
now Samyang Pij-ja (tuna, chicken and beef) and Ayam-haseyo. This only available for
limited time. This will attract potential customer will try their new menu (Domino's Pizza
Malaysia , 2017).

Besides, to show their appreciate to their customer, Domino’s Pizza have their card
which name Express Card. There are a lot of benefits can get by having this Express Card
especially for regular customers. This card can be used when purchase by online, walk in or
phone call.

Domino’s Pizza also has phone call and online service to make order. Such a good
alternative for peoples that can’t go their outlet. I also always did order by phone called and
what amazes me is their greeting me with my name without asking me. They keep all my
profile details and history orders from various places. After taking my order they will ask
about address because in previous data I make order from Kedah, Penang and also Kuala
Lumpur. Their customer service is great in greeting and taking order suit with their fast
service restaurant. The best part about Domino’s Pizza service is their 30 minute guarantee.
Domino’s Pizza had a guarantee that customers would receive their pizzas within 30 minute
of placing order or they will give u free voucher to be claim in next purchase.

Online order customer also easy to place their order and have it within 30 minute. For
online order, customer can track their order using Pizza Tracker in Domino’s Pizza website
after placing order. This is make the customers more easier to know the pizza process and get
ready for take the delivery order because some of delivering boys need to rush sent other
order to their customer.

11
 Pizza tracker

30-minute guarantee

Starting in 1973, Domino's Pizza had a guarantee that customers would receive their
pizzas within 30 minutes of placing an order or they would receive the pizzas free. The
guarantee was reduced to $3 off in the mid-1980s. In 1992, the company settled a lawsuit
brought by the family of an Indiana woman who had been killed by a Domino's delivery
driver, paying the family $2.8 million. The guarantee was dropped that same year because of
the "public perception of reckless driving and irresponsibility", according to then-CEO Tom
Monaghan.

In December 2007, Domino's introduced a new slogan, "You Got 30 Minutes,"

alluding to the earlier pledge but stopping short of promising delivery in half an hour. The
company continues to offer the 30-minute guarantee for orders placed in its stores situated
in Colombia, Vietnam, Mexico, China, and Turkey. In Malaysia and Singapore, a refund is
instead substituted with a "Free Regular Pizza Voucher". In India, the guarantee is for ₹300
($5) and is valid for an order of less than four pizzas.

Different country got different 30 minute guarantee based on the country conditions
and ability. Like in Malaysia there no free pizza for the current purchase but we will get a
voucher that can be redeem for need purchase at any outlet in Malaysia. This is one of
alternatives that Domino’s Pizza did in order to keep their customers loyal to them.

12
 Free regular pizza voucher

Centralized Data

Maintaining clean lists has always been important for marketers to manage
relationships with customers and prospects. This is nothing new to Rob Weisberg, VP of
multimedia marketing for Domino's Pizza, which boasts a 99% US awareness rate and sends
direct mail pieces to 70 million households. Domino's began working with CRM agency
Razor about seven years ago for printing and production. Soon after, the agency took on data
and analytics responsibilities. With nearly 9,000 locations in more than 60 countries, each
Domino's store directly markets to consumers in that specific geographic area (Hurn, 2010).

At any given time in the US, Domino's has about 8,000 versions of direct mail, which
is sent out about every two weeks. The company also has an online tool that allows each
franchise to select its creative and offer and then order the pieces. This drastically cuts the
order to deliver time which in previous, it took about eight weeks but now only like closer to
two weeks.

Domino's has different creative not only for different locations, but also for various
points in the customer life cycle. For example, a welcome piece is sent to first-time
customers. If a customer is flagged as only ordering via phone, they may receive a piece
touting online ordering and the Domino's Pizza Tracker. If a loyal customer has not ordered
recently, they may receive a piece that says, "Let's get together again." Or, if a mistake was
made in a previous order, the customer may receive a special offer with a "Let's try this
again" message.

13
 Email has become important for the Domino’s Pizzas company although its roots in
direct mail. Weisberg says “Today, there are more than 10 million (addresses) in our database,
and we'll send e-mails twice a week with varying offers and creative based on past purchase
behavior" (Hurn, 2010).

Online ordering drives higher purchases per order, because users have the menu in
front of them and the process is easy. Because there are fewer mistakes, customer satisfaction
is high. And, data allows Domino's to upsell based on past purchase behavior. This can be
prove by the data show that a year later, Domino’s Pizza were the fifth-largest e-commerce
site in terms of transactions, and today they’re second only to Amazon. The effectiveness of
technology fully utilized by this company in order to meet customer need and wants that
change rapidly. How great they can manage their technology for business purpose was can be
seen by increasing number of people ordering from website. As they go digital, they’re
forcing companies to think holistically.

They process their listed every week because they don’t want to mistake a customer
who has moved for lapsed customer. They also don’t want to see that loyal customer in a new
home as completely new customer either. Important for the company to centralized their data
to avoid from lack quality of data. Managing existing relationship is kore cost-effective than
creating new ones.

Identifying

Domino's Pizza identified its customers through the personal information that is given
during the signing up of an account for the ordering of pizza online. The company
therefore identifies each customer with a unique customer code which in this case the contact
number and email address of the customers. So , whenever Domino's Pizza encounter this
contact number or email address of this customer when the customer call the hotline or order
online, Domino's Pizza will have to recognize the customer by its name.

To take a step further, Domino's Pizza might take note of the habit of
individual customer. For example a customer may call or order
online at a specific time. If the customers order
within the time

14
period for a number of occasions, Domino's Pizza may want to take note of that and maybe
even find out why.

Express Card

POS MALAYSIA

In 1992, Pos Malaysia Berhad was corporatised from the PSD. In September 2001,
Pos Malaysia Berhad was listed on the then Kuala Lumpur Stock Exchange (now known as
Bursa Malaysia Berhad) through a reverse takeover of a Philio Allied Berhad assuming its
listing status. Pos Malaysia Berhad is separated into four main Strategic Business Units called
PosMel, PosLaju, PosNiaga and PosLogistik. In 2009, Pos Malaysia restructured its core
services into three Strategic Business Units - PosMel, PosLaju and PosNiaga - and the
logistics arm will be supporting the delivery operations of the core services.

A courier service in Malaysia is relatively young. In the early 1970s foreign

companies such as DHL and OCS beginning their operations in Malaysia. The first local
courier company to operate in Malaysia is City-Link Express (M) SdnBhd which began its
operations in 1979. This was followed by ABX Express (1984), Nationwide Express (1985).

15
POSLAJU (part of the Pos Malaysia) and UPS appeared in the scene in 1988. FEDEX came
in 1991. In 1997 a local outfit GD Express began operating. Today the domestic courier
service is mainly dominated by City-Link Express, Nationwide Express and GD Express
(GDex). Both Nationwide and GDex are public listed company while City-Link Express had
remained firmly in the hands of its founder, David Tan.

The history of Pos Malaysia Berhad can be traced back to the early 19th century with
the establishment of postal services first in the Straits Settlements in which it would cover the
whole Malaya by early 20th century.

EXPRESS SERVICES

EMS Solutions

Malaysia’s national courier, locally knows as Poslaju or Expedited Service (EMS)

internationally, offers the perfect solution to all domestic ad international delivery needs
which require speed and proof of delivery. Poslaju or EMS service caters to all segments of
business community and the general public. There are 37 Poslaju Centres nationwide offer all
type of courier services.

Poslaju is one of the oldest courier companies in Malaysia. It started in 1989 by delivering
international mail under the Expedited Mail Service (EMS) banner for Pos Malaysia Berhad.
Two years later in 1988, it began to offer domestic couries services under the Poslaju brand
name.

16
Experience

Poslaju courier service is one of the courier delivering service that famous in
Malaysia had been many Malaysian people especially business entity. In now day’s era,
people like to do online shopping and all the stuff will be delivering to them. Because of this,
the demands for courier service are high. Poslaju is one of the best option that Malaysian
people.

I’m also the person that already used Poslaju as the medium to send my item my
customer and also receive items from other people. Unfortunate, I got really bad experience
with Poslaju which is they lost my item that need to send to customer. It happened because
due to the overflow of item at centers.

I followed all procedure for delivering item such as I buy their plastic bag based on
the correct weight of the item. After that, I fill in all the required form of delivering details
and put on the parcel. After the staff done to record my id for item then I got the tracking
number for the parcel.

Sadly to said that after four days after send the parcel for delivering, my customers
still didn’t get the items and I used the tracking to track parcel but there no record appear on
screen for my parcel. I start to worry about the parcel because it supposedly arrive my
customer on that days but what I got just no record.

17
 I tried many time to call the post office that I went for delivering but they didn’t pick
up my called. I decided went to the post office and try to trace my parcel from there. With all
form that I required to fill in and I need to wait about half an hour just for them to recheck my
parcel because there still no record in the tracking system.

Luckily, after half an hour wait, they finally found my parcel and I decided to brought
it back and inform my customer back that I will use other courier to send it back to her.
Although the parcel had been found but it’s somehow effect my business reputation. It gives
bad impression to me about their system and all their service is below my expectation. This
maybe occur for unluckily item but the system they used can be improve.

Besides, their numeric system is also slow because there just a few counter open but
there quite a lot people still wait for their turn. Poslaju also can spread their service which one
part just for billing payment and other specific for only courier service. Different staffs
handle specific service. It’s much easier for customer to ask for anything related to their
problem by not disturbing other staff that still on overload work.

18
Technology applied in Poslaju operation

Poslaju used Track and trace system lifts veil on real-time data as the solution in
improvement of technology system. Poslaju started on the implementation in 2007 together
with Motorola Premier Business Partner Grand-Flo Spritvest (known as Spritvest), and they
together developed the front-end application for the Motorola MC3000R mobile computer
(Kumar, 2013). After Poslaju had considered several brands and products, and various tests
were conducted, the Motorola MC3000R was chosen as it was the most rugged and well-
tested device in the market.

Labels and bar code were used which several advanced data capture technologies to
capture, move and manage key information to and from the different delivery points. Once a
package is received by PosLaju, its barcode label which is pre-printed on the consignment
note is scanned. Consignment note is adocument prepared by a consignor and countersigned
by the carrier as a proof of receipt of consignment for delivery at the destination. Used as an
alternative to bill of lading (especially in inland transport), it is generally neither a contract of
carriage nor a negotiable instrument.

The package is scanned again just before delivery to the recipient. The use of barcode
provides distinctive package identification as each has a unique number or identifier.
Combined with the application-specific software, PosLaju managed to offer a unique and
secure way to track and trace its packages. As prove to the quality of the track and trace
system, Pos Malaysia Berhad won the MSC Malaysia Asia Pacific ICT 2009 Award, for the

19
Best in e-Logistics Category for their development of the Pos Integrated Track and Trace
Information System (PITTIS) (Pos Malaysia, 2009).

With the implementation of the track and trace system, PosLaju now enjoys greater
operational efficiency, greater visibility and better customer satisfaction. The MC3000R has
given the mobile PosLaju workforce all it needs to achieve high productivity whether out in
the field, at the Post Office or checking orders. With the MC3000R, PosLaju employees are
now able to perform rapid scanning of packages, and keep track of deliveries accurately.

The MC3000Rs’ small form factor combined with a clear visual display, extended
battery life and several triggers in various locations help reduce user fatigue and ultimately
boost employee productivity. The Motorola MC3000R hand-held mobile computer is small,
lightweight and rugged, making it ideal to complement PosLaju’s track and trace application,
which requires high-quality data capture and high performance computing. Scanning is made
much easier, and is ideal for the company’s scan-intensive environments, maximizing
comfort for its workers throughout a shift.

The advantages of this solution stem from near real-time access to information. The
solution includes a tracing and tracking system that allows PosLaju to plan the quickest
routes to their delivery destinations. Customers can also track their deliveries online, and
know where their goods for delivery are located, thereby improving customer service.

20
 Motorola MC3000R hand-held mobile computer

REFERENCES

Domino's Pizza Malaysia . (2017). Menu. Retrieved April 12, 2018, from Domino's Pizza:
https://www.dominos.com.my/

Hurn, M. E. (2010, January 18). Domino's delivers with centralized database. Retrieved April 10, 2018,
from DM News: http://www.dmnews.com/email-marketing/dominos-delivers-with-
centralized-database/article/161416/

Kumar, A. (2013, April 29). Malaysia's PosLaju chooses Motorola for ‘track and trace’. Retrieved April
17, 2018, from Computer World: https://www.computerworld.com.my/print-article/33012/

Pos Malaysia. (2009). Annual Report. Kuala Lumpur: Pos Malaysia.

The Star Online. (2017, April 29). Tesco Malaysia sees more consumers going online for their
groceries. Retrieved April 10, 2018, from The Star Online:
https://www.thestar.com.my/news/nation/2017/04/29/star-power-talks-paul-ritchie/

21
APPENDICES

Domino’s Pizza website

22
Poslaju tracking system

Tesco online shopping

23