CASE STUDY

Case Study: Tesco



Word Count: 2,550

Case Study: Tesco

Introduction

Tesco is the the biggest food retailers in the United Kingdom, an estimated 15.5% share of the total market. Tesco is also designed to increase their share of non-market. The two most important factors for the success of Tesco in listening to customers and learning from mistakes. Offering quality products at low prices and put local people first in the way they conduct their business as their main strategy. (Dixon, 2001, pp. 130)

Tesco was based in 1919 and commenced their shop in London, UK in 1929 (Tesco, 2010, pp. 45-55); although, over the years they has developed to turn into the leader of the market inside the UK food retail section. The relative placing of Tesco's share of the market with esteem to other premier competitors in the marketplace has been showed as pursues (See Appendix 1).

Tesco Target Market

Grocery retail market is divided into geographical segments. Supermarket Tesco, as it is important to focus on the different consumption habits in each region and neighborhood to reach its target market effectively. (Datamonitor, 2010, pp. 74-85)

Another way to market segmentation is the use of ACORN (= Classification of Living Quarters), which geodemographic segmentation method, which is given in Appendix 1. ACORN is based on census data. Each index is in the country given the name of a group of AF. If you are using ACORN, Tesco could easily identify its local customers and make their products and services that suit them, which shows the percentage of adults over 15 years, who do their main shopping at Tesco. Consumers are categorized as ACORN and their demographic location.

This table shows that Tesco has been successful in reaching its target market, which is also the B category. C and D groups, where Tesco is losing its customers of other retail grocery. Since Tesco has a majority of its stores in South and South-East England, Northern market share is low. As the market leader, Tesco also has a very strong national coverage (Euromonitor, 2010, pp. 74-85).

Differentiation

Tesco uses a differentiated marketing strategy. The company targets several market segments with separate offers for each of the goals. Tesco targets mainly consumers living in urban and suburban areas, as well as consumers living outside the city or area in suburban locations. Tesco Metro stores modern shops designed for consumers living in urban areas, especially civil servants who want to buy lunch or go shopping on the way home. These stores are located in the city center and offers products to customers of quality.

Supermarkets are located on the edge of the city, as a rule, easily accessible by car and public transport. Supermarkets offer the consumer as food, clothing, electrical goods and petrol.

Sub Segments

Geographical and geodemographic segments also subsegmented. Tesco targets the following segments:

Vegetarians

Tesco knows that there are many vegetarians in the population, and the orientation of this group they have "suitable for vegetarians" logo on foods that contain no meat.

PESTEL Analysis of Tesco

The PESTEL analysis underneath investigates the dynamical ...