TESCO

Marketing Strategies: Tesco



Marketing Strategies: Tesco

Introduction

Tesco is the largest food retailers in the UK, 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 are 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 its first shop in Edgware, London, UK in 1929 (Tesco, 2010, pp. 45-55); although, over the decades it has developed to become the market leader inside the UK food retail segment (Datamonitor, 2010, pp. 74-85). The relative positioning of Tesco's market share with esteem to other premier players in the market has been showed as pursues.

The British supermarket company Tesco is now the fourth largest retail chain in the world, employing 450 000 people and has a growth rate of 13% annually. However, things were not always smooth sailing for the big retail in 1992 was forced to shift its strategy, focusing squarely on the shopper. It all began in 1919 when Jack Cohen founded the first store in London Tesco, dedicated to the sale of surplus production (Adams, Peter, William, Harrison, 1998; Huff, Reger, 1987; Bathory, Alexander, 1987, 130-134). Ten years later, opened its doors the first branch. In 1961, the establishment in Leicester Tesco made its official entry into the Guinness Book of Records as the largest retailer in Europe dedicated to the final consumer. However, in the early 90's changed the outlook for Tesco. He was in a highly developed industry and saturated, in a country with declining population, under the eaves of a tough leader, and Sainsbury, and threatened by the strong arrival of Wall mart and new store formats with tempting discounts (Ginter, Swayne, Duncan, 2002). Despite this frightening scenario, in recent years Tesco has never stopped growing.

Discussion and Analysis

Tesco's 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. 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.

Marketing Strategies of Tesco

Tesco first thing he did was follow the strategy of the giant Wall mart. A virtuous cycle consisting of three points: to be cheaper, sell more and grow more. The logic is that to be cheaper, sell more ...