Tesco’s Success Story

Tescos success story Some of the secernate reasons forTescossuccess include Tescohas been in particular successful because of its powerful brand. It has a reputation for value, low prices and for being client focused. Its brand equity and associations take hold helped the company to expand into new sectors and markets. Tescohas also been strengthened in public relations, advertising and building profile in catchment areas on a local level. This local approach to marketing appears to be a key driver for success. Tescohas a good range of products, including own label products.It seeks to provide excellent customer service, and ensure lavishly levels of customer satisfaction. The own label products have helped strengthen profits for the group, and it broad appeal through good, better, best (finest ranges) caters for the widest consumer audience. Aggressive overseas expansion has helped to keep profits high. The organisation has expanded into Eastern Europe, emerging nations such a s China and South Korea and even the US, through mid market supermarkets known as, fresh and easy.Its strategy of being close to the customer has been assisted in the UK specifically, whenTescodeveloped different formats for shop (convenience, metro, express, superstores). It has been the best retailer for format delivery and obtaining some of the best retail positions. It gained a first factor advantage when it launchedTesco. com, which is one of the biggest and most successful online retailers. This part of the business continues to grow market share and has provided a channel to sell non-food items and other areas of the business including finance.Information engineering has revolutionized the retailer, not only in stock-control and distribution worldwide, but also in terms supplier management. It has enabled better I) retailer-manufacturer innovation ii)shorterningof decision making and greater familiarity sharing. Tescois one of the most advanced companies in consumer underst anding aided by IT (e. g. DunhumbyandTescoClubcarddata). Consumer data has i) shaped product offerings ii) ranges iii) givenTescoa better understanding of consumer segments and shopping profiles and iv) helped marketing to build loyalty and develop promotion offerings that suit target groups.This level of sophistication has helpedTescoto remain leader within the UK market. Suppliers are internationally sourced, andTescogains graduated table economies from its large buying volumes. This has enabled the company to keep prices down and supported its low price strategy aimed at the broad consumer market. However, the company has been criticized for its management of suppliers and clashes with the farmers union. There has been developing opposition to the supermarket because of its size, and the government (through the Monopolies and Mergers Commission) has been involved in ensuring competitive markets in the UK.Recent acquisitions such as TampS stores, have led to a high concentration , with only few dominant players within the market. The organisation has a diversified product portfolio, which includes telecommunications, finance, insurance, which provides cross and up sell opportunities to customers. Profits have been invested to support seek and development, and its aggressive international expansion plans. Read morehttp//www. businessteacher. org. uk/business-resources/case-study-database/tesco-case-study/ixzz2B9gukB98