Essay on Tesco - Strategic Marketing Techqniques

4942 Words Mar 7th, 2006 20 Pages
Tesco's is a United Kingdom based international supermarket chain. It is the largest British retailer both by global sales and by domestic market share. Originally specialising in food, it has moved into areas such as clothes consumer electronics, consumer financial services internet services and consumer telecoms.

The Current Position
In 1995 Tesco overtook Sainsbury's as the UK's largest supermarket. In 2001 Tesco occupied 15.6% of the UK grocery retail market and was the market leader by 6%. Tesco's enormous share still grew and by September 2004, it had increased to a massive 28%, around 12% more than its nearest market rival, Asda. In the year ended 26 February 2005 Tesco made a pre-tax profit of £1.962 billon on turnover of
…show more content…
There are 546 stores at 26 February 2005 year end, with a typical size of 2,000 square feet (190 m²).
• One Stop The only category which does not include the word Tesco in its name. These are the very smallest stores. They were part of the T&S Stores business but, unlike many which have been converted to Tesco Express, these will keep their old name. There are more than 500 of them. Typical size 1,300 square feet (120 m²).
In May 2005 Tesco confirmed that it will be trialing a non-food only format.
• Tesco Homeplus : These stores offer all of Tesco's ranges except food in warehouse-style units in retail parks. The first one opened in Manchester in September 2005. Tesco is trying this format because only 20% of its customers have access to a Tesco Extra, and the company is restricted in how many of its superstores it can convert into Extras and how quickly it can do so. Large units for non-food retailing are much more readily available
It operates 1,878 stores in the UK, 261 stores in Europe and 179 stores across Asia, and plans to open 184 stores worldwide over the next year.
A study carried out for the Sunday Times by research group CACI revealed that Tesco has almost total control of the food market in 108 of Britain's postal areas - 7.4% of the country. This includes Epping in Essex, Penarth in South Glamorgan and Buckingham. In a further 104 areas, it accounts for more than half of grocery spending.

Related Documents