Understanding Tesco & it's core marketing strategy.

1. How can consumer purchase trends help a
company increase it’s brand equity ?
Will integrated marketing channels allow for
greater synergy within a company ?
Will local success allow global domination ?
Think about it …

2. A Marketing Strategy Case Study
Chapter 21 - Designing and Managing Integrated Marketing
Channels

3. Overview – Fact sheet
Founded in 1919 in London, UK by Jack Cohen as a grocery store
Current Market Capitalization of 18.1 billion Pounds with Revenues of
55,917 million pounds
Jack Cohen's business motto was "pile it high and sell it
cheap"(The old logo)
Product segments now include – Grocery, Clothing, Furniture,
Telecom, Banking and more
Currently has major store presence in - China, Czech Republic,
Hungary, Ireland, Japan, Malaysia, Poland, Slovakia. Thailand & UK
Employee count of 600,000 + world wide

4. The TESCO growth story
Jack Cohen sets
up 1st grocery stall
The brand name
TESCO is established
Tesco Holdings
Limited was listed
Tesco Leicester is the
largest store in Europe
Tesco sets up it’s first
petrol station
Tesco completes hostile take
over of supermarket rival –
Hillards for 220 Million Pounds
Tesco’s changes
slogan to – Every
Little Helps
Tesco launches it’s club
card scheme
Tesco.com is
launched
Tesco enters the
Broadband market
Tesco announces plan
to open in the US. It
now operates in 13
countries
Tesco now has presence is
every single postal code in
UK
Tesco Bank is launched in
a joint venture with RBS
Tesco reports it’s first drop
in profit in over 20 years
Tesco admits overstating
it’s profit forecast by 250
M
Warren Buffet calls Tesco
investment a ‘Huge Mistake’

5. Vision -
To be the most highly valued business by: the customers we serve, the
communities in which we operate, our loyal and committed colleagues and of
course, our shareholders.

6. Tesco & it’s marketing in
the news
Tesco looks to dominate food industry
with £3.7bn Booker deal
Tesco CMO on how the brand is
‘rebuilding from the inside out’ as it
debuts first TV ads from BBH
Tesco sales growth hits seven-year high
as CEO insists it will try to keep prices
low
Tesco Publicly Pledges to Detox its
Garment Supply Chain

7. Inorganic Growth
Williamson's stores (1957)
Harrow Stores outlets (1959)
Victor Value chain (1968)
Charles Phillips stores (1964)
Hillards super-mart chain (1987)
William Low (1994)
(1997)
(2004)
(2007)
(2017)

9. Criticism for Tesco
Litigation for defamation
Price Fixing Scam
Tax avoidance
Horse meat sales
Thailand Slavery Case

10. Tesco SWOT Check
• Powerful retail brand
• Wide range of products
• Strategic joint ventures
• Long term customer relationships
• Hasn’t dealt with bad debt
creating customers
• Diversion into smartphones &
tablets
• Unfruitful investments
• Entry into untapped markets like
Australia
• Service diversification
• Flexibility through online
shopping
• Competition from Sainsbury,
Asda, etc.
• Preferences given to small town
retailers over Tesco

11. Marketing
Evolution
Superior
Quality
Competitive
Pricing
Sales
Promotion
Customized
consumer
relations
Emotional
consumer
connect
Marketing
Excellence

12. Positioning of Tesco.com
Holiday Offerings
Clubcard – Loyalty card now
integrated with the TESCO
mobile app
F&F – Tesco’s clothing
segment

13. Building Consumer
confidence !
Tesco – One in front
- Consumer convenience

14. Tesco’s scan as you shop campaign in the UK

15. Emotional Consumer Connect

16. As Tesco Expands overseas, can it succeed by using the same strategies it has
used in the United Kingdom ? Why or Why not ?
Question 1
Different
consumer
mindsets
Retreat
from the
US
market
Compete
strategies
are more
versatile
Technolog
ical
differentia
tors

17. What factors should it take into account while formulating strategies in global
markets ?
Question 2
Considering a
localized strategy
Local partnerships
& image
Investing in building local
supply chains

18. What are the ways in which Tesco connects with it’s customers to provide
more value for them ?
Question 3
Annual customer question time – Survey
Humorous advertisements
Ease of shopping (scan & shop)
Loyalty program – Club Card
Sales Promotions – Customized discounts
Individual
Connect

19. RECAP

20. To sum it up …

21. Disclaimer
This presentation is prepared by Chirag Mehta ( H.R College –
Mumbai University) as part of a summer internship under Prof.
Sameer Mathur (IIM Lucknow).
Chirag Mehta
Prof. Sameer Mathur