Etude Marketing Tesco

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Founded in 1919 Turnover 2011 : 65 bn GBP (66% in the UK) 6200 stores in the world (14 countries) UK : 29,7% of market share in 2012 6 kind of store: Tesco extra, Tesco super store, Tesco metro, Tesco express, one stop and Tesco homeplus

Waitrose 6% Tesco 30%

Aldi 4% Asda 18% Co Op 7% Morrisons 12% Iceland 2% Lidl 3%

Sainsbury's 17%



To grow the UK core


Reinvigorate the shopping trip for customers and deliver improved performance for shareholders.



To be an outstanding international retailer in stores and online 

Increase international market shares with more stores and online shopping



To be as strong in everything we sell as we are in food


To be as strong in non-food area as in food one.



To be a creator of highly valued brands


Own label programme appeals to diverse customers needs, increase quality and competitive prices



To build their teams so that to create more value


Increase the service into the store (more sales consultants)

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Basic earnings per share (p)

Basic earnings per share (p)

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Turnover (£m)

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Turnover (£m)

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Profit for year (£m)

Profit for year (£m)

Group sales :

£72 bn £3,7 bn £64 bn

Group trading profit : Group revenu :

Net debt :

£7,2 m

For the first time since the creation of Tesco, the company loss market share in the UK market consequently the share price drop

Context :
Market shares of Tesco as declined under the 30% historical line.

Decision :


Overhauls value range products in order to change its low cost brand image to arrest decline

Consequences :


Modernise its label, improve quality product and packaging and provide better tasting and healthier products

An investment of £1bn in UK stores to improve them and most of all to improve customers services in stores and on line



Adapt the offer better to the needs of local customers Increase the Online Service Create 20000 new jobs in the next 3 years to provide a better service to the customers





Unemployment has increased since 2008 (from 5% to 8.1% in August 2012) England and UK are in recession since 2011.

People eat more at home. They prefer to cook than to spend money in restaurant People prefer low prices products (Quality/prices)

Increasing of demand for organic products (People are more health – conscious) Cosmopolitan culture in the UK (diversity in the purchasing habits)





We can conclude that Tesco continues to hold its leadership position in the UK market, within the turbulent retail segment, where companies are required to pursue cost and differentiation strategies. Significant investments have been made in order to retrieve the lost market share and restore the confidence of shareholders and investors

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