Marketing Channels on Tesco Thailand

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Managing Distribution and Marketing Channel: TESCO Lotus This essay is to written in to express my opinion on group 4 presentation on Tesco Lotus marketing channel and further analyze the marketing channels in more details. Tesco Lotus has undoubtedly changed the way people in Thailand goes to supermarket since it entered Thailand in 1998 and now has over 380 Stores as part of a joint venture with CP Group. Consumer Marketing Channels Tesco Lotus in Thailand uses 1 level of consumer marketing channels as they themselves act as retailer. The suppliers would have to refill their inventory at Tesco Lotus Distribution centers which is placed across the country and Tesco will distribute the goods to each branch themselves. In order to serve the customers better by minimizing out of stock time and more Tesco Branches efficient and cost effective, Tesco Lotus divides the goods into 3 (Act as retailers) categories: Fast moving goods, Average moving goods, Slow moving goods. They categorize their products by dividing each of them into one of these categories and therefore, fast moving goods such as grocery, can be delivered fresh and never run out Consumers of stock everyday, whereas slow moving goods, such as furniture only needs to be re-stock every week, rather than everyday. Tesco Lotus distribution system is managed by themselves and therefore it is also their advantage over their rival, Big C, who uses DHL as their distributor. Tesco Lotus can control their own distribution system and the distribution cost. The example is presented during the presentation which is using Bio-diesel for all Tesco Lotus distribution trucks which can save a lot of transportation cost. Types of Store Tesco Lotus operates in various types and sizes of store. Thereʼre 6 types of store sizes. 1. Hypermarket, 2. Tesco Lotus Valued, 3. Talard Lotus, 4. Tesco Lotus Express, 5. Plus shopping mall, 6. Community Mall. The hypermarket is the full size store with the most assortments and products, Tesco Lotus will place this store type mainly in the outskirt of the city to serve the people in the city. The Tesco Valued store is smaller than the hypermarket type and has less assortments and products, Tesco Lotus will mainly select the faster moving goods and leave out more expensive assortments or products as this type of store will be places mainly in more rural area. Talard Lotus shares a similar concept to the Tesco Valued but mostly focuses on fresh grocery. This concept came from the local market in Thailand. Tesco Lotus wants to create more local experience for the local in upcountry.Tesco Lotus Express, this is the smallest store size and it is more like a convenience store than a super market. This type of store was created to compete with 7eleven who is the market leader in this store size with the most branches throughout Thailand. This type of store is usually placed within a community area and mostly carry foods and drinks. Plus shopping malls is also a full sized hypermarket but Tesco Lotus Wissut Prutisart, ID: 5249252

Tesco Distribution Center (Act as Tesco Mfg)

focuses more on the rental space within their mall. They want to create a shopping mall atmosphere with clothes shops, restaurants, cafe etc with a full sized supermarket. The last type of the store is the community mall, the concept is similar to villa market but the stores are placed closely to community household. The objectives for Tesco Lotus for having many types of store are to serve the right products at the right price and place for consumers in those demographic areas that the stores are in. This is more beneficial to both customers and to Tesco Lotus, as Tesco Lotus only carry what their customers in those areas need from their stores and nothing else more than that. It is more efficient, less investment cost, lower operation cost for Tesco Lotus too and also providing the maximum coverage of their customers as much as possible. Customers also gain a lot of benefits from...
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