Tesco Segmentation Targeting Positioning

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B) Produce an individual report which sets out a market strategy for a new market (segment) for Tesco to enter. This should be fully justified. (50% of overall marks and due by 3pm Thursday of week 8)
Executive Summary:
After analysing the changing habits of UK consumers, it is seen that consumers begin to shape the industry in the sense of “health consciousness” and “awareness of product quality”. Starting from this point, this report aims to suggest new segment for Tesco which gathers all its organic and health related products under the one brand/label, called “Tesco Wellness”. The launch of this new segment will be cost approximately £12.5 million which return on investment will expected as £60.5 million. Nowadays, this segment is really attractive for retailers to get in because the consumer demands and growth of market are increasingly getting higher. As Tesco being focused on consumer demands, this segment will be sustainable for them to offer products in wellness market.
Introduction:
UK consumers are becoming increasingly health conscious. They are looking for healthy products in the markets so, retailers must take into account consumer's changing behaviours. Three important retailers of UK which are Tesco, Sainsburry’s and Waitrose, give consumers opportunities to find wide range of organic products.Tesco, Sainsbury’s and Waitrose have the highest market share of organic food sales in the supermarket sector (International Business and Cooperation, 2009). According to Soil Association Report 2014, sales of organic products in the UK increased by 2.8% in 2013 which is a decisive return to growth after four years of market shrink. It may be suggested that Tesco should focus on this segment which will open more growing in the future.
The Market Overview
Tesco Wellness will include four sub-segments like organic foods, vitamins and supplements, sports nutrition, the beauty and personal care products. All these sub-segments have a growing market and the UK



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