Post on 17-Jan-2017
Presentation by Sujesha Sharma
INDEX• Introduction• Tesco product categories• Tesco stores• Let’s remember how it used to
be• So what changed?• Major competitors• SWOT analysis• References.
● Tesco is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom.
● Third-largest retailer in the world measured by revenues; the second-largest measured by profits
● Stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK.
● Originally specialising in food and drink, it has diversified into areas such as clothing, electronics, financial services, telecoms etc.
● Tesco also operates a grocery home- shopping service, as well as providing consumer goods, telecommunications and financial services online.
INTRODUCTION
TESCO PRODUCT CATEGORIES
• Groceries: Groceries, recipes, real food etc.
• Wine by the case: Fine wines, special offers etc.
• Entertainment: MP3, Concert tickets, DVD Rental etc.
• Books: Pre-orders, Children’s corner, Cookery etc.
• Clothing: Brands, Kids, Women, Men etc.
• Bank: Credit cards, Car, home, Pet, Travel Insurance etc.
TESCO STORES• Tesco Extra • Tesco Superstores • Tesco Metro • Tesco Express • One Stop • Tesco Homeplus
Let’s remember how it used to be
• Stores in need of repair• Stock control was manual• Stock purchase was localised• Inefficient costumer product
pricing• Supply chain was integrated and
expensive to maintain.
So what changed?
Organisational transformation
• Head office functions were re-aligned with the retail store’s operational requirement
• Supply chain management was re-aligned.
• Retail store management underwent a major re-organisation, with tiers of middle-management removed and staff empowered to serve their own customers.
Process transformation • Business processes were changed to
become more customer focused.• Inefficient processes were stripped
out. • Meeting management was introduced
to minimise staff time wasted in unnecessary meetings.
• Programme and project management was aligned.
• Performance measures were introduced across every level of the company’s operations.
• The supply chain was completely reviewed.
• Distribution centres were re-laid
Information Transformation
• In 1995 Tesco introduced the ClubCard in the UK.
• The introduction of the ClubCard allowed Tesco to really understand its customers
• The introduction of ClubCard vouchers created a whole new way for retailer to encourage customer loyalty.
Technology Transformation
• In 1982 the first computerised checkouts were introduced
• From the mid 1980s Tesco introduced new computerised stock control systems
• From the late 1980s computerised pricing was introduced to retail stores
• Personnel management systems were introduced to ensure that pay, rewards and development matched staff potential.
Environmental• Encouraging reuse of plastic
bags• Rewarding bagless deliveries
with Tesco's green Clubcard points.
• Providing practical advice of environmental issues.
• Adding carbon footprint data to its products.
MAJOR COMPETITORS
• ASDA• J Sainsbury• WM Morrison supermarkets• Wal-Mart• Carrefour• Bp plc
SWOT ANALYSIS
STRENGTHS• Largest supermarket chain in UK.• Strong brand name and financial
power.• Third largest retailer after Wal-
Mart and Carrefour.• International presence in 13
countries.• Better usage of technology in
marketing and distribution.
WEAKNESS• Increasing geographical spread
makes focus on specific markets difficult.
• Lack of experience in phone and insurance markets.
• More dependency on UK market.• High transport costs.
OPPORTUNITIES• Strategic alliance with other
companies.• Online arena for selling and
marketing of products and services.
• Opening of new stores.• Enter new Asian markets.
THREATS• Tough competition from giants
Wal-Mart and Carrefour.• Fluctuation in taxes may impact
the Tesco financials.• Innovation by other super
markets.• Rising raw material cost.
REFERENCES
• http://www.slideshare.net/AshutoshSingh39/tesco-12875122
• http://www.slideshare.net/RofidahAzman/mba-assignment-43030163
• http://www.slideshare.net/j4g2r/tesco-presentation?next_slideshow=1
• http://www.tesco.com/
Disclaimer
Created by: Sujesha Sharma, IIT Guwahati, during a marketing internship byProf. Sameer Mathur, IIM Lucknow.