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.