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D1 Analyse how developments in the consumer market have impacted on Tescos

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Introduction

D1: Analyse how developments in the consumer market have impacted on a food retailer How radical developments in the consumer market impacted Tesco During the past few years, the retail industry has been through radical changes which have changed most of the ways people used to do their shopping. One of the most significant changes the retail market has experienced is the introduction of the online shopping. Since then most retailers Tesco have shifted towards this new change which has now affected the way they operate. Tesco has released a click and collect service online to meet and adapt to this new change. This new service consists of a website customers can easily find the products and services they require to make it easier for their customers and more convenient. They have also adapted themselves to meet developments and keep up to date with new changes in their markets by introducing the self-scan checkouts technology which serves to reduce queues in stores. This new technology helps them satisfy their customers by reducing the time they would normally have to spend standing in queues. As one of the new radical changes that have affected the retail business, online shopping now makes up £7.7 billion of the entire UK grocery market. According to the IDG most recent report, the value online retail market will be up to £17bn by 2019, this is double the its current value and will be worth 8% of the market. The implication of this change for Tesco is that it will cost a lot of money for a retailer of their size to operate online. Although it is going to help their customers with their shopping, for the retailer, it will mean spending a lot of money to pay staffs that are going to put the products of online shoppers together before they are collected. How Continuing changes in the consumer market impacted Tesco To tackle continuing changes, Tesco have decided to take on environmental changes, Tesco is aware of ...read more.

Middle

Because of the impact of lifestyle changes, Tesco has been trying to satisfy customers? lifestyle demands by meeting one of its targets which is was reducing the number of calories sold in its own-brand soft drinks last year by one billion. Cultural expectation refers to the fact that people from different cultures i.e. (different countries) here in the UK are requesting the types of food from their culture, this is mostly caused by immigration. Also we have people from in the UK visiting other countries and bringing the cultures from these countries back to the UK where it becomes a demand. For example, sushi which has become a very popular food in the UK is actually a cultural food from Japan. Curries are another type of cultural food that has taken the UK by storm and are in high demands as take away food. Cultural changes is one of the biggest changes to hit the consumers market and to adapt to this change, retailers had to provide cultural food from other countries to make sure that their customers were satisfied. For example, stores like Tesco found themselves selling food from countries around the world and entire ranges dedicated to European food for example. There was also the arrival of Chinese, Indian and others take-away food from many food retailers. The implication of this change for Tesco is that it will cost them a significant amount of money to provide all their customers with cultural food in order to satisfy their needs and expectations. Om the other hand, since they will be satisfying customer needs, they will easily attract customers which will lead them to increase their sales and profits How two or much more cars household in the consumer market impacted Tesco? Having a car enables consumers to move more, the more they you can move with your car the more access you have to various and diverse food. ...read more.

Conclusion

Selling sustainable product will help Tesco to attract more customers because of the good reputation they obtained and also because there are people out there who like retailers who support such causes. It will also help the company increase customer loyalty and the amount of lifetime customers. How customer service in the consumer market impacted Tesco. As part of the radical change in the consumer market, retailer shops offer more staff and quality services. These are the things that attract more consumers because it means quality services. More and more retailers have imitate this technique to make sure they offer better customer services, some stores even have staff especially to welcome customers and make sure they more feel comfortable walking around. These staff help make shopping trips easy and enjoyable sometime for consumers because if you go shopping in a market and find it easy to locate every item on your list with clear and easily readable price tags you are more likely to go there every time you need to shop. Because customers are crucial and so important to retailers, they are the key for business to make profit and benefit. They have a significant influence on retailers and their activities and because of that, retailers like Tesco to better serve these customers to make sure they satisfy them and retain them. In order to find out they can better their customer service and keep their customers happy, Tesco put in place the ?yearly surveys? where Tesco give designed questionnaires to their customers and in exchange they get answers concerning what customers think about their general stores. The implication of this change for Tesco going to be the cost. The retailer will have to spend a lot of money to employ staffs and pay for their training in order to have a skilled and experienced customer service staff. On the other hand having a good customer service in the store will help satisfy customers and keep customers around for more. ...read more.

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