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

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D1: Analyse how developments in the consumer market have impacted on a food retailer

How radical developments in the consumer market impacted Tesco

In recent years relating it to businesses, radical changes have occurred on online shopping where it has become a lot more acceptable, where many business including Tesco has released a click and collect service so that they can meet these changes to “stay on top of their game”. Radical changes have affected Tesco because they have adapted to meet developments by installing self-scan checkouts to reduce queues in stores, this new type of technology that supermarkets have invested in to keep their customers happy, by reducing the time standing in queues. Tesco plc. also has a website for customers to order their shopping and either have it delivered to their home or can pick it up from the store. This indicates that Tesco are arranging services to work around their customers as they are their main audience and target people/customers. Tesco have benefited from their online services because customers are happy that Tesco are working around their times by providing time slots where they can fit their customers preferred time of pick up or delivery. In 2012 Tesco were close to 50% of internet food sales. This has improved their reputation and brought more customers and increased sales in recent years.

Another radical change is Tesco have a ‘’Scan-As-You-Shop’’ Technology. Tesco has said it will add another 100 stores by the end of 2014 also it is also exploring the use of mobile phones to scan and pay for shopping. This makes the customers happy and encourages Tesco’s customers to praise their business and encourage them to return.

How Continuing changes in the consumer market impacted Tesco

Continuing changes are about the changes that are continually happening this can be influenced by fashions, trends and awareness. A continuing change refers to a trend that is customers want value for money, because of the tight budgets that they have so they wish to save money wish is now sociable acceptable, businesses do this so that their shopping experience is more pleasant online or in store.

For many years Tesco have worked hard to reduce emissions in the fight against climate change. ‘We are committed to meeting our 2020 targets to reduce carbon emissions in our direct operations, in the products we sell and to help our customers to do the same’’.

They started measuring their carbon footprint back in 2006 and they found that the vast majority of their direct emissions come from electricity usage, distribution fuels and refrigerant gases.

Tesco have a plan called ‘F Plan’ this is their strategy for reducing emissions. 2014 they have made a 7.8% reduction and their plan for 2020 is a reduction target of 25%.

In Thailand, Tesco are opening a new distribution centre so they can transport products to their customers more efficiently. They have a new Khon Kaen regional distribution centre this will allow them to reduce the distance driven by their trucks by 400,000 kilometres each week.

How Customer expectations and demand in the consumer market impacted Tesco

Consumer expectation generally refers to the needs and wants. Consumers may also have high expectations for new products that have been given a lot of exposure. Consumers can be broken down into three groups: those who are expected to buy, those who are not expected to buy, and those who are undecided about making a purchase. What customers think and feel about a company and/or its products is a key aspect of business success also. Customer expectations and demand must be met if a business will want their customers to return and purchase from their business again. They must guarantee their demands and expectations are met in order to gain customer loyalty and enhance relationship with their consumers.

Tesco has reduced the prices of more than 3,000 products that customers need to buy every day - such as milk, bread, fruit and vegetables. Customers are turning away from expensive brands to more affordable own label ranges. Tesco brand products are the most popular in the country and are now even better quality. Over the past 18 months Tesco has improved over 1000 products, with many more to come. Tesco will focus most of the investment in the Big Price Drop on reducing prices on over 1000 Tesco brand products

With Aldi and Lidl gaining more shoppers, – Tesco’s ...

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With Aldi and Lidl gaining more shoppers, – Tesco’s had no option but to lower prices if they didn’t they would of lost half their customers that will start shop at Aldi and Lidl

Tesco had recorded the first lost in 2 decades in 2012, their superstores, costs, store environment have additionally been examined, a survey done which shows that Tesco were the most awful market in the UK, because there customers were not feeling that they are getting items for the right price, an article Found Tesco customers felt that the store environment was not inviting. what has been expressed by the daily papers Tesco PLC have used over £1 billion pound in making the store additionally inviting and preparing more staff so customers don’t need to look for workers. The way Tesco PLC urges customers to focus on the business is through trust, yet because of the horse meat scandal it prompt the purchasers not having enough confidence in the business which prompt the business not making enough income in that quarter of 2013.

The impact of customer expectation and demand has proven to be good for Tesco because they have worked on the idea of responding to the customers demand and reaching the expectations they have for the company. This is good because it has pushed Tesco in terms of investing in refurbishment for customers redesigning their store environment they require as well as providing them a better shopping environment. Through this Tesco have shown that they can respond to customer demands and that they keep in mind the expectation people have from them. This means that Tesco have benefited from customer expectation and demands as they have been able to build loyalty with their customers which every business aims to do.

How changing social and working patterns in the consumer market impacted Tesco

Changes in social and environment include changes like working patterns that have occurred for instance more people are concerned about their health where they want to live healthier life style, Supermarkets for example Tesco’s can find information about what information they need through the club card system, where they pick up new trend that are occurring in society and there is now a variety of different food ranges depending on how different people live their lives. Also some stores now remain open for 24 hours to work around every working people’s hours. Tesco are obtaining information about their customers from their club card service will help them to better, this is because they can find out more about their customers and meet their needs to improve their performance.

Tesco will monitor the shopping habits of customers who want to slim and advise them on how to eat more healthily. The system will work by using Club card data to check whether shoppers are loading up on doughnuts, chocolate and pizzas. The supermarket giant said it wanted to play its part in battling the growing obesity epidemic.

Tesco has already met one of its targets by reducing the number of calories sold in its own-brand soft drinks last year by one billion.

Tesco has increased the number of non-food items offered for sale. The type of goods and services demanded by consumers is mostly influenced by their beliefs and attitudes which, in turn, are influenced by social conditioning. Because customers are becoming more aware of health issues, due to which their approach towards foods is changing constantly, Tesco is adapting to these changes by accommodating the demand for organic products.

Working patterns have impacted on Tesco as they open some of their small, convenient stores 24 hours as well as their petrol stations. This is to fit everyone’s type of life. This is because some people work days or night and do their shopping through the day. This indicates work patterns have impacted Tesco as they have make changes to their product line as well as trading hours for some stores. This indicates that the change has proven to be a good impact on Tesco; because by Tesco introducing a new healthy product line they have attracted those with a healthy lifestyle and those customers now come to shop at Tesco regularly because they find all their products they require there with the number of calories that are within the product. Tesco having new convenient store hours has shown that they can adapt to changing working patterns and that they are adapting for their customers convenience as they are the ones who make the business successful. This shows that Tesco are ready to employ employees who are ready to work all night to provide the same service for their customers for 24 hours. Through this Tesco sales and customer foot fall has increased rapidly as they have met the majority of peoples convenience.

How affluence in the consumer market impacted Tesco

Affluence is how much money a person earns in a household. This is central to the food industry because the higher the persons income they higher quality they will purchase and vice versa. People can have high levels of affluence and low levels of affluence for example people have high affluence on new ranges like Tesco finest. Depending on the income people get in their household, can influence the food industry in terms of them providing their customers with products that they are able to afford for those who have a low income. However people who have high affluence are people who have a high income of money within the household.

In 2012 Tesco has begun talks with suppliers aimed at launching price promotions in less well-off areas where it faces competition from the likes of Aldi and Lidl. “It has a list of 100 stores where it is going to launch special deals at discount prices,” said one Tesco food supplier involved in the talks.

Tesco’s has value range products means that they have met customer expectation and have adapted to the changes in the economy. This is because their sales have decreased slightly in spite of this due to what’s going on in the economy. This is because they are providing ranges of food that match everyone’s household/lifestyles income, which means that they do not make their customers feel intimated with those who have less money to buy the end products when they can’t buy them. This development has helped Tesco meet all their customers’ requirements in terms of finance and has helped them increase the number of customer s they have through the door every day. If they hadn’t introduced the food ranges then their sales may have fallen even further.

How increases mobility in the consumer market impacted Tesco

Increased mobility is about the increase in moving around. This has impacted on Tesco because as there a rise of customers visiting the stores many are travelling around from quite far. This indicates that Tesco have been impacted on that when buying a new piece of land for their store ensuring that their parking space is very big because people have difficulty parking when the car park is full. Many people are also using different types of transport such as buses and trams. Therefore Tesco aims to build their new stores where there is a bus stop which is just outside for their customers which is same for trams in some cities. This is beneficial for Tesco as many customers due to the variety of transports to the stores. This indicates it’s good for Tesco because it attracts more and more customers which increase their sales and so making changes to adapt to the development in this case can be good or bad for them. Also due to the increase in mobility there has been an increase in out of town stores and Tesco introduced the click and collect service. This means at the same time there has been an increase in local stores due to the population density and convenience stores.

How environmental issues in the consumer market impacted Tesco.

Carbon emissions waste, sourcing food and sustainability can affect the environment from large organization such as Tesco. Tesco must be aware of concerns of food mileage, as Food mileage are flown from thousands of miles away which are available all year round, which causes damage to environment due to plane travelling. Also sustainability must be made aware of as Tesco must ensure that their fish are caught in a way that the environment is kept safe and ensure that there is future supply. This has impacted on Tesco as they have had to reduce the percentage of waste and have had to recycle some of their packaging in order to increase their reputation within the food retailing market. They have also had to cut their carbon emissions by reducing their small deliveries. This is because Tesco is a big business and altogether produces a lot of waste. They have had to cut down their small deliveries and had to put them in with the big ones on another date to reduce carbon emission. This impact is beneficial because they have reduced their carbon footprint as well as their waste. This demonstrates that their reputation with customers will not be tarnished as they are doing their bit in protecting the planet. This means they will not be fined for overproducing waste and carbon emissions and will remain legal as well as environmental which will make environmental customers happy and will attract them for their reputation to.

Tesco has been named top UK retailer for tackling climate change, based on its inclusion in the CDP’s FTSE 350 Carbon Disclosure Leadership Index for the fourth year in a row.

Tesco is clearly committed to reducing its carbon footprint by 50% by 2020. Also, Tesco is minimizing the waste produced in their stores by increasing social conscience in customers. Tesco are helping the environment by reduces carbon footprint and minimizing the waste in their stores.

Tesco are using LEDS because they are proven that they can deliver energy saving and reduce maintenance expenditure. So far they have converted 1,200 to their small convenience stores to led lighting they save 17 GWH of electricity and reduces their carbon footprint by 7,640 tons each year.

How technology in the consumer market impacted Tesco.

With all the radical changes, there were trends such as technology. Some of most of these technologies includes bar code scanning, club card service. All these new technologies have come to reshape the some aspects of the consumer current market.

Loyalty card can be another new technology that affected the market; the card is simply as a reward for becoming honest and loyal towards business. Retailers have must adapt to this specific change by giving loyalty card for their customers who haven’t proven any type of loyalty and perhaps it is employed to attract new buyers

The UK's first transactional barcode scanner for the iPhone is being launched by Tesco, enabling householders to scan any grocery item and add it to a home delivery order instantly. The barcode reader, which has been added to the existing Tesco Groceries app available on the iPhone, is being targeted at busy parents and time-poor professionals who want to be able to add specific items to their online shopping basket at any time rather than browsing for groceries to add to their shopping lists

Tesco's has scan-as-you-shop scanners, so you can scan your own shopping and pay at the end. They are quick and easy, and you don't have to keep unloading and reloading you’re shopping. This helps Tesco customers to do their shopping easy and fast but will cost them money to buy these technology devices so this means they will lose money but make customers happy at the same time.

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