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Tesco. "Every little helps, the advert says. Discuss the assertion that Tesco is good for us.

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Introduction

Essay Competition Alex Gregory Q: "Every little helps", the advert says. Discuss the assertion that Tesco is good for us. A: The phrase/strap line/slogan at the end of an advertisement for any product sums up what the company wants us to think of their product. They are used for strategic selling or for catchiness and are designed to help us recognize their brand almost sub-consciously. Many people see and hear the Tesco slogan "every little helps" every day but few people actually stop to think about what it means. On the surface, it is that Tesco are often providing small discounts on frequently used products and therefore the consumers believe that they are saving small amounts of money frequently and so decrease their overall spending. The Tesco slogan is clever in that it sits very well at the end of any kind of message, whether it is one of value, quality or service. The main benefits from this go towards the individuals. This is due to the competition that the supermarkets create and so try to create better deals for their customers, and so the individuals receive better prices and better deals for the same amount of money paid. Due to the reduction in prices, consumption by the consumers increases which creates more taxes for the government and therefore the revenue ...read more.

Middle

It has also been suggested that large supermarkets destroy the local wealth in towns across the UK, which in turn creates a style of economic vacuum where the money gets taken out of the houses and ends up back with the shareholders. Tesco denied this suggestion, saying that when the company invests in local communities, they are in fact creating genuine jobs for local people and that all the profits are spent in local shops and on local services. Tesco is also soon to be facing a double blow from proposals put forward by the Conservative Party with the intent of disrupting the planning system. This new proposal states that the Tories will be introducing a new competition test which will make it compulsory for developers to prove that there is a demand for their product in the market (this test was scrapped by the Labor Government at the end of last year). This new test will help to raise the barriers of entry into a market where it is already becoming increasingly difficult for Tesco to expand. Due to the fact that Tesco has over 2,300 stores across the UK, they have campaigned fiercely against the competition test and have hoped that the Tories would scrap their idea. ...read more.

Conclusion

This means consumers gain less of a reward for the goods the buy, i.e. they can consume less with their disposable income than they did previously. This would have a knock on effect on the Government's tax revenue. This is because, if consumers want to continue with their average consumption of necessities, their luxury consumption would have to be decreased, which would often include either alcohol or cigarettes. This causes a decrease in tax revenue. This would be a harsh result, as the Government is already on a tight budget, a decrease could have a large opportunity cost. In conclusion, I don't think that it can be easily classified as to whether Tesco is "good" or "bad" for us. In some ways it is good, the firms and consumers benefit from a healthy amount of competition within the market, resulting in better deals for the consumers. However, the high amount of competition reduces the prices of the goods that we buy, meaning that this money comes out of the amount of money that Tesco is giving to its suppliers. Overall, farmers come off the worst in the increasing struggle for power within the market. However, steps are being made to increase farmers' rights and I personally feel that this is the right thing to do as without the farmers, we would not have many of the products in the first place. ...read more.

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