Tesco and marks & Spencer case study
Tesco and marks & Spencer
Introduction
In this assessment I will be looking at Tesco and marks & Spencer I will be describing their activities, products and services and how they have changed I will also be looking at the following things
* the different formats locations of the retail outlets
* number of employees that work in these two industries
* sales area
* number of enterprises
* Their turnover and product strategies
Tesco
Tesco was founded in 1919 in east London by Jack Cohen, Its main headquarters is in Delamere Road, Cheshunt in England
Tesco is UKs largest British retailer by both worldwide sales and domestic markers shares. Tesco employees 360,000 staffs making it the UK's biggest private sector employer.
Tesco has just had build a new Tesco express in Hounslow which they want to make profits.
Tesco sells the following products and services to its customers:
* Clothing
* Consumer electronics
* Financial services such as credit cards, personal loans
* Telecoms such as home line and moblile line
* Insurance ( Home, pet, travel, life, motor
* Dental plans,
* Retailing and renting DVDs, CDs, music downloads
* Internet services and software.
Tesco offers six product brands to its customers which are (strategies of selling):
. Tesco finest -competing with marks and Spencer product and groceries
2. Tesco organic- which is aimed at upmarket shoppers
3. Tesco- which is the same quality as national brand
4. Tesco value - competing with Lidl products and it's for people who are on budget.
5. Tesco healthy living- less sugar and salt on these types of groceries
6. Tesco kids- aimed at kids and also has minimum artificial ingredient.
Different types of Tesco store
Tesco extra
This type of store is the largest store it is larger than any store that Tesco has it offers everything that Tesco has to offer for its customers, its purpose is to shop for anything that customer's desire; this type of store is mainly located outside town it has only 1 floor, its total square meter is 13,433,000. The opening times for this store is 24 hours day from Monday to Saturday and on Sunday its opened 1100 to 1700.
This type of store sells foods from these following countries
* Asian food
* Afro carbbien
* Polish
* Greek
* World foods
A Tesco extra store also sells halah foods which attracts Muslim customers, Tesco extra stores offers the following facilities which are :
* Tesco direct ( a service which Tesco offers, they sell electronic goods, sofas, they sell majority's of the products that Argos sells ,they are competing with Argos and little woods)
* Opticians ( this is a service where Tesco customers can get their eye test and also purchase designer glasses)
* Café ( , this is a mini restaurant where customers can buy a coffee, tea and also sandwiches while in move of shopping)
* Pharmacy ( this is a service where it is offered in Tesco extra , this means that while customers are shopping they can also get the prescription and get in medication they require)
* Cash machines ( this service is for customers that want to take cash out of the ...
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* Opticians ( this is a service where Tesco customers can get their eye test and also purchase designer glasses)
* Café ( , this is a mini restaurant where customers can buy a coffee, tea and also sandwiches while in move of shopping)
* Pharmacy ( this is a service where it is offered in Tesco extra , this means that while customers are shopping they can also get the prescription and get in medication they require)
* Cash machines ( this service is for customers that want to take cash out of the machines )
* Petrol station (there is a Tesco petrol station next to every Tesco extra superstore, this is to offer the service that when customers finish their shopping they can fill up the car so that they can travel to their destination.
* Disabled access (this is a service that is offered to disabled customers, they offer the service such as parking space, ramps to access the store.
* Recycling ( this services is offered to Tesco's customers, they have the chance of recycling products such as , shoes, cloths, plastic, cardboards and newspapers.
* Travel money (this is a service that is offered to customers which allows them to exchange currency from different countries to UK money.
* Car wash ( Tesco has staffs working in the car park which assist customers if they want their car washed which is part of offering customer service .
Tesco superstore
Tesco superstores are the second largest stores that Tesco has, its main purpose is for one stop weekly shop, it mainly stocks groceries and a few non food products. Its total square meter is 12,622,000 .
This type of store is not opened 24 hours a day as the Tesco extra is , they are opened from 0830 to 2100 on Monday to Saturday and on Sunday its opened . This type of stores does not sell foods from different countries like Asian food and polish foods.
Tesco superstore does not offer as much facilities as Tesco extra does, here are the following facilities that Tesco superstores offers:
* Café ( this service is offered to customers that are shopping at Tesco they have the opportunities of getting a ,tea, coffee or a full English breakfast)
* Pharmacy ( there is also a pharmacy inside the Tesco superstores where customers can get their prescription and also get any medication they require
* Recycling ( this service is also offered in Tesco superstores where customers can recycle the following products: clothes, plastic, glass, shoes, cardboards, newspapers andcatalogues
* Cash machines ( this service is for customers that want to take cash out of the machines )
* Disabled facilities ( Tesco superstores offers many facilities for disabled customers such as :
* Ramps so that they can access the store
* Automatic doors
* Facilities are available for people who are visually impaired. Which Including, audio tapes, Large print and braille
* facilities for people with hearing impairments
* induction loop has been installed in the stores
Tesco metro
These types of stores are mainly located in city centers and high streets they are aimed at workers, high street shoppers and local residents, the main purpose of these stores are for people who just want to by few groceries
Its total square meter is 2,025,00.
The opening times for these stores are 0700 to 2200 from Monday to Saturday and on Sunday from 1000 to 1600, this type of store also sells foods from different types of country's such as they sell :
* Asian foods
* polish foods
* halah foods
* world foods
These types of stores don't have that many facilities, the following facilities they offer are:
* Cash machines ( this service is for customers that want to take cash out of the machines )
* Disabled access( this service is for disabled customers that want to access the store
Tesco express
These types of stores are mainly found with petrol stations they mainly sell food and every day products, its main purpose is for customers that want to buy snacks at every day products. Its total square meter is 2,125,000. This type of store is opened from 0600 to 2300 from Monday to Sunday; these types of stores don't sell foods from different types of countries. Here are the following facilities that these types of stores offer :
* Cash machines ( this service is for customers that want to take cash out of the machines )
* Disabled access( this service is for disabled customers that want to access the store
Click Retailing
Tesco.com was launched in 1999 which became the largest online grocery retailer in the world. Tesco is the second largest e-tailer after Amazon. Tesco.com sells all sorts of things from groceries to cloths and customer electronics. By Tesco having a online website where customers can purchase goods this allows Tesco to expand its business and also attracts a lot of customers which means more sales.
Also by Tesco selling products and groceries online they will be offering good customer service which means that customers can order from the comfort of the home.
Internet sales Average sales
As you can see from these two graphs in 2004 Tesco have sold 577 million pound online while in their stores they have sold 12,000 million pound one of the reason that Tesco did not make enough revenue on the net is that not many people know how to order online or they are not confidence on ordering online.
Tesco Store facts
Format
Total
area (m²)
Total
area (sq ft)
Mean
area (m²)
Mean
area (sq ft)
Percentage
of space
+/- Stores
2008/9
Tesco Extra
,172,622
2,622,000
6,625
71,310
40.35%
? 11
Tesco
,247,967
3,433,000
2,786
29,984
42.94%
? 13
Tesco Metro
88,129
2,025,000
,081
1,638
6.47%
? 10
Tesco Express
97,419
2,125,000
205
2,211
6.79%
? 125
Total
2,906,471
30,877,000
,309
4,087
00%
? 167
Table from: http://en.wikipedia.org/wiki/Tesco
As you can see from this graph there are more Tesco express stores being build then Tesco extra the reason being is that you normally find Tesco extra stores only near highways while now days every town centre and local neighbourhoods have Tesco express stores , the reason being is that Tesco express stores are small so they are able to be build on shopping centres and in towns while Tesco extra stores are very huge and require a lot of land so for this reason there are more Tesco express then Tesco extra
Marks and Spencer
Marks and Spencer was founded in the year 1884 by Michael Marks and
Thomas Spencer in Leeds, West Yorkshire, its main headquarters is in London.
Marks & Spencer is one of the best-known British retailers. As well as being an upmarket food retailer. It is also one of the largest clothing retailer in the United Kingdom. It employees 65,000 staffs across UK with over 600 retail shops across UK. It also retail shops across the globe. Marks and Spencer's revenue is 9,062.1 million (2009) with a net income of 506.8 million (2009)
Marks and Spencer has its largest store in Oxford Street which has around 16,000 square meters (170,000 sq ft) of shop floor. Just recently Marks and Spence has opened a new store in Westfield London which is 103,000 sq ft with the new store customers are able to buy the same products that M&S and some new products that are only for the new store
Marks and Spencer offers the following products to its customers which are:
* Men's wear
* Women's wear
* Home ware
* Food and dink
* Cosmetics and Perfumes
* Technology
Marks and Spencer offers 5 different types of stores which are :
Core stores
These types of stores are small which sell a selection of clothing as well as M&S food but they don't sell any Classic Collection cloths. These types of stores sell designer clothes which attracts young adults, these types of stores are located in cities and shopping centres. There are opening hours for these stores are
Hospitality
These types of stores are stores which a cafe offering coffees and teas (all pastries, toasted sandwiches, soups and cake. There are also some hospitality stores which sell (traditional home cooking & lunches) and also hot food to go such as burgers, chips and soups. Many large stores, such as Westfield, White City, Cribbs Causeway and Newcastle offer hospitality outlets. Also in these stores they sell The opening times for these stores are from 10:00 - 21:00 on Monday to Friday and on Saturday it's opened from 09:00 - 20:00 while on Sunday its opened from 12:00 - 18:00
Simply food
These sort of stores are designed to sell a wide variety of food they sell a small selection of general merchandise but they don't sell any sort of cloths. The opening times for these stores are 0800 to 2200 from Monday to Saturday and on Sunday it's opened from 0900 to 2000. These types of stores are located in towns and shopping centres
Home stores
These stores were build on 2007 they a wide variety of home merchandise they don't sell any sort of M&S food, they sell products such as sofas, tables, plasma televisions , Cabinet Furniture, Beds & Mattresses, Cookware Home Accessories, Household Electricals and so on. Also these stores are located in big shopping centres. The opening hours for these stores are from 09:00 - 20:00 on Monday to Saturday and on Sunday from 11:00 - 17:00.
Outlet stores
There are only 39 outlet stores in the UK , these stores offer M&S products with the majority of them discounting at least 30% from the original selling price. They sell all sort of products such as cloths, house ware, electronic goods and foods.
Many of the Outlet stores are in locations such as retail parks and outlet centres.
The opening hours for this store are 0830 to 0530 from Monday to Saturday and on Sundays it's opened on 24 hours.
Reference
http://en.wikipedia.org/wiki/Marks_&_Spencer
http://www.marksandspencer.com/
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