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

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 the climate change and they are trying to fight it by taking acting action against it such as reducing their carbon emission by 2020 as they said in their own words.

Tesco has a plan called ‘F Plan’ that signifies their strategy for reducing emissions. In 2014 they have made a 7.8% reduction in carbon emission to our air and they are now aiming for a reduction of 25% in carbon emission and air pollution by the end of the year 2020.

The implication of this change for the retailer is that by taking actions to reduce carbon emissions and help the environment, Tesco is building a good reputation for their name. Because of the good reputation they will gain for their act on this environmental issue, it will be easy for Tesco to attract customers because everyone will appreciate a business that helps fight environmental issues like the global warming. This increase in the amount of customer they have will help boost their sales and profits in return.

How Customer expectations in the consumer market impacted Tesco

Radical changes have had enormous changes on the consumers market especially though the last couple of decades. For example the way customers shop nowadays is really different compared to the way people used to shop years ago and this is due to huge development and changes that the consumer market has undergone. These days we have supermarkets and multi stores who sell almost every kind of food from many different countries around the world compared to years ago where we could only a certain type of food with a limited variety

Customer expectance has also led Tesco to reduce the prices of more than 3,000 products that are essential to customers in their everyday lives. The products include milk, bread, fruit and vegetables.

With Lidl and Aldi gaining more shoppers, – Tesco’s had no option but to lower their prices  in order to avoid losing more than half of their customers who will shift to other retailers like Aldi and Lidl for their shopping.

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The implication of this change Tesco had to make in order to satisfy customers Demand is that they will lose profits by lowering the prices of 3,000 products. On the other hand, doing that will help them fight back the competition and gain territory against their competitors.

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

For example in some areas, shops and stores stay open till really late in the night. This happens because of the customers in that particular area who shop a lot at later hours in the day or in the night. This ...

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