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.

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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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