SUPERMARKET SHARE
Tesco: 30.6%
Asda: 16.6%
Sainsbury's: 16.3%
Morrison's: 11.1%
Somerfield: 5.4%
Waitrose: 3.7%
Iceland: 1.8%
Source: TNS
The table above shows Tesco’s Supermarket Share in comparison to their competitors, as you can see their nearest competition Asda has a staggering 14% less market share than Tesco. This is a powerful display of Tesco’s current brilliant performance in outwitting their competitors.
In addition Tesco also offer halal food along with Organic, Asian and Low fat, Tesco uses these different ranges to cater for everyone and they exploit the customers’ needs. Tesco’s market research has identified these latest trends like Organic, low fat and foreign foods and Tesco have introduced more of it. Tesco also offer Fair Trade products so their customers and stakeholders can be rest assured that their product have been made fairly and employees have not been mistreated and have been paid fairly.
Tesco have also introduced a new traffic light system for all their products as part of the government new push on healthy eating. Products with a green light mean they are good and red light means bad. This has helped meet customers’ needs and helped support the government’s actions. This action also gives Tesco good publicity and supports the fact that they are a caring company. This has also helped Tesco meet their aims and objectives of increased sales and to retain loyal customers.
Non-Food
Tesco were so successful with food and drink that they reinvested their money diversifying into non-food products and introduced a massive range of new products including electrical, house wares and phone services. Tesco invested into this market as it made it more convenient for their customers and made them more likely to buy all their products from them. Tesco made sure that the quality of these products was impeccable and the prices were also very competitive ensuring maximum return from their customers. Tesco made it their aim to succeed in non food products.
Clothing…………
An example of the non-food products they offer is their clothing range, ‘Cherokee’. A concept initially adapted by competitors Asda, Tesco released their own brand and now have overpowered Asda’s range. Furthermore this range helps Tesco to appeal to a more majority market as they can now catch the attention of more youngsters and fashion conscience people instead of providing a ‘cheap’ clothing range only some people would buy.
As yet Tesco has had a brilliant return on their investment into non-food products. Recently non food sales flew up by 17% as the clothing went up by 39% as well as the home entertainment figures rocketing up by 26%. Moreover Tesco’s non-food sales also contribute hugely to the total profit as 30% of it comes from non-food sales.
Financial Services………
Tesco introduced this new service as they realized the increase in the spending power within the British public as well as the change towards a healthier economy. Within their financial services sector Tesco offer many services including Loans, Credit cards, Mortgages and Travel money as well as car, home, life, pet and travel insurance. This is a wide range of financial services for Tesco to offer however it has helped them to enter a majority market within which they saw a gap. They decided to offer the above services mainly as they are the most common and likely to give them a good return on their investment. Tesco were very successful in this area making £200 million profit, which was more than food and drink. This was mainly because there is a much higher profit margin in Financial Services and I believe this was a good and profitable move for Tesco and a step in the right direction towards meeting their aims & objectives.
Outselling Specialist Retailers……….How?
Tesco have often outsold specialist retailers on specific products, which is pretty amazing. An example of this is when Tesco amazingly outsold WHSmith on Harry Potter books. This is as customers go into Tesco o a regular basis mainly for food & a drink, an everyday product and if Tesco also have the latest high street non-food products in store at competitive prices then they are more likely to sell them. Tesco didn’t advertise products like Harry Potter books however cleverly positioned them in the right areas of stores making more and more customers pick it up. This has helped Tesco’s non-food products sales grow increasingly and helped them to outsell specialist retailers.
