An investigation of Tesco(TM)s retail market strategy as market leader

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An investigation of Tesco’s retail market strategy as market leader


Retailing is one of the fastest growing industries in the international market as everything is going global whether it is services or goods .It is a highly developed international business, especially in the developed countries. Now  days the competiton between the retail giants at their utmost level with their unique strategies .Different retail companies are using the different marketing strategies to beat each other and play the game of cat and mouse between each other.

The UK food and grocery  market was worth £128.2 billion  at the start of 2007, an increase of 4.0 percent compared to the year 2006,( retail market of United Kingdom is very competitive and the major players in the super market chains Tesco,Sainsbury,Sade, Safeway,Iceland and Morrison’s etc.initially they concentrated on the food products but gradually they diversified into non foods products like cloths ,electronics and medicines .

The growth in this sector has been surprising given that the United Kingdom population has been almost static and the total number of calories consumed per person is actually fallen during this period.

United Kingdom grocery market accounts for 12.5% of all houses hold spending making it the third largest expenditure after housing and transport in the world..In the year 1990s Tesco faced strong competition and needed a new strategy because they are good in buying and selling but they forget about the customers a simple question “what are we doing wrong” and after that they fully concern about there customers and started growing as a international retailer.

In last ten years Tesco changed from being the number three supermarket in United Kingdom, so it is perfectly fair to identify why they are successful and what they are successful and what they are doing to achieve that success.

From last seven  years competition increased extremely mostly in london on every high street , there is war between retailers and brands to attain domination over the market .

According to research it is found that in five years the competition in retail industries will be more vivid which effect whole United Kingdom .

Recently retail giants are taking this competition globally to rule over the market , it is to be assumed that there are some factors which increase the conflict in retail industries all over the United Kingdom ,they are

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  1. Change in marketing technique in retail industries are enormous ,every second day of any successful products copy are available in the market. The physical existence of the shop are also very important due to the lack of shopping  time in customers traditional shopping process is disappeared  shoppers are converted into mobile shoppers they do their shopping while travelling  .hence it is very important for the retailers to choose their store location .
  2. Strength of the four major retail giants are almost similar only the difference is in their  strategies and techniques , so there is no chance of ...

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