CASE STUDY

ON
Made by: AMAN KATHURIA (11915048)
Course Code: MKT111 (Essentials of marketing)
Faculty: Preet Kamal Bharti mam
ABOUT
 Tesco is known globally for its grocery and general merchandise retailer and its headquarter
situated in Cheshunt, United Kingdom.
 After Wal-Mart and Carrefour, it lists as third-largest retailer in the world measured by
revenues and the second-largest measured by profits (After Wal-Mart).
 Due to large expansion, it has stores in 14 countries across Asia, Europe and North America
and grocery market leader in UK (where it has a market share of around 30%).
 Its specialisation is not only lies within food and drink, it has only diversified into areas like
clothing, electronics, financial services, telecoms, home, healthcare, dental, pet insurance,
retailing, renting DVDs, CDs, music downloads, Internet Services and Software.
 Tesco also operates a grocery home-shopping service, as well as providing consumer goods,
telecommunications and financial services online.
COMPANY’S PROFILE
Category Information
Type Public Limited Company
Traded as LSE:TESCO
Industry Retailing
Founded 1920(East London)
Founder Jack Cohen
Headquarter Cheshunt, Hertfordshire, U.K.
Number of locations 5380 stores (as at Feb, 2020)
Key people David Reid (Chairman)
Philip Clarke (CEO)
Products Groceries, consumer goods, financial services,
telecom, etc.
Revenue € 60.93 billion ( 2010/11)
Operating Income € 3.81 billion (2010/11)
Net Income € 2.67 billion (2010/11)
Employees 472,000 (2010)
Website Tesco.com
LET’S SEE SOME HISTORY
 Jack Cohen founded Tesco in 1920 when he began to sell surplus groceries from a stall at Well
Street Market, Hackney, in the East End of London.
 The first Tesco store was opened in 1929 in Burnt Ook, Edgware, Middlesex
 The first self-service store opened in St Albans in 1956(which remained operational until
2010, with a period as a Tesco Metro), and the first supermarket in Maldon in 1956.
 In 1994, the company took over the supermarket chain William Low, successfully fighting off
Sainsbury's for control of the Dundee-based firm, which operated 57 stores.
 Tesco introduced a loyalty card, branded 'Clubcard', in 1995 and later an Internet shopping
service.
 In July 2001 Tesco became involved in internet grocery retailing in the USA when it obtained
a 35% stake in Grocery Works.
HISTORY CONTINUES..
 In October 2003 the company launched a UK telecoms division, comprising mobile and home
phone services, to complement its existing Internet service provider business and in June 2003
Tesco purchased the C TwoNetwork in Japan.
 In 2007, Tesco took part in a joint venture with O2 to form the Tesco Mobile mobile virtual
network operator.
JACK COHEN
Founder of Tesco
He came up with the Tesco name in 1924
after buying a shipment of tea
to start selling his first own-label
products. Cohen used the initials from
the tea supplier TE Stockwell and
combined them with 'Co' from his
surname, creating the soon-to-be famous
brand name of 'TESCo'
 PERSONS BEHIND TESCO PLC

Terry Leahy
Philip Clarke David Reid
(Former CEO)
(CEO) (Chairmen)
MISSION
STATEMENT OF
TESCO
Creating value for customers, to earn
their lifetime loyalty.
ABOUT THE VISION
 Our vision is for Tesco to be most highly valued by the customers we serve, the communities
in which we operate, our loyal and committed staff and our shareholders; to be a growth
company; a modern and innovative company and winning locally, applying our skills globally.
CORPORATE STRATEGY

 Beginning in 1997 when Terry Leahy took over as CEO, Tesco began marketing itself using
the phrase "The Tesco Way" to describe the company's core purposes, values, principles, and
goals.
 Tesco expanded domestically and internationally under Leahy's leadership, implying a shift by
the company to focus on people, both customers and employees.
 A core part of the Tesco expansion strategy has been its innovative use of technology.
INTERNET OPERATIONS OF TESCO

 Tesco operates a grocery home shopping service, as well as providing consumer goods,
telecommunications and financial services online.
 Tesco has operated on the internet since 1994 and was the first retailer in the world to offer a
robust home shopping service in 1996.
 Tesco offers an internet-based DVD rental service, which is operated by LOVE-FiLM and a
music download service.
U.K. OPERATIONS (STORES)

 Tesco's UK stores are divided into six formats, differentiated by size and the range of
products sold.
 Tesco Extra
 Tesco Superstores
 Tesco Metro
 Tesco Express
 One-stop
 Tesco Homeplus
SOME OF ITS STORES
CLUBCARDS
OTHER BUSINESSES
 Garden centres
 Banking
 Technika
 Telecoms
 Fuel
 Tech support
 Film making
 Tesco tyres
MAJOR COMPETITORS
 ASDA
 J Sainsbury
 WM Morrison Supermarkets
 Wal-Mart
 Carrefour
 Bp Plc
SWOT ANALYSIS
STRENGTH-
 Largest supermarket chain in UK.

 Strong brand name and financial power.

 Third largest retailer after Wal-Mart and Carrefour.

 International presence in 13 countries.

 Better usage of technology in marketing and distribution.

WEAKNESS-
 Increasing geographical spread makes focus on specific markets difficult.

 Lack of experience in phone and insurance markets.

 More dependency on UK market.

 High transport costs.

THREATS-
 Tough competition from giants Wal-Mart and Carrefour.
 Fluctuation in taxes may impact the Tesco financials.
 Innovation by other super markets.
 Rising raw material cost.