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Tesco Case: Examining The Marketing Management And United States Market

905 words - 4 pages

Tesco Case: Examining the Marketing Management and United States Market
BUS 620: Managerial Marketing
Dr. Paula Zobisch
January 20, 2013

Tesco Case: Examining the Marketing Management and United States Market
Tesco need to focus on their customer loyalty and retention in their marketing strategy to bring up their sales in the United Kingdom (U.K.). The company dipped into the United States market, but came up short. It is time for the business to look at their largest market the U.K., and start asking the questions to realign their marketing management in their supermarkets.
In successful businesses, understanding your customer and making changes to accommodate the feedback can ...view middle of the document...

The knowledge from existing customers will help with the quantity and assortments of products that Tesco should have in stock.
Tesco started a brand of supermarkets in the U.S. called Fresh & Easy, but consistently lost money since its launch in 2007 ("Supermarket sweep; tesco's," 2012). This chain of supermarkets opens mainly in California and in this market; it did not show as successful. In the Wall Street Journal London, December 5th 2012 article describes how Tesco’s American stores struggles from the beginning. Tesco needed 300 stores with sales of $20 per square foot a week to break even, but at the last count, its 200 stores were making just over $10 per square foot (Schultes, 2012).
The strategy of the Fresh & Easy supermarket was to provide pre-packaged produce and their own-label products. The concept for the store was not a good fit for the U.S. market, since the cultures and lifestyles are very different then in the U.K. For instance, U.S. consumers like to be able to pick up and touch their fruit and vegetables when selecting their products (Felsted, 2012). The refrigerators are generally much larger in the U.S., so the consumer will buy large quantities to freeze and keep, which does not bode well for only self-service checkouts and low quantity of frozen goods. The premise for the store failed to resonate with shoppers in the U.S., and the long-term strategy for Tesco is not to continue to pursue or expand the stores. “There is an inherent assumption that America is very like Britain, with a slightly different accent,” says Allyson Stewart-Allen, head of consultant International Marketing Partners (Felsted, 2012). Tesco’s failing stores show otherwise.
In conclusion, Tesco should focus on their primary market in...

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