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Tescos Market Strategy Essay Example

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Tescos Market Strategy

Tescos Market Strategy. Tesco with its ‘Pile it high and sell it cheap’ motto, was able to strengthen its market position considerably. The aggressive market strategy, based on acquisition, further took the total number of stores to more than 600 in the 1960s and thanks to Cohen, the largest supermarket of Europe came into being in 1961 in Leicester. The 1970s and 1980s saw the rapid decline of Tesco primarily because of the low-quality product. But under the dynamic leadership of Lord MacLaurin, Tesco underwent tremendous change. His business acumen was so sharp that he had realized early that introducing technology and building committed customer base would accelerate the growth of Tesco manifold. He introduced technology in the two main areas of sales and distribution and at the same time, made special efforts to attract the upper class by opening superstores with high-end products.

MacLaurin made many changes in the basic format of the store by not only introducing a whole lot of new products lines including non food items, clothes, home appliances, electronic goods etc. but stores in new formats like Tesco superstore, Tesco Metro, Tesco Express, Tesco Extra were also opened to meet all segment of the society. Tesco superstores were characterized by huge space and were designed to attract customers of all strata. It was followed by an intensive drive to make committed customers as members through club card so that they could offer their customer extra benefits. This particular drive also helped them to analyze and identify the changing trends of the customer requirements which were used to gain leverage against their rivals. During 1996-97 Tesco became the first store in Europe to offer online delivery and took home delivery orders by phone, fax, and internet. Technology thus became an integral part of Tesco strategy that was vigorously followed by later CEOs of Tesco. By 2001 Tesco had become one of three leading online stores with more than 50% grocery online sale in UK and today it has around 7,50,000 registered users and processes 70,000 orders a week. Tescos Market Strategy.


Case Study of Tesco.

Baron, David E. Integrated Strategy: Market and Non Market components. California Management Review. Vol.37 N. 2, 1995.

Porter, Michael, E.(June 1, 1980). Competitive Strategy: Techniques for analyzing industries and competitors. NY: Free Press 1998.

Smith P.R., Chaffey D. (2002) E-Marketing Excellence. The Heart of e-Business (pp.35-78). Elsevier Butterworth Heinemann.

Tesco Revenue Statement. Available from: <http://www.tescoplc.com/plc/ir/financials/fiveyearsummary/> [Accessed 18 December 2008].

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preview essay on Tescos Market Strategy
  • Pages: 6 (1500 words)
  • Document Type: Essay
  • Subject: Business
  • Level: Masters
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