Case Study Tesco Business Essay

Case Study Tesco Business Essay In UK one of the fast growing business sectors is retail industry. Retail market is set to increase by 15% over the next five years, taking its value to just over  £312bn (UK retail futures 2011: sector summary, data monitor). Retailing consists of sales goods to the consumer from a fixed location. Where, the consumer can buy the product what their needs. Retailing may include subordinated services, such as delivery. This makes the consumer life easy. They are close to the customer. Today people are busy, they don’t have too much time for buy the convenience goods searching different place for the different product. They want everything in the same place. Which will save their time and makes life easy. Now a day, every retailer is a Brand by their own name. Consumer fells proud to be a consumer of a particular retailer. Every retailer has the different marketing policy with the different segments of market. Every time they are bringing something new to the customer to attra ct with their brand or to be a proud consumer with the brand. In UK there are many retail shops, like – Sainsbury’s, ASDA, ALDI, Co-operative, Summerfield, Tesco etc. Among them here we will look at Tesco. TESCO Plc: Tesco Plc, is one of the leading retailer in UK market. It’s a British international grocery and general merchandising retail chain. Now, Tesco is the UK’s largest retail market chain. UK’s largest supermarket chain Tesco plc is operating their business with the different countries of Europe, USA and Asia. In 1919 Jack Cohen bought a shipment of tea from T.E. Stockwell and used those initials and added the first two letters of his own name, the brand TESCO. According to the data of Feb’10, Tesco has 4811 stores in different location with 440,000 employees. Which revenue was  £62.54bn (Feb’2010). Tesco has six different categories of store. Which are differentiated by size and range of product sold. Tesco extra Tesco sup erstore Tesco metro Tesco express One stop Tesco Home plus According to TNS Worldpanel, Tesco’s share of the UK grocery market in the 12 weeks to 27 December 2009 was 30.5%, up 0.1% on 12 weeks to 27 December 2008 largely in line with the increase of the other four largest supermarkets. Supermarket Market Share December 2009 +/- from December 2008 Tesco 30.5% à ¢- ²Ã‚  0.1% Asda 16.9% à ¢- ²Ã‚  0.1% Sainsbury’s 16.3% à ¢- ²Ã‚  0.2% Morrisons 12.3% à ¢- ²Ã‚  0.5% Club Card – Innovation Introducing Clubcard – the loyalty card is the great innovation for Tesco. In 1995, Tesco launched the Clubcard which is operated by Dunnhummby Limited, a private company now majority owned by Tesco. After two slight amendment to the design it was re-launched in 2005. But in 2007, it becomes most popular. Customer can get 1 clubcard point by spending  £1 around thousands of product range. When customer shopping at Tesco, customer can also get double point on sp ecial offers. For every 100 clubcard point customer will  £1 voucher. When tesco offers for double clubcard point the number of card holder increased by 1million in 2009/10 market year. Tesco have recently launched both Iphone and BlackBerry application to collect the clubcard point.