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PREPARATORY EXAM
BUSINESS STRATEGY

The strategies of Tesco, Asda, Sainsbury, Marks and Spencer, Argos, Next, Boots, Morrison, Waitrose, are explained below:

Market share

As of February 2007, Tesco had 31.4% of the UK grocery market while Asda's share is 16.8%, followed by Sainsbury's at 16.5%, and Morrisons at 11.0%.[11]

According to CACI, as of 2006, Asda has market dominance in 14 postcode areas; DY (Dudley), B (Birmingham), CH (Chester), L (Liverpool), WN (Wigan), BL (Bolton), BB (Blackburn), LA (Lancaster), HU (Hull), SR (Sunderland), DH (Durham), NE (Newcastle upon Tyne), G (Glasgow) and AB (Aberdeen).[12]

Asda's dominance in Kingston upon Hull is particularly notciable. There are four branches in Hull, (in Bransholme, Hessle, Preston and Central Hull) all of which are particularly large. In comparison there are only two Morrisons, one branch of Tesco, one Co-op and no Sainsburys.

Supermarket Consumer
Spend (000s)
Market Share
20 April 2008
Change
Tesco 6,336,887 31.1% 0.3%
Asda 3,444,410 16.9% 0.1%
Sainsbury's 3,265,244 16.0% 0.4%
Morrison's 2,317,304 11.4% 0.3%

TESCO
 

Tesco plc is a British-based international grocery and general merchandising retail chain. It has the largest British retailer by both global sales and domestic market share with profits exceeding 2 billion. In 2008, Tesco became the world's fourth largest retailer, the first movement among the top five since 2003.[2] Originally specialising in food and drink, it has diversified into areas such as clothing, consumer electronics, consumer financial services, retailing and renting DVDs,[3] CDs, music downloads, Internet service, consumer telecoms, consumer health insurance, consumer dental plans and software.

Corporate strategy

According to Citigroup retail analyst David McCarthy, "[Tesco has] pulled off a trick that I'm not aware of any other retailer achieving. That is to appeal to all segments of the market".[28] One plank of this strategy has been Tesco's use of its own-brand products, including the upmarket "Finest", mid-range Tesco brand and low-price "Value" encompassing several product categories such as food, beverage, home, clothing, Tesco Mobile and financial services.

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[29] This phrase became the standard marketing speak for Tesco as it expanded domestically and internationally under Leahy's leadership, implying a shift by the company to focus on people, both customers and employees[30].

In order to protect its brand image, and given its expansion plans in Thailand, Tesco has recently been employing a policy of launching defamation proceedings. In November 2007, Tesco sued a Thai academic and a former minister for civil libel and criminal defamation. Tesco is claiming that the two pay 1.6m and 16.4m plus two years' imprisonment respectively. They have been alleged to have misstated that Tesco's Thai market amounts to 37% of its global revenues, amongst criticism of Tesco's propensity to put small retailers out of business.[31]

Tesco's main advertising slogan is "Every little helps". Its advertisements in print and on television mainly consist of product shots (or an appropriate image, such as a car when advertising petrol) against a white background, with a price or appropriate text, e.g. "Tesco Value", superimposed on a red circle. On television, voiceovers are provided by recognisable actors and presenters, such as James Nesbitt, Jane Horrocks, Terry Wogan, Ray Winstone, Neil Morrissey, Martin Clunes, David Jason and Kathy Burke among others.

To read more about Tesco supermarket, visit: http://en.wikipedia.org/wiki/Tesco
 
 

ASDA Strategy

ASDA is a chain of supermarkets in the United Kingdom offering food, clothing and general merchandise products. It became a subsidiary of the American retail giant Wal-Mart in 1999,[1] and is currently the second largest chain in the UK after Tesco, having overtaken Sainsbury's in 2003. It is thought that Asda are currently at the proposal stage of expanding into the Republic of Ireland.

ASDA is Wal-Mart's largest non-U.S. subsidiary, accounting for almost half of the company's international sales. As of January 2006, there were 21 Asda/Wal-Mart Supercentres, 243 Asda superstores, 37 Asda supermarkets (including town centres), 5 Asda Living stores, 10 George clothing stores and 24 depots (distribution centres) - 340 in total. Asda has 150,000 employees, who it refers to as "colleagues" (90,000 part-time, 60,000 full-time). The company is also engaged in property development through its subsidiary company, Gazeley Properties Limited.

As a wholly owned division of Wal-Mart, Asda is not required to declare quarterly or half-yearly earnings. It submits full accounts to Companies House each October.

Unlike other major British Supermarkets, Asda's marketing promotions have been based usually solely on price, with Asda now advertising itself under the slogan Britain's Lowest Priced Supermarket, 11 Years Running.

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