1. TASK 1 Other than its core business of grocerry retailor, Tesco diversified its business portfolio by operating in other areas like: Distribution: As practiced by other large retailers, Tesco drags goods from suppliers into its regional distribution centers, for further processing & packaging and onward delivery to stores. Tesco is extending its logistics to get goods directly from suppliers (factory gate pricing), in a strategic move to reduce costs and improve reliability by use of latest technology. Garden Centers: In 2007 Tesco bought shares of 53.1% in ‘Dobbies Garden Center’ with a worth of £155.6 million. In 2008 Tesco decided to acquire rest of the shares of ‘Dobbies Garden Center’ to completely takeover the business. Dobbies continue to trade under its own brand, from its own head office. 2. TASK 2 With the slogan “Every little helps” Tesco, even in the times of extreme recession of world over economies has announced handsome profits for their financial year 2009-10. CEO of Tesco in his one of current press statement said on Tuesday that there were growing signs of a pick-up in consumer confidence across the world. Originally specializing in food, it has diversified into areas such as clothes, consumer electronics, consumer financial services, selling and renting DVDs, compact discs and music download, internet service, consumer telecoms and most recently budget software. Target Market: An “inclusive offer”. This phrase is used by Tesco to appeal to all classes of society. This trick ‘to market all classes of society’ works for Tesco very well. Other competitors like ASDA’s marketing strategy is focused mainly on value for money, which portray its marketing image of being upscale customer’s market, though it actually sells a wide range of upscale products. Alike, Sainsbury’s retained an image as a high-priced bourgeois supermarket. Sainsbury considered itself to have such a wide range on quality that it did not need to compete on price, and was impartial to attracting lower-income customers into its stores.
