Tesco Competitive Strategy

3. Competitive Strategy of the Company

3.1 Value Proposition

Tesco provides retail services with lowest possible price and best quality by primarily focus on analyzing the customer behavior and needs.

It believes in providing a unique one stop shopping experience to its customers by enhancing its customer database and analyzing the same. By realizing that the customers do not buy products, features and services but they need solutions to their problems, Tesco offers products encompassing various categories including food, beverage, home, clothing, Tesco Mobile and financial services. Establishing multichannel leadership and forming a seamless offer, it enables customers to shop however, wherever and whenever. Ranging from national brands

Instead, they offer many of the same brands as department stores and specialty store but deep discount based on superior purchasing power and low-cost operation.

Access Based Positioning

Access based positioning is about having different set of activities to reach customers in the best way. Tesco is multichannel retailer, offering customers range of products and services to suit their needs. Tesco’s operational stores are divided into different formats, differentiated by the size and the range of products sold.

• Tesco Extra:Tesco Extra stores are larger, mainly out-of-town hypermarkets that stock nearly all of Tesco'sproduct ranges, although some are in the heart of town centers and inner-city locations.

• Tesco Superstores:Tesco superstores are standard large supermarkets, stocking groceries and a much smaller range of non-food goods than Extra stores

• Tesco Metro:Tesco Metro stores are sized between Tesco superstores and Tesco Express stores, with stores averaging 1,000 square meters. They are mainly located in city centers beside train stations, the inner city and on the high streets of

Clicks & Bricks – Click & Collect roll out, transforming range and online presence.

Tesco loyalty Club card program

Tesco retains their customers through its Tesco loyalty Clubcard program. Tesco gives clubcards to frequent shopping customers.This loyalty card has transformed Tesco’s relationship with its customers by helping it in personalizing how it communicates with and serves it customers, providing them with offers and services which are in line an tailored with how they live their lives.

Tesco has also created a student card and a card for mothers which suites their needs like expectant mothers were given the priority of parking outside the store, even personnel assistance to help them.

Private label success

In the idea of increasing sales, Tesco started using private labels to sell the product with which they tried to give almost same quality of top brands with cheap price. Tesco labels it as "Tesco value". Items which they sold using private labels were bakery, meat, ready meals, deli, dairy, HBC, wine and non foods.

Different Store Formats

To attract more customers, Tesco has divided its stores in six formats differentiated by size and the range of products and each providing a different shopping