How Tesco Can Reposition Themselves For The Discount Chains

1729 Words7 Pages
How Tesco?s can reposition themselves to fight the discount chains

Name: Jiaqi Yang
Student Number:26509121
Major: Advertising Design Management
Date:28/10/2015
Word Count: 1407
Contents

Section 1: Introduction????????????3

Section 2:
Key Issues and Theories??????.4

Section 3:
Conceptual Model Diagram?????.8

Section 4:
Research Questions????????.9

Reference list???????????????..11

Further Resource list????????????.13

How Tesco?s can reposition themselves to fight the discount chains

Section 1: Introduction
The brand of Tesco could be found in the year of 1919. Over the years, the business of Tesco experienced a significant improvement, which made them could be recognized as one of the largest retailers in the U.K
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Because of this reason, with the competition of discount chains which include Aldi?s, Lidl?s, and other retailers, Tesco may need to considered the repositioning of their business strategy to deal with the problems of the decrease of their sales and their market share. Therefore, this research would try to identify the reason of the decrease of Tesco?s sales and market share and provide some suggestions to help Tesco to reposition themselves to fight the discount chains.

Section 2: Key issues and theories

In the year of 2014, there was a great growth of the retail industry in U.K, which increase 4.3% of the quantity bought in this industry (Office for National Statistics, 2014). However, with the development of some discount chains in the U.K marketplace, the business of Tesco definitely has faced some challenge. Especially, Aldi?s and Lidl?s could be considered as two examples that have a great growth of their market share through their low-price marketing strategy.

According to The Guardian (2014), the market shares of Tesco and two discount chains which include Aldi?s and Lidl?s in U.K marketplace, and their changes could be illustrated as the bar-chart below:

As this chart shows, the market share of Tesco dropped sharply from 30.5% to 29%, whereas the significant increase of market shares of both Aldi?s and Lidl?s could be found (1.2% growth of Aldi?s and 0.6% growth of Lidl?s) (The Guardian, 2014). Because
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