According to the statistics, Sainsbury in the UK supermarket has reached more than 50% of its turnover accounted for by private label (J Sainsbury Financial Annual Report, 2013). Tesco supermarket ought to strengthen its brand image by penetrating the product development based on Ansoff Matrix theory. Table?: Ansoff Matrix A proprietary branding phenomenon that starts in limited product categories like fresh produce could expanded out to cake mixes, cookies, pet food, pharmacies, coffee shops, and even, financial services. In addition, Tesco is suggested to segment the existing self-brand product lines in vertical direction, for instance, Sainsbury divides its self-brand products on food and drinks into ‘Basic ’and ’Taste the Difference, which are targeted for diversified consumers. However, Tesco established its Tesco Finest started in ready meals and chilled foods, where the retailer has a natural advantage (these products are difficult to prepare and distribute). It was also evident that Tesco Finest was an encompassing proposition and could stretch into other categories. Therefore, Tesco needs to penetrate the competitive market and develop and segment own product lines in the face of high …show more content…
E-commerce has been initiating for quite a long time as an extensive distribution method. The competition of online business is still comparably high, however the online shop is thought to be one of the most effective way to collect internal secondary data from customers and have an insight of their purchase behaviour. Tesco could also take advantage of the direct and accurate information to build a customer buying preference networks online and analyse it with technological team. Thus online distribution channel needs to be focused to boost customer value. Promotion Based on the positioning of the Tesco in customer minds, it is suggested to arrange some budgets on customer communication systems. Tesco membership card (Clubcard) is considered both to acquire customer loyalty and to collect consuming record to detect customer habits in order to establish a reliable database. As for the promotion strategy, the integrated marketing strategy combining online and offline methods is assessed to be advisable for the development of Tesco. New media broadcasts, including Facebook, Twitter could be paid more attention. In addition, innovative activities or festival events should be coordinated with online diffusion, which is helpful to create customer value in a long term