Marketing Essay Example | Topics and Well Written Essays - 3250 words

Marketing - Essay Example ations and it has been suggested that they should enter this market using the joint venture route with a local partner and leverage their capabilities by organizing a good supply chain. Tesco is the largest retail chain in the UK with over 11% share of the market and still growing. It is by far the most successful, most resourceful and most profitable of them all. It 2006 sales, worldwide were  £ 40 billion with profits of  £ 1.8 billion. Of this turnover 75% was generated in the UK and the rest overseas. The UK market is reaching saturation as well as referrals to the Competition Commission may see it slowing expansion or even curtailing some operations in the UK. This gives it the impetus for overseas growth. It is already planning to open up a 100 stores in the US in 2007 but Asia Pacific and especially India holds a great charm due to the huge potential in that region. Tesco covers food, clothing, home-use products and electronics. It keeps expanding its product range and it has a penchant for introducing new sales and channel formats. It is already deep into hypermarkets, supermarkets, convenience stores and petrol retailing. It is less into product innovations but more into retail innovations that has seen it entering into high level Personal Finance, Telecoms, on-line service Tesco.com and most recently the Tesco Direct catalogue. (Euromonitor International). The company presently offers the customers a varied choice of both branded and private label products. It offers amazing discounts to its customers and 1999 was a landmark year where it invested  £ 380 millions bringing about price reductions across five separate campaigns. As a result prices were reduced for thousands of products by about 10%. Besides, over 200 stores operated 24x7 to offer its Club card holding customers fantastic deals. The company’s mission statement states that it endeavors to continuously create value for customer for earning lifetime loyalty. To this end its offers value