Marketing in practice
Market opportunity for Tesco.
Tesco is an established retailer selling both food and non-food items. As can be seen from research Tesco clothing brands are the fastest growing in the UK. Sir Terry Leahy believes the skies the limit in terms of growth. He said: "Clothing has more than doubled in three years. It's a very profitable part of our business, but within the mass of Tesco it's only low single digits as a percentage of turnover. The non-food market is as big as the food market and so we see a really good opportunity to grow there."(Reference) In Feb 2004 Tesco's clothing Sales were estimated to account for about 2 per cent of its total sales, leaving much room for growth and improvement.
Tesco's clothing brands are the fastest growing in the UK, the days when supermarket brands were the cheap alternatives to High St brands seem to be over, Tesco now have an opportunity to build on their success.
Leading supermarkets have expanded their product ranges and now offer a high quality and diverse range of own brand clothing and are gaining increasing credibility. I believe there is considerable scope in this ever-growing market for Tesco to launch a new brand specialising in low priced but 'cutting edge' evening wear. Tesco has a wide variety of customers and knows a lot about them they can use this information to diversify there product offering switching from the" One product suits all" ethos, differentiating themselves from other supermarkets.
For Tesco to be successful in launching its new clothing range appropriate objective must be set. A simple acronym used to set appropriate objectives Smart.
The primary objective will not be to increase Tesco customer...