Brand trust and prominence
Tesco not only has a strong brand but also a ‘trusted' brand. Various brand tracking studies conducted by (Okumura, 2009) revealed that Tesco is well positioned to gain from the financial crisis. People trusted Tesco more than any other financial service providers which mean Tesco's brand extension into mortgages and loans can prove successful. Tesco's brand is also associated with quality, value and good shopping experience.
There are industries that have always understood that they were selling brands before the product. Tesco is a brand and also serves as the core strategic advantage. The company was spreading like wildfire changing the generic into the brand-specific, largely through carefully branded packaging and the promotion of an “every penny counts” environment. The company has a powerful corporate identity and brand image, and is associated with good quality, trustworthy goods that represent excellent value.
Tesco's online retail store Tesco.com is the fourth largest online grocery store in the world behind Amazon, Dell and Argos (Datamonitor Report, 2009). Online store and its delivery service attract customers which are geographically inaccessible for retail stores. It also targets ‘time-poor' consumers who prefer to have their grocery delivered at their doorstep. Tesco.com complements Tesco's strategy very well and delivers the same customer experience.
Relainance on uk and European markets
While Tesco is one of the most successful and well known brands in the UK and European markets, it is yet to make a significant impact on the Asian and US markets. In FY2008, it derived 73.7% of its total revenues from the UK, 14.5% from the rest of Europe and 11.7% from Asia (Datamonitor Report, 2009). Walmart, on the other hand, has got a much more wide profit distribution and draws 24.2% of its revenues from its international operations. With UK and Europe being considered a mature and saturated market,...