Own Brand Marketing Strategy Zuzana Hradcova

Project Objectives Find out If and How are TESCO own brands seen by our customers Knowledge of TESCO own brands Understanding of TESCO own brands Luxury range acceptance Communication channels Expected range Propose a marketing strategy for own brands development Current TESCO own brands development TESCO Premium Brand implementation strategy Find out If and How are TESCO own brands seen by our customers Knowledge of TESCO own brands Understanding of TESCO own brands Luxury range acceptance Communication channels Expected range Propose a marketing strategy for own brands development Current TESCO own brands development TESCO Premium Brand implementation strategy

TESCO own brands overview TESCO Value TESCO Standard TESCO Premium (Black & Gold) TESCO Value TESCO Standard TESCO Premium (Black & Gold) Value for money - Cheapest product in the range Standard product – brand quality for less money Premium range – extra quality product, specially selected Value for money - Cheapest product in the range Standard product – brand quality for less money Premium range – extra quality product, specially selected

Methodology used Marketing strategy developed based on: Combination of qualitative and quantitative research Analysis of competition SWOT analysis Market segmentation Differentiated targeting Marketing strategy developed based on: Combination of qualitative and quantitative research Analysis of competition SWOT analysis Market segmentation Differentiated targeting

Quantitative research 3 HMs + 2 DSs (CR) & 3 HMs +1 DS (SR) In–store; questioners 20 minutes, 100 questioners/store Knowledge of Own Brands, communication channels, luxury range acceptance Qualitative research The same stores Focus groups TESCO customers Discussion format minutes Attributes of individual Brands and their image, communication, range suitable for TESCO Premium

Analysis of competition Price Levellowermediumhigher TESCO TESCO Výhodný nákup TESCOTESCO Premium AHOLD Koruna Albert, Hypernova Makro ARO Billa Clever Delvita Levně Jednota (Slovensko) Jednota Julius Meinl MinceJulius Meinl Interspar Spar

SWOT analysis – TESCO Value Strength One of the best known own brands in the CR/SR Customers know what to expect (value for money ratio) Regularly purchased Good design – easy to find Weaknesses Design can be associated with poor quality Some low quality products are decreasing image of the brand Opportunities Remove products most criticized from the range (or improve their quality) Offer different product sizes Threats Low or unstable quality products can prevent customer to buy TESCO Vyhodny nakup products Change of design can confuse current clearly defined and understood image of the brand

SWOT analysis – TESCO Standard Strength Positive image Customers see this brand as higher quality Weaknesses Very low knowledge of the brand Logo is not transparent enough Many customers do not understand why is TESCO offering second brand Opportunities Improve communication of the brand Very high knowledge of TESCO Chips can be used to introduce the brand Tasting, testers Different size of products Threats The brand can take customers of TESCO Vyhodny nakup

Current Brands Development Strategy Better propagation of TESCO Standard brand Tastings, Flyers Explain customers why TESCO is offering more own brands – explain difference Offer different pack sizes Remove low quality products Include missing products Better propagation of TESCO Standard brand Tastings, Flyers Explain customers why TESCO is offering more own brands – explain difference Offer different pack sizes Remove low quality products Include missing products

TESCO Premium Market Segment Higher income Lives in the city or close to city Takes care about his/her lifestyle Buys only the best, deserves only best…… Product Positioning Differentiated targeting – special products for demanding customers It is key to create an IMAGE of the Brand All products under this brand will be products exclusively for TESCO Market Segment Higher income Lives in the city or close to city Takes care about his/her lifestyle Buys only the best, deserves only best…… Product Positioning Differentiated targeting – special products for demanding customers It is key to create an IMAGE of the Brand All products under this brand will be products exclusively for TESCO

TESCO Premium Brand Marketing Mix Product Luxury, highest quality products Black & Gold design Gifts, Food specialties for Launch Range for babies Price Higher Will not be discounted Place/Distribution UK source Local suppliers – to be developed Slowly included into range – than promotion First phase – stores in Prague, Brno Second phase – all stores Promotion Special fixtures In-store POS Premium positions in fixture Extra flyers Tastings In-store announcements

Marketing Activities Implementation scheduled for period before Christmas, Easter Communication in Flyer – Extra A3 flyer (both sides), explaining main message of TESCO Premium brand : ‘Extra quality product’ Posters in store – luxury image Tastings of products (initially for 3 weeks) Regular announcements in-store Implementation scheduled for period before Christmas, Easter Communication in Flyer – Extra A3 flyer (both sides), explaining main message of TESCO Premium brand : ‘Extra quality product’ Posters in store – luxury image Tastings of products (initially for 3 weeks) Regular announcements in-store Cost Kc Cost Kc/store

Benefits Expected Turnover will increase Share of own brand products will increase TESCO Brand will have better image TESCO market position will improve (against competition) All customers will have their range in TESCO…. Turnover will increase Share of own brand products will increase TESCO Brand will have better image TESCO market position will improve (against competition) All customers will have their range in TESCO….