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

TESCO own brands overview

TESCO Value

Value for money - Cheapest product in

the range

TESCO Standard

Standard product brand quality for

less money

TESCO Premium
(Black & Gold)

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

Quantitative
research

3 HMs + 2 DSs (CR) & 3 HMs +1 DS

(SR)

Qualitative
research
The same stores
Focus groups

Instore; questioners

TESCO customers

20 minutes, 100 questioners/store

Discussion format

Knowledge of Own Brands,

communication channels, luxury
range acceptance

90-120 minutes
Attributes of individual
Brands and their image,
communication, range
suitable for TESCO Premium

Analysis of competition
Price Level
TESCO

lower

medium

higher

TESCO Vhodn
nkup

TESCO

TESCO Premium

AHOLD
Makro
Billa
Delvita
Jednota

Koruna

Albert, Hypernova

ARO

Clever

Levn

Jednota

Julius
Meinl
Interspar

Mince

Julius Meinl

Spar

(Slovensko)

SWOT analysis TESCO

Value
Strength

Weaknesses

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

Design can be associated with poor quality

Some low quality products are decreasing
image of the brand

Opportunities

Threats

Remove products most criticized from the

range (or improve their quality)
Offer different product sizes

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

Weaknesses

Positive image
Customers see this brand as higher quality

Very low knowledge of the brand

Logo is not transparent enough
Many customers do not understand why is
TESCO offering second brand

Opportunities

Threats

Improve communication of the brand

Very high knowledge of TESCO Chips can
be used to introduce the brand
Tasting, testers
Different size of products

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

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

TESCO Premium Brand

Marketing Mix
Product

Price

Luxury, highest quality products

Black & Gold design
Gifts, Food specialties for Launch
Range for babies

Higher
Will not be discounted

Place/Distribution

Promotion

UK source
Local suppliers to be developed
Slowly included into range than
promotion
First phase stores in Prague , Brno
Second phase all stores

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 productCost 2 000 000 Kc
Posters in store luxury image
Tastings of products (initially for 3 weeks)
Cost 60 000 Kc/store
Regular announcements in-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.