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

Premium range extra quality product,

TESCO Premium specially selected
(Black & Gold)
 Methodology used
Marketing strategy developed based on:
Combination of qualitative and quantitative
research
Analysis of competition
SWOT analysis
Market segmentation
Differentiated targeting
Quantitative research Qualitative research
3 HMs + 2 DSs (CR) & 3 HMs +1 DS The same stores
(SR)
Focus groups
Instore; questioners TESCO customers
20 minutes, 100 questioners/store Discussion format
Knowledge of Own Brands, 90-120 minutes
communication channels, luxury range Attributes of individual Brands
acceptance and their image, communication,
range suitable for TESCO
Premium
 Analysis of competition
Price Level lower medium higher
TESCO Vhodn nkup TESCO TESCO Premium
TESCO
Koruna Albert, Hypernova
AHOLD
ARO
Makro
Clever
Billa
Levn
Delvita
Jednota
Jednota
(Slovensko)
Mince Julius Meinl
Julius Meinl
Spar
Interspar
 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
Opportunities
Remove products most criticized from the range
(or improve their quality)
Offer different product sizes
Weaknesses
Design can be associated with poor quality
Some low quality products are decreasing image
of the brand
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 Weaknesses
Positive image Very low knowledge of the brand
Customers see this brand as higher quality Logo is not transparent enough
Many customers do not understand why is
TESCO offering second brand

Opportunities Threats
Improve communication of the brand The brand can take customers of TESCO
Very high knowledge of TESCO Chips can be Vyhodny nakup
used to introduce the brand
Tasting, testers
Different size of products
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 Higher
Black & Gold design Will not be discounted
Gifts, Food specialties for Launch
Range for babies

Place/Distribution Promotion
UK source Special fixtures
Local suppliers to be developed In-store POS
Slowly included into range than promotion Premium positions in fixture
First phase stores in Prague , Brno Extra flyers
Second phase all stores 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
Cost 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.