SERVICES MARKETING PROJECT

Services Marketing Project

Table of Contents

Introduction2

An Overview of Retail Industry in United Kingdom2

The Main Retailing Sectors3

Food Retailing Industry in United Kingdom4

Market Overview4

Market definition4

Market Summary4

Market Analysis5

Market Segmentation6

Geography segmentation6

Market Distribution6

Market Outlook7

Market value forecast7

Five Forces Analysis7

Case Study of Tesco9

Strengths10

Weakness11

Opportunities12

Threats12

Ambiguous, Inappropriate and Obviously Unsuccessful Tactics of Marketing by Tesco13

Services Marketing Project

Introduction

An Overview of Retail Industry in United Kingdom

One of the largest industries of United Kingdom is its retail industry that provides job prospects to more than three million people and it is predicted that industry will flourish by 15% in size in the next five year. Though this prediction characterizes a reduce speed, in comparison to the past years, it is yet remarkable number, particularly in view of current economic adversities in the UK. The UK retail industry generates eight percent of the GDP of UK that encompasses success of UK retailers abroad on the rise, and development of e-commerce which arrives at far beyond UK borders. Hypermarkets like Tesco and Asda, because of their radiated and branched out offerings, are capable to capture an extensive customer base. As said by TNS Market Research consultants, the Co-operative Food, Tesco and Asda along with, Morrisons and Sainsbury's, make up a market share of more than 80% of retail food sales in the UK. London is a predominantly substantial shopping market, when it relates retail spending. Tokyo with £61.4, New York with £47 billion and Paris with £46.6 billion were beaten by London that spent around £64.2 billion in gross retail sales for the year 2010.

The recessive strikes may have appeared devastating that individual retail chains took in the United Kingdom, but from a broader viewpoint, there were not many considerable alterations within the United Kingdom in the largest retail chains of UK. In the grading order of the largest retailers of U.K., there were no changes when it comes to comparison with other retailers in the U.K. that entails the largest retail chains U.K. held their own with their own homeland competition. The good news from within the retail industry of United Kingdom was that on the latest list of Largest Retail Chains of the World, there were only two considerable alterations with UK retailers.

The two biggest changes, in the worldwide retailing arena, were with Arcadia Group- the apparel retailer, and Debenhams- departmental store. On the global largest retailing list, both of them lost their spots entirely. For the remarkable declination of both of these retail chains, the weakened British pound is said to be liable by the creators of the Global Powers of Retailing. But blaming the relative vulnerability of the British pound looks like an insubstantial justification since little lost or no ground in the global rankings is demonstrated by the sixteen UK retailers that maintained their rankings on the list. In the global retail rankings of 2011, some considerably positive grounds are gained by two retail chains of U.K. A significant positive change had been shown by Supermarket chain Co-operative Group ...