Tesco is a large UK-based grocery and retail company that entered the US market in 2007 with their Fresh & Easy Neighbourhood Market stores. This document examines Tesco's innovative aspects in entering the US market. It outlines 10 dimensions of innovation Tesco employed, such as establishing a distribution system without local partners, product and format innovation tailored to US customers, and understanding complex consumer demographics. The document also notes that entering the US market was a major gamble for Tesco and risked market failure if not successfully innovated.

2. Introduction
Fresh & Easy Neighbourhood Market
10 Dimension of Innovations
Conclusion
InnovationTime Gap Analysis

3. MultinationalGrocery & General Merchandise Retail Store
Founder : Jack Cohen
Year: 1919
Headquarter: Cheshunt, England, UK
CEO: PhilipClarke
3rd Largest Retailer (Revenues)
2nd Largest Retailer (Profits)

4. Creating value for customers, to earn their lifetime loyalty
 “I can getWhat I want”
 “The prices are good”
 “I don’t queue !”

5. To examine the Innovatory aspect ofTesco’s Market Entry in USA
Methodology
• PreliminaryAnalysis: Corporate Dialogue with the firm
• Preparatory Study : Newspapers and Documentary Sources

6. Established: Store Network & Proprietary Distribution System
at same time.
Without Partner that can provide:
 Knowledge of Local Business Condition
 Consumer Cultures
Key to Success : Radical Innovation

8. First ‘Fresh and Easy Neighbourhood market’ opened in Hemet, 75
miles east of Los Angeles in 2007.
Introduction of innovative stores which included a “kitchen table” and
check-out registers.
This new network of accessible food stores was designed to draw
customers back to their local neighbourhoods.
Despite having no brand recognition and no customers the firm was
bullish regarding its US invasion.
“The brand is designed to be fresh as whole foods with a value like wal-
mart, the convenience of a walgreens and a product range of trader
joe’s…that leaves us with specific edge in the market.” – Stated byTim
Mason(CEO of fresh and easy)

9. 1.Physical market entry preceded by online entry:
 35% stake in Safeway.
 In store picking & existing store based infrastructure to serve internet
customers.
2.Anthropologies of Innovation
 Ethnography was the new core competence.
 Spending time with people is a great way to understand the market.

10. 3.Follower-Supplier relations & integrated
production/distribution networks
 Established a large distribution center in Riverside east of Los Angeles.
 Manufactured higher standard of prepared meals.
 Became food manufacturer for the first time to win over US shoppers.
 Two UK TESCO suppliers followed TESCO to US for the supply needs.
 This integration help them deliver fresh products.

11. 4.Product innovation
 Own label products.
 KitchenTable concept.
5.Trialling of formats
 Ensured that they did not alert their competitors about their plans.
 Tested all possible formats & layouts on American consumers.

12. 6.Service innovation
 Self checkout or self assisted systems
 Reduced labour cost
 Eg: Bishopsgate hosts largest single self checkout system
7.Digital marketing
 Create awareness of new brand
 60-70 blogs about fresh and easy on web
 Appearance in newspapers

13. 8.Innovative location strategies
 Operate in all kinds of neighbourhood
 Serve all kinds of people
 Establish themselves in FOOD DESSERT
 Entered into Urban regeneration partnership
9.Consumer intelligence
 Understand complex nature of Asian and Hispanic household
 Started post melting pots

14. 10.Publicity betting the firm
 Biggest ever gamble
 Risk of market failure

16. Managing the contested relationship with financial markets.
Transformation of Organization structures & Competencies of
the firm as a consequence of transnationalOperation
The culture of Innovation PoweringTesco’s performance in
the global economy.