This document discusses market positioning strategies of Tesco supermarket as it expands into new markets. It examines how Tesco uses market segmentation and product branding to diversify into complementary sectors. As the largest supermarket in the UK with over £72 billion in profits in 2012, Tesco provides a wide range of products and services. The document aims to analyze Tesco's strategies for market positioning and extension to shed light on how other companies can emulate their approach. It explores how consistency in branding and catering to local cultural values impacts a firm's ability to position itself in multiple international markets.

1. The Importance of Positioning to Multiple Markets
A Case Study of Tesco Supermarket
Date
(Name)
(University)

2. Title
The importance of market positioning by companies into new markets: A study of how market
positioning can lead into market diversification
Introduction
Positioning in multiple markets relates to companies placing themselves across several markets
in order to provide product attributes, which are equally important in the various countries
(Mitchell and Kiral 1999, pp. 17). According to Davies (1992, pp. 16), when marketing their
brands, firms use their image attributes, which are the impressions that the brand provides on the
consumer's minds. Therefore, whether consistency in the firm's brand is the most effective
approach for positioning in multiple markets,it is dependent on whether the product on which the
brand is consistently placed fits the underlying cultural values of most of the targeted markets
(Laaksonen and Reynolds 1994, pp. 39).
With profits of more than £72billion in 2012, a market share doubling that of its closest rival and
twice as numerous as that of stores, its closest competitor, Tesco is openly the market leader
(Palmer 2005, pp. 25). It provides 90% of the total services and products available through
supermarkets and has started a comprehensive segmentation with a value, premium range and
everything above, in-between, and around (Fernie and Pierrel 1996, pp. 59). Through extending
into complementary sectors in its market, Tesco is poised to expand further and stay ahead of its
competitors (Burt and Davis 1999, pp.49).
Rationale
What is the research issue?

3. According to Warden and Chen (2012, pp. 25) and Felgate and Fearne (2015, pp. 471), the
problem of this research is to assess whether the Tesco supermarkets in the UK are fit enough to
extend into new territory. There are different opportunities available to Tesco in such markets.
This research seeks to develop a number of tactics that are present to the supermarkets. By using
the example of Tesco, this essay will develop sophisticated strategies of market penetration to
enable the firm to sell more of its products to its new markets. (Zentes, Morschettand Schramm-
Klein 2012, pg. 179).This study will discuss how segmentation of customers by a company will
enable it to provide products to its targeted customers.
Why is it an issue?
Products and services provided by Tesco as well as other businesses cannot be attractive to all
customers in equal terms (Watson 2013, pp. 16). This is as a result of variations in the needs and
wants amongst people. Therefore,there is need for businesses to engage in targeting practices and
market segmentation (Yamoah 2013, pp. 14).
It can be indicated that market segmentation is grounded on the generally true philosophy that
the market for any good is not homogenous to its wants and needs (Chadrasekar, 2010, p.60). In
simple terms, market segmentation is apportioning population members into groups in line with
their wants, needs, and other criteria and coming up with products and services, which seek to
satisfy wants and needs of particular groups (Batra et, al. 2013, pp. 1201).
Why is it an issue now?
Extending brands into other markets and sectors will test the brand's flexibility and strength
(Rogers, Ghauri and George 2005, pg. 53). Interestingly, most businesses have had to develop

4. sub brands under the main brand umbrella for fashion and as a strategy for entering different
markets (Sparks 2014, pp. 149). However, consumers are clearly likely not to like such a
strategy. Against this backdrop, companies should be careful in designing their products to avert
this issue.
What could this research shed light on?
This research will shed light on how companies can emulate Tesco’s strategies from an analysis
of the product brands to the polarization of the products through market positioning. It will also
focus on the impact this has on the ability of the brands to extend beyond their usual products
and services (Felgate and Fearne2015, pp. 472). Tesco’s case occupies the value and mass-
market segment and is in a league of its own. Brands, which add value or capable of charging for
a premium for their products and services are the most capable of expanding into new sectors
(Yamoah 2013, pp. 16).

5. Bibliography
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The Impact of Heterogeneity in Cultural Values and Competitive Set. Ross School of
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Felgate, M., and Fearne, A., (2015). Analyzing the Impact of Supermarket Promotions: A Case
Study Using Tesco Clubcard Data in the UK, In the Sustainable Global Marketplace.
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6. Rogers, H., Ghauri, P. N. and George, K. L., 2005. The impact of market orientation on the
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Watson, I. (2013). Internal reference price formation in support of UK and US grocery retail
price decision-making, Bloomington: Doctoral dissertation, Heriot-Watt University press.
Yamoah, F. A., 2013. An Exploratory Study of Marketing Factors Influencing Fairtrade Food
Buying Behaviour in the UK. International Review of Management and Marketing, 4(1),
p. 13-23.
Zentes, J., Morschett, D., and Schramm-Klein, H., 2012. Retail Branding and Positioning. In
Strategic Retail Management. Gabler Verlag, p. 179-200.

7. Rogers, H., Ghauri, P. N. and George, K. L., 2005. The impact of market orientation on the
internationalization of retailing firms: Tesco in Eastern Europe.The International Review
of Retail, Distribution and Consumer Research, 15(1), p. 53-74.
Sparks, L., 2014. Tesco’s supply chain management. Logistics and Retail Management:
Emerging Issues and New Challenges in the Retail Supply Chain, p. 149.
Warden, C. A., and Chen, J. F., 2012. Mismatch of market positioning and indigenous culture.
International Handbook of Academic Research and Teaching, 59.(1), p. 23-48.
Watson, I. (2013). Internal reference price formation in support of UK and US grocery retail
price decision-making, Bloomington: Doctoral dissertation, Heriot-Watt University press.
Yamoah, F. A., 2013. An Exploratory Study of Marketing Factors Influencing Fairtrade Food
Buying Behaviour in the UK. International Review of Management and Marketing, 4(1),
p. 13-23.
Zentes, J., Morschett, D., and Schramm-Klein, H., 2012. Retail Branding and Positioning. In
Strategic Retail Management. Gabler Verlag, p. 179-200.