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m1 9  Pratik Keshav Khiani
mg 9 9 ñavisheker ñeddy Kaitha
m   anthaKumar ñangasamy
m9 9  umanKumar ñeddy Gopu
mÚ 9 9 ’anoj ñeddy Ambati
mM 9  îaizuddin Adeeb haik
md 9 9 Ahad Khan Yousuf Zai ’ohammed
m xesco's is a United Kingdom based international
supermarket chain. It is the largest British retailer both by
global sales and by domestic market share. Established in
m xesco is the third-largest retailer in the world next to Wal-
’art, Carrefour and is operating around g,99 stores and
employing over 9, , people.
m www.xesco.com is recognized as the world's largest online
grocer, with a customer base of little less than1 million and
more than gÚ , orders a week.
m As of ’arch g , xesco have a store in every postcode of
the UK.

m ’ission tatement:
Our core purpose is to create value for customers to
earn their life time loyalty.
Ñ Vision tatement:
We talk about every little helps a lot, but its not just
the marketing slogan, it represents everything we
stand for our people and customers.
m A A Group Limited m omerfield
m BP Plc PAñ Handels-
m Carrefour .A Aktiengesellschaft
m Exxon’obil m xhe Boots Group PLC
m Corporation m Wm ’orrison
m xhe Big îood Group m upermarkets PLC
m Plc m Booker Cash &Carry
J ainsbury plc m Limited
’arks and pencer m ALI Group
Group plc m xhe Carphone Warehouse
Group PLC
m ñoyal utch/ hell Group m John Lewis Partnership plc
m afeway Inc.

Strengths Weakness

m Increasing market share m ñeliance upon the UK market

m Insurance m ebt reduction
xesco online m igns point to serial
Brand value
m acquisitions
m UK market leadership

ô rtunities Threats

m ‰ -f  retail m UK str ct ral c ae c l

m ealt a ea ty m spark a price ar
m F rt er iterati al m Overseas retrs c l fall
m r t m Wal-’art/Asa c allee
m Iterati al expasi 
m xesco's performance is highly influenced by the
political and legislative conditions of these countries,
including the European Union (EU). xesco
understands that retailing has a great impact on jobs
and people factors being an inherently local and
labour-intensive sector. xesco employs large numbers
of; student, disabled and elderly workers, often paying
them lower rates. In an industry with a typically high
staff turnover, these workers offer a higher level of
loyalty and therefore represent desirable employees.
m OCIAL îACxOñ :

m Current trends indicate that British customers have

moved towards 'one-stop' and 'bulk' shopping, which
is due to a variety of social changes. xesco have,
therefore, increased the amount of non-food items
available for sale.In addition, the focus is now towards;
the own-label share of the business mix, the supply
chain and other operational improvements, which can
drive costs out of the business.

m Economic factors are of concern to xesco, because they are

likely to influence demand, costs, prices and profits. One of
the most influential factors on the economy is high
unemployment levels, which decreases the effective
demand for many goods, adversely affecting the demand
required to produce such goods. xhese economic factors
are largely outside the control of the company, but their
effects on performance and the marketing mix can be
profound. Hence, xesco would be badly affected by any
slowdown in the UK food market and are exposed to
market concentration risks.

m xechnology is a major macro-environmental variable which has

influenced the development of many of the xesco products. xhe
new technologies benefit both customers and the company:
customer satisfaction rises because goods are readily available,
services can become more personalised and shopping more
convenient. xesco stores utilise the following technologies:
m · Wireless devices
m · Intelligent scale
m · Electronic shelf labelling
m · elf check-out machine
m · ñadio îrequency Identification (ñîI).

m Various government legislations and policies have a direct impact on

the performance of xesco. îor instance, the îood ñetailing Commission
(îñC) suggested an enforceable Code of Practice should be set up
banning many of the current practices, such as demanding payments
from suppliers and changing agreed prices retrospectively or without
notice (’intel ñeport, g 9). xhe presence of powerful competitors
with established brands creates a threat of intense price wars and
strong requirements for product differentiation. xhe government's
policies for monopoly controls and reduction of buyers' power can limit
entry to this sector with such controls as license requirements and
limits on access to raw materials (’intel ñeport, g 9; ’yers, g 9). In
order to implement politically correct pricing policies, xesco offers
consumers a price reduction on fuel purchases based on the amount
spent on groceries at its stores. While prices are lowered on promoted
goods, prices elsewhere in the store are raised to compensate.


m xhreats Of New Entrants

Competitive ñivalry is considered a high threat and are
people like Amazon and Asda including the other
supermarket and non-food retailers who are involved in the
same concept. If consumers see little difference between
the product and that of the competition then they will
tend to chose on price.
m Bargaining power of uppliers.
xhere is little threat as often large supermarkets dictate
the price they pay to the supplier. If the supplier does not
agree to xesco's price then the supplier will be left with no


m xhreats of New Entrants-

xesco, Asda, ainsbury and other supermarket chains put
up considerable barriers to entry. Anyone starting up a new
supermarket chain has barriers imposed on them,
implicitly or explicitly, by the existing supermarkets.
m Bargaining Power of Buyer-
Buyer power also acts to force prices down. If beans are
too expensive in xesco, buyers will exercise their power
and move to ainsbury. xesco including other
supermarkets have a disciplined approach to prices setting.
xhis approach stops them from destroying each other in a
profit war.


m xhreat of ubstitute Products-

xesco competition from other supermarkets which can
provide substitute goods drives the prices of both
companies down; therefore substitute is seen as a Low


m Large chains as xesco should accrue large amounts of

consumer information that can be used to communicate
with the consumer.
m xry to acquire existing small-scale operations and opening
’etro and Express stores in local towns and city centres.
m Ecologically benign and ethically sound production of
consumer produce such as tea, coffee and cocoa is viable,
and such products are now widely available at the majority
of large chains.
m ’aking Corporate ñesponsibility integral in its business is
essential in applying in values as a responsible business. It
should also believe it as an opportunity for growth.
„„’’ º

m Introduce advanced technology for checkouts and stock

control systems that impact new entrants and the existing
m xhe major societal issue threatening food retailers has
been environmental issues, a key area for companies to act
in a socially responsible way. Hence, by recognizing this
trend within the broad ethical stance.
m xo be as strong in non-food as in food. xhis means offering
the same great quality, range, price and service for our
customers as we do in our food business.
m xesco should make long-term commitments on community
and environment.
„ „

m xhe UK is xescoǯs biggest market and the core of their
business. xesco aim to provide all our customers with
excellent value and choice.
m xesco has a well-established and consistent strategy for
growth, which has allowed it to strengthen its core UK
business and drive expansion into new markets.
m xesco has followed its customers into the growing world of
retailing services, aiming to bring simplicity and value to
complex markets.
m xesco is an international retailer and wherever it operates,
it focuses on giving local customers what they want.