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Tescos goals, values, mission.

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The Extendables

on 10 March 2014

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Transcript of Tescos goals, values, mission.

We aim to improve the health of all our customers, by providing healthy food at an affordable price, while minimising the environmental impact.

Product - Service
The Lunchbox
Results from Environmental Scanning
What it is and Why
Our service
What it can offer
International Application
What this will bring
Survey results
Where and how
to advertise it?
Fifty 50
Bake to Order
We can extend to the Meat and Fish sections of Tesco
Bake to Order
Tv Ad
In-store Promotion
"5.5 billion lunches are packed for children each year in the UK" (Source: Mintel International group, 2004)

"on average 45% of pupils take a packed Lunch from home" (Source: FSA, 2004)

"69% of lunch boxes included a packet of chrisps and 58% a chocolate bar" (FSA)

Table of brand prices
Percentage table
Plans/future branding
"Exactly what it says on the tin"
Local flavours
The people were buying more children's yogurt, compared to others.
We found that the majority were mums with children aged 3-12 (often shopping with their children)
This is where we decided to position ourselves in the market. On the value range for children yogurt, for the convenient, but healthy minded shopper.
- Sold in packs of 10, 2 x 25ml pots
- Made to mix, for the "ultimate" in healthy flavour combinations
"The percentage of final year - Year 6 - primary school children (generally aged ten to 11) who were overweight or obese increased to 33.9 per cent in 2011/12, up from 33.4 per cent in the previous year. "

"The percentage of Reception Year children who were overweight or obese in 2011/12 remained at 22.6 per cent" (*Source: National Child Measurement Programme: England, 2011/12 school year)
Thank you for listening do you have any questions?
Mums (80%+)
Carers (nannys)
School children/Teenagers
Our Target Market
We gave out questionnaires to this target group (physical and digital links) and awaited results
Peak times on week days
School finishing time
Appendix: (Who, Where and When Time use Institute, 2008)
Table shows the share on the lunchboxes of 668 children surveyed in the UK

(Source: School Lunchbox survey, 2004)
The Lunchbox
A simple and efficient way of getting the bread the way you want it.
An innovative experience
Tailor made to you
Ease of use
Clubcard points building
Freshly baked
Time saving
An increased perceived value
Increase in loyalty

We aim to enter the market at a competitive price (Price Skimming). Directly competing with the market leaders at the moment.
We will offer long-run extra value through the clubcard reward scheme, increasing purchase incentive.
Our biggest challenge will be maintaining market share during holiday seasons.
Our introductory period we will make a loss due to heavy promotion of the product.
Awareness of Fifty 50 grows and starts to become a staple of the the lunchbox.
Product matures and we offer more promotions to still be competitive as well as develop/introduce new flavors.
Decline due to seasonal pattern expected, no school in summer and Christmas.
Other offerings
Nobody else is offering a similar service
If we see/receive positive results and feedback
More stores
More counties
More countries
Bigger range
More people are buying luchboxes in the recession:
"Sales of lunchboxes have skyrocketed by 260%" (source: the grocer)
What we learnt;
Average time of those shopping was longer than the average bread baking time.
For most people bread is a commodity.
Dragon Fruit
30% growth of the yogurt market in China.
Yogurt covers about 20% of liquid milk consumption
China's imports of yogurts have increased by 60%

Pricing at 12 yuan
Children's yogurt
Fifty 50
Source: BJSN
From 12pm-5pm
Buyer Behaviour
We aim to meet and satisfy the needs of our customers.
Their needs
Their motives
Their culture, attitudes and perceptions
Their decisions
Habitual buying
Looking for convenience
Lower priced
Perceptual attitude - What will make people choose ours?
Lower price point
Economic recession
Adding overall value
Average price of yogurts is £2.43 per kilogram
6p per yogurt pot
60p cost per pack
Sales price £1.10 (based on average pricing)
Private label increase of 4.6%
share value also increased 29.3%
Source: Comparison 7th July 2012 - 7th July 2013 Dairyco
An interactive ordering service for freshly baked bread offering options for personalisation
One of our designs to evoke emotions and change attitude

New line (Future)
Sophisticated lettering (Value) - yet colourful
A small percent
willing to try new
service as it begins
to be implemented
into stores.

Take risks
Help us iron out initial problems
Excited to try new service
will try it when it is in the initial stages as to refer to friends/family
want to be opinion leaders
Will adopt the use of the service as it becomes more established.
perhaps have a little more time on their hands and want to try something new.
Recommended the service by 'early majority'
Very bad with technology so has taken them a while to build up confidence to use service.
% of people using 'bake to order'
New products to fill the lunch box
As part of the
Everyday Value range
"About 4.6 million children eat a packed lunch every day, but the government says many lunchboxes contain too much salt, sugar and saturated fat." (Source: BBC, 2006)
Ashley, M.J. (2013). AAM. [Online]. [Accessed 19 February 2014]. Available from: aamcompany/private-label-generic-vs-branded-products-differences-arent-black-and-white-anymore/
Baines, P., Fill, C. and Page, K. (2011). Marketing. 2nd ed. Oxford New York: Oxford University Press.
BSNABC (2013) Analysis and Forecast: yogurt market in china - Beijing, December 2013
Evans, C. and Cade, J. (2007). Packed Lunches In Primary Schools In The UK. Leeds: Food Standards Agency.
FSA - National Foundation for Educational Research survey: Packed lunched in primary schools in the UK, 2007.
Garner, R. (2010). Independant. [Online]. [Accessed 18 January 2014]. Available from: www.independant.co.uk/news/education/education-news/99-out-of-100-packed-lunches-eaten-at-school-are-unhealthy-1864815.html
Hargadon, J. (2006). BBC. [Online]. [Accessed 16 February 2014]. Available from: news.bbc.co.uk/1/hi/education/5373018.stm
Hegarty, R. (2012). Grocer. [Online]. [Accessed 31 January 2013]. Available from: thegrocery.co.uk/companies/supermarkets/morrisons/lunchbox-sales-up-as-shoppers-feel-the-pinch/225316.article
Hills, S. (2009). Dairy Reporter. [Online]. [Accessed 1 February 2014]. Available from: dairyreporter.com/r-d/healthy-packed-lunch-trend-drives-development
HSCIC (2012) National Child Measurement Program - England, December 2012.
Jefferson, A. and Cowbrough, K. (2004). School Lunch Box Survey 2004. Community Nutrition Group And The FSA Please enter a volume(Please enter an issue).
Mintel (2004) Cross Sectional Survey of School Lunches, September 2004.
Percell, D. (2010). Specialty Food. [Online]. [Accessed 16 February 2014]. Available from: www.specialtyfood.com/news-trends/featured-articles/article/yogurt-current-culture/
Report, M. (2009). Grocery trader. [Online]. [Accessed 26 December 2013]. Available from: grocerytrader.co.uk/?p=3087
Tesco (2013) Tesco and Society Report: Conran Design Group. March 2013.Mintel (2004) Cross Sectional Survey of School Lunches, September 2004.
This is the future of shopping.
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