non price competition assignment tesco
GROUP09 – ID6517387 2014/10/21
Q1. Using some examples, explain what is meant by non-price competition.
Non-price competition is company strategies to compete with other firms on product promotion or development, not by lowering product’s price. For example, product branding, increase products advertising, renew product’s packaging, improving customer services and product information.
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Q2. Why has Tesco been losing ground to its competitors?
Because Tesco and its competitors use different methods for gaining market share. Tesco competitors, ASDA and Sainsbury increase their market share by giving more coupons/ vouchers, lowering price on essentials necessities, and cutting petrol prices. However, Tesco increases their market share by improving more on their services like reforming their operation, refurbished old stores, recruiting more staff.
FEEDBACK HERE
Because Tesco is in the middle market for quality and price, ASDA provides cheapest price, Sainsbury has the best quality. Customers are in tight budget so either they choose cheapest price or high quality with high price.
Tesco was also facing problems with US chain (Fresh and Easy)
Tesco focused on manage quality of service and not price or quality of goods therefore it outperform by lower price in ASDA and better quality of product in Sainsbury
Q3. Given the products that Tesco sells (largely necessities), why have sales been falling, despite household’s tight budgets?
Because on tight budget, customers are searching for more of cheaper goods than supermarket’s services. Tesco decided to spend their budget on refine services by recruit more staff and renovates outlets. While Tesco competitors focused only on lowering goods value, ASDA and Sainsbury succeeded at gaining more market share by offering lower price in essentials goods and giving vouchers. While Tesco improving and offer less of price reduction.
FEEDBACK HERE
Income decrease causes decrease demand. Therefore the sales
Q1. Using some examples, explain what is meant by non-price competition.
Non-price competition is company strategies to compete with other firms on product promotion or development, not by lowering product’s price. For example, product branding, increase products advertising, renew product’s packaging, improving customer services and product information.
FEEDBACK HERE
Q2. Why has Tesco been losing ground to its competitors?
Because Tesco and its competitors use different methods for gaining market share. Tesco competitors, ASDA and Sainsbury increase their market share by giving more coupons/ vouchers, lowering price on essentials necessities, and cutting petrol prices. However, Tesco increases their market share by improving more on their services like reforming their operation, refurbished old stores, recruiting more staff.
FEEDBACK HERE
Because Tesco is in the middle market for quality and price, ASDA provides cheapest price, Sainsbury has the best quality. Customers are in tight budget so either they choose cheapest price or high quality with high price.
Tesco was also facing problems with US chain (Fresh and Easy)
Tesco focused on manage quality of service and not price or quality of goods therefore it outperform by lower price in ASDA and better quality of product in Sainsbury
Q3. Given the products that Tesco sells (largely necessities), why have sales been falling, despite household’s tight budgets?
Because on tight budget, customers are searching for more of cheaper goods than supermarket’s services. Tesco decided to spend their budget on refine services by recruit more staff and renovates outlets. While Tesco competitors focused only on lowering goods value, ASDA and Sainsbury succeeded at gaining more market share by offering lower price in essentials goods and giving vouchers. While Tesco improving and offer less of price reduction.
FEEDBACK HERE
Income decrease causes decrease demand. Therefore the sales