Tesco and Tesco Vouchers

Tesco is the largest UK supermarket and holds over 2000 stores in across the UK. Their main rivals are Asda, Marks and Spencers who are also large and popular food retailers in the UK.

The battle among the “big 3″ is becoming increasingly fierce and moving out of the realm of groceries. In June 2007, Asda was voted the number one for UK’s lowest priced grocer and in response, Tesco lowered prices of their good – taking over £2bn off the value of their goods. This triggered a huge price war between the grocers who have had a history of battling over the British consumers.

In 1995, Tesco made a successful move to introduce Tesco vouchers to the public which rewarded customers for their loyalty. These Tesco vouchers allowed consumers to receive discounts on items which, in turn, converted more consumers to purchasing from them.

In response, Marks and Spencers launched a huge advertising campaign which promoted their food as higher quality than it’s rivals. This was a good move because it increased their sales and differentiated them from the others.

At the moment, tesco vouchers are less heavily promoted. Instead, they have recognized their power as a place where millions of Britons visit every day. To this end, they are taking an integrated approach to retailing and aiming to make their stores a “one stop shop” for the needs of every consumer. This includes selling clothing, electronic appliances and providing car insurance. By the end of 2007, Tesco hopes to have it’s own telecoms company to provide mobile telecommunication for their customers.

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