Perception of Tesco Brand to an Investor

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Running Head: TESCO: BRAND ANALYSIS

Tesco: Brand Analysis

Introduction
Investing in a business firm is requires a thorough analysis of the firm from the investors point of view. During their investment, in order to reduce the level of risk, an investor should evaluate what are the environmental risks, industry structure, and portfolio of the business firm. Before investing in an organization there are some criteria that are looked by investors. Some basic aspects researched by the investors are potential for return on investment and profit, security of their funds, ability of the organization to grow and its past record of profit and loss, integrity of the firm, it corporate governance, a solid management team and business structure, etc. (Ward, n.d.).

Tesco stands as a market leader in the UK general merchandise and grocery market and it has significantly launched its efforts to become a global leader. The company was founded by Jack Cohen in 1919 in East London (Tesco: Core UK, 2009). In the past, the management of Tesco was concentrated to develop the market, which gave it a strong start as it tasted international success. Tesco has already a strong presence in the European and Asian Market (TESCO Fresh and Easy, 2007).
It is the third biggest company in the international retail market after Wal-Mart and France's Carrefour. The main reason behind success of Tesco in the global market is its Brand equity factor. The milestone used by Tesco to maintain its leading position is the "Fresh and Easy" (Tesco Long Term Strategy, 2009). Tesco deals in consumer goods, grocery items telecoms, banking and financial services, furniture, home electrical, PC and photo gaming, wine, entertainment and books, clothing, sports, jewelry, leisure, toy, gifts, flowers, magazines, opticians, health products, insurance, etc. (Tesco, 2009). Tesco has a good brand reputation, so it is one of the best options from the perspective of the investor. On the ground of corporate and legal affairs, Tesco has developed various strategies for the protection and promotion of the brands (Kotler & Keller, 2009).
With the help of this report, the reader would be able to gain the knowledge about the various reasons behind the strong brand equity of Tesco and how an investor make its investment fruitful by investing their money in Tesco because of its strong brand name.

Critical Evaluation of the Brand: Tesco
Tesco has introduced numerous corporate strategies to enhance the power of its brand name. As an investor's perception, to In order to evaluate the effectiveness of the Brand name, it is necessary to identify its strengths weakness, opportunities and threats and other industry factor.

Strengths of Tesco Brand: Tesco is one of the biggest names in the retail industry especially in the food and grocery sector in all over the world. The Hypermarket introduced by Tesco in South Korea, Fresh and Easy super markets in USA, Vin Plus outlets in France for selling wine, spirits and beer, grocery market in Ireland are very successful areas. It is also operating in non food sector, entertainment and books sector it is not very much successful (Tesco: Annual Report, 2009). In Poland, Tesco is offering its own branded line, and other services such as personal finance, petrol on-line photo processing etc. in a successful way (Tesco Poland, 2009).

Due to the popularity of the brand, the number of retail store has been increased from 692 to 1780 from 2001 to 2005 (Tesco: Core UK, 2009). All the stores are based on the innovative technologies and new Format. In order to compete in the different sectors and maintain its brand position, Company has launched Tesco Metro and Tesco Express (Fresh & Easy Buzz, 2008). Due to the big Brand, Consumers like to make their purchase in bulk. The 'fresh and easy' milestone of Tesco also enhances it brand reputation among the consumer because it serve quality product within low cost in comparison to its competitors such as Sainsbury, ASDA, etc. (Tesco: Core UK, 2009).
The brand has maintained its position due to the fresh and healthy food products and hygienic quality (Kotler & Keller, 2009). The Brand name is also successful to increased customer loyalty and satisfaction of the customers, so there are enthusiastic to make their purchases again and again from the Tesco retail stores. The investor should concentrate on this brand name because it attracts a large group not only in the United Kingdom but also in the global market. So from an investor's point view it is a good investment to get good return on investment because of its brand reputation, customer service and customer database.

Brand equity of the company is its focus on retailers to maintain the stocks of products that are highly in demand, which is the main reason behind the success of brand. One of the main strengths behind the strong brand name is the loyalty of employees. Employees of the Tesco also create a positive image in the eyes of consumers by showing their satisfaction level and putting their effort to satisfy the customers (Kotler & Keller, 2009).

Weaknesses of Tesco Brand: As an investor's perception, Tesco Brand has too much diversification in the products. Due to the low cost and quality product, it is a barrier for the investor to make high profit. This brand is restricted for the particular segment in which the customers want to get low cost products (Fresh & Easy Buzz, 2008). The management should concentrate to get complete command over one product and then move towards the other brand products.
Some products of the Tesco Brand has strong influence on the customers such as grocery items, on the other hand customers are not aware about some brand products of Tesco such as book, etc., which is weakness of the company that can reduce the profit margin of investors in future (Tesco: Core UK, 2009). One of biggest weakness of Tesco Brand from the investor's perspective is the lack of adequate positioning of brand among the customers.

It is very ...