Traditionally Tesco is a grocery company, but I would say that they are selling more than just groceries. They are selling convenience which translates into their promotion style and also their home delivery services. The company has expanded the mainstream grocery concept into a more robust product that differentiates themselves from their main competitor E-Mart.
Tesco uses place in a unique and effective way. The out-of-home advertising space used to put a "grocery store" in unexpected places is genius. While I don't have any information about pricing, I would guess that Tesco charges a premium for the convenience of shopping while waiting for the subway and also for the delivery costs they incur when getting the products to the homes of Korean customers. These premiums might allow for higher margins than traditional grocery items and probably help the companies bottom line.
No comments:
Post a Comment