The healthy eating brand
A Tesco case study

Page 1: Introduction

It is the ability to satisfy customers that marks the difference between the successful and the unsuccessful organisation. That is why some children’s nurseries have a huge demand for places, while others have falling roles. It is why some supermarkets have people crowding the aisles whereas others are practically empty. This ability to satisfy customers boils down to successful marketing.

The Chartered Institute of Marketing uses the following definition of marketing:

'Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably.'

There are a number of key components in this definition:

  • Tesco 2 Image 1Identifying - involves asking and finding out the answers to questions such as: “How do we find out what the consumer’s requirements are?” and “How do we keep in touch with their thoughts, feelings and perceptions about our goods or service?”
  • Anticipating - is essential because consumer requirements change all the time. For example, as consumers’ living standards increase, they may seek a greater variety of foods e.g. the replacement of standard fare for exotic recipe dishes. Anticipation involves looking at the future as well as at the present. What will be ‘The Next Best Thing’ that people will require tomorrow?
  • Satisfying - involves meeting the requirements of consumers. Consumers seek particular benefits. They want the right goods, at the right price, at the right time and in the right place.
  • Profitability - because successful organisations need to be able to build for the future. An organisation that fails to make a profit will have nothing to plough back. Without the resources to put into ongoing marketing activities, it will not be able to identify, anticipate or satisfy consumer requirements.

This case study therefore focuses on how Tesco has identified and anticipated changes in lifestyles in this country and how these impact on new requirements for healthy eating. It shows how Tesco has developed a highly successful “Healthy Eating” brand, which has enabled the company to satisfy its customers and generate profits.

Healthy Eating at Tesco

The Tesco Healthy Eating Initiative was launched in 1985. The aim was to provide customers with information on health and nutrition and also a range of foods made specially for a healthier diet. As Britain’s leading food retailer, Tesco is in a unique position to communicate with customers and receive feedback on current attitudes and needs. Where better to provide people with information about the food that they eat than where they do their shopping.

Tesco | The healthy eating brand

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