Tesco PLC, the third largest retailer in the world based on profits, the ninth-largest based on
revenues, and the market leader in terms of market share in the U.K., Hungary, and Thailand,
entered the United States market for the first time in 2007, with the Fresh & Easy chain.
However, as of the time of the case, Fresh & Easy’s performance has been worse than Tesco had
hoped or planned for. Assume that it is March 2010 and that Tesco PLC’s top management has
requested that you evaluate Fresh & Easy from a marketing perspective. In particular, they have
asked you to write a report responding to the four questions below.
Please very carefully read the questions below and respond to all the requests for your
recommendations and justification. Please also very carefully read the “Logistics” regarding this
assignment, which appear after the questions. You must turn in one printed copy of this
assignment at the start of class on Tuesday, December 4th. You also need to upload your
assignment to NYU Classes under Assignments, prior to the start of class, where it will be run
through TurnItIn.
1) Should Tesco have entered the U.S. market in 2007? Discuss the advantages and
disadvantages of Tesco’s entrance into the U.S. as part of their overall international marketing
strategy. Be sure to compare the U.S. market with Tesco’s other international ventures and their
UK operations. (1 pg.)
2) Why have Fresh & Easy’s results from the U.S. launch through early 2010 been
disappointing? Your analysis to answer this question should identify which aspects of Fresh &
Easy’s goals, strategy, and marketing mix are problematical, not forgetting that Fresh & Easy is
an international venture for Tesco. Your criticism should utilize both qualitative and quantitative
information in the case. Please focus on aspects of marketing where you think Fresh & Easy is
doing something wrong. This focus does not mean that Fresh & Easy isn’t doing anything right –
and you can comment briefly on what it is doing right, if you wish – but the purpose of this
question is to identify problems. (1.5 pgs.)
3) Going forward, from March 2010, what changes do you feel Fresh & Easy must make to its
U.S. marketing strategy and marketing mix to fix the problems you identified in (2) and allow it
to succeed in the U.S.? Focus on the changes that you feel are most important for Fresh & Easy,
in order of importance, and explain why each is important. Please note that your answer can refer
back to your answer to (2), so you don’t have to repeat yourself. (2 pgs.)
4) Should Tesco close Fresh & Easy and withdraw from U.S. market? Start your answer to (4) by
stating your conclusion regarding this question. Then use both qualitative and quantitative
information from the case, as well as your answers to questions (1) – (3), to justify your
conclusions. Discuss in a few sentences support you have found for the opposite conclusion. (1
pg.)
You can include up to three additional pages of exhibits, tables, etc. Be sure to refer to any such
appendices in the text – otherwise they will not be read. You can also assume that Tesco
management has read the case, but you still need to mention important facts and data that you are
using to justify your conclusions. However, you don’t need to provide a full citation every time
you mention a fact or data from the case. You also do not need to reproduce any of the case
Exhibits.
Logistics:
Please complete this case individually. Do not consult with your classmates about your answers
to this case. All work you submit must be your own. Do not use any materials you find online
regarding this case. This assignment is due at the start of class on Tuesday, December 4th. No
late assignments will be accepted. Please be sure to put your section number and your name on
the front of the case and to staple the assignment or put it in a report cover. Please don’t wait
until the last minute to print the case. You may want to also bring a separate printed copy of your
case analysis to class that day so you can refer to it during our class case discussion.
You must also submit a copy of your report to the TurnItIn plagiarism detection detection
system, to which Stern subscribes, prior to the start of class on Tuesday, December 4th. This
requirement is to protect you, and the entire class, from anyone attempting to gain an unfair
advantage through plagiarism. As discussed in the syllabus, TurnItIn is able to detect when parts
of a written assignment are plagiarized from content available on the internet, from the public,
including magazines, newspapers, and journals, or from an assignment turned in to TurnItIn by
another student at NYU or any other university. When you upload your assignment on NYU
Classes it will automatically submit your assignment to TurnItIn. Do not wait until the last
minute to upload your case.
The text of your report should not exceed 5.5 pages in length, with double spacing and twelve
point, Times Roman font for the text. Please number each of your answers to Questions 1- 4.
Write and edit your report carefully. Part of your grade will be based on the clarity with which
you present your analysis, recommendations, and justification. Make sure you read through the
finished document yourself before you hand it in.
You are likely to get interested in Tesco, and other retail food chains, when you write up the
case. This is great and we will discuss what has happened to Tesco post the time of the case at
the end of our class discussion. However, please don’t use any information obtained outside of
the case in your case analysis, and don’t rely on any developments after the time of the case. Do
not make any assumption about what is the best course of action for Tesco based on the
marketing strategy that they actually used from March 2010 onward or based on their
performance in various markets including the U.S. since the time of the case.