Tesco 2011 Annual Report Download - page 44

Why are we building brands?
Building brands enhances the value of our business by benefiting
all of our stakeholders, including customers, staff, communities and
shareholders. Being viewed positively by our stakeholders supports the
creation of a successful, sustainable and profitable long-term business.
What’s the benefit to both our stakeholders and our
Company of building brands?
By building strong brands through our own products, we offer
customers increased value, choice and quality. Customers trust our
brands. They are loyal to our brands because they know what to expect
from them and what they stand for. With wine, for example, the Finest
logo helps customers to pick out a good quality option without having
to be a connoisseur.
Strong Product and Pillar brands give us a key point of differentiation
from our competitors and enable us to continue to meet the changing
needs of our customers. Once customers understand the values
that our brands stand for, they are more likely to trust in our ability
to diversify into new service areas. In financial services, for example,
with Tesco Bank we’ve brought straightforward and good-quality
banking solutions based on the needs of our customers to a market
characterised by complexity and poor customer service.
Wherever we operate we support local communities, their causes
and the environment. Through initiatives such as our Community
Champions programme, Get Healthy with Tesco Lotus in Thailand
and the UK Tesco Great School Run, we’re known to be a good
neighbour. By benefiting local communities, our brand has taken
on new meaning among stakeholders – that of a responsible retailer.
By developing a brand reputation for offering great value and service
to customers and being a responsible member of the community, we
can attract great people to work for us. As a responsible and flexible
employer with a track record of developing talent within the business,
Tesco is also seen as a great place to build a career.
The increased emotional and functional loyalty from customers,
staff and communities generated by our brand building has contributed
to Tesco becoming a profitable, sustainable growth opportunity
for shareholders to invest in. Investment provides us with further
opportunities to build and develop our brands across the Group, in turn
allowing us to diversify to the benefit of customers, staff, communities
and shareholders.
Homeplus
received South Korea’s Most
Admired Company award in
October 2010
The increased emotional and
functional loyalty from customers,
staff and communities generated by
our brand building has contributed
to Tesco becoming a profitable,
sustainable growth opportunity
forshareholders.
We launched our clothing brand F&F in the
UK in 2001 with the aim of offering unbeatable
value for money, not compromised by quality,
design or provenance. F&F is now available
in over 450 stores across the UK and is also
available online.
As awareness and popularity has grown in the
UK, we’ve also extended the brand – launching
F&F in nine other markets across Europe and
Asia. F&F is already the market-leading clothing
brand in the Czech Republic, Hungary and
Slovakia. As the brand continues to develop,
we opened our first stand-alone F&F store
(above) – in Prague – this year.
As customers have begun to gain confidence
in the F&F brand, we have also broadened our
range – with sub-brands such as F&F Basics,
F&F Couture (above) and F&F Petite and
extended the brand into homeware with a
good, better, best hierarchy under F&F Home
Basics, F&F Home and F&F Home Collection.
F&F
40 — TESCO PLC Annual Report and Financial Statements 2011
BUSINESS REVIEW
Building brands