| Retailing and Wholesaling 405

Chapter 13 | Retailing and Wholesaling 405

needs bigger store numbers to defray that expense across more

3. Evaluate Tesco’s research efforts for the U.S. market. Did this stores. Indeed, the U.S. arm of Tesco lost $260 million on $550 mil-

research help or hurt?

lion in sales this year.

4. Will Fresh & Easy succeed or fail in the long term? Support Many analysts now speculate as to what will happen with Fresh

your answer.

& Easy as the economy shows signs of improvement. Leahy pre- dicts that by the time he steps down in March 2011, the economy

5. What recommendations would you make to Tesco for Fresh will have seen a “strong recovery.” But many economists and an-

& Easy?

alysts aren’t so optimistic about what the future holds for the gro- cery business. Dave McCarthy, a Citigroup managing director and

Sources: Simon Zekaria, “Leahy’s Work Not Yet Done,” Wall Street Jour- former Tesco employee, provides cautionary advice for Tesco. “The

nal, June 8, 2010, accessed at www.wsj.com; Paul Sonne, “Tesco’s CEO- sector is heading for its most difficult time in many years. Open- to-Be Unfolds Map for Global Expansion,” Wall Street Journal, June 9, 2010, p. B1; Judie Lannon, “Every Little Bit Helps: Fresh & Easy Brings 21st

ing programs are doubling, industry like-for-likes are currently Century Retailing to the US,” Market Leader, Autumn 2007, accessed at negative, and discretionary income is falling. And there’s uncer-

www.marketing-society.org.uk; Jeffrey Ball, “Tesco to Launch U.S. ‘Green’ tainty on how Tesco will deal with the changing industry environ-

Grocer,” Wall Street Journal, September 24, 2009, p. B4; Matthew Boyle ment. It will be interesting to see if [Tesco] maintains long-term

and Michael V. Copeland, “Tesco Reinvents the 7-Eleven,” Fortune, No- commitment to the United States if it continues to drain profits.”

vember 9, 2007, p. 34; Liset Marquez, “Customers Line Up at South On- tario Fresh and Easy,” Inland Valley Daily Bulletin, December 2, 2009,

Questions for Discussion accessed at www.dailybulletin.com.

1. Describe Fresh & Easy according to the different types of retailers discussed in the chapter.

2. As a retail brand, assess the Fresh & Easy retail strategy with respect to segmentation, targeting, differentiation, and positioning.

Part 1: Defining Marketing and the Marketing Process (Chapters 1–2) Part 2: Understanding the Marketplace and Consumers (Chapters 3–6) Part 3: Designing a Customer-Driven Strategy and Mix (Chapters 7–17) Part 4: Extending Marketing (Chapters 18–20)

Communicating

Customer Value Integrated Marketing Communications Strategy

Chapter Preview the need for integrated marketing communications. Finally, we discuss

In this and the next four chap-

the steps in developing marketing communications and the promotion the marketing mix tools—promotion. Companies must do more than

ters, we’ll examine the last of

budgeting process. In the next three chapters, we’ll present the spe- just create customer value; they must also use promotion to clearly and

cific marketing communications tools.

persuasively communicate that value. Promotion is not a single tool Let’s start by looking at a good integrated marketing communica- but, rather, a mix of several tools. Under the concept of integrated

tions campaign—the “Häagen-Dazs loves honey bees” campaign. marketing communications, the company must carefully coordinate

From TV and print ads and an engaging Web site to public affairs and these promotion tools to deliver a clear, consistent, and compelling

grassroots community events, the campaign employs a rich mix of pro- message about its organization and its brands.

motional elements that work harmoniously to communicate Häagen- We begin by introducing the various promotion mix tools. Next,

Dazs’ unique message and positioning.

we examine the rapidly changing communications environment and

Häagen-Dazs: A Beautifully Integrated Marketing Communications Campaign

H beating each other up on price in an increasingly frugal market- .helpthehoneybees.com, a kind of honey bee central where

äagen-Dazs is one of today’s top-selling super pre- Häagen-Dazs has created a full-fledged, beautifully inte- mium ice cream brands. But only a few years ago,

grated marketing communications campaign, using a wide the brand teetered on the verge of commodity sta-

range of media and PR elements that work harmoniously for tus. A glut of top ice cream brands had turned to