TESCO, when it entered the southern California market with their Fresh and Easy store concept, estimated that the market potential in this geographic…

TESCO, when it entered the southern California market with their Fresh and Easy store concept, estimated that the market potential in this geographic market was $21.2 billion. Industry sales were $21.1 billion. There were six established competitors in the defined product-market they were to compete in. Industry sales had been growing at only about 1% per year for the past few years primarily from population increases. (a) At which stage of the “industry” product life cycle did TESCO enter the southern California market? Explain? (b) What do the market measurements suggest with regards to the need for pursuing primary or selective demand strategies? Explain?

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