Write a 7 pages paper on segmentation in food retail: tesco and muslim loyalty.

Write a 7 pages paper on segmentation in food retail: tesco and muslim loyalty. Given the trend toward globalization and international expansion of markets, modern retailers are faced with increasing competition as well as the need to expand their products and services to appeal to broader market segments. This process is requiring retail grocers to identify and target specific ethnic market segments. In the same way that US retailers have successfully targeted Hispanic consumers, international retail grocery companies such as Tesco must focus on diversifying their product line and successfully marketing to significant segments such as the Muslim community.

According to the company, Tesco is one of the worlds leading international food retailers with over 2500 stores worldwide and a commitment to long-term growth (Tesco: At a Glance, 2006: 1). In fact, it has been called the “success story” of British supermarket retailing whose industry leadership has been widely accepted (Kacker & Sternquist, 1994: 202). This places the organization at the forefront of market development because its broad reach locates its outlets in many different markets with an extremely diverse customer base. In those areas which have high concentrations of devout Muslims, this means offering a product line that comports with the strict dietary laws known as Halal. There is no doubt about the fact that the Muslim community has significant economic power. in France, it is estimated that if the 60 million Muslims who reside there would consume and purchase only Halal meat, the product could account for 10% to 15% of the French national meat market (Kutschera, 1996: 40). Given Tesco’s stated corporate responsibility policy, which notes the organization’s intent to appeal to customers across many social and economic ranges as well as use their size and success as a force for good in playing an important role in local communities, Tesco has given itself no choice but to develop products that will appeal to this constituency (Tesco: Corporate Responsibility, 2005: 1).