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In time, Brazilian consumers could manifest all their potential to adopt new food products, since there is also a great cultural mix within the population. This could especially be true in the case of younger consumers due to globalisation issues. In that sense, although the studied samples presented slightly different socio-economic profiles the British respondents were older, more independent and living in a rural area, while Brazilian respondents were younger, dependent on their parents and mainly urban , there appears to be a confluence towards a standardized global consumption pattern.

The moderate willingness to try innovative food products and the low rate of food neophobia was found to be statistically similar in both cases even though some differences were expected.


Finally, the results of the survey provide strategic and unique information about consumers to the food industry. For managers in the food industry this could support the development of food products based on consumer perception towards innovation. This would also enhance the calibration of the scales for the international context. Research Limitations and Future Avenues. It is important to state that this study focused on the willingness to try innovative food products, with analyses based on a non-probability sample of students in Brazil and in the UK. Therefore, our findings apply specifically within the demographic characteristics of the samples, and descriptive generalizations in terms of the public at large must be treated with caution.

Future research will benefit from including other potential determinants of willingness to adopt new food, like economic and cultural factors, and from drawing on larger probability samples using, for instance, random sample selection techniques. However due to time and resource constraints it was not possible to accomplish this in this study. Although this is a relatively small-scale study, the results presented have been of value to inform the development of consumer orientated food innovation strategies.

Apparently, consumers identified cultural and ethnic foods as innovations despite the fact that these are actually food categories rather than innovative food products. Nonetheless, a product is considered to be an innovation if it is perceived as new by an individual or other unit of adoption Rogers, According to Michaut , there are different degrees and types of innovations, all consisting of a change compared to existing products, but offering considerable variation in the level of change. Innovations can follow a company's perspective newness to the company, technological newness or a consumer's perspective market newness, consumer's benefit newness.

From the company perspective, technological newness is challenging and critical, but risky; yet product market success is more likely to be affected by consumers' assessment of the product since they constitute the ultimate target of the product Michaut, In that sense, what consumers consider innovative food products might be the true treasure arch to food companies willing to succeed in such a dynamic market, i. The authors plan to keep on with future research to further investigate these open avenues.

Additional research could also explore differences within 'rural' and 'urban' consumers in regard to innovativeness, as well as other sociodemographics of interest. These sociodemographic differences may also be considered in public policies regarding food consumption. In addition, further research could investigate young consumers' buying and eating behaviour of snacks, drinks and ready-to-eat dishes, as it is expected that for this category they might act as the main decider. Finally, considering that half of the DSI items compare participants' behaviours to their friends it would be advisable to check the extent to which participants have such close relationships.

Willingness to try new foods as predicted by social representations and attitude and trait scales. Appetite, 43 1 , Cooper, R. New products: factors that drive success.

International Marketing Review, 11 1 , Costa, A. New insights into consumer-led food product development. Efficient product introductions: the development of value-creating relationships Report n. Flight, I. Food neophobia and associations with cultural diversity and socio-economic status amongst rural and urban Australian adolescents.

Appetite, 41 1 , Global Market Information Database. Consumer lifestyles - UK. Measuring consumer innovativeness. Journal of Academy Marketing Science, 19 3 , Goldsmith, R. R The domain specific innovativeness scale: theoretical and pratical dimensions. European Journal of Marketing, 26 12 , K Theory and measurement of consumer innovativeness: a transnational evaluation.

Grime, I. Hair, J. Multivariate data analysis 6th ed. Huotilainen, A. How innovativeness relates to social representation of new foods and to the willingness to try and use such foods. Food Quality and Preference, 17 5 , Hynes, N. Innovativeness and consumer involvement in the Chinese market. Singapore Management Review, 28 2 , McCarthy, M. Pre-identification of first buyers of a new food product.

British Food Journal, 11 , Michaut, A. Consumer response to innovative products with application to foods. Children's influence on and participation in the family decision process during food buying. Phau, I. Profiling fashion innovators: a study of self-concept, impulse buying and Internet purchase intent. Journal of Fashion Marketing and Management, 8 4 , Pliner, P.

Development of a scale to measure the trait food neophobia. Appetite, 19 2 , Ritchey, P. Validation and cross-national comparison of the food neophobia scale FNS using confirmatory factor analysis. Appetite, 40 2 , Roehrich, G. Consumer innovativeness: concepts and measurements. Journal of Business Research, 57 6 , Rogers, E. Diffusion of innovations. New York: Free Press. Souza, M. Revista Brasil Alimentos, 15 , Steenkamp, J.

Assessing measurement invariance in cross-national consumer research. Journal of Consumer Research, 25 1 , Consumer and market drivers of the trial probability of new consumer packaged goods. Journal of Consumer Research, 30 3 , A cross-national investigation into the individual and national cultural antecedents of consumer innovativeness.

Journal of Marketing, 63 2 , Tuorila, H. For example, Tesco have been very successful incapturing the leadership of the retailing market. This shows thatTesco designs and implements effective supply systems and 20 Tesco was the first UKgrocer to launch a loyalty card and has been the most effective.

Palmer claims that until recently, it was the only grocer touse the information to mail customers every month. Difficult for competitors to imitate highlights the need for a corecompetence to be competitively unique. This indicated theimportance of product differentiation. For example, for many yearsup to In Tesco has been recognised a leading UK foodretailer Tesco had a very strong position within the retailingindustry.

It had a different approach to the service concept,providing good corporate reputation and introducing new premiumquality products MarketWatch, Applying this framework to Tesco shows that the company in orderto be successful has to base its business strategy on thesecapabilities. Capabilities result from Tescos ability to combine andexploit these resources in uniquely different ways.

In the externalenvironment, the intensity of competition is not completely underthe retailers control, however, to compete effectively Tesco have toidentify its core competences and use them for companysadvantage. Culture generally tends to consist oflayers of values, beliefs and taken for-granted actions and ways ofdoing business within and outside the company.

Therefore, theconcept of cultural web is the representation of these actions takenfor granted for understanding how they connect and influence thestrategy Veliyath and Fitzgerald, ; Johnson and Scholes, It is also useful to understand and characterise both thecompanys culture and the subcultures in adaptation of futurestrategies. Culture can be analysed through the observations of how thecompany behaves, including routines, rituals, stories, structuresand systems. Tesco has a very friendly and supportingapproach in the routine ways that staff at Tesco behave towardseach other, and towards those outside the company that can makeup the ways people do things.

The control systems and 22 Therituals of the companys life are the special events, corporategatherings, which Tesco emphasises what is particularly importantand reinforce the way things are done. On-going meetings andcommunication at every level of the companys hierarchy representa strong internal environment.

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For a giant retailer, such asTesco, to obtain a sustainable competitive advantage they shouldfollow either one of three generic strategies, developed by Porter. The first strategy of cost leadership is one in which Tesco canstrive to have the lowest costs in the industry and offer its productsand services to a broad market at the lowest prices. This strategywill be based on the Tescos ability to control their operating costsso well that they are able to price their products competitively andbe able to generate high profit margins, thus having a significantcompetitive advantage.

If Tesco uses another strategy ofdifferentiation, than it has to try to offer services and productswith unique features that customers value. Tesco will be able tocreate brand loyalty for their offerings, and thus, price inelasticityon the part of buyers. Breadth of product offerings, technology,special features, or customer service are popular approaches todifferentiation. The last strategy of focus can be either a cost leadership ordifferentiation strategy aimed toward a narrow, focused market.

Inpursuing a cost leadership strategy Tesco focuses on the creationof internal efficiencies that will help them withstand externalpressures. In accordance to thisframework, while both overall cost leadership and differentiation 24 In other words, Tescopursues a strategy of cost leadership or differentiation either in aspecific market or with specific products. The danger some organisation face is that they try to do all threeand become what is known as stuck in the middle.

In case ofTesco it is not appropriate, as they do have a clear businessstrategy with a clearly defined market segment. Risk and value trade-offs are made explicit,leading to concrete proposals to add value and reduce risk. Explicit plans for action, including effective planning need to bedeveloped by Tesco as the strategic alternative. From the generic strategies discussed above, Tesco is likely toemploy two strategic options that are also likely to be primarymarket objectives of focus on market development thoughpartnerships and diversification through new product development.

Market Development Strategy: Joint Developments and StrategicAlliancesBy entering new markets like China and Japan it can serve as akey growth driver of the companys revenues and expansionstrategy. Tescos interests in Japan are likely to continue growingin due course, as Asian markets are showing an increase inconsumer spending and increased trend towards retailing. Thesenew markets are also demographically high opportunity markets. In the case of Tesco, one of the suggested strategic options is ininternational alliances with the local retailers in Asian markets.

Itwill be considered as a method of development and may beformed to exploit current resources and competence. By enteringinto joint ventures or partnerships, in order to gain a largereconomy of scale and larger market presence, Tesco will draw onthe extensive local knowledge and operating expertise of thepartner whilst adding its own supply chain, product developmentand stores operations skills to deliver a better shopping experienceto customers.

However, given the huge scale, potential andcomplexities of these markets, Tesco may feel that being the firstmover is not necessarily an advantage. The success of thepartnership will be related to three main success criteria: 26 Sustainability will beconcerned with whether a strategy addresses the circumstances inwhich the company is operating. It is about the rationale of thisexpansion-market development strategy.

The acceptability relatesto the expected return from the strategy, the level of risk and thelikely reaction of stakeholders. Feasibility will be regarded towhether Tesco has the resources and competence to deliver thestrategy. Product Development: DiversificationJohnson and Scholes believe that changes in the businessenvironment may create demand for new products and services atthe expense of established provision.

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Ansoffs matrix alsosuggests that if new products are developed for existing markets,then a product development strategy has to be considered by themanagement level of a company. In expanding and diversifyingTescos product mix, it is also crucial to implement internaldevelopment when new products are developed. The nature andthe extent of diversification should also be considered in relation tothe rationale of the corporate strategy and the diversity of theportfolio.

By following the changing needs of the customers Tesco 27 The retailing industry is experiencing overcapacity and innovativeservices and products being the major competitive advantage. Therefore, innovation has to be a major driver for Tescos productdevelopment. For example, Tesco can develop a portfolio ofdifferent store formats in the UK, each designed to provide adifferent shopping experience.

While the majority of EasternEuropean and Far Eastern outlets are hypermarkets, Tesco canalso develop different store types in these markets as well. Thisvalue added by the uniqueness will eventually lead Tesco tocommand a premium price. The management of technologicalinnovation is increasingly involved in strategic decision-making. Tesco have to exploit their internal strengths and minimise theirinternal weaknesses in order to achieve sustained competitiveadvantage Although a competitive advantage is the goalinnovators want to achieve, the ability to create platform s depends on how they could manage the innovation.

Nevertheless,it does not mean that the innovator has to possess all requisitecapabilities, the important thing is the ability to organise and usethe capabilities of others in order to create a business platform. It had fostered powerful identities bymaking their retiling concept into a virus and spending it out intothe culture via a variety of channels: cultural sponsorship, politicalcontroversy, consumer experience and brand extensions.

In a rapidly changing business environment with a highcompetitors pressure Tesco have to adopt new expansionstrategies or diversified the existing in order to sustain its leadingmarket position in an already established retailing market. Thecompany must constantly adapt to the fast changingcircumstances. Strategy formulation should therefore be regardedas a process of continuous learning, which includes learning aboutthe goals, the effect of possible actions towards these goals andhow to implement and execute these actions.

The quality of aformulated strategy and the speed of its implementation willtherefore directly depend on the quality of Tescos cognitive andbehavioural learning processes. In large organizations as Tesco strategy should be analysed andimplemented at various levels within the hierarchy. These different 29 Tescos strategy at a corporate level defines the businesses inwhich Tesco will compete, in a way that focuses resources toconvert distinctive competence into competitive advantage.

Its multi-format capability means that it will continue 30 The deal has turned Tesco into the countrys second biggestconvenience store chain after the Co-operative Group, and thecompany also plans to open up 59 new stores in the UK this year. Tescosinternational business segment is growing steadily, and ispredicted to contribute nearly a quarter of group profits over thenext five years. If geographical spread continues to grow, this willensure Tescos continued regional strength. Insurance: In fiscal Tesco Personal Finance reached themilestone of one million motor insurance policies, making it thefastest growing motor insurance provider ever.

The groups instant travel insurance allows Clubcard holders to buytheir holiday insurance conveniently at the checkout. Petinsurance now has over , cats and dogs covered, while the 31 Tesco online: Tesco. With over a million households nationwide having usedthe companys online services, the company has a strong platformto further develop this revenue stream. Tescosinnovative ways of improving the customer shopping experience, 32 UK market leadership reinforced: Since acquiring number oneranking in , Tesco has developed a successful multiformatstrategy that has accelerated its advantage.

Also the Competition Commissionsreport makes it very difficult for a competitor to challenge its scaleand has effectively scuppered Wal-Marts chances of stealing UKleadership. Therefore, Tesco is in an enormously strong positionin its domestic market. WeaknessesReliance upon the UK market: Although international business isstill growing, and is expected to contribute greater amounts toTescos profits over the next few years, the company is still highlydependent on the UK market Whilethis isnt a major weakness in the short term, any changes in theUK supermarket industry over the next year for example, like theMorrisons group successfully purchasing the Safeway chain couldalter the balance of UK supermarket power, and affect share.

Debt reduction: Tesco is not expected to reduce its debt until atleast Tesco has a large capital expenditure program mainly 33 Since its expansion is so aggressive, Tesco has little free cash forany other operations. Also, itsproduct range is vast and almost any acquisition can be justified,particularly in the UK. While fill the gap strategy would be usefulto the company, as has been the case with the UK conveniencemarket, there is the danger of Tesco becoming a serial acquirer, asthis tends to reduce earnings visibility and quality. It can use itsfootfall and low cost structure together with improvedmerchandising skills to add another leg to growth.

Equally, itsgrowth overseas will further increase earnings and scale, takingTesco onto the virtuous circle of growth. It is estimated thatTescos non-food sales will double over the next four years. Its aim to be as strong in non-food as we are in food, nolonger sounds like the consultancy-speak that it once did, and theyare getting there using the basic tenets of value, choice andconvenience that have been so successful in food.

The companys telecoms venture is the latest stage in its strategyto develop popular retail services. It has repeated its approach inbanking, by capitalizing on its brand.

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  • Health and beauty: Tescos UK health and beauty rangescontinue to grow, and it is currently the fastest growing skincareretailer in the market. The company has a volume market-leadingposition in both toiletries and healthcare and is number one retailerin the baby goods markets. Hackney, R. Hadad, M. Haile, G.


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