4.1 THE ROLE OF MARKETING: ACTIVITY C
1. Calculate Tesco Lotus’s sales in the Thai supermarket industry in 2008.
Sales = 31% x $35 billion
Sales = 10,850,000,000 dollars
Sales = 10.85 billion dollars
2. If Tesco Lotus’s sales increased by $2 billion in 2009, but the total size of the Thai
market increased by $10 billion, calculate Tesco Lotus’s 2009 market share.
Market share = (10.85 + 2) x (35 + 10) x 100%
Market share = 28.6%
3. Define ‘market leader’.
Market leader refers to a product, company or any organization that has the highest
percentage of total sales revenue in a certain market.
4. Explain two advantages Tesco Lotus might gain from being ‘market leader’ in Thailand.
One advantage of being a market leader in the Thailand would be having the highest
amount of sales compared to other competitors in the existing market. This certainly is
advantageous as this means Tesco Lotus is seen to be superior than their competitors,
allowing more opportunities to be available for the company. This also means that they
have the largest percentage of sales, thus the company is guaranteed to be profitable.
Another advantage would be having more opportunities to reduce its direct costs by
bargaining with the suppliers. As Tesco Lotus is the market leader in Thailand, automatically
their reputation is good, thus it will be easier to bargain with suppliers. For the suppliers,
knowing that Tesco Lotus is a market leader and that their sales are the highest, they will be
more reluctant into giving reduced prices for the company’s purchases due to both the
purchases’ volume and business security.
1. Calculate Tesco Lotus’s sales in the Thai supermarket industry in 2008.
Sales = 31% x $35 billion
Sales = 10,850,000,000 dollars
Sales = 10.85 billion dollars
2. If Tesco Lotus’s sales increased by $2 billion in 2009, but the total size of the Thai
market increased by $10 billion, calculate Tesco Lotus’s 2009 market share.
Market share = (10.85 + 2) x (35 + 10) x 100%
Market share = 28.6%
3. Define ‘market leader’.
Market leader refers to a product, company or any organization that has the highest
percentage of total sales revenue in a certain market.
4. Explain two advantages Tesco Lotus might gain from being ‘market leader’ in Thailand.
One advantage of being a market leader in the Thailand would be having the highest
amount of sales compared to other competitors in the existing market. This certainly is
advantageous as this means Tesco Lotus is seen to be superior than their competitors,
allowing more opportunities to be available for the company. This also means that they
have the largest percentage of sales, thus the company is guaranteed to be profitable.
Another advantage would be having more opportunities to reduce its direct costs by
bargaining with the suppliers. As Tesco Lotus is the market leader in Thailand, automatically
their reputation is good, thus it will be easier to bargain with suppliers. For the suppliers,
knowing that Tesco Lotus is a market leader and that their sales are the highest, they will be
more reluctant into giving reduced prices for the company’s purchases due to both the
purchases’ volume and business security.
