SUPPLY CHAIN

Tesco to Expand in India

BY CSA STAFF

London Tesco announced on Tuesday plans to open wholesale grocery stores in India that will supply goods to hypermarkets owned by Indian conglomerate Tata Group.

“This is another exciting development for Tesco,” the group’s chief executive Terry Leahy said in a statement. “It complements our entries into China and the United States, giving us access to another of the most important economies in the world. Our wholesale cash-and-carry format will bring improved value, range and service to thousands of Indian businesses.”

Tesco said it would invest up to 60 million lbs. (USD$114 million) over two years to help develop its wholesale business.

“Based initially in Mumbai, the business will benefit from over a decade of experience of setting up local businesses in international markets,” the company said.

Tesco also said that it was entering into an “exclusive franchise agreement” with Trent, the retail arm of Tata Group. Trent will pay a fee to Tesco in return for retail and technical support as the former aims to grow its number of Star Bazaar hypermarkets to 50 from four presently over the next five years.

“We are delighted to be working with Tata, one of India’s largest and most respected business groups,” Leahy added in the statement.

“Our agreement will enable us to share our international retail expertise, supporting Trent in the development of their Star Bazaar hypermarket business and benefiting Indian consumers.”

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Trend Tracker: Coca-Cola hydrates

BY CSA STAFF

Energy drinks have been a dynamic category as products reinvent themselves. Coca-Cola now is emphasizing functionality with the launch of Full Throttle Hydration, a new, non-carbonated energy drink that offers both electrolytes and a unique energy/vitamin blend.

A tropical mix flavor already has rolled in 16-ounce aluminum cans (pictured) throughout the Southeast. The product debuted with an official sponsorship of the 2008 Full Throttle Hydration Kiteboarding tour in Miami, Ft. Lauderdale, Delray Beach, Destin and Daytona, Fla., over the July 4th holiday weekend.

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Sears, Kmart aim young in new campaigns

BY CSA STAFF

Marketing to teens now takes innovation and some unusual promotions. The latest generation of children is the most tech-savvy yet, so to market to these kids, retailers have to hit them where they dwell—cyberspace. And one company that has shown a great willingness to push the envelope with teen marketing is Sears Holdings.

Kmart, through a partnership with YouTube, is encouraging ‘junior fashionistas’ to share their unique back-to-school style and personality. Teens can enter the “Show Your Back-To-School Style: Get in the Commercial” contest at www.Kmart.com/YouTube from July 18 to Aug. 17, by uploading 30- to 60-second commercials that demonstrate how Kmart works with their unique style. The top 20 videos will be featured and voted for on YouTube through Sept. 1. The winning commercial will be professionally produced and aired on TV.

Sears, which launched a prom campagin on teen networking site Facebook several months ago, has also entered into BTS partnerships with several big names in youth interactive marketing. To ensure that its message of “Don’t Just Go Back. Arrive.” resonates, the retailer has collaborated with 13 Web sites to create virtual worlds and social networking applications that direct teens to its “Arive Lounge,” www.arrivelounge.com , which features exclusive, interactive content from Sears’ 2008 back-to-school offering.

Also tapping into the “High School Musical” phenomenon, the retailer’s campaign features Vanessa Hudgens and her latest music videos where she is shown in an array of Sears BTS fashions.

The new marketing initiatives seem to have bypassed parents and instead are targeting tweens and teens directly. Choosing to tout their latest styles in the virtual world, Sears and Kmart are helping to get kids excited over the coolest looks for BTS and are allowing them to direct their parents to the stores of their choice.

“Expanding our marketing strategy into the online world…is a critical means of developing engagement and brand loyalty within the youth demographic,” said Richard Gerstein, Sears’ senior vp and chief marketing officer. “By modifying our strategy to reach tweens in their own environment, we are demonstrating to them how Sears can be a part of their lives, from their entertainment to their school wardrobe.”

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