Market penetration: this is where a company pushes its existing products to the already existent market. In the case of Tesco, it started off by selling groceries in the U.K. The consumers were already aware of the products and since there was not much competition, the company quickly saturated the U.K market. As it stands today, it has a market share of about 50% (Kathleen, 2006). In the last decade, the company has also manipulated its promotion and price techniques s as to win customers from their competitors (NGFL, 2008).
Market development: this is where a company seeks out new markets for already existent products. Tesco has been successful in this strategy whereby it has penetrated and opened markets for its products in the U.S., China and Japan. It has opened 14 branches in the mentioned places (Tescoplc, 2011).