Blog
Is the Tesco Tablet Doomed to Fail?
19th August 2013
Imagine the scene. You've left what looks like your most promising Christmas present to open last. The package indicates something tablet-sized & the box feels pretty sturdy. You asked Santa for a tablet computer - so this looks promising....
As the wrapping paper comes off to reveal a Tesco Tablet, one challenge might be to feign delight at the gift. If you're like me, you might find that pretty hard. I mean, who would want a Tesco Tablet?
Tesco - that's who - if the newspaper reports are to be believed.
Tesco's product and market strategy is going through some pretty dramatic change at the moment as it struggles to restore its track record of profitable growth. The Tesco Tablet story is just one part of an attempt to reconfigure the struggling Tesco retail stores which now seem to be a burden on the business (particularly the larger ones) as more of us shop for groceries online and buy our non-food products from online giants like Amazon.
If Tesco is to make a success of the tablet launch then it will have to compete on price. A price tag of £100 has been suggested which would make the Tesco Tablet substantially cheaper than the likes of the iPad, Samsung Galaxy Tab, Google Nexus or other competing products. Product distribution wouldn't be a problem either given Tesco's strong market share and well-developed online capabilities.
But would you really buy one? Is price really the most important factor in determining the demand for tablet computing? I guess the answer is..."it depends". Perhaps there are many consumers in Tesco's customer base for whom price is the most important part of the mix and for whom a low entry price would be attractive.
But I suspect the majority of potential and existing tablet consumers are looking for something more. Branding; app ecosystems; style and design quality.
So, if you're thinking of getting me a Tesco Tablet for Christmas, please think again. Socks, a tie and some Old Spice will do fine.