History of TANSAŞ• Established in 1973, Konak, Izmir.• The aim of TANSAŞ that providing cheep meat & coal to

consumers.• In 2002, TANSAŞ incorporated Macrocenter to increase service

quality and productivity. • In 2005, Koç Corporation and Migros acquired share of Tansaş.• In conclusion, Tansaş has branched out in day by day.

POSITION OF TANSAŞ IN ITS INDUSTRY• In 1986, the number of stores of TANSAŞ was 12.• After that TANSAŞ set up more 18 stores.• In 2007, total numbers of stores reached to 253. And also total

fields of activities accessed 330,870 m2. • Therefore, Tansaş has provided customers with quality service in

the five regions of Turkey since 2007 such as Aegean Region, Central Anatolia Region, Mediterranean Region, Marmara Region, and Western Black Sea. Moreover, TANSAŞ was located in 26 various cities in today.

• Now, TANSAŞ has 265 stores ( 128 mini, 91 midi, 46 maxi).• In addition, TANSAŞ has continued to set up new stores every

passing days and also it targets to branch out on country-wide.

SİZE ( m2 ) STORES ( n ) SHARE OF SALES ( % )

< 250 36 18

251 - 500 24 19

501 - 750 9 10

751 - 1000 5 6

1001 - 1250 5 14

1251 - 1500 2 5

1501 - 1750 2 6

> 1750 7 22

Table 1 : TANSAŞ stores by floor size, 1996

• About sales volume of TANSAŞ increased to 327 trillion TL in the beginning of 2003.

• At the end of 2003, its sales volume reached 480 million USD.• In addition, TANSAŞ targets to achieve its probability 5,5

million USD. • TANSAŞ has 4.800 employees.• 80% food product, 14% detergent, cosmetics, and paper, 6%

non-food product.• 6.5 % private label ( Tansaş ).

VISION TANSAŞ is more different than its’ competitors. Because TANSAŞ has:• fresh products,• economical brands,• standard store formats,• unique services and modes of communication.

MISSION

TANSAŞ is in higherposition than itscompetitors according tovariety, economic, quality, andfreshness.

VALUES

TANSAŞ is a family whichis resistant against tointense work pressure andfocused on its customers.

SWOT ANALYSİS• TANSAŞ is a company which has a strong financial structure and is institutional. Also it aims to consistently expand. • Strengths: a strong financial structure, the strength of Doğuş Group, the facilities of raw material, experting and experience, providing a strong customer rights.

• Opportunities: customers’ expenditure growth, desire of impulse buying because of customers’ lack of time, protect customers’ rights, potential growth in retailing sector.• Weaknesses: low marketshare, adoption apparence of stores.• Threats: Sabancı Group, entering foreign capital in market, decrease profit because of competitors, customers’ price sensitivity because of increasing substitute goods.

STRATEGIES TANSAŞ has different features of strategies against to itscompetitors:• Differentation the concept of fresh product, private label, the concept of new store, the importance of customer right, good communication skill.• Segmentation four types of store format ( mini, midi, maxi, and exclusive such as

macrocenter ), target customer ( A – D1 Social-Economical-Status Groups), regional orientation (Aegean Region, Central Anatolia Region,

Mediterranean Region, Marmara Region, and Western Black Sea).

• Operational Productivity specialization, economies of scale, standardization, growth, multiplexing.

TARGET MARKETConsumers who want to buy quality product and do not care about packaging are the age high average.

Location Strategy It is one of the most important decision for a firm. It is significant impact on fixed and variable costs. If the firm selects the wrong location, it may not have enough access to customers, workers, transportation, materials, etc.

Therefore, selecting right location affects the company’s profit and overall success. Since, customers pay attention to convenience to do shopping. On the other hand, searching optimal location should be determined according to company’s needs and goals in order to maximize profit also at the same time minimizing costs such as establishing warehouses. In conclusion, TANSAŞ applies these strategies about its own location.

Pricing Strategy Reducing price is not a strategy but it is a tactic. It means that if the company wants to use ‘ reducing price’ as a strategy, it should enter to the market with low prices such as BIM, A-101,.. In contrast, using promotion, periodic reducing prices are used for a tactic. That’s why TANSAŞ uses reducing prices ( promotions ) as a tactic to decrease its stocks and increase profit. In addition, TANSAŞ presents private labels to customers with low prices. Private labels provide low costs for TANSAŞ without shelf payment and by a single packaging.

Communication Strategy Communication plays important role for between companies andcustomers. TANSAŞ communicates to its customers with advertisments ( tv,internet, billboards, posters, ect. ), promotions, junk mails, andcampanies.

In addition, customer services of TANSAŞ are great. For example; it facilitates to find goods for customers.

Store Atmospherics Strategy Store Atmospherics is another significant strategy for retailer.Inside and outside of stores should be attractive for consumers inorder to do shopping easily. TANSAŞ focuses on store atmospherics strategy. For instance; itprovides refreshing, warm, hygineical stores.

FİRMS ORGANİZATİONAL RETALİNG SHARE (%) TOTAL TRADE SHARE (%) STORE NUMBER

MIGROS 14,1 4,8 463

BIM 10,1 3,4 1075

CARREFOURSA 9,7 3,3 332

TANSAŞ 8 2,7 217

GIMA 5,3 1,8 81

KIPA 3 1 6

Table 2: Structure of Market before 2005

FİRMS ORGANİZATİONAL RETALİNG SHARE (%) TOTAL TRADE SHARE (%)

MIGROS/ TANSAŞ 22,1 7,5

CARREFOURSA/ GIMA 15 5,2

BIM 10,1 3,4

KILER / CANERLER 5 1,7

KIPA 3 1

Table 3: Structure of Market in 2005

COMPARISON WITH THE COMPETITORS WITH REGARD TO STRATEGIES

FİRMSPRODUCT MARKET

GEOGRAPHICAL MARKET

PROCUREMENT MARKET

CARREFOUR / GIMA < 1000 m2 < local

only one retailing market

MIGROS / TANSAŞ 300 m2 < local

separately product group

Table 4: The Definition of Markets

According to Statistics, In Migros and Tansaş, the average of customers’ ages is more than their competitors. Social responsbility is more significant for Tansaş. Food expenditure is much more in Şok. Dia sells more private label products than others. Consumers of CarrefourSA are interested in stock products. Tesco Kipa is a retailer which is done the highest expenditure by customers. The consumers mostly prefer to buy FMCG (fast moving consumer goods ) from BIM. Tesco Kipa has the most loyal customers in the retailing market.

CarrefourSA/Gima

Being high concentration of geographical markets; Ankara, Istanbul, Izmit, Bursa, Mersin.

Migros/Tansaş Being high concentration of geographical markets; Çeşme, Edremit, Kuşadası, Nazilli, Marmaris.

Migros/Tansaş• Tansaş is a leader in Aegean Region.• Migros is following to leader in Aegean.• Tesco Kipa works based on Izmir.• Tansaş is a strong firm in Aegean Region.• CarrefourSA and Gima are vital competitors of Migros/Tansaş

throughout Turkey.

Our General Evaluation Tansaş should take measures in time againts its competitorsso that Tansaş gets competitive advantages. Therefore, it shouldspend much more time in order to recognize its competitors suchas BIM, Kipa, DiaSA, Pehlivanoğlu, etc. In conclusion, Tansaşcan follow competitors’ strategies. For instance, Tansaş shouldpay attention to private label products. Tansaş should extend range of products so consumers canfind what ever they want. Tansaş should establish the shopping-mall ( like Kipa) and itshould take part in these places. Tansaş ought to set up Mini Tansaş in neighbourhood. (KipaExpress, BIM)

Tansaş should focus on standardization because of economies of scale, increasing productivity, decreasing stocks and reducing costs.

THE END

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