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(7) TESCO, when it entered the southern California market with their Fresh and Easy store concept, estimated that the market potential in this geographic market was $19.2 billion. Industry sales were $19.1 billion. There were eight established competitors in the defined product-market they competed in. Industry sales had been growing at less than 1% per year for the past few years with any increase primarily due to population increases. (a) At which stage of the "industry" product life cycle did TESCO enter the southern California market? Explain? (b) What do the market measurements suggest with regards to the need for pursuing primary or selective demand strategies? Explain? (Ch. 2 and Ch. 6 and Week Three and Week Five Lecture Notes)
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