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Comparative Analysis Of Tesco Marketing Strategies And Activities Marketing Essay


The study focuses the marketing strategies adopt by the TESCO and its own evaluation with other creation, business and non-profit organizations. It also looks into linkages between the functions at these organizations and their online marketing strategy. It demonstrates in current ever-changing and challenging market companies with different record have to adopt different marketing strategy to get the advantage over competitors. These businesses and organizations have to link their operations with this marketing strategy in order that they could meet the maximum customer satisfaction. TESCO has a competitive edge over its competitors in retail market as its implementing diverse strategies in operation as well as in marketing. TESCO is utilizing modern tools effectively.


Marketing is ways to add your product to your targeted customers in any market. Today's business world requires every business to look at a workable marketing strategy in order that they could achieve competitive advantages over their rivals and could generate higher sales and profits successfully. There will vary ways adopted by all the companies to increase their reach in markets. This marketing strategy should be intense and effective. With this assignment we are going to study the approaches used by the TESCO which is one of leading shop in UK. We will also research the difference of approaches followed by TESCO comparing to the other developing companies, service and non-profit organizations. The task will answer following four questions parted into three responsibilities, which receive below:-

Task 1 (A)

Understand and critically appraise the importance of marketing within the development of business ideas and strategies at Tesco plc.

Task 1 (B)

In the article you must also evaluate and analyse the operations of market development in the strong retail business environment in which the company (TESCO) works.

Task 2

Critically evaluate, appraise and analyse the place of information systems and new technology in growing business and marketing strategies and planning at Tesco plc.

Task 3

Evaluate and analyse the linkages between marketing and businesses in processing, service and not-for-profit organisations to compare how these organisations undertake marketing.

The focus of this study is to understand the concept of marketing in general with concentrating on the strategy and activities used by the TESCO. It will also help us in understanding the dissimilarities of marketing strategies followed by different sorts of business and organizations like making, services and non-profits.

1. 1 Background

Founder of TESCO Jack Cohen, has started this business when he started to sell groceries in East London in 1919. The first day's income was 1 Pound. The business could lead him to sell his first product in his own brand of Tesco in 1924. This name has come from both first words of TE Stockwell, and Co from surname of Jack. In those start, Jack Cohen acquired somebody in company of tea as a company, TE Stockwell. In 1929, Cohen could start his first store in Burnt Oak, Edgware in north of London. Tesco has become plc in 1932. A specified land has been bought in north of London at Angel Road, Edmonton for building a new head office and warehouse in 1934. (www. tescocorporate. com)

Annual sales on Tesco touched landmark of 1 billion Pound in the year 1979. It exceeded to two billion Pound in the year of 1982. Same yr for first time Tesco put some computerize checkouts in its stores. In the entire year 1985, Tesco became the first grocery store retailer which began emphasizing on vitamins and minerals of its brand products through an initiative named as 'Healthy Eating'. In 1991 it became the largest unbiased petrol retail retailer in Britain. Next season it launched more new products and services which included Tesco Organic range, computer systems for institutions and 'Every little Helps'.

Tesco has widened its market on yr, 1988 and 1999. Tesco better customer support through lunching 'Customer Champions' coverage in stores; it became head in organic merchant for the united kingdom market. Tesco went to South Korea, Thailand and Taiwan. But later Tesco exited the Taiwanese market and it shifted to Czech Republic in 2005. Adopting the diversification strategy, a store under name of 'Tesco Homeplus' premiered in 2005. In 2009 2009 club cards re-lunched in the united kingdom with a big investment of 150.

Figure 1 shows Tesco throughout the world

Website Tesco. com is the world's most active online supermarket and in yr 2009 the group experienced sales of more than 577 million, with increase of 29% on yr 2008. Tesco online greatly runs with over 270 stores around the UK, covering 96% of the web retail market. Believed more than one million households nationwide using the web service, the company has a solid platform to help expand develop this income stream. Anon (2004)

1. 2 What is marketing?

Marketing is the organized approach of selling goods, adopted by any business and not for-profit corporation with a specific communication. It always attempts to raise the business ability to create profits, whether these are financial (revenue and donations) or electoral.

Tesco's strategy is very clear, with the development as aim for from four areas - the central UK business of grocery store, non-foods, international retailing services and development other services such as financial, the dotcom and telecommunication.

2 Job 1 (A)

Understand and critically appraise the value of marketing within the introduction of business plans and strategies at Tesco plc.

2. 1 TESCO's Marketing Strategy

The online marketing strategy involves analyzing the marketplace, and deciding which product to offer and the exact what selection of the clients to be matched, considerations relating to fashion, months, sizing, as well as the appropriateness. Tesco decide that there will be a particular 'main' European range of green products that are exported throughout the European countries, while there would be another range for local customers. However before any decisions are made about online marketing strategy, a detailed market research is undertaken to check the idea of the new range, the charges, behaviour towards Tesco, the new Alliance with companions, purchasing habits of the customers.

TESCO adopts promotions for marketing the business, such a advertising campaign would consisting of

TV and radio advertising at regular intervals.

Advertisements in media papers and magazines.

The alliance spouse making press releases and sharing about their ventures on their national and regional marketing benefits Tesco.

Company benefits in creating thousands of new jobs.

The introduction of environmentally friendly of products.

Billboard promotions.

Internet advertising campaign.

Direct marketing to known customers (Membership cards)

Tesco has a successful history since years of its start. Today, Tesco Plc is an effective retailer in britain. Tesco has put some group of functional marketing strategies. Corresponding to Ansoff matrix strategy, Tesco could develop its markets and products in the UK market, and eventually with diversification strategy offers before other rivals. Ansoff, I. (1989), by applying these different strategies, Tesco successfully received its competitive advantages over it other rivals. In the UK, the groceries market has been on the list of major businesses. Now Tesco is also acquiring the large market shares in this ever-changing global merchant market.

Figure - 2 implies that the strategies might be applied by Tesco regarding to Ansoff matrix and vertical integration has been successful.

2. 2 Activity 1 (B)

In the record you must assess and analyse the procedures of market development in the active retail business environment in which the company (TESCO) functions.

TESCO has an extremely successful business background on its record, today it is most successful merchant in the United Kingdom. The position of Tesco among other rivals in UK shows that company successfully applied its designed marketing strategies. As an evergrowing merchant, TESCO could easily take over from its other rivals and could be on a unique advantage outrageous hundred profitable businesses in UK. Tesco has applied some series of experiential marketing ways. Market incursion, Product improvement, Market improvement and Diversification will be the strategies through Tesco have put affect which is remaining on top on the market. By applying effective strategies, Tesco has effectively received its competitive benefit among other retailers.

2. 2. 1 Market Penetration strategy

In order to have success, Tesco has a three way strategy. First, Tesco always takes customers from other competitors like ASDA, Sainsbury's, Morison and Somerfield, etc. Second, by giving the product quality product and higher level of services, Tesco could attract and keep more customers, where these Tesco's customers feel that Tesco is a good service provider. This example makes the variation among Tesco and other competitors. Third, appealing to to more non-users of products and services for some business, by using of advertising and promotion or other marketing strategies, these would be competent procedures (Ansoff, 1989, Lynch, 2003). Regarding to Lynch, Marketing Penetration strategy is vital for Tesco because retaining existing customers is cheaper than appealing to new one. (Lynch, 2003).

For example, Tesco's international extension strategy has taken care of immediately meet the maximum needs of customers. it is very sensitive to local goals in other countries, by getting into joint projects with local lovers, such as Samsung Group in South Korea (Samsung-Tesco Home plus), and Charoen Pokphand in Thailand (Tesco Lotus), appointing a very high percentage of local workers to management positions. (Tesco Initial Results 2006)

Tesco is accessing to the lowest cost materials for resource and efficient creation to effect the retail market. By popularity of low priced supplier, it is just a privilege for Tesco to provide goods and services to its customers benefitting at cheaper prices in the town. Tesco Having good connection with dealing with much larger size and diversity of the clients and customers' satisfaction that is essential for Tesco as a merchant to hold on to it on the market. TESCO successfully has created its Brand devotion.

Tesco works as Internet system service provider (ISP), it's now in cellular phone and home mobile business, and Volp businesses. Tesco in joint venture with O2 could build up diversification in telecommunication and it could increase it businesses in voice over internet with Freshtel Australia. It creating a success slogan of

The right message

To the right audience

At the right time

2. 2. 2 Marketing and Sales

Loyalty programs for example Tesco Clubcard are available through it advancements that discourage the clients from switching over to their competitors. Tesco also offers presented a 'Greener Living Scheme' to give consumers guidance on environmental issues, like how to lessen food waste material and food carbon grades when you are preparing dishes.

2. 2. 3 Services

Tesco has been implementing a dual insurance plan of cost leadership and diversification, which resulted in importance positioned over the client service. Drawing upon this dual strategy is exhibited through the development of self-service kiosks, financial services, focused immediate marketing and offers. The relative examination of the value created by the best four supermarket chains, i. e. , Tesco, Asda, Sainsbury's and Morrisons has been provided. (Keynote (2010),

3 Process 2

Critically examine, appraise and analyse the area of information systems and new technologies in producing business and marketing strategies and planning at Tesco plc.

3. 1 Place of Information system and Technologies

Information system is modern day business tool which helps businesses to connect internally and externally with success. It also includes the use of current advanced solutions. Any business which gets starts off these days necessary to adopt proper and effective information systems that links not only the all internal elements of business but connects business with its markets. The usage of new technologies provides company edge over its competitors. The primary question always remains for managers how they effectively utilize existing information systems and technologies.

According to its website, Tesco maintains business romantic relationships with roughly 2, 000 own-brand most important suppliers from less than 100 countries. (www. tescocorporate. com)The current achievement of Tesco could be supportive with their declare that Tesco logistics management strategy always really helps to gain its competitive benefits. Tesco respects to the united kingdom Government's statutory Company Code of Practice, and it holds rigid execution on moral trading and commercial procedures, and other conducts of ethical trading like training to all commercial staff.

Superior performance of the computer-controlled logistics techniques is seen in Tesco (Fernie and McKinnon 2003). its e-tailing is a key marketing and sales activity, placing grocery store order over the website that operate in highly computerized central warehouses and automated logistics is more skilled as to assess against with other groceries in the market. Tesco looking for strengthen its marriage with suppliers and increase market show predicated on the characteristics of services (e. g. , intangibility, heterogeneity, simultaneity, and perish potential). (Thompson and Strickland 2003) Various Marketing and Communication Means Adopted by TESCO to create this relationship more effective and profit structured. These means included pursuing ways of communication:-



Radio/Digital Radio




On surfaces at stores TESCO effectively get benefits from modern technology from security purposes like security alarm systems, mechanical entry doors, self scanning machines for customers (which will save you their time from being into large lines for payments) towards other advanced like CCTV. You can find swift transporting system within stores to supply from warehouse at store.

In a quickly shifting business environment with ruthless from its opponents Tesco have implemented new enlargement strategies and diversified the present order to sustain its market position as leader in retailing market. In light of the above mentioned analysis, it may easily be concluded that Tesco is holding its leadership position effectively within the highly unpredictable retail market, where all companies are required to follow both cost leadership and diversification strategies. Tesco effectively has had the opportunity to understand both with the help of a trim and agile resource string management, effective marketing strategy combined with the better use of information technology and new developed systems.

4 Job 3

Evaluate and analyse the linkages between marketing and procedures in creation, service and not-for-profit organisations to compare how these organisations embark on marketing.

4. 1 linkages between marketing and operations

In organizations and businesses, whenever a new manager starts off its business plan or operational plan for the first time he wonders about: What's the real goal? What am I heading to achieve? What's my online marketing strategy? He is able to answer each one of these questions in line with the aspect of company or business. He concentrates the seeks and targets through a working plan and supports that plan with a powerful workable marking strategy that makes the organization or company very visible in the market. The main purpose of marketing is to bring development in the business or services also to obtain the attention of beneficiaries or consumers. Various businesses and organizations take up different marketing techniques corresponding with their needs.

For example if we visit a limited linkage between marketing and developing it tells a processing company always looks for the value-added opportunities. It ensures with the aim of the right processing functions are existing to meet certain requirements of customers. It also focuses that close to- and long-term requirements has been put in to the formation of manufacturing strategies, inventory strategies and materials handlings. Essentially making strategy should be aligned with online marketing strategy. It ought to be developed in manner that enhances the viable capacity for the organization. Furthermore simple inter-functional co-ordination, manufacturing and marketing strategy decisions must be united and linked to the company strategy. In their empirical study of new businesses, conclude that the synergy between marketing and developing strategy decisions is more strongly related to business success than either marketing or production decisions by itself.

In businesses or 'non-profit' organizations show holder improvement is not the main purpose, return on investment is less of adding resource running a business planning, however a essential necessity. Here return on investment is not major motive of the business enterprise. Instead the primary motive of enterprise may be some other purpose. Thus, the primary difference between marketing products or services is that there is much more personal contact required when marketing something in comparison with marketing products. Marketing services may require meeting the customer in a face-to-face basis, or it may mean contacting prospective customers over calling.

For those companies which always stress product qualities those aren't taking seriously interested in the significant correlations with the marketing strategy. While firms which emphasized cutback in costs, they always give attention to increasing the sales. Firms which put higher emphasis on the merchandise design effort those point out three marketing strategy factors: a big change in the merchandise line boosts sales work, and helps in new market development. This romance seems rational, as the focus on product design and its own development will lead to opportunity in new marketplaces or for new customers.

All those activities which impact the circulation of goods and services from manufacturers or service deliverer to the users or individuals are part of marketing. While in advanced industrial economies like UK, marketing strategies play a primary role in formatting corporate policy. Once worried about increasing sales through marketing and other promotional techniques, corporate and business or corporation marketing departments these days concentrate on product development, credit guidelines, distribution, customer support, and internal marketing communications. Different organizations or business choose different options for marketing and hook up the marketing and functions to increase their output. Desire to is same to get maximum attention from customers or beneficiaries.

5 Conclusion

There will be more than six billion humans who are surviving in this global market which is often inviting business and organizations to market their product, services or make them benefited from some social and developmental work. It is estimated that there are 900 million Computers worldwide. 44% of UK parents use SMS texting on a regular basis, compared with 36% who make an online search. 63% of Us citizens are not prepared to give their mobile and there are 1. 3 billion Internet users, 1. 5 billion Television homes, 3. 3 billion mobile clients, Average the perfect time to record a lost wallet 26 hours and average a chance to report a lost mobile, 68 minutes. That presents the competition and difficulties for companies to adopt workable marketing strategy for companies and organizations.

Tesco is quite in a position to recognize technical changes and infrastructure especially on its e-tailing business. Apart from Tesco's use of internet as major technological infrastructure, changes should be expected or the management can package with the quick changes in technologies. Tesco must improve technical infrastructures through enhancements to increase efficiency as well as quality of the merchandise and services. All in all, Tesco's senior executives who think about how precisely to establish and maintain competitive edge using logistics strategy should think about how to tailor their own logistics. To do so, they will desire a sound understanding of the fundamental concepts of good logistics as well as checking out new logistics capacities. A strategic model to permit Tesco to acquire its objectives also to support competitive advantages in the markets. In USA Tesco cannot enter to the market and compete with the strongest retailer such as Wal-Mart. Wal-Mart has completely protected all the United Point out markets and there are not any chances for other rivals to enter in to the market.

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