The aim of this module is to provide a comprehensive introduction to contemporary marketing theory and practice. The module is designed toenable you to:
build knowledge and understanding of the key concepts and principles of marketing
develop the ability to apply these concepts and principles to practical marketing situations
refine analytical, problem-solving and creative skills in marketing.
This assignment requires you to research, report and make recommendations on the marketing strategy of an organisation of your choice, using the knowledge and tools presented during this marketing module. Your example should be chosen because it demonstrates ‘success’ in implementing marketing.
Select and research a company, brand or non-profit organisation of your choice. Briefly introduce your chosen organisation, explaining why you consider it to be a ‘marketing success story.
Detail and discuss the key factors which led to the marketing success of your chosen organisation. Your answer should show an appreciation of the core theories in this module (e.g. an understanding of the changing marketing environment, segmentation, market positioning and the marketing mix).
Building on your success story, evaluate the future challenges facing your chosen organisation, and make two or three recommendations on areas the organisation should address for continuing success.
The report is based on the marketing research and study of a famous UK retailer Tesco. The marketing report provides an insight into the current and future strategies that an organization can adopt to succeed. The purpose of establishing a cohesive market structure is to enable readers to get an effective knowledge (Jobber and Ellis-Chadwick, 2012). The study provides a linkage between the operations of the organization to derive a competitive advantage. Tesco has a competitive advantage over the other rival organization. Under such a condition marketing strategies help in understanding market competencies. Tesco is utilizing modern technology to attain effective result on a long run.
Tesco is a British multinational grocery and general merchandise retailer. The head-office lies in Garden City, Hertfordshire, England, and United Kingdom. Tesco is known as the third largest retailer in the world by profit. Moreover it is known as the ninth largest retailer in the world when measured by revenues. Tesco is successfully operating stores across Asian and European countries. At present they have store in 8 countries. The retailer was founded in 1919 by Jack Cohen. The retail store diversified its operations geographically since the early 1990. The purpose of broadening the product range is to attain economy of scale. Tesco has repositioned itself from being a down market high volume low cost retailer to one of the most favored brand in social group. The retailer giant is listed on the London Stock Exchange (Ma, Ding and Hong, 2010).
The marketing strategy is related to a study of the current market. It helps n determining the product offered by the company and provides with the exact range of products as necessary looking after the current market situation. Tesco is majorly focusing on developing a specific core European range of environment friendly products. They have developed products as per the needs of the customers. The products they are selling in European countries is different from the products n the Asian countries. That is why a thorough study into the marketing strategy is important to test the new concept and attitude of the brand towards Tesco (Burch and Lawrence, 2005).
Tesco adopts campaign for marketing business which consists of TV and radio advertising, newspaper advertising etc. their alliance partners are making press releases and share information related with the venture in the interest of company and the nation. Company is consistently creating job for thousands of people in the UK &other countries they are working. The company has introduced environment friendly products that have helped in attaining effectiveness in a short time period. The internet advertising and direct marketing has helped significantly in determining long term sustainable objectives (Lovelock, 2011).
Tesco is a successful retailer in the United Kingdom. It is due to series of practical market strategies. Tesco has an opportunity to develop products in the UK market and to diversify in the other markets. By applying this market strategy the company will attain competitive advantage over its rivals. The distinguish market strategy has helped the brand in successful accomplishment of goals. Tesco has secured a large market share due to the current market strategies. In order to develop effectively the brand need to secure a larger market to become an ever-changing market leader (Malhotra, 2008; Thompson and Martin, 2010).
Marketing Strategy of Tesco
Tesco has achieved the marketing objectives by providing the quality products and a higher service. They have a policy to attract the customers through high level of services. They need to attract buyers by using advertising and promotional activities in order to develop effective market strategies. Market penetration is important for Tesco to retain existing customers rather than attracting new one. Tesco international strategy is accompanies with expansion according to the different needs of the customers. The brand needs to respond as per the behavior of the local customers. This will allow bran to compete against the local brand in the third country.
The Purpose of Tesco is to hire local personnel in order to attain higher efficiency in the market. The brand has adopted the lowest cost materials for supply and efficiently influencing the local market (Belz and Peattie, 2009). The retail brand has recognized the low cost supplier to provide goods at a cheaper rate. Tesco has a policy to provide goods at a cheaper rate in the town. They have an experience to work with larger and diversified customers. The brand is primarily focusing on customer satisfaction. Tesco has successfully created brand loyalty. The brand is operating as Internet system provider. They have effectively developed itself by diversifying and by increasing the overall procedure. The purpose of the brand is to reach the right audience at the right time through a right message (Markides and Charitou, 2004).
The loyalty program carried by Tesco through their different stores has discouraged the customers from switching to the rival brands. Environment friendly schemes have helped the brand in reducing food waste a food carbon marks. This has effectively helped the brand to understand the local market (Grönroos, 2007).
Tesco has adopted a dual policy of cost leadership and diversification. This has helped the bran in successfully attaining the market competencies. The dual strategy followed by the brand has helped in drawing customer’s attention. The relative analysis of the value created by the brand has allowed them to create a successful market position against Asda, Sainsbury's and Morrison’s.
Tesco is using the loyalty schemes to develop effective relationship with the organization. The brand is currently focusing on managing relationship between the organization and its market. In the highly competitive market it is evident for a brand to focus on the customers through and to prefer zero defection strategy. The relationship marketing techniques followed by Tesco has helped in evolution of the brand name. They have effectively developed relationship with the existing customers. Tesco is effectively addressing to the issues as furnished by the local market. With the club card scheme the bran is able to overtake other local and international brands Aaker, Kumar and Day, 2008).
The biggest challenge seen in the current market is to develop loyalty schemes for the customers. The most successful example of a brand evolution is through its appealing brand strategies. In an increasing competitive atmosphere it is necessary for a brand to develop loyalty programme for the customers. The loyalty programme needs to be developed as per the different age group. This will enable the brand in acquiring the whole market segment. Tesco has been effectively offering loyalty cards to each of its customer. Membership to the different loyalty program has helps in targeting customer of each age group (Cateora, 2008).
Market Penetration Strategy
Today it is known as one of the leading brand in UK. The brand has managed to retain the customers due to its effective marketing strategies. All the policies are designed as per the requirements of the customers. Tesco is providing cheapest prices to its customers through offline and online stores. The band has effectively developed itself as a reliable brand in the market.
Tesco is currently providing wide range of products that include clothing, groceries, financial services etc. They have expanded into the online marketing as well. They are also providing a wide range of local and international cuisine to its customers; this is the major reason why customers do not want to shift to some other brand (Armstrong, Kotler, Harker and Brennan, 2012).
The bran has managed to adopt a low prices structure without compromising with the quality. They provide a cost advantage to its customers. They are using numerous measures to become one of the customer friendly brands.
They have surpassed all the expectations of the customers in order to attain the top-most position in the market.
The stores are located everywhere in the UK. It is currently employing two main channel of distribution in the market. they are running different types of store like Tesco Express, Tesco Extra, Tesco Metro, Tesco Compact, Tesco Home plus and Tesco Superstore. These stores are located at different places that have helped in attaining a significant market share.
Moreover the international stores are providing different benefits to the customers through cheaper prices. The Asian stores are based on the local market needs (Jain and Haley, 2009).
The biggest advantage of the brand is to sell goods at a lower price. The brand has developed a clear image in the market due to a favorable brand image. . Tesco adopts campaign for marketing business which consists of TV and radio advertising, newspaper advertising etc. their alliance partners are making press releases and share information related with the venture in the interest of company and the nation. The relationship marketing procedure followed by Tesco has assisted in evolution of the brand name (Hollensen, 2015). They have effectively developed relationship with the existing customers.
Tesco stores are not over elaborated like their competitors. The store is easy to navigate sell products of every range approachable to each of the customer. The customers are enabling to save themselves by visiting a single store instead of multiple. The website maintained by Tesco is easy to operate (De Mooij, 2013).
The excellent sales and assistance services has helped the brand in gaining significant market share. The employees are highly competitive and provide effective services to the customers. In a very short tenure the brand has developed itself as a market player (Czinkota and Ronkainen, 2013).
The Tesco has an objective to keep its customers happy in order to gain higher level of competency. Tesco has been able to gain advantage through its competitive process. Tesco has achieved a significant market presence due to multi-folded objectives as laid by the brand.
· Tesco is known as the third largest retailer in the world.
· Ninth largest retailer in the world when measured by revenues.
· Effective TV and radio advertising, newspaper advertising etc to attract customer attention.
· Company has introduced environment friendly products.
· The brand has adopted the lowest cost materials for supply and efficiently influencing the local market.
· The brand prefers zero defection strategy.
· Effective promotional schemes for consumer of every age group.
· Excessive completion
· The profits are been affected by the bad debts caused by the defaulters.
· Tesco lacks experience in some of the market.
· A lot of investment is required in case of new technology.
· Lot many expansion opportunity for the brand.
· Online shopping can facilitate greater efficacy.
· Oversea expansion can take place in the Australian market.
· Strong competition from the brands like Asda and Morrison
· Wal-mart is posing excessive threat on the brand.
· There is a huge concern over out of town shops that are affecting overall revenues.
The brand is currently undergoing transformation due to an excessive competition caused by the local and international brand. In such a condition it is recommended to develop effective policies in order to attract customers. The brand need to introduce new customer schemes to attract attention of consumers. Huge presence of brands like Asda and Morrison is posing a threat on the brand. In such a condition it is necessary for a brand to develop effective promotional strategies (Varley and Rafiq, 2014).
Expansion is necessary for a brand in order to attain significant market growth. It is suggested that the brand should try to expand itself into Asian & Australian market. This will allow the brand to penetrate in the larger market segment. There are multifold challenges from the international brand like Wal-mart. The brand can pose an excessive challenge for the brand to derive multiple objectives in the market (Perrey and Spillecke, 2011).
To conclude Tesco is one of the most effective brands present in UK. It is known for its aggressive market strategies. The brand has developed itself as the third largest retailer in the world. Tesco is majorly focusing on developing a specific core European range of environment friendly products. The report includes the market strategies required to attain a significant market growth.
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