Implementation of Retail Strategy Mix Assignment

Added on - 18 Sep 2019

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A Study OfTescos & Waitrose,UKNameDate1
Executive SummaryThis paperwork relays the methodology and research of the development professionals from theUniversity. The research was performed in order to define and develop an assessment tool tomonitor assessment. After in-depth work on research groups, & case studies, we were able toidentifytwo importantretailersof UK which areTesco PLC&Waitrose which have a strongpresence across & how they compete in the same market. This report covers external & internalfactors, resources surrounding Tesco & Waitrose Company. It conducts an in-depth analysis &identifies implementation of retail strategy mix which could differentiate Tesco & Waitroseexisting in the same environment. The core emphasis lies in the strategy planned & marketingmix used by both in key highlighting their strength & weakness.Both the companies are leading companies in super market stores especially in food & drinkindustry. Even after having knowledge ofknow how techniques of handling resources inmanufacturing, management of supplies, trained staffs how they areboth able to distinguishthemselves & still provideunique essence of retailing industry.For understanding the research we measured various parameters & the scope of project byreading reports, magazines, books & online searches.2
Table of ContentsTable of ContentsExecutive Summary2Introduction3Situation Analysis5i.PESTLE Analysis51.Political Factor52.Economic Factor63.Social Factor64.Technological Factor65.Legal Factor76.Environmental Factor7ii.Porter’s Five Forces71.Bargaining Power of Suppliers82.Bargaining Power of Buyers83.Threat of New Entrants84.Threat of Substitute Products85.Competitive Rivalry8iii.SWOT Analysis91.Strengths92.Weaknesses103.Opportunities104.Threats11Objectives12Positioning, Targeting, and Image13i.Target Market of Tesco vs. Waitrose13ii.Positioning Strategy of Tesco vs. Waitrose13iii.Image of Company of Tesco vs. Waitrose13Retail Mix14i.Range of Merchandize Mix14ii.Pricing14iii.Communications15iv.Location15v.Store Design and Layout (should include visual merchandising, and atmospherics)16vi.Customer Service173
Conclusions18CHAPTER ONE: IntroductionLeading UK companies in super-markets how they compete in the same environment facingchallenges internally or externally & how they transfer it their strength & sustain their marketshare. Reading about previous strategy retail mix used, analyzing it in depth through researchesonline & from reports helped in translating into a live example to resolve the currentimplementation ofretail strategyissues & mark it as learning for the future courses of action.Key strategy was devised which was mapped as per the challenges levels. For the external issues,joint ventures & diversifications were recommended & for internal retail strategy issues with thesupport of promotions, advertisements & tie ups attributed into streamlining strategies todistinguish itself from the competition. The research questions to approach this hypothesisfocused on the following main themes:Issues duringimplementation ofretail strategy mixSolutions tosmoothly implementretail strategy mixStrategies used in distinguishing itselfWhat recommendations or conclusions can be drawn while implementingThis report summarizes implementationofretail strategy mixbe it in Tesco or in Waitrose UK,ways to strategize it and optimizing it to capture maximum market share. All the key topics arebifurcated into seven chapters which comes helpful in learning & concluding issues. First, ithighlights the key topic covered in an introduction. The next section includes situation analysis& then it covers objectives. Chapter 4, explains the Positioning, targeting, image & Chapter 5explains retail mix strategies to understand market & ways to capture it. Last chapters drawconclusion part.4
CHAPTER TWO: SITUATION ANALYSISIn this chapter, we draw comparisons between Tesco & Waitrose by understanding the situationin which both the company coexists and for this we did extensive research in situation analysis.i)Comparative PESTEL Analysisframework of Tesco & Waitrose1.PoliticalFor Tesco, UK political market has always been favorable and for Waitrose same is the scenario.The challenge remains when it requires penetrating into new global market segments it needs apolitical support & permission of targeted countries. For eg. Penetrating into India it needs tocheck political stability, favorable reforms & then decide launch of new stores & products. Forthis Tesco have huge resources and funds to sustain while diversifying globally but same is notthe case with Waitrose which has limited resources with optimum utilizations.Tesco has a vision to penetrate globally & keeps a check in a peer strategy for the road blockagewhile entering into new market domain & segments. On the contrary, Waitrose captures majorlyin UK & has penetrated less globally hence it only compliances with UK government rules &reforms.2.EconomicFavorable economic factors globally & locally are a big concern for both the companies.Downturn in economy results in consumer changed behavior while tough reforms leads to pricedropping & no sales growth especially in non food items.5
However food items are last dropped item form the list during high inflation & economicdownturns but still to sustain in existing scenarios & retain customer base TESCO should launchmore loyalty & warrant cards scheme (Euromonitor, 2010).While for Waitrose it is highly dependent on UK economic reforms. As of now it has stableprices but due to the bad recession in 2008 it resulted in customer switching & heavy losses.Hence regular schemes, promotions, cards loyalty should be launched to maintain customerdatabase3.SocialChange in lifestyle, buying behavior, improved health awareness leads to changes in pattern.Tesco should consistently foresee changed social behavior & choose alternative plans.For example : keeping more organic or non-organic food items for a health- conscious people.Tesco keeps a tab on the payment methods used such as cheques, cash credit/debit card, banktransfer or payment through customer loyalty or cards which help in serving satisfied customers.While Waitrose has adopted itself to changed mindsets of consumer behavior because of buyingpatterns, new lifestyles, habits & preferences. Waitrose follows an updated market trend of foodor non food items & has excluded outdated stuff. Keeping abreast with Waitrose focus it camewith up market promotional activities.4.TechnologicalKeeping stocks fresh, introducing latest technology, maintain logistics is all tricks to penetrateeasily in the market & cater to the needs of customer (Office for National Statistics, 2010).Tescoupgrade itself to latest style & technology in order to sustain & compete with peers.6
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