Market Research Analysis for Tesco: Segmentation and Strategies

This report examines the significance of market research for businesses, focusing on how it aids in understanding customers and competitors. It explores various types of market research, including primary, secondary, qualitative, and quantitative methods, and their impact on customer satisfaction, competition, and sales. The report uses Tesco as a case study, analyzing how the company utilizes market research to identify market segments based on factors like demographics, geography, and behavior. It details how Tesco employs market segmentation to target specific customer groups, considering socioeconomic conditions and buying behaviors, and discusses the importance of strategies like cost advantages. The analysis highlights how market research helps businesses formulate effective marketing strategies, improve product quality, and maintain customer loyalty. The report references academic sources to support its findings.

Running head: MARKET RESEARCH
Market Research
Name of the Student
Name of the University
Author Note

1MARKET RESEARCH
1. Market research is one of the importance technique for the marketers in order to
identify the competitions in the existing markets and simultaneously helps to identify
the target audience of the market as well. The concept of market research will help
the business management to understand the issue of customer satisfaction through
their business process. There are various types of market research process and they
are mainly primary market research, secondary market research, qualitative and
quantitative market research. The concept of primary market research refers to the
market research done by the company itself and those collected information will help
to gather information regarding the competition in the market and the target customer
segments in the market. A company can gather primary information through the
primary research method by using either quantitative or qualitative research. On the
other hand, the secondary market research refers to the marketing technique that is
dependent on the available information and this research is dependent on the
information collected by other people. A secondary market research process is
dependent on various resources available in the market and those sources may include
newspaper, magazine, government data. In order to analyse the opinions and
mentality of customers, a market researchers may use a qualitative research method. It
mainly deals with the mentality of the customers and they are free to make their views
and opinions regarding any product. On the other hand, the quantitative research
method is dependent on statistical data and hard facts of the market (Burns, Bush and
Sinha 2014). According to the study of Aliyu (2017), it is reported that, the issue of
customer satisfaction is associated with the market research process. As, by using the
qualitative market research technique an organization can gather information about
the views of the customers related to their product. In a qualitative research the
customer are free to cast their information regarding any product and it will help the

2MARKET RESEARCH
organization to improve the condition of their product. On the other hand, this study
also stated that, a market research process will also allowed a company to hold the
loyal customers in their organization. In addi6tion to this, the process of market
research will also allow to maintain the quality of product as the customers are giving
opinions regarding the product and the company can maintain the quality of product
by using the data of market research. It is quite evident that, the customer satisfaction
will enhance the numbers of loyal customers and this will definitely enhance the
business turnover of the customers. Moreover the study of Spiess et al. (2014),
showed that, the use of big data gathered from the market research can be used to
improve the customer satisfaction as a huge amount of customers’ will help the
company to understand the mentality of customers in a better way. Moreover a
proper market research by an organization will the company identify the competitors
of the market and the collected data will help the company to take out the strengths
and weakness of the company and pricing strategy of the other competitors in the
market. So, it can be said that, the collected market data will help the organization to
make their business strategy in order to compete in the market with their competitors.
In case of Tesco, the company can use the market research process to identify their
competitors in the market of different countries of this world and they can find out the
competitive advantages in the market as well (Spiess et al. 2014).
2. In any kind of business it is very crucial to identify the market segments in order to
identify the taste and buying behaviour of the customers. The grouping of the
customers can be related to the income, age group, geographical location and
behaviour of the customers. The geographic segmentation of the market is correlated
with the basis of region, state, rural areas. The demographic market segmentation is
relied on the basis of age, sex, religion, community and religion of the customers. The

3MARKET RESEARCH
psychological segmentations of the company is based on the personality traits,
lifestyle, and attitudes of the customers (Baker 2016). On the other hand, the
behavioural segmentation has the basis of consumer status, brand loyalty. There is
Tesco product named Tesco Technika 19-230 which is a 18.5 inch HD LCD TV and
the geographical segmentation of this product can be divided according to the region
and density of the population. In the demographic market segmentation of this
product, the age, gender, income, occupation, level of education, social status, family-
size can be considered ( Hawkins 2016). Lifestyle of the customers and the
personality of the customers can be identified as the psychographic segmentation of
market for this product. The behavioural segments can be defined as the type of
usage, economic benefits, and status of the users (Baker 2016). This market
segmentation is very crucial for Tesco so that they can target a specific type of
customers in the market. For example, if they target the customers of rural area they
must consider the socio economic condition of the rural people as it is quite evident
that it is not possible for all the rural people to buy a high-priced. Moreover, the in
this example, the buyers behaviour is also important as it has direct impact on the
sales of the product in that particular market segments. The behavioural market
segment refers to the act of identifying customer groups as per the buying decisions of
the customers. The geographic segmentation refers to process of customer grouping
based on the locations in which they are living (Baker 2016). For the behavioural
segmentation, the strategy of cost advantages to the customers is quite effective as it
will allow the customers to buy the particular product easily and it will also help the
company to generate the revenue as well (Kim, Lee and Park 2014). On the other
hand, the analysis of geographical market segmentations will allow the company to

4MARKET RESEARCH
identify the region of market that is rural or urban areas and this allow the company to
concentrate on a specific region of market (Weinstein and Cahill 2014).

5MARKET RESEARCH
References
Aliyu, F.L., 2017. Determinants of Customer Satisfaction of Banquet Services in Hotels in
Kaduna Metropolis, Nigeria (Doctoral dissertation, Doctoral dissertation, Kenyatta
University).
Baker, M.J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Burns, A.C., Bush, R.F. and Sinha, N., 2014. Marketing research (Vol. 7). Harlow: Pearson.
Hawkins, R.A., 2016. Marketing history in Britain. The Routledge Companion to Marketing
History, p.315.
Kim, Y.K., Lee, M.Y. and Park, S.H., 2014. Shopping value orientation: Conceptualization
and measurement. Journal of Business Research, 67(1), pp.2884-2890.
Spiess, J., T'Joens, Y., Dragnea, R., Spencer, P. and Philippart, L., 2014. Using big data to
improve customer experience and business performance. Bell labs technical journal, 18(4),
pp.3-17.
Weinstein, A. and Cahill, D.J., 2014. Lifestyle market segmentation. Routledge.