Marketing And Business Strategy Assignment

RUNNING HEAD: MARKETING AND BUSINESS
0
Marketing and Business

Introduction
Brand positioning includes the creation of image of the brand in mind of customers so that they
can differentiate it from other products on the basis of different parameters such as price, quality
of services (Iyer et.al,2019). In order to understand the brand positioning strategies Tesco brand
positioning strategies are analyzed in the below sections and comparison of its strategies with
Aldi is done. In order to understand the way both companies positioned themselves in the
market.
Tesco
Tesco is one of the largest general merchandising and grocery retailers in the UK and across the
world. The company offers its products through 6,800 shops that included Supermarket,
Hypermarket, Superstore and Convenience stores (Tesco,2020). Tesco positioned itself as the
company that provides quality and range of products to its customers. The company focuses on
premium positioning rather than discounting positioning. Tesco's strategy is to earn customer
loyalty by providing premium products and organic ranges as per the changing demand of
customers. Due to increasing competition from discount stores like Aldi and Lidl the company is
facing issues in positioning its brand in the market (Tesco,2020).
Brand positioning aspects
Tesco uses a multi-segment positioning strategy that includes targeting and positioning
according to the different market segments. The company is in stronger position in terms of:
 Price,
 Quality
 Customer services

Tesco build its brand image in the market focusing on multiple segments as for higher class
people the company positioned itself as the one brand that provides quality at affordable prices
with ranges of product to its customers, on the other side for all its customers the company focus
on improving in-store experience by offering the best customer services (Witek and
Grudecka,2018). Hence, Tesco positioned itself as the company that provides quality products to
different customers at affordable prices.
On the other side, at present Tesco is facing competition from Aldi. Aldi is a discounting store
that offers products at low cost to its customers. The elements of its brand positioning are:
 Discounting prices
 Quality
Its low price strategy is the approach that the company used in order to be successful in the
market and to attract its target customers. The reputation of the brand based on offering quality
products at notably lower prices as compared to other competitors in the industry. That leads to a
unique offering which resonates in the mind of target customers (Burmann et.al,2017). As the
target customers of Aldi are both women and men in the low and middle-income groups. Due to
that its low-cost pricing strategy helps the company to penetrate the market.
Comparison of brand positioning strategy
There are different types of positioning strategies that can be used by organizations and that
includes value-based brand positioning, quality-based brand positioning, competitor based brand
positioning, benefit positioning, price positioning and leader based positioning. From the
analysis of Tesco it is identified that the company uses price positioning strategy and quality
based brand positioning strategy (Curran and Taheri,2017).