Marketing Strategies assignment : Tesco

Running head : MARKETING
MARKETING
Name of the Student
Name of the University
Author Note

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Executive Summary
The given report throws light on the marketing component of a company named Tesco. Tesco is
a grocery retail chain which branches in various parts of the world. The report has been divided
into two parts whereby in the first part the customer relationship management (CRM) aspect of
the company has been discussed in detail. Several strategies as to how Tesco can improve its
CRM strategy have been given. The second part of the assignment concentrates on the concept of
a Promotional Mix whereby the vigorous promotional mix strategies used by Tesco have been
stated and analyzed. Suggestions to improve these strategies such as the AIDA and above the
line and below the line have been discussed.

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Table of Contents
1.0 Introduction...........................................................................................................................4
1.2 Background on Tesco............................................................................................................4
Question 1........................................................................................................................................6
2.0 Understanding Customer Relationship Management................................................................6
2.1 What is Customer Relationship Management (CRM)?.........................................................6
2.2 Market orientation.................................................................................................................7
2.3 Customer Centric...................................................................................................................7
3.0 CRM Techniques.......................................................................................................................8
3.1 Range of CRM techniques.....................................................................................................8
3.2 Range of CRM techniques for Tesco and its effectiveness.................................................10
3.2 .1 The first CRM Strategy that is adopted is a Loyalty program.........................................10
3.2.2 Staff Development............................................................................................................11
4.0 Recommendations to improve current CRM techniques.........................................................12
Question 2......................................................................................................................................13
5.0 Promotional Mix techniques....................................................................................................13
5.1 Key terms and definition.....................................................................................................13
5.2 Promotional mix techniques used by Tesco........................................................................14
5.3 Evaluation of the current promotional mix techniques used Tesco.....................................16
5.4 Suggestions of other promotional mix strategies which could be used Tesco....................19

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6. 0 Conclusion..............................................................................................................................20
References......................................................................................................................................22

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1.0 Introduction
Marketing revolves around the customers. The primary motive of any marketing activity
is to see to it that the company is getting the right kind of products to the right customers. For
this purpose, the company`s often engage in customer relationship management technique to
retent its customers and apply various promotional techniques. The given report aims advice the
Marketing Director of Tesco by analyzing the marketing strategy of the brand. The report will be
throwing light on the marketing strategy of the company followed by their Customer
Relationship Management Techniques. Concepts like market orientation and customer centric
will be covered adequately (Kotler 2015). Certain recommendations may be provided so as to
improve them. The second part of the report will be based on the promotional mix of the
organization along with concepts like AIDA and above the line and below the line. The report
will be providing certain suggestions for improvement.
1.2 Background on Tesco
Tesco was found by Jack Cohen back in 1919. The business leads him to sell his own
product under the brand name Tesco in 1924. The first store came up in 1928 and since then
there has been no turning back. Tesco was the first brand to begin the trend of computerized
checkouts in the stores and became a petrol retail seller as well.
Through its Customer Champions policy, the brand became a huge retailer in the organic
domain (Tesco.com. 2018). The company expanded its operations to South Korea and other parts
of Asia. The company entered the e-commerce domain and is currently the most active online
supermarket with huge sales of around 800 million.

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The marketing strategy of the brand involves proper analysis of the market in order to
figure out the range of customers it wants to target and how to approach them. Tesco started in
Europe and wanted to retain its position in the continent therefore it aimed at selling products
which had a European aura about it along with customization for the local markets.
Tesco believes in research and stresses on undertaking a detailed market research before
any decision regard the company is taken with respect to the pricing of the products, customer
perception about the brand and their habits (Armstrong et al. 2015).
The marketing campaigns adopted by the brand are as follows:
 Radio and Television advertising during the prime hours at regular intervals.
 News paper advertising and home magazine advertising
 Press releases and sharing of future plans by their alliance partners. They reflect these
releases on the national as well as the regional platform.
 By introducing environmental friendly products the brand has become popular among the
large masses.
 The organization also advertizes through bill board advertisements which often have the
capable of catching the eyes of the customers driving down the town.
 It has also indulged in internet advertising on various websites.
 The brand uses direct marketing techniques such as emails and text messages for its
active customers. This serves as a good way in reminding the customers about the brand
along with certain offers. It has a system of club cards as well.