Marketing Strategy of TESCO
24 Pages8391 Words1239 Views
Added on 2019-12-03
Marketing Strategy of TESCO
Added on 2019-12-03
ShareRelated Documents
Marketing andMarkets(TESCO)
EXECUTIVE SUMMARY It can be evaluated from the study that business analyses regarding the marketingenvironment in which it operates. Therefore, it is essential for firm to undertake differentmarketing concepts so that competitive advantage can be gained by firm. Further, STP needs tobe effectively implied to Tesco that helps in determining its effectiveness in order to attaindesired goals. Also, SAFe model has been implemented in regard to Tesco so that betterdecisions can be made in regard to suitability, feasibility and acceptability.Tesco undertakesdifferent marketing strategies which are different as compared to its competitors and also facescertain problems and issues with its marketing tactics as they possess the pressure of their rivalsat the time of making business strategies. However, Tesco possess its own brand identity inmarket but still it faces problems of marketing such as price issues, new rivals, buyer shoppingbehaviour etc. Further, Tesco undertakes different diversified marketing strategy such as STP ascompared to its rivals because it possess unique brand image in market. Club card is the bestmarketing tool adopted by Tesco that helps them to give unique identity to their loyal consumersand satisfy their needs. Also, it can be stated that marketing concept is encouraged inorganization then it is referred as strategic marketing. Furthermore, concept of marketingdepends on internal and external environment which facilitate proper formation of strategies thatcan be beneficial for accomplishment of company’s objectives. Further, there are different issuesthat were found in the enterprise such as lack of training and hiring mistakes, providingineffective customer service, threat of new competitors available in market, fluctuations in pricesetc. Further, it has been founded that Tesco is undertaking STP process and thus providecompetitive advantage for firm in order to gain market share and brand image. Moreover, in thecurrent study both internal and external analysis has been carried out in order to analyze themarket environment. However, it can be assessed that business is required to use STP strategiesin order to implement effectual tactics for future course of time and thus implement within firmto attain objectives. Business can become market leader through segmenting its client base andproviding them suitable products in order to satisfy their needs. Also, business positions itsstrategy through social media marketing and attracts youth. At the end, report also providesrecommendation in order to counter the STP issues such as firm should provide advertising on
social media so that they can effectively communicate with consumers, benchmark effectualcustomer relationship management so that best strategies can be attained.
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1 MARKETING ANALYSIS..............................................................................................1Key marketing issues affecting the organizations strategic position and their significance. .1TASK 2 UNDERSTANDING STP.................................................................................................32.1 Concept of Segmentation, Targeting and Positioning and their challenges.....................32.2 Tesco’s Segmentation, Targeting and positioning approach to gain competitive advantage................................................................................................................................................4TASK 3 STRATEGIC RECOMMENDATIONS...........................................................................53.1 Tesco improving its current approach to Segmentation, Targeting and Positioning.......53.2 Recommendations............................................................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9Organization's marketing environment................................................................................14
INTRODUCTIONThe present report is based on strategic marketing and relationship among corporatestrategy and marketing strategy of Tesco (Baig and Akhtar, 2011). Along with this, it alsofocuses on internal and external environment encircling organization that it greatly impacts thefirm and its operations. At last the report covers some marketing strategies with their applicationand implementation within company (Ambler, Kokkinaki and Puntoni, 2004). TASK 1 MARKETING ANALYSISKey marketing issues affecting the organizations strategic position and their significanceAfter analysing the different marketing environment in the Appendix it can be assessedthat Tesco adopts different marketing strategies in order to promote business.Competition- Business owns around 30% of the market share in the UK retail industryand aims to gain more consumers from home country and then concentrate to the othercountries so that they can enhance the customer base. For this they are making hugeinvestment in market and carrying out business operations. Tesco faces competition fromdifferent retailers such as Asda, Sainsbury's Aldi, Morrison, Lidl etc as they are offeringproducts at low prices in order to attract consumers and satisfying their needs (Allio,2005). Further, Tesco introduces new strategy in market i.e pay less for quality productsas compared to rivals. Loyalty card- It is an effectual marketing strategy adopted by business to attractconsumers and enhance market share. Tesco was the first retailer to introduce loyaltycard scheme for its clients. Tesco club card is the most effective marketing tool toinfluence consumers and increase loyal customers in the business (Baig and Akhtar,2011). Main importance of introducing loyalty cards is that it helps in providing benefitsto consumers and improve the business performance by attracting wide range of targetconsumers and satisfying their needs. Pricing- Tesco faces tough competition from Wal-Mart which is a big competitor andthus sells similar products therefore, it is essential for Tesco to cut its cost and negotiatewith suppliers in order to grow the market share. Also, firm uses diversification strategyin order to expand the business into overseas market such as Tesco bank, insurance andtelecom services (Amalesh, 2011).1
Business faces issues from the new entrants in market such as Wal-Mart as it buys Asdain UK that raises main issue for Tesco as it needs to redevelop its marketing tactics.Further, business faces issues regarding marketing as it is necessary for firm to developits marketing campaign because of wide range of competitors present in market and usingdifferent promotional technique to enhance customer base. Thus, Tesco faces marketingissues. Tesco faces issues at the time of targeting the market segment in order to sell the productsand services (Curtis, 2007). For instance, business targets their customers as per theirwealth through its club card database as firm has distinguished its customers on the basisor rich and poor as per their earlier spending. Thus, here firm faces issues at the time oftargeting specific market and ignoring the rest of the market. For instance, if any bodybuilding tonic is marketed by the company to only the gym going persons and not othersthan it affects the needs of other people who need protein diet. However, it is essential forbusiness to market its products and services to the target market and for that firm isrequired to undertake effectual marketing strategy. Thus, it faces issues for Tesco toattain desired goals. TASK 2 UNDERSTANDING STP2.1 Concept of Segmentation, Targeting and Positioning and their challengesHowever, it is essential to understand segmentation, targeting and positioning in suchcompetitive market so that firm can measure competitiveness in the market especially at the timewhen competition is very high.Segmentation- Market segmentation can be stated as the method of sub-dividing themarket into different homogeneous sub sections of customers. Thus, through developingparticular marketing mix it helps in selecting a specific target market. However, it is aprocess that helps in dividing the market into different sub groups of consumers withsame requirements (Islam, 2003). While carrying out segmentation, business tries toseparate the particular group of people with particular requirement and firm believes thatthey will respond quickly to the product. Main purpose of carrying out segmentation is toassess the particular group of people where possibility of selling the product is high.Segmentation can be divided into demographic, geographic, behavioural andpsychographic. For instance, if Nike launches a new product such as athletic design shoes2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Analyzing STP Tactic and Marketing Mix of TESCOlg...
|14
|4305
|1
Strategic Management Report | Apple Inclg...
|15
|5212
|78
Marketing Fundamentals: Understanding Segmentation, Targeting, and Positioning for TESCOlg...
|12
|2368
|387
STP Approaches and Their Effectiveness in Marketinglg...
|15
|3574
|352
Marketing Management: Analyzing STP Tactic of Tescolg...
|12
|3623
|154
Strategic Marketing Planning: Literature Reviewlg...
|12
|3998
|228