Tesco's Marketing Strategies and Competition

This assignment examines Tesco's marketing strategies, particularly in relation to its competitor Aldi. It analyzes how Tesco utilizes the Ansoff Matrix for growth and implements a marketing mix to achieve success. The focus is on comparing Tesco's strategies with those of Aldi and identifying key areas for improvement.

Introduction to Marketing
Introduction to Marketing
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Word count: 2000
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Introduction to Marketing
Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
P1. Describing how marketing techniques can be used in two selected organisations...................3
P2. Describing limitations and constraints of marketing.................................................................5
Task 2...............................................................................................................................................6
P3. Describing how one of the selected organisations uses marketing research.............................6
P4. Describing how the same organisation mentioned above, utilises data and information
collected...........................................................................................................................................7
Task 3...............................................................................................................................................8
P5. Explaining how and why groups of customers are targeted for selected products...................8
Task 4...............................................................................................................................................8
P6- Developing a coherent marketing mix for a new product or service........................................8
Conclusion.......................................................................................................................................8
Reference List..................................................................................................................................9
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Introduction
This particular assessment is going to represent a research report over market research targeting
two business organisations in the UK. These two organisations are Tesco Private Limited
Company and other is Aldi Private Limited Company. Both the organisations have a huge
international market and global establishment. The objectives of conducting such kind of
research are to learn the value of business ethics, growth and planning. This research is also
promising to guide the start-up business leaders to initiate a bold foundation for a business
venture. Marketing management relates a lot of things and among them, supply chain
management dissertation is extremely important for those companies who have chain business
and business dealing with different countries. In the regard of supply chain marketing, Tesco
Private Limited and Aldi Private Limited are ideal marketing representation. Both have huge
multinational market growth in the retailing grocery industry. Tesco is British company in a
business leading position in 8 major countries throughout Asia and Europe. Tesco is top 9
company basing on the revenue measurement and basing on the profit it is the top 3 retail
merchandise company in the World. In comparison Aldi Private Limited, a retail chain
merchandise company has business with 18 major countries around the world prominently. It has
worldwide name and fame in leading global discount supermarket chains. These two companies
are a huge preference for this particular assignment in fulfilling research criteria.
Task 1
P1. Describing how marketing techniques can be used in two selected
organisations
One of the primary objectives of this research project is to determine the marketing techniques as
well as marketing growth. Hence Ansoff’s product/market growth matrix is highly reliable. For
justifying the market growth of Tesco and Audi according to Ansoff, the main thing which needs
to see is a company is doing business on new products either existing products and the market of
the organisation is new either existing. These are two major factors to make business strategy
and survival strategy of meeting an ambitious business goal. Ansoff’s matrix is exclusively
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innovative in guiding an organisation to meet target public demand (Jenkin et al. 2014). Tesco
and Audi both have the existing market and a plan stores for meeting public demands in a
reliable way. The both selected company has progressed a lot in chain business in different
countries. It means this organisation supply chain management is highly efficient. The both
companies have to flourish a lot still. Progressing has no limitation. The business flourishment is
not for a selective term. Flourishing business is a term of constant progress. Constant progress in
business is a skilled management and constant competition. Retaining the same position is not
maximum objective in flourishing a business. The main criteria are to improve and improve.
Improvement is ensured only by change. The market situation changes with growing time.
Business planning has the need to be changed constantly. That is the criteria to sustain in the
market dynamically and majestically. The maximum objectives of a business should make sure
about endless improvement. The mentioned matrix makes sure the endless improvement. In this
context, a thing to discuss is the most important and that is market penetration. Market
penetration is the alternative name of growth strategy. Chain merchandise organisation always
needs to stay in research mode in considering growth strategy. It guides an organisation to focus
on the target market properly. According to Holliman and Rowley (2014), market penetration
can also be called the sustainable theory in a market. A win over the constant competition in a
market is the key term of sustainability in the market. Hence market penetration is a guiding
principle to compete also. There are four objectives in main in regard of market penetration.
Sustainability in business depends on a lot on making pricing strategy, advertising strategy, and a
lot of strategies related to sales promotion and personal selling. Playing safe in the business is
also necessary for meeting business criteria positively. Secure precedence in growth markets is a
talented strategy in regard to playing safe in business. The aggressive market strategy is badly
needed to reflect precedence of a company. For overpowering competitors in a market, an
aggressive market strategy is necessary to consider. There is well-known proverb to advise not to
underestimate the competitors. To beat competitors there is need a little manipulation. That is
also a part of ethics according to Ansoff Matrix for the purpose of sustainability in the business.
For the mature market, this is the most reliable strategy in retaining confidentiality. The objective
of this strategy is to appear in front of the competitors in the less attractive way. Customers are
the priority of business. Hence, an organisation should be dedicated looking after the demands of
the customers. In this regard, a part of strategy needs to target usage increment of the existing
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customer. That is reliable to win the trust of a market. It is a scheme to reflect loyalty. Tesco and
Audi both are mature in the retail grocery business at huge multinational level. Hence, to define
the business growth constantly Ansoff’s matrix is reasonable in considering. In considering
Ansoff, for the strategical market growth product development, market development and
diversification are highly necessary factors to concentrate.
P2. Describing limitations and constraints of marketing
For owning name and fame, doing business ethically is the most import. Ethical business is
always the best scheme to acquire unlimited business success. In this regard business legally is
the most important. Hence, in supply chain business and multinational business, there is some
legal limitation to follow like Good Act 1979, The Customer Protection from Unfair Trading
Regulations 2008, Consumer Credit Acts 1974 and 2006, Distant Selling Regulations, Data
Protection Act 1988 and so on. Some of them are described below:
Goods Act 1979:
Sale of Goods Act 1979, which is trade act of United Kingdom, regulates the supply chain
business of UK in main. Hence, this act is mainly for the Tesco. Monetary consideration is the
paramount objective of this act. Aldi is German based company and in this reference, this act is
not a limitation to do business for Aldi. This acts controls selling and buying of an UK
organisation to conserve the Consumer Rights Acts of 2015 (Pykett et al. 2014).
Consumer Protection from Unfair Trading Regulations 2008
This is an act in following for supply chain business of United Kingdom. Hence, it is also a
following act of Tesco, not for Aldi. It is a moral act and restricts organisation initiating any kind
of unfair commercial practice. It is also an act of protecting consumer rights.
Consumer Credit Act 1974
This is also an act of following for the United Kingdom. Hence, it is a law to be obeyed by
Tesco. This law is for looking after the credit related practice of the consumers.
Thus, the mentioned law and regulation is the business limitation for the UK's Supply Chain
Business and Tesco has to obey all this law to business ethically for protecting consumer rights.
This research has been found that Tesco is very ethical in obeying all the laws and regulations of
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multinational trading. It approves that the business of Tesco is 100% ethical and honest. It is a
trustful business of consumers.
Task 2
P3. Describing how one of the selected organisations uses marketing research
Holliman and Rowley (2014) stated that every success is the bliss of strategy. Without a strategy,
any activity is like motiveless and that is why for doing anything one should make a strategy. In
this regard researching like such a beautiful assignment of marketing strategy is badly needed. It
is a project of literary research. Researching literarily is not a bookish job, but a job of
information technology. Researching philosophy is needed to follow in this regard. Research
philosophy teaches the researcher how to conduct a research ethically. Following researching
philosophy one average researcher also can fulfil the researching project criteria. Researching
report is a summary to tell how a particular research has been conducted. This is a report which
guides the future researchers. It makes sure that researching is a responsible task. There two
kinds of researching methods. They are qualitative and quantitative. Sometimes both kinds of
researching methods have been followed to target data collection. Data collection is the primary
task of researching any project.
According to qualitative research data is generally collected from the google books, journals,
articles etc. in this reference a researcher should know the list of authentic URL. Then visiting
the google address a researcher has to collect the data in going through about research project.
That is the way of conducting qualitative research. Qualitative research means informative
research and technical research. Quantitative research is little different and sometimes in
following this method researcher has to make field work (Hussain et al. 2013). The objective of
this field work is collecting data in conducting interviews of target people for researching
project. For meeting the target of this researching project in qualitative way data is collected. For
this project report, an UK Supply Chain management Dissertation has been the priority. Hence,
for collaborating data, social networking sites have also been followed in discovering the market
position of Tesco mainly. Tesco is very much involved Social sites in building e-relationship
with the public and customers. It is not their only objective. The other objective of Tesco in
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involving social sites is to get feedback of the people. that is the perfect way to realise the market
demand and the merit and demerit of products. That guides an organisation in improving the
product value according to the market criteria.
For doing this research those public reviews have been also valued. Typical fieldwork has not
initiated for doing this particular research. For developing the marketing plans Tesco has to
empower supply chain management more confidentially. Hence TQM is the best part which
should be included in Tesco's Supply Chain Management System.TQM is basically a researching
unit in securing company's confidentiality in the best possible way. Making growth strategy in
innovative researching way is another major objective of TQM. That is the suggestion of this
qualitative research for developing Tesco marketing policies. In regard of researching
philosophy, it is hereby declared that the literary research has been done in obeying all the legal
norms and condition. No data is collected from the restricted Google sites and the data analytical
report is completely free from plagiarism.
P4. Describing how the same organisation mentioned above, utilises data and
information collected
Tesco is one of the World’s top rated retail chain multinational businesses. Hence it has
innumerable stores in the UK and other countries. It will not be possible without an authentic
supply chain management model. The reputation and marketing position of Tesco clear curtly
indicates that marketing policies of this organisation are effective and efficient. In this project
report once again it is repeated in marketing language progress is not terminal, but a constant
process to go up and up. Improve and improve is the main hymn of marketing success and
sustainability. Ansoff’s matrix is the best research and determinant to ensure constant growth of
Tesco. According to Huang and Sarigöllü (2014), the four objective of Ansoff is highly
applicable for beating competitors constantly in the market. That is depicted by this individual
researching opinion.
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Task 3
P5. Explaining how and why groups of customers are targeted for selected
products
Tesco has a deal of diversity in supplying grocery products. Among them their six key products
are carrots, cucumber, banana, fruit products, foods and soft drinks. In this regard, German-based
retail multinational company Aldi is the big rival in selling the same products most commonly.
Aldi is one of lovable brand world widely (Rahmani et al. 2015). In this regard, Tesco has tough
competition in order to be huge like Aldi and to grow more hug than Aldi. Hence Tesco has to
determine product price very tightly. Once, the context of Ansoff is repeated in this section for
hooking with the constant market research. In business at the equal position like Aldi Tesco has
to grow more. Aldi has 1400 product items in retailing sell. In keeping products it has 40000
stores for super marketing. Tesco is followed Ansoff widely. For loyalty scheme, Tesco has club
card system for personalising data and website. It provides customer to experience reliable online
marketing and servicing. To target market, Tesco divided customer into two sections for rich and
poor simultaneously.
Task 4
P6- Developing a coherent marketing mix for a new product or service
Mix marketing is another efficient strategy to define price, launch, product improvement, place
and many things to acquire market. For improving in the market like Aldi Tesco has also need to
follow mix marketing to get an authentic business outcome (Fan et al. 2016).
Conclusion
Tesco is doing good business with honesty for improving the health of the public. In reaching top
position constantly Tesco should follow Ansoff Matrix and mix marketing to plan a business
strategy to beat Aldi.
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Reference List
Fan, S., Lau, R.Y. and Zhao, J.L., (2015). Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Holliman, G. and Rowley, J., (2014). Business to business digital content marketing: marketers’
perceptions of best practice. Journal of Research in Interactive Marketing, 8(4), pp.269-293.
Huang, R. and Sarigöllü, E., (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer New York.
Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., (2013). ANSOFF matrix, environment, and
growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), pp.196-
206.
Jenkin, G., Madhvani, N., Signal, L., and Bowers, S. (2014). A systematic review of persuasive
marketing techniques to promote food to children on television. Obesity reviews, 15(4), 281-293.
Pykett, J., Jones, R., Welsh, M. and Whitehead, M., (2014). The art of choosing and the politics
of social marketing. Policy Studies, 35(2), pp.97-114.
Rahmani, K., Emamisaleh, K. and Yadegari, R., (2015). Quality Function Deployment and New
Product Development with a focus on Marketing Mix 4P model. Asian Journal of Research in
Marketing, 4(2), pp.98-108.
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