Principles and Practice of Marketing - Assignment

Principles and practice of marketing 1
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PRINCIPLES AND
PRACTICES OF
MARKETING
Tesco Plc.

Principles and practice of marketing 1
Table of contents
1.0 Introduction................................................................................................................................3
1.1 Overview of Tesco.................................................................................................................4
1.2 Current marketing strategies..................................................................................................4
1.3 Marketing mix........................................................................................................................4
1.4 Financial.................................................................................................................................5
2.0 key terms....................................................................................................................................7
3.0 Theoretical framework...............................................................................................................7
3.1 David Aaker model................................................................................................................7
3.2 Kevin Lane Keller model.......................................................................................................8
3.3 Brand identity.........................................................................................................................9
3.4 Brand recognition.................................................................................................................10
3.5 Brand positioning:................................................................................................................11
3.6 Brand personality:................................................................................................................11
3.7 Brand affinity:......................................................................................................................12
3.8 How effective is current branding strategy..........................................................................12
4.0 International marketing............................................................................................................13
4.1 key terms and definition.......................................................................................................13
4.2 Why organisation go international.......................................................................................13
4.3. Tesco international business...............................................................................................13

Principles and practice of marketing 2
5.0 Framework of Hollensen global theory and international marketing......................................14
5.1 Sven Hollensen globalisation concept.................................................................................14
5.2 Standardization vs. adaptation of the marketing mix...........................................................15
5.3 International marketing mix.................................................................................................16
5.4 Products................................................................................................................................17
5.5 Price.....................................................................................................................................18
5.6 Place (distribution)...............................................................................................................19
5.7 Promotion.............................................................................................................................20
6.0 Conclusion...............................................................................................................................20
7.0 References................................................................................................................................22

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Principles and practice of marketing
1.0 Introduction
In the contemporary world of business, firms are concerned with establishing measures to
brand itself with the market and gain considerable competitive advantage over other players.
Most of the firms concentrate on what make a brand strong. In this regard, the questions of
branding can only be answered by applying the customer-based brand equity. The framework
assists in comprehending the brand equity and means in which it is supposed to be created,
assessed and controlled. Nevertheless, the tactics of this model is from the user’s viewpoints,
individual or organisation, since they are the focal point of successful marketing.
Since economic crisis in 2008 up to 2010, business managers are again looking to the
future. As they are re-engaging in the global marketing strategy thinking, numerous executive
are wondering if the turmoil was just another turn of the business sequence or restructuring of the
international economic order. However, though the globalisation of goods and services have
stalled for a while, the overall globalisation trends are unlikely to reverse. In the era of
globalisation and the progressively interconnected world, numerous corporations try to growth
their sales into foreign market. International growth offers a novel and potentially more
profitable arena, assisting in increasing the firm’s competitiveness and accelerates access to new
product notions, production inventions and the current technology. Therefore, to fully understand
the international marketing mix, the paper will also analyse the Svend hollensen model into great
detail.
1.1 Overview of Tesco
Tesco’s rapid growth in the recent decade has been driven by its carefully sustained and planned
customer-focused approach. The company is possibly the only retailer industry attractive to

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different market segments, mid-range, upmarket and low-price. It constantly focuses on
enhancing of customer value with concentration actions in zones like pricing, product range,
quality, online customer convenience as well as in store. For instance, back in the mid-1990s,
the company initiated a significant strategic modification with adoption and customisation of the
balanced scorecard policy.
1.2 Current marketing strategies
Tesco aims to become a leader in the retail sector by providing good quality products at
relatively low cost than competitors. One of the objectives of the company is to maximise sales
which will increase the profits further. Tesco will try to optimise the benefit by cutting prices,
establishing more stores, and expanding the existing stores to sell more stock. Another aim of
the company is to decrease the cost. The firm may have a different strategy to achieve the above
objective. One is providing customers giveaways such has “buy one get one free”. Similarly, the
campaign aims to present more healthy eating produces into a wide array of groceries they
supply. The purpose of adding more health goods is to entice more consumers. Another goal of
the organisation is to be of importance to the community by reducing the level of unemployment
in local areas where the Tesco stores stand. Lastly, the company ambition is to improve a broad
internet shopping place. Tesco aims to offer clothing, groceries, and electronic products as well
as some online services. By doing so, the company will attract new clients that are incapable to
shop in outlets.
1.3 Marketing mix
Tesco Plc. offers a wide assortment of products such food, outfits, financial, electronics, and
financial services. The Tesco’s major competitors are Sainsbury, ASDA, K-Market, and
Carrefour, giving difficulties to the firm’s processes (Annual Report and Financial Statements

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2015). The company has a broad range of products offering at its numerous stores. The company
follow the approaches of cost leadership in its pricing strategy; provides lower priced produces
while maintaining quality. The following are types of stores the company have; Tesco metro,
Tesco superstore, Tesco express and Tesco extra. The company large stores are situated about
1,000 square metres in town and city centres. The promotions activities of the firm are founded
on the low prices. It uses large extent promotion discount and offers such as ‘buy one get one’.
Tesco club card allow for the company to target and segment its users.
1.4 Financial
Three years ago, Tesco was experiencing a crisis as it reported a £6.3 billion loss as well as its
brand trust rapidly eroded (Annual Report and Financial Statements 2015). However, the
customers are now returning as the company executive focuses on what makes Tesco distinctive
and connecting that to users. The company turn around was due to the focus on the customers,
cutting prices, customer services and improved availability. The two value equation exists that
makes the Tesco unique. First, the basket charge reduced by 4% between August 2014 and
February 2016 while couponing was down by 37% signifying that company can offer lower rate
to their products (Annual Report and Financial Statements 2015). Additionally, it brand price
ensures that users never lose out on brands outlets.
The introduction of the “farm brand” is also essential to the company's success. Another part of
the approach is to capitalise in what distinguishes Tesco. The situations across the business
remain significant concerns, not only due to the discounts but also the increase of suitability and
online grocery spending (Seth and Randall 2011, pp.12). Assessing the marketing strategy in the
UK industry, there are a lot of similarities in term of marketing mix executing and tone (Bunn