Tesco Sales Promotion Strategies

The assignment provides an in-depth analysis of Tesco's sales promotion strategies, including Buy One Get One Free (BOGOF), lock down pricing, and promoting alternative products. These techniques are used to attract customers, reduce storage costs, and boost sales revenue. The document also explains how Tesco uses Porter's five forces model to identify and address potential threats to its business, such as the threat of substitutes, new entry, bargaining power of buyers, bargaining power of suppliers, and competitive rivalry.

Promotion Mix of Tesco: Promotion mix is considered
to be one of the 4Ps of marketing mix which is
specifically refers to the combinations of different
promotional tools and techniques like public relations,
advertising, sales promotions and personal selling with a
view to maximize sales and profits (Promotional Mix,
2016).
Advertising: It is one of the key factor of promotional
mix which contributes to the brand building and also
how the market perceives the company. It is considered
to be one of the big part of promotional mix because of
its wide and far reach of advertising and the message
that a company can send to its existing and potential
customers. It mainly includes advertisement through
social media, newspaper, magazines, banners etc.
Advertisement
Definition of advertisement: According to Grant Mc
Cracken, 2019 it is a types of promotional activity that is
used by companies in order to promote their goods and
services. It is one of the most powerful marketing tactic that
reaches to large number of customer at a same time
(Advertising, 2019).Advertisement is mainly done by Tesco
in two ways first in In-Store advertisement and second is
Out-store advertisement.
Evidence of In-store and Out-store advertisement
In-store advertisement: This are highly effective marketing
tactic which are being designed to bring customers towards
the store so as to try their products and to build brand and
product awareness. This type of advertisement is helpful in
influencing customer towards their product and services
when they walk through the front door of store.
Personal Selling: It is one of the traditional forms of
promotional tool in which a salesman directly interact
with customers by visiting them. It can be said that it is a
face to face interaction which take place between the
customers and the company representative with the aim to
influence customers to make purchase of the goods and
services.
Direct marketing: In this type of promotional technique
direct marketing technology is being used in order to
target customers individually, example like through
telephone calls, e-mail, catalogues etc.
Sales promotions: It is another essential technique of
promotion mix of which main purpose is to stimulate
customers to make purchase of their products like
through products samples, coupons, offers etc.
Public relations: It is also a promotion mix techniques in
which a firm tries to build relationship with customers by
sharing information with them about an organisation and
about the product and services. In case if any thing goes
wrong on the information front then in that case public
relation department has to step forward so as to rebuild
public image again.
Principles and Practices of Marketing

Out-store advertisement: This is a type of
advertisement which works well for promoting
products in specific geographic areas. As outdoor sign
is considered to be the first thing which a potential
customer sees and it should be sufficient bright and
conspicuous so as to attract attention of customers. Like
Tesco does its out-store advertising through various
channels like magazines, billboards, newspaper, social
media etc.
SWOT model is being used to support the evidence of
advertisement technique of Tesco: Thus, in order to
support the evidence that has been rendered for in-store
and out-store advertisement swot model is being
applied. With the help of this model it can be greatly
understood what all the the strength, weakness,
opportunity and threat that they company suffer and
avail from such advertisement. The images above
proves to be very much helps in attracting large number
of potential customers which result in increasing the
market share and it turns into a major strength for
Tesco. On the other hand when the firm advertise its
product season wise like in rainy season they give more
advertisement of washing machine which help in easily
drying up of clothes so as to attract customers, but side
by side such advertisement affect the demand of other
product of Tesco which is a weakness for Firm.
Similarly such advertisement helps to grab further
opportunity as well, in future if the firm launches new
product or services than in that case company need not
have to create awareness as customers will already be
aware about the tesco products, thus it will term to be
an opportunity for company. Lastly, such advertisement
also proves to be threat for Tesco as the competitors
can easily acknowledge the way a firm uses strategies
to attract customers and similarly the competitors too
will also use which will prove to be a threat for firm as
the customers may shift from company product to its
competitors products.
Direct marketing
Definition of Direct marketing: It is a kind of advertising
activity by which large or small business firm use to
communicate directly with consumer by using different media
sources such as text messages, emails online adds and websites
etc. (DIRECT MARKETING, 2019). In order to sell its
products through direct selling tesco make use of out of store
personnel selling techniques such as e-leaflets, catalogue
marketing, discount codes, etc. so as to influence customer on
spot to make purchase of its products.
Evidence of out of store direct marketing

Customer relationship model is being used to support the
evidence of direct marketing technique of Tesco: Thus, the
above evidence of personnel selling concept of Tesco can be
supported with the help of customer relationship management.
As it is a widely implemented model for managing organisation
interaction with clients, sales prospects and with customers. It
generally involves use of technology so as to synchronize,
automate and to organise business process but also for customer
service and marketing. It overall goal is to find attract, retain and
win new and existing clients. Thus, in order to build customer
relationship Tesco, make use of catalogue marketing and e-
leaflets, discount offers so as to attract large number of customers
to make purchase of their products and services. As catalogue
marketing offers an opportunity to incorporate eye-catching and
make it easy for customers and clients to respond to their offers.
In addition to this in order to build better relationship with
customer firm renders discount offer system too like rendering in
half price, club card fuel save unto 20% , rendering opportunity
for customers to have taste in store itself before making purchase
of products so that customer feel free to make purchase are the
example of offer render by Tesco. Thus, it helps in influencing
large number of customers and building effective relationship
between company and customers.
Personal Selling
Definition of Personal Selling: It is methods mainly
used by large or small companies in order to sell
their product in dynamic market. They basically hire
a sales representative to meet with customer and
discuss the main purpose and benefits about
products (PERSONAL SELLING, 2019).
Evidence of personnel selling
Tesco does it personnel selling in both the
manner In-store and Out of store. In case of In store
personnel selling they render experiences of
sampling products, offers an opportunities for tasting
of product before making purchase of product, so
that it become easy for the firm to acknowledge the
customers preferences.
Whereas in case of Out of store personnel selling firm
visit door to door and contact with individual personally
and communicate about the product and services to the
customers and which helps them in getting immediate
customers feedback and reviews. As well as they try to
get to measure the quality of customer experience
through the process of mystery shoppers report.
Customer relationship management model to support
the evidence of personnel selling of Tesco
In order to support the evidence of personnel
selling of Tesco customer relationship management
model has been taken into consideration which specifies
that it is an approach to managing g company
interactions with potential and current future customers.
Thus in order to manage better relationship with
customers, Tesco give more preferences o personnel
selling as this helps company to improve business
relationship with customers and ultimately helps in
driving sales growth. As with the help of this
promotional technique company can easily get to know
about what the customer thinks about the product and
about an organisation and helps in getting immediate
feedback and helps in maintain long term and better
relationship with customers.
Sales promotions
Definition of Sales promotions: It is consider to be an
effective process of persuading a potential customer to
purchase a particular commodity. It is basically a shot
term techniques that is mainly used to boost the sales for

Evidence of Sales promotions: Tesco mainly does its sales
promotion of products and services only through In store process
by rendering BOGOF, lock down pricing strategy, but alternative
products etc. Here BOGOF refers to the technique of Buy one get
one free. For example like when sinter season just starts off then
Tesco render offer of buy one get one free on summer clothes so
that storage cost get reduced .Lock down pricing is other
technique in which a temporary discount offer is being rendered
in the form like 20% off, 50% off etc. So that customers get
easily influenced towards their products. Moreover such
techniques are also adopted in case when the firm launches its
new product as it helps in attracting customers to make purchase
if new product and to make use of it. Thus, overall it helps in
boosting up the sales revenue of an organisation.
Porter’s five forces of model is being used to support the
evidence of sales promotions: This model incuse fives forces
namely threat of substitute, threat of nee entry, bargaining power
of buyer, bargaining power of supplier and competitive rivalry
Therefore Tesco adopts sale promotion techniques like BOGOF,
lock down pricing, buy alternative products etc. So as to deal
effectively with this five forces of model.
For example, in case when its competitors give
discounts on their products to customer so as to
attract large number of customers, then in that case
Tesco too needs to adopts such strategies of sale
promotion so as to deal with such situation easily.
Second case like if there exist any substitute of
Tesco product and they render product at low price
than Tesco then in that case company also have to
lower its price so as to deal effectively with its
substitute and does not let a threat of substitute to
harm the profitability ratio of an organisation.
Thirdly in case if any new entrant enters into the
market with the offer of same product and with same
quality offered by Tesco then in that in order to deal
with such threat of new entrant Tesco takes sales
promotions technique into consideration. Lastly in
order to deal effectively with the situation of the
bargaining power of buyer and supplier firm adopts
such promotional technique practices in order o run
business smoothly and to maintain long term
relationship with customers.
Public relations: Definition of Public relations: It
is a type of practice that help to manage the
information spread among an individual or other
business firms and public. This mainly includes an
entity to gain exposure to their customer using topics
of public beliefs and news that do not require any
direct payment (Public relations, 2019).
Evidence of Public relation: In order to promote it
product and services Tesco make use of Out of store
technique for building effective public relations. Like the
firm uses press and media coverage by carrying out
sponsorship programmes, sports events, charity events
etc. so as to create positive publicity in the mind-set of
customers towards the brand image of the company.
Corporate Social Responsibility model is being used to
support the evidence of public relation technique of
Tesco
In order to support the evidence of public relation of
Tesco, corporate social responsibility model has been
taken into consideration. Therefore, it is a model which
helps a firm to be socially accountable to itself, its
stakeholders and towards the public. In order o create
awareness about its goods and services in the market
place and to build good and long term relationship with
customer’s company carry out some king of sports
events, charity events, sponsorships programmes etc.
which is a kind of social responsibility towards the
society so as to create positive image about the firm in
the mind-set of target customers. As to engage in
Corporate social responsibility means that a company is
operating towards the enhancement of environment and
society rather than contributing negatively towards the.
Hus, it help the Tesco to build strong public relations
and in attracting large number of target customers to
make purchase of their products and services.