Principles & Practices of Marketing

Principles & practices of
marketing

Table of Contents
Background of the company............................................................................................................3
TASK 1............................................................................................................................................4
Covered in Portfolio...............................................................................................................4
Promotion Mix of Tesco.........................................................................................................5
Advertisement.........................................................................................................................7
Direct marketing...................................................................................................................11
Personal Selling....................................................................................................................13
Sales promotions..................................................................................................................14
Public relations.....................................................................................................................17
TASK 2Formal Report...................................................................................................................17
Introduction..........................................................................................................................17
Marketing strategies 1(AIDA)..............................................................................................18
Marketing strategy 2(Above/Below the line model)............................................................20
CONCLUSION .............................................................................................................................22
REFERNCES.................................................................................................................................22

Background of the company
TESCO'S Company is basically a multinational British company that deals in groceries
and general retailer merchandise. Companies main mission or core purpose is to “We make what
matters better, together”. Tesco companies values, vision, and mission are inter related with each
other for shaping a good image or identity of the company in the eyes of the customers. The
values of the company is to serve better services everyday to their customers. When TESCO
company was built the main mission of the organization was to help customers so that they can
utilize better quality of life and also company to become champion for customers. It is the third
largest retailer company measuring by gross revenue in the world, whereas it's the ninth largest
retailer in the world in terms of revenue. The headquarter of TESCO company is in Welwyn
garden city, united kingdom. The firm was founded by Jack Cohen in the year 1919 around 100
years ago. It is a public limited company,Company is serving it's services around the globe, there
are 6,569 shops of TESCO worldwide. While 500,000 employees are working worldwide and
there are 7000 stores of the firm globally. In UK there are 6 (six) distinguished stores formats for
the consumers which are huge in size and product range as well.
The main product in which firm is dealing are supermarket, Hypermarket, superstore,
convenience shop. Around 460,000 employees are working in different parts of the country. The
area where the firm is serving it's services are Thailand, Hungary, United Kingdom, Ireland,
India, Malaysia, Czech republic. The largest TESCO EXTRA is in England in the place known
as WALKDEN. It is spread in the area of 17,230 squares meters and 185,500 square feet of
floorspace. The TESCO EXTRA shops are huge in sizes so, they are mainly located out of the
town while hypermarkets are located nearly public places so, that customers are easily
approachable to the market.
According to statistic illustrations the market share of the TESCO company for grocery
stores in the 12 weeks to august 12, ,2018, the market share stood up to 27.4 percent as compare
to the corresponding period in previous year. Whereas discounters ALDI and LIDL have started
gaining market share every year and TESCO is losing it's market share in the same 12 week
period. In 2001 company gained 15.6% of grocery share and become the leader of market by
6.4%. By September 2004 there was massive growth in the share and raised to 28% and around
12% more than it's market rival. In the year 2004 TESCO was allowed to allowed to buy 10 of
the 52 safe ways stores which were obliged by Morrisons to sell as competition authorities where
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part of acquisition. In the recent years ,TESCO company has faced many allegations in terms of
social as well as environmental. Many of the allegations which company faced are exploiting
small farmer in the UK, employees are paid less and labour rights are minimal, turning town
centres into huge boarded up ghost towns, undercutting almost every other retailers, Co-
operating with Esso other corporates crimes.
TASK 1
Covered in Portfolio
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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).
Source: Promotional Mix, 2019
 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.
 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, catalogs etc.
 Sales promotions: It is another essential technique of promotion mix of which main
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Illustration 1: Promotion Mix

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.
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