Tesco's Business Innovation: Marketing, Communication, and Success

This report analyzes Tesco's business innovation strategies, focusing on its expansion plans and adaptation to new markets, specifically Ireland. It begins with an introduction to innovation and its importance for business growth, followed by an examination of Tesco's marketing mix, including product, price, place, and promotion, and how these elements are adapted for the Irish market. The report then delves into the Customer-Based Brand Equity (CBBE) model, outlining how Tesco builds brand salience, meaning, consumer responses, and relationships. Furthermore, it explores Tesco's integrated communication mix, encompassing advertising, sales promotion, direct marketing, and public relations, detailing how each method is employed. Finally, the report discusses the measurement of success for Tesco's innovation, including sales targets, market share, profitability, and returns on investment, providing a comprehensive overview of Tesco's approach to business innovation and expansion.

Managing Innovation in
Business

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Adaptation and standardisation of marketing mix..................................................................3
TASK 2............................................................................................................................................4
CBBE model...........................................................................................................................4
TASK 3............................................................................................................................................5
Integrated communication mix and methods.........................................................................5
TASK 4............................................................................................................................................7
Measurement of success.........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation refers to a practice in which helps in development of creative and new ideas for
an organisation. Through the help of this organisations bring in new products and services in
market to expand their businesses to a number of new nations. Following report is done for
Tesco which is a chain of supermarkets (Vom Brocke and Mendling, 2018). This report is
developed as an addition to the earlier report for innovations which can be brought in by Tesco
Plc. In this following report adaptation as well as standardisation of marketing mix for expansion
of company is discussed in this report. Along with this this report discusses about customer-
based brand equity model for the company’s new innovation. At the end the report also discusses
about integrated communication mix methods for company and the measurement of success for
company through its new innovation and expansion.
TASK 1
Adaptation and standardisation of marketing mix
Marketing mix includes 4 Ps of marketing which helps a company to decide on various
factors of marketing. This 4 Ps stands for products, price, place and promotion. Below mentioned
is adaptation and changes brought in marketing mix of Tesco for its venture in new company:
Product: It is dependent on products and services of an organisation which explains how
well these companies meet all the requirements and needs of customers effectively. Tesco is
carrying on extensive research in order to enter into this new market. It has been developed that
the customers in the region are looking for competitively priced high-quality goods. They also
prefer the goods which are produced in country itself. Company is bringing in more branded
products for country as the consumer there prefer these products. Company is often seen to be
adding to its product to meet the requirement of customer. Similarly, it will be adding to its
product range for entering into this new market as well.
Price: This is the element of marketing mix which helps in generating revenues for the firm.
It is often seen that companies face a number of problems while setting up price for foreign
markets rather than that of domestic market. Company came up with strategies of local pricing
for market under which customers had to pay less for a range of products to the company.
Company offers power to the local manager at stores to set up prices for this range of products as

per the competitive and customer need of the company. Competition is a major reason which
have led to reduction in prices of a number of products by the company.
Place: This refers to setting up the stores of Tesco at various locations in Ireland. It requires
50 million euros by company to set up its stores al across Ireland. Company have made a number
of changes in its store specially in those located in Northern Ireland to make them more
convenient for the customers arriving. The stores of Tesco are also operating 24 hours in the area
with a 24-hour shopping policy. They have started development of supermarkets which are
developed in 32000 square feet area. There can however be revolt brought by small retailers of
Ireland claiming that the company is wiping off retailers from market.
Promotion: Company uses the principle of “Brand globally, advertise locally”. This is
giving company a consistent brand name on a regular basis along with the benefits company
have attained from economies of scale. Tesco believes in being consistent with its approach for
marketing but it has brought along some changes in its promotion strategies to enter into Irish
market as it is one a sensitive market (Foss and Saebi, 2018). They have been displaying more
Irish product rather than displaying products of UK. The beef provided by them is specially
advertised as being 100% Irish. Company have also included a tint of green along with its red
and blue familiar colours.
TASK 2
CBBE model
Customer based Brand Equity refers to the fact that how success of a brand can be directly
attributed from the attitude of customers towards that brand. The various factors of CBBE Model
are mentioned below:
1. Who are you? Brand Salience (Identity)- This is something through which company can
distinguish there brand from their competitors. It helps in identifying depth as well as breadth
of awareness about the customer. Tesco have built its brand as a single place which provides
the customer with every basic thing they need. In Ireland as well it will work as a company
which have everything under one roof. It is also changing accordingly for its Irish customers.
2. What are you? Brand Performance and Brand Imagery (Meaning)- This is when
customers of company want to know more about the brand. they get interested in brand and
want to know about its functionality, performance, image, logo etc. The customers of

company will come to know about the performance of company. They focus on how
company works. This also takes into account the family orienteers, eco-friendliness, homely
and cosy feeling which company provides to its customers. This also considers performance
of product such as durability, price, reliability etc.
3. What about you? Consumer reactions (Responses)- It is often seen that human behaviour of
every person is distinct and the judgement as well as understanding of different person can be
different in a number of ways.it is the duty of customer to make their own comparison of
product and services provided by company (Biemans, 2018). Tesco provides best customer
satisfaction and train its employee to maintain proper customer interaction and relationship
so that the perception of customers about company is never negative. Tesco is also hiring
local managers and employees who may effectively understand the behaviour and culture of
people there. It is important that even after being a foreign brand customer effectively accept
Tesco in foreign nation as well.
4. What about you and me? Consumer Brand Resonance (Relationships)- It is assumed by
companies that when a customer is loyal to their brand it is presumed that the customer will
then buy no other products rather than the products of company. For this company is required
to provide customers with a number of facilities because competition in retail market is very
high. Specially when considering foreign markets there are a number of competitors present
which are always ready to offer something better to customers in order to influence them.
Tesco therefore provides its customer with loyalty task so that they can keep their customer
loyal.
It is important for every organisation to build a strong customer-based brand equity. This is a
long and hard process for an organisation to carry on. However, the old brand image of Tesco
will definitely help it while setting up a business in Ireland as well.
TASK 3
Integrated communication mix and methods
The marketing mix communication focuses on various ways through which company
focuses on various ways through which they can easily reach a number of customers through it
(Anwar, 2018). There are four basic essential aspect which company uses for communication

mix within an organisation. Below mentioned is how Tesco uses all of these methods in order to
make sure that their goods and services are communicates well to their customers.
Advertising: the major objective used by advertising for Tesco is to inform the customer,
persuade them, remind them and also reinforce the product in the mind of customers regularly. In
Tesco make sure that the presentation and promotion of its goods and services is done efficiently
through the help of advertising on television, radio, newspapers and so on (Turulja and Bajgoric,
2019). It is a paid form of communication, which is basically meant for a large number of
population, it has an identified sponsor which will be Tesco in the following case, the
presentation is done in such a way that they attract a number of customers so that they can buy
their products and services provided by company.
Sales Promotion: Sales promotion is a way of promotion or communication used by Tesco
in which various incentives, coupons, discount vouchers, short-term sale and so on methods are
used by companies in order to attract their consumers for buying the product and services
provided by them. However, it is a short-term method which cannot be used throughout the life
of a business. This usually includes the value of price of goods or services reduced or free gifts
provided with them for a limited period of time. In order to set up its business in Ireland
company will effectively use sales promotion so that they can gain the attention of customers.
Direct marketing: Direct marketing is an approach in which one to one marketing takes
place. In this kind of marketing the marketer directly shows the prospective customer and
interact with them in order to make sure that the purchase is made by them. There are a number
of ways through which Tesco will carry on direct marketing in its business in Ireland. Some of
the ways Tesco will use for direct marketing or through mails, through response of television or
radio, through internet and also through various means such as Telemarketing. It is an effective
way which Tesco will use as clear data base of customer will be present with the company and
also the response of customer can be measurable when this method of communication mixes is
used.
Public Relations: Public relations basically refers to building good relations with society,
customers and government. In this company make sure that external environment of the
company and people living in this environment have a positive image about the company as well
as all the employs in the company (Sousa-Zomer and Miguel, 2018). In order to make sure that
Tesco have set up a good public relation in Ireland company will follow a number of corporate

social responsibility to make itself visible in the eyes of customer. When in the corporate social
responsibility acts done by company will come in the knowledge of consumer it will definitely
increase the brand image as well as the revenue for the company.
TASK 4
Measurement of success
There are a number of ways in which Tesco will measure the success of the company in
foreign market. Some of the ways used by Tesco for measurement of its success are mentioned
below:
Sales target: At the end of every quarter company will look that the sales target which it
have said in the beginning have been achieved by the business or not. This is a common way of
checking whether the performance of company is according to the plan which is formulated at
the beginning of the period or not. If the sales target is not achieved Tesco will take various
measures such as communication of the product in the market efficiently in order to make sure
that all the targets are met.
Market share: Market share refers to the amount of customers the company have in the
particular industry in comparison to their competitors. It can be measured by comparing the
market share of company in the beginning as well as at the end (Franceschelli, Santoro and
Candelo, 2018). Company needs to develop a number of strategies to attract customers as well as
retain their old customers so that they can increase their market share.
Profitability: Profitability refers to the amount left with company after being of all its
depth and costs. It is essential for a company to earn profit in order to run for a longer period of
time. If Tesco wants to enhance its profit it have to cut down the number of cost and overhead
which aren’t required and are unfruitful for the company in future. Through This company can
increase their profit.
Returns on investment: return on investment refers to the percent of return or profit the
company is earning on the actual investment that is capital which is invested on the business. It is
important that company owns a part of the investment every year so that the business can be said
to be a successful one. There are a number of measures which Tesco will take in order to
increase its return on investment. This includes increasing productivity of employees by training

and development. Using appropriate methods for promotion of goods and services. Making sure
there are no unwanted overheads etc.
CONCLUSION
Through the following report it can be concluded that Tesco needs to change a number of
factors in its marketing and communication mix while venturing into a new market. Through the
help of this company can effectively set up in Irish market and even a number of other markets in
the world. It is necessary for company to make sure that they bring all the required changes in
their communication mix as well as marketing mix. Through bringing in these various changes in
strategies of company Tesco may easily achieve success in all of the new markets. This will help
company to set up its business and also face all of its competitors effectively and efficiently.

REFERENCES
Books and Journals:
Vom Brocke, J. and Mendling, J., 2018. Business process management cases. Digital Innovation
and Business Transformation in Practice. Berlin et al.: Springer.
Foss, N.J. and Saebi, T., 2018. Business models and business model innovation: Between wicked
and paradigmatic problems. Long Range Planning, 51(1), pp.9-21.
Biemans, W., 2018. Managing innovation within networks (Vol. 7). Routledge.
Turulja, L. and Bajgoric, N., 2019. Innovation, firms’ performance and environmental
turbulence: is there a moderator or mediator?.
Sousa-Zomer, T.T. and Miguel, P.A.C., 2018. Sustainable business models as an innovation
strategy in the water sector: An empirical investigation of a sustainable product-
service system. Journal of Cleaner Production, 171, pp.S119-S129.
Franceschelli, M.V., Santoro, G. and Candelo, E., 2018. Business model innovation for
sustainability: a food start-up case study. British Food Journal.
Anwar, M., 2018. Business model innovation and SMEs performance—Does competitive
advantage mediate?. International Journal of Innovation Management, 22(07),
p.1850057.