Marketing Management Report: Customer Value and Supermarkets in UK

This report provides a comprehensive analysis of customer value and value proposition within the context of UK supermarkets. It begins with an executive summary outlining the key topics, including the role of value proposition, customer value, and their relationship to a firm's financial success. The report defines customer value and value proposition, explaining their significance in marketing strategies. It then explores the value delivered by UK supermarkets, including Asda and Waitrose, and delves into the specific value offered by Tesco. The report examines customer segments and their required value, analyzes supermarket websites, and offers recommendations for enhancing customer value and value proposition in the current market. The conclusion emphasizes the importance of adapting to the changing environment to improve customer experiences and financial outcomes.

RUNNING HEAD: Marketing & Management 0
Marketing & Management

Marketing & Management 1
Executive summary
The marketing and management is the process of emerging strategies and scheduling for the
products and services. It simplifies the activities which has role in the distribution of the
goods and services. It has gained importance in order to meet competition and need of the
customers. This report includes the role of the value proposition in the supermarkets. A study
on the supermarkets in Southampton, UK is done. The customer value is defined in the report
along with the value proposition. The relationship between both the concepts is also
explained in the context of firm’s financial success. The value delivered by the supermarkets
is also defined. The value delivered by the local supermarket is also explained in the report.
The supermarket customer segment along with the value required is described. The analysis
of the website of the supermarket is also done. Finally the recommendations are also given to
the supermarket.
At the end, it can be concluded that the supermarket can enhance the customer value and
value proposition by adopting the changes in the advanced environment.

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Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Customer value......................................................................................................................................3
Value proposition..................................................................................................................................4
Explanation of the concepts critical to firm’s success...........................................................................4
UK supermarkets value delivered..........................................................................................................5
Local supermarket value delivered to you.............................................................................................6
One local supermarket customer segment and value required...............................................................7
Website analysis....................................................................................................................................8
Recommendations.................................................................................................................................8
References...........................................................................................................................................10
Appendices..........................................................................................................................................12

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Introduction
The loyal customers have big hand in the success of an organization. The loyal customers
spend money and recommend to others for the same organization. It creates and delivers
value for an organization. The high level of competition in the market makes it composite for
a company to deliver the value required by the customers (Huang, Zhou and Guo, 2017). On
the other side, the customers also identify the value inversely due to their varying needs. The
modelling and mapping value propositions help in better considering the value a company
likely to offer to the customers. This report comprises the value proposition concept in
marketing and the way customers observe the value conveyed by the firms in Southampton,
UK. The important concept like customer value, value proposition and their role in the
financial success of a firm has been defined.
Customer value
The customer value is the level of satisfaction perceived by the customers towards a business.
It is the worth of a product or service to a customer. It is more of a feel which is felt just after
making a purchase for goods and services. The customer value represents opportunity for a
business to move ahead of the competitors by offering consistent and friendly customer
service experience (Steenkamp, 2017). The customer value can be defined as
Customer value= Benefits-Cost (CV=B-C)
The customers spend a lot of time, power, energy and convenience at the time of making
investment more than just cash. The benefits vary to the customers which can cause shift in
the value. The value is not same for all the customers, what is important to one may not be
important to another. The factors contributing to the creation of value are sourcing, sales,
operations, processes, marketing and customer service. All of these factors affect to the
customers either in the direct or indirect matter. The customer value considers the subjective
perceptions which can be influenced but not controlled (Villeneuve and Pasquier, 2017).
There must be an association between two perspectives of value. These are:
Internal value: The internal value represents where value is profit from the shareholder’s
perspectives.
External value: The value is stated as gratification from the customer’s opinion.

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The perceived value of the customers is the trade-off between perceived assistances and
sacrifice. The perceived assistances comprise the physical and technical features of the
product. On the other side, perceived sacrifice comprises the activities of purchasing,
matching prices, transportations and connections. It reflects that tallying more assistances and
reducing sacrifices can actually result in increasing customer perceived value (Riefer, et al.
2017).
Value proposition
The value proposition measures value different from the outdated measure of value. It views
the business from the perspective of the customers. The value proposition is a marketing
proclamation used by the company to summarise that why customers should purchase the
product or use service (Vuppala and Lakshmi, 2018). The value statement has capability of
convincing customers for purchasing particular products or services. It delivers specific
benefits. It explains why the customers should from a company instead of trying from the
competitors. The value proposition is more of a promise made by the company towards
customers. It is an appeal to the decision making drivers to the customers (Brian, 2015).
The value proposition is a fragment of the business strategy and is developed on the basis of
appraisal and analysis of the costs, benefits and value which an organization can convey to
the customers. The value positions serves as a marketing statement along with the sales pitch.
An organization crafts the value proposition for the target audience and speaks values which
can target audience. For instance, a value proposition aiming customers who want reliability
should be spoken about the reliability of the products and services. It intends to differentiate a
company (Reinartz and Linzbach, 2018). The organisations can freely choose the value
proposition model as per the suitability of the internal and external needs. Therefore an
organization is required to comprehend that how customers act when it comes to deal with
other suppliers. It is required to gain insight into the customer behaviour at specific time and
locations by the organizations. The value proposition should be convincing, differentiating
and clearly communicating to the stakeholders for the organization to be successful. The
customer insights and knowledge should be used for the value proposition statement than just
predictions and imagination (Isaacs and Dixon, 2016).

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Description of the concepts acute to firm’s success
The customer value have significant role in the success of a firm as it creates the maximum
value of the products and services. It even has proactive outreach approach, word of mouth
publicity and successful outcomes for the company. The customer value provides viable
advantage and greater value flow to the organization. It even shapes, reshapes, arrange and
reconfigure assets in order to serve need of the customers which results in recording highest
sales. The customer value provides employees and stakeholders overall purpose of the
organization (Ravald and Grönroos, 1996). It even identifies the buying motivational factors
for the company which has significant role in the areas like differentiation, segmentation and
marketing communication.
The value proposition provides scope of improvement to the organisation by discovering the
scenarios. It includes activities like purchasing and comparing prices. Evaluating such
benefits help the organisation in the value proposition. It even improves the efficacy and
usefulness of the internal process of the specific products which results in cost reduction
along with retaining customers. It also leads to the boost in the sales, increase in the profits,
satisfied shareholders and increase in the market share (Lauritsen and Perks, 2015). Providing
superior value to the customers is considered one of the most critical factors of success.
UK supermarkets value delivered
The UK supermarkets emphasize on focusing the value they pursue to offer to the end
customers. The information derived from the UK supermarkets is given below:
Asda: Asda was established in 1949 in Castleford, Yorkshire. Asda has become a part of
Walmart in 1999. Walmart is one of the largest and best retailers. Asda started operating in
the south of UK in 1970s. It is classified second in the terms of sales. The value is
communicated to the customers through a statement “saving your money every day”. It has
even won the 12th award for maintaining lowest prices in UK. Asda perspective is to lead the
way by offering products at the lowest prices to the customers. It has even widened the gap
with the competitors and is observed by the customers (Fisher, 2018).
Waitrose: Waitrose is operating from more than 100 years and has around 200 stores. It is
one of the most identifiable grocery retailers of UK. The company is associated with John
Lewis Corporation. Its business model confesses that it likely to offer customers best
shopping knowledge accompanied by the outstanding choice, value and consistent service. It

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has been even nominated as top food retailer offering customer service. The company has
differentiated itself by offering quality and fresh food. Waitrose is dedicated as a provider of
quality food which offers advantage over other supermarkets and partnership value. The
company charges higher prices for the quality offered when it is compared to other
supermarkets. It even makes shopping experience easier by offering additional services like
packing, wheelchairs, wheel trolleys, online shopping, accompanied shopping and home
delivery (Woo and Lee, 2018).
The supermarkets are similar and different in some ways. The customers are also not equal in
the value proposition. The customers seek and comprehend values depending on their needs
and expectations (Panzone, et al. 2016).
Local supermarket value delivered to you
Tesco is multinational grocery retailer having headquartered in Hertfordshire, UK. It is the
third largest retailer in the world. The loyalty card campaign of Tesco has been awarded as
the UK’s most popular supermarket loyalty card scheme. The company designs and offers
vouchers to the customers on the origin of their former records so that they obtain the product
preferred by them (Felgate and Fearne, 2015). The website of Tesco comprises the globe’s
most effective online grocery retail business. The company offers value to the customers by
every little help and efforts. The small efforts made by the staff are transformed into the great
service at the end. Tesco understands the environment, community and social responsibilities
which automatically creates customer value. The company has even initiated through various
activities which are capable of creating lifetime loyalty. Tesco seeks to attain these with
consistency. The company relies on a modest mission which is to be the winner for the
customers. The company helps customers in enjoying a better quality of life with an ease of
living. The customers want boundless products at great value so Tesco serves shoppers a little
everyday better. The company serves 66 shoppers every second in UK with the goal of
providing better service (Freire and Rudkin, 2019). The values of Tesco have role in
understanding customers. It is the first to encounter needs and act reliably for the
communities. Tesco considers what matters to the customers and try to make concerning
things better. The company even interacts with people and carefully listen to them.

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The customers of Tesco perceive the expected value by undertaking the strategy marketing
approach. The customers of Tesco are very trustworthy towards the brand. The loyal card
scheme has influential role in engaging customers to keep shopping. The respondents
mentioned in the club card offer value to them. The reward scheme of Tesco is appreciated as
it offers rewards based on the previous shopping records. The elements like variety of
products, local store and improved quality creates customer value. The quality products are
provided at low prices. The customers also view offers reliable and attractive (Muske, et al.
2015).
The recycling centre is also available by the company at certain stores. There is small shop in
every district along with the main super-store to provide healthier food in the terms of
freshness to the online customers. The customers have even confirmed to attain best quality
products and fresh items at stores (Osorio-Vega, 2018). The customers found everything at
store with the reward scheme.
One local supermarket customer segment and value required
The customer segment consists of:
Fast and furious: Such customers like to complete shopping as fast as possible. Such buyers
are customary and loyal to the supermarkets. The need of such buyers has made supermarket
experienced and highly time efficient. Such people tend to be busy and are ageing between
30-50 years which makes them family or career oriented. The value required for such
customers is to meet their prime need which is convenience (Nenonen and Storbacka, 2018).
Budget conscious: The budget conscious customers are often fixed to their budgets for the
purchasing. Such customers seek for the lowest or discounted prices. These are loyal to the
lower priced brands. These customers are also likely to switch the brand for the sake of
discounts. These customers are regarded from the low-income families and retirees. The
value for the budget conscious customers is created by everyday low pricing structure.
Smart shoppers: The smart shoppers always take pride in their ability to shop. They are quite
effective in decisive the values and spotting a bargain. The smart shoppers are quite different
than the budget conscious segment. The smart shoppers do not always look for the cheap
products and focus more on the value product offer. The value for such customers can be
created by various sales promotions.

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Variety seekers: This segment consists of innovators and early adopters. These customers are
likely to switch around and try innovative things. Such customers prefer to have innovative
tastes and flavors of foods. The customers are also quite receptive to in store demonstrations.
These customers are regarded young in age and belonging to the high society class. The value
for the variety seeker segment can be created by providing higher quality and higher status
brands (Nicoletti, 2018).
Website analysis
The customers can login on the website of Tesco and avail the best experience. The website
provides a range of products comprising books, electronic goods, broadband and financial
services. The company offers CDROM-based offline ordering program to connect copy stock
lists and send orders. Tesco formally established its website in 2000. Tesco.com supports the
online grocery service. The company even provides safety and health management program
for the operations and employees. The first home shopping was launched by the company in
2006. The purpose of the Tesco’s website is to generate value for the customers and get
lifetime loyalty, The success of the company rest on the people who shop on the website and
people who work for them. The website offers overwhelming experience to the customers
every time. Other than the online super market there is music download shop, holiday
segment, phone and broadband internet services.
Recommendations
The recommendations given to the Tesco are:
Exclusivity: If the same products are offered to the customers, same as competitors than it
can be difficult to justify higher prices. The loyal customers should be offered rewards. They
should be offered prelaunch products before making it public to buy. The special shopping
events should be organized in store. The customers should also be given accessibility to the
special products and online deals.
Convenience: The convenience stores charge a bit more than other stores. The store can be
located by the company at the convenient location and the hours can be extended for the
convenience of the customers. The company is even recommended to make online shopping
experience convenient by offering free or next day delivery. Tesco can even offer in-store

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pick service and the convenience of delivering orders to them. The accessibility to the
extensive range of payments can also offer flexibility to the customers.
Experience: It is considered that shopping is more than the necessity. It should be something
which is enjoyed by the customers. The company is suggested to enhance experience of the
customers. The tried and tested approach can be used by the company to enhance the
experience of the shoppers. It assesses the level of service offered and the areas for
improvement.
Expertise: The customers prefer to buy when expert advice is offered by the retailers. It has
role in transforming the relationship between the company and customers. For instance, if the
company provides advice on the health benefits of the products then the customers are likely
to trust on the expertise and purchase the products.

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References
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Felgate, M. and Fearne, A., 2015. Analyzing the impact of supermarket promotions: a case
study using Tesco Clubcard data in the UK. In The Sustainable Global Marketplace (pp. 471-
475). Springer, Cham.
Fisher, K., 2018. Asda rolls out new mental health policy. Occupational Health &
Wellbeing, 70(5), pp.22-22.
Freire, T. and Rudkin, S., 2019. Healthy food diversity and supermarket interventions:
Evidence from the Seacroft Intervention Study. Food Policy, 83, pp.125-138.
Huang, W., Zhou, W. and Guo, P., 2017. Service Segment Competition with Strategic
Customers: Size or Value, Which Matters?.
Isaacs, B. and Dixon, J., 2016. ‘Making it Local’: The Rural Consumer, the Supermarket and
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Lauritsen, B.D. and Perks, K.J., 2015. The influence of interactive, non-interactive, implicit
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Muske, G., Hancock, C., Reimers-Hild, C. and Dye, A., 2015. Standing Out From the
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Osorio-Vega, P., 2018. The ethics of entrepreneurial shared value. Journal of Business
Ethics, pp.1-15.

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