Marketing Report: Tesco and Harrods Strategies and Analysis

This report provides a comprehensive analysis of the marketing strategies employed by two prominent UK-based companies, Tesco and Harrods. It delves into their growth and survival strategies, utilizing the Ansoff matrix to examine market penetration, product development, market development, and diversification. The report explores branding and relationship marketing tactics, highlighting how both companies maintain their brand image and customer relationships. Furthermore, it discusses the limitations and constraints faced in marketing, including legal aspects such as consumer protection and trade descriptions. The report also examines the use of market research by Tesco, including primary and secondary research methods, and how this research informs their planning and targeting of specific consumer groups. Finally, the report analyzes the marketing mix (7Ps) for a new product/service, providing a holistic view of the companies' marketing approaches and their effectiveness in the competitive retail landscape.

Introduction to Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1. GROWTH AND SURVIVAL STRATEGIES ALONG WITH BRANDING AND
RELATIONSHIP MARKETING CONDUCTED BY TWO BUSINESS ORGANISATIONS....1
P2 LIMITATIONS AND CONSTRAINTS OF MARKETING.....................................................3
P3. MARKET RESEARCH USE....................................................................................................3
P4. USE OF MARKET RESEARCH IN PLANNING...................................................................4
P5 TARGETING OF GROUPS......................................................................................................5
P6 MARKETING MIX FOR NEW PRODUCT/SERVICE...........................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing is a process of selling goods and services to buyers for gaining profits which
ends with satisfying the target customers. The mentioned concept includes promotion,
distribution, advertising and delivering product to the end users. Present report is going to
discuss various marketing techniques and its significance in business activities. In addition to
this, report is also explaining the use of marketing research to contribute in the development of
organisational planning. The corporation undertaken for making this report is Tesco which is a
public limited company and dealing in retail industry. Another venture is Harrods which is a
private limited company that is providing quality and luxury goods to its customers.
P1. GROWTH AND SURVIVAL STRATEGIES ALONG WITH
BRANDING AND RELATIONSHIP MARKETING CONDUCTED BY
TWO BUSINESS ORGANISATIONS
Many firms use Ansoff matrix for attaining business goals and objectives. This matrix is
a tool for strategic planning which usually provides direction to managers, executives and
marketers. Component of this matrix are market penetration, product development, market
development and diversification. Ansoff matrix is defining growth, survival, branding and
relationship marketing in context of Tesco and Harrods (Papadopoulos and Heslop, 2014).
Growth Strategy:
Tesco is a popular company in the UK market and having 500000 employees who are
providing effective services to its customers. Cited venture is successfully using growth strategy
for development of its business in the market. Mainly, Tesco is focusing on market development
strategy. As per this approach, firm seeks to achieve growth by existing products in the new
market. In this strategy, company's main purpose is to expand its business and goodwill in new
market. Organisation is having large range of existing products which satisfy the needs of
customers. Promotion of these products in new market helps in creating positive impression on
the minds of new customers. On the other hand, Harrods is a private sector retail firm in the UK
retail industry which is giving various quality and luxury products to its customers and satisfying
their expectations effectively (Schaeffer and Balazs, 2015). Growth strategy for cited firm is
playing a significant role and can particularly give emphasis on market penetration strategy for
getting large number of customers in the existing market. With the help of this aspect, firm can

expand its business in existing market segments. Main objective of mentioned aspect is to
expand its market share and Harrods has successfully adopted this strategy in the UK market.
Survival strategy:
In context of Tesco, main objective of the firm is to satisfy customer’s needs and wants
regarding its product and services. Survival strategy for the cited venture is customisation which
means it offers products and services according to the needs of the customers. With the help of
identifying customer’s needs, Tesco emphasises on fulfilling their requirement. This strategy
helps in developing competitive advantage of the firm over major competitors. On the other
hand, survival strategy Harrods is to provide quality and luxury products to its customers. It
helps in making its business operations smooth as well as a strong brand image in the UK market
(Anderson and et.al, 2015).
Branding:
Tesco has maintained its brand image in the UK market and in different countries as well.
It has unique products and services which differentiate it from the competitors in market. This is
the only reason of their high goodwill across the world. On the other side, Harrods have also its
different brand because of its luxury products. The cited venture brand is admired, valued and
respected throughout the world. It has maintained the integrity by never lowering its standards. It
focuses on new premium in which value is more important than price. It offers unique range of
products and services for special range of people.
Relationship marketing:
Tesco has successfully satisfied the customer values and their demand in market. In order
to maintain good relationship, company adopts feedback option so that it can access actual
requirement of the customers. The cited venture has maintained effective relation with its
customers (Barrow, 2016). On the other hand, Harrods uses various social media measures to get
connected with customers and also to interact with them constantly.
P2 LIMITATIONS AND CONSTRAINTS OF MARKETING
Limitation and constraints are those components which assist as a major resources for the
cited venture and work with best of their capability to attain their desired objectives. Some of the
legal constraints for cited business venture are:
 Consumer protection from unfair trading act 2008- As per this act, customer have right to
protection of their health and money. This concept usually protect from unfair trading and

assures that customers do not lie from marketers. For example if company lie to its
customers that on food product have 50% discount on Sunday. This will encourage the
customers to purchase quickly. However if news is fake then the company might be
breaking the rule of consumer protection (Berkowitz, 2016). Sale of goods act, 1979: As per this act, seller cannot sell that products which does not
match to customer purpose or requirement. This states that the products which are sold by
the firm are generally fit for the purpose. Furthermore, this aspect of law is for protect
customer and also ensure the quality of goods which is defined. For example if company
has breached this contract by selling the butter as oil. This shows that the product sold
was not fit for purpose.
 Trade Description act 1968: As per this act, seller should give descriptions about product
and services in both manner that is verbally and in writing. It covers factual statements
about the physical qualities of products that is size, capacity, performance, place of
manufactures and previous history. Furthermore, venture need to be provide truthful
information and also the description of product needs to be given in clear and effective
manner.
P3. MARKET RESEARCH USE
Market Research is used by Tesco to help them improve their goods and services. Tesco
have made many improvement within their website and international businesses. They have also
increased customer’s choice by including a variety of products with promotions which are
attracting more customers, therefore increasing their profit. Primary Research carried out by
Tesco
Company uses primary research through surveys, questionnaires and face to face interviews
which has increased their customer feedback (Cresswell, 2014). By using the primary research
Starbucks has managed to improve on their products and services by good promotional offers
that are attracting more customers. Tesco uses quantitative research such as interviews and
surveys to get to know the different customers choices. This has helped them to improve their
goods and services. Starbucks also used qualitative research to help improve their branding, they
did this by looking over previous interviews and observations. Tesco uses secondary research to
find out about their competitors, they use old reports, surveys and questionnaires to help them
promote their business in a way that their competitors may not have used. By using secondary

research they have increased their range of food and other products which has introduced many
new customers (Kalenskaya, 2015). Tesco uses sampling to get to know their customers more,
they use questionnaires, surveys, interviews and promotions to help them understand their
customers. Tesco often give out food and other samples to gain their customers opinions this
helps them to find out about their customers likes and dislikes.
P4. USE OF MARKET RESEARCH IN PLANNING
Political factors are usually beyond the control of the organization and businesses need to
anticipate changes and identify any factors that affect the business. The changes in laws and
regulations such as accounting standards and tax requirements can affect the company by
affecting their ability to penetrate the developing markets that involves the political and
economic conditions. However Tesco always monitor the policies and regulations set by the
government. Social factors that can affect the sales of Tesco products the following change of
lifestyle as people change their diets they may want to keep drinking coffee drinks just more
likely the ones with less sugar and less calories. Also with younger people there is an increase in
drinking coffee drinks as it can give them a little sugar rush and more and more younger children
want to drink the new drinks to see what it taste like and what affect it can have on them this can
be due to the fact of the adverts that are shown on TVs and in stores (Maziriri and Chinomona,
2016).
Economic analysis examines the local, national and world economy impact and this
includes the issue of recession and inflation rates for an example during the recession of 2001 the
government took an aggressive actions to turn the economy around by 2002 this means that
Tesco took note of this and how it affect their company back then and as a company they
realized that loan interest rates raised as the economy returned meaning Tesco took low cost
loans out in 2001 to fund a growth in 2002. Technological techniques are valued when
promoting a product. This creates opportunism new products and any product improvements in
the terms of marketing. As the technology advances Tesco will follow not far behind to do
anything to get there products seen more by the public. Tesco will do this by advertising their
new products for an example Starbucks life on websites, TV, build boards and many other ways
like through franchises.
P5 TARGETING OF GROUPS
 54% of consumers who purchase an Tesco products.

 1 in 4 people say that they’ve purchased Tesco products because their friends also had an
Tesco product.
 For people who have purchased multiple Tesco products in the past five years, less than
30% say that the Tesco services are best in the market today.
 Just 0.3% of people in a recent survey stated that the interface created by Tesco is the
reason why they prefer the brand’s products.
P6 MARKETING MIX FOR NEW PRODUCT/SERVICE
Products: As checked before Tesco PLC has a host of products and services which are
benchmark of the industry with the cutting edge futuristic technologies.
Price: Tesco PLC doesn't believe in competition with other products in terms of pricing
and thus are pricing their products as an aspirational item and not as a utility.
Place: Place is the distribution channel of your products/service. Various distribution
channel are available in today’s era and you need to decide on the combination of single
distribution channel.
Promotion: Since inception Tesco PLC is known as a mega marketer of its products and
services. They launch their annual event of keynotes where they invite the press, developers and
share their new products live.
People: Tesco PLC core strength is its people, its employees are the reason they are one
of the most productive company in the world (Maziriri and Chinomona, 2016).
Process: Tesco PLC is known for its process and operations. They have many factories
across the world and a very systematic process for all the products and services.
Physical Evidence: As discussed in the place heading, they have wonderful Tesco PLC
store which are a class apart and gives a customer a total delight.
CONCLUSION
As per above study, Tesco is a popular company in the UK market and having 500000
employees who are providing effective services to its customers. Cited venture is successfully
using growth strategy for development of its business in the market. Mainly, Tesco is focusing
on market development strategy. Market Research is used by Tesco to help them improve their
goods and services. Tesco have made many improvement within their website and international
businesses. They have also increased customer’s choice by including a variety of products with
promotions which are attracting more customers, therefore increasing their profit. Primary

Research carried out by Tesco Company uses primary research through surveys, questionnaires
and face to face interviews which has increased their customer feedback.
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