Marketing Report on TESCO: Industry and Objectives Overview

This marketing report provides an overview of TESCO, a major supermarket in the UK retail sector. It begins by outlining TESCO's objectives, which include introducing healthy products, increasing sales and profits, reducing product prices, developing an online shopping platform, and providing local employment opportunities. The report then delves into an industry analysis, highlighting the competitive landscape of the food and grocery retail market, including key competitors like Asda, Sainsbury's, and Morrison's. It assesses the threats from substitutes and the bargaining power of both suppliers and buyers. The report emphasizes the importance of understanding the retail industry to establish a competitive advantage and maintain market share. The analysis is supported by references to academic sources.

Marketing Report of TESCO

TABLE OF CONTENTS
Objectives of TESCO.................................................................................................................3
Industry Analysis of TESCO.....................................................................................................3

OBJECTIVES OF TESCO
TESCO is one of the gigantic supermarkets of the United Kingdom having a dominating
position in British retail segment in domestic as well as global market. The company was
founded in 1919 by Jack Cohen. The company is developed with the goal of being the market
leader in providing satisfactory services to customers through making their life easier and
better (Tesco Plc. Core Purpose and Values: Our core purpose, 2017). The business has been
developed with the aim of serving shopper a litter better experience at every visit.
Objectives:
Introducing Healthy Products: A wide range of healthy products are introduced through
their stores. The motive behind is to establish their company as a provider of healthy
products. Moreover, for same company interacts with customers on a continuing basis for
changing and innovating their products in accordance with their needs to enhance their
satisfaction level.
Increasing sales along with an increase in profits. Priority will be given to increase in sales,
and if the same is attained than another part of this objective, is to increase profit by
making improvement in productivity (Tesco Plc. Core Purpose and Values: Our core
purpose, 2017).
Reducing the prices of products: An effort has been made by the company to make their
shopping centre cheap so that the services can be attained by the average household.
Develop giant internet shopping site: Its objectives comprise providing groceries, clothing,
electronic goods and other services through making use of online distribution channels.
The company is designing various strategies for attaining this objective.
Providing job to the local community: Decrease in existing unemployment has also been
part of the objective of the company. Further, efficient efforts in same are being made so
that living standard of society can also be increased with an increase in growth of the
company.
INDUSTRY ANALYSIS OF TESCO
TESCO is a part of food and grocery retail industry which is highly intensive in
competition. Assessment of competition in the industry can be done through analysing the

industry in order to ascertain the efficient source of competitive advantage (Lewrick and et al.
2015). Australian retail industry in endures to uphold its impetus, through attaining social and
economic developments. Fundamental elements related to the growth of retail industry in
country are increasing population, vigorous growth in economy, and escalating purchasing
power. Major competitors of business is Asda, Sainsbury and Morrison as they have already
captured eighty percent of the market. The company is part of grocery retail market; threat
relating to substitutes is low for food items and moderate for nonfood items. It is also
establishing shops in local towns in order to create hurdles for a substitute to make their own
pace in market.
The substitutes of the major retailers are not assessed as the main threat, and the
reason behind the same is TESCO is having a stronghold in the market (Pantano and et al.
2017). Suppliers are inclined regarding major food and grocery organization and make the
effort that they continue to operate with same for a longer period. Due to this reason, they
have to negotiate price and provide the lowest available price so that they continue with them
and do not search for other option. Bargaining power of buyer in comparatively high than a
supplier. The reason behind same is that other choices of approximately same quality are
available to the buyer in an easy manner. Thus, the buyer can remain connected only if low
prices are made available with an online option as they are compared easily for shopping.

REFERENCES
Lewrick, M., Williams, R., Maktoba, O., Tjandra, N. and Lee, Z.C., 2015. Radical and
incremental innovation effectiveness in relation to market orientation in the retail industry:
triggers, drivers, and supporters. Successful Technological Integration for Competitive
Advantage in Retail Settings, IGI Global, pp.239-268.
Pantano, E., Priporas, C.V., Sorace, S. and Iazzolino, G., 2017. Does innovation-orientation
lead to retail industry growth? Empirical evidence from the patent analysis. Journal of
Retailing and Consumer Services, 34, pp.88-94.
Tesco Plc. Core Purpose and Values: Our core purpose. 2017. [Online]. Available through
<https://www.tescoplc.com/about-us/core-purpose-and-values/>. [Accessed on 25th
September 2017].