Tesco Marketing Strategies: Promotional Tactics, Policies & Analysis

This report delves into the promotional tactics and policies employed by Tesco, analyzing the effectiveness of their marketing strategies amidst various challenges. It evaluates Tesco's creative marketing skills, knowledge, and the application of marketing theories, including the AIDA model and the communication process. The report highlights Tesco's shift from traditional promotional methods to digital marketing, focusing on customer experience and relationship building through online platforms. Ultimately, the report concludes that Tesco has successfully implemented marketing strategies to regain its market position by differentiating its products and enhancing customer service, leading to increased sales and customer loyalty. Desklib offers a platform to explore similar marketing reports and assignments.

Running head: PRINCIPLES AND PRACTICE OF MARKETING
PRINCIPLES AND PRACTISE ON MARKETING
Student’s Name
University Name
Author note

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PRINCIPLES AND PRACTICE OF MARKETING
Executive summary
The purpose of this report is to undertake research into the promotional tactics and promotional
policies of the undertaken by the supermarket Tesco. It analyzes the effective marketing
solutions undertaken by the organization during the challenges faced by the company. It
determines the creative marketing skills and knowledge of the company. It critically appraises
the marketing theories applied by the organization. It explores the AIDA model applied by the
organization and the communication process implemented by the company. Lastly, the report
concludes that the organization has successful implemented the marketing strategies to gain back
its position in the market.

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PRINCIPLES AND PRACTICE OF MARKETING
Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Company background..................................................................................................................3
Promotional tactics and policies of Waitrose..............................................................................5
Task 2...............................................................................................................................................8
Theories applied in the past and current marketing concepts......................................................8
Critical appraisal of marketing practice of Waitrose...................................................................9
AIDA model applied by Waitrose.............................................................................................10
Communication process of Waitrose.........................................................................................11
Evaluation of the effectiveness of the tactics............................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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PRINCIPLES AND PRACTICE OF MARKETING
Introduction
The respective portfolio throws light on the marketing promotional tactics of the chosen
supermarket Waitrose, and application of the practical promotional mix of the organization. The
assignment determines the strategies and tactical plans that are used by Waitrose utilizing the
sound information base. I have analyzes the marketing skills and knowledge of Waitrose and
provides broad picture of the promotional techniques used by the organization. It utilizes the
promotional mix portfolio of Waitrose and evaluates the effectiveness of the promotional Tactics
used by the organization. The assignment proposes to understand the theories and the current
marketing concepts of the organization and explores the effective way of managing the tactics by
the organization.
Task 1
Company background
Figure 1: Waitrose logo
(Source: Waitrose.com 2019)

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PRINCIPLES AND PRACTICE OF MARKETING
Waitrose is one of the nation’s foremost food retailers company in UK. The founders of
the company are Arthur Rose, Walance Waite and David Taylor In the year 1904 in West
London, Acton Hill. The company employs more than 37,000 employees in the organization.
Presently the firm owns 185 branches all around Scotland, Wales and England, which offers
enthusiastic and valuable service to the customers. The company generates a turnover of around
6 billion. Waitrose aims to provide to its customers expertise and facilitates quality service to the
customer.
They propose to offer value service to the clients and also aim to offer quality products to
the customers for money. The company offers to its customers, grocery items, bakery products,
dairy products, fruits and vegetables, health products, kitchen essentials, laundry items, gifts and
toys for children, fashion, stationary items and even party food items including desserts,
cheesecakes and wedding cakes for its customers. The supermarket plans to increase its global
presence all across the United Kingdom and beyond the geographic boundaries. It plans to
establish and develop new retail stores in a new format and create partnership with other
supermarket retail stores (Waitrose.com. 2019) the company plans to strengthen its food and non
food section along with fashion and other essentials. It delivers its service all across the UK.

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PRINCIPLES AND PRACTICE OF MARKETING
Figure 2: The store layout of Waitrose
(Source: Waitrose.com 2019)
The pictures shows the entire layout of the store and the products displayed throughout
the store is shown in the picture.
Furthermore, I tried to identify that Waitrose offers wide variety of products on food and
drinks in the supermarket. The company aims to diversify its sores all across UK in order to
increase their market share. The company has gained sustainable market share since it was
established. The major competitors of the company include Tesco, Sainsbury’s, Marks and
Spencer (Campbel and Cunningham 2018).
Their ultimate aim is to target the section of the upper market. The customers of the
company usually purchase the variety of quality products and services offered by the company at
a reasonable price. Waitrose aims to build in brand loyalty by offering to its customer

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PRINCIPLES AND PRACTICE OF MARKETING
differentiated products and service and by provided them products of high class. This is one of
their competitive strategies. The company aims the retail shops in the town, by presenting to its
customers wide range of products and services. The company concentrates on differencing its
products from its competitor products and aims to attract the upper section of the economic
crowd (Campbel and Cunningham 2018). The company mostly encourages British product and
provides goods through various dairies and farms. Waitrose takes various initiatives to maintain
their image by focusing on offering environment friendly products.
Figure 3: Store layout of Waitrose
(Source: Waitrose.com 2019)

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PRINCIPLES AND PRACTICE OF MARKETING
From my point of view the real image of the store and shows how the products are
displayed on the selves according to the type of brands. It is displayed in a way so that customers
can locate products easily.
Promotional tactics and policies of Waitrose
Waitrose has the most effective business strategy and its promotional tactics stands to be
the most effective policy for generating more sales and acquiring loyal customers. The company
focuses on promoting its products and services to its customers in a different way than its
competitors. It offers value to its customers in the most innovative and effective way (Campbel
and Cunningham 2018). The loyalty scheme of the company is based on customer satisfaction
rather than lowering the prices of the products and services. In my point of view the company’s
marketing strategy is considered to be most effective and they do not need to change their
strategy. The company rightly claims that they have not lost any of their valuable customers. I
came to identify that the loyal customers are often termed as gold shoppers and some of them are
called silver and bronze.
Regarding its promotional strategy the company continues to invest more than 500
million in implementing its promotional technique. Waitrose core promotional tactics include
differentiating its products and promotions from its competitors. The company focuses on the
providing value and enhancing the customer experience of the company rather than just reducing
the price, it is the main difference between the Waitrose and it competitors.
The company replaces the traditional policy of offering discounts and price cuts, into
focusing on the services provided to the customers and enhancing the customer experience in the
stores. The supermarkets focus on offering fresh foods as well as food-on-the-go sections for its

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PRINCIPLES AND PRACTICE OF MARKETING
customer. Moreover, the company offers free samples, offering free tea and coffee to the
member of the company. Waitrose has introduced new added features in the supermarket
including standalone juice bars and entertaining section such as “grazing areas” including
various beverages, bakery and drinks, which the customers can purchase and enjoy them in the
store. This has become the most successful tactics of the company. I have noticed that
promotional technique of the company has proved to be most popular among the customer. The
enhanced customer experience in the store has generated more sales, these services has beat the
expectations of the customers and has increased profits with 50 percent ahead of the budget of
Waitrose (Doole and Lowe 2018). Moreover, the company offers to its customer a “welcome
desk” which may offer to its customers free drinks, coffee, tea and water. It also provides service
to its customers such as dry cleaning and more. The welcome desk concept has increased
customer service efficiency and increased customer satisfaction..

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PRINCIPLES AND PRACTICE OF MARKETING
Figure 4: In store promotion of waitrose
(Source: Waitrose.com 2019)
The picture shows the promotional strategy to welcome the customers by offering them free
drinks to enhance customer experience. This strategy is applied by the company to offer better
facilities to the customers.
Other promotional techniques used by the company are enhancing the online service
provided to its customer (Doole and Lowe 2018). Waitrose has launched a new website
imminently for implementing its wine business; it offers to its customers a closer relation
between the content of the organization and commerce. It offers to its customers new product
pages which provide to its customers various information about a product, they provide an option
to the customers where they can provide their views and reviews about the product. I have
analyzed that, collecting the reviews and recommendation the company is able to access the
requirements of the particular product and bring about necessary changes in the product
according to the customer’s requirements. The customers are even provided with video
recommendations from the employees of the organization which shows to its customer’s detailed
information such as the uses of the product, to its customer. This tactics enabled by the company
has further enhanced customer experience and generated more sales.
The company previously used to perfectionlize a particular product before launching,
however, presently; the company tries to continuous upgrade its products and brings innovations
into the products. The process of launching the product has become much faster and it gathers
information and feedback and reviews from its customer from the websites and bring relevant
improvements in the products according to the feedback and reviews given by the customers.

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PRINCIPLES AND PRACTICE OF MARKETING
The company previously follows the technique of traditional approach and implemented the
same approach as its competitors. However, the company presently focuses on the differentiation
of the products and services from its customers.
I have analyzed that the promotional tactics and marketing practice of Waitrose are
highly efficient which helps them grow the company with increased sales and meeting the sales
targets. The company has successfully implemented strategies which helped them differentiate
their products and way of providing service to the customers. As stated by Leeflang et al. (2014),
the company has a positive effect of the promotional offers in order to increase the level of
gaining new customers. It aims to have a global presence in the world. Moreover, the company
introduced its new stores in and out of the town with new format. However, as stated by
Leeflang et al. (2014), the store size is around 2500 sp meters and accounts to be a small share.

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Figure 5: Online marketing of Waitrose
(Source: Waitrose.com.(2019). Waitrose & Partners.)