Tesco's Marketing Communication Strategies: A Case Study Analysis

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Marketing Communication for Academic Purposes
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Table of Contents
Introduction...............................................................................................................................3
Discussion................................................................................................................................4
Discussion................................................................................................................................4
Conclusion................................................................................................................................6
Reference List..........................................................................................................................7
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Introduction
The market info graphic and the competition assessment are viably examined with
SWOT. The application of SWOT analysis is one of the extensively used analytical
methods that help the organisation to identify the possible benefits of the internal and
external business environment for the organisation to tap into and the adverse
impact that the organisation should take a measure on mitigating them. The
organisation of Tesco delves in the business of food retail sector. It was founded in
the year of 1910 (Tesco.com, 2019). The number of employees is around 400,000.
In the study, the organisation of Tesco is going to be applied with the SWOT.
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Discussion
The organisation of TESCO has been observed with the advances in the business
info graphic as well as the cumulative understanding of the consumer behaviour in
the food consumption. This could be asserted on the scopes of receiving exposure,
coming on the backgrounds of more than 100 years of experience in the food retail
sector and is considered as one of their strength in their aspirations of expanding the
business operations. The company has been able to assert on the international
market in order to cater to the diverse consumer faction as compared to the market
penetration of the competitors like the Marks and Spencer, Sainsbury. The new
launch of the stores of “Fresh and Easy” has been quite alleviating in the business
role models by developing a unique strategy that would provide the organisation with
sustainability in the future (Fatricia, 2017).
The strategy lays emphasis on the facets of keeping the pricing models on a regular
basis as compared to the promotional offers that are provided in the weekends. This
has provided considerable potency, as the consumer faction is appealed to such
pricing strategy in the times of economic recession. The company has considered
the development of the infrastructure of distribution centre in the strategically devised
location (BLUE et al., 2016). The company has been also observed to the increased
purchase of warehouses in order to build up on the storage capacity. The strategic
location has helped in quick distribution of the fresh products and has kept the
operational cost in check, as it does not include financially extensive refrigeration
cost. This poses as one of the significant strength.
The initiative of Fresh and Easy stores might be demonstrating the contribution to
the cause of Tesco on apparent terms, but it has been observed that, the
organisation has been only able to generate about 30% of the targeted sales
(Fatricia, 2017). It has reflected on the expenditure of the $700 million dollars and
has asserted only on the meagre implications of the Return of investment. Hence,
the consideration of such a huge allocation of the finances to an experimental
venture has proven to be a weakness on the operations of Tesco. The stores have
been developed without giving much importance to the fabrication and decor hat is
appealing to the consumer faction and have invested the fund in the acquisition of
warehouses and this imbalance in the budget allocation has resulted in poor store
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experience. One of the most restraining factors to the growth of the company has
been the non-adherences of the loyalty program to the appraisal of the Fresh and
Easy store. This has been considered as one of the significant regressive factor
because this is an advent for the organisation to levelling up the brand image
propositions in their current line extension.
The opportunities of the organisation, Tesco includes the stocking up of the shelves
with the products of on-the-go consumption food products that is prevalent in
alignments with the cuisine inclinations, demonstrated by the consumer demography
of the developed nations. If the organisation were able to tap into this particular
target audience, this would enable the company to make up for the financial
expenses that were initiated in the first place as well as provide sustainability to the
operations in the international market (Ayodele et al., 2017). The major competitions
in this line of business have been observed with the increments in the department of
internet grocery. The company could make possible use of the alleviation in the
mobile applications and facilitative Graphic User Interface that would appeal to the
changing trends of ever-increasing techno-savvy consumer population.
The major threat that revolves around the expansion of the operations in the
saturated market is that there this a decent number of competitions in the form of
local food retail stores in the developing nations. The customers are generally
apprehensive in changing their brand loyalty, as their quite correlated with the terms
of credibility of the local stores and hence this would result in the decreased pricing
competition. The international scene has been dominated with the means of
unemployment rate. The increase in the unemployment rate has been reflected with
restricted purchases of food products and hence the acquisition of such a huge
number of warehouses could pose as a significant financial threat.
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Conclusion
Through the study it has been observed that the initiative of “Fresh and Easy” stores,
undertaken buy Tesco has resulted in the increased customer attraction, but has
failed to live up to the financial proficiencies that is reciprocated by the aspirations of
the initiative. The study also sheds light on the increased threats through the
reflections on induction of food retail companies on an exponential scale.
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Reference List
Ayodele, A., Abdallah, N.M. and Issaka, Y., 2017, USING TESCO AS A CASE
STUDY.
BLUE, F.R.O.S.T. and STRATEGY, O., 2016, STRATEGIC MANAGEMENT
RETAIL INDUSTRY AND TESCO.
Fatricia, R.S., 2017, STRATEGIC ANALYSIS OF TESCO SUPERMARKET.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and
practice. In The marketing book (pp. 108-142). Routledge.
Tesco.com. 2019. Tesco :: Online Groceries, Banking & Mobile Phones. [online]
Available at: https://www.tesco.com/ [Accessed 15 Feb. 2019].
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