Tesco's Pricing Strategy and Marketing Mix: A Comprehensive Analysis

This report analyzes Tesco's pricing strategy, focusing on its cost leadership approach within its marketing mix. The report explores how Tesco leverages its economies of scale to expand market share by offering lower prices while maintaining a competitive advantage. It highlights the importance of the marketing mix, particularly the '4 Ps,' in launching products and gaining a competitive edge. The report also examines the potential negative consequences of incorrect pricing strategies, such as customer loss and reduced loyalty, and how Tesco mitigates these risks through programs like its Brand Guarantee. The conclusion emphasizes the role of the marketing mix in understanding market conditions and customer preferences, enabling companies to offer products at optimal prices to attract and retain customers. The report also discusses Tesco's efforts to strengthen its distribution channels and supplier relationships to ensure product availability and customer satisfaction.

MARKETING MIX
Marketing Mix emphasize on placing right product at right
place with desirable price and promotional technique.
Marketer basically focuses to prepare actions or tactics for
these four P's of marketing before launching an innovative
product in the market to gain competitive advantage over its
rivalries.
Pricing is one of the essential component of marketing mix
which refer to the amount at which customer gets the product
and fulfil their DESIRE.The company has the authority to
determine right price of the product based on competition
rate, customer base, market share of company, demand of
product ans so on. In context to Tesco company has adopted
cost leadership price strategy, within such strategy company
tend to expand the market share of product by reducing the
price and well as per unit profit margin of company.
Additionally, Tesco has utilised the advantage of its
economies of scale in order to expand its market reach.
Thus, company has received huge advantage of setting stable as well as
low price as it has enhance the huge customer base of loyal customer.
Along with that company has strengthening its distribution channel,
formed good supplier company relationship so that customer does not
find shortage of inventory. Moreover, company run attention seeking
programme such as Brand Guarantee programme. Within this
programme if customer gets any branded product at other place then
Tesco matches lowest price. Hence, through these types of programme
company translate the message to the customer that they serve best
quality product at a reasonable price.
Such promotional program does not incur much expense of
company but receives huge applause from the society. On
contrary there are very negative circumstances of choosing
wrong price strategy such as company can loose their
existing as well potential customer, gives the advantage to
their competitor to capture huge market, decrease in loyalty
and trust of customer for respective brand. Further, in order
to reduce the dissonance of customer Tesco has maintained
its low price even it launches new category say new food
brand. Therefore, company keeps on restructuring its
offering to brin g most suitable offers for the customer.
From the above report it has been concluded that marketing
mix assist the company to gain the insights about marketing
condition as well as preferences of customer. It makes the
task easier for company by placing right product at optimum
price so that the offering can appeal the interest of customer.
CONCLUSION
MAIN BODY
INTRODUCTION