Relationship Marketing Analysis and Strategy for Tesco in Bangladesh

This report provides a comprehensive analysis of Tesco's relationship marketing strategy. It begins with a brand evaluation, outlining Tesco's vision, mission, objectives, and brand value. The report then assesses the market, focusing on Tesco's expansion into Sylhet, Bangladesh, considering demographic and economic factors. A detailed context analysis follows, including customer segmentation, organizational strengths, weaknesses, opportunities, and threats. External factors are examined through macro and micro analyses, including political, economic, technological, legal, and environmental aspects, as well as competitor analysis. The report identifies key issues, needs, and opportunities for Tesco in Bangladesh. A marketing communication plan is presented, detailing objectives, and strategies. The analysis covers Tesco's product focus, promotional strategies, and communication objectives for entering the Bangladesh market. Overall, the report offers a strategic framework for Tesco's relationship marketing efforts.

RELATIONSHIP
MARKETING

OUTLINE
• Brand evaluation;
• Market evaluation;
• Context analysis;
• Relationship marketing analysis: Issues, needs & opportunities;
• Marketing communication plan;
• Relationship marketing strategy;
• Conclusion

Brand Evaluation
Overview of TESCO.
 Tesco is a global UK based groceries and general merchandise retailer.
 Founder- Jack Cohen
 Founded-1919
 Headquarter address- Welwyn Garden City, Hertfordshire, England, UK
 Annual revenue- £57,491 million (2018)
 Area served- UK, India, Ireland, Malaysia, Thailand, Hungary, Czech Republic.
 Website- www.tescoplc.com
 Tesco was found by Jack Cohen in 1919 and at present it is headquartered in England, UK. The
brand is the third largest retailer in the world measured by gross revenue and 9th largest retailer in
the world that is measured by revenues.

TESCO as a brand

Vision , Mission and Objective of TESCO
Vision of Tesco
 To broaden the scope of the industry to enable the brand to deliver a strong sustainable long term growth.
Mission statement of Tesco
 Creating value for consumers to earn their lifetime loyalty.
 We make what matters better together.
Objectives
 To maximize sales and to further decrease their prices to stay ahead from the competition.
 To introduce more healthy eating products into wide range of supplied groceries.
 To be the most highly valued by the targeted consumers that we serve, the communities in which we operate, loyal and committed
colleagues and shareholders.
 They aim to develop a large internet shopping site for all of their product line.

Brand Value of Tesco
 Brand value of Tesco in worldwide is 9.08 billion USD
 In UK the brand value is calculated by 10.8 billion USD

• Tesco is a British multinational groceries retailer.
• It operates and serve its products and services in USA, UK and in another countries like India, Ireland, Thailand,
Hungary and Malaysia. Now it wants to expand its business and want to serve its products and services in
Bangladesh. Bangladesh is situated in North-eastern corner of the Indian subcontinent and bordered by India &
Burma.
• It has population of 163 million.
Market Evaluation

Why in Sylhet, Bangladesh
• Sylhet, in Bangladesh is making major strides in human development that includes and
focuses on gender equity, empowerment of women, reducing population growth and
increasing health and renewable energy.
• The main reason of Tesco to operate on Sylhet, Bangladesh is it is the world 8th largest
population. The capital of Bangladesh is Dhaka. This country in increasing rapidly that is the
main reason of Tesco to expand and serve its services and products.
• Sylhet, in Bangladesh is the 42nd largest in the world in nominal terms and also 31st largest in
terms of purchasing power parity. The GDP in Bangladesh is expanded 7.11 % in 2016. The
expected rate of GDP in Bangladesh is to be 7.20% by the end of the quarter.
20/04/19

3.1. CUSTOMER CONTEXT
ANALYSIS3. Context analysis TARGET SEGMENT
People who are busy with their
work, family, schools, and
other activities who care
about health and prefer
organic prepared meals

3.1. CUSTOMER CONTEXT
ANALYSIS
3.1.1. CUSTOMER CONTEXT ANALYSIS
Proportion of UK consumers who are willing to pay
premium for organic products (Global Retail Tech,
2016)
Advantages of demographic segmentation
• It is easy to apply and use.
• Desired data and information's can be achieved
quickly and cheaply.
Disadvantages of demographic segmentation
• This approach is based on assumption that all
the customers in the same demographic group
have similar needs.
• Changes in people needs can affect this
segmentation.
• Overlapping of classes

3.1. CUSTOMER CONTEXT
ANALYSIS3.1.1. CUSTOMER SEGMENTATION
BEHAVIOURS (KNOWLEDGE, ATTITUDE,
RESPONSES)
Busy people who are willing to eat healthy food
because they are aware of the good impact of food
in their health. They want to have a HEALTHY
LIFE STYLE
Mode of purchase: Online order, Delivery, In-
store visit
Sales of Tesco in 3 years

 There are some strengths and opportunities of Tesco which can help the company in
expanding and serving their products in Bangladesh. On the other hand it has some
weaknesses and threats which can impact on its functions and its activities in negative
manner.
 It is important for the company to analyse internal factors and address its threat and
weaknesses in order to reduce the barriers which can impact its growth and sales.

STRENGTHS
• The main strength of this company is it has various products
and varieties.
• It uses and makes the best and successful market
diversification strategies.
• It operates in various countries which is its strengths.
• It provides the best quality products and services to its
customers.
• The another main strength of this company is effective online
operations.
• It uses the best consumer information tool which is known as
club card.
WEAKNESSES
OPPORTUNITIES
THREATS
3.2.1. ORGANISATIONAL ANALYSIS
• The main weakness of this company is it has weak
financial performance.
• It has faced controversies which impacted on its
brand image.
• As compared to its competitors Tesco has less and
limited presence in emerging markets.
• Some of its layouts are costly and did not match with
the companies ethos.
• It is significant opportunity in order to grow online shopping
for the company as it offers home delivery services to its
customers.
• It has another opportunity as it pursuing international market
expansion strategies.
• It is also increasing its presence in financial service industry
• The main threat which the company has to face is its inability to sustain its
cost leadership competitive advantages.
• It is also facing ethics related problems.
• The another threat in front of the company is currency fluctuation.
• As compared to its competitors it has limited products and services which is a
threat for the company
• Greater stakeholder pressure.
• Rising in raw mater

3.2. INTERNAL CONTEXT ANALYSIS
3.1.2. BRAND IDENTITY AND IMAGE ANALYSIS
The new branding on social media
Unique food concept in an appealing
designed logo and packagingBRAND INDENTITY
Emphasise on the purity of food with fresh,
organic and healthy attributes
Packaging labels organize
information into
compartments
The identity is a coordinated system, just like
the meals
Graphic patterns
on bags and shirts
BRAND IMAGE
BRAND CORE VALUE

3.3.1. MACRO ANALYSIS
3.3. EXTERNAL CONTEXT ANALYSIS
Political
Economic
Technological
•: Political factors like current legislations, political
instability and unemployment rate of the country.
Import duty on the products of the company can
also impact on its business and decision making
process.
Sylhet, Bangladesh is the one who contributes in
increasing and it rapidly increasing economy. This
company has been promoted from low income to
lower middle income country. Sylhet, Bangladesh
has a mixed economy. There are some aspects of
the business that can be determined by the
interaction between sellers and buyers on the basis
of supply and demand. Tax rates of Sylhet,
Bangladesh also impact on the business activities of
Tesco like rate of corporate tax in Sylhet,
Bangladesh was 27.5% in 2008. Labour cost of
Sylhet, Bangladesh also can impact on Tesco.
•Sylhet, Bangladesh is the country who uses advance
technologies and people are also technology oriented. The
use of social media, mobile technology is very much popular
and being used in the country. Most of the people from
different sectors use banking and media. It is important for
Tesco to use social media platform for delivering their
products and services. It should also use mobile apps for

Cont.…
 Legal factors: Legal factors are another main issue which is
require for Tesco to consider. Some laws like labour laws and
employment laws of Bangladesh can impact on the company. It
is important for the company to conduct its operations
accordance with food retailing commission.
 Environment factors: Environmental issues are very high in
Bangladesh so for reducing these issues hundreds of NGOs are
working . It is very important for Tesco to be very careful and
satisfy all environmental needs and not to break any
environmental rules and requirements. Before beginning business
operations it needs clearance from environmental directorate.
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3.3.3. MICRO ANALYSIS
3.3. EXTERNAL CONTEXT ANALYSIS
Threat of
substitutes
 Strong
 High availability of
substitute products
Threat of new
entry
 High
 Moderate costs of entry
 High ease of doing
business
Buyer power
 Strong
 No switching costs
 High number of brands
and substitutes
Supplier power
 Moderate
 Moderate number of
suppliers for organic
ingredients
Competitive
Rivalry
 High numbers of firms
 High aggressiveness
 Low switching costs

Cont.…
External stakeholders
Customers High power Customers are the main key for
the business growth and they
want from the company to
provide them good quality
products and services. They also
seek better customer services
like home delivery etc.
Suppliers Moderate Suppliers want from good and
strong relationship with the
company and also want on time
payment.
Food and hygiene authority High They want from the company to
follow safe and health standards.
Local community Low They want corporate social
responsibility and stability of
business.
The government The government of the country
has high power.
To provide more jobs to
employees in order to increase
and contribute in the economy.
Taxes from the business
20/04/19

External stakeholders
Customers High power Customers are the main key for the business growth and they
want from the company to provide them good quality products
and services. They also seek better customer services like
home delivery etc.
Suppliers Moderate Suppliers want from good and strong relationship with the
company and also want on time payment.
Food and hygiene authority High They want from the company to follow safe and health
standards.
Local community Low They want corporate social responsibility and stability of
business.
The government The government of the country has high power. To provide more jobs to employees in order to increase and
contribute in the economy. Taxes from the business

3.3.5. Competitors analysis
3.3. EXTERNAL CONTEXT ANALYSIS
 Physical stores all over the UK has
Tesco’s direct competitors
 Offer wide range of healthy and organic
products served fresh in-store.
 Sell online or through supermarket
chains are indirect competitors of
Tesco.
 Offer wide range of healthy and
organic products
Direct competitors
Indirect competitors
Competitor analysis is also important for Tesco because it shows the strengths and weaknesses of
their potential and current competitors. This analysis provides offensive and defensive strategic
context in order to identify threats and opportunities. It has direct and indirect competitors which
create competition for Tesco. Some direct and indirect competitors are as below:

4. ISSUES, NEEDS &
OPPORTUNITIES
ISSUES NEEDS OPPORTUNITIES
Health Conscious
Busy work-life
Growth of technologies in Sylhet, Bangladesh and Internet user are increasing
Growth in the population and income
Quick and convenient order and delivery
Provide healthy and fresh
Quick and convenient
Online order and delivery

M
5.1.1. UK ENTRY MODE
5.1. MARKETING
COMMUNICATION PLAN
Product
Straight
extension
Dual
adaptation
Communication
adaptation
Product
adaptation
Adapt
product
Do not change
product Develop new
product
Do not change
promotion Adapt
promoti
Product
invention
SLOGAN
KEY
MESSAGE
Focus to life.
PRINCIPLE
. The club cards a highly innovative scheme launched by
Tesco for attracting the customer in Sylhet, Bangladesh is based
on principle of building relationship with customers and for
gaining loyalty.
:Every little help makes
Christmas

In context of Tesco, an organisation has planned to
enter into new market for increases sales and
profitability. Marketing objective of Tesco is to earn
£150000 within first month of its business operation
sin Sylhet, Bangladesh. In addition to this, an
organisation wants to capture market share of 2
percent. In addition to this, Tesco intends to gain the
loyalty of customers in Sylhet, Bangladesh market.
One more important marketing objective of Tesco is
to open 5 more stores in Sylhet, Bangladesh
The communication objective of Tesco is to
generate the brand awareness. An
enterprise intends to achieve seventy
percent of recognition among the people in
target market.. In addition to this, Tesco
through an effective communication
intends to develop strong relationship with
customers
M
5.1.2. COMUNICATION OBJECTIVES
5.1. MARKETING
COMMUNICATION PLAN
CORPORATE
OBJECTIVES
MARKETING
OBJECTIVES
COMMUNICATION
OBJECTIVES
Tesco main objective is to maintain leading
position in retail industry. In addition to this,
Corporate objective of Tesco is to provide good
quality of products or services to customers at
low cost .

M
5.1. MARKETING
COMMUNICATION PLAN5.1.3. POSITIONING
High quality
Low quality
Low price High price
BRAND POSITIONING
Products Aim
To satisfy the customer needs and provide them with high levelof satisafction

DIFFERENT TYPES OF
POSITIONING
 Functional positioning: It is the strategy which is related to the increase in range as well as quality of functionalities of specific
goods or services. In context of Tesco, an organisation sell the finest range of goods in Bangladesh by utilising the functionality
positioning strategy.
 Symbolic positioning : It is the product positioning strategy which is formulated by marketing manager in Tesco
considering the values as well as aspirations of target customer group. Symbolic product positioning strategy is utilised by Tesco for
positioning its fair range of goods in the market (Armstrong and et.al., 2015. ). In context of Tesco, an organisation uses specific
strategy for positioning clothing products. Business entity sell high price products to narrow customer segment in context of
Bangladesh market
20/04/19

5. Marketing communication plan 5.1. MARKETING COMMUNICATION PLAN
5.1.4. MARKETING STRATEGY – 7 P’S
N

M
5.1. MARKETING
COMMUNICATION PLAN
uses social media as
well as companies’
websites for
communicating with
customers
Communicating
vision, missions,
objectives of an
organisation.
Training and recruitment
Motivation and reward
COMMUNICATION MIX
INTERNAL STAKEHOLDERS
EMPLOYEES
External
stakeholders
Customers, suppliers ,
investors
Using
Communications
To Build and
Maintain
Relationships
Communicating
The brandimage,
the Product and
Service
Communicating
he
Corporate
Identity
Loyalty
program
Customer
engagement
network
Advertising
Sales
promotion
Advertising
Sales
promotion

M
5.1. MARKETING
COMMUNICATION PLAN5.1.5. ORGANISATIONAL COMMUNICATION MIX

M
5.1. MARKETING
COMMUNICATION PLAN5.1.5. ORGANISATIONAL COMMUNICATION MIX
• An especial department has been established by management in Tesco for
handing the customer complaints.
• An organization has seek support from media in order to inform external
stakeholders about future business plan.
• In context of Tesco, Human resource Manager in an organization is mainly
responsible for ensuring smooth flow of information as well as an effective
communication between different functional units.
• Marketing and sales department is mainly liable for facilitating continuous
communication with customers.

M
5.1. MARKETING
COMMUNICATION PLAN
OBJECTIV
ES
communication
objective of Tesco
is delivering
relevant messages
to targeted
customer group
during their
shopping journey.
.
SUPPLIERS
To
communic
ate with
customer
s
o
communicate
with
community
and Support
their
development
Vision, Mission,
Values and
Principles
COMMUNIC
ATION
TOOLS
Media.
RELATION
SHIP
• Trust
• Commit
ment
• Loyalty

5.1. MARKETING
COMMUNICATION PLAN
Donatio
n
Voluntar
y events
RELATIONSHIP
Commitment
MEDIA
Official website
Social Media
Loyalt
y card
schem
e
Websit
e
OBJECTIVES
Corporate social
responsibility
LOCAL
COMMUNIT
Y

M
5.1. MARKETING
COMMUNICATION PLAN
To generate
awareness and
strengthen
relationship with
customers
RELATIONSHIP
BUILDING &
MAINTAINING
Advertisement
Trade show
Direct marketing
marketing
Sales promotions
Customer
engagement
network
Direct marketing
Loyalty program
August 2017 1st December 2017 1tst January 2018
Pre-opening activities Officially launch Normal restaurant activities
MAIN GOAL TOOLS
MARKETING COMNICATION MIX
MARKETING
COMNICATIONMI
X
OPERATION
STAGE
MAIN GOAL Tools

M
5.1. MARKETING
COMMUNICATION PLAN
5.1.5. COMMUNICATION MIX- EXTERNAL COMMUNICATION PLAN
PRE-OPENING STAGE
Magazines Online as well as Print magazine for
promotion of brand.
To convey the message that is 'every
little help’ in order to gain customer
loyalty.
Outdoor advertisement Posters as well as brochures will be
distributed.
To reach the target customer group.
Social Platform Facebook, Instagram , and Twitter To deliver information about goods or
services.
Sales promotion Free sample and coupons Utilise for positively influencing people
to try product.

M
5.1. MARKETING
COMMUNICATION PLAN5.1.5. COMMUNICATION MIX – EXTERNAL COMMUNICATION PLAN
OPERATION STAGE
Media Description Justification
Sales
promotion
New customers: Free sample, first time purchase discount
Competitors’ customers: Free sample, coupons
Loyal customer: Bonus point, direct discount, loyalty
reward
Referral: Discounts, direct deduction on next purchases
•It will assist an organisation in generating brand awareness.
Interactive
Marketing
Marketing team in TESCO will use social media platform
for seeking feedback from customers.
•It will assist firm in providing good experience to customers.
• It will also support business entity in gaining the customer
loyalty.
Personalise
d
marketing
Direct email
Direct text message
•Use to send tailor messages to specific customersrs.IT will assist
an organisation in strengthening their relationship with
customers.
Loyalty
program
Tesco loyalty card scheme •Reward customers based on their purchase frequency It will
assist an organisation in strengthening their relationship with
clients.

M
5.1. MARKETING
COMMUNICATION PLAN5.1.6. BUDGET PLANNING
Stage 1: Pre-opening stage
1. Advertising £89.000
Online and print magazines £9.000
Outdoor advertisings:
Billboards, buses posters
£30.000
Celebrity endorsement £50.000
2. Public relations £22.500
Press release £7.500
Social media £15.000
3. Sales promotions £6.000
Free sample £5.000
Coupons and flyers £1.000
4. Personal selling £10.000
Trade fair £10.000
TOTAL £127.500
Stage 2: Operation stage
1. Sales promotion £15.000
2. Interactive
marketing
£60.000
Snap Kitchen App £45.000
Snap Kitchen Website £15.000
3. Direct marketing £10.500
Direct email £500
Direct text message £10.000
4. Loyalty program £15.000
Loyalty card £15.000
TOTAL £100.500
TOTAL BUDGET
TOTAL £228.000

6. RELATIONSHIP MARKETING
STRATEGY

6. Strategic marketing decision making and Relationship marketing strategy
In order to succeed in the market where Tesco is planning for expanding its business, there should be good
relationship marketing strategy, good product and services and setting up of distribution channel. Strategic
marketing decision, appraise a range of corporate and business mission, vision and objective. The decisions
are based on the geographically diverse market. The strategic decisions, identify, compare and contrast
strategic options. The decisions of Tesco involves; Strategic marketing planning, marketing communication
plan, relationship marketing strategy. It is based on the current state where the brand is stand that includes;
their strategies, mission and aim of the business.
There are various essential dimensions of relationship exists i.e. Trust, Loyalty, Expectation and
Commitment. They are not only aim to make their focus on building relation with consumers. For better
outcome they are required to build relation with partners, suppliers, employees.

Loyalty- Loyalty is the emotion to attach with the brand in any condition. It can build by the love and quality
service provide by the brand to the consumers. The strategic decision of the company is to build loyalty with
relational marketing strategy with the consumers, employees and partners. For that purpose some strategic decisions
were taken by the brand.
Trust- It is related to the faithfulness of customers on the brand. The strategic decision of the comp-any in terms of
this dimension is focuses on Partners, suppliers, consumers and employees. In relationship marketing strategy, trust
of the company should be established with effective strategies taken by the external and internal analysis and
strategic communication plan.
Expectation- The expectation is of from both the side. Consumers expect from the company to meet their need and
requirement with great quality products in low price that did not affects on their income on high level. On the other
hand company expect from the population to be loyal with the brand and provide them feedback for their products
and services that they can improve further. The expectation of the company to government is to create and allow the
company to operate in positive environment where they can grow and can be the reason of government growth. On
the contrast, Govt. expect from the company to sustain the environment and protect it and operate under the laws
and legislation of Bangladesh.

Recommendation
• From the above study it can be recommended that, Tesco should focus on its financial performance as it wants to
operate in Bangladesh.
• It also has very weak presence in emerging markets and for attracting a larger number of potential customers it
should focus on making its presence on that markets.
• While purchasing products, customers lay keen emphasize on pricing of products so it should require to
concentrate on making an effective pricing strategy.

Conclusion
• As per the present study, it has been evaluated that relationship marketing is essential for the Tesco to build
long term relationship with the consumers in Sylhet, Bangladesh and to foster their interest in the company.
• It has been evaluated from the analysis that selecting Sylhet, Bangladesh as expanding the brand is appears
with positive and negative outcome.
• There are some strength that will help the company in the global expansion and some weakness that should be
improved.
• The performance of the brand in other operating countries is analysed at top position in retail grocery chain and
they are required to develop some effective strategies to expand in Sylhet, Bangladesh with the same ease.
• The marketing communication plan had enabled the company to take some strategic decision and target the
consumer, position itself in the market of Sylhet effectively.
• Relationship marketing had been analysed as an effective strategic tool that need to be implement by the
organisation in various issues.

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