Marketing Growth Strategies Of Tesco

Market development is when a company is using an existing product but is marketing it in a new market such as other countries. This increases popularity for the service and the company.

This first strategy calls for the creation of more sales without changing the original product, which can achieved through the four P’s of marketing. The next strategy, market development, allows the supplier to find new markets for their current products by using demographic markets to see where the greatest revenue will be based on the target group you are selling to (seniors, teens, etc.). Product development is the next strategy which focuses on new products the modification of current products. This strategy is rather important as without evolving products to meet the ever changing needs of current and potential companies can see a loss in sales and would limit their ability to be competitive in the market. The final strategy is diversification. This strategy calls for companies to attain current or new businesses allowing them to “diversify” their offerings and break into new markets.

Market players generally have a wide variety of potential customers, which considerably weakens buyer power. Although consumers in this industry may be loyal to particular brands or chains, loyalty to retailer brands is arguably less important than competitive pricing. Many supermarkets run rewards programs for frequent shoppers, such as Tesco’s ‘Clubcard’, and these schemes can help companies retain customers and reduce buyer power.

Marketing development is the act of increasing the total market served by a company by finding new customers and markets, or providing new products to existing customers and markets. An example of this for Nike is their sports clothes and trainers are always developing and coming out with new ideas.

In addition, it owns and operates 93 manufacturing facilities in 45 other countries” (2). With such a huge, world-wide customer base, P & G has the challenge of meeting the needs of millions of people. To do so, the company has to constantly update its product line and expand is operations, increase it to answer new consumer demands. The question is then, is P & G capable of doing so?

The market development involves expanding into new markets with existing products. This strategy is used by most organizations while thinking of expanding their business because it is low in risk since it requires little capital investment. There are many possible approaches such as follows:

They are the negatives of an organization. Whilst the P&G Company has much strength, it also has weaknesses. One of these is that half the brands were generating the bulk of growth while rests were lagging behind. A further weakness has been that the retail world increasingly populated by private-label goods, P&G’s premium products were having difficulty competing. In addition revenue growth was slowing down, particularly in developed markets, due to maturity of the company’s established behind.

- Market Penetration- market penetration is composed of existing products and markets, it occurs when an organisation enters an existing market with current products and services.

Tesco PLC is a Public Limited Company, founded by Jack Cohen and headquartered in Cheshunt, in the United Kingdom, that operates as a grocery retailer. It is a well established business and it earns good profits. The company produces goods, supplies goods, and offers services to customers. Tesco PLC primarily offer food, groceries, clothing and general merchandise, and it also supplies retail banking, insurance and financial services. Tesco PLC is engage in distribution, sourcing, data analysis, telecommunications, property operations and online entertainment. The business runs in the United Kingdom, China, India, Malaysia, South Korea, Thailand, the Czech Republic, Hungary, the Republic of Ireland, Poland, Slovakia and Turkey. Customers are served approximately 7,300 stores in 12 markets, also through the Internet.

Tesco PLC, the top three retailer in the world, which was establish by Jack Cohen in 1919 year, which has near 100-Year history. In these days, it has been thrived to 12 country all over the world, including United Kingdom, Malaysia, India, Hungary, Ireland, Kipa, Slovakia, Poland, Czech, Thailand, even South Korea, and China (Tescoplc.com, 2012). Tesco is a public limited company. According to Marcouse (2011:92), “Public limited company (Plc) is a larger type of company that must have at least £50,000 of share capital and has its shares traded on the stock market”, therefore Tesco can have greater capital source and shareholders in their business.

Even though the theoretical model suggested that winning loyalty is a long-term process and might be affected by some internal and external factors, in the case of Tesco, it was very much a positive impact helping to enhance the buying experience of customers, along with capturing high marketing share. Das (2009) stated that there are many factors that define the impact of loyalty schemes. Some customers are price conscious, meaning loyalty points do not matter to them. On the other hand,

Market development is the strategy of rebranding preexisting products, potentially with minor cosmetic changes, and targeting new markets

Marketing is normally a way of communicating with customers by showing the value of products or services with the intention of selling it. Organisations from around the world would target the different markets in order to understand consumer behaviour. With this information, they create a superior customer value and build long term relationships. This benefits them by potentially putting them on top of the market place (The Chartered Institute of Marketing, 2012)

Strategic marketing management is the pathway which assists an organization in implementing its marketing strategies to achieve competitive advantage in the market. An organization needs to get to know the principles of strategic management to determine the role and process involved in strategic marketing. It also generates links between corporate strategy and marketing strategy. There are different value model used in strategic planning having to understand about the tools which are used to develop strategic marketing strategy. The organization’s ability to use strategic marketing activities depends on using appropriate marketing techniques to boost the growth opportunities in a market. In this assignment I am going to discuss

Market development: is another strategy that businesses use, this is the processes of selling existing products to a new market; for example Nike developed their market from America to china, Russia India, brazil etc. These are all multi-billion dollar markets. This