Marketing Principles Tesco

Marketing is used all the time with every business, from local corner shops to International supermarkets. Marketing is the process of promoting and selling a business’s products or services, it consists of four main elements: product, price, place and promotion. The marketing objectives of a business are the goals set by an organisation while promoting its product or services to potential customers.

Throughout their execution and development of numerous strategies they make certain that customers as well as their employees are the beneficiaries. Tesco is resolute in their pursuit for creating value for their customers. They have employed a strategic option of a club card to increase its online presence and sales that allows them to achieve their long term vision of being a modern and innovative company. Tesco has incorporated a VMOST that clearly identifies the company’s direction of being close to their customers.

Tesco company has become increasingly aggressive in the last few years as the company increased its market share steadily but it remained a constant distance behind Sainsbury's. This shows that Tesco is looking to build on its leadership by constantly working to ensure that it is maintained. However, one of Tesco's key weapons in the battle for retail supremacy has been its Clubcard loyalty scheme and the subsequent launch of the Clubcard Plus debit card. These have shown Tesco taking a clear initiative and then building rapidly on its advantage. One footnote to this is that loyalty cards should be seen as a longer term marketing tool since they enable retailers to learn more

Tesco is one of the biggest British retailer and the world’s third largest retailer across Europe, USA and Asia. The main vision of Tesco is to be the most highly valued from the customer with accordance to the service it served, even by the communities where they serve their service. Similarly the loyal and committed staffs are the main key elements of the Tesco from which the customers can get full service. Thinking locally and acting globally usually resemble the business strategy of the Tesco. Tesco has made certain values which made them to be the market leader in retail industry. The fundamental principles of Tesco are to understand the customers, be first to meet their needs, acting responsibly for the communities, work as a team, trust and respect each other, share knowledge and experience (TESCO plc, 2011). The main aim of Tesco is to benefit their performance and competitiveness with the utilisation of the skills and scale of the group.

Since acquiring number one ranking in 1996, Tesco has developed a successful multiformat strategy that has accelerated its advantage. Its UK sales are now 71% larger than Sainsbury’s. Also the Competition Commission’s report makes it very difficult for a competitor to challenge its scale and has effectively scuppered Wal-Mart’s chances of stealing UK leadership. Therefore, Tesco is in an enormously strong position in its domestic market.

Tesco is supportive of Malaysian government’s policy of sale of alcohol to under age of 18 is prohibited. Not only that, Tesco supports meaningful programs and even have high spirit of each occasion celebrated in Malaysia. Tesco is highly active in charity too. They commonly have a donation box nearby counter, capable of doing charity by business too.

Fourthly, in order to extract its critical success factors, we have to go deep into its SWOT Analysis that first include Tesco’s Strengths that is primary characterized by the increase in the market share and the availability of an online website: Tesco.com is serving more than 96% of the population in UK. In addition to its strong brand value and brand image coupled with the best quality products and trustworthy goods, Tesco has limited liability in such a way it can never be forced to sell their personal properties in case of any default. Second, its Weaknesses for example Tesco does not provide online discount for its customers while other companies do at least 20%. Another problem is the lack of knowledge in some areas for example tablets

According to Tesco’s strategic report the total sales for the year was 69.7bn and profit was 1.4 bn and Tesco Plc.’s net debt was (8.5 bn), this information will be helpful to some of Tesco’s primary stakeholders like the owners and the investors, as owners they would want to now the position of the company and also will help them determine any future course of action and Investors want to make sure they can earn a reasonable return on their investment before they commit any financial resources to the company. Tesco plc.’s strategic report also showed the number of employees and the number of shops around the world, which was 517802 and 7812 respectively. Tesco used 6 simple performance indicators instead of the steering wheel method, which they thought was too complex. One of the key performance indicators for Tesco is that Colleagues recommended Tesco as not only the best place to work but also the best place to shop, this is of relevance to employees and customers as 70% recommended as the best place to work and 77% recommended Tesco as the best place to shop. Another key indicator was that Tesco had strong

The core strategic advantage for Tesco is the brand value and reputation. The retailer has been able to establish a strong brand name that is famous throughout the world. The company invested in carefully branded packaging that has built it a strong brand image. The company also has a good brand image due to the high quality and trustworthy products and customer services that represent excellent value. According to Jenkins and Williamson (2016), the company has focused more efforts on re-engineering their services and products that have ensured a more efficient delivery of broad range of goods to customers and better management of product lifecycles. The company has been innovative enough to enhance the quality of products and improved the shopping experience

Marketing is a two-dimensional process and it is defined as aset of processes with a view tocreate, communicate, deliver, and exchange offerings that have value for customers, partners, clients, and society at large(American Marketing Association, 2013).

Because of this reason, with the competition of discount chains which include Aldi?s, Lidl?s, and other retailers, Tesco may need to considered the repositioning of their business strategy to deal with the problems of the decrease of their sales and their market share. Therefore, this research would try to identify the reason of the decrease of Tesco?s sales and market share and provide some suggestions to help Tesco to reposition themselves to fight the discount chains.

Tesco can be said to be a global leader in the UK retail business. It is one of the leading world retailers. The company started using the trading name TESCO in the 1920s and since the group has expanded in many ways venturing in different markets and with interest in different sectors. Over the years, Tesco has recorded growth which has been achieved through different strategies. There has been emphasis on the growth of Core UK business in order to expand internationally. This growth has allowed the company to position itself in food and non-food sectors based on retailing services. Over the years, the company has witnessed financial fortunes which have been reflected in its growing sales. Sales have risen from 31,726,280 from 2013 to 32,074,650 in 2014 (Kantar, 2014.) This has been achieved through growth strategies which have seen the company expand its retail outlets and at the same time enter into new markets with high growth potential using their famous ‘every little helps’ branding along the way. The ‘Every little helps’ branding helped Tesco’s attract 1.3 million new customers in the period from 1990-1995, and the campaign achieved good effects on staff morale, attracting quality marketers to join Tesco, directly affected the share price and allowed the brand to move into non-grocery sectors where brand credibility is a key requirement. Disadvantages….limitations etc

As I have mentioned before, this research paper is being taken exclusively with the aim to evaluate the Tesco’s performance in both financial and business terms over a three years period. Since the financials will be compared with its three year

In this report, the writer will explain the background of Tesco, purpose, benefit, the shortcomings and the impact on its business by using e-business strategy, as well as the developments in the strategies and business models of online supermarket retailing.

The process of marketing involves the action of advertising and promoting a company, product or service. This includes everything the customer encounters in relation to the company, from advertisements to customer service experiences. Marketing is often broken down into four sections, known as ‘the four P’s of marketing’.