Marketing Recommendations for Tesco

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Marketing Recommendations for Tesco


Mark Bommarito

Instructor Dr. Lee Meadows

January 6, 2013

Marketing Recommendations for Tesco

Tesco, the third largest retailer in the world, underwent a change of leadership in March of 2011. Sir Terry Leahy stepped down after a highly successful 14 year run with the company that saw the retailer reach 30% control of the British market (Anonymous, 2012). However, the last year and a half has seen declining market share and stock prices. Additionally, the long-term growth strategy of penetrating the US and Chinese markets has not gone as well as anticipated (Anonymous, 2012). This fact, combined with the declining British market
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With properly spent funds, Tesco should be able to recapture lost market share, consequently shoring up its core business. When considering the four factors of marketing (price, product, placement, and promotion) Mr. Clark needs to continue with the differentiation strategy they have employed with Tesco’s forays into soft drinks and banking. Utilizing Britain’s largest distribution chain, Tesco could capitalize on the strategy utilized by the US retailer Wal-Mart, and differentiate their stores by offering a variety of businesses (fast food, optical, banking, hair and nail care) under one roof. These moves, if effective, would also provide additional foot traffic to their core retail operations, further increasing market share, and revenues. Tesco must carefully consider the market mix and pricing decisions needed with a strategy such as this. If properly implemented, they could secure Tesco’s market dominance for years to come. Tesco is the largest retailer in Britain, and the third largest retailer in the world. However, being big does not guarantee success, and being a key player in Britain does not mean that you can be a key player in the rest of the world. Tesco has effectively demonstrated these facts over the past four years while trying to break into the US and Chinese markets while ignoring their core British business. Philip Clark, the CEO of Tesco, has realized that

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