The Approach Of Sony And Tesco Towards Marketing Techniques

The market in which Tesco operates is supermarkets. Although this is a highly competitive one Tesco holds a disproportionate amount of power. The figures below indicate that Tesco holds over a third of the market share, and even double the amount of Asda 's market share, the second leading supermarket. Market share is ‘the percentage or proportion of the total available market or market segment that is being serviced by a company ' (Wikipedia 2006).

This report will examine, compare and evaluate the marketing strategies of both Aldi and Waitrose supermarket chains.

Tesco has increased their market share by increasing their product and service line. Moreover, the main target market of Tesco is the grocery market that covers the majority business of the company.

j. if Tesco’s was marketing a certain food product Tesco’s would use a marketing technique for example Tesco’s would advertise the product on wallpaper, leaflets ,TV etc also they would put special offers on the product e.g. 2 for the price of one

Technology-Tesco's is into mails although this method of communication has been in existence for ages and is still used. But the internet enables messages to be sent faster than postal mails. So Tesco's might face competition from cyber cafes and such businesses operate within the Information Technology (IT) Industry.

The UK supermarket industry is a very competitive and profitable industry. It is made up of four main players with significant share of the market, and then various smaller companies who focus on smaller niches in the market such as the bottom of the market discounters and the top of the line speciality stores. It is an interesting market and this report evaluates the attractiveness of the industry using Porter’s five forces model with an insight into how market nicher Waitrose sustains a competitive advantage. Next this report looks at how major player Sainsbury’s successfully competes against its rivals using differentiation strategies, and analyses current consumer trends and problems can effect this industry.

In order to acquire the market share in any segment, the company uses penetration pricing strategy aimed at increasing the number of consumers in an area. Apart from increasing the sales of the company, this strategy helps in increasing demand for the produce hence a positive result in productivity. In addition, the company uses promotional pricing strategy aimed at increasing the market share at the expense of the competitors (Ferrell & Hartline, 2011).

Supermarket/hypermarket is large stores which give a range of product and services such as household goods and food to customers. These stores are normally in large open spaces because there are normally 25,000 sq ft big and sell a range of product to the customers. Sainsbury currently has 597 supermarkets in the UK. Sainsbury meets the needs of its customers by having a range of services such as electrical, clothing this will help them as it will help them find things customer wants such as clothing which will benefit them as customer get what their want and will have everything customer want in the superstores therefore it will focus on the need of the customer. It help make customer life easier by offering them range of food product this can benefit them as they are able to one big shop which will last a while in once which will help them make customer life more easier and it offer customer Great quality wide variety this mean that it will have range of product which will attach large amount of customer to the Store’s which will help bring in more profit which can be used to improve the business.

The supermarket has carried out an excellent strategic positioning in its channel of distribution. The distribution channel has provided the company with the leverage of creating a strategic advantage over its rivals.Despite the fact that firms such as Wal-mart tend to have

Tesco use many strategies to adapt to the culture they are working in, which will encourage more customers to shop from their and beat their local competitors. However, Tesco in the UK provide many different products to appeal to different ethnicities and cultures including their own branded food.

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 the external and internal analysis are very useful for marketing a large enterprise, this essay will explore both external and internal analysis that Tesco has been performed. First, it will define and outline the importance of SWOT and PESTLE. Then, it will examine the Strengths and Weaknesses of Tesco. Next, it will use the PESTLE to carry out Opportunities and Threats. Finally, it will evaluate the reason Tesco’s profits and market share have fallen.

Oligopolistic markets tend to have high market concentration ratios. In the UK, there are four primary retailers, noted below, and the 4 firm concentration ratio for the industry is 71.7%. Nevertheless, by comparison, the 4-firm concentration ratio is down from 75.2% two years’ ago, suggesting erosion from competitors such as Aldi and from Waitrose (Ruddick, 2015).

Tesco is one of Britain’s leading food retailers and has 586 stores. From 1992, Tesco has grown greatly and has increased its market share from 10.4% to 15.2%. This increase in customers has also given Tesco a large amount of profit.

Tesco follows a multi-channel approach. It was the first retailer to create grocery home shopping in 1997. Its in-store picking model is accompany by a small number of specialized dotcom-only stores that allow Tesco to respond to high customer demand. Click & Collect service of Tesco is a key part of its multi-channel offering and enables customers to pick up their shopping according to their suitability. The company has over 1,750 Click & Collect collection points for general merchandise and over 260 grocery drive-thrus in the UK(marketline,2016).