MARKETING

Competitive Marketing Strategy

Competitive Marketing Strategy

Introduction

The UK-based company, Tesco, was founded in 1919 in the East end of London. In 1929, Tesco opened its first store in North London. In 1947, it floated on the stock market with a share price of 25p. And since 1990, it has started to break into the international market. And It now has 3376 stores in 12 different countries (not including UK). Its annual sales reached up to £1 billion in 1979. And in 2005, Tesco has already made a profit of £2 billion. It now becomes one of the largest retailer companies in the UK, and the third largest throughout the world.

Over the nearly 90 years, Tesco has come through from fighting in the East End of London to standing on a world stage. And today it is still competing in the world market. And this research is going to introduce how Tesco succeeded in adapting to the intense challenges of the international market. This research is going to discuss on how that Tesco successfully adapted to the challenges of the economic climate and briefly analyze several marketing strategies it has adopted in order to expand its business outside the United Kingdom. The idea of Marketing is constantly growing. Progressing technologies like the mobile and internet communications has resulted in the circumstances where the customers need one-one relationship, even if the organizations are not capable to have enough resources to handle this. In addition to improve the profitability and size of the market, Tesco UK, is required to practice by revising the elements of marketing programme, some of these have been stated below (Tenson et al, 2004).This “revised marketing programme elements” focuses at all the features of the Marketing Mix separately. The four P's of the Marketing mix are place, promotion, price and product

Product

Tesco holds a wide variety of products and it should work after consolidating the recent range rather than opting for increasing the variety of range. This should be done because of the fact that it had to reconsider a variety of products since the quality declined in the year 2009. Tesco had to recall its 567 grams cans of sausages and value beans since there were bits and pieces of plastic in many cans. However it was observed that Tesco accepted the fact that their fresh and easy brand “chilli lemon flavored pistachio nuts” was contaminated by salmonella. There was one more shock that the Rio Patio chair set was capable of collapsing under specific conditions and that resulted in Tesco dealing with the concern with the help of product recall advisory. All these types of descending quality is not capable of discouraging the customers from buying the products from Tesco but it can also destroy the brand that involved many years of effort that can result in significant financial loss if the customers head for suing the company. As a result, it is essential that the company should rethink about the strategy of constantly growing its product range and it ...