TESCO - MARKETING STRATEGIES

TESCO - Marketing Strategies

TESCO - Marketing Strategies

Background

Tesco PLC (Public, LON: TSCO) is an international seller. The company engaged in retail and related activities, in the United Kingdom, the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia, Turkey, Thailand, South Korea, Malaysia, Japan, China, and the United States. The company also provides retail banking and insurance services through its subsidiary of Tesco Personal Finance PLC (formerly Tesco Personal Finance Group Limited) (FPT). The company has two business segments, retail and financial services. Services of retail channels include online shopping company, tesco.com and Tesco Direct, Telecommunications, Tesco Personal Finance (TPF), and business consumer research (Datamonitor 2010, pp. 74).

Today it is the third largest global retailer based on revenue, behind Wal-Mart and French Carrefour, but the second largest based on profit, ahead of Carrefour. In 1919, Tesco Plc established by Jack Cohen, by utilizing the bonus which he achieved for his services in the World War I army. Then in 1924, he purchased a tea consignment from the company TE Stock well. He decided to put the initial three alphabets of TE Stock well, and the initials of his name Cohen collectively to name his brand 'TESCO'. This report will analyze Tesco's marketing strategies, segmentation and the targets they have set. When thinking of an organization, what comes to mind is how the sales made, how profit made and how customer loyalty is kept. Therefore, for all of these questions to be answered you need to have set marketing strategies in place.

Tesco Marketing Strategies

Tesco's pricing strategies

Tesco's main objectives are to grow the core UK business and to be a successful international retailer and in striving to meet these objectives Tesco have implemented different pricing strategies on different ranges they sell to meet these objectives also taking into account different market conditions (Turner & Wilson 2006, pp. 14). Below are the pricing strategies of Tesco: The current recession has provided a new challenge for Tesco to produce goods at the lowest prices and to maintain quality. Tesco has launched 500 new products as part of the “Discount Brands” initiative. Due to increase competition in the market from Adli, Lidi and others Tesco introduced these discount brands at low prices to both compete and to ensure it continue to grow its UK business. Tesco's mission is to generate worth for consumers to gain their loyalty for the life time. Tesco's success is reliant on the customers and the people, the customers who do the shopping and people who are working with them. Customers are likely to return if they like what Tesco is offering them, and shop again with them (Narver & Slater 1990, pp. 20). If the team finds what Tesco reward them, team work more hard to help customers.

Branding and Reputation

The merchandise and service expansion procedures of the business have been considerably redesigned, to ease enhanced administration of manufactured goods life cycles and more competent liberation of wide choices of goods to clientele (LePla & Parker 1999, ...