TESCO

TESCO Marketing



TESCO Marketing

Task 1

Marketing Concepts and Elements of Marketing Process

Tesco came into existence in 1919. It was Jack Cohen's idea that gave rise to such a huge and gigantic organization. Tesco is involved in grocery and general merchandising retailing. Tesco is considered on number three largest retailer in the world if we gauge its position in terms of revenue. First store of Tesco started its operation in 1929. Tesco is one of the companies that are listed in London Stock Exchange. Tesco has diversified both geographically and into areas such as retailing of books, clothing, electronics, furniture, finance, telecom and music download. Tesco is the only U.K. food retailer with an international growth platform. In contrast to more-challenging domestic markets, international markets are a bigger revenue pool, and offer more promising growth prospects as they are growing faster and are more fragmented with fewer scale competitors. In international markets local scale is a key driver of operating margin.

Following are the Marketing concepts and the marketing process elements of Tesco:

Competitive Strategies

One of the advantages that Tesco enjoys is of customer loyalty and maintaining the footfall of average number of customers. But, for this they have spent a lot. They have issued club cards to their regular and frequent customers that enable a customer to enjoy special discount. This is extremely beneficial in the festive seasons. This is the core thing that gives competitive advantage to Tesco (Fills, 2009, pp. 121-123). Tesco has strong brand value. It is the value of the brand of Tesco that enables it to gain competitive advantage over others. Tesco has maintained its brand value by providing customers to indulge in some extra ordinary shopping experience. Moreover, Tesco has maintained its name in retaining customer satisfaction by providing affordable products.

Diversification

Tesco launched its own bank, and it has just opened a customer service centre in the North-East (the heartland of Northern Rock). However, the Board of Tesco Banking has ruled out making an acquisition of Northern Rock, which the UK government has just been given permission to break up and sell by the EU (Kim, 2009, pp. 78-85).

Organizational Structure

Tesco has now expanded from a staff that is dedicated to updating their programs to fight fraud, or software, and new safety programs leads to a reduction of internal theft, costing consumers and will not have to cover the cost of your purchases. Tesco stretches to invest in customer service training is also linked it to pay so that employees are encouraged to learn and rise to further define them for customers and service quality (Palmer, 2004, pp. 1075-1105).

Performance (financial, market share penetration, etc.)

Tesco's rental costs are 1% of sales compared to 3-4% for leading specialty non-food retailers, giving Tesco a perceived economic advantage. Finally, customer satisfaction with range, convenience and pricing has improved across categories. We expect the continued rollout of the Extra format, combined with the successful execution of the non-food strategy, to translate to 10% sales CAGR in non-food sales from 2006 to ...