Introduction:
The company I am considering is Tesco supermarket plc. It’s headquarter is in Chesunt, but has many stores around the country. These stores are in all the major cities of UK and outside Uk as well. It has many types of stores including Tesco Extra (24 hour), Tesco Metro (located in town centres) and Tesco Express (attached to garages). Tesco has been known as an oldest business organization in the United Kingdom, the organization mainly provides in retailing “Supermarket”, insurance, petroleum market. Tesco has about a chain of 1500 stores in the UK.
Objectives:
Tesco’s mission statement is to Retain Loyal stakeholders. To ensure Tesco achieves their mission statement, they need to know who their loyal customers are and then provide those customers values. All of Tesco’s objectives intermingle with each other. None of the objectives will work without each other.
S-specific – they should have a focus and not be vague.
The focus is to produce efficient customer service. The customer service should be improved in the next year.
M-measurable -they should include something that can be measured.
This can be measured by carrying out questionnaire from the current potential customers.
A-achievable – they should be challenging but possible.
By having good quality of goods sold then I think that they will be closer to their aim.
R-realistic – if staff thinks that they are irrelevant or if they cannot be achieved then they are ignored. This aim is realistic because achieving customer satisfaction for Tesco wouldn’t be that hard. Mainly because currently they have high level of sales therefore they can have more time to focus on customers, which in long term help them to increase more sales.
T-time specific – the objective must have an end date so that success can be measured.
Main Competitors:
Tesco is considered as one of the for big stakeholders in retail industry in the United Kingdom. Its immediate competitors are Sainsbury, ASDA and Morrisons.
Marketing Strategy:
Tesco is the largest retailer in the UK, holding an estimated 15,5 % share of the total market. The two most important factors in Tesco’s success are that they are listening to the customers and give values to the customers and the most importantly they learn from mistakes. Tesco offers their customers quality products at low prices and put their customer first in the way they run their business is also core to their strategy.
The grocery retailing market is basically divided into geographic segments. Tesco as a supermarket mainly focuses on the different consuming habits of the customers in each region and neighbourhood so that it could reach to its target market efficiently. A typical location for a Tesco store is a suburban area.
Tesco has created the brand but also need to redevelop through reliable strategies to achieve a better competitive advantage over its competitors by differentiation and better positioning. Tesco is the lowest cost producer in the retail industry as it is the cheapest supermarket in the country. Tesco uses cheap prices products for its customers as a unique selling point.
Tesco says Every Little Helps it can be described as so when customers come into the store they can get exactly what there looking for. Also Tesco offer many deals to their customers like “BOGOF” buy one get one free or buy one get second product half price. They do this because it’s a strategy for a long term profit.
Situational Analysis:
Strengths
- Well established– Tesco is already a well established name in the UK with a largest market share and it has a chain of 1500 stores in the UK.
- Club card -Will give a real insight into customers shopping habits.
- Tesco’s online– Tesco’s online is the world’s biggest online supermarket.
- Strong brand name– Tesco also has a strong brand image and people relate the business with high quality and reliable goods which represents excellent value for money.
- Offers low prices and quality products which are to be the focus of the Tesco.
Weaknesses
The weaknesses for Tesco’s are as follows:
- Reliance upon the UK market– Even though Tesco’s well established name internationally it still highly dependant on the UK market.
- Completion will be fierce as they are new to the U.S market and it will be hard to establish a good company name.
Opportunities
The opportunities for Tesco’s are:
- Opportunity to sell– Tesco has the opportunity to sell and capture the market place because of its wide spread supermarkets.
- Health and beauty– Tesco’s health and beauty range is at present the greatest growing skincare retailer in the market.
- Develop their web services for convenience of consumers.
- Expansion into other markets such as clothes or personal finance.
Threats
- Wal-Mart/Asda Challenge- since the US shopping giant Wal- Mart purchased Asda it has been a threat for Tesco as Asda are closing in the gap between these two supermarkets.
- International growth- Expanding the business internationally can be a very expensive process. Entering new markets is important that it has heavy investment and extra operating expenses. This might mean that Tesco’s debt will increase even more before it can even decrease its debts.
Marketing Mix:
Product
Tesco can change an attribute by providing more value to the customers by increasing products quality and the products must be of good quality and appealing to consumers. However product is not only what they sell in the shelves, Tesco is also increasing their product range.
Price
If the price of the product is too high the company can lose market share, if it’s too low then they will be losing out on a lot of potential money if demand is still not met. If prices are low it may psychologically enable a customer to think that it is low quality. Pricing strategies also play an important part in every organization.
Place
Place is when a company sells its products to their customers for example; wholesales and retailers. Tesco’s first supermarket had began in High Street after a while they have moves out from the High Street but however they have moved back in again. Now there are different types of Tesco for example Tesco Extra, Metro Tesco, Tesco Express and it is so likely that you would come across one everywhere you go. By using the right research Tesco’s target is to get the right goods to the right customers.
Promotion
Promotion is the intangible feature which includes things like service and customer care.
- Customers about will have a knowledge about the new product
- Encourage customers to switch to a different brand
- Remind buyers where to find a product
The role of advertising is to create demand for a product and to create an awareness of its products and services to increase market share over its competitors.
Bibliography
Internet
- http://people.exeter.ac.uk/wl203/BEAM011/Materials/Lecture%204/TESCO%20Company%20Profile.pdf
- http://www.coriolisresearch.com/pdfs/coriolis_tesco_study_in_excellence.pdf
- http://www.perishablepundit.com/DailyPundit/TOPICROUND-UPS/TescoComesToUSA.htm
- www.tesco.com
Books
- Principles and Practices of Marketing 5th edition- David Jobber
- Essentials of Marketing Reasearch by Joseph E Hair, Jr, Mary F Wolfinbarger
Databases
- Datamonitor 2005…company profile-Tesco