Premium Essay

Tesco

In: Business and Management

Submitted By salomeg
Words 3986
Pages 16
Analysis of Tesco’s Marketing Strategies

Name:

University:

Course:

Instructor:

Date:

Table of Contents
1.0 SUMMARY 3
2.0 INTRODUCTION 4
2.1 BACKGROUND 4
3.0 CURRENT SITUATION 5
3.1 PESTEL ANALYSIS 5
3.1.1 Political 6
3.1.2 Economic 6
3.1.3 Social 6
3.1.4 Technological 7
3.1.5 Environmental 7
3.1.6 Legal 8
3.2 SWOT ANALYSIS 9
3.3 DIFFERENTIAL ANALYSIS/COMPARATIVE ADVANTAGE – USP 9
4.0 RECOMMENDATIONS 9
4.1 SEGMENTATION TARGETING AND POSITIONING (STP) 9
4.1.1 Segmentation 9
4.1.2 Targeting 10
4.1.3 Positioning 10
6.2 MARKETING OBJECTIVES AND GOALS (SMART) 11
4.3 MARKETING MIX (4P’S) 12
4.3.1 Product 12
4.3.2 Price 13
4.1.3 Promotion 13
4.1.4 Place 14
6.0 References 16
7.0 Appendices 19
7.1 Appendix 1: Tesco Market Share versus Competition 19

1.0 SUMMARY

Tesco is one of the most successful food and grocery retailers in the world. According to (Tesco 2012b), Tesco’s success is seen in its growth over the years. The company’s growth is projected from its core operations in UK into the other continents. Tesco had established its subsidiaries in 14 countries by the year 2010, (Tesco, 2012b). Currently, Tesco is the market leader in Europe, with approximately 30% market share. Tesco attributes this success to its marketing strategies. The Company has market its brands in a way that is customer personalized. Customer personalization has been arrived at by doing researching on market needs and expectations. An example of Tesco’s strategy was lowering its prices and inception of Club card loyalty program. This strategy was very effective in positioning the Company in the global market. Apart from market positioning, that strategy enhanced its brand value.

But as this paper highlights, there is no perfect organization in the world and Tesco’s marketing strategies must continuously be improving in line with

Similar Documents

Premium Essay

Tesco

...all VAT-registered businesses in the UK are retailers. 70% of UK retail is Organized and 30% is Unorganized. The retail sector generates almost 8% of the Gross Domestic Product of the UK. The retail industry employed 2.9 million people, as at the end of September 20. Supermarkets dominate the UK food retail market, with 56.0% of sales. 3 Company overview Tesco¶s is a United Kingdom based international supermarket chain. It is the largest British retailer both by global sales and by domestic market share. Established in 1924. Tesco is the third-largest retailer in the world next to Wal-Mart, Carrefour and is operating around 2,440 stores and employing over 4,00,000 people www.Tesco.com is recognized as the world¶s largest online grocer, with a customer base of little less than 1 million and more than 250,000 orders a week. Tesco¶s market share of UK retailing is 12.5%. 4 Company overview Tesco has moved into areas such as clothes, consumer electronics, consumer financial services, internet services, consumer telecoms and gas stations. Tesco now controls over 30% of the grocery market in U.K. As of March 2008, Tesco have a store in every postcode of the UK. 1960 1970 1980 1960 2000 5 Competitors Competitors ASDA Group Limited BP Plc Carrefour S.A. ExxonMobil Corporation The Big Food Group Plc J Sainsbury plc Marks and Spencer Group plc Royal Dutch/Shell Group Safeway Inc. 6 Safeway plc Somerfield SPAR HandelsAktiengesellschaft The Boots Group PLC Wm...

Words: 1187 - Pages: 5

Premium Essay

Tesco

...Z01_JOHN2020_09_SE_EM18.QXD 10/13/10 9:09 Page 658 CASE STUDY Tesco: from domestic operator to multinational giant Michelle Lowe and Neil Wrigley This case considers the emergence of Tesco plc as one of the world’s leading multinational retailers. In a remarkable 10-year period, Tesco has transformed itself from a purely domestic operator to a multinational giant – with subsidiaries in Europe, Asia and North America – and in 2009 had 64 per cent of its operating space outside the UK. Examining market entry into Asia in more detail, the case compares ‘success’ in Thailand and South Korea with ‘failure’ in Taiwan. It also considers ‘a high risk gamble’ in Tesco’s entry into the US market, long considered to be a graveyard of overambitious expansion by UK retailers. ● ● ● Introduction In April 2009, Tesco, the UK’s largest retailer and private sector employer of labour, announced annual sales for 2008/09 of almost £60 billion (x66bn or $90.2bn) together with profits of £3 billion (x3.3bn or $4.5bn). After a dramatic decade-long transformation from purely domestic operator to multinational giant, Tesco now had a remarkable 64 per Source: Getty Images. cent of its operating space outside the UK, was developing increasingly strong businesses across 11 Asian and European markets, had a rapidly expanding ‘start-up’ subsidiary operating in the western USA, and had announced its entry into the Indian market. Moreover, as signalled in both the title of its Annual Report...

Words: 5448 - Pages: 22

Premium Essay

Tesco

...Tesco was founded in 1919 by Jack Cohen in the form of a market stall in London’s East End. Over the years the company has grown massively into one of the world’s largest retailers employing over 500,000 people across 12 countries, serving millions of people each week in-store and online. Key to Tesco’s innovation success is its meticulous focus on managing margins. The company’s obsession with efficiency has been used to keep prices low and, in 2007, Tesco managed 1.8% deflation across its product lines. The company has also focused on making the shopping experience as easy as possible for customers – be it in hypermarkets, small stores or online. Tesco Express has led the move of food retailing back into the community; in addition it was also the first convenience store with a petrol station. Tesco.com now generates sales of more than £700 million and profits of more than £35 million for the business. In the UK, the service reaches 96% of the population and handles more than 170,000 orders a week. Like some of its peers, Tesco aims to improve their service and focus on providing better value to their customers rather than concentrate on pricing alone. These same principles are carried across the business into non-food, services and its international operations. To enable this, the company pays considerable focus on harnessing the creativity of its workforce and encourages staff to come forward with ideas. The company’s prowess in process management applies just as much to its...

Words: 275 - Pages: 2

Premium Essay

Tesco

...Background Tesco Tesco PLC is a British multinational grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by after Walmart and Carrefour and the second-largest measured by profits. It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK, Malaysia, the Republic of Ireland and Thailand. The company was founded in 1919 by Jack Cohen when he began to sell surplus groceries from a stall at Well Street Market, Hackney, in the East End of London. The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from Thomas Edward Stockwell. He made new labels using the first three letters of the supplier's name (TES), and the first two letters of his surname (CO), forming the word TESCO. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. Originally a UK-focused grocery retailer, since the early 1990s Tesco has increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software; financial services; telecoms and internet services; DVD rental; and music downloads. The 1990s saw Tesco business motto was "pile it high and sell it cheap", to which he added an internal motto of "YCDBSOYA" (You Can't Do Business...

Words: 1118 - Pages: 5

Premium Essay

Tesco

...TESCO Tesco plc is a major food retailer especially in the u.k. It has got many shops in all part of the world. Tesco started its life in 1919 .Jack Cohen is called as the founder of tesco.In 1919 he started Tesco from the surplus groceries from a stall in the East End of London. He made a profit of £1 from sale of £4 on his first day. Now it operates all around 2300 stores. Tesco the name come from a shipment of tea from a MR T. E Stockwell and jack Cohen name. The initials and letters combined to form TES-CO. Tesco brand is first appeared five years later in 1924.In the year 1930 he build a headquarters and warehouse in north London, In 1932 Tesco become a private limited company. Tesco started expanding after, in 1950 the retailer bought 70 Williams stores and 200 harrow stores, followed by 97 Charles Philips store and the Victor value chain in the early 1960s.In 1961 Tesco Leicester enter the Guinness book of records as the largest store in Europe,1968 Tesco opened its first superstore in crawley,west sussex.In 1970 Tesco build a national store network to cover the whole of the u.k, which it continues to expand to this day, while also diversifying to other products.In1974 Tesco opened its first petrol stations, and is become uk’s largest independent petrol retailer. In 1987 Tesco successfully completed a hostile takeover of supermarket rival Hilliard for £220m. Tesco started an...

Words: 736 - Pages: 3

Premium Essay

Tesco

...environmentally and socially responsible in conducting their business. In the business community, CSR is alternatively referred to as “corporate citizenship,” which essentially means that a company should be a “good neighbor” within its host community. About Tesco Plc Tesco public limited company is a British multinational grocery and general merchandise retailer. It’s headquarter is situated in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits. It has stores in 14 countries across Asia, Europe and North America, Malaysia, the Republic of Ireland, Thailand and is the grocery market leader in the UK capturing around 30% of the market share. The company was founded in 1919 by Sir Jack Cohen as a group of market stalls. The Tesco name first appeared in 1924, after Mr. Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname, and the first Tesco store opened in 1929 in Burnt Oak, Middlesex. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. Originally Tesco focused on UK grocery retailers, but since the early 1990s Tesco has...

Words: 2515 - Pages: 11

Premium Essay

Tesco

...Market share * Major supermarkets have been losing ground to discount retailers Aldi and Lidl since the recession struck. * Tesco has been struggling to turn around the performance of its UK stores despite a £1bn overhaul. * Tesco’s sales in the 12-week period were 4 per cent lower than a year earlier. Aldi’s sales grew by 29.5 per cent and Lidl’s by 18.3 per cent. They now occupy 4.8 per cent and 3.6 per cent of the market respectively. * Lewis, who joins Tesco from consumer goods giant Unilever on October 1, faces the challenge of wooing customers back to stores. http://www.thisismoney.co.uk/money/markets/article-2735944/Tesco-suffers-drop-market-share-sales-fall-4-cent.html#ixzz3T8RRhQtC  http://www.bbc.co.uk/news/business-28978540 Why Teso lost customers? * The retailer had lost focus on the core retailing principles - best prices, highest quality and stores that people like shopping in. * Mr Clarke famously pulled Tesco out of "the space race", halting the expansion of hyper-stores and instead focusing on a different strategy of making Tesco "all things to all people" with a strong digital bent. * The launch of Tesco's own tablet, the Hudl, proved very successful - giving Tesco an automatic way of influencing how people shopped online. * Mr Clarke allowed Tesco to lose its reputation as the cheapest of the "Big Four" retailers, a crown it lost to Asda. High price: expensive than Asda by 6% * When it came to tackling the exodus...

Words: 524 - Pages: 3

Premium Essay

Tesco

...Z01_JOHN2020_09_SE_EM18.QXD 10/13/10 9:09 Page 658 CASE STUDY Tesco: from domestic operator to multinational giant Michelle Lowe and Neil Wrigley This case considers the emergence of Tesco plc as one of the world’s leading multinational retailers. In a remarkable 10-year period, Tesco has transformed itself from a purely domestic operator to a multinational giant – with subsidiaries in Europe, Asia and North America – and in 2009 had 64 per cent of its operating space outside the UK. Examining market entry into Asia in more detail, the case compares ‘success’ in Thailand and South Korea with ‘failure’ in Taiwan. It also considers ‘a high risk gamble’ in Tesco’s entry into the US market, long considered to be a graveyard of overambitious expansion by UK retailers. ● ● ● Introduction In April 2009, Tesco, the UK’s largest retailer and private sector employer of labour, announced annual sales for 2008/09 of almost £60 billion (x66bn or $90.2bn) together with profits of £3 billion (x3.3bn or $4.5bn). After a dramatic decade-long transformation from purely domestic operator to multinational giant, Tesco now had a remarkable 64 per Source: Getty Images. cent of its operating space outside the UK, was developing increasingly strong businesses across 11 Asian and European markets, had a rapidly expanding ‘start-up’ subsidiary operating in the western USA, and had announced its entry into the Indian market. Moreover, as signalled in both the title of its Annual Report...

Words: 5448 - Pages: 22

Premium Essay

Tesco

...COMPANY PROFILE Tesco PLC REFERENCE CODE: 34972414-9A41-4048-A7B6-1B0017054743 PUBLICATION DATE: 7 Feb 2013 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Tesco PLC TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Tesco PLC © MarketLine Page 2 Tesco PLC Company Overview COMPANY OVERVIEW Tesco PLC (Tesco or ‘the company’) is a food and grocery retailer. The company primarily operates in Europe and Asia. It is headquartered in Hertfordshire, the UK, and employed 519,671 people, on an average, in FY2012. The company recorded revenues of £64,539 million (approximately $103,223.7 million) in the financial year ended February 2012 (FY2012), an increase of 6.8% over FY2011. The operating profit of Tesco was £3,985 million (approximately $6,373.6 million) in FY2012, an increase of 1.7% over FY2011. The net profit was £2,806 million (approximately $4,487.9 million) in FY2012, an increase of 5.7% over FY2011. KEY FACTS Head Office Tesco PLC Tesco House Delamare Road Cheshunt Hertfordshire EN8 9SL GBR 44 1992 632222 Phone Fax Web Address http://www...

Words: 4383 - Pages: 18

Premium Essay

Tesco

...Assessing the performance of tesco TESCO plc is a United Kingdom based group specialised in food retailing, it operates as a grocery and general merchandising chain in the United Kingdom and across the world. So far, it is the largest British retailer in term of sales and market share with, according to Thomson one banker, a total net income of £ 2,161.00 for the year 2009. It is also the third largest global retailer group in term of revenue after the American group Wal-Mart and the French group Carrefour. With a main activity of food global retailer, it has diversified his activity into clothing, home, financial services, car insurance, health, telecoms and internet services and software. However in this report we are focusing on its clothing unit which operates online. So to better know this Tesco clothes retailing, this report will bring an overview of the company and will analyse its current strategic position, the same as its fitness with the other business units. This report will also analyse the Tesco clothes retailing’s macro environment, the competitive environment, the strategic capability and also the future strategic options. Tesco clothes retailing’s brief overview: The Tesco clothes retailing company is among the biggest clothing retailer by volume in the United Kingdom as it was ranked at the third place in 2008 and had to juggle this place with Asda Direct online retailer behind Mark & Spencer and Primark (Hall, J.). Tesco clothes retailing is committed...

Words: 2668 - Pages: 11

Premium Essay

Tesco

...Vision, values and business strategies S T R AT E G Y Introduction Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Today it is one of the largest retailers in the world. Tesco’s core business is retailing in the UK, which provides 60% of all sales and profits. Tesco has the widest range of food of any retailer in the UK. Its two main food brands are its Finest and Everyday Value ranges, each sell over £1 billion per year. The position of Tesco as a leading global brand is clearly illustrated by its expansion of operations into 12 countries including China, Czech Republic, India, Malaysia, Ireland, Hungary and Poland. In 2013 Tesco employed in excess of 530,000 colleagues. This level of success does not happen by chance. Tesco’s leaders have always set high standards and clear goals, never settling for anything less than the best. Tesco’s ‘Every Little Helps’ philosophy puts customers, communities and employees at the heart of everything it does. It prides itself on providing a great shopping experience for every customer it serves, whether in stores, online or in its many other service provisions. Tesco’s core values include a commitment to using its scale for good by being a responsible retailer. In 2010, it opened the world's first zero-carbon supermarket in Ramsey, Cambridgeshire and was awarded Green Retailer of the Year at the Annual Grocer Gold Awards 2012. Tesco aims to be a zero-carbon business by 2050. Tesco’s continuing success...

Words: 2145 - Pages: 9

Free Essay

Tesco

...way ea one ons > Cr than dati ore foun > M the … owth ying e gr > La utur f for ors rect of Di d ent Boar atem Our l St t ncia epor Fina t rs’ r emen mary ecto ir tat Sum ry D al S i mma nanc > Su ew y Fi Revi mmar ss > Su sine tion a Bu form and and r in ndar esto ale Inv c ion > rmat cial How to find out more online info inan er > F ——— Every year, more and more hold ——— hare s —— Chai rman eme Stat 6 6 8 10 12 16 20 24 26 28 28 30 34 36 —— ——— ——— information is available for our shareholders, staff and customers. www.tesco.com/annualreview08 ——— —— 212583_TESCO_REVIEW 30/4/08 07:26 Page 1 Most people know something about Tesco. After all, we are the UK’s largest grocer and we’ve been serving customers for the best part of a century. What you might not know, is that Tesco is also the world’s third largest grocery retailer with operations in 12 international markets, employing over 440,000 people and serving millions of customers every week. We’re not simply about providing great quality food at affordable prices. We provide more choice than ever to more customers, whether it’s through our expanding international operations, innovative retailing services or our growing non-food offer. It doesn’t matter how people choose to shop with us or what they choose to buy, our core purpose remains the same – to create value for...

Words: 6873 - Pages: 28

Premium Essay

Tesco

...to all the people that helped to gave us the chance to go for this programme. Without forgeting a special Thanks to our English Teatcher M.EL FOUADI KAMAL for this opportunity. Last, but not least, we would like to thank our parents and family for supporting our stay in LONDON financially and emotionally. INTRODUCTION ...................................................................................................2 SECTION 1 : TESCO……………. .........................................................................4 1-BUSINESS DESCRIPTION…………. ......................................................5 2-HISTORY .................................................................................................6 3-CORE VALUES ......................................................................................7 4-VISION AND MISSION …........................................................................7 5-STRATEGY .............................................................................................8 6-PROFIT AND LOSS IN TESCO ..............................................................9...

Words: 9552 - Pages: 39

Free Essay

Tesco

...Module Code:SP Table of Contents Executive summary 3 1. RECENT PAST: Strategies deployed and resulting outcomes- recent Strategic development history. 4 Introduction:- 4 Strategic Development History:- 4 Growth Strategy:- 7 Organic Growth:- 7 External growth (Acquisitions):- 7 Product series Strategy:- 8 Tesco Finest Range:- 8 Tesco Average Range: 8 Tesco Value Range: 8 Store Formats strategy:- 8 2. CURRENT: Current Strategic Situation:- 9 PEST Analysis:- 9 PORTER’s Five Forces:- 11 SWOT ANALYSIS:- 13 3. FUTURE: Strategic Direction for the future:- 16 Strategic 1: Tesco should expand in South East Asian developing country:- 16 Strategic 2: Tesco should alliance with Star Bucks or Caffe Nero:- 17 Strategic 3: Tesco should introduce books section in back to school section:- 17 Strategic 4: Tesco should launch micro Tesco chain in UK:- 17 Conclusion:- 18 References:- 19 Executive summary The main purpose of this work is that to analyse the strategic growth of Tesco plc. After the brief study of Tesco’s history it has been analysed that Tesco works on many different strategies. Regarding to the growth strategy Tesco...

Words: 4620 - Pages: 19

Premium Essay

Tesco

...Tesco Tesco is a British multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, and United Kingdom. It is the second-largest retailer in the world measured by profit and third-largest retailer in the world measured by revenues. It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand. Tesco Aims * To Maximize their profits * To Provide goods/services that is cheap and affordable to the public or consumers * To maximize their sales * To grow and maintain the number one retail company in UK Tesco Objectives * To increase market share * To do better than their competitors and remain the market leader * Offering customers the best value for money and the most competitive prices Growth strategies for Tesco Tesco’s use Ansoff’s Matrix because they are using different ways in order to make sure that the Business is meeting its customer needs. Tesco’s use market penetration to keep their customers loyal, they also use product development to introduce new products to their customers, they use market development to try and get customers to buy existing products and Tesco have expanded their Business by opening a store in South Korea. Market Penetration/Relationship Marketing The way Tesco have tried to get Customers to stay loyal is by offering...

Words: 851 - Pages: 4