SAMPLE FOR MARKETING MANAGEMENT AT TESCO
Marketing Management can be understood by the regiment in business which targets on the various techniques which is used in the process of Marketing, or market any product of any company. In today’s world which is highly diverted to being global or consistently providing their services throughout cross borders, these activities make International Marketing to very essential part of Marketing Management of an organization (Christopher, Payne and Ballantyne, 2002). In Marketing Management of any company the role of marketing manager essentially depends upon the size of business, for instance in a company which contain a massive part of the consumer products, role of marketing manager can be reached to the extent of the overall Marketing Manger of his or her assigned products. In this essay we give focus on Marketing Management of retail giant Tesco. Marketing management covers the various area of marketing like Marketing Research, Market penetration of Tesco which we have discussed in this Essay (Lamb, Hair, and McDaniel 2007).
Generally Tesco is concerned with retail marketing activities containing approx 400000 lakhs employees working in it, it has more the eighteen thousand stores spread in United Kingdom and developing numbers of stores in Japan , China, Thailand etc. Tesco is also known as biggest employment provider in United Kingdom and also popular for paying attractive packages to their employees in competitive environment, its operations is categorized in market segmentation, market research, and targeting a group of customers at the particular selected area to understand the buying behavior of the their customers and also to understand the taste and preferences of the products.
According to Philip Kotler, Marketing is way of developing a real customer value. It is also a process of providing the Information about the product and services to the potential customers. It’s directly connected with the need of the society and accordingly provides them response on their need. In the process of marketing there is group of target customers and target location, means to provide goods and services to customers who relates to their needs, its focus on maintain relationship with customers who increase the chances of getting benefits to the company and its shareholders (Nijhof, Forterre and Jeurissen, 2008). It also includes the study consumer buying behavior in market research of any particular target market and also with the help of market segmentation.
In United Kingdom TESCO is targeting to business associate with grocery, business which major chances of global expansion, it is also linked with financial services in United Kingdom, and also in Telecommunication business , so its strategy is clear and now TESCO can use its major areas to sustain its business. It was also seen that to get entry in Swedish market TESCO use different strategy, TESCO plans to charge premium price on its products by affluent society of Swedish which can afford such sustainable products manufactured in Sweden (Our History, 2013). Before targeting to the Swedish market TESCO needs to carry out a market research before entering in it, this research will help TESCO to understand the buying behavior of the Swedish customers, and also helps to make segment of the market and customers according to their need, taste and preferences in the products, and this research will also focus on attraction of the customers towards the brand image. TESCO can also apply the differentiation strategy which provides focus on main features of the products, and helps in taking decision regarding price of the products and quality of the products and distribution of the products. Premium price of the product will be based on the quality of the product, style of the products, and popularity associate with the product (Tesco, 2004).
Population in Sweden is spread over the massive geographical area, to get enter in so wide geographical area Tesco need to plan the entry strategy to get enter in the retail market of Sweden, Tesco can adopt the joint venture or mergers and acquisition strategy for initial entry in Swedish retail market. To cover the major market of the Sweden Tesco should cover maximum area in it which targets the sales to their customers, Tesco should also focus on distribution process such as Internet selling would be a good option to approach the target customers, it can also divert to joint ventures and owning a self selling stores. In all these process communication plays a vital role in it, it is very essential part of product selling that the product should make known to the public otherwise the launching of product in the market would be a failure (Gitman and McDaniel, 2008).
To attain a sustainable competitive environment benefits Tesco a retail giant should follow any one of the three generic strategy developed by the Michel porter. In which the first strategy is Low leadership strategy, depends on the Tesco on which product they offer very lower price in broader market to attain the attraction of the potential customers, this strategy will only work or we can say that this strategy is based on operating cost control by Tesco, like at which extent Tesco can control the cost of the operating expenses on product and accordingly sets lowest possible price to attract the customers and to earn higher profit from the market (Schläfke, Silvi and Möller, 2013). If Tesco is not able mange operating cost on his products than it should include some unique configurations in their products on behalf of which they can attract the consumer on the higher price.
Next strategy is based on narrow focus market where they can sell their products with the help of product differentiation strategy or cost leadership strategy. With the view of taking the cost leadership strategy Tesco should focus on its development of internal efficiencies which helps Tesco to make sustention in the competitive market, Tesco should also take frequent interaction with the government regulation and policies. Tesco can also develop their market by entering in a partnership with any firm in a target location, and also have similar chances to get diversified through new product development. In the case of Tesco strategic alliance will become a good option for getting entry in the Asian market, like china and Japan can become a key growth sector for Tesco for expansion of its revenue as Asian market is showing growth in retail market and attraction towards consumer spending (Lamb, Hair, and McDan