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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 McDaniel 2007).
Organization should follow up on well define models and approaches for implementation on the predetermine plan to achieve advantage, penetration on market is the best fitting strategy which should be directed on Tesco, it should increase domination in the market with the present product (Smith, 2005).
Here marketing Integration Mix contain the seven segments in which each segments offers the marketing strategy for Tesco, such segments are:
- Product: By the product point of view company should target on enhancement of the unique specification in their product, by doing these company would become enabling to set its prices of the product which suits their operating cost and become beneficial for the company (Tesco, 2004).
- Price: According to cost leadership Strategy Company should offer lower price to attract target customers at the target location, by this company can introduce its product and services in new market without having harm from competitors available in that market.
- Place: Company should select always the mid center of the location where the chances of the availability of potential customers, and that place can generate popularity between among the potential buyers, therefore the retailers chain should establish where the chances of integration of the huge market (Nijhof, Forterre and Jeurissen, 2008).
- Promotion: Company should follow the aggressive advertisement strategy in order to increase the sales of their product within the year. And internet should become necessary for the advertisement of the products and services, press and newspaper, and various advertisement modes to make popular our products between the target customers (Christopher, Payne and Ballantyne, 2002).
- People: It contains the Human Recourse of the organization, it denotes the Tesco should hire the well prepared personnel’s which are well experienced in anticipating the customer and to communication the value and utility of the product to the customers. Pertaining training should be provide by the company to their employers to make them competent enough and to make them understand the use of the various new technologies in effective manner to market their product and to get touch with as large as possible numbers of potential customers.
Where in the case of the failure of market plan or implementation strategy than company should continue with the development of their market to generate potential need by the customers despite off penetration in the market. To attain a positive success a company should create new strategy to for progress of the market (Graham 2008). Tesco is Britain’s leading food retailer and is the third largest in the world. Innovation in Tesco a very important factor considered for satisfying its customers and also for its own business growth. The company focuses on both the product and the process innovation. Tesco’s initial success was based on “Pile it High n Sell it Cheap” concept. Its main aim is to constantly improve its service and to provide better value to its customers (Arora and Stoner, 2009). Tesco has well targeted its customers by providing the upper market finest and the lower market value labels. Also it is continuously expanding its activities in international and emerging markets like S.E. Asia and Eastern Europe. Tesco has always attracted the youngsters to its fold and has formed a ‘Young’ image of it. Expansion of its ‘Fresh and Easy’ business is very well noticed (Clowe and Becke, 2013). Its promise to deliver ‘Every day low price plus strategy’s set to ensure that it will surely capitalize the US markets. Its success is based upon three issues: trying new things, prepared for any kind of change and being determined that their business will only achieve more for its customers.
Branding and the related concepts are also an important element of marketing especially in context of a well known UK based retail firm like Tesco. If the products and services are delivered consistently, with the requisite value for money followed by the elements of time and quality, then they aid in the process of building a strong brand image (Brassington and Pettit, 2010). In this respect, the term brand has been defined as a symbol, logo, sign or design that help in the recognition of product and services and also help it to differentiate them from other rival firms’ providing products in the same category (Gitman and McDaniel, 2008). Hence, branding is among those numerous concepts in marketing that provides for an increased understanding about the products offered by an organization. It is via branding, that emotional appeal is added which further helps in the process of differentiating Tesco from its competitors.
For example, Tesco as a brand is identified by tag line every little helps that aids in differentiating itself from competitors like Sainsbury, Walmart etc. In this respect, several techniques is available with respect to branding (Nijhof, Forterre and Jeurissen, 2008). While designing any technique related to branding, it is essential to analyze as to what are the reasons that makes any consumer believe in branding other than assessing the factors associated with the same. The techniques are inclusive of assessing the consumer touch points, determination of the most influential ones, designing of an appropriate experience and delivering consistency in the service offerings. For example, Tesco has relied on the branding technique of Club card Loyalty Program which is the reason for achievement of a competitive edge over tighter firms.
Tesco has been able to grab a proper loyal base and has attracted many new consumers in the bygone years. It has also been successful in managing its brand proficiency by planning on proper positioning of brand so as to maintain its desired level of reputation all over the world. It has also build up a strong and trust worthy relations with the consumers via understanding the essentials of brand management (Carrillat and Astous, 2012). The brand management at Tesco has been inclusive of differentiation by creating its own label brand portfolio that covers Tesco Value and Tesco finest. These ranges have leveraged the brand equity of Tesco. It has also focused on reinvigorating the brand by keeping the communications fresh (Arora and Stoner, 2009). It has considered branding as an ongoing investment as the management at Tesco believes that managing the brand properly is a key driver towards success.
It is also essential to state that proper analysis of given market condition is a pre requisite towards helping Tesco become a market leader. It is only by the proper assessment of market in terms of external as well as internal marketing environment that Tesco can achieve competitive advantage over others (Brassington and Pettit, 2010). The environmental analysis will not only help in the process of brand building but also aid towards the future development of organization. In this respect, Tesco has been affected by many market forces as well as governmental interventions. It has been impacted by many changes in tax policies, trade restrictions that has slowed down the process of growth an affected its profitability (Smith, 2005).
Due to the impact of unfavorable economic climate there has been a reduction in spending by consumers which led to opening of less stores as well the closure of few. There have also been many changes with respect to consumer behavior in terms of digital marketing. With the advent of social media sites like Facebook, Twitter, My space etc. the firm had to inculcate the elements of digital technology to ensure marketing efforts in the same direction. Hence the technological implementation has led to an increased interaction with the clients (Schläfke, Silvi and Möller, 2013). Moreover, there has also been a focus on the strategies undertaken by rival firms via a close watch on social marketing sites which has also been used as a major element for market research. It is because of the widespread usage of digital technology, that the firm has been aware about governmental policies as well as the other pertaining tissues (Parsons and MacLaran, 2009). It has further resulted in an increased interaction with governmental agencies that has somewhere led to positive and negative benefits for the firm.
In the present times, the firms like Tesco other than focusing on the marketing of its product and service offering has also given focus on the environmental concerns. In context of the given scenario, green marketing has been recognized as an essential factor which has focused on keeping the environment safe and secure (Cross culture marketing, 2013). It is because of the elements of green marketing there has been an integration of activities like modification in product packaging, reducing the carbon foot print, decrease of energy consumption among others (Chaffey and Ellis-Chadwich, 2012). Green marketing can thus be regarded as a new marketing philosophy which refocuses on the existing marketing practices to provide for a substantial benefit for promotion of products. This is essential in the times when consumers have become more oriented towards the principles of sound business practices in terms of environmental safety, sustainability and security (Brassington and Pettit, 2010). In this respect, UK based retailer Tesco announced recently that it would provide for an eco rating on every product that has been offered within its stores. Along with this, the green labels have also intended on providing the consumers with respect to transparency in the carbon footprint of product (Clowe and Becke, 2013). This measure has helped in the inculcation of sustainability in every purchase decision taken by consumers from the retail stores of Tesco.
Other than this approach the organizations have also focused on adhering with the principles of ethics rather than offering products and services. In this regard, ethical marketing is defined as deliberate implementation of standards related to fairness, right or wrong and other behavioral practices prevalent in the organizations (Jansses and et. al., 2010). For Tesco, ethics have helped in proper shaping of the decisions that have been undertaken by the management team of the firm. It is via this approach, that Tesco has attained a competitive advantage over rival firms and has also made it capable enough for satisfying the needs of buyers. It has also helped in the development of positive attitude by consumers towards the company.
It has ultimately leaded to an increased production as well as high market share by the firm. It has also been observed that the organizations have also achieved success via a cyber marketing process. It is defined as a method that has attracted the potential consumers by promotion of products via the usage of online techniques in the form of websites, online advertisements, emails etc (Herstein and Gamliel, 2006). It can also be regarded as a blend of internet and direct marketing principles that has been applied by the firm to cover up a large consumer base. A large number of activities are included in this approach which is direct marketing, online marketing, canvassing and mobile phone and call center marketing (Fransmart, 2013).
Hence from the above essay, it can be concluded that marketing is a very vast concept and is inclusive of those distinguishable factors that are needed to be given a due consideration while designing the marketing strategy. In this respect, it is very essential that the strategies are framed carefully after analysis of the external environment which is required to be given a due focus (Christopher, Payne and Ballantyne, 2002). With respect to Tesco, it has been observed that firm has been performing in a well organized manner. It has also inculcated the concepts related to branding, green marketing, ethics, marketing mix etc. with absolute certainty. It is also essential for Tesco to give due consideration to different markets so as to ensure growth and acquiring maximum potential (Clowe and Becke, 2013).
Books and journals
- Arora, R., and Stoner, C., 2009. A mixed method approach to understanding brand personality. Journal of Product & Brand Management. 18(4). pp.272 – 283.
- Brassington, F., and Pettit, S., 2010. Principles of Marketing. Harlow: FT Prentice Hall.
- Carrillat, F. A., and Astous, A., 2012. The sponsorship-advertising interface: is less better for sponsors. European Journal of Marketing. 46(3-4). pp.562 – 574.
- Chaffey, D., and Ellis-Chadwich, F., 2012. Digital Marketing: strategy, implementation and practice. 3rd ed. Pearson.
- Christopher, M. Payne, A., and Ballantyne, D., 2002. Relationship Marketing. Oxford: Butterworth-Heinemann.
- Clowe, K., and Becke, D., 2013. Integrated Advertising, Promotion and Marketing Communications. 6th ed. Prentice Hall.
- Gitman, J. L., and McDaniel, C., 2008. The Future of Business: The Essentials. 4th ed. Cengage Learning.
- Graham, H., 2008. Marketing Strategy And Competitive Positioning. Pearson Education India.
- Herstein, R., and Gamliel, E., 2006. The role of private branding in improving service quality. Managing Service Quality, 16(3).
- Jansses, I., and et. al., 2010. Corporate branding: an exploration of the influence of CRE. Journal of Corporate Real Estate, 12(1).
- Lamb, C., Hair, J.F. and McDaniel, C.D., 2007. Marketing. 9th ed. Cengage Learning.
- Nijhof, A., Forterre, D., Jeurissen, R., 2008. Managing legitimacy issues in global supply chains: the case of the athletic footwear industry. Corporate Governance. 8(4). pp.506 – 517.
- Parsons, E., and MacLaran, P., 2009. Contemporary Issues in Marketing and Consumer Behaviour. London: Butterworth Heinemann.
- Schläfke, M., Silvi, R., and Möller, K., 2013. A framework for business analytics in performance management. International Journal of Productivity and Performance Management. 62(1). pp.110 – 122.