Strategic Marketing Management: Tesco

Strategic Marketing Management in Action

Tesco Supermarket


In 1919 Tesco acquired founded by Jack Cohen began advertising surplus groceries from a stall in the East End of London. In 1924 when Jack Cohen bought a shipment of tea from a Mr T. E Stockwell. The initials and words were combined to form Tes-co. In 1929 Mr. Cohen opened the flagship Tesco store in Burnt Oak, North London. The first Tesco supermarket was exposed in 1956 in a transformed movie theater in Maldon, Essex. Tesco's first "superstore" was opened up in 1968 in Crawley, Western world Sussex. From your starting day to right up until day the business has increase its business and now the company's more than 923 stores available in all European countries and Asia. Tesco's more than 700 store in UK. And in total more than 240, 000 people employs in Tesco. This company attained of Ј42641 million through the year finished 2007, and increase 8. 1% over 2006. In the entire year 2007, the working earnings was Ј2648 million and increase of 16. 1% over 2006 (tescocorporate. com). Tesco runs 2, 318 stores in 12 countries. Tesco is Europe's second greatest supermarket after the French firm Carrefour, and according to Mintel market research in 2004, Tesco is shutting the gap. It's the fourth major supermarket on earth. Now Tesco is the largest food dealer supermarket of UK. Tesco continue steadily to increase market show through their coverage of cheaper prices, offering less expensive and providing more choice and convenience for his or her customers.

Tesco's main business is food however now it do business electrical, entertainment, home shop, make shop and even white goods and furniture. Lately Tesco have centered on expanding the brand into non-food and now stock electro-mechanical items, home entertainment, toys, sports activities equipment, gardening equipment, , clothing, CDs cook shop, kitchenware and even lighting and furnishing in many of its greater stores. Tesco increase its business in petrol pump and bank sector as well.

Tesco's service and quality is very good. . It is focused on the customer to reducing its Prices and offering the goods services and best value. The company does continues research to improve its quality and service. The business used modern technology and instrument to provide service of the customer. Tesco's online marketing strategy is so good to get this success. Tesco has change time to time it's online marketing strategy with time to time according to changing situation and its own external environment. The all working staffs are so loyal of their company and they are good trained about the task so the customers are more attractive in Tesco day by day. Tesco has been taking new new offer of the customer according to time and situation. For example we may take the Tesco's customer reward card. Therefore the customers of Tesco are increasing daily. Tesco's online marketing strategy is so strong therefore the company gets success day by day

2. Quest and Eyesight of Tesco:

Every company have their own quest and vision. Without any mission and eyesight the business cannot get their goal. Quest and Perspective is the most important thing of company. Quest is the organisational primary and overriding purpose, it reflects the principles of objectives of stakeholders and answer the quiestation "what business are we in?" vision is the near future status desired by the organisation's strategies.

(A) Mission of Tesco

The mission of Tesco is " Creating value for customer, to earn their life span loyalty". We deliver this through our principles, 'No-one tries harder for customers', and 'Treat people how we like to be treated'". The actual aim is of course to make higher revenue, but there's a clear focus on customer service at the very top level of the company. Tesco is to provide superior specialized representation. Tesco to include value to a concentrated group of industry leading firms by offering synergistic, valuable and highly ground breaking solution for their customers' design, procurement and creation need with ongoing improvement of these quality, service and output to a competitive gain.

Tesco has focused in this two value of business:

No one attempts harder for customers.

Understand customers much better than anyone.

Company should keep in head the clients need and demand. The coverage should be customer-oriented. To try to capture all level of customer. Always keep going with constant research regarding customer satisfaction and improvement of service. Make an effort to introduce new type of features in future which may attract the client. Tesco Company has the business marketing plan, product marketing strategies and brand marketing strategies. Tesco has applied three marketing strategies in terms of client satisfaction and getting higher-level of value. Tesco main main concern can be sorting out form its quest declaration. Company main priorities are to hold on to loyal customer. This shows the client don't go to their rivals like ASDA, SAINSBURRY and Summerfield.

(B) Perspective of Tesco:

Vision is a realistic view of another yet to be which creates so this means and goal, catapults both individuals and organizations to high levels of achievement.

The main vision of the company is to gain more customers with excellent service. Providing efficient service to all or any general public in comparison to other company.

Business Key points should be clear, which will depend upon the do of every person in company. Entire company should be familiar with these ideas and apply them regularly and rigorous running a business activities every day.

Strategic marketing and strategies - Planning activities of Tesco:

In the Uk's high avenues the Tesco became a familiar name. Tesco was able to take good thing about commercial economies of range through largeness purchase of goods, the presence of resale price maintenance limited the ability of Tesco to be as competitive as trading conditions now allow. The machine approved suppliers to demand that vendors sold their products for a set price. Tesco used other ways of make customer devotion like the use of stamps that may be exchanged for cash or goods. Tesco have made a clear strategic marketing and proper planning activities. Tesco should try to concentrate in this thing:

To maximise sales

To grow and maintain the main retail company in the U. K

Tesco wants to outshine their competition and remain the market leader

The main aim of Tesco is to increase profit

To provide goods/services that is cheap and affordable to consumers or the general public.

Company should mainly give attention to price factor which assists with attracting the greater customers. Its primary success was based on the "Pile it high, sell it cheap" strategy of the creator Jack Cohen. In addition, it should concentrate on all common consumer with low price with high quality. Company should try goal all class customer and add more features which might draw in the new customer.

Tesco Plc is creating new sales from new product to existing market. Company has analysed the customer needs and satisfaction and constantly improving the development and quality level as well as production range. Tesco basically, sale their goods high quality at a minimal price. Therefore the first tactical decision for a corporation is to choose the basis on with our will contend: price of quality. By this strategic Tasco can make more people with their customer. When made more customer by natural means they can successes to gathered more profit.

Marketing strategy should include all 4ps of marketing that is price, product, place and campaign. These all factors play a substantial role in marketing process. So the company should make sure that it implements these 4ps effectively to achieve its goal. The company can merged with other company as relationship among the strategic marketing. It can help in development of business in various area.

So the reducing the price an adding the prices can be used as important tool to attract the client. Educating and providing training to the sales man which assists with effective deal. Company should in a position to spend on advertising where company will be known by different group of customer.

So the aim of the compny can be achievd through smart execution of the these above startegies. There should be proper communication among mangemnt its employees and everything branches. Tesco try to improve the following thing:

Try to |Making their shopping easy as is possible.

All enough time seeking to decrease the goods prices to help customer spend less.

Offer the convenience of either large or small stores to the customer.

Bringing value and easiness to difficult market segments.

SWOT examination of Tesco Marketing Strategies:

The aim of any SWOT evaluation is to recognize the key inside and external factors that are important to achieving the target. SWOT analysis teams key bits of information into two main categories:

Internal factors: The strengths and weaknesses inner to the organization.

External factors: The opportunities and threats presented by the external environment.


Tesco main strength is it's brand. All customer know it's reputation and good will so they easily believe that the Tesco product and goods. It's all personnel are trained so their behaviour to customer is also good and familiar. Tesco business is Customer basic this is durability of Tesco. The company bring time to time many sorts of offer of the old and new customer. Inside the Tesco store we can get many kinds of varity so that it is straightforward to customer to buy the goods this is also power of Tesco. Tesco have secured commercial ranking with in the global market place receiving" world retail Honor". Tesco group have released sales gain of 13% for UK market, and 26% growth in international market. Tesco has reserved fund form property stock portfolio development fund. To sell daily consuming goods in a reasonable price and earn the client loyalty is a primary power of Tesco.


the weakness of Tesco is too much variety of these business. Profit level is reduced by debt, arrear in bank cards and insurance (house carry) state. Grocer outlets aren't set up to use as specialist store. The business doing delayed to increase of their business in other new place this is another weakness of Tesco marketing. Tesco did not success to decrease of their operation cost so the price of good is little bit high in the marketplace. In the united kingdom comparative on the Asda and Iceland supermarket the price of some goods of Tesco is high. So Tesco should do decrease the some dally eating food price. Large Capital and expenditures is the another weakness facet of Tesco.


Tesco mobile have grown ј million customer in 2008 and it can proceed to profitable status suggesting further development within the technical area can be developed Tesco online and catalogue shopping can help to grow the use of technology. Tesco is the Repuated super market so it have a many new market opportunities in the world. There must be not need to too much advert to sell their good in the market. From these opportunities the company can sale their goods on the low price. Tesco has good will, so the company can certainly increase its business in the new place. Every place there exists automatically using a Tesco customer. Tesco can simply increase its business in the Product and service focused as well not only retailing oriented.


There is many dangers have in the Tesco. First and main menace is to keep up it present business success and good will. Plus the another hazards of Tesco is to diminish its operating cost and improves it's income rate then reduce the price of these reselling goods. The another Dangers of Tesco is to made new marketing coverage with time to time and increase it's business in the world. Due to the recession, market has been damaged by the financial factors. Clashes with farmer union Increasing raw materials cost in both food and non meal. But the company canhandle this situation utilising advantages and opportunities available by using proper marketing options.

Process of Tesco:

Tesco is the store supermarket so it main work is acquiring the goods and sale it. Within this section I will explain the merchandise, sale and circulation procedure for Tesco.

Production process of Tesco:

Tesco didn't product all goods which it sale. Tesco choose the goods in inexpensive price and packaging in suitable pack and tag the price and Tesco brand then sale it from their store. The right item are product also. Tesco is a store supermarket so you don't have to explain the product procedure for the Tesco.

Sale procedure for Tesco:

There is a number of sale process of Tesco. First the company packing the products in the economy load up and then label the price and company label and decorate it in the store corresponding to goods character and durability. The client himself can certainly found and take their need goods from the store. Tesco supply the facilities to buy good from cellphone shop, online store and store shop. The customer pays bye cash and credit card. In the online shopping the can pay by the bank card.

In the store every goods have computer entrance so any customer didn't bring the store goods by the unlawful method. If they do that the store siren is crying. Within the every item have price tag. In the shop when the customer gather their need goods plus they go directly to the paying counter-top and pay the price tag on goods and then they can carry of their goods. In the shop has monitoring by the CCTV camera to customer safety. In the store there is store staff help to the customer to collect the goods. In this way the sale process is doing in the Tesco shop.

Distribution process of Tesco:

Tesco is merchant store so it did not send out it's goods to other store expect their own store. Tesco has sent out the goods of the other store of their central store. The sales store are demand the goods to the central store. Corresponding to sale store demand the central store send out the goods.

6. Marketing Strategy Options:

There should be low purchasing ability of consumer in the economic recession. These time is global economies recession time, in this market situation above mentioned Tesco marketing policies must be suitable for consumers. In this manner this Tesco marketing strategic may work in this easily.

Tesco has managed successfully presenting clothing as well as non food items. According to the Michael Porter new entrants are able to generate new capacity to the industry in such way long term company goal will be performed. In terms of new business era, company can identify its product especially in the developing country; degree of family range is different. So it can launch its product as per the buyer needs and belief.


Customers or buyers are the investments of the company. Company should respect their notion. Company should maintain the loyalty of the buyer. Buyers are the price sensitive in some instances and product (quality) very sensitive as well. Therefore Tesco can provide the qualitative products in low price by using high quantity procurement of the merchandise.


Company can receive goods and services in cheaper rate only if buy the product in large volume. Company also might be experienced of farmer union group. Therefore Tesco can purchase directly in the huge amount such that it can get huge discount.


The positions of substitute's product are a subject of searching for

Other products that is capable of doing the same function as product of the industry or player on the market (porter 1980). It gets the lots of the product that can perform the same function. It offers own network. It can be in contact through e-shopping and internet shopping to the client. Industry


Competition not only originates from existing rivals but also frompotential entrants such as retail supermarket, currently ASDA,

Sainsbury, Morison and Somerfield is the competition of the Tesco. But Tesco can unveiling its policy studying rival competition strategy. Porter's (1980) five pushes provide basic view to the analysis of competitive environments in particular organisations. Tesco can also apply differentiation strategy, products offering benefit and change from those made available from competitors.

Competitive advantage

Competitive Edge is a firm's ability to change inputs into good services at a maximum revenue on a sustained basis, better than competitors.

It is true there a wide range of varieties of Supermarket in the market. So there exists hard competition the other person to business. Included in this the Tesco company's this marketing proper help to obtain the competitive advantages for the customer. By competitive advantage enables the company to generate superior value for its customers and superior profits for itself Tesco Company. The goal of Tesco strategy is to attain a ecological competitive advantage. Within this economics recession time the Tesco are certain to get the power of challenge the greater other problem. So this time Tesco use to advantage of competitive. By this gain the company can expand the business enterprise and by that home based business the company can earn much more profit. For the reason that situation the company itself established the market. This strategy permits a company to use in a more efficient or elsewhere higher-quality manner than the firms it competes with, and which results in great things about company.

Tesco have own patent and trademarks, propricatary know-how, Installed customer platform, reputation of company and brand quality has help to get comparative edge.

(B) Investment opportunity evaluation

Tesco is a reputated supermarket therefore the customer believed the business. Its investment opportunity is very good. Tesco has successes to made devoted customer. The period of financial recession time Tesco has going to provide their goods in the low cost. If the price is low than range of customer rises. when business get the success than investment opportunity also heightens. These kinds of strategy help the investors to reunite his investment.

Core Competencies:

Core competitive business lead to competitive advantages when they relate to an activity that underpins the value in the merchandise features, they lead to degree of performance that use significantly better than competitors and they're difficult for opponents to imitate. Presently Tesco is wanting to diversity its activities in the non meal as well, and make an effort to be reputed as with food items. But also for that purpose it must lead the level of performance in terms of rivals. For Tesco, ASDA and Sainsbury are the rival competitors in food item also, they are trying to provide goods and services in low prices in order to sustain customer devotion. Therefore Tesco provides own private labeling product in affordable price. In today's markets and circumstance, indirectly, competitors make an effort to make competition product failure by initiating their policies. So, in such case Tesco could be in a position in regards of providing unique products.

(D) Value-based marketing strategy

Company can go with this strategy in order to get value for the money. Product should be designed in such way making customer to buy that is service is value for money. Tesco supermarket gives the infancies with their customer. It's main objective is "Creating value for customer, to earn their life time loyalty". The worthiness provided functions customers best interests. So it provides goal of customer value. By doing this, an enterprise succeeds, attracts new customers, and can continually improve the value offered to existing customers. The negative facet of this Strategy Options is the company did not gather the greater perfect in some time however in the long eye-sight it is wonderful for company.

(E) Market leadership

Market management is the position of the company with the largest market talk about or highest profitability margin in a given market for goods and services. Market show may be measured by either the quantity of goods sold or the value of those goods. Tesco should follow the concentrate on leading very market business. It will able to explore the benefits that suit its customer so that it will lead to be leader in supermarket business on the entire world. It can aim for all the portion with better standard and quality goods. Home based business supermarket vision and variety of it's retailing good is going to help to become a supermarket innovator.

4. Conclusion and Recommendation

(A) Conclusion

Tesco continually doing marketing research and try to determine of the customer changing interest. As well the company doing research to new technology and business sector. In this manner the business enterprise can improve regularly according to market demand. It can be head in the supermarket if it provides better good to the business. It also has to provide productive service predicated on its opportunity. All online marketing strategy should be utilized effectively which helps in betterment of the company. It shows the strategy implemented by company was effective in coming year also Tesco will present new feature of business.


Tesco business is good in the present day but it is hard to maintain it business good will in the future. In the present day business is hard competitive business. We are able to see In the market there exists many sorts of supermarket are introduce day by day so Tesco need to diminish it's operating cost and sell the goods in the cheap price. Tesco need to add the other store in other someplace.

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