The Structure And Functions Of Tesco Marketing Essay

This record examines the framework and functions of Tesco. It covers the aims of Tesco and how it pertains to its stakeholders. A supermarket exists in a competitive environment, where it acts as a value-added intermediary between geographically dispersed supplier companies and the spread individual customers who eventually buy their products (Steeneken and Ackley, 2012).

"A couple of a lot of things that punch a newcomer to Tesco. This is an enterprise with an unusual range and depth of primary competencies; it includes outstanding operational efficiency; it knows deeply what it means to orientate a company around the customer; it is passionate, and successful, about growing ability from within; and it manages a sophisticated operating environment with great team work". - Sir Richard Broadbent (Chairman's Assertion - Tesco's Annual Report and Financial Statement 2012).

The company's success today would depend on the people who invest in Tesco, those who shop and the ones who work at Tesco. With an objective of becoming a world renowned merchant, Tesco strives to understand and meet up with the needs of most its players.


Tesco is a English retailer that deals in grocery and general goods.

Tesco's vision is usually to be most respected by:

Its customers

The communities where it operates



In 1997, Tesco set out a strategy to expand the core business and diversify with services and services in existing and new markets. This strategy has empowered Tesco to deliver strong, sustained expansion over the past 15 years. Tesco followed customers into large widening markets in the UK - such as financial services, basic products and telecoms - and new marketplaces abroad, at first in Europe and Asia and more recently in america. Currently it functions in fourteen (14) countries across Europe, Asia and THE UNITED STATES (tescoplc. com).

Over the years the business has devised a seven part technique to help in preserving sustainable growth. They are:

To grow the UK core

To be an outstanding international store in both online shopping and in stores

To be as strong in the rest they sell as they are in food

To increase retail services in all its stores

To be in charge of the neighborhoods it serves in

To be a highly respected brand

To build a team that can create more value

Source: Tescoplc. com

Tesco's sparkling growth has come at the expense of rivals, who are battling to keep customers. The other UK supermarkets simply cannot be competitive on both price and range of different store formats (Corporate Watch, 2004). Inside the supermarket industry, 'non-food' products hold much bigger income than traditional food products, especially when they could be bought in bulk and sold at low-rent out-of-town premises (Commercial Watch, 2004). Tesco came to the realization this in time and took advantages.


Since its inception the company has used various means to deliver retail services to its customers and has grown into a chain of supermarkets. In 1999, Tesco launched its online retail service in the united kingdom which ended up being very successful.

In 2005 Tesco presented the Guideline Daily Amount brands making it the first retailer to put healthy information on the front of its packages.

Tesco has declared following new customer research, its support for a cross labeling system that combines its existing Guide Daily Quantities (GDA) with the "traffic light" color coding system (www. tescoplc. com). The traffic light color coding system runs on the coloring coded classification to ensure a product label provide information in a format that is most readily useful to consumers. Philip Clarke, Tesco's LEADER said: "We are committed to doing what is right for our customers and for that reason are determined to bring together the distinct benefits associated with GDAs and traffic lighting. We know customers are looking for a consistent approach, and plan to work with federal government, health bodies, other stores and manufacturers to provide this at the earliest opportunity. "

Tesco is currently running pilot projects to wireless-enable three shelf-edge activities: stock maintenance; price management; and customer product information (Riley, 2012). Tesco has received Mobcast, the award-winning digital publication platform provider, to provide its customers even more choice in how they buy and revel in literature (www. tescoplc. com).

Extranet system employed by the company, permits Tesco to make an online search to make proprietary and customized information flows between your company and its own business partners. The machine connects business associates online behind virtual firewalls, delivering more overall flexibility, scalability, extensibility and integration over the distribution channels (www. ivoryresearch. com).


A stakeholder is a person or in this case a group of people who have an interest or are matter about something (Concise Oxford Dictionary). Tesco's stakeholders are its customers, staff, traders, suppliers and non-governmental organizations (www. tesco-careers. com).

IT costs at Tesco has to satisfy four key questions showing how it facilitates the retailer's central purpose of creating value for customers to be able to earn their life time commitment. These questions are:

Will it make the customer shopping experience better?

Will it increase the capability of staff by causing things simpler?

Does it bring about a more agile infrastructure?

Does it use common back office systems and process?

(Riley, 2012)

As part of its marketing strategy, Tesco makes a mindful effort to hear its customers. Tesco offers its customers quality at affordable prices, always putting the client first. "Our central values 'no-one will try harder for customers' and 'treat people how exactly we prefer to be cured' characterize our method of Commercial Responsibility. We believe that we can achieve most when we work together on practical things that make a difference. 'Every little helps' may become a good deal when everyone pulls in the same path. " Sir Terry Leahy, previous CEO of Tesco (www. tescoplc. com).

Tesco believes that continually engaging customers in communication helps the company to learn its shortcomings and the way to rectify them. Regular forums are planned in-store to get opinions from customers. The company has a big number of suppliers and a strong partnership with its suppliers; this ensures a trusted supply chain which in turn means that customers get what they need when they want it.

The staff can be an essential part of Tesco's success, therefore the company makes initiatives to make give all worker equivalent chances to can get on. Worker development is important at Tesco hence the investment in a state of the art Training Academy in Asia. Employees are encouraged to take good thing about trainings and groomed to deliver their best. Employee performance is actually assessed irrespective of the role they play in the business; this is to ensure that the business's focus is retained.

Tesco offers to actively support local neighborhoods, buy and sell products responsibly, care for the surroundings, provide customers with healthy choices and also create good jobs and occupations (Corporate and business responsibilities-www. tescoplc. com). There are community champions who make an effort to understand the areas in which Tesco serves and come up with ways in why Tesco can make a difference in these communities. The business has partnerships with a number of NGOs and helps groupings like Mary's Meals; a global Charity that provides food for university children, the English Red Mix, and The Consumer Goods Forum; which really is a global Committee that recognizes tasks that can enhance the sustainability account of the retail industry.

Periodically, Tesco fulfills with its traders to update them on the performance of the company; there is also a link on the Company's website that delivers investors with revisions. Tesco continues to communicate with investors year round by sending shareholders publications to simple them of the company's finance and functional standing. All buyers want good profits on their investments and Tesco is committed to giving investors profitability.

Tesco comes with an Investor Relations clubs that engages with shareholders on a regular. THE ORGANIZATION and Legal Affairs Director, leads the Company's connection with socially responsible buyers and has regular conferences, on both a one-to-one and group basis, to discuss the task the Group does on commercial responsibility and governance-related issues (www. tescoplc. com).

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