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TESCO is the first food retailer in the UK and the third world. They distribute mainly in the UK, but also a few in Europe and Asia. Tesco is present in the food and non-food (textile, pharmaceuticals, computers, optics, TV Hi-Fi Video, home appliances, travel, etc). It also provides telephone services via Tesco Mobile (250,000 customers) created in 2003 in partnership with O2 , a number of industry in Britain. Result of all this, between 1999 and 2008, Tesco has increased its turnover and profits by three by five (Finch, Julia, 2010, p. 7-8). Paying special attention to customers, competitors and the marketing environment - this principle has helped the company Tesco to become UK’s largest network of grocery stores. Under pressure from Asda, Sainsburys and other competitors', marketing managers from Tesco are constantly looking for new opportunities, building on the changing preferences and environmental factors such as new technology. Not long ago, in dozens of supermarkets, a focus group study was conducted, aiming to find out what services (e.g., parking), in the opinion of consumers, require most improvement. Such knowledge helps the company better meet customer needs at the local level and, if necessary, revise their plans (Finch, Julia, 2010, p. 7-8). The company is also trying to force the online trading of food in Seoul, which opened a service similar to that existing in UK and U.S. Research has shown that in Seoul, with its high population density and public access, such service will be popular. In addition, the company recently decided to lower the price of whole milk, having learned from research that increased demand would justify a price reduction (Finch, Julia, 2010, p. 7-8). A flair for such aspects of the environment helps Tesco keep its leading position in the market.
Rate of change of the external business environment is constantly increasing, and companies operating in the market more than ever in need of accurate information about his condition (and in real time). Origin and development of this trend is determined by the transition from limited by national borders to a global marketing, meeting the basic needs of consumers - to fulfill their desires, from price competition - the non-price. At the same time rapidly developing information technology (more powerful computers, DVD-players, the Internet, etc.) (O'Grady, Sean, 2001, p. 11). With the expansion of geography of the companies increased their need for high-speed receiving large amounts of information. A consumer with an increase in their incomes are picky in choosing products. In order to predict consumer response to a variety of characteristics and features of products, vendors have to resort to marketing research. It is increasingly using branding, product differentiation and targeted to stimulate demand, they need information about the effectiveness of these marketing tools (O'Grady, Sean, 2001, p. 11). Many companies do not view change as new opportunities and ignore or resist them. Changes in the external environment have a negative impact on their strategies, structures, systems and organizational culture. It is ignoring changes in the macro environment, which was the main reason for the difficulties faced by such well-known corporations, such as General Motors and Sears. The primary responsibility for the identification of market changes rests on the shoulders of marketers, because they have to follow the development of new trends and identify opportunities in a timely manner (O'Grady, Sean, 2001, p. 11). This is how the marketing activities at Tesco helps it in achieving its objectives, by knowing the situation of the market and the consumer behavior in response to certain factors.
2. Identify the 4 Ps of Marketing in the company. Critically analyze these elements of marketing mix and suggest what changes are needed? Product When marketing the product, the type of the products plays a huge role. Therefore TESCO would be required to figure out who the end consumers of the products are, what kind of product in Their Customers are looking for, whether The Needs of the customer has changed and what Their Own Range Consist of product i.e. what They are and this Offering at Which products are about To Be released (Harvey, Oliver, 2007, p. 9). Price Tesco's marketing department is responsible for the price Being charged for the products. The aussi decide whether the price Should Be Reduced to draw more Customers or how to alter the cost of short shelf Lived products, and If They are able of charging different Customers Differently (Harvey, Oliver, 2007, p. 9).
Promotion Numerous Areas are regarded TESCO Before Actually Promotes Their Products, Including How To Inform Their Customers About their products and Their Specialized staff available. They need to find out what way of using advertising and where they are they could use it to target the most customers attention and other ways which could apply they promote their products (Martin, 2006, p. 6-7).
Place Another significant factor is the judgment to Which They Will distribute Their product, whether they Should sell Their product to a retailer of Directly to the end consumer. Moreover, TESCO Needs to find out If They Need specialist wholesalers
or agents overseas if They Are Internationally active There are gold if Any Their Ways of selling product over the world is different (Martin, 2006, p. 6-7).
3. Analyze the company’s strategic marketing choices with the help of related marketing theories. (e.g. Ansoffs Matrix, Porters Generic Strategy Model, Boston Consultancy Group Matrix). Marketing strategy (STP) Segmentation, targeting and positioning are three marketing strategy which should be used by the company for promoting its Fairtrade products aggressively, with objective of increasing sales. The following concern to them: Segmentation of strategy: Segmentation strategy plays a huge role in success or refusal of the company. Mass, local and niches, all segments of the market should be considered in marketing plan on expansion of sale of Fairtrade products for increasing satisfaction of clients in effective manner. For maintenance of the maximal consumer value, behavior of consumers will be studied before segmentation in which their taste and preferences, attitudes and the behavior of buyers will be estimated (Walker, Gaelle, 2006, p. 6). Pink: Pink part of a matrix designates area which has high appeal of a segment and the most suitable for the company over the longer term (Walker, Gaelle, 2006, p. 6). Red color: red part of a matrix reflects environments which have a smaller piece of appeal in comparison from the mass market. This part has less validity for the plan in comparison from the mass market (Walker, Gaelle, 2006, p. 6). Green: In this part of a segment of a matrix, reflects to a measure of appeal from the point of view of a segment and has smaller validity for marketing-plan developed for a retail network (Savill, Richard, 2001, p. 11-12).
Targeting strategy Targeting strategy in the marketing plan of business also defines viability. The target market for marketing plan must involve those people who have
preferences for Fair trade products as children, youth and people of middle age should participate all. The company should estimate demands of clients, with objective to reveal them in well planned in the image. For this purpose the firm should analyze the preferences and taste in Fairtrade products. The consumer behavior should be well analyzed prior to the beginning of targeting strategy (Savill, Richard, 2001, p. 11-12). Positioning strategy: positioning in the market for separate types of production plays a major part in the marketing plan. Fairtrade products should be located in city centre market in all stores of Tesco. Fairtrade products for youth and people of middle age in the Great Britain and other countries are recommended. For satisfaction of a growing demand for target clients for Fairtrade products, the product will be positioned in a convincing manner. On quality Fairtrade hints innovative design and to the added cost, this product will be positioned in intelligence of clients. This brand competes with the license goods offered by Wal-Mart. For this purpose the companies should go on some innovative modes to entice attention of clients to production of Fairtrade products (Savill, Richard, 2001, p. 11-12).
Competition analysis (major competitors, their strengths and weakness etc) Strategy: Tesco accepts effective marketing strategy for achievement of objects in view, which are viable during long success of start of the business. By means of these strategies, the company competes in the world market and has reached the top position in field of retail commerce. The company is organized in viable image which is responsible for its lead positions in field of retail commerce. For this part, model of McKinsey from 7Ss as strategy, staff, shared values, structure, skills, system and style is applied in Tesco. Five forces of Porter model is applied for an assessment of competitive advantages of industry. Tesco PLC works
in industry of retail commerce, which is diversified industry (Savill, Richard, 2001, p. 11-12).
4. Analyze the Supply Chain Management of the company? Suggest improvements. Located in third place the distribution, Tesco plc has chosen OpenTAS after a thorough selection procedure. Management solution for supply chain developed by Implico will be used for automatic provisioning of service stations in the retail giant. This will result in a highly integrated solution including service stations, tank farms, hauliers and the ERP system. Originally, the fuel distribution was originally intended to complement the food business Tesco, but she quickly gained momentum and eventually became an important link in the overall business strategy. Until now, the logistics of fuels was done via a custom development and manual processes. Due to the continued spread of this sector, Tesco has analyzed the market in 2008 to find the best solution possible for its logistics service stations (Helft, Miguel, 2001, p. 15-18). Offering Implico was exactly the solution sought by Tesco. Add years of experience Implico in oil, gas and chemical, its many successes and its presence in the global market: all arguments, for Tesco, weighed in the balance in favor of the solution OpenTAS . The decision to entrust the responsibility of the project experts in oil / gas Implico has furthermore been strengthened by the positive references provided by the customer Implico Topaz (Ireland). The modules involved include automatic inventory replenishment, the creation of orders and the provision, management and transport planning, contract enforcement and feedback from actual data. Additional developments have been made for contract management to obtain greater precision in the delivery of products by the subcontractor. These improvements allow daily monitoring of contracts which avoids any contractual
penalties. Effective route planning complements the optimization of logistics supply. The project team is very pleased with Tesco methodology Implico introduction and conduct of the project until today. "We agreed on a scheduled work very closely in the introduction. Nevertheless, Implico and Tesco have managed to increase both the performance results in the fuel sector". The definition phase of the functional scope (blueprint) is already completed, the end of the entire project is scheduled for mid 2010 (Helft, Miguel, 2001, p. 15-18).
Finch, Julia, (2010). "Tesco opens its first zero carbon store". The Guardian (UK). pp. 7-8 O'Grady, Sean, (2001). "Shirley Porter: Rich, flashy and corrupt with it. She's nothing like a Dame". The Independent (London). pp. 11 Harvey, Oliver, (2007). "TESCO kills of Well St Market". The Sun (London). pp. 9 Martin, L., (2006). "The supermarket that ate a town". The Observer (UK). pp. 6-7 Walker, Gaelle, (2006). "Online failing to deliver". The Grocer (William Reed Publications). pp. 6 Savill, Richard, (2001). "Tesco bomb blackmailer is jailed for 16 years". The Daily Telegraph (UK). pp. 11-12 Helft, Miguel, (2001). "Tesco buys stake in Grocery Works". The Industry Standard. pp. 15-18
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