Free «Tesco Marketing» Essay Sample

Tesco is one of four largest leading supermarkets in the United Kingdom. In addition to its food dealing, Tesco runs a considerable non-food trade and Internet business. It has extended Tesco products and services to mobile phones and banking with Tesco mobile and Tesco bank. Its reliability plan Clubcard was a precursor in CRM plan, which was launched in 2009.

A significant aspect of changes in governance was formation of the Board Corporate Responsibility Committee in order to certify that the Board upholds a deliberate focus on responsibility of  a business in the broadest sense, showing significance to the business of its external effect. Operating on a social scale and having increasing profits, the business has to reveal a nature of its responsibility regarding its performance. It also has to reveal how it releases that accountability to the community where it functions. For the new Committee, this is going to be an imperative centre of attention.

Central issues are the impacts and the consequences of the declaration of the resignation of Sir Terry Leahy from the Group in March 2011. The Board has been subjected  to a number of changes. Richard Brasher, apart from David Reid, resigned from the Board. David Potts has retired, and Andrew Higginson will also retire soon. Deanna Oppenheimer was also welcomed as a non-executive director to the Board of Tesco. Oppenheimer brings in valuable banking, international, digital, and retail experience to the Board. According to Yukl (2006), management is a subject that has spawned substantial amount of concern amongst people for a long time.



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The brand of a service unit has considerable effect on marketing strategy. Provided the significance of a sturdy federal brand to extend and deepen customer relations, development-based businesses are more likely to be successful if they have a product name that can be used in the new market. This shows that branding is not just advertising that promotes manufactured goods and announces its advantages to targeted markets. It is a component of a service vendor that creates image of the business in the market. Over the past few decades, Tesco has tactically positioned its brand as the most valuable brand in the United Kingdom. This contributes to customer satisfaction.


Tesco supermarket had to maintain its successful growth and high customer satisfaction. It had to strengthen its competitive position and find a way to secure its role in the lives of consumers. The old technique of inspiring playfulness was not working. Tesco needs a new strategy to position itself for consumers and in the market. It also needs to make this perceptive central to the product as well as it has to link the brand with consumers in a way it did not before (Atkinson, 2010).


In order to secure its revenue growth, Tesco’s communication strategy had to ensure that people remained loyal to the product and reduced range, therefore, reducing the risk of shifting to competitive products. Therefore, it will need to create an effective communication strategy to boost product equity, thus giving Tesco a unique and clear role in creating stronger connection of the customer with the product and improving the overall product quality.

Organisations operate more effectively when they interrelate with their external surroundings. Fleming & Senior support this perspective as they believe that change is crucial for organisational growth (2006). This has set the ground for the prospect, a future where Tesco will ensure that its talent and capital are put to operation where it benefits the majority of its customers and shareholders. Tesco will be more creative and innovative as it addresses the needs of consumers around the world both online and in store.

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Tesco businesses are managed mainly by local groups so that their operations can be closer to customers they serve. Local ranges support Tesco’s smaller suppliers and offer customers a modified product offering. Tesco’s dedication to online services and buying is an important point. This has got into petrol station industry as well as mortgage industry (Morrison, 2002).

Key Stakeholders of the Organization

Tesco has a wide range of stakeholders, who have many different expectations and needs, which sometimes are in conflict. It is not possible to satisfy all stakeholders, but Tesco can guarantee all of them that it has listened and taken their point of view into account when assessing different considerations.

The table below shows main concerns raised by different groups.

Shareholder Interest and Expectation of Tesco

Good shopping trip.

Good neighbour.

Operate fairly and honesty.

Provide a choice of products, including sustainable, healthy and affordable options.


Fair terms and conditions.

 Interesting job.

Manager who helps me.

To be treated with respect

Opportunities to get on.

Safe and healthy workplace.


Good neighbour.

More employment.

Support for local causes and initiatives.


To be treated fairly and honestly.

Long-term relationships, opportunities for growth and shared customer insight.

Governments and regulators

Legal compliance.

Stable, family-friendly job opportunities.

Good quality training.

Timely payment of all taxes.

Non-governmental organizations

Leadership approach to CR issues.

Clear policies and principles.

Credible, transparent communication.

Key Issues on Managing Stakeholders

Tesco Group is committed to having a productive dialogue with its stakeholders to make sure they understand what is significant to them and give the Board an opportunity to present its position. Every year, the Board conducts a survey of a cross segment of shareholders to measure shareholder sensitivity of the company. Outcomes of this survey are re-examined by the Board. Engagement will help the company to determine new opportunities and risks to ensure that the long-term strategy of the company is sustainable. In some cases, the management discovers that working with stakeholders in corporation can help attain common goals.

Company's management team might not be able to meet all stakeholders' interests all the time but it can do its best to balance challenging demands through engagement. Customers have to trust the company and they will only trust it if they suppose that the company is engaging with its stakeholders (TESCO Annual Report 2012). Tesco upholds discussions with shareholders through scheduling presentations and meetings as well as acting in response to a variety of enquiries. The company also evaluates shareholder perceptions on a number of issues from corporate to strategy administration and SEE issues. It also recognises the significance of appropriately communicating any major company developments.       

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Tesco's SWOT Analysis


  • Tesco has held commercial position within the international market, which helped them win in a nomination Retailer of the Year at 2008 World Retail Awards. This achievement can be useful in promotional campaigns to drive benefit towards the demographic foundation to ensure future sustainability and development.
  • As a business aiming to achieve constant expansion, Tesco has reserve finances of credit joined with income copied from property portfolio development funds.
  • Availability of market is a major strength of Tesco. Tesco has enjoyed operations on both local and international markets for its products. In an environment where international sales or performance are dropping, Tesco Group has achieved sales increase of 13% in the UK market and 26% increase in the international markets (Datamonitor, 2004).


  • Tesco's positioning as a leader of the price in UK market can lead to abridged profit limits in order to keep hold of key price points.
  • While present economic conditions show that Tesco's chief value message will do well, there exists a weakness in dispensable, central to elevated ticket price items, which will result from lower non-refundable incomes and increasing cost of living.
  • Grocery outlet channels are not established to run as professional retailers in certain areas of manufactured goods, which may be capitalised on by other minor customized retailers.
  • Profit levels of Tesco were impacted by credit card arrears, household insurance claims, and bad debt.


  • Attainment of Homever offers an opportunity to expand the brand throughout Asia, more precisely South Korea, and additionally develop global markets for the Tesco group.
  • Tesco mobile has gained ¼ million clients in 2008 and enthused into profitable position signifying further development and growth within this technological field.
  • Growth of Tesco Direct through catalogue and online shopping will develop the use of technology, offering the launch pad for well-built non-food based goods with modest to elevated "margin profits and less focus on margin per foot return to space and sales".
  • Statistics shows that Tesco is third biggest worldwide grocer, which designates an intensity of buying power to ensure economies of scale.


  • UK and American markets were influenced by economic anxieties associated with credit crunch. Decreased income of customers will influence the company as it may need to lower prices for fundamental products. This will shift customers' attention away from higher priced products leading to a change in price structure.
  • Extending changes to Far East regions regarding exporting limitations on some non-food produce will lessen margin rates on goods with already low margins.
  • Changes in customer buying patterns require extra research. As technology develops, customer buying behaviours change and result in product regions requiring evaluation.

Rising cost of raw materials to produce food and non-food will affect profit overall margins.


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