Strategic Marketing

Strategic Marketing

Strategic Marketing

Introduction

Today's markets are increasingly becoming globalized, which has resulted in increased competition; therefore making it difficult for firms to survive the intense competition not only from the domestic market but also from the international competitors (Analoui & Karami, 2003, 74-79). Thus, it has become essential for companies to ensure that they strive to have a competitive edge over its rival to sustain in the competitive market. The food and drink retail sector represents the largest industry in the UK, which provides employment to more than three million people in the primary production, manufacturing and retailing. The retail industry of UK contributed 9% to the country's gross domestic product (GDP) in the year 2003 (www.ivoryresearch.com).

Tesco is one of the largest food retailers in the world, with approximately 2,318 stores and 326,000 employees (Gilbreath, 2009). The company operates under four banners that is Extra Superstore, Metro and Express. Tesco sells around 40,000 food products, clothing and other non-food lines. Tesco is also involved in providing other retailing services such as personal finance services and it is becoming one of Britain's largest petrol retailers (www.ivoryresearch.com). The report will provide a brief overview of the company's marketing mix, and the retail industry analysis of UK. It will provide an insight on the retail industry of UK along with thorough analysis of a large supermarket Tesco (Michalowicz, 2009).

Asda, Sainsbury, Morrison and Tesco These four brands have a 75% of the market share out of which Tesco captures the largest share. In consumer market, every 8 pounds from supermarkets will have nearly 1 pound earned from Tesco. Often these supermarkets in the UK receive preferential policy from the government which enables them to have price advantage; this determines that they can unfairly compete with small retailers in the industry (Moran, 2006).

Marketing Mix

Marketing mix is the blend of product offering, pricing, promotional methods and place or distribution channel that brings specific group of consumers with superior value (Gitman and McDaniel, 2009). Marketing mix is described as a tool used for defining controllable marketing variables which a company blends in order to produce the response it wants in the target market. The marketing mix is composed of 4 P's that is Product, Price, place and Promotion. However there are three other P's which includes Process, People and physical evidence (Analoui & Karami, 2003, 74-79). It is essential to develop marketing mix for a company to successfully meet customers' expectations. Marketing mix therefore refers to seven critical P's of marketing. Tesco is considered to be the Britain's biggest and most profitable supermarket chain over the last decade. The reason for the success of Tesco is their continuous efforts that they make to expand their products and services in their stores (Moran, 2006). Their offerings to customers are unlimited. However products of the company are not the only factor that enables firms to achieve success, but all the 7 P's of the marketing mix are interdependent, for instance is the product is of good ...