MARKETING

Marketing Promotion Strategy

Marketing Promotion Strategy

Introduction

Tesco is a significant international retailer. As a global business, the company perceives itself as having a vital role to play in helping to minimize its environmental impacts. Although based in the United Kingdom, Tesco PLC has developed into an international grocery and general merchandising chain, employing 440,000 staff worldwide and with sales exceeding £59 billion (in the year ending February 2009). Operating income exceeded £3 billion. These figures make Tesco the largest British retailer in terms of both combined sales and domestic market share, and the third largest in the world after Wal-Mart (United States) and Carrefour (France). It is claimed that £1 in every £7 of UK retail sales goes the way of Tesco.

Environmental Analysis

Porter's Five Forces

We can make an analysis of the external environment of Tesco PLC through the Porter's five forces model. From this model we can see that competition in terms of suppliers is very high; therefore, the bargaining power of suppliers affect the environment of Tesco PLC. As the competition is very high and there are many other retail stores; therefore, customers bargaining power is very high as customers have the option to go for others . New retail stores are entering in the market bringing threats for the company.

PESTLE Analysis

Political Factors

The main political factors associated with the Tesco are as followed. The local authority support for the charity is declining continuously. There is a great potential of withdrawal preceding the changes in the political control. There is also lack of coordination in the charity agenda. The political factors have greatly influenced the regulation of charity.

Economic Factors

There are some economical factors which can affect the market of Tesco. These are the factors through which the purchasing power of the potential clients is affected. The economy has low inflation rate which is considered as the benefit and good sign for the companies. The rate or inflation has decreased to 1.3%. Another good factor for Tesco is that the unemployment rate is very high and; therefore, the rate of spending is also high. This is a very good sign for any company who wants to start its business . It is calculated that the GDP of the country is also increasing at an accelerated rate and which is also increasing consumption level of customers.

Social Factors

In South London, the access of the Internet is growing day by day. Statistics show that almost 29.8 ...