TESCO MARKETING AUDIT

Tesco Marketing Audit

Executive Summary

Tesco is a UK based company functioning in four banners: additional, supermarket, Metro and Express. Tesco sales in nourishment goods are roughly 40,000 in its superstores, as well as clothing and other non-food lines. The business has become one of Britain's largest petrol independent retailers. Other retailing services suggested in the UK encompass Tesco Personal investment and Tesco.com. The business has procedures in the rest of Europe, including the Republic of Ireland, Hungary, Poland, Czech Republic and Slovakia.

Tesco Marketing Audit

Introduction to Tesco

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.

DiscussionTesco Brands and Segmentation

Wide range of Tesco products under its different brands is the factor that helps Tesco to maintain its position in the market and give the organization an edge. They have different brands for different categories of customer segmentation. Creating a separate brand for a segment of customers enables Tesco to be the first choice of customers in that segment. For example, Tesco finest caters customers that fall in the category of the finest food that constitute about 19% of their market. Then they have segmentation with the title of healthy that caters customers who are health conscious, so, Tesco organic and Tesco health living are the brands that deals with this category and this segmentation of customers constitute about 17% of their market. Then next segment of customer that constitute around 15% of their market is titled with the name of regular customers, to deal with these customers Tesco had devised a brand with the name of TESCO. After that, there is another segment that constitutes about 24% of their market. This segment of customers is termed as mainstream and to deal with this segmentation Tesco Kids and Tesco play their part. Then they have segmentation with the name of convenience that constitutes 9% of the market and Tesco is the brand that deals with that segmentation. Then there are price sensitive customers to meet the needs of such customers Tesco have a brand with the name of Tesco value and this segmentation constitutes about 16% of the market.

SWOT Analysis

Strengths

Tesco is the third biggest food shop retail business in the world, functioning over 4,331 shops mainly inside the USA, Europe and Asia (Datamonitor, 2010, pp. 74-85). The business apprehended 30.7% share of the UK food shop retail market in 2010 (Euromonitor, 2010, pp. 33-40). A powerful financial performance has been shown by the business over the ...