Delivering Customer Value

Delivering Customer Value

Tesco

Tesco Plc is a British is a general merchandise retailer and a chain of multinational grocery stores based in the state of Chesnutt in United Kingdom. All across the world, Tesco is the third-largest retailer in terms of its revenues, and is followed by Carrefour and Wal-Mart; the company is also the second-largest with respect to its annual profits and is followed by Wal-Mart in ranking. Tesco own its stores in approximately 14 countries spread across Europe, Asia, and North America. It is also the market leader in grocery markets in Malaysia, United Kingdom having a market share of approximately 30%, Thailand and the Republic of Ireland (Tesco, 2012).

It was in 1919 that Jack Cohen had founded the company in the form of a group of market stalls. Later, the business saw a quick expansion and by the year 1939 Tesco was spread all over the country in the form of 100 Tesco stores. Initially built as a UK-focused grocery retailer, The Company has been subject to increased geographical and segmental diversification since the 1990s. At present, Tesco operates in clothing, books, furniture, electronics, petrol and software; internet and telecoms services; financial services; music downloads; and DVD rental.

Delivering Customer Value

Tesco is one of the leading companies that focus upon the customer service delivery and creating value for them. The company creates values for its customers in the following manner:

Marketing Mix

Tesco has created it marketing mix or Ps (product, price, place, and promotion) in order to align these factors with the customers' needs and affordability. The entry into different markets all over the world by Tesco has been made by significant adaption to the consumers' culture in relevant markets. It has made certain changes in the service provision with respect to its four Ps which are completely in adherence to the standards inherent to the company.

A. Product

Tesco sets off its strategies and tactics of the product development by taking control of the regional and global markets through marketing their current services and products. They do this by exporting their products in various regions and provinces and making use of all the available opportunities of enhancing the market share and market penetration of the company. Tesco also considers the revision and restoration of the older models of its products to in order to provide its customers across the world with all that they needs and want (Tesco PLC, 2012). Thus, Tesco develops its stores and brands according to the customers' needs and markets them strategically at the respective locations.

B. Price

Tesco has been acquiring the cost advantages through increasing its process efficiencies, and growing its contacts with the large supplier of lower cost materials. Thus, it aims to provide value to its customers through the cost leadership by attaining competitive advantage.

C. Place

In order to successfully develop the company's retail operations, Tesco has been making huge investments in the expansion of its stores in low-income localities and districts. Moreover, through acting in a socially responsible manner and getting involved in ...