Marketing Audit of Tesco

Marketing Audit of Tesco

Introduction

Rapidly changing environment and market conditions continuously challenged the positioning and marketing strategies of even some of the top notch multinational companies and market leaders. In the midst of globalization and unstable economic and external environment periodic marketing audit and planning is extremely important to revive the company and provide them with the new suitable direction. Tesco is one such leading retailer brand in Britain and is doing great in terms of its operations within the country as well as across the border. Tesco has its presence in many different countries and deals in general merchandising and grocery retail services. It is the market leader in terms of its sales in the global and domestic market. It was established and started by Jacky Cohen in the year 1919 (Sribd). Initially the company was dealing in drink and foods items but it expanded its business into other marketing segments like electronics, clothes, telecommunication, financial and health related services, insurance facilities etc. it is also involved in the business of music downloads, Cds, software and internet (Ring and Tigert 2001). While many retailers like Tesco and Ahold were quite successful in developing appropriate and competitive online marketing strategy. Authors suggest the retailer that are experienced in the line of food and beverages in terms of large distribution channels has proved to be useful in the development of new marketing channel (Lee and Shu, 2005).

Discussion

SWOT Analysis

Strengths

One of the major strong point of Tesco is the brand name and image of the company. Its global presence all over the world and quality of products and services makes it stand out amonst other retailers.

It is the marker leader and is the third largest retailers in the world.its business across the border in international markets is also growing. It is not only growing in terms of profitability which has been predicted to account for more than quarter of the total group earnings but also gaining regional strength by spreading and expanding its business in other geographical locations (Scribd.).

It has a diversified portfolio of business in terms of products and services as it is dealing in different product categories and market segments like music, insurance, food, clothing etc.

Its suppliers and distribution channel are very strong, reliable and competitive.

The non food business items and division of Tesco is another very major strength which is stable and growing rapidly and the revenue earned from this area makes up 23percent of the total earning.

its insurance services are also doing great and reached a target of one million insurance policies in the year 2003 (Datamonitor, 2004).

Its online business by the name of Tesco.com is also one of the world's largest leading online retail market offering its services to more than million users and its sales has crossed 577 million which is 29 percent increase from the last year.

It's the leading and number one retailer in UK according to the ranking of the year 1996. It has left Sainsbury behind in terms of sales ...