Marketing Strategies adopted by Tesco (UK) in response to the Financial Crisis in the United Kingdom, in 2009

by

ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

The main theme of this study is to analyze the change in marketing strategies of Tesco during the financial crisis in 2009. The outlook of the global economy plays a significant role on the lives of people all over the world. The global economy impacts people behaviours and sudden changes in the financial markets impacts consumers buying habits. This dissertation examines how Tesco adapt their marketing strategies to the changing consumer buying behaviour during the financial crisis. This research study is an evaluative process to measure quantitative data, which is collected through a questionnaire. The data set has been analysed by using SPSS. The findings of this study suggests that during the phase of financial crisis Tesco change their marketing strategy and successful to retain their customers and their market share. They introduce the schemes of discounts to attract customer. Tesco also start promotional campaign in which they offer gifts and different rewards to the customer. This strategy of Tesco is quite successful because the findings of this study suggests that customers willing to shop from Tesco stores during the financial crisis period.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER # 1: INTRODUCTION1

Background of the Study1

Problem Statement2

Purpose of the Study3

Research Questions3

Significance of the Study4

CHAPTER # 2: LITERATURE REVIEW7

Theoretical Foundation7

Retail Trends8

Organizational Culture14

Interactive Customer Based Management15

The economic crisis and after16

Two Opposing Forces on Downsizing21

Institutional Forces22

Organizational size24

Foreign ownership25

Unionization27

Economic Forces27

Industry Concentration29

CHAPTER # 3: METHODOLOGY31

Research Design31

Population and Sample32

Data Collection and Instrumentation32

Data Analysis33

Reliability and Validity33

CHAPTER # 4: FINDINGS36

Demography of Respondents36

Attitudes of Shopping during the Financial Crisis period38

Perception of Tesco Strategy during Financial Crisis39

Customers Attitude47

Correlation Analysis50

Marketing Mix of Tesco51

Product51

Price52

Place52

Promotion53

Summary53

CHAPTER # 5: CONCLUSION AND RECOMMENDATIONS55

Scope of Study55

Recommendations56

Implications for Leadership58

Areas for Possible Future Research59

REFERENCES60

APPENDIX63

Questionnaire63

CHAPTER # 1: INTRODUCTION

Background of the Study

The retail store industry continues to look for ways to create better service that will lead to an increase in customer satisfaction and customer loyalty. The retail marketplace in the 21st century is fuelled with competition, creativity, and innovation. Retail store managers throughout Europe are taking into consideration managerial tools and processes to improving customer satisfaction and customer loyalty. Technology, marketing strategy, and inventory management systems are tools that can be used by retail stores to preserve and improve consumer-buying ...