MARKETS AND MARKETING MODULE

Markets and Marketing Module



Markets and Marketing Module

Executive Summary

It is true that the internet has changed the lives of the people and has made nations close to each other. It has become so easy to access any information regarding any product and services all over the world. These days, products are also advertised through internets which are more effective than the traditional marketing due to globalization. The traditional marketing no doubt effective but the amounts which spend are quite high. However, internet marketing outcome is alike, but cost effective; moreover, it is convenient for people to look at the new product, their features and purchase online rather than going to the store. Hence, for companies to promote their product through this mode is very ideal.

Big companies are now moving towards internet marketing as use of marketing increased in this era. For this purpose, the company should have a strong internet market plan and strategy which can create a challenge for their competitors. In UK, almost one-third of the population uses internet, and hence the online marketing techniques plays a crucial role in the retail sales market. On the other hand other direct marketing techniques attract only a small amount of consumers, and are proving costlier than the online techniques.

In this paper, we will discuss the internet marketing strategy of the TESCO as the existence of the TESCO is almost every where in the world. Before the analysis, of the internet strategy of Tesco we will first discuss the main features of the company, industry analysis and others that have a direct connection with the internet marketing 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

Porter's Five Forces

Threat of New Entrants

The grocery market has changed into the supermarket-dominated business over the last 30 years. Majority of big chains have stamped their authority because of their effective competence, one stop shopping and key marketing-mix expenses. This compelling power had a huge effect on the undersized conventional shops, for instance slaughterhouses, bakeries etc (Narver, 1990, Pp. 20).

Bargaining Power of Suppliers

This force signifies the control of dealers, which could come under the influence of the main chains of grocery and the fright of losing their business to the other big supermarkets. In response to this, the merchants whose bases are in the UK can be also threatened by the active practice of the ...