MEDIA PLANNING

Media Planning for Service Industry

Media Planning for Service Industry

Background/Context

The paper will be discussing the media planning for Tesco in the retail industry. Tesco business is related to the retail industry comprising of supermarkets and wholesale markets. Tesco came into existence in 1919. It was Jack Cohen's idea that gave rise to such a huge and gigantic organization. Tesco is involved in grocery and general merchandising retailing. Tesco is considered on number three largest retailer in the world if we gauge its position in terms of revenue. First store of Tesco started its operation in 1929. Tesco is one of the companies that are listed in London Stock Exchange. Tesco has diversified both geographically and into areas such as retailing of books, clothing, electronics, furniture, finance, telecom and music download (Nancy 2010, 88).

Tesco outdoor and press ads, including a cover wrap on today's Metro, encourage consumers to "Get the lowdown on Big Price Drop" by going to Tesco.com/pricedrop and by downloading a mobile app. Tesco is running a two-week TV campaign, plus out-of home advertising, digital activity, a national press takeover and week-long radio activity. Image-recognition technology appears to be being speedily adopted by brands as a way to move from static messages onto consumers' mobile phones, with Tesco only the latest, but one of the most mainstream adopters. Tesco is slashing prices on 3,000 products as part of its Big Price Drop, but, at the same time, is ending its double Clubcard points promotion.

Tesco's removal of its double Clubcard points will save it £350m, according to Sainsbury's. In response to the Tesco price drop, Asda is running a print campaign promoting its promise that it will remain 10% cheaper than its rivals.

Market Share

The retail and wholesale sector of UK comprises of 23% market share. Today it is the third largest global retailer based on revenue, behind Wal-Mart and French Carrefour, but the second largest based on profit, ahead of Carrefour. It was recorded on 5th January, 2012 that the market capitalization with Tesco contributes to about £24.4 billion. This has made Tesco the 15th largest company listed on London Stock Exchange. For Tesco itself, the market share of Tesco is 30.7% as grocery market leader.

Historical Background

In 1919, Tesco Plc was established by Jack Cohen, by utilizing the bonus which he achieved for his services in the World War I army. Then in 1924, he purchased a tea consignment from the company TE Stock well. He decided to put the initial three alphabets of TE Stock well, and the initials of his name Cohen collectively to name his brand 'TESCO'. In 1929, Cohen opened the very first Tesco store in Edgware, London. Originally, Cohen's formulated the strategy of "Piling it high, selling it cheap". Despite the fact that this strategy assisted Tesco in attracting a great amount of consumers, it also assisted Tesco in branding itself as a store for average class consumers and even earned an image as a low-end ...