MOTIVATION The Marketing Strategy of an Organization and its Effectiveness: TESCO Research Report



Table of Contents

Part 14

Choice of the Organization4

Fig 1: Product & service5

Objective of the Study5

Significance of the Research Study6

Rationale for the Study6

Research Questions7

Part 28

Methodology8

Research Design8

Sources of Information9

Gathering and Using Internet Facilitating the Qualitative Research9

Ethical Concerns11

Limitations of the Study11

Explanation of the Business Techniques Used and their Limitations12

Part 314

Description of the Results14

Strategy Multi Channel Distributor Tesco15

Evaluation of the Results16

The Analysis Models16

The STP Model16

1.Segmentation16

2.Targeting16

3.Positioning17

The 4 Ps17

1.Product17

2.Pricing17

3.Promotion18

4.Place19

McKinsey's 7 S19

1.Strategy19

2.Structure19

3.Skills20

4.Shared Values20

5.Systems20

6.Style20

7.Staff20

Generic Strategies of Tesco20

Corporate Culture and Leadership21

Tesco's Performance With respect to Marketing Strategy22

Industry Analysis: Pestle Framework25

Political Factors25

Economic Factors25

Social/Cultural Factors26

Technological Factors26

Environmental Factors26

Industry Analysis: Porter's Five Forces27

Threat of New Entrants27

Bargaining Power of Suppliers27

Bargaining Power of Customers27

Threat of Substitutes28

Bargaining Power of Competitors28

Internal analysis28

Strengths28

Opportunities29

Weaknesses29

Threats29

Competitors30

Social Media Marketing Strategy30

Market Penetration Strategies30

Online Grocery Strategy31

Conclusion about the Research Findings31

Skills and Learning Statement33

Learning from the Meetings with the Project Mentor33

Answering the Research Questions34

Demonstration of the Interpersonal and Communication Skills during the Project Work36

Support to the Accountancy Studies and Current Employment Role38

References40

Appendices43

Key Figures43

The Marketing Strategy of an Organization and its Effectiveness: TESCO Research Report

Part 1

Choice of the Organization

The company that I have chosen to conduct strategic analysis is Tesco. Services of retail channels include online shopping company, tesco.com and the Tesco Direct, Telecommunications, Tesco Personal Finance (TPF), and business consumer research (Terry, Phillips, 2008, 89-102). I have chosen this company because it has gone through many changes in the context of its marketing strategy which has remained successful. The research aims to find out the reasons behind the company's success keeping analyzing its marketing strategy and effectiveness. The first Tesco store was opened in 1929 in the United Kingdom by Jack Cohen, who was inspired by the United States' system of self-service vending, and decided to open himself a store with that concept in St.Albans in 1947 (Aaker, Joachimsthaler, 2009, 137-144) . The company started its listing on the London Stock Exchange. The company grew in size during the following decades until in 1977 to have its own shopping center. It was the year 1995 that brought about an introduction of the first loyalty card for customers of Tesco and two years later, it started the sale of fuels at service stations by the name of Tesco (Aaker, Joachimsthaler, 2009, 137-144). The company is also active as a telephone operator, and as a result of a joint venture with the Royal Bank of Scotland has been active in the financial field.

Through data mining, it recognized the key customers who did their major shopping at its competitor's stores, and purchased only few items from Tesco. Based on the data, Tesco started announcing gift vouchers for those customers living near Sainsbury, and this technique brought them more clientele. Tesco made efficient use of online marketing tools along with sales promotions and advertisements (Agrawal, 2004, 26-48). 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.

Fig 1: Product & service

Products

Services

Brands

Food

General merchandise

Electrical goods

Clothing

Household goods

Home furnishings

Petrol

Online sale of products

Telecommunication services

Financial services

Pharmacy ...