TESCO

Tesco: Account and Finance

Table of Contents

Tesco: Account And Finance3

Introduction3

The microenvironment of Tesco3

Macroenvironment4

Market Segmentation5

Consumer's behavior5

Tesco's distribution channels6

Tesco's pricing strategies8

Factors affecting price strategies8

Below are the pricing strategies of Tesco:8

Promotional Tools9

Successful promotional tools, direct marketing and PR tools implemented by Tesco:9

Direct marketing/ PR10

Tesco versus Sainsbury Financials11

Conclusion12

References14

Tesco: Account And Finance

Introduction

As the world's economy tries to climb its way out of the worst recession to hit the global economy in decades, businesses across the globe have felt the harsh reality of new levels of competition, price wars, limited opportunities and a shortage of money. During these difficult times business marketing becomes even more important as budget cuts and difficult decisions need to be addressed with proactive thoughts. Along with these difficult times the urgency among the marketing world due to online businesses and the internet has ushered a whole new era in business.

The microenvironment of Tesco

Suppliers: Are firms and individuals that provide the resources needed for a company to produce its goods and services. Marketing manager must control supply availability as supply shortages or time delays might damage short term sales.

Competitors: Marketing managers must try to gain strategic advantage over its competitors by positioning their offerings strongly against competitor's offerings to keep their market share. Asda Group, Alidi, Lidl, Sainsbury, and William Morrison are all fighting to gain improved market share.

Consumers: Tesco must study its consumer markets closely as consumer's needs and wants can change quickly.

Publics: The companies marketing environment also includes various publics which can impact on the organizations ability to achieve its goals.

Financial Publics: Banks, Stockholders can affect the company's ability to obtain funds

Media Publics: Newspapers, tv, radio and magazines can influence public opinion.

Public groups: A company's marketing decisions could be questioned by environmental groups, community and other pressure groups.

The Company: Top management within Tesco sets the companies objectives, missions, and strategies. It is the job of the market manger to ensure all the decisions he/she makes are consistent with the plan of the top management.

Macroenvironment

Macroenvironment is the “Major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies.

Demographic forces: Demography is a study of human populations regarding size, location, age, gender, occupation and density. Demographic forces are of vital importance to every marketer including Tesco's marketing team who can study demography forces and use this information to analyze the market.

Economic Forces: The economic environment consists of factors that affect the consumer buying power and spending patterns. Marketers need to be aware of economic trends.

Consumer spending patterns: The chief economic variables are income, cost of living, interest rates and both saving and borrowing pattern which have a large impact on the marketplace.

Income distribution/Purchasing power: China and India and other Asians countries are currently enjoying great economic expansion while Europe and the US is currently been hit with one of the worst recessions of living memory.

Market Segmentation

The process of “dividing a total market into subgroups of consumers, or potential consumers, who are similar in some way” ...