TESCO

TESCO Research Report



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 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 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 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 services

Broadband internet services

Cherokee

F&F

Healthy Living

Value

Tesco standard

Finest Tesco

Objective of the Study

The aims and objectives of the research study are to:

Highlight the factors that play an important role in the formulation of the successful operations of the companies

Measure the performance of Tesco by taking into account different analysis

Explain the marketing trends of the Tesco in the past years

Evaluate the firm's position by taking into account the internal and external analysis with the PESTEL analysis of the Tesco

Analyse marketing strategies of the Tesco that it has adopted for its business operations.

Examine the strategy that made the Tesco's position better in the world market

Significance of the Research Study

The research study is based on assessing the marketing strategy of the company that makes it attain better position in the world market. As the retail sector is an important sector in the world that is presenting valuable services to the customer all over the world. It is important to analyze the factor that affect the performance of the firms operating in this sector ...