TESCO

Marketing Analysis of Tesco

Marketing Analysis of Tesco

Introduction

The company that I have chosen to conduct strategic analysis is Tesco. Tesco PLC (Public, LON: TSCO) is an intercontinental retailer. The business is holds in retail and diversified business activities in the UK, and Tesco is engaged in business with USA, Ireland, Turkey, Korea, China, Japan and rest of the world. Company is providing financial supports and activities, they have personal finance and in telecommunication sector as well. (Tesco.net.com, 2013, p. n.d).

Today Tesco is the 3rd leading global retailer established on revenue, after Wal-Mart and IKEA, but the 2nd biggest based on income, ahead of IKEA. 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"(Tesco.net.com, 2013, p. n.d).

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 store. Furthermore, Tesco had small and poorly equipped stores, as well. The only competitive edge Tesco had been the price. The products that were available at the store seemed to be of ordinary. Due to the rise in the income of customers in Britain, the customers did not want to look for bargains. They were now seeking high quality products. In order to cater these changing demands of the customer, Tesco decided to close down its numerous stores to focus on superstores to provide improved quality.

Discussion

History

In 1919, Jack Cohen established Tesco Plc, by utilising the bonus, which he achieved for his services in the World War I army (Clarke, Bennison and Guy 1994, pp. 11-20). Then in 1924, he purchased a tea consignment from the company TE Stockwell. He decided to put the initial three alphabets of TE Stockwell 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 store.

When Imperial Tobacco Company decided not to acquire Tesco because the company thought that, the deal could damage its reputation, after considering of buying the company, Tesco's brand image further thrashed. Throughout the seventies, numerous analysts recommended the Tesco to transform the name of the company.

Vision

The vision of Tesco focused on the value they ...