Research: A critical analysis on the marketing strategy of Tesco Plc.
Introduction
In UK
economy, retail industry is very significant as, according to the statistics of
2010, it has contributed 5% on total GDP & within 2011, 303 billion sales
revenues was made by this sector. This sector is experiencing a significant
growth as in 2011, it experienced about 10% growth totaling 27 billion pound, where
other industries are taking back steps. There are several worlds’ leading
retail companies roaming through the retail market ground of UK. As one of the
largest centers of cultural integration, within UK there are multicultural
customers in the market. The customers in UK are form dissimilar culture and
dissimilar society; they contain different choices & life styles. On the
other hand, the competition within the industry is cutthroat. According to the
statistics of 2010, there are 284490 retail outlets within UK. So, it is a big
challenge for the retailers to formulate the appropriate marketing strategy to
achieve the market share (Retail Economics, 2012).
Background of the study
Tesco is one of the one of the best retail
brand all over the world. It is basically UK based business organization but
over 12 countries all over the globe, they conduct their business. They are
locally and globally successful company. But in the recent years they are
losing their market share of UK where they are market leader in the retail
industry. The research background will expose the result of the investigation
regarding their marketing strategy & strategy formulating policies. The
investigation says that they are losing their market. In the last few months
they lost the 7% of their market share. This trend shows that they are weak in
making their marketing strategy. They require making the sustainable marketing
strategy to retain market share, marketing performance & their market
growth in both the global and local market (Retail Economics, 2012).
Profile of the Company
Purpose of the study
Research Aim and purpose
My research purpose covers the study of the current
marketing strategy of Tesco and the development of the new sustainable
marketing strategy to make sustainable growth and productivity of the market
share as well as profitability. The additional purpose of the study is to
develop a sustainable strategy to cover the global market.
Research aim:
The economic impact of Tesco will be
explored. Sustainable marketing strategy will be
explained. Development of marketing strategy will be
analyzed
Research objectives:
My research objective will be to reveal the
sustainable strategic planning & strategies. My next objective will be to clarify
development planning as well as strategy. At last the service outline will be
developed.
Justification of the study
Retail industry is one of the most significant industries
within UK as it contributes to the UK economy significantly through providing
the daily food required daily necessities & creating large scale employment
opportunity. My study will discover the potentiality of retail industry and it
will disclose the sustain marketing poisoning of the retail products within the
UK local market. The global significance
is included in the study as it is one of the most potential & booming
business sector worldwide. It will
provide a real pictures of the social and market environmental factors which
are linked to the importance of development needs of retail industry within UK
which is very much significant to the UK economy. Not that but also in the
global arena this study will provide significant assistance of that factor. For
the expected growth and profitability Tesco will follow the sustainable
development and sustainable development strategy for the marketing. They will
apply this sustainable strategy to formulate both the local & international
marketing strategic planning.
Importance of the
study
My research is very important for the Tesco as this study will disclose
the current market situation of Tesco. After that this will express the current
marketing strategies of the organization. The recent reason of loss of market
share within the local market will investigate. This study will investigate the industrial
influence of Tesco. It will specify the development needs of the organization.
It will suggest the sustainable marketing strategy development of the
organization. For developing the
sustainable marketing strategy for the sustainable growth within UK local
market and the global market, the necessary initiatives will be identified and
presented. Which governmental and environmental factors influence the retail
market will be identified. This will help to formulate the trends of these
factors. This will help to contribute more in the UK economy. This will help to
develop the sustainable marketing strategy (Hannah, 2000).
Literature Review
In the literature review, the recent researches which are
related to the recent study will be described in these sections of research
done by various authors. I will describe different marketing related
theoretical descriptions
Task-1
1.1 Probable specifications formulation and recording
My research background
will disclose the strategic way which is used by Tesco to formulate their
strategies to go through the market in UK and internationally. To support the
current losing situation of Tesco within UK market and the global expansion of
market through providing best services, products, this research will provide
the way to develop the a sustainable marketing strategy of Tesco. Tesco is one
of the best global retail companies, it wants to retain the market growth
within UK and it wants to keep the worldwide growth. This research background
shows the needs of the development of the current strategy of Tesco to develop
the sustainable marketing strategy to achieve the local and the international
objectives of Tesco.
1.2 To identify the factors that contributes to the process of
research project selection
Research
project selection is systematic processes which include different factors to be
determined. These factors like
following:
Goals
of Research: The research must have the specific goals of it
which will show the effectiveness of the research for the specific organization
to which it is being done. The main goal for my study is to develop the sustainable
marketing strategy to support the lickings of the current marketing strategy of
Tesco. The specific date for the project
is absent and the research will serve the specific delivery system. To establish
& accomplish the goal they will design the different strategy or system.
Collection
of Data: in the research, the research data collection is
very much important. The more the data will be accurate the results of the more
the result of the research will be perfect. To make the proper data collection
the researchers usually use two types of data collection methods like direct
and indirect. In direct data collection the researcher will go to the sour4ces
of data physically to collect the data which may be very costly but the data
which will be collected will be more accurate. In the indirect data collection
method the researcher will not go to the different data sources physically but
they will collect data from several sources which are already published within
printed and other form.
In this
section the researcher will find out the different factors & criteria
related to the research topic which will help the research to make the standard
solution regarding to the problem based on which the research is being
conducted. This will provide the expected finding to fill the goals.
1.3 Undertake a critical review of key references
There several researches are done in retail industry
before my work which is very much significant for my research. The review of
some of them is given in following:
According to Franklin, (2005), in UK as well as all over the
world the retail industry is one of the most significant sectors. Not only that
but also he said that the most booming sector within UK at present is the
retail industry which successfully avoided the recession. The he shown that
fast food is booming business in the UK
In accordance with Forsyth, (2012), the retail industry
highly influences the UK economy as it is contributing a significant amount to
the total GDP of the country.
Consistence with (2005), In UK, the retail sector is
creating a significant amount of employment which a significant influence to
the development of the UK economy. For the local and global market it is one of
the most important sectors to provide a sustainable economic growth.
1.4 Produce a research project specification
This research is on the basis of formulation of the sustainable
marketing strategy for the leading retail brand in UK for making a solution for
the recent market share losing situation. This sector has a great impact within
the improvement of UK economy. This study will identify different societal and
environmental factors regarding to the market which are very important for the
formulation of the sustainable market strategy for the Tesco. It is equally
important for the local and global market of the organization. Tesco will apply
it for gaining a sustainable market growth for the organization.
1.5 Provide
an appropriate plan and procedures for the agreed research specification
In accordance
with Monosoff, (2007), in favor of every manufactured goods & on behalf of
every organization marketing strategy is most significant thing. It is a
procedure within which offer to an organization how toward discover novel
market plus set a variety of activities is marketing strategy. Within
competitive world these are used by business toward do business well. In the
marketing there are few stages to formulate the marketing strategies
like following:
Sales
Plan Creating: The first
job for creating marketing strategy is to accurate identification of the best
suited market for organization: That’s why for formulating a marketing strategy
Tesco will find out a suitable market & it will make some study to confirm
the suitability for the product of Tesco within this market. To formulate the
sustainable marketing strategy the organization will do some combinations like
following:
ü Goals
for Sales: As the first state the Tesco will formulate the
sales target for the organizational revitalization through the sustainable
strategy. For formulating the sales target the organization for the first time
will analyze the current state of their selling. They will fix that to be in
the growth and in the leading position in the market where they will be. Then
they will fix that their expected selling units within a fixed time period.
ü Activities
for Selling: At his stag
Tesco will identify the specific activities regarding to the sales target which
will take the Tesco within the prospected target to sales. These activities
will be in an arranged form to support the sales goals of the organization
within UK.
ü Target
customers: At this
stage the organization will fix the target market where they intend to sale
their product to have a sustainable loyalty of the target customer.
ü
Timelines: Now Tesco
will fix the time scale to gain the target for the sales. They will strictly
follow the time scale to cover the planning.
As last step they will analysis the effectiveness of
the organizational new strategic marketing strategy. The review will be done
here. According to the feedback and the review the organization will find out
the lop wholes of the strategic system of marketing to check the backdrops.
Build a
sustainable Market: Now
Tesco will go for the formulation of the sustainable market for the
organization. To make a sustainable market they will provide the extensive
services for the customers. This will create a new impact for the organization
among the customers. They may provide improved delivery quality for the
customer which makes them differentiated from the immediate competitors like
Sunbury, ALDI etc. Not only will that Tesco formulate additional package sales
service for the customers to chess the discounting strategies of the
competitors. They will consider making the target market the global economic
poor conditions. The customers are
moving toward to spend less as their income has lessened. For that they will
make a new dimension of low cost leadership strategy for their marketing to
build a new stable segment of customers. They will use an improved quality of
services to serve the customers. For that reason they will enhance their
product range. Not only that but also they will use the best technologies and
the systems to support the customers to make them highly loyal to the
organization through the superior services. The will enhance their discounting
packages and direct selling through the home delivery services and closer
extended placement of the stores of the organization.
Develop
new markets: Tesco
will not only enhance the sustainability of the current market but also they
will create the new market for their products. They will make different
strategies to capture the untouched market segments within UK as well as the
global arena. UK is a red ocean for the Tesco as there are different competitors
for the organization. To create new market they will consider the cutthroat
completion and the economic segments of the UK demographics. To make the global
expansion they will follow the blue ocean strategy for the formulation of their
marketing strategy. Make the new market
they will do following activities:
ü Proper consumer recognition
ü Preparation for entering in the new
market and market segment
ü Clearly specify the target market for
the prospected steps.
ü Patient will be under consideratio
Task-2
2.1 Match resources efficiently to the research question or
hypothesis
A number of explanations will be shown
by these studies. Trough direct meeting with the populace, the researcher has
gathered. When the questions were thrown to the people the reactions of the
people were in a mixed. Some answer were yes, no & some
were no comments.
2.2 Undertake the proposed research investigation in accordance
with het agreed specification and procedures
According to Ashley, (1987), the most important factor for
the research paper is to receive the prospected investigation regarding the
specifications and the procedures. It will help to device a sustainable
improvement policy or strategy for the Tesco locally and globally which can provide
the Tesco the best way to be the success leader in the retain market. These
researches will not only make benefitted the Tesco but also it will devise a
sustainable development and growth opportunity for the retail market for UK
which will contribute significantly on the economic growth of this
country. This will devise a sustainable
strategic specification and the procedures for Tesco which will enable the
organization to reach in their targeted goals and productivity.
2.3 Record and collect relevant data where appropriate
Task-3
3.1 Use appropriate research evaluation techniques
In
accordance with Entrepreneurs, (2012), there are different techniques to
evaluate the research. For evaluation of my study on Tesco, I have first
time identified the point where
to start. Here I have studied the current strategic marketing situation of
Tesco & then I tried to develop the suggestion for the development of a
sustainable marketing strategy for Tesco. Then I have evaluated the different
approaches which I used. Then I have evaluated questions. To collect data I
have collected the data through the qualitative methods of data collection in
numeric reform, then analyzed it, then developed findings & documented plus
presented them in graphical way. Then I
have considered the budget of the research.
3.2 Interpret and analyze the results in terms of the original
research speciation
According to
genuine research specification, the extracted results are like subsequent. To
have the higher customers’ satisfaction, Tesco will make moderate extension and
manipulation of some product line. the current service procedure within the
store of Tesco are not sufficient, that’s why it will be developed to provide
superior services to the customers with a strong emphasize. The market positioning of the company will be
in a high concentration for the reformation.
3.3 Make recommendations and justify areas for further
Task-4
4.1 To use an agreed format and appropriate media to present the
outcomes of the research to an audiences
Outcomes of
the research based on the Tesco are marketing strategy:
New-fangled market strategy will be devised New sales goal introduction Formulating new sales objective Formulating strategies to identify the
accurate customer segments Formulating the development of the overall
marketing strategy Exploring the new market for Tesco locally
and globally.
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Retail Economics,
(2012). The
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Bloomberg Businessweek, (2013).Tesco plc (TSCO)
Details. Available at: http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=TSCO:LN (accessed 25 may, 2013)
3)
Ashley,
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(Accessed on 14 May 2013)
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