Tescos Competitive Marketing Strategy Essay Example | Topics and Well Written Essays - 3000 words

Tescos Competitive Marketing Strategy - Essay Example As the discussion highlights  Tesco commenced its trading activities in 1924in UK and as on date, it is having more than 2979 stores in UK, and it earned net revenue of  £43 billion in 2012 with UKs net profit being  £ 2.5 billion in 2012. In UK, Tesco is the leading supermarket and about one-third of UK’s selling space and 66% of total sales all the supermarkets in UK are catered by Tesco. Tesco is having hypermarkets, convenience stores and superstores.From this paper it is clear that  Tesco’s core strategies are as follows: to concentrate more on the UK’s core ; to become the world leading retailer in online   sales and stores; Tesco is a market leader in food items and wants to be stronger in other products also; to concentrate to develop the retail services in all our markets; to develop and own high-value brands.  Tesco is having its operations in the following countries viz. USA, Europe –Turkey, Czech Republic , Poland ,Hungary, Slovakia and Republic of Ireland, Asia – India , China , South Korea , Malaysia and Thailand.  In the last two decades, Tesco had witnessed teething issues in its aggressive marketing plans.   Tesco witnessed a fall in sales due to well structured and impregnated supermarkets in the UK, a lot of impediments in getting plan approval for its large superstores, witnessed cutthroat competition from Safeway, Asda & Sainsbury.  Tesco’ growth and success over the past three decades rest upon its transformation of image and strategy.. Tesco has to change its marketing strategy to sell various kinds of customers namely lower, middle and upper class consumers with an inclusive offer stratagem, and their market strategy is to sell high quality products at a realistic price. In 1998, it introduced the finest range of premium products and was followed by the introduction of Tesco’s Organic range, which was introduced in 2006. Later, it introduced Tesco’s Healthy Living â€Å"range of products and in 2008, it introduced â€Å"Value â€Å"range products to attract the price-conscious clients, mainly to meet the confronts thrown by the recent economic recession. Tesco is able to attain high revenues by developing a vast range of own brands. Tesco has shifted its core business strategy to maximise the customer’s value from that of maximising shareholders’ value. (Aaker & McLaughlin 2010:128). Tesco has evolved a diversification strategy footed upon on four core areas: expanding and innovating in the main UK grocery market and diversify into segments like convinient stores; expanding into non-food businesses like health, clothing , beauty , DVDs , CDs and diversified into developing into its own non-food Value and Finest ranges; diversified into retail service provinces like personal finance for utilities and telecoms by signing joint ventures with local players ; it concentrated into its international expansion, which successfully accounted for one-fourth of its sales in the year 2008-09 . (Aaker & McLaughlin 2010:128). Global Positioning According to Sheth, a company’s marketing strategies should be fine-tuned in the phase of