Tactics, Actions, and Control: Tesco - Essay Example

?Marketing Planning 2 Table of Contents About Tesco 3 Tactics: Tesco 3 Actions: Tesco 7 Control: Tesco 11 References 13 Appendix 15 Scheduling Activities 15 About Tesco Tesco is regarded as one of the world’s leading retailers which began its journey in the year 1919 and was created by Jack Cohen. The organisation operates its business functions in 14 nations and engages more than 5, 00,000 employees within the entire organisation for the purpose of serving its large customer base with utmost satisfaction in the international context. The significant business values of Tesco include deep understanding of the customer requirements, acting sensibly towards the community and performing the business work as a team (Tesco, 2012). It was in the year 1924 that Tesco Stores Limited ultimately turned out to be a private limited based organisation (Tesco, 2012). Tesco generally executes its broad business functions and offers numerous high quality brands or products to its worldwide customers in order to attain lifetime loyalty from the customers by competing upon the price, range, innovation and quality of the products. Tactics: Tesco On the basis of situational analysis of Tesco in terms of macro as well as micro business environmental factors, there lie certain important objectives of the organisation that would assist the organisation directing it towards attaining a competitive position and sustainability as well in future. The major goals of Tesco are to enlarge their sales, mitigating the consequences of Credit Crunch in the economy of UK in the short run. In its long run performances, the organisation tends to grow its market share over its chief competitors by offering greater money value to its customers through the availability of products at a cheaper rate and thus attaining a certain degree of competitive advantage (Scribd Inc., 2012). In order to attain the above mentioned objectives, Tesco would have to implement certain significant tactics that include the broad conception of marketing mix which fundamentally comprises the 7 P’s, market segmentation, positioning as well as targeting tactics. Furthermore, Tesco should majorly focus upon the rise in its industrial network portfolio along with universal market expansion in future. In this context, Tesco can initiate the tactic of offering cheaper products for the customers along with possessing powerful brand image, especially to cope up with the fierce competition in the grocery business market in UK. These particular tactics would assist Tesco to accomplish its objectives by a significant level concerning with the fact that the reputation of the organisation is constantly growing. Apart from the above mentioned tactics, Tesco could follow certain other major plans that include the conception of new product innovation along with the idea of Total Quality Management (TQM) (Scribd Inc., 2012). Additionally, there lies certain other crucial dimensions of tactics through which Tesco could attain its expected business goals by a considerable level. The different dimensions include the consciousness of Tesco regarding the various law set of laws that applies in its particular business operating location along with complying with them in an effective manner and mitigating the issue of Credit Crunch that affected the performance of Tesco in terms of sales. In this regard, it has been observed that the economy of UK has been experiencing a challenging situation that resulted towards the decline of the economy due to the emergence of significant issues related to Credit Crunch. Such an issue, in due course, affected the disposable earnings of the individuals in the country which indicated that the people or the customers largely focussed upon the idea of saving their valuable money rather than making expenditures for the consumption of products apart from their basic needs. Hence, the purchasing capacity of the customers was observed to slacken in that particular area. In order to mitigate the consequences led by weakening customer purchase, Tesco applied the strategy to offer aggressive discounts to its customers which ultimately hampered the sales revenue of the company (Scribd Inc., 2012). Hence, to diminish this significant issue, Tesco can execute the tactic of focusing on its other markets with better customer reaction until the macro environment of UK is stable again and thus focus on mitigating the market risk of facing inhibiting customer purchases and subsequently avoid slackening sales revenue. The other dimension tactic that can be used by Tesco is regarding establishing technological advancements that would ultimately influence its business market environment. It has been recognised that the organisation introduced online shopping mode of business operation through which the organisation attained significant opportunities to facilitate its sales. The business environment of Tesco has been reshaped by the introduction of online shopping through rapid transformations in the technical factors (Scribd Inc., 2012). Contextually, Tesco could largely focus upon this major technical factor of online shopping through the medium of internet in order to attract its large base of customers. Besides, Tesco should remain quite aware concerning with the fact that there lies the presence of huge substitute products, especially in the grocery market in UK. In this regard, Tesco should focus upon the tactic of product or price differentiation factor that might assist the organisation to cope up with the challenges with regards to the availability of substitute products. In terms of market competition, it has further been observed that the industry is majorly occupied by the presence of market competitors for Tesco that include ASDA, Sainsbury’s and Morrison among others. Tesco and its main competitors generally compete amid themselves based upon the product, price, and quality along with the location of the organisation. In this context, the organisation can initiate the following actions on the basis of 7 P’s (Scribd Inc., 2012). In order to preserve considerable market share, Tesco can use the tactic of strongly negotiating with its suppliers regarding the price of the products by keeping the production costs low. This particular execution of tactic might ultimately help the organisation to attain significant competition in the competitive business market (Scribd Inc., 2012). Thus, it can be stated that the above discussed crucial business tactics that can be applied by Tesco is likely to be identified as concentrated to maintain long-term augmentation particularly in the retailing industry along with raising the values of its worldwide customers. The other noteworthy business tactics that were focussed by Tesco are growing substantially and competitively into its core businesses in different operating regions and to be recognised as an exceptional international retailer in the world. Moreover, the organisation also emphasised upon building its working team more effectively to generate superior value towards the customers and to grow at a sustainable pace in the retail service sectors. The primary visions of Tesco concentrate to remain highly committed towards its shareholders, staffs along with the customers, to attain a continuous rate of sustainable growth and transform into a modern and innovative business organisation (Tesco, 2012). Actions: Tesco From the perspective of product tactics, Tesco should offer value added fair trade brands towards the customers with the intention of maximising its large base of customer levels. The offering of the value added fair trade products would be made by initiating the effective business strategy of product innovation along with focussing upon the conception of TQM (Scribd Inc, 2012). In the similar context, in terms of price tactics, Tesco should deliver the fair trade brands or products at a cheaper rate to the customers, as compared with its other major competitors. It is quite necessary for the organisation to offer the products, especially at a value added cost and thus focus on retaining its worldwide customers. With this concern, the organisation can adopt the market penetration strategy through which Tesco can largely attract customers and can also rapidly penetrate into the international business market by setting cheaper price of the products offered in that particular region (Scribd Inc, 2012). In regard towards the execution of place tactics, Tesco can place its value added fair trade products mainly in the semi-urban marketplaces for convenient location of the organisation owing to the continuously rising consumer demand for such products. This particular facet would be quite beneficial for Tesco as the fair trade brands or products are gaining an increasing popularity and acceptance towards the customers (Scribd Inc., 2012). In relation to promotional tactics, Tesco should implement certain aggressive promotional policies taking into account the advantages offered by broadcast channels, print media and online media. Furthermore, the organisation can generate attractive logos or slogans especially towards the fair trade related products in order to boost its sales in near future along with attracting its customer base levels (Scribd Inc., 2012). With regards to people related tactics, Tesco should employ well capable and experienced people in order to offer the fair trade products to the customers more effectively. Besides, the organisation can also provide satisfactory training to its workforce with the motive of making them much more competent in the retailing industry. In terms of process related tactics, Tesco should focus especially upon its business to consumer (B2C) marketing process for marketing the products more resourcefully and successfully. Moreover, Tesco should also execute certain innovative technologies for the deliverance of the fair trade brands and services that can be easily available for the customers. Similarly, with concern to physical evidence tactics, Tesco should enhance the factor of easy availability of the fair trade products towards the customers by placing them into convenient locations that include the supermarkets, departmental retailing stores and shopping malls located in its different operating regions (Scribd Inc, 2012). In terms of the strategies based on market segmentation, Tesco should focus upon its mass, local along with niche business markets to boost the sales of its different variety of products by increasing the satisfaction of the customers in a proficient manner. Moreover, it is highly important for Tesco to possess deeper understanding of the likings, tastes, attitudes and behaviours of their customers before focusing upon the factor of market segmentation. With reference to the positioning business strategies, Tesco should place its fair trade brands or products in convenient locations in order to comply with the rising needs of the customers towards the fair trade products. From a generalised point of view, the aspect of market positioning is often regarded as one of the vital business strategies that play a decisive role in the marketing of products of a business organisation. It has further been recognised that the fair trade products usually attract the young group of people as well as the middle aged people of UK by a major extent. Hence, Tesco should opt for certain innovative modes with the intention of attracting the customers and also to increase its greater customer base. Furthermore, in relation to targeting, Tesco should largely focus upon those customers who possess high preferences, especially towards the fair trade brands or products like the children, young generation people and middle aged people. Moreover, the organisation should also deeply analyse the likings and the tastes of the customers towards the fair trade brands or products (Scribd Inc., 2012). In relation to the model propounded by Ansoff Matrix, the aspect of product innovation is one of the crucial strategies for any business organisation such as Tesco for new product development. The notion of product innovation in relation to new product development procedure fundamentally involves the design, conceptualisation, development and commercialisation of the new brands or products that deliver better solutions towards the requirement of the customers, society and stakeholders. The conception of product innovation is viewed as an indispensable strategic outlook that generates competitive benefits in this powerful world of business market environment. The significant issues that include globalisation, macro business environment related factors and unstable business market circumstances further shortened the life cycle of the products and thus created a larger demand of superior, cheaper, safer and most proficient products. Hence, the attempt towards product innovation tends to develop new ideas and solutions that impose major benefits towards the customers as well as the stakeholders of a business organisation (Rainey, 2005). In relation to the aspect of product innovation, Tesco should largely be emphasised upon offering quality products to its customers. However, the company should render significant emphasise towards the price of the products with regards to the purchasing power of the customers in semi-urban places (Scribd Inc, 2012). Apart from the noteworthy strategies of product innovation, the conception of TQM also plays an influential role in the procedure of new product development. TQM is generally considered as business management strategy that possesses the objective of generating awareness regarding the product quality towards the customers. Additionally, the term TQM also acts as an umbrella in which every individual within the entire business organisation can strive as well as generate maximum customer satisfaction. The several objectives of TQM include complying with the requirement of the customers, enhancing the working teams of the organisation, focussing upon the business procedure enhancement plans and decreasing service or product related expenditures (Scribd, Inc., 2012). The conception of TQM represents elemental transformation in quality treatment towards the process of new product development. The quality of the products is described as well as judged by the customers under the aspect of TQM. Thus, TQM acknowledges a customer-driven industrialisation within the economy. It mainly emphasises upon the constant procedural enhancement of the products to attain high quality services or brands. The business environment strategy of TQM not only intends to focus upon the development of the products but also greatly emphasises upon “total quality” throughout the organisational process (Li & et. al., 2000). In lieu of managing successfully the procedure of new product development strategy, the management of Tesco should have to play a decisive role in initiating the idea of strategic management. The management should also make effective decisions in relation to the aspect of human resources, organisational culture and implementation of the strategies that include product innovation and TQM among others (Predic & Stefanovic, 1999). Control: Tesco The conception of marketing control is typically described as a procedure of assessing marketing performance of business along with executing a broad variety of corrective activities. The main objectives of marketing control are setting definite marketing objectives and also initiating corrective actions to attain those (Sahaf, 2008). Hence, in relation towards strategic management procedure of Tesco on the basis of control and evaluation, a definite timeline should be maintained for the actualisation of the different marketing objectives that was laid by Tesco ensuring that a particular business message is delivered to the right person at the right time (Scribd Inc, 2012). In this context, Tesco should effectively control its overall business planning objectives by evaluating and implementing the above mentioned strategies or tactics that would ultimately assist the organisation to attain significant competitive position and to sustain in the competitive world of financial business market. For the purpose of accomplishing the above discussed expected business marketing objectives, the estimated budget for Tesco may be amounted to US$15,000. Along with this estimated marketing budget, Tesco should also focus upon the timeline factor in order to complete the planning and execution of the determined strategies in a defined time period. Thus, it can be stated that Tesco should make effective control upon the tactics as well as the actions that the organisation intends to apply with the purpose of fulfilling its pre-determined objectives. However, it is in this context that Tesco should also take into concern its strengths and weaknesses while planning its tactics and actions which will reward it with a better control on the planned and applied strategies. For instance, its strength of strong economic performance in the past and virtuous brand image in the international market shall assist it to overcome the hurdles raised due to the economic occurrence of Credit Crunch. Moreover, owing to its lacuna in geographical locations, the action plan to expand in semi-urban regions shall also provide the company with significant competitive advantages. It is worth mentioning that the company needs to emphasise largely on research and pre-analysis of its adopted strategies to have a better control of its tactics and actions and thus gain higher efficiency in its long run performances. References Li, E. Y. & et. al., 2000. Total Quality Management In Software Development Process. The Journal of Quality Assurance Institute, Vol. 14, No. 1, pp.4-6 & 35-41. Predic, B. & Stefanovic, S., 1999. Costs Management for a Profitable New Product Development. Economics and Organization, Vol. 1, No. 7, pp.9-16. Rainey, D., 2005. Preface. Product Innovation. [Online] Available at: http://bilder.buecher.de/zusatz/14/14726/14726794_vorw_1.pdf [Accessed May 10, 2012]. Sahaf, M. A., 2008. Strategic Marketing: Making Decisions for Strategic Advantage. PHI Learning Pvt. Ltd. Scribd Inc., 2012. PESTEL Analysis. Doc. [Online] Available at: http://www.scribd.com/doc/54331762/TESCO-SWOT [Accessed May 09, 2012]. Scribd Inc., 2012. Detailed Definition. Techno-Structural Interventions: Total Quality Management. [Online] Available at: http://www.scribd.com/doc/19254658/Total-Quality-Management [Accessed May 10, 2012]. Scribd Inc., 2012. Marketing Integration Mix. Marketing Plan for Tesco Plc. [Online] Available at: http://www.scribd.com/yeknahs/d/39782812-Marketing-Plan-for-Tesco [Accessed May 10, 2012]. Tesco, 2012. Our Values. About Us. [Online] Available at: http://www.tescoplc.com/index.asp?pageid=10 [Accessed May 09, 2012]. Tesco, 2012. Our Vision. About Us. [Online] Available at: http://www.tescoplc.com/index.asp?pageid=13 [Accessed May 09, 2012]. Tesco, 2012. Our History. About Us. [Online] Available at: http://www.tescoplc.com/index.asp?pageid=11 [Accessed May 10, 2012]. Appendix Scheduling Activities Read More