Marketing Strategy Tesco - Dissertation Example

TESCO s proved to be a ledng grocery chn n the Unted Kngdom nd lso the bggest grocery of the world. There re bout 2290 stores wth more then 296000 people employed ll over the world nd t hs ttrcted consderble ttenton becuse of ts mbtous overses strtegy nd ts successful on-lne home delvery servce. Relyng on sles of non-food tems nd on nterntonl sles--prtculrly n emergng mrkets--for n mportnt prt of the compny's future expnson, TESCO hs delvered one of the fstest orgnc growth rtes of ny mjor retler n the world.

ts nonfood busness rose by 18 percent n 2000-01, nd ts nterntonl busness, whch begn wth lunch n Hungry n 1994, now ccounts for more thn 40 percent of the group's floor spce. TESCO lso hppens to be the undsputed world leder n nternet grocery sles (www.TESCO.com). ts on-lne home delvery servce s now proftble, TESCO sys, nd t hs struck del n the Unted Sttes wth Sfewy, whch wll use TESCO's system for home-shoppng servce. Underpnnng TESCO's success s excellent mngement nd n obsesson wth opertonl effcency nd productvty gns, whch the compny uses to keep prces low or to mprove servce rther thn to ncrese ts opertng mrgns.

Despte ths mpressve record, TESCO s stll reltvely smll compred wth the lkes of Crrefour nd Wl-Mrt, but t s growng fster. TESCO understands that successful marketing strategy should be based on customers' need, that is why the Mission Statement declared for the Company sounds as it follows: "One of our values is to understand customers better than anyone. We go to great lengths to ask customers what they think, listen to their views, and then act on them. We look both at what customers say and what they do.

This feedback guides the decisions we tale" (www.TESCO.com) Despte ths mpressve record TESCO stll fces number of. Prices in TESCO are formatted in the way that people with various money comings could afford the products of a certain group. The prices for products differentiate in order to satisfy the needs of all groups of people. Consumption of TESCO products is of high rate as long as the brand is very famous among the people of different age and occupation. When choosing grocery people would rather prefer the one that is a cool brand, than a shop "by the corner of a house" that does is bad-known in public and does not provide a wide majority of the discount system or other specific peculiarities that groceries of such a wide scale as TESCO usually have.

"The concept of being distinguished" is part of TESCO's culture. It is a common people's psychology to buy the things with famous brands. In such a way they tend to prove that they are different with others, the reason why you can find many imitations in the night market. TESCO might focus on the branding image and price strategy. The organizational structure of TESCO is quite complicated as the objectives and strategies for the big company should be shaped by the principle "from bottom to the top", meaning that all personnel should be engaged in the performance of the organizational mission.

There are many agents under the headquarters of TESCO, and the agents are the Shop Owner. When creating a new product TESCO send the sample to the agents in each area first, then the agents report the order list to the headquarters after the Shop Owners order product from them.