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Marketing Strategies For Growth Overseas At Tesco - Essay Example
Author : corrineroob
Finance & Accounting
Pages 8 (2008 words)
This paper talks that marketing strategies are organisation-wide programmes that help to identify a specific target market and then developing processes and systems to satisfy consumers in the chosen market through focus on elements of the marketing mix…
This paper stresses that since the environment where Tesco operates internationally is saturated with grocer competition, the business has developed effective strategies to try to avoid price promotions common with other supermarkets. Its value agenda provides the business with considerable brand loyalty and also brand equity that can be extended to supplementary service provision. It is uniquely positioned through its e-commerce model as a value leader and through its flexibility in procurement to fit local tastes even though these costs are higher for adjusting the supply chain methodology in the home country. However, the revenue gains achieved by Tesco, which is the number one supermarket according to comparative sales, offset these costs associated with the marketing mix adjustments. Tesco may not be able to maintain its unique value-orientation against competition with the new entrants like Aldi that carry discounted goods that consumers perceive as top quality. Partnerships with local producers to create private label Tesco products still fulfils its corporate social responsibility objectives in its marketing strategy for relationship and value-building, but can enhance its product selection for private label introduction or extension. When it is not only pricing, but also value associated in consumer markets with private label brands, it has long-term risk potential for Tesco’s unique differentiation and positioning related to value provision.
This report makes a conclusion that corporate social responsibility, too, stays away from pricing promotion and price emphasis in order to remain true to its value-conscious agenda and positioning efforts. According to results of a large sample group questionnaire, 71 percent of those targeted believed that Tesco has reasonable prices. ...