Benefits of a Retailer Operating on Multiple Platforms - Essay Example

? Benefits of a Retailer Operating On Multiple Platforms Table of Contents Table of Contents 2 Introduction 3 Theory of Social Mediaas a multiple format used by retailers 4 Tesco in UK 5 Tesco Bank 5 Blackberry in UK 6 Comparing and Contrasting Tesco, Blackberry and Sainsbury Marketing Strategies 7 Recommendations 8 Conclusion 8 Bibliography 10 Introduction Multiple formats refer to applications developed by different industry sectors, which help retailers in selling their products. Multiple formats normally range from online applications, such as Facebook, Twitter, online purchasing via credit cards and so on. The major intention of using such ethical formats is normally to attract customers. Companies, such as Blackberry, Sainsbury’s and Tesco, use multiple formats in order to attract more customers. Sainsbury’s, for example, has introduced a credit card that enables a customer to earn loyalty points whenever they shop at the supermarket. Tesco, on the other hand, is working on an application on Facebook, which will enable customers to gain double Club Card points by sharing or liking the facts about the products they buy from the supermarket. The Blackberry Company, on the other hand, uses TV and Billboards to launch new products. It also uses sales promotions to obtain advance payments in the short term sales (Chadwick, Doherty, Anastasakis, 2006). The Benefits of Using Multiple Formats to a Retailer The use of multiple formats has proved to be of immense importance to retailers because multiple formats normally offer unique opportunities for retailers to use services such as geo-location to market their products. This is applicable when using formats like social media. Social media, such as Facebook and Twitter, used by Tesco tend to be hyper social platforms (Varley, 2005). Multiple formats also tend to benefit organizations in that; some of the formats used by retailers tend to influence the consumers. For example, in that case of Sainsbury’s, where a consumer uses their credit card to shop, and eventually earns points. The use of advertisements by companies such as Tesco is also a format that can be used by a retailer to attract more customers and obtain more profits. For instance, Tesco has normally used flyers and websites to increase awareness among customers in the UK (Varley, 2005). Theory of Social Media as a multiple format used by retailers Berman and Evans (2004) discuss ways in which social media assists as a multiple format when it comes to skills that help retail marketing. Ellis-Chadwick, Doherty and Anastasakis (2006) reveal that social media helps its users view themselves in other ways by using their fresh data and presenting it in a manner that is planned. Using social media leads to increased consumer engagement and may result in quick sales in case a company has offers for consumers at a given time. Using such social media, retailers are in a position to create brand awareness, therefore, attracting more customers. The use of social media results in increased product awareness among consumers. Provision of consumers with information, such as price of products and location of the stores, where such products can be found, increases sales for the retailers (Healey and Baker, 1997). Porter’s five forces theory Porter’s five forces theory is a format that helps retailers to understand their positions in the competitive market. The retailers can normally use competition to evaluate their weaknesses. It enhances retailers with the ability to evaluate whether the goods and services offered are profitable. Retailers may use this format to evaluate their buyer power, the capabilities of their competitors, their supplier power, the threats accompanied by substitution, and the threats they may face in case they make a new entry into the market (Porter, 2008). An examination of the Mintel report reveals that; if a company manages to analyze the other companies in the market, the company can be in a position to track its competitors, and this leads to the identity of new entry points. The report also reveals that innovative consumer research, offers the company a chance to tailor its services to meet consumer demand, hence boosting its profits and the market share. Benefits of using loyalty cards to retailers A loyalty card is a device used by retailers to store points for customers whenever they purchase goods. The points can then be renewed by the customers in exchange for goods. The loyalty cards normally benefit retailers in that; they help retailers attract new customers, as they retain their customers. They also enhance a valuable marketing opportunity, and they help retailers in retaining customers. The loyalty card also tends to encourage frequent purchases by the customers hence increasing profits for the business. Loyalty cards normally enhance business growth by reducing costs such as advertisement cost (McGoldrick, 2002). Tesco in UK Tesco has employed the use of multiple formats through the introduction of strategies such as; the use of coupons and vouchers. This has been viewed as a promotional activity for the supermarket, which gives the consumers offers on some of the products sold in the supermarket (Tesco, 2006). Tesco Bank In United Kingdom Tesco offers monetary services through Tesco Bank. The services provided by the bank include provision of lending and credit facilities such as credit cards, insurance and savings accounts. The advertisements of Tesco bank are normally done using flyers available in Tesco stores or their website. The use of flyers and the website, to enhance awareness to the consumers, has resulted to increased profits for the bank. This move has seen the financial sector in Tesco diversify, therefore, providing opportunities to enhance the expansion of the retailing sector (Tesco, 2006). Tesco bank has managed to generate total revenue of ?1 billion this year.  Tesco has started working on an application on Facebook, which will enable customers to gain double Club card points, by sharing or liking the facts about the products they buy from the supermarket. The use of the club card is likely to result to increased motivation among the consumers, therefore, resulting to increased sales. Blackberry in UK Blackberry Company in UK uses the following ways to market their products: TV and Billboards, this is exceedingly common in the black berry company especially when they launch a new product. The blackberry company makes use of sales promotions, to obtain advance payments in the short term sales. The company has also provided unique offers, price promotions at the points of sale and loyalty cards to attract customers (O’Reilly, 2012). The company also uses the internet to market their products. This could be the firm advertising them via Facebook. Online Shops are common in the UK where they sell Blackberry via online services. This ensures they reach out to customers in other countries and hence attract more customers (O’Reilly, 2012). Comparing and Contrasting Tesco, Blackberry and Sainsbury Marketing Strategies A comparison of the marketing strategies of Tesco, Sainsbury, and the Blackberry company reveals that the best multiple format that can be used by retailers is social media. This is because using social media tends to increase consumer engagement resulting to quick sales in case the company has offers for consumers at a given time. Retailers such as Sainsbury’s can make use of apps to create brand awareness hence attracting more customers. The other benefit of social media compared to other multiple formats is that; it provides consumers with information, such as price of products and location of the stores, where such products can be found, and increases sales for the retailers. The initialization of the Facebook app by Tesco has enabled customers to gain double Club Card points, when they like and share the details of the products they buy from the supermarket. Social media as a format has proved to be more advantageous compared to TV and Billboards, which are mostly used by retailers when they are launching a new product (Seth, Randall, 2005). Social media is also advantageous compared to public relations used by companies such as Blackberry, in that it enhances the attraction of more customers, in that when goods are sold online, the consumers can enjoy after sale services such as free deliveries. This enables the retailers to increase their profits, as they attract more customers (Lusch, Vargo, O'Brien, 2007). A comparison of the three companies and the multiple formats they use reveals that; all the three companies have online shops, which market their goods in UK; this attracts many customers even in other countries. They also use Twitter and Facebook to market their goods. By using Twitter and Facebook, it has helped them connect with many people in UK, especially the young generation (McGoldrick, 2002). Recommendations Tesco, Sainsbury and Blackberry are some of the UK’s most common retail brands. The companies have employed multiple formats in ensuring that they can compete effectively in their different marketing niche. It is crucial for companies to ensure their success in future; they move towards e-retailing practices. By using such social formats like Facebook and Twitter the companies ensure that their presence is felt more by their target markets. Traditional retailing formats should not be abandoned as they are effective in ensuring that the older generation can be reached effectively (McGoldrick, 2002). Conclusion In conclusion, these retailer shops use various marketing strategies, similar and different, to win their customers of all generations in UK. These strategies are highly beneficial, since they increase sales and in the long run increase profits to retailers. Multiple formats benefit organizations in that; some of the formats used by retailers tend to influence the consumers, hence increasing profits for the organization. The use of advertisements by companies helps in increasing awareness among the consumers. For instance, when users check into the website, they become aware of the different stores available and the goods and services offered in the stores (Varley, 2005). Bibliography Berman, B. and Evans, J. (2004) Retail management, 9th Edition, New Jersey: Pearson Education. Cox, R. and Britain, P. 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