Case Study: Tesco Marketing Strategy

Tesco is a large British multinational organisation which mainly sells grocery but over the recent years has expanded its product range to mobile phones, clothing and many other things that you can think of. They are the second largest retailer in the world behind Wal-mart. Tesco have many stores, spread over 14 countries and is the market leader in the UK. In this article we will take a look at Tesco and how they increase their market share to become one of the biggest retailers in the world. 

Tesco have a very marketing strategy in place. Tesco have introduced loyalty programs such as the club card, air miles and collect vouchers for kids club, these are designed to keep interacting with customers to strengthen loyalty with customers and create a better relationship with them.

In reference to sales and marketing, the Tesco Sales team have to select the correct channel to deliver products to the market place, in Tesco’s circumstances they directly supply their stores and use personal distribution resources from storage facilities to stores which indicate they decrease costs and waste management.

Tesco tend to use the club card as their main form of marketing on TV, online, leaflets, billboards and other methods that are available. Tesco due to their market size and power are able to introduce promotional offers cheaper than competitors and with the club card they are able to reward customers with points that are available in different forms for example air-miles, kids school vouchers, Tesco fuel, Tesco finance and other rewards that are available to its customers who use the Tesco club card. The club card has been a successful form of attracting custom and increasing sales also customers are able to use the club card for Tesco’s online sales which have seen an increase according for a source which brought in an extra £136m. Compared to Sainsbury’s nectar card Tesco’s marketing and the simplicity of the club card has been highly successful and continues to strive into improvements to its Sales team which continues to target customers to sell and with the club card have been able to aim at all market segments, using this resource they are primarily aiming at all socio economic groups.

Tesco Price Promise - One of Tesco's marketing campaign

As Tesco’s marketing campaigns are increased during Christmas and summer periods to attract more custom for the festive seasons they are able to introduce new promotional deals for customers such as alcoholic drinks, foods and other products. The marketing team are able to use the insurance, mobile, fuel and broadband to directly approach customers about any promotional offers and deals that are available to them which gives customers the feel of importance.

Once the products reach the stores management within the stores have merchandise the products into their allotments and suitable places for them to be purchased, the sales team interact with the marketing team to ensure customers are aware of products being available at the Tesco stores for example Tesco introduced Asian continental foods and products in stores that are situated in areas which have an Asian community living in the reach of a Tesco store but these products are only available in some Tesco stores where there is a market for them. All the products that Tesco have on sale have to be priced accordingly to ensure that they are if not cheaper at a competitive price against competitors. Tesco’s marketing campaigns have helped them achieving an increase of sales for the Tesco.com webpage and are again increasing its promotional offers to keep up competition.

Tesco seem to promote brands that are available at their stores more than their personal brands which again is a good way of attracting customers from all target markets with campaigns which include top brands from all markets being made available Tesco’s marketing team have to always advertise their products in the correct channels to achieve maximum sales of that particular product or range of products.

Tesco’s marketing teams objectives are to interact with local and national customers to conduct research to help find improvement to Tesco’s services and keeping up to date with the new trends, this process is difficult due to the introduction of new technology and marketing Tesco have been able to constantly adapt to the new trends and habits. Customers have unique tastes which Tesco’s marketing team try to attract customers with various methods of advertisement which could be via all of its services and E-mails.

Tesco's marketing campaign for Blinkbox, their on demand movie service

Sales team is set up to design the prices, reductions and other financial obstacles that occur which could affect Tesco’s capability on the market. Since the introduction of the Tesco price reductions on multi buy options, promotional offers and pricing of many items they have to ensure customers that they are getting value for money and the best customer service.

Without the assistance of the Sales and Marketing, Tesco would be missing a critical component in its effort to become number one in the market. Now that they have market control & are a large organisation they can introduce the best prices with the best channels of marketing to attract the custom. Without the correct pricing and marketing Tesco would not have been able to achieve as much as it has now without the efforts of the sales and marketing teams.

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