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Evaluate the effectiveness of marketing techniques in Tescos.

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Introduction

´╗┐Asid Ashraf Unit 3 Introduction to Marketing: D1: Evaluate the effectiveness of the use of techniques used in marketing products in one organisation. Explain how the marketing techniques of your chosen organisation have been a success Marketing techniques used in Tesco: 1. Branding 2. Relationship Marketing 3. Growth strategies 4. Survival strategies 5. Brand building and positioning Branding: Tesco has been particularly successful because of its powerful brand. It has a reputation for value, low prices and for being customer focused. Its brand and associations have helped the company to expand into new sectors and markets. Tesco has also been strong in public relations, advertising and building profile in catchment areas on a local level. This local approach to marketing appears to be a key driver for success. Tesco has a good range of products, including own label products. It seeks to provide excellent customer service, and ensure high levels of customer satisfaction. The own label products have helped strengthen profits for the group, and it broad appeal through good, better, best (finest ranges) caters for the widest consumer audience. Aggressive overseas expansion has helped to keep profits high. The organisation has expanded into Eastern Europe, emerging nations such as China and South Korea and even the US, through mid market supermarkets known as, ?fresh and easy?. ...read more.

Middle

Helping customers manage on tight budgets, Value was already growing at twice the rate of the market as a whole: these changes will further strengthen its position. They will also be comprehensively updating other Tesco ranges this year. This show they have started to build upon their brand on Tesco Value as Everyday Value. Expansion: Tesco has expanded by a combination of gaining new stores, retail services and by adapting to the needs of consumers. Tesco has net profits (before tax) of around £3 billion. Tesco's primary aim is 'to serve the customer'. Keeping existing customers happy is important, as they are more likely to return. This is more cost effective for the business than acquiring new ones. In the UK Tesco now has over 2,200 stores ranging from the large Extra hypermarket style stores to small Tesco Express high street outlets. Tesco's original product range of grocery and general merchandise has diversified to include banking, insurance services, electrical goods as well as telephone equipment and airtime. This move towards 'one stop shopping' means customers can meet all their purchasing needs from one place. Tesco has also expanded its customer base through its Tesco.com website which attracts one million regular users. As the company has grown, so has its workforce. From one man and a stall, Tesco now has approximately 280,000 employees in the UK and over 460,000 worldwide. ...read more.

Conclusion

Tesco saw a profit in 2007 of £1,881,000,000, which is significant, particularly for a low-margin vertical industry such as the grocery market (Tesco, 2008). Earnings per share (EPS) for the company were 23.84p in 2007, compared to 20.07p in 2006, demonstrating strong growth within the market. In this year, they delivered sales growth of 7.4%. Profit growth with a strong international performance largely offset by a reduction in UK profits. Trading profit grew by 1.3%, and profit before tax grew by 5.3%. Return on capital employed improved from 12.9% last year to 13.3%, and they continued our long record of dividend growth for shareholders, with the full year dividend up 2.1% to 14.76p. Reference: http://www.tescoplc.com/files/pdf/reports/tesco_annual_report_2012.pdf Where are Tesco placed in the Top 100 brands list? According to a website Tesco is placed number 31 as the UK’s top 100 brands however Apple is the number 1 brand in the world. What is Tesco’s reputation with customers in terms of reliability and confidence in the brand? Tesco’s reputation in terms of reliability and confidence in the brand is high as customers rely heavily on the Tesco brands as they believe the brand is right for example Tesco value and Tesco finest as everything Tesco include about their brands has to be right for their customers to believe them. The reliability of the brand has to be true and no false information should be provided. ...read more.

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