Relationship Marketing:
Tesco used relationship marketing to promote the club card. They did this by offering the card to its existing customers and offering them points for every £1 they spent. This encouraged customers to return (i.e. become loyal). Tesco did this to build a relationship with its customers. The club card records all products a customer buys; this enables Tesco to offer them related goods. It also means Tesco have customers contact details on their database so can contact them direct with details of new products and services. The card was promoted in store through leaflets, application form and by check out staff. It was also part of an advertising campaign which saw Prunella Scales collect points and swap them for treats. The Club Card enables Tesco to use relationship marketing more effectively and allow them to build on the existing relationship they have with all their customers by selling them more products and services.
Apple has had the distinct ability to encourage consumers to purchase an apple product, and then maintain that customer’s loyalty for years to come. The company offers consumers a number of different ways to enjoy its products. Apple’s relationship marketing is simple they want to be loyal to their customers and want to ensure that they provide quality products so that customers can return back, they want to have a life long relationship with their customers. By giving customers and opportunity to employ Apple in their living rooms, pockets and offices, Apple makes it easy to stay loyal to a brand they already like. From packaging to aesthetic design to user-interface experience, Apple makes its products accessible and attractive. Bright colors, a smiling icon and slick-looking hardware remind customers every time they use Apple products that what Apple offers is appealing.
Relationship marketing is used by both Apple and Tesco to build a relationship with the customer, encourage and reward loyalty, whilst trying to get them to buy more products. Tesco use this technique more frequently and effectively than Apple but this is because they have many more products and services to offer, so can build on the existing relationship.
Growth strategies:
Tesco:
Market penetration: Tesco can increase their sales to the existing markets for example on finest products that they sell currently in all Tesco’s.
Product development: In April 2012 Tesco re-launched its own brand Tesco value range as 'Tesco Everyday Value', with new packaging and recipes. This shows that Tesco have develop modified versions its existing products which can appeal to existing markets.
Market development: Tesco have recently opened in India this show that they are expanding new markets with existing products.
Diversification: Tesco have introduced new services to their customers such as home insurance, car insurance, mortgages and other services this show that they are diversifying as they are going to new markets and exploring different things which can be a risky strategy because the organisation is moving into areas which it as little or no experience.
Apple:
Market penetration: Apple can increase their sales to the existing markets for the iPhone 4 and 4S as currently all Apple stores sell these product across the globe.
Product development: On September 12, 2012, Apple unveiled the iPhone 5, featuring an enlarged screen, more powerful processors, and running iOS 6. It was made available on September 21, 2012, but has already become Apple's biggest iPhone launch; with over 2 million pre-orders pushing back the delivery date to late October. This shows Apple are producing the latest product and developing the latest technology and the latest software on the new iPhone 5. Apple has developed modified versions by simply adding more powerful processors.
Market development: Apple have recently opened in Hong Kong in September 2011 this show that they are expanding new markets with existing products.
Diversification: Apple has not diversified with their products however Apple has a much more diverse product line now than it had a decade ago. This could have lead to a certain lack of focus, but is hasn’t. Apple may be called many things, but unfocused isn’t one of them. All these new products have only served to make the company stronger and much more profitable, more valuable.
Tesco and Apple have used growth strategies both companies have followed the Ansoff’s matrix diagram. Both companies use market penetration to increase their sales to their existing markets. Both companies are developing their current products for example in Tesco they have changed their packaging as ‘Tesco Everyday Value’ they have developed their modified versions. Apple has recently introduced the iPhone 5 as their latest phone with updated technology with quick access. Tesco and Apple similarly are developing their markets as both companies have recently opened into different countries selling the same products that they sell. Tesco have completely diversified with their products starting off by selling groceries, they have moved to Insurances, Mortgages and offer Tesco Bank. Whereas Apple has not diversified with their products however they have varied with their technology by updating each of the product and having the latest technology however they have a much more diverse product line than it had a decade ago.
Brand building and positioning:
Apple:
This is when enhancing a brand’s equity directly through advertising campaigns and indirectly through promotions such as supporting causes or event sponsorship. A business must first identify its brand values customers should understood what they think of the brand. Is a process that involves in creating a unique name and image for a product it is linked with logos, strap lines, brand promise, colours and associated benefits. The Apple brand personality emphasises on making people’s lives easier they have done this by making their products accessible for their customers. Apple’s branding strategy has proven to be effective so far.
Tesco:
The benefits of a having a strong brand image is that it creates an image of an established business that has been around for long enough to become well known. A branded business is more likely to be seen as experienced in their products or services, and will generally be seen as more reliable and trustworthy than an unbranded business. Tesco have selected different use of branding such as Tesco value, Tesco standards, Tesco finest, Tesco organic and Tesco Whole foods.
Apple and Tesco have built their brand both companies have a strong image they are both an established business that has been around for long enough to become well known. They are experienced with their products and their services that they provide to their consumers.
by
ashra007 (student)
