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:
- Relationship Marketing
- Growth strategies
- Survival strategies
- Brand building and positioning
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”. Its strategy of being close to the customer has been assisted in the UK specifically, when Tesco developed different formats for shopping (convenience, metro, express, superstores). It has been the best retailer for format delivery and obtaining some of the best retail positions.
In 1994 Tesco’s hired a company called Dunhumby to help them analysis their database and find the patterns in the data they would help them devise successful marketing programmes. In 1995 Tesco introduced their Tesco Clubcard and since then Tesco have become the number one retailer in the UK market with annual revenues of over £32 billion. They have successfully entered new markets including home electronics, clothing and personal finance. Relationship Marketing is a success for Tesco this is because due to the amount of profit with the loyalty Clubcard scheme. Dunhumby has had a very strong year, increasing sales and profits by over 30% with excellent growth in the UK supplier business and from its overseas joint ventures with retailers.