- Change in marketing technique in retail industries are enormous ,every second day of any successful products copy are available in the market. The physical existence of the shop are also very important due to the lack of shopping time in customers traditional shopping process is disappeared shoppers are converted into mobile shoppers they do their shopping while travelling .hence it is very important for the retailers to choose their store location .
- Strength of the four major retail giants are almost similar only the difference is in their strategies and techniques , so there is no chance of getting monopoly business in retailing. Even for Tesco it is not possible till today if we look the last years of Tesco in United kingdom only 9.9% of increase in share of food and grocery industry if we again repeat the same percentage it will be maximum up to 35% which is far from getting monopoly business. ( market watch, 20007,pp-12-13)
To attract the mass it is very common strategy that lured them by different ways such as showing care, eager to help or creating a health and friendly atmosphere for shopping as it define by Underhill “a good store is the kind where the products are placed along the customers routes and sights in a way that makes the customers consider buying”. (Underhill 1999).
Literature review
Due to the intense competition in business world it is very difficult to differentiate from competitors, here customers play an important role to differentiate.
In the year 1995 sir L.Terry, CEO of Tesco played the card of customer loyalty and gains the success over the market. Curry and Curry (2000) explained about the customer marketing strategy by implementing,
- Top 20% customers generate 80% of profit in the firm
- Top 20% customers are responsible for exceed the profit rate more than 100%.
- Current customers generates more than 90% of the profit in the company
- Only 5% to 30% of the customers have potential to upgrade their level
- Retaining and up gradation of customers is only because of customer satisfaction.
Reluctant customers often attract by competitors.
According to the journal of database marketing and customer strategy management (2007,pp.14,143-145) ‘ the supermarket that ate Britain’s in the words of the famous independent newspaper headline .On other hand ,the simple fact of Tesco’s retail dominance can’t be denied :£ 1 in every £ 8 spent on retail in the UK is spent at Tesco . Eleven million households use club cards every week. By the above statement it is clearly understandable that Tesco is rising in the field of retail but to hold the success Tesco implementing various strategies but the main issue is to retain the customers rather than acquiring new customers it was already proved that retaining of customers is less expensive than acquiring the new customers
Literature review-With the growth of grocery market in retail industyr the competiton is also started rising later on every industries found that this field is more profitable so the struggle was continuing between every stores in term of retaining the market leadership according the journal of marketing,(october 2007) Oliver, states that consumer loyalty can occur at four different levels cognitive ,effective ,conitive and behavioural although all four facts of consumer loyalty and important ,the cureent reserch focuses on behavioural loyalty . hence in the year (2008) another article was published where statement of Laaksonnen and Reynolds (1994) mentioned in journal of retailing and consumer services , that there is general trend where retailer brand move towards the higher level sophistaction , quality , added value as well as higher price with increased penetration of retailer brands this means increased price level at certain point.
Despite the breath and clarity of different autors , Brain Walsh , managing director of David johns delivered an argument that “ The general principle of depatment store are same everywhere” later on William Kay mentioned that “supermarkets has been the all concurring heroes of retail revolution from their introduction in UK after second world war, everything that touched has seemingly turned into gold for their owners” he quoted the above statement in his book The Battle of High Street .
Meanwhile Ian Mac Lauren ,the general manager of the Tesco- remarks that retailing is continuously revolving business .You never arrive its restless industry all compitinf for a bigger slice of a static cake. To conclude above remark shirleyet al (1981) suggest that i funcation of statage is define the nature of relatoionship between a firm and itr enveriment and to specific the type of business to be engaged is by the firm
Where as waterman(1980), got the different opion about the stargite in retailing he suggest “that the productive organation change is not a simople matter of a sturture , althogh structure is important it is not so as the intreaction betwwen stragi and structure, althought straagi is critical to. Our claim is that effective organation change is really trhe realtionship betwwen struchtre and stragty system, style, skills. Staff and something we call super ordinate goal.”
Some studies , however, have taken a diffrent appproach according to Terence Conren ,the first of eight principle drawn up to guide that development of habitat(1960) ‘Chose products that appeal to customer identify as our target thus giving the collection of homogenity that is not found in those shops that try to offer the a little of everything to everyone’ due to the efforts of the customer orientation these super malls are had started to diversify themselves as for Peter Davis of J.Sainsbury ,(1982) In journal of retail and distribution managemnt ,he comment that “it becomes even more important for the retailer to differetiate himself from his competitor by creating a personality or image which is different and which is his own”
Pierre Martineau , positioning strategy in retailing (1989) defines store image as the way in which store is defined in a shopper mind, partly by its functional qualities and partly by an Aura physological attribute “
Again William Keayin in his book Battles of high street explained that “ shops were relly just warehouse for exchanging goods for money and design for arrogance about retailers that a certain grade of product was good enough for the masses .
Finallly Lord Rayners ,chairman of Marks and Spencer (1984) describes the we have to update the appearance of our source we need new methods , a new appearnce to presenting the goods retaining of staff to work in their different environment plus the sumof money to bring to its allabout because the high street is chnging with the review of diffrent lectures it is clear that retailing in grocery market is a shining star of future economic .
William Kay, mention that “supermarkets have been the all conquering heroes of the retail revolution from their introduction into Britain after the Second World War, everything they touched has seemingly turned to gold for their owner” he quotes the above statement in his book the battle for high street.
“if you don’t use database marketing, you’re going to find yourself in the dinosaur room at the retail museum of the history”(Smith ,1992)
Source: adapted from Thorsten Henning ,2000, pp-57
Where as Waterman (1980), got the different opinion about the strategy in retailing he suggest ‘that productive organisation change is not simple a matter of structure, although structure is important it is not so as the interaction between strategy and structure, although strategy is critical too. our claim is that effective organisation change is really the relationship between structure and strategy system, style, skills, staff and something we call super ordinate goals.’
Research Questions
- Finding out the market strategy and categorising it for analysis.
- Profile of Tesco and its prospects in the future global market.
- Finding out the differentiating strategies which make it unique in the market.
- Various tactics of marketing to launch the prospective products in futuristic markets.
- What tools they use to develop their strategies inorder to stabilise in coming unstable economic conditions like recession or mishappenings which are beyond their controls in reference to marketing.
Conclusion
Retailing and retaining both the termed is associated with customers every firms are just concentrating on the maximization of the sale and the revenue, it is universally assumed by the numbers of the literature review that old and loyal customers are very much effective and important for long term business as Woodruff (1997) stated that in any competitive firm the most vital indicator is customer loyalty . later on Reicheld (1993) define that a series of gaining customers loyalty are connected with financial income which increase the profitability and reduce the cost of repeat purchase.
Never forget about the golden customers –as customer are termed as king .As per this research we would be finding the strategy of Tesco how they are mrket leaders in retail marketing sector and steadily showing there presence in all market segments whether it is finance , insurance,clothing,fuels etc. They are assumed to be one who are using all innovative strategies and technologies to to dominate the market and strongly showing their presence globally which shows ultimate performance level attained.
Reference
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Derek Knee and David Walters (1985) Strategy in retailing(1st edition),Oxford,Phillip Allan Publishers ltd.
- Ogenyi ,Omar(1999) Retail marketing,London,Pitman Publishing.
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Roger Cox and Paul Britain(2004) Retailing and Introduction,(5th edition),England, Prentice Hall.
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William Kay (1987) Battle for the high street,(1st edition),London,Judy Pitkus limited.
- Davies.R.L and Rogers .D.S(1984), Store location and store assessment Research,England, John Wiley and Sons.
- http://findarticles.com
Bibliography
1.Donald S.Tull and Del I. Hawkins(1993),Marketing Research,(6th edition),USA, Macmillan publishing Company.
