anjalicutek
Anjali Khurana
Tesco plc (LSE: TSCO) is a global grocery and general merchandising retailer headquartered in Cheshunt, United Kingdom.[4] It is the fourth-largest retailer in the world measured by revenues (after Wal-Mart, Carrefour and Metro) and the second-largest measured by profits (after Wal-Mart).[5] It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia and Thailand.[6][7][8]
The chain was founded by Jack Cohen in 1919. The brand first appeared after Cohen bought a shipment of tea from T.E. Stockwell and he used those initials and added the first two letters of his own surname. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. Originally a UK-focused retailer specialising in food and drink, it has diversified both geographically and by product, into areas such as clothing, electronics, financial services, telecoms, home, health, car and dental insurance, retailing and renting DVDs,[9] CDs, music downloads, Internet services and software.
It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Jack Cohen founded Tesco in 1919 when he began to sell surplus groceries from a stall at Well Street Market, Hackney, in the East End of London (ironically, the market is now much smaller than in those days; a large Tesco Metro store now sits on the site.)[10] The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from T.E. Stockwell. He made new labels using the first three letters of the supplier's name (TES), and the first two letters of his surname (CO), forming the word TESCO.[11] The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. Tesco was floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited.[10] The first self-service store opened in St Albans in 1956 (which remained operational until 2010, with a period as a Tesco Metro),[12] and the first supermarket in Maldon in 1956.[10]
During the 1950s and the 1960s Tesco grew organically, and also through acquisitions, until it owned more than 800 stores. The company purchased 70 Williamsons stores (1957), 200 Harrow Stores outlets (1959), 212 Irwins stores (1960, beating Express Dairies Premier Supermarkets to the deal), 97 Charles Phillips stores (1964) and the Victor Value chain (1968) (sold to Bejam in 1986).[13]
Originally specialising in food and drink, it has diversified into areas such as clothing, electronics, financial services, telecoms, home, health, car, dental and pet insurance, retailing and renting DVDs,[9] CDs, music downloads, Internet services and software.
The concept of a marketing mix is best described by (1990, 43) claiming that it is "the set of controllable marketing variables that the firm blends to produce the response it wants in the target market." It is composed of four Ps: product, price, place, and promotion. In the context of Tesco, their entry to the Chinese market should significantly adapt to the culture of the consumers in the said location. However, the company should take into keep in mind the basic standards to which their company adheres to. Changes in the provision of services in terms of the four Ps should not completely deviate to the standards inherent to the company. The preceding discussions reveal the suggestions of the researcher.
A. Product
The management of Tesco should set off product development strategies once they have taken control of their shop in China by marketing their existing products, exporting products in different provinces of the country and in so doing pressing forward on the possible opportunities of boosting the company’s market penetration and market share. Tesco should consider restoring or revising models of their products to provide the Chinese customers what they want and what they need. In this way, Tesco could develop the store’s own brand products which could be marketed strategically within the territory of China.
B. Price
Looking at the situation of Tesco, one way that it could acquire cost advantages is by enhancing process efficiencies, expanding exclusive contact to a large supplier of lower cost materials, or steering clear of several costs in general. If rival organizations in the country are incapable to lower their costs by a comparable quantity, Tesco will be capable of sustaining a competitive advantage anchored cost leadership.
C. Place
To develop its success in its retail operations, the Tesco should make multi-million pound investments in store expansion in low-income districts and localities. By getting involved with similar-minded public and private sector groups like local community based associations, colleges, and chambers of commerce, the Tesco will be able to open sites in economically disadvantaged districts in China. Targeting these areas will enable the company to gain the trust of local luminaries and gain favour from the local government by providing employment to the locals.
D. Promotion
The Tesco’s approach should constitute a long-standing strategic plan that centres on generating value to expand the loyalty of their customers which take account of preserving a well-built central Chinese business, to be as strapping in non-food as food products and services, to develop globally and to set the ball rolling on retailing services like on-line shopping.
The bottom-line is that the object of the marketing mix is to satisfy the customer. What Tesco must do is to basically know the needs of the customer in their target country. However, the company should not centre on merely knowing the needs of the consumers. It also has to extend a good relationship with them by ensuring a competent provision of its product and services. Along with these is the provision of a suitable customer care service to reinforce their satisfaction.
The chain was founded by Jack Cohen in 1919. The brand first appeared after Cohen bought a shipment of tea from T.E. Stockwell and he used those initials and added the first two letters of his own surname. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. Originally a UK-focused retailer specialising in food and drink, it has diversified both geographically and by product, into areas such as clothing, electronics, financial services, telecoms, home, health, car and dental insurance, retailing and renting DVDs,[9] CDs, music downloads, Internet services and software.
It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Jack Cohen founded Tesco in 1919 when he began to sell surplus groceries from a stall at Well Street Market, Hackney, in the East End of London (ironically, the market is now much smaller than in those days; a large Tesco Metro store now sits on the site.)[10] The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from T.E. Stockwell. He made new labels using the first three letters of the supplier's name (TES), and the first two letters of his surname (CO), forming the word TESCO.[11] The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. Tesco was floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited.[10] The first self-service store opened in St Albans in 1956 (which remained operational until 2010, with a period as a Tesco Metro),[12] and the first supermarket in Maldon in 1956.[10]
During the 1950s and the 1960s Tesco grew organically, and also through acquisitions, until it owned more than 800 stores. The company purchased 70 Williamsons stores (1957), 200 Harrow Stores outlets (1959), 212 Irwins stores (1960, beating Express Dairies Premier Supermarkets to the deal), 97 Charles Phillips stores (1964) and the Victor Value chain (1968) (sold to Bejam in 1986).[13]
Originally specialising in food and drink, it has diversified into areas such as clothing, electronics, financial services, telecoms, home, health, car, dental and pet insurance, retailing and renting DVDs,[9] CDs, music downloads, Internet services and software.
The concept of a marketing mix is best described by (1990, 43) claiming that it is "the set of controllable marketing variables that the firm blends to produce the response it wants in the target market." It is composed of four Ps: product, price, place, and promotion. In the context of Tesco, their entry to the Chinese market should significantly adapt to the culture of the consumers in the said location. However, the company should take into keep in mind the basic standards to which their company adheres to. Changes in the provision of services in terms of the four Ps should not completely deviate to the standards inherent to the company. The preceding discussions reveal the suggestions of the researcher.
A. Product
The management of Tesco should set off product development strategies once they have taken control of their shop in China by marketing their existing products, exporting products in different provinces of the country and in so doing pressing forward on the possible opportunities of boosting the company’s market penetration and market share. Tesco should consider restoring or revising models of their products to provide the Chinese customers what they want and what they need. In this way, Tesco could develop the store’s own brand products which could be marketed strategically within the territory of China.
B. Price
Looking at the situation of Tesco, one way that it could acquire cost advantages is by enhancing process efficiencies, expanding exclusive contact to a large supplier of lower cost materials, or steering clear of several costs in general. If rival organizations in the country are incapable to lower their costs by a comparable quantity, Tesco will be capable of sustaining a competitive advantage anchored cost leadership.
C. Place
To develop its success in its retail operations, the Tesco should make multi-million pound investments in store expansion in low-income districts and localities. By getting involved with similar-minded public and private sector groups like local community based associations, colleges, and chambers of commerce, the Tesco will be able to open sites in economically disadvantaged districts in China. Targeting these areas will enable the company to gain the trust of local luminaries and gain favour from the local government by providing employment to the locals.
D. Promotion
The Tesco’s approach should constitute a long-standing strategic plan that centres on generating value to expand the loyalty of their customers which take account of preserving a well-built central Chinese business, to be as strapping in non-food as food products and services, to develop globally and to set the ball rolling on retailing services like on-line shopping.
The bottom-line is that the object of the marketing mix is to satisfy the customer. What Tesco must do is to basically know the needs of the customer in their target country. However, the company should not centre on merely knowing the needs of the consumers. It also has to extend a good relationship with them by ensuring a competent provision of its product and services. Along with these is the provision of a suitable customer care service to reinforce their satisfaction.