customer perception about brand reality

Topics: Marketing, Customer relationship management, Customer service Pages: 6 (2181 words) Published: November 24, 2013


“ Customer perception about reliability and how this can be used a marketing tool in retail industry (Case study of Tesco plc)”

1. Introduction:
The retail industry plays a significant role in the development and growth of overall economy of a nation. In countries such as UK, retailers have positioned themselves in such a way that they are able to cater all types of customers’ needs and wants. (Economic Survey, 2012). The major retailers of UK are Tesco, Sainsburys, Asda, John Lewis, Marks and Spencer etc. Even when the country faced severe economic crisis, retailers invested in infrastructure and technology with a vision to grow in the long run by understanding and satisfying the demand of all groups of customers. This research aims to focus on subject of customer reliability in retail sector based on case study of Tesco plc and will show how this reliability has been used as a marketing technique by Tesco. This case study should be considering the Luton, UK branch of Tesco Metro. The study will correlate the reliability perception of customers and marketing strategy. Marketing is all about understanding customers’ needs and wants and then designing and delivering products and services at a profit in such a way that those needs and wants can be satisfied. (Kotler and Keller, 2011). Marketing strategy is a strategy adopted by an organization which allows it to use its available resources for the maximum satisfaction of customers’ needs and wants. There is a significant role of customers’ perception in relation to reliability in this marketing strategy. For the study, the researcher has selected the luton branch of Tesco Metro. The reason behind this chosen branch is the availability of data and information. The researcher has sound access to the manager of this Tesco branch and hence data is easily accessible. Marketing is very essential not only to retain existing customers but also to attract new and potential customers. Without effective marketing, it is not possible for any company to survive, prosper and grow in today’s complex and dynamic environment. Marketing continuously aims to improve the current market share of the company. (Boot, 2000). It should be noted that the days of black-box marketing have gone where companies just focus on mass production and mass consumption with the help of mass advertisement. Today customers are quite clever and hence marketing strategy should be effective enough to establish reliability and trust for the company among the customers. (Gronroos, 1994). In addition, long term bond and relationship with customers is quite essential in order to sustain and grow and companies use this relationship so as to achieve customers’ perception of reliability. (Baker, 2000). The external environment also forces a company to design and maintain a customer- focused strategy which can work in conjunction with reliability. In order to address this significant issue, Tesco introduced ‘clubcard’ scheme which is a customer reliability program in 1995. Since Tesco was a leading food retailer in UK, it was necessary for this company to understand the underlying importance of brand reliability. Today this scheme has predominant impact on marketing function of Tesco and it influences its operations and procedures when it comes to customer loyalty. 1 (A). Research Aim and Objectives:

The overall aim of this study is to explain and analyze the relationship between customers’ perception about reliability and the marketing strategy of Tesco at Luton branch. The influence of reliability perception on marketing strategy of Tesco shall be investigated. In order to achieve this aim, the objectives of the research are as follows: To analyze and investigate various theories, models and literature so as to find out the correlation between marketing strategy and reliability perception of customers. To examine the factors that enhanced reliability...
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