Tesco Plc Marketing Audit
[Name of the Writer]
[Name of the Institution]
This report contains the company overview and details of marketing audit carried on Tesco Plc, which is largest retailer in UK. The marketing audit has covered various important areas that are significant to analyze, indentify and understand the issues and challenges of internal and external environment of the business. Tools used to conduct marketing audit of the Tesco Plc are, marketing mix 4P’s, SWOT analysis, PESTLE analysis and porter five forces.
Changing marketing scenarios are a challenge for retailers, despite the fact it has captured large share in the market. Tesco PLC has been chosen to perform the marketing audit, as it is largest retailer in UK and having 30% of share in the market (www.guardian.co.uk). Tesco plc is a global marketing and general grocery retailers. It is operating in 14 major countries and employing 500,000 employees worldwide. It is the leading UK-based retailer in terms of global sales and domestic market share. Jack Cohen established this company in 1919 (Tesco Plc, 2012). Tesco Plc is running under six formats in UK, such as Tesco Express, Tesco Extra, Tesco Supermarkets, Tesco Metro, Tesco Home Plus and Tesco One Stop. Altogether Tesco acquires 3000 stores in UK and employing around 300,000 employees and over 60% group sales and profit comes from UK business (Tesco Plc, 2012). Tesco is ranked on third position after the Wal-Mart and Carrefour but on the basis of profit comparison it is considered as the second largest, after Carrefour (www.supermarketnews.com). Tesco is operating extremely well in all its business sectors worldwide, but to grow further as number one global leader, it still needs wide marketing plans and strategies, this reports carries out marketing audit of the company which shows threats and opportunities of internal and external environment.
Neil H Borden in 1964 published the article on marketing mix primarily and thereafter the term became famous and integral part of marketing plan of every organization Chandrasekar, 2010). The firm can create its marketing mix once its target market is defined and that provides competitive advantage to the company. Marketing mix is the blend of product offering, pricing, promotional methods and place or distribution channel that brings specific group of consumers with superior value (Gitman and McDaniel, 2009). In the context of Tesco, entry to China market made them to adapt their culture and norms in order to reach consumers in big china market. But company needed to stick fast with its principles and basic standards set. There would be changes in terms of services with regards to 4p’s but the company cannot deviate to its set standards which are inherent to the company.
Product is the heart of Marketing mix, of course it is hard to design and decide place, promotion or price and the nature of product plays vital role, when marketing any product or services (Lamb et al, 2012). In case of China, Tesco needs to figure out who the end consumers of the products are, what they are looking for, their existing products are fulfilling customer needs, what they are offering and which product needs to import or make in house to complete the demand of Chinese customers. In order to compete with local retailers and gain more market share, Tesco also needs to provide Chinese based products with and that can be done by developing the Tesco owns brand products which can be marketed strategically within the region of China.
PricePrice refers to the amount the customer has to pay in order to buy the goods and services (Chandrasekhar, 2010). Tesco's marketing department is responsible for the price charged for the products and that would be based on rivals offering prices and original cost prices of...