Marketing Mix - Tesco Poland Case Study

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Contents

List of figures3

List of Tables3

Introduction4

1.Marketing mix using Tesco Poland as an example5

1.1Products5

1.2Price6

1.3Place6

1.4Promotion7

1.5People7

1.6Process8

1.7Physical evidence9

1.7.1 Parking9

1.7.2 Buildings9

1.7.3 Stores/decor/furnishings10

2.Micro environment - competition11

2.1Tesco vs. Biedronka (Ladybird)12

2.2Tesco vs. Carrefour12

2.3Comparison of the top 3 retail chains in Poland13

2.1Current and potential threats to Tesco in Poland16

3Suggested recommendations16

References17

Appendix 1 Tesco - relations with suppliers and producers of goods...................................................19

Appendix 2 Tesco and Nestle joint business plan..................................................................................20

List of figures

Figure 1 Reflected location of Tesco’s stores across the Republic of Poland

Figure 2 Types of food products in Tesco Poland

Figure 3 The biggest logistics base and the main distribution center of Tesco Poland, Teresin near Warsaw

Figure 4“Too much, too hard, Tesco” – strikes of the Tesco’s employees in Poland 2008 – 2009 (photos from the private collections of protesting staff).

Figure 5 Tesco car parks – Poland (psboy, 2010)

Figure 6 Modern Tesco in Krosno with large shopping galleries (Krzanowski, 2010)

Figure 7 Tesco Poland – interior of store (Tesco,2010)

Figure 8 Factors impacting on a firm (Loh, 2009)

Figure 9 Top 10 retail chains in Poland – turnover in 2008 and 2009 (ITM Pl, 2010)

Figure 10 Percent market shares - retail chains in Poland in 2009 (top five) (PMR, 2010

List of Tables

Table 1The compare of expansion and activity of the selected chains (Tesco, 2010; Carrefour, 2010; Real, 2010)

Introduction

In this report I will discuss the marketing mix for Tesco Poland and also the current and potential treats in the marketing/competition environment and suggested some recommendations.

Tesco started its activity in Poland in November 1995 with a strategic investment in the Savia supermarket chain. The first store with Tesco’s logo was opened in 1998. From 1995 Tesco made many mergers and acquisitions (table one p.13) and this was the first stage in the development of Tesco's Poland network, which in the past two years has developed a chain of small size shops in whole country (Figure 1) (Tesco, 2010). Tesco apparently has ambitions to take over the Netto and Billa chains, amounting to 183 retail outlets in total (IFO, 2010). The main strategy of Tesco Poland is to taker over weaker, competing networks and engaging fierce, competitive struggle with others. The strongest Tesco’s competitors currently are Carrefour and Biedronka which use the same methods of competition (table one p.13). To increase turnover and profits Tesco operates as a limited liability company under the name of TESCO Polska Sp.z o.o..

Figure1. Reflected location of Tesco’s stores across the Republic of Poland

Marketing mix using Tesco Poland as an example

Marketing mix takes a systematic approach to an analysis of the market and outputs of which enable Tesco to maximise customer satisfaction. Each of the marketing mix factors should not only be internally integrated, but also should have a high degree of efficiency and effectiveness. Traditionally the marketing mix consisted of just 4 Ps (Product, Price, Place, Promotion) but has been extended to 7 Ps (People, Process, Physical evidence) (Dibb & Simkin, 2001).

1.1Products

Tesco Poland has a wide range of products designed for different consumer segments: grocery, medication, food supplements and hygiene articles, household goods, toys and gifts, bicycles and scooters, clothing, shoes, entertainment and books, PC, photo, games, home electrical, sound and vision, phones, sports and leisure, furniture and kitchen, baby and toddler, gardening...
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