Tesco Bank Marketing

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1. Executive Summary-----------------------------------------------------------------------1 2. Task 1 Area of Study----------------------------------------------------------------------2 3. Task 2 PLC Stage-------------------------------------------------------------------------2 4. Task 3 Target Market----------------------------------------------------------------------5 5. Task 4 Product repositioning------------------------------------------------------------6 6. Task 5 Pricing Strategies----------------------------------------------------------------8 7. Task 6 Poster Design For Advertising Campaign--------------------------------10 8. Conclusion and Recommendation---------------------------------------------------11 9. Appendix-----------------------------------------------------------------------------------12 10. Bibliography-------------------------------------------------------------------------------15 11. Tesco Clubcard Credit Card Poster

Executive summary
This assignment is commissioned to examine why Tesco Bank will be suitable to boost sales and why it is necessary to focus on this area for improvement.

The research draws attention to the fact that the current product life cycle of Tesco Bank is in the Maturity stage. And now Tesco Bank is a question mark according to Boston’s Matrix. The target market of Tesco Bank includes Tesco Clubcard holders, families with children, pet and car. By Geographic segmentation, Brislington in the North East, Coventry in the Midlands and Blackpool in the North West are its target market. By Demographic segmentation, the age should be targeted from 18 to 50 and over 50s. By Behavioural segmentation, its loyal customers are targeted. Further investigations reveal that the Tesco Clubcard Credit Card’s position in the market is not enough good and the repositioning makes this product become more competitive in the market. The main price strategy is competition-based pricing. A new Good-value pricing strategy is made for the repositioning product. Moreover, an A3 size poster for Tesco Clubcard Credit Card is designed for advertisement.

It is recommended:
● The future market strategy of Tesco Bank should focus on strengthening its customer base and service improvement.

* Innovation of products is important.

* Tesco supermarkets are good platforms for Tesco Bank to advertise itself.

TASK 1 AREA OF STUDY

Tesco Bank is a subsidiary company of Tesco (the UK’s largest supermarket) in the UK. This bank was ever named Tesco Personal Finance. Initially, Tesco Personal Finance (TPF) was a joint venture business between Tesco and the Royal Bank of Scotland (RBS) (Datamonitor, 2011). Then, Tesco took full control of Tesco Personal Finance, by an agreement with RBS to buy its 50% shareholding in TPF in 2008 (Sky News, 2008). TPF was renamed Tesco Bank in 2009 and it was a signal that Tesco would like to join into the high street banking sector (The Telegraph, 2009).

Tesco Bank has continuously made good progress in 2011. For example, savings, the number of credit cards and insurance sales have strongly increased (Tesco plc website, 2012). As a new entrant with great brand awareness that was untainted by the banking crisis, Tesco Bank has great potential to boost sales in the UK because the current customer dissatisfaction with banks is serious in the UK (MarketWatch, 2009). However, it is necessary to focus on this area for improvement because the infrastructure of Tesco bank is not enough and it should have a better market strategy to attract more customers as a new entrant.

TASK 2 PLC STAGE

Kotler and Armstrong (2012) define product life cycle (PLC) as a development trajectory of a product based on its sales and profits over its lifetime. The five distinct stages (product development stage, introduction stage, growth stage, maturity stage and decline stage) of PLC describe how products and markets work....
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