Marketing is essentially a matching process between the needs and expectations of customers, and the organization’s ability and capacity to satisfy them. One of the main points of this process is the marketing planning. The purpose of marketing planning and its principal focus are the identification and creation of competitive advantage. Marketing planning is the planned application of marketing resources to achieve marketing objectives. In other words, it is the written document that describes your advertising and marketing efforts for the coming year; it includes a statement of the marketing situation, a discussion of target markets and company positioning and a description of the marketing mix you intend to use to reach your marketing goals. A company needs a marketing plan just as it needs a business plan.
The benefits to an organization of having a marketing plan are that it: - achieves better coordination of activities
- identifies expected developments
- increases organizational preparedness to change
- minimizes non-rational responses to the unexpected
- reduces conflicts about where the organization should be going - and improves communications
One area where the marketing function, and so the process of marketing planning, is crucial, because of the high level of competition, is the mass market. It is defined by the approach to advertising that attempts to reach every consumer, rather than targeting a particular market segment. A mass market strategy is effective for products that appeal to a broad cross-section of consumers, like aspirin or orange juice. As mentioned earlier, the multiplicity of actors on such market makes the differentiation and the markdown required to stay on this market and keep existing customers and attract new ones. Moreover, this is what the subject of our study, Tesco group, is trying to do.
Tesco was originated in the markets of London’s East End, where in 1914, war veteran Jack Cohen began to sell groceries. The brand name of Tesco first appeared on packets of tea in the 1920s. Tesco was an amalgamation of the initials of T.E. Stockwell, a partner in the firm of tea suppliers, and the first two letters of Cohen. The first Tesco store was founded in 1929 in Burnt Oak, Edgeware. Tesco is one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. As well as operating in the UK, it has stores in the rest of Europe and Asia. It also provides online services through its subsidiary, Tesco.com. The UK is the company’s largest market operating under four banners: Extra, Superstore, Metro and Express. Tesco sells approximately 40,000 food products in its superstores, as well as clothing and other non-food lines. The company’s own-label products are at three levels, value, normal and finest. Own brand accounts for approximately 50% of sales. As well as convenience produce, many stores have gas stations. The company has become one of Britain’s largest petrol independent retailers. Other retailing services offered in the UK include Tesco Personal Finance and Tesco.com. Tesco Personal Finance is a joint venture with the Royal Bank of Scotland. It has over 3.4 million customers, and provides various financial products and services. The company has operations in the rest of Europe, including the Republic of Ireland, Hungary, Poland, Czech Republic and Slovakia.
Its products and services include:
Home Living Range
Tesco Personal Finance:
Secure Investment Bonds
Online Mortgage Finder
1. TESCO CURRENT ANALYSIS
1. Environmental analysis
The economic climate and its consequences are critical for Tesco because they are able to influence...