Tesco is now a very successful retailer in the UK. Also, it is the second-largest retailer in the world measured by profits and third-largest retailers in the world measured by revenues. Which it is the business that I have selected to carry out my investigations. Tesco
According to the “Business Case Studies”, it has been mentioned that one of Tesco’s aim and objectives are to maximise sales. In order to do this, they will need to maintain their advertising and promotions to the public. For example, new products or services that are brought into the market needs to be advertised such as newspapers, leaflets, TV advertisements and . The media is one of the best way to publicise new released products as there’s a high percentage of the population in the country that watches the TV. As a result, consumers will be informed that there’s a new product brought into the market. Also, considering newspaper ads, magazines, special publications and other forms of marketing will attract more loyal consumers and from this cause, it may increase sales turnovers; could possibly maximised sales. Moreover, Tesco is willing to Increase its profit and for this to be succeeded, is to increase goods or services price. For example, if Tesco increases the price of a product, it will widen the profit margin and from this cause each products/services sold will generate more profit. This strategy will be particularly effective if the product is a necessity or has no close substitutes as customer will be willing to pay the higher price. However, the strategy of increasing in the price must be treated carefully because if there are many close competitors like Asda, Morrison for a product and the higher price may lead customers to switch to rival products entirely, for example, Tesco, may decide to increase its price, which the price will be £1.20 for a milk, rivals like Asda or Morrison might put the price to £1 and consumers may decide to consume milk from Asda or Morrison as it is...
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