1.Introduction to Company 1
Name of organisation, location(s), type of organisation, goods and services sold, target market. Tesco has over 2000 stores in the UK and it is also expanding as they are located in 12 countries such as Thailand, China and the United States. Tesco is a public limited company and is a global business. The good and services they sell are food, clothing, electronics, furniture, toys and books. Their target market is not that specific as they sell different ranges of products which are bought by all types of people. However, their main target audience would be middle-class people as they can afford the products.
a.Business aims of Company 1
Find the annual reports for the company or look on their website to find their mission statement and their aims for the coming year(s). Their mission statement is “we make what matters better, together” which means they are able to provide people with their daily necessities and things that are important to them e.g. food that is of good quality. The main aim of their company is to build a good relationship with their customers as they are the ones who are buying the product so customer satisfaction is important. Also, they want all of their colleagues to have an equal opportunity and get rewarded for their work. This will motivate them to work even harder, which will help gain more customers. They also want them to work as a team which will make them feel comfortable in their workplace. Moreover, they want good quality products so the customers are satisfied.
2.Marketing objectives set by Company 1 to achieve business aims
State what marketing objectives you think the company has set to achieve their business aims, such as; market leadership, brand awareness, perceptions of customers or users. Explain what you are saying and give examples.Tesco would want survive as recently their “full-year sales in the UK declined by (0.1)%” and are expected to decrease next year as well which may be due to recession. Therefore, they have decided to lower their expenditure and will focus on their online business more. Also, they would want to use perceptions of customers as it affects their purchasing decisions. If a company prospers a bad name, it can take a lot of time, effort and money to change a customer’s point of view. (http://www.tescoplc.com)
a.Growth strategies used for products in Company 1
Use Ansoff’s matrix to decide what growth strategy your organisation uses, illustrate with examples of products and marketing campaigns. Tesco uses market development, as they have expanded stores abroad with their existing products. “32% of our Group sales and 29% of profits are made internationally”, this shows that this strategy is successful for their business, especially in Asia and Europe. This is to maximise profit and increase their sales as for the past year their sales have been low. Also, by doing this, they will gain new customers. However, there is a high risk which Tesco has faced before as well, when they opened new stores in the USA but didn’t do well as they had other competitors and the customers were not aware of their brand.
b.Survival strategies used by the Company 1
Describe the survival strategies your company has used during more difficult times. These include; cost reduction (staff, buildings), product differentiation, pricing and promotional strategies, taking advantage of competitors going out of business.
c.Use of branding to increase demand by Company 1
Define the term branding and use examples from your organisation to show how they use branding to achieve their marketing and business aims.
Branding is creating an image for your business/product and whether they will link your brand with what they are looking to buy.
d.Relationship marketing in Company 1
Explain what relationship marketing techniques, such as loyalty cards, recommending products, your organisation uses.
Tesco’s approach to working with communities helps it stand