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MKT00720 Marketing Strategy Proof Reading Services
This is a case study based analysis report which helps in identifying the marketing strategies adopted by an organization in order to gain competitive advantage and analyze the reason for the achievement of the competitive advantage from their rivals in the industry. “TESCO Plc and Primark” are the two different brands who are popular and having the strong competitive position in their industry due to their clear and strong marketing strategy.
Role of Marketing Strategy:
Marketing is one of the most important functions of the organization. Marketing helps the organization in providing effective product or services to ultimate consumer with efficient use of marketing mix (Griffith, et. al., 2014). Marketing decision making includes decisions regarding advertisement and distribution channel for the organization. Marketing strategy help organizations in gaining good market share and competitive advantage from rivals. Marketing creates the brand image of the organization and gives recognition of its product or services. Marketing helps in creating the potential customer, investors and other stakeholders of the business organization. The other functions of organizations depend upon the marketing (Arnold, 2010).
Tesco plc is a multinational British company operating in the retail industry. It is largest food retailer in the world provides food products through Supermarket, Hypermarket, and Superstore. The company also operates in Europe, Ireland, Hungry and Poland etc in the world. Apart from food and grocery company provides financial products and services. Tesco provides home shop services through its website. In Offline Mode, Company operates in the form of Extra stores, superstores, metro, and express stores. Tesco provides services other than food products through its subsidiaries also (Cassidy, 2012).
Vision statement: Making life better every day is the vision of Tesco. Tesco wants to become the champion for its customer and help customers in enjoying the better quality of life. Tesco believes that customer wants a quality product at the reasonable price so it is our job to deliver this in the right way. The objective of the Tesco is to meet the needs of a customer and provide satisfaction to them.
Marketing strategy helps the company in providing the competitive advantage in the retail industry. Tesco senior management formulates a strong marketing strategy considering the elements of a market mix (Cassidy, 2012). The marketing strategy of Tesco focuses on the following points:
1. “Tesco Plc” provides a comprehensive range of products along with food products. Tesco made available these products in its supermarket stores. Products of Tesco Plc includes food and grocery, clothing, technology, health and beauty, home appliances, car accessories, and entertainment & books etc. The range of products is very large that the consumer does not want to go anywhere, all the demands are fulfilled at one place. Along with this Tesco also have petrol stations and a range of banking services. Tesco becomes the largest retailer of petrol (Cassidy, 2012).
2. Tesco utilizes two ways to distribute its services to customers one is offline and other is online. Supermarkets chain, superstore, and express stores are the mode of offline retailing. Tesco operates its online business through website “www.Tesco.com”. Customers who are not comfortable with offline shopping can make shop through online. The popularity of online sales channel is continuous increases as compared to traditional offline sales channel (Kim & Hallsworth, 2016).
3. The pricing strategy of Tesco is the main marketing mix which gives the competitive advantage to it from other competitors in the market. Tesco sales its product at lower cost. The aim of Tesco is to reduce purchase prices and other operational costs so it offers its products to an ultimate buyer on reasonable price. The company uses economic pricing, psychological pricing and product line pricing etc strategies to control prices of its product (Kim & Hallsworth, 2016).
4. Tesco also adopts different promotional tools for advertisements of its products. Tesco adopts campaigns for advertisements. Regular advertisements on TV, radio newspaper and magazines help in creating customer faith and belief.
5. Tesco aims at providing effective services to its customer. Tesco offers thousands of job opportunities and makes a good use of its human resources also (Plimmer, 2010).
6. The company provides its services in many other countries of the world. The quality of good is providing excellent value to the customer’s money and builds a strong brand image.
7. Tesco regularly make attempts to improve its services and innovate ways of improving customer shopping experience
8. Tesco serves a large number of customer’s needs not only in the UK but in other countries also so it covers the large share of the market and become a market leader in the food and grocery industry (Plimmer, 2010).
Tesco provides the wide range of food products of good quality to a large number of buyers using different distribution channel. These all features help Tesco in creating its brand image and gaining competitive advantage in the market. People are techno-friendly they don’t want to go for shopping so Tesco provides online services option at one point to them. Those who don’t want shop online then supermarket chain and superstores options are available to them where they get everything as per their need (Durrani, 2015). Brand image, online service distribution channel, increasing market share, and leadership are the strengths of the company which provides opportunities to it in health and beauty services and non-food retail services and gives it the competitive advantage from others.Tesco become successful because it makes good use of each P of its marketing Mix. It adopts designed marketing strategies to remain competitive in the market (Durrani, 2015).
Primark is a clothing retailer multinational company operates in United States, United Kingdom, Netherland, France, Germany, and Ireland etc. Primark is also operating as the subsidiary of food and ingredient retail group Associated British Foods. Primark offers trendy clothes at economic prices. The wide range includes clothing accessories for kids, women, and men. It offers footwear and beauty products to its customers. Primark offers trendy and innovative clothing which creates value for the money of customers. Primark is not a manufacturer of products but it works with suppliers to produce goods as per specification (Kite, 2014).
Zara and Marks & Spencer are the main competitors of Primark.
Vision, mission, and goal of Primark: Vision of Primark is to become the largest retailer and cater needs of its customer at the effective price. Primark wants to spread its business geographically and make easily accessible its product for the consumers (Kite, 2014).
Due to product specification Primark is leading brand in clothing and gaining a competitive advantage in the market. The marketing strategy of Primark includes following points:
1. Primark Adopt product specification. It offers trendy and fashionable clothes as per the demand and requirement of the customers.
2. It targets specified group of customers and develops its product as per their need.
3. The aim of the Primark is to provide the quality product at affordable prices to its customers (Lea-Greenwood, 2013).
4. Sportswear is the new segment of Primark’s product range.
5. Primark adopts differential pricing strategies for its product. Primark offers its product at different prices in order to meet critical factors of an economy that affects purchase decisions of the customers.
6. It uses all its resources and provides good quality of products to its customer. It uses “People” in the better and efficient way (Lea-Greenwood, 2013).
7. Primark uses media and other advertisement tools for making the promotion of its products. It advertises its product through TV, Radio, Newspaper, and magazine. E-mails and social media are also used by Primark for marketing its products.
8. Products of Primark are available at around 325 stores in the different countries. Primark also operates its business in online mode through its website www.Primark.com.It has the strong presence in the market of Europe (Adamovic, et. al., 2012).
9. Primark creates a strong brand image in customers by providing them clothes at cheaper prices.
10. Primark is also performing its corporate social responsibility by paying long-term compensation to victim’s family in Rana complex incident in Dhaka which helps in improving company’s image towards public (Adamovic, et. al., 2012).
Primark is the leading and largest retailer of clothing. It provides clothing material along with other accessories for every age group. It follows product specification. It provides clothes as per recent trends and customer demand so there will no chance of wastage of stock. Because of its effective services, it creates the brand image in customer’s mind. It adopts the organized business structure to run its business. It offers a product at low prices and creates customer satisfaction also. The main focus point of Primark is Fashion conscious individuals. Its pricing structure and offering trendy clothes to customers help it in gaining competitive advantage from its rivals (Tran, et. al., 2015).
Tesco and Primark both are operating in retail industry but serves different needs of their customers. Tesco if a food and grocery retailer and Primark is clothing retailer. Tesco provides the wide range of food products to its consumer at cheaper cost price through online and offline mode and Primark offers trendy clothes at reasonable prices to its consumer. They both have the strong brand image and effective price strategies so they enjoy the competitive advantage in the industry. This report also contains vision and mission statements along with marketing strategy of both the companies. This report explains that company working in any sector it requires a strong marketing policy for sustainable development.
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