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Tesco's marketing concepts
Tesco's marketing concepts
Tesco history
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INTRODUCTION
Tesco is one of the best known names in the high street. It is a large public limited company (plc) with approximately 165 000 shareholders. By 1995, Tesco had become the largest food retailer in the UK, overtaking Sainsbury's. The company operates over 800 stores throughout Europe.
BUSINESS OBJECTIVES
Tesco sets objectives for the four main areas of its business:
customers operations people (ie employees) shareholders.
Figure 1: The Tesco Steering Wheel
Page 5: Development of Tesco, Tesco's presence in Central Europe
After serving in the First World War, Jack Cohen used his savings and started selling groceries in Londonl East End markets. Tesco was founded in 1924. The name was based on the initials of T E Stockwell, a partner in a firm of tea suppliers, and the first two letters of Cohen. In 1929, the first store was opened in Edgware, North London. The business prospered and, in 1947, Tesco Stores (Holdings) Ltd was floated on the Stock Exchange. In 1956, the first self-service supermarket was opened. Apart ftom opening new stores, Tesco has expanded by taking over other businesses. For example, in 1992, it bought 57 William Low stores in Scotland and, in 1997, it purchased 109 stores in Northern Ireland and the Republic of Ireland ftom ABF pie.
Tesco is an ambitious company with plans to open more new stores in the United Kingdom (UK). However, in recent years, a major part of the firm's strategy has been to open stores in other European countries.
Page 6: Tesco's stores 1998, Opening a new Tesco store
Figure 3: Tescos Stores, 1998
stores Sales (£m)
Ireland 109 1028
France 103 644
Hungary 43 57
Poland 31 22
Czech Republic 6 84
Slovakia 7 61
United Kingdom 534 14640
OPENING A NEW TESCO STORE
Tesco's sales in Europe have risen steadily. Expansion into central European countries, such as those shown on the map in Figure 2, can be risky because sales might not be as high as expected. Average incomes and expenditure are lower in these countries, but have the potential to grow. The cost of a good site is also much lower than in the UK. The company intends to open more new stores in Europe, requiring more investment.
Each superstore contributes between £2 million and £3 million annually to the local economy, in wages and other expenditure by the store.
The marketing department advertise for Tesco in hope of getting more customers. They could advertise through the TV, newspaper and online. This would have a positive impact on Tesco international expansion because they would be reaching possible future customers faster. The chain of command is really important in Tesco as it away to pass information around the organisation.
Store information provided by Tesco: Text Box: Tesco Superstore, our most frequent layout, with groceries and non-food [IMAGE] - Coffee Shop/Cafe [IMAGE] - Pharmacy [IMAGE] - Deli Counter [IMAGE] - Fish Counter [IMAGE] - Petrol Station [IMAGE] - Pay at pump Task 1 This organisation chart for Tesco Plc shows that even though the Chief Executive is in charge of Tesco Plc most decisions are still made by the Board of Directors: * [IMAGE]Tim Mason - Marketing & E-commerence Director * Davis Potts - Retail Director * Andrew Higginson - Finance Director * John Gildersleeve - Commercial and Trading Director * Terry Leahy - Chief Executive * David Reid CA - Deputy Chairman * Rowley Ager - Company Secretary * Philip Clarke - IT & logistics Director Each individual store is divided Text Box: into this organisation chart. [IMAGE] The store manager has span of control over all the deputies who have span of control of their section. When some thing needs to be done the store manager would ask his deputise who would divide the work between other workers following the chain of command. Task 2 Aims are what businesses set out to do.
Tesco is a Public limited company (PLC), which means it is owned by shareholders and it is in the private sector Also known as the for-profit sector and Activities outside the public sector organizations and businesses that provide services and products based on market demands for a cost with the purpose of producing a profit for owners and shareholders in the organisations. Tesco is the biggest employer in the UK with over 250,000 employees and over 1,800 stores.
M&S are one of the UK's leading retailers of clothes, food, home products and financial services. Some 10 million people shop with us each week in over 375 stores. In addition M&S have 155 stores managed under franchise in 28 territories mostly in Europe, the Middle East, Asia and the Far East, stores in the Republic of Ireland, nine wholly owned stores in Hong Kong and M&S own the US supermarket group, Kings Super Markets. The main objectives of marks and Spencer's are as follows:
A big box retailer is defined as a retail store that occupies an enormous amount of physical space and offers a variety of products to its customers. The term "big-box" is derived from the store's physical appearance. Located in large-scale buildings of more than 50,000 square feet, the store is usually plainly designed and often resembles a large box (Investopedia). Some of these stores, such as Wal-Mart, K-Mart and Target, provide consumers with a wide variety of goods. Others, deemed “cat...
Tesco is trying to gain as high profits as they can because company investors or shareholders might thing about investing more money in to the business because of its success and development. Tesco wants to make its investors satisfied because it may affect business future.
In now days Debenhams PLC is a top department group of 166 stores in the UK, Republic of Ireland and Denmark, and employs 25.000 people. In addition, it controls 60 international franchise stores in 23 countries. Debenhams offers products for women, men, children and houses. It seeks to complete the in-store and online business in order for customers to have the maximum of choices for their shopping [2].
Meijer, Inc. was established in 1934 by founder Hendrik Meijer opened his first store in Greenville, Michigan, he opened his first grocery store in Michigan during the great depression. Meijer currently has 200 stores located in 6 Midwest states; with headquarters in Walker, Michigan. Starting as a simple grocery store, the company has grown into a big box superstore that combines grocery shopping with department store shopping in the same facility. Supercenters are becoming more popular, but Hendrik Meijer had the first of its kind. Transitioning from grocery to a supercenter was the ideal step, and the first in the industry to expand on the concept.
This report will investigate the British retailer Marks and Spencer. It will analyse why decision making, planning and goal setting are important to the organisation. Decision making is a process of identifying problems and opportunities then resolving them. Mission planning is the way that organisations aim to achieve their goals. All organisations have goals, these are the reasons that the company exists. Boddy (2005:178) states “A goal is a desired future state for an organisational unit. Goals provide a set of detailed objectives for an organisation’s desired outcomes”. Within this report there is a brief outline and history of Marks and Spencer. It will then look at the missions and goals of the organisation and will go on to critically evaluate planning and decision making processes that the organisation could be using. To conclude it will summarise the findings.
Tesco is the largest retailer in UK. It is a public limited company which sells multinational grocery, health and beauty product, household items and toys etc. Since Jack Cohen founded Tesco in London’s East End at 1919 and now it has sprouted branches in 12 countries with over 7,800 stores include franchises. Tesco hire over 530,000 employees and they serve over tens of millions customers per week. Tesco
They are highly skilled in areas of design, technology, training, and research and development. In addition, Tesco has a superior presence in the area of manufacturing.
Tesco has been particularly successful because of its powerful brand. It has a reputation for value, low prices and for being customer focused. Its brand and associations have helped the company to expand into new sectors and markets. Tesco has also been strong in public relations, advertising and building profile in catchment areas on a local level. This local approach to marketing appears to be a key driver for success. Tesco has a good range of products, including own label products. It seeks to provide excellent customer service, and ensure high levels of customer satisfaction.
Managers face difficulties in trying to understand the encionment. First ¡°the environment¡¯ encapsulates many different influences; the difficulty is making sense of this diversity in a way which can contribute to strategic decision making. The second difficulty is that of uncertainty, managers typically claim that the pace of technological change and the speed of global communications mean more and faster change now than ever before.
In 1985, IKEA entered the US market. For 11 years, IKE opened twenty-six stores in the northern area of America. But according to Frynas and Mellhi (2011), “these stories were not as successful as their counterparts in Europe” (p. 4). Just like in Japan, IKEA could not fulfill customer satisfaction. It is feasible to note that IKEA’s international or global strategies should have been moderately different from their domestic strategies. Essays (2013), argues that
The advancements in the technological world have allowed supermarket chains and other national stores to quickly dominate the market and are driving out the concept of the ‘local stores’. This surge in the market has seen shares rise and profits bulge with the three main contenders in mind being Sainsburys, Safeways and Tescos who now serve the whole of the UK between them and are the household names of the shopping world. The ICT input to these businesses is vital in that it provides speedy service; controls stock levels and will even allow bank balance transfers to be carried out with minimal difficulty or technical experience.