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MS4UK41O – Principles of Marketing Assignment
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Introduction and Background
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As it is a well-known fact that to be firm in the competitive market an organization need to make a proper plan and adhere to it no matter what, which ultimately gives the establishment soaring excellence. However, one such company working in the retail industry, prominently known as “Tesco” will be put major focus in the following section. “Tesco” is one of the fastest emerging companies in retail Industries within the UK. Further, Tesco is reputed and renowned in terms of the retailer that deals in the selling of various kinds of items for consumption such as grocery, to non-food products. Moreover, Tesco's manufactured goods line includes “supermarkets”, “convenience stores”, “hypermarkets”, and “superstores” (Rowles, 2022.)
This report will shed light on the account, vision, operation and principles of the concerning company as well as their internal and external environment. Moreover, the external factor of the concerning company will be studied through the “Pestle analysis”. In addition to that, a competitive study which refers to “SWOT analysis and to substantiate the study the sources of the secondary data will be fastened with the analysis (Gong, 2022)
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Environmental Analysis (Macro-Micro)
2.1 Internal Factors
- Product Issues: Tesco plc was rated as the “worst store for food safety” by the UK. Also, the UK's most popular supermarket chain reported about 148 incidents of food illness from “quiches and wraps”, “Doritos” and the adversely overpowers Sainsbury's, “Asda”, “Waitrose”, “Morrissons”, or “M&S”. The “super-six” also rated Tesco poorly in various food categories such as “fermented fruit presse”, “dodgy cheese” and “undeclared nuts” (Joy, d.)
- Marketing issues: It is apparent that in a competitive environment, a firm has several problems, with marketing being one of the most important (Krummel, 2022). The corporation has also faced issues such as consumer apathy, the “horsemeat scandal”, and the “accounting scandal”. Moreover, improved technology helped Tesco regain its former shape and regain consumer trust.
- Issues related to the HRM of Tesco: It is apparent that in a competitive environment, a firm has several problems, with marketing being one of the most important. The corporation has also faced issues such as consumer apathy, the “horsemeat scandal”, and the “accounting scandal”. Moreover, improved technology helped Tesco regain its former shape and regain consumer trust (Brandenburg et al., 2022).
2.2 External Factors
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Factors
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Description
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Political Factor
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The company’s home market is viewed as politically stable, making the international market dependable, even though “Brexit” slowed progress (Dumon, McDonald and Schmitz, n.d.) Tesco also owns 60 Hypermarket stocks in Hungary. “Lidl” is fighting for market share with aggressive pricing.
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Economical Factor
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Retail businesses are often recession-proof and sensitive to changes in consumer demand (Brandenburg et al., 2022). However, the constant closure of the company has prompted consumers to seek out high-rated replacements, allowing Tesco to raise profits. Moreover, wags are an economic element that costs the firm tonnes.
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Social Factor
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Tesco is found to be adaptive it has made a lot of changes concerning social changes. Moreover, these changes in customer desire throw both opportunities and challenges (Dumon, McDonald and Schmitz, n.d.). The former in the sense that new market and customers and the latter for the competitiveness that it gives birth to.
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Technological Factor
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Technology plays a vital and decisive role in the productivity of the company. A mechanism “Club Card” has been brought out by Tesco plc in 1995 which led the company to great success (Henry, 2021). Moreover, the easy access through the online platform has made it more approachable and this method attains the impetus faith of the consumers.
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Environmental Factor
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The eco-friendly materials used in the setup include “cotton” and “wool”. Adversity affects corporate operations. The organisation has made excellent efforts to dispose of garbage and maintain an eco-friendly environment, which has proven useful to a good range (Henry, 2021).
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Legal factor
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There are laws for every corporation, even Tesco. The law prohibits the corporation from lowering wages or selling dangerous alcohol to minors. Further, in 2021, the firm was sued and fined £7.56 million for selling expired food in Birmingham (Dumon, McDonald and Schmitz, n.d.).
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3. SWOT Analysis
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Strength
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Weaknesses
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The largest store in Britain:
Tesco has covered the British market in terms of acquiring money. Its annual turnover is found to be in the year 2018/19 was around 63,911 million pounds and the yearly profit has increased by nearly 11% in 2018/19 (Bousoula, 2022).
Big Market Share:
Tesco captures a prepossessing amount of shares of around 27% (Bousoula, 2022).
A large amount of Employer:
The concerning company gives a lot of opportunities in terms of employment. in addition to that, it has created jobs for more than 500000 people across the world and it has proffered around 743000 jobs till now (Bousoula, 2022).
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Fail in the foreign market:
In the year 2012 Tesco strived to expand the business to Japan and US but after some years the businesses has to face a major loss in responses because the business couldn’t sell overseas operations and perform its plans efficiently offshore (Brandenburg et al., 2022).
A seismic shift in Club card:
The Company has made a change in the “club card” and all the consumers were unbeknownst to this which made them furious and in response to that started preferring substitutes (Bousoula, 2022).
Financial flaws:
the profitability of the company gets affected due to the high “credit card debt”. However, an organization uses debt for their benefit by escalating the revenue if debt lessens its profit.
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Opportunities
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Threats
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Extension of Jack’s Store:
The concerning company has launched a discount store namely “Jacks” which has been proven effective so far. Moreover, Tesco plc is supposed to invest more in the same because it can make a handsome profit competing with the other companies like “Lidl” and “Aldi” (Moura, 2021).
Coalition with other Brands:
To develop and bring the business to a stature it has been trying to partner with some other working companies which majorly focuses on providing good service to its customers and satisfying them.
Online accessibility:
It has arranged an online platform for the consumer's easy reach and it has also fallen in the court of the company (Moura, 2021). However, through the online availability of the products the concerning company has managed to captivate a large amount consumer.
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Christmas Scandal:
The concerning company had brought out an advert which seemed to be funny but in most of the cases it was proven to be offensive as it was recorded as the disparagement of the faith of Christmas (Soegoto, 2021).
Supermarket Rivalry:
Another major threat for the concerning company is the existing competition in the market. Some of the major competitors of the concerning company are “Walmart”, “Carrefour”, and “Aldi”.
National Economic Crisis:
All the chief factors like “taxations”, “credit”, set of laws and policy posed by the government are a severe warning to the augmentation and performance of Tesco and to fight against such intricacies it should acutely and creatively strategies its plans (Soegoto, 2021).
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To conduct the SWOT analysis presented above, a wide array of authentic and reliable sources of secondary data have been utilized. These contents have been obtained using various reliable websites and scholarly works of eminent researchers of the past who have contributed greatly in the direction of investigating the concerned subject matter. The section below will present a list containing the various sources which have been extensively made use of a part of this analysis:
- Managing Organizational Change: Leadership, Tesco, and Leahy's Resignation by Nwagbara (2010)
- Sustainability in Ethiopian Textile and Apparel Supply Chains by Brandenburg, Bizuneh, Teklemedhin and Woubou (2022)
- Modelling and Improving the Distribution Processes of a Greek Supermarket Company utilizing DMAEV Methodology and Digital Transformation by Bousoula (2022)
- Product Development using SWOT Analysis. International Journal of Entrepreneurship & Technopreneur (INJETECH) by Soegoto (2021)
- Equity Research in Food & Retail Industry-TESCO PLCby Moura (2021)
Conclusion
To sum up, it has become quite obvious from the above discussion that Tesco is currently one of the leading retail industries actively working in the UK. Additionally, it has faced major issues while running the business which sometimes made the profitability of the firm drop deep down while it has come up with major measures which led the company to higher excellence. Moreover, the internal and external factors which have been discussed above established the concerning industry as the most effective and best service provider in comparison to the other serving retail industry.
Recommendations
- Public relations: Using public relations (PR) for retail marketing has become increasingly popular in recent years. This is especially true given the exponential expansion of many organizations, including the number of thriving small enterprises in general. However, when it comes to purchasing items for retail, public relations may also assist highlight the importance of satisfying the criteria of the retailer. This means that a product presentation strategy must be devised for retail companies (Brittain and Degnen, 2022). When conducting a product presentation, it will be needed to determine whether or not the audience prefers meeting face-to-face or using an efficient technology-based method that requires the company to deliver product documents for inspection.
- Expansion into emerging economies: The growing middle class in emerging economies opens up new sales opportunities for modern businesses. Simultaneously, a stable and deregulated global policy promotes international alliances and market liberalisation. In addition to this, the company's global activities and corporate criminality are excessive. In Thailand, Tesco was sued for exploiting suppliers. It was found guilty of charging manufacturers for slotting, charging suppliers for admission, advertising, and putting own-brand items next to comparable branded things. In Ireland, Tesco was fined by the government for selling items below the cost price, undercutting other retailers. It was also penalised for selling items cheaper in the UK than in Ireland. And in 2001, Tesco workers in Ireland were struck for unpaid wages. Tesco employees earn $4.85 per hour, which is 20p to 25p less than Tesco competitors (Krummel, 2022).
References
Bousoula, A., 2022. Modeling and Improving the Distribution Processes of a Greek Supermarket Company utilizing DMAEV Methodology and Digital Transformation
Brandenburg, M., Bizuneh, B., Teklemedhin, T.B. and Woubou, A.M., 2022. Sustainability in Ethiopian Textile and Apparel Supply Chains. In Africa and Sustainable Global Value Chains (pp. 195-215). Springer, Cham.
Brittain, K. and Degnen, C., 2022. Living the everyday of dementia friendliness: Navigating care in public spaces. Sociology of Health & Illness.
Dumon, D., McDonald, K. and Schmitz, R., Innovative offers outside the field of traditional sport.
Gong, Z., 2022. Chinese Super League Champions Disband Before New Season. Journal of Sociology and Ethnology, 4(1), pp.119-122.
Hastings, G., 2022. Hyperconsumption: Corporate Marketing vs. the Planet. Routledge.
Henry, A., 2021. Understanding strategic management. Oxford University Press.
Joy, J., Implication of the cyber threats and its issues in the business process organization; A case study of Tesco.
Krummel, D., 2022. Expansion in the Retail Sector—Market Entry Strategies in Consideration of Formal and Informal Institutions: A Tesco Case Study. Open Access Library Journal, 9(2), pp.1-19.
Moura, M.B.L.D., 2021. Equity Research in Food & Retail Industry-TESCO PLC (Doctoral dissertation, Instituto Superior de Economia e Gestão).
Nwagbara, U., 2010. Managing Organizational Change: Leadership, Tesco, and Leahy's Resignation. E-Journal of Organizational Learning and Leadership, 9(1), pp.56-79.
Rowles, D., 2022. Digital branding: a complete step-by-step guide to strategy, tactics, tools and measurement. Kogan Page Publishers.
Soegoto, F.A., 2021. Product Development using SWOT Analysis. International Journal of Entrepreneurship & Technopreneur (INJETECH), 1, pp.1-10.
