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Case Study: Tesco’s marketing strategy

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  1. Introduction
  2. Retail scenario in the UK
  3. Impact of competition
  4. Growth of grocery market
  5. The marketing strategy adopted
  6. Conclusion
  7. References

United Kingdom grocery market accounts for 12.5% of all houses hold spending, making it the third largest expenditure after housing and transport in the world. In the year 1990's Tesco faced strong competition and needed a new strategy as they were good in buying and selling though they forget about the customers. A simple question ?what are we doing wrong? and after that they were fully concerned about there customers and started growing as an international retailer. In last ten years Tesco changed from being the number three supermarket in United Kingdom, so it is perfectly fair to identify why they are successful and what they are successful at and what they are doing to achieve that success.

[...] According to the journal of database marketing and customer strategy management (2007, pp.14, 143-145) supermarket that ate Britain's in the words of the famous independent newspaper headline .On other hand, the simple fact of Tesco's retail dominance can't be denied: in every spent on retail in the UK is spent at Tesco. Eleven million households use club cards every week. By the above statement it is clearly understandable that Tesco is rising in the field of retail but to hold the success Tesco implementing various strategies but the main issue is to retain the customers rather than acquiring new customers it was already proved that retaining of customers is less expensive than acquiring the new customers. [...]

[...] Staff and something we call super ordinate goal.? Some studies, however, have taken a different approach according to Terence Conren, the first of eight principles drawn up to guide that development of habitat (1960) ?Chose products that appeal to customer identify as our target thus giving the collection of homogeneity that is not found in those shops that try to offer the a little of everything to everyone' due to the efforts of the customer orientation these super malls are had started to diversify themselves as for Peter Davis of J.Sainsbury ,(1982) In journal of retail and distribution management, he commented that becomes even more important for the retailer to differentiate himself from his competitor by creating a personality or image which is different and which is his Pierre Martineau, positioning strategy in retailing (1989) defines store image as the way in which store is defined in a shopper mind, partly by its functional qualities and partly by an Aura physiological attribute Again William Keayin in his book Battles of high street explained that shops were really just warehouse for exchanging goods for money and design for arrogance about retailers that a certain grade of product was good enough for the masses. [...]

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