Marketing Strategies for Tesco

Question: Discuss the current position, client problem with Tesco and supplier chain management system. Answer: Introduction This report has been prepared to identify the client problem with Tesco that was established in the UK in 1919. It is one of the leading and biggest retail stores in the UK. The company values the customers and constantly work towards developing quality services. Tesco carries on with the operational activities in more than 14 countries. Customers are also offered online grocery services through which the best services are rendered. Strategy plan of the company includes innovative plans and distinctive operational activities, which improves the quality of the work (Tesco PLC, 2013). Current position of Tesco Tescos operational management has been to offer quality services to the clients at the low price. Customer retentions are done by loyalty card reward system, and effectively handling the supply chain management system. In order to sustain the tough competition, the company has analysed the risk and complexity within the business. Through effective planning and implementation process, the management has attempted to overpower the challenges that impact the business performance. The store operates in 4 different models like Tesco express, Tesco Metro, Tesco Superstructure and Tesco extra. Through such services the stores intend to offer the best possible services to the clients (Karolefski, 2005). Structure The store operates from different parts of the world. The prime objective of the store is to take care of the clients requirements on a timely manner. In order to retain the clients, the store offers different types of loyalty benefits which include club cards. Tesco believes in target promotional activities, which is done to render quick and reliable services to the customers. This also helps in overpowering the challenges related to competition. The company is known for the effective delivery system which provides maximum benefits to the clients (Peart, 2010). Client problem with Tesco The management of the company believes in improving the values for the customers. The major problem with the management is to render quality services to meet the expectations of the clients from different parts of the world. Challenge arises due to increase in the competition level, and changing expectations of the client. The changes with the quality are expected to be introduced by improving the quality of services provided to the clients at present. Client problem is always related to the quality and sharing of accurate information with the buyers. The challenges has been analysed and the corrective measures are introduced for retaining the clients for the company. Some of the problem faced by the company includes sharing accurate information, analysing the expectations of the clients, and upgrading the quality services (Ruback, 2006). Situational analysis The situational analysis is conducted by evaluating different factors that could affect the performance of the company. Through this process, the internal and external factors impacting the business activities are analysed by the management (Mills, 2002). SWOT Strengths Weaknesses Increase in the market share Challenges faced in the international market Increase in the sales value Major dependence on the UK market and strategies for rendering the better services to the clients. Opened new branches Capital expenditure programs improve the supply chain management system for the clients Needs to work on improving the visit of the company in the international market Increase the customer value and render the best services Opportunities Threats Increase in the non-food retail Structural change in UK can affect the business Spread awareness about health food and beauty products increase in the competition Plans to grow in the international market Expensive international growth Marketing Mix The marketing mix is one of the important tools through which the challenges involved with the customer approach and sales improvement can be effectively handled by the organization. 7 ps are analysed to evaluate the performance of the company. Price Tesco offers lowest possible price to the clients, and this is done through effective price planning strategies. The company intends to offer maximum information about the services to the clients as this will encourage in improving the buying power. Product There are different types of products and services offered by the company to the clients. Through effective supply chain management system, the authorities ensure to make the products available for the clients. The process includes analysing the needs and preferences of the potential buyers through which the sales are improved. Promotion- Online and offline promotional activities are undertaken by the company. Through this process, the details of the services rendered to the clients are highlighted. Online promotional activities include rendering the best possible information that would help the clients in making decision (Mitchell, 2005). Place The place where the products are intended to be sold is being decided. This is done through effective planning strategies. The management choose the best place through which the necessary changes can be introduced within the company for increasing the sales. People The marketing strategies are developed and introduced by the management to improve the sales. In this process, different age groups of customers are targeted as this would improve the sales process for the organization (Hogbin McSherry, 2007). Process The method followed by the management to increase the sales and visibility of the products are discussed through this process. In this method, the challenges faced by the management are analysed, as this will help in improving the performance. Physical evidence through the physical evidence method, the company analyse the challenges or risks that can be faced by the management for exaction of the task. Supplier chain management system In this process, the challenges and other factors associated with the product distribution is analysed. As the operational activities are carried out in different parts of the world, the management proposed to introduce standard methods for carrying out the operational activities. With supply chain management system, the services and the quality are proposed to be improved (Hill Hill, 2011). Conclusion The supply chain management system and the business plan are some of the important factors through which the productivity for the company can be increased. In this process, the corrective steps can be introduced by analysing the challenges involved with the process. The involvement of the clients is quite important as this will help in increasing the sales and visibility of the products for the customers. In this method, the management has to adopt and implement effective strategy through which the changes can be implemented. References Child, P. N. (2002). Taking Tesco global. Mckinsey Quarterly, 1, 137-138. Hadfield, W. (2006). No business case for item-level RFID tags unless done by suppliers, Tesco Trail Finds. Computer Weekly, 18, 8. Hill, A., Hill, T. (2011). Essential operations management. London: Palgrave Macmillan. Hogbin, C., McSherry, N. (2007). Tesco: Concerns have been overplayed and strong growth story remains intact. Black Book-The Best of Bernstein-Pan-European Edition (Third Quarter 2007) Karolefski, J. (2005). Tesco rolls out RFID. Food Logistics, 15, 19 Mills, L. (2002). Why Tesco gets it right. In-store Marketing, 1, 19. Mitchell, A. (2005). With chains and loops, Tesco is surreptitiously reinventing retail. Marketing Week, 17, 33. Peart, R. (2010). Dedicated to dot com. Supply Chain Europe, 19(4), 34. Ruback, A. (2006). A new challenge emerging from overseas. Convenience Store News, 42(12), 101-104. Tesco PLC. (2013). Our business. Retrieved from https://www.tescoplc.com/index.asp?pageid=143