Marketing mix The largest sector in the UK is currently the food and drink industry, which provides employment for over two million people in the areas of production, manufacturing and retailing. Tesco is one of the largest food and grocery retailers in the world, operating around 4,300 stores. Product Throughout the years Tesco has diversified its business portfolio in areas such as clothing, financial services, telecoms, car insurance, and Internet services.Furthermore, Tesco has a wide range of products which they categorised by quality, price and consumer taste, such categories include: Finest, Value, Ethnic group dishes(Chinese, Indian) ,Light choices,Vegeterian and many more.
Price Price politics should be correspond with the company strategy and corporative aims. Also you need have efficient reaction to the external environment. Prices in tesco are suitable for product they offer, so the target market is different from low social class to rich customers.So tesco can involve more and more customers. PLACE Tesco it was the first retailer in the world to offer a complete home shopping service by 1996. The grocery sales are available within the delivery range of selected stores; all the goods ordered are hand-picked by the staff within each store.
The disintermediation process helps Tesco offer their products at low prices due to the reduction in operational costs. Once an order is placed on one of their products, they delivered directly to the customer.Both disintermediation and business-to-consumer help Tesco maximise its profits, as well as being a more effective competitor against its main industry rivals. Tesco operates under four different banners: Extra, Superstore, Metro and Express each banner have different significance such as work hours, location, proportion of area and range of products.
Promotion Tesco began investigating the benefit of a loyalty card in 1993, by collecting data from customers and then sending them targeted offers. Tesco Clubcard give you chance to collect points, when you are buying any goods from them and then change that points for other products from Tesco shop for free or have a dinner in a nice restaurant also for free. Tesco has all the information it needs about its customer’s buying behaviour. The Clubcard can tell what each customer buys and when they last visited the store.
Tesco can persuade customer buying behaviour by offering vouchers on products which are similar to those that are being bought most by each customer.