Tesco Marketing Strategy

D1: Evaluate the effectiveness of the use of techniques used in marketing products in one organisation

In this assignment, I will be evaluating the effectiveness of the use of marketing techniques in marketing products in Tesco.

First, I will be talking about the relationship marketing techniques used by Tesco. This strategy brings some advantages to Tesco as it allows the company to understand its customers and strengthens the relationship between them. When customers make purchases in stores or online, the Clubcard automatically records all the details of the product purchased on a database and Tesco can then send discount vouchers and special offers which are specially adapted according to the buying trends of the customer.

The loyalty

Over the last few years, Tesco has been massively successful, and has a market share of around 30% in the UK. Tesco puts an intense amount of dedication and seriousness into its marketing which have proved to lead to increased sales figures and profit. Its success is largely associated with its powerful brand name and iconic logo. The major aspect of branding which Tesco makes use of is the strong use of its corporate colours, which are red and blue and a slogan; ‘Every Little Helps’. All the own brand products are packaged in mostly red and blue which is perceived as meaning dependability, trust, wealth and attention. It promotes its colour in adverts, store fronts, plastic shopping bags, staff uniforms, delivery vans,

However, it can be a very risky process. In the case of Tesco, as it has a well-established brand name, it can launch itself into new fields with less risks of failure, as the brand is already known. For example, over the last few years, Tesco has moved on and from grocery only, it has now turned to marketing areas like: Tesco banking, Tesco pet insurance, Tesco mobile, Tesco utilities… This extension has allowed Tesco to gain a wider range of customers, as the loyal customers are most likely to purchase most of their necessities from the whole Tesco range. This can therefore, considerably increase their market share and increase their overall profit level. Alternatively, brand extension can also have severe impacts on a business if it turns out to be a fiasco. For instance, if Tesco was not successful with its brand extension in even one area, this piece of information could make headlines and thus attract the attention of all consumers and other competitors. If the new product or service field fails, there could be a negative impact on the core Tesco brand altogether. This will destroy the company’s image and as a result, people may be reluctant to do their shopping