Essay Sample on Tesco's Brand

Introduction

Competitors' actions also have a significant influence on the outcomes of a company's marketing function. According to Craig and Campbell (2012 p.12), marketing objectives should incorporate the likely competitor response. In a scenario where expanding market share by definition will trigger the competitor response, implying that the strategy will be ineffective. Competition has compelled Tesco to deliver quality products and services to the customers by prioritizing an improvement on its value-for-money offers. Tesco is constantly facing a threat from substitute products and services. However, Tesco's continued provision of quality groceries and at relatively lower prices has enabled the company to withstand fierce competition in the retail food market from key rivals such as Morrisons, Walmart, and Waitrose.

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Furthermore, Tesco faces the threat of new entry of new competitors. Recent findings indicate that many firms are joining the grocery retailing market, which can be attributed to the growing population (Hall and Fletcher 2009, p.4). Intense competition in the food retailing segment has prompted Tesco to take drastic changes in its marketing plan, which impacts directly on its marketing function.

Stakeholders who include individuals, organizations or a community who have an interest in the firm also have a significant influence on the performance of the company's marketing function. Suppliers and the community are some of the stakeholders, whose actions cannot be necessarily controlled by a firm but have a significant influence on its marketing activities (Craig and Campbell 2012, p.7). Suppliers usually deliver the required raw materials to the company thus playing a vital role in product development. For years, Tesco has maintained a higher bargaining power over its suppliers, by establishing a cordial and mutual healthy relationship, thus helping an organization to improve its output to the market.

Market Position Analysis for Tesco PLC

Marketing position refers to the consumers' attitudes towards a brand or a product as compared to the competing products. It is characterized by the processes of developing an image and identity of a particular product for customers to perceive it in the desired manner (Craig and Campbell 2012, p.8). Tesco is a reputable global firm, which has continually grown for the past eight decades. Tesco also has about 4,330 stores in 14 countries, but largely operates in the United Kingdom (Bhasin 2018, p.4). Initially, Tesco specialized in retailing of food products, but it has recently diversified its range of products to include clothing, insurance, and telecommunications. Tesco's listing on the London stock exchange with FTSE 100 Index is an indication that the company is among the most capitalized corporation in the UK (Gwynn 2017, p.2). When it comes to the current, market share for the firms in UK Food Retail Market, Tesco is ahead of its close competing brands such as ASDA, Sainsbury's, and Morrison as demonstrated in table 1. Below.

Table 1. Share of the leading firms in UK Food Retail Market

The latest sales figures indicate that Tesco is the best performing entity in the UK food retail market. According to the 2017 quarterly sales, Tesco increased by 2.2%, which solidified its position in the market against the big four players: ASADA reduced by 0.1%, Morrison increased by 1.4% and Sainsbury's went up by 1.2% (Qwynn 2017, p.3). Tesco has continually re-focused on the consumers and their changing needs, tastes, and preferences, which includes simplification of ranges and sales promotions. This has led to the attraction of the new customers as well as encouraging them to shop frequently at Tesco's stores. Between 2012 and 2015, Tesco had experienced a steady decline for spend per visit for its clients, but this issue was resolved by improved promotional strategies which orchestrated an improvement in its volume of sales.

Tesco's brand has significantly improved in the last four years according to BrandIndex Buzz Score rankings. The use of competitive prices has enabled Tesco to strengthen its market position over its rivals. Regardless of Aldi and Lidl continued acquisition of market share in sales, Tesco has countered this through 'Brand match' strategy as well as rebranding the company's label offering (Dudovskiy 2016, p.4). A constant increase in Tesco's Value Score since 2015 is another indication that the firm is maintaining its market leadership in the food retailing industry. Through functioning, Tesco has also focused on the provision of a wide range of high-quality products and services to the targeted market.

Symbolic and price positioning are also critical approaches utilized by Tesco in its marketing mix to enhance its market leadership. Symbolic positioning is primarily based on the values, expectations, and aspirations of the customers. Tesco has effectively applied this model in trading its wide variety of products in grocery and food segment (Dudovskiy 2016, p.4). For example, through symbolic positioning, Tesco has declined the used cotton which is planted explicitly in the regions where child labor is applied in cotton production. Also, it is common for Tesco to sell its Fair Trade products range to a particular narrow segment for relatively higher prices as a way of satisfying the customers' self-percept...