School Of Management

MBA second trimester

Delivering customer value through marketing

An Assignment on (Tesco Case Study).

SUBMITTED TO: Submitted By:

Dr. SHILPA BHAKAR Faisal Hakimzad
MBAN1MG20065
1. Introduction
Tesco is an English-headquartered retailer. The corporation serves tens of millions
of clients every week, has 7,000 locations worldwide, and employs over 500,000
people. Although grocery retail is the company's main line of operation, it has
expanded into the retail banking and assurance sectors. For the purposes of this
blog, Tesco's retail operations will be our sole focus.
Tesco's retail locations carry more than 40,000 distinct items. Tens of thousands of
different raw materials are shipped globally daily for their procurement teams to
work with.
Tesco is a British multinational groceries and general merchandise retail chain. It
is the third-largest retailer in the world. Tesco was founded in 1919, as a company
that set up market stalls. The company did not receive its name till 1924, with the
first store even resembling the modern marketplace not opening until 1931. Over
the years, it has evolved into the supermarket chain we know today, that has
emerged to become the biggest retailer in the UK.

2. SWOT Analysis
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework
used to evaluate a company's competitive position and to develop strategic
planning. SWOT analysis assesses internal and external factors, as well as current
and future potential.
A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look
at the strengths and weaknesses of an organization, initiatives, or within its
industry. The organization needs to keep the analysis accurate by avoiding pre-
conceived beliefs or gray areas and instead focusing on real-life contexts.
Companies should use it as a guide and not necessarily as a prescription.

STRENGTH
 Efficient supply chain network
 Leading market share is almost 27% inGreat Britain.
 Geographically diversified.Tesco has a strong global presence.

WEAKNESSES
 Failed operations inJapan and theStates.
 Participating in multiple segments resulting in inefficiency.
 Decline in operating profits.
 OPPORTUNITIES
 Expanding to emerging markets such as South Korea, Indonesia, and Turkey.
 Strategic alliances with other brands to attract more customers.
 Capitalizing further on increased reliance on online channels.
THREATS
 Low price supermarkets. The business of the firm is affected by the
introduction of supermarkets that offer very low prices and discounts.
 Competition from other giants like Walmart, Lidl and Aldi threatens Tesco's
market share.
 Economic reforms and consequences of Brexit in terms of tariffs, trade
barriers,import and export taxes,etc.

3. Identification of problem
Tesco may have a 27% market share, but its rivals are constantly one step ahead. The
market was saturated and there was a chance and a need for expansion in other areas
because of all of these enormous grocery conglomerates that had both offline retail
outlets and online delivery services. Tesco reasoned that there is room for development
and expansion if there is any market share left.
How to succeed in internet sales without incurring significant costs is another difficulty.
Because of the hassle and high expense of shipping and handling, previous attempts to
thrive in the online selling market for commodities like furniture failed.

4. Solutions to solve the problem

Tesco employs a smart web approach that makes online shopping simple. The brand's
dedication to value and convenience is reflected in Tesco's Commerce strategy. Visits
to websites are equally effective as in-person purchases. Like their physical stores,
Tesco's website is straightforward to use. Over the years, Tesco's internet business has
done incredibly well. Online sales for the business grew by 15% as a result in Ireland
and South Korea. Tesco's performance in the UK grocery industry has likewise seen
double-digit increase. Tesco has continuously enhanced its online operations since 2010
in order to give customers a worthwhile online shopping experience.
Additionally, Tesco has introduced Click and Collect services that allow its customers
to order their groceries online and pick them up from any Tesco-operated store.
Customers can purchase apparel, general commodities, and electrical items through
Tesco Direct's online store. Customers frequently use the Tesco app to make payments
and direct purchases. In 2020, the app debuted a unique function that generated a lot of
buzz. Customers now have the option to use the app to shop in-store by simply scanning
the items as they are purchased. Once finished, customers can easily check out using a
cashier counter or self-service option. and complete the payment using their preferred
method.

Recommendation
Below are some recommendations to ensure the smooth and effective running of Tesco
PLC.
1. Development / diversification of products: Tesco already has a sizable presence
in Europe and several regions of Asia, but it is essential to develop fresh and
inventive product lines to keep up with the industry's expanding competitiveness
and dynamic system. To determine the precise demands of the market now and
anticipate potential changes in the future, it will need to do additional market
research and evaluation.

2. Market Development: Tesco should prioritise market expansion through

collaborations and diversity through product innovation. Not so much because
they give businesses access to several markets at once, but rather because they
also assist them increase their global competitiveness by utilising the resources
of their partners, global alliances are a means to speed up this process. It can
investigate markets like China and Japan, where there is a large untapped market
and where consumer spending has consistently increased. However, this will
improve the company's operational capabilities for improved service delivery
while also increasing the company's market presence and profit.

5. Conclusion
The corporate philosophy of Tesco is primarily one of cost leadership with a focus on
accessibility, choice, and customer satisfaction. Tesco is well-known both domestically
and abroad for emphasising cost, comfort, and value. The supermarket chain's continued
prosperity depends on the Clubcard since it attracts repeat customers who increase sales.
Tesco's customer-centric strategy has helped it develop a strong devoted client base and
a global brand. On the other hand, the basis of its appeal is that it is perceived as a
convenient and reasonably priced chain.
In order to make every shopping experience as pleasant and gratifying as possible, the
retailer actively encourages customer-focused activities on its internet and in its physical
shops. The retailer will continue to be at the forefront of the market thanks to this simple
yet effective strategy.

Faisal Hakimzad
MBAN1MG20065