TESCO MARKETING MIX
III. The Marketing Mix
The concept of a marketing mix is best described by (1990, 43) claiming that it is "the set of controllable marketing variables that the firm blends to produce the response it wants in the target market." It is composed of four Ps: product, price, place, and promotion. In the context of Tesco, their entry to the Chinese market should significantly adapt to the culture of the consumers in the said location. However, the company should take into keep in mind the basic standards to which their company adheres to. Changes in the provision of services in terms of the four Ps should not completely deviate to the standards inherent to the company. The preceding discussions reveal the suggestions of the researcher.
The management of Tesco should set off product development strategies once they have taken control of their shop in China by marketing their existing products, exporting products in different provinces of the country and in so doing pressing forward on the possible opportunities of boosting the company’s market penetration and market share. Tesco should consider restoring or revising models of their products to provide the Chinese customers what they want and what they need. In this way, Tesco could develop the store’s own brand products which could be marketed strategically within the territory of China.
Looking at the situation of Tesco, one way that it could acquire cost advantages is by enhancing process efficiencies, expanding exclusive contact to a large supplier of lower cost materials, or steering clear of several costs in general. If rival organizations in the country are incapable to lower their costs by a comparable quantity, Tesco will be capable of sustaining a competitive advantage anchored cost leadership.
To develop its success in its retail operations, the Tesco should make multi-million pound investments in store expansion in low-income districts and localities. By getting involved with similar-minded public and private sector groups like local community based associations, colleges, and chambers of commerce, the Tesco will be able to open sites in economically disadvantaged districts in China. Targeting these areas will enable the company to gain the trust of local luminaries and gain favour from the local government by providing employment to the locals.
The Tesco’s approach should constitute a long-standing strategic plan that centres on generating value to expand the loyalty of their customers which take account of preserving a well-built central Chinese business, to be as strapping in non-food as food products and services, to develop globally and to set the ball rolling on retailing services like on-line shopping.
The bottom-line is that the object of the marketing mix is to satisfy the customer. What Tesco must do is to basically know the needs of the customer in their target country. However, the company should not centre on merely knowing the needs of the consumers. It also has to extend a good relationship with them by ensuring a competent provision of its product and services. Along with these is the provision of a suitable customer care service to reinforce their satisfaction.