TESCO-Marketing-Plan

7/28/2019 TESCO-Marketing-Plan

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SWOT Analysis of Tesco in UK:

Strengths;

Tescos reputation for low cost products, can gain fair-trade cotton clothing

substantial market share in the UK. Tescos growth in the insurance sector

provides financial strength to Tesco in UK. Another important factor is the

increasing growth of online sales and fair-trade cotton clothing could be

included in these sales. The Brand recognition of Tesco in UK is an important

strength and will help fair-trade cotton clothing.

Weaknesses:

The weaknesses of Tesco are that it is still largely dependent on UK for its

sales. it is doubtful if it will support fair-trade cotton clothing objectives. The

business model that Tesco is using is suitable for UK and not for the rest of

the world. Even though Tesco sales are growing from low priced items there

is fall in sale of non-essential and high priced products. If fair-trade cotton

clothing are perceived as non-essential, its sales objectives will not be

achieved. Tesco has suffered from bad debt, credit card arrears and

household insurance claims. This is financially debilitating.

Opportunities:

Tesco can exercise a high degree of buying power to ensure that it has

economies of scale in its fair-trade cotton clothing line. The growth

opportunities n Europe and Asia provides excellent opportunities for growth.

Most importantly, the growth of online sales shows excellent opportunity for

increasing the sales of Tesco.

Threats:


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Increasing fair-trade cotton clothing prices can lead to lower sales and lower

profits for Tesco. Change in consumer buying patterns n the UK because of

change in technology can lead to loss of customers in UK.

SWOT Analysis of Tesco in Germany:

Strengths;

The Tesco brand recognition gives it a good start for fair-trade cotton

clothing in Germany. The Germans are known to avoid uncertainness,

ambiguity and unquantifiable risk. In case of Tesco they are buying from a

well recognized brand. The brand value of Tesco will work very well in

Germany. Further, the global market place recognition of Retailer of the

Year 2008 provides substantiation to the German customer about fair-trade

cotton clothing.

Weaknesses:

German financial industry is very circumspect and will consider the debt of

Tesco in the UK before it gives finance for store expansion for fair-trade

cotton clothing in Germany. The reputation of Tesco for acquiring competing

store chains may also be held against the company in Germany. Acquisition

is a risky move, and Germans are averse to risk.

Opportunities:

Fair-trade cotton clothing in Germany has good opportunity because it has

the endorsement of Tesco brand; it has the marketing channels of Tesco, and


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the backing of an excellent product mix. If fair-trade cotton clothing offers a

good product for money it will get a good reception in Germany.

Threats:

The low priced fair-trade cotton clothing could lead to price wars. In addition,

there can be low profitability because of competitive moves for Tesco. Finally,

international competitors like Wal-Mart could add a cotton line in Germany to

compete with Tesco.

BIDGET SHOING FAIR-TRADE COTTON CLOTHING LAUNCH EXPENSES

Items

Expense

() In

MillionsProduct Sourcing Expense 1.2

Cost of Display 2.3Cost of Advertising 250

Cost of Public Relations 80Cost of Extra Sales Persons 120

Cost of Launch Events 70Cost of Endorsements 25Total Budget for launch of fair-trade

cotton clothing 548.5

UNIT FORECAST FOR THREE YEARS BY QUARTER (millions of units)

2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 20

uarter Quarter

3

Quarter

4

Quarter

1

Quarter

2

Quarter

3

Quarter

4

Quarter

1

Quarter

2

Quarter

3

Quart

40.6 0.9 1.2 0.8 0.5 1 1.4 1.2 0.8 1.5


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The method of market research used for the plan is the focus group

interview. There were forty eight focus group interviews conducted of which

30 were in the UK and 18 were in Germany. Each focus group consisted of

Between 12 to 15 participants. Each of these were customers that visited

Tesco stores and showed interest in buying fair-trade cotton clothing.

The customers were asked question relating to the type of clothing they

would prefer to purchase from a Tesco store. There was a number of specific

suggestions received from the participants and based on the inputs received

from the focus group, the fair-trade cotton clothing line was developed.

In addition, the focus group participants were asked the price they would be

willing to pay for the products. The inputs from the focus groups helped

Tesco in pricing its fair-trade cotton clothing line n both the UK and

Germany. Since the focus groups were conducted in the vicinity of Tesco

stores, the participants were asked the location in Tesco stores that would be

suitable for the display of fair-trade cotton clothing. This enabled Tesco to

develop a strategy for placing fair-trade cotton clothing n Tesco stores.

The participants in the focus group interviews were asked which method of

communications they preferred. There were suggestions received for the

media an contents of advertising, internet advertising, advertising on social

networking sites, and using e-mails. Further, suggestions were received on

the types of promotions most favored by the participants. Ideas were

generated relating to the sales persons of fair-trade cotton clothing. Finally,


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the focus groups revealed their opinions about the publicity methods that

were most credible for them.

References:

www.quickmba.com/strategy/swot/

www.netmba.com/strategy/swot/

www.mindtools.com Problem Solving -

rapidbi.com/created/SWOTanalysis.htm

lwww.helium.com/.../19333-what-is-a-swot-analysis-and-how-can-i-use-it -

www.marketingteacher.com/.../lesson_marketing_budget.html

www.score.org How-To Reading

Roomsbinformation.about.com/.../marketplansample/a/impactplan.htm -

www.webcredible.co.uk/user-friendly.../focus-groups.shtml

www.smallschoolsproject.org/PDFS/focusgroups.PDFw

ww.bolton.ac.uk/Students/StudyResources/.../Focusgroups.pdf

www.wisegeek.com/what-are-focus-groups.htm
http://www.google.com/url?q=http://www.mindtools.com/pages/main/newMN_TMC.htm&ei=6ebsS_z5C8y_rAeX_LyXBg&sa=X&oi=breadcrumbs&resnum=6&ct=result&cd=1&ved=0CDUQ6QUoAA&usg=AFQjCNHbDv1vn2CjZM-ET_qM85wTvlMPZwhttp://www.google.com/url?q=http://www.mindtools.com/pages/main/newMN_TMC.htm&ei=6ebsS_z5C8y_rAeX_LyXBg&sa=X&oi=breadcrumbs&resnum=6&ct=result&cd=1&ved=0CDUQ6QUoAA&usg=AFQjCNHbDv1vn2CjZM-ET_qM85wTvlMPZw

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TESCO-Marketing-Plan