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How To Develop An Operational Strategy And Quality Marketing Essay

Tesco plc was founded in 1919 by jack cohen in the east end of London and in 1924 its brand was appeared. In 1929 the jack cohen opened the first tesco store and in 1947 tesco was put forwarded on the London stock exchange as "tesco stores (handings) limited" and first self service store was opened at the same time and in 1956 the first supermarket was opened. Since then tesco has grown rapidly not only in the UK but also has diversified in 14 international markets from Europe to asia, and from UK to USA. ( Tesco plc, 2008)


Tesco initially started with food and drink, has expanded into different range of product, such as electrical , clothing, home entertaintment, financial service , books, telecome, internet service, health insurance, baby and toddler product and so on. Tesco is the UK's largest retailer by overall sales and the national market share with earning over £2 billion and it's the world's third largest grocery retailer.( Tesco plc, 2008).

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These days tesco is facing so many problems. Tesco has so many competitors such as, Asda, Sains burry, Ice land. Tesco should set its mission according to its competitors. If tesco don't set its mission according to its competitors, it can't survive for the long time and start to decrease its market share. Tesco should have the mission that increase its product and set a such price that customers feel attraction towards tesco.


Tesco should have the vision for long term. Tesco should increase its branches in all over the UK and as well as all over the world such as in America, china, Canada. These are the market where tesco can increase its market share. This is the period of competition if tesco will not think according to its competitors it can't survive for long time. First tesco should see the vision of its competitors and then start to make its vision.


Tesco has so many internal strength. The main strength is tesco has so many branches. Its branches in every where. People can easily reach in tesco this the main strength. Tesco is the second largest super store of the world and it is well known store of the world. In some areas tesco has small branch and in some area it has big branch. The other thing through which customers go to tesco that is its tesco card when people shoping from the tesco. It gives to its customer a special discount . because of this special discount tesco increase its customer.

Promotional Objectives:

The main objectives of promotion is to influence targeted customer groups.

To contributes to sales revenue directly by performing two powerful functions; It conditions and reinforces. The communication mix promotional activities prepare the way for the sales-person by informing customer prospects of the value of the company's products or services. The communication mix reinforces sales efforts by reminder reinforcement and after-sales presentations.

Build brand equity-uses the communication mix to reinforce brands value and identity and encourage stronger preference, which should strengthen relationships competitively.

Product information-offer details about product uses, availability, buying incentives or convenience of use

Manage demand and sales- work to stimulate primary demand (for new or innovative products) or selective demand perhaps for a mature product) or to temporarily dampen demand when the firm is unable to meet demand.

Communicate differentiation and enhance positioning. Convey significant factors of differentiation and positioning relative to competitors products

Influence attitudes and behaviour-promote a favourable inclination toward the company and products while encouraging some action.

In an advertising campaign like try something new today the campaign promotional approach can be heavily influenced by the other elements of the marketing mix-product, price and place or distribution methods.

Promotion in relation to Product -"Anything that is capable of satisfying customer needs".

This definition includes both physical products as well as services. The process by which companies distinguish the product offering from the competition is called Branding.

The product features and the type of person who might enjoy the benefits of the product have to be included in any promotional activity. The first element in the marketing mix is the product. Once organisations have a product, then all the other elements in this marketing mix can be engaged to meet customer needs. In order for a product or service to succeed, it must offer clear, distinct and non-arguable value to the buyer. If we look at Tesco's "Try Something New Today" we can see the benefit of its products and services.

Product decisions

Branding Quality Features

Benefits offered

Promotion in relation to Price- The second element in the marketing is pricing. Pricing is the only mix, which generates a turnover for the organisations. The remaining 3'ps are variable cost for the organisation. It cost to produce design a product, its cost to distribute a product and cost to promote it. Price meets it own demand. Price points are a function of the degree of innovation found in the product. The more innovation and thus value added, the more latitude you have in setting a price. Setting a price that serves the customer well and maximizes profits to the company is a must. Pricing is also the only element of the marketing mix, which generates revenue rather than costs. It also has an important role to play in creating an overall image for a product. No organisation can hope to offer a high quality product with a low price- the price must be consistent with the overall image. In a similar way the promotional activity must reflect the pricing, in try something new today campaign is promoting their business by advertising in Television, Magazines, News papers, and E-Commerce.



Pricing strategies Competitive

Product line



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Promotion in relation Place - The third element in the marketing mix is place. Place is about getting your product in front of your customer. Place describes the marketing decisions, which are involved in ensuring products, are available where the consumer would expect to buy them and it may have a significant impact on promotional activity

Tesco's placed its products to its retail outlets and using more traditional advertising campaign to create awareness to its customers to buy its products.


Motivation can be defined in a variety of ways, depending on whom you ask. If you ask someone on the street, you may get a response like, "It's what drives us" or "Motivation is what makes us do the things we do." As far as a formal definition, motivation can be defined as "forces within an individual that account for the level, direction, and persistence of effort expended at work," according to Schermerhorn, et al.

Motivation is a set of forces that cause people to behave in certain ways. Motivation is an important consideration for managers because it, along with ability and environmental factors determines individual performance. On any given day, an employee may choose to work as hard as possible at a job, to work just hard enough to avoid a reprimand, or to do as little as possible. The goal for the manager is to maximize the likelihood of the first behaviour and minimize the likelihood of the last one. This goal becomes all the more important when we understand how important motivation is in the workplace.

Factors effecting motivation

Safety needs

Social needs

Esteem needs

Job satisfaction




Relationship with work colleagues

Motivational practices at tesco's

At Tesco's they motivates their people by treating them how they like to be treated, by:

By looking after them

Promoting healthy living

Supporting them

Tesco offer their staff an attractive benefits package, including wages that are amongst for the store staff, flexible hours and leave, free shares, free uniform, subsidised meals, childcare vouchers and a pension.

Through their Privilege Card scheme, all staff with over 12 months' service receives a 10% discount on their shopping at Tesco. They also give their staff an advantage of discounts at, on their financial products and other products including holidays, gym membership, childcare vouchers and health cover.

'Save As You Earn' is a cash saving scheme. It is launched in October each year and is open to staff who have completed at least one year's service at Tesco's.

This scheme motivates those staff at tesco's who have completed at least one year's service and those who have not yet completed their one year, they will be motivated, they will stay and work hard to complete their one year's service.

'Buy As You Earn' is a tax efficient share-buying scheme for staff. It is open to staff with more then three months' service and allows staff to buy Tesco shares on a regular basis with great tax advantages. Buy As You Earn is in its third year and nearly 30,000 staff has joined and more are coming on board every month.

Tesco provide an award winning defined benefit pension scheme that now has 135,000 members, nearly 60% of eligible staff. All staff are encouraged to join the Scheme as soon as they join Tesco, and we also automatically join staff if they 25 or over and have been with Tesco's for a year.

Tesco have an extensive communications plan that both encourage staff to join and helps existing members appreciate the value of tesco's defined benefit pension scheme. Tesco's Pensions Team visits Tesco sites all around the country to give presentations and to have one to one chats with staff, allowing them to ask questions face to face and receive helpful information.

This career average pension scheme's design is also very suitable for those with frequently changing working hours, and gives members permanent reward for any extra hours that they work.

Tesco are committed to developing their people to bring out the best in everyone, and estimate that they spend around £23 million each year on training. Tesco provides all their staff access to training programmes and a personal development plan, with six-monthly reviews, to ensure that their staffs have the right skills to do their job. Through Tesco's Talent Spotting programme, employees have a career discussion with their line manager to plan their career at Tesco.

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