Promotional stategy

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Promotional stategy

PROMOTION:

Promotion is generally referred as awareness created towards the introduction of new product and also the availability of the existing products by means of selling activities and advertising.The main aim of promotion is to aware the consumers of the products (services) uses and benefits.Promotional activities help the firms to position their products in the correct way in the market to reach the respective consumer.An effective promotional activity consist of simple and a clear message which is aimed at a specific group of people,reached thru the medium of print adverts or television.The message should be consistent and reach the taget audience creating a desired reponse.Promotional activities involve advertising,personal selling,public relations and sales promotions.Generally promotion is communicating the public in an attempt to influence them to buy the firms products and services.

Promotional strategy:

One of the Tesco's key strategy in the promotional activity is its clubcard loyalty scheme where it has been a huge success for them which lead them to have a increased share in the market,not only this which led them to market leader but it has been their competitive prices in the market,they had fresh vegetables,fish,chicken,mutton,beef and all sorts of necessary day to day items which were outsourced from the farmers,fish mongers,butchers directly.They also open a number of convenience stores in every possible place therefore they appeal to a huge number of customers in the market.

This therefore had a huge response when they had introduced the Clubcard plus debit card.They reach all classes of the society they had a luxury product called”Tesco Finest” and also budget version named “Tesco value” are present in all their stores,which shows how they promote their market to reach all the classes.

Advertising:

It can be defined as any paid form of non-personal promotion transmitted through a mass medium. The sponsor should be clearly identified and the advertisement may relate to an organisation, a product or a service. The key difference, therefore, between advertising and other forms of promotion is that it is impersonal and communicates with large numbers of people through paid media channels.(ref 1)

Tesco has always insisted in all their ads that they are the cheapest selling supermarket in the whole of UK where they claim that the price of their products is atleast a penny less than their competing firm in an advertisement featuring Prunella scales and Jane Horrocks comparing bills between tesco and a other store. They also have advertisement taglines like ”every little helps”, ” we sell for less”, “1billion pounds off”, ”is your nearest the dearest”, “low prices every day because we 10000 everyday”. There had been a number of advertisement campaigns stating they are cheaper to their direct competitors.

Personal selling and sales force:

According to fill (2002, p. 16), personal selling can be defined as:

“An interpersonal communication tool which involves face to face activities under taken by individuals, often representing an organisation, in order to inform, persuade or remind an individual or group to take appropriate action, as required by the sponsor's representative”. (ref 2)

Tesco is vastly occupied in all fields of business the only company in the Uk to have a broad market, as for tesco's concern they do not need any personal selling since they vastly deal with day to day products, and being convenience stores, the only personal selling they do is online shopping, which is not related to this category of marketing.

Sales promotion:

According to the institute of sales promotion, sales promotion is:

“A range of tactical marketing techniques designed within a strategic marketing frameworks to add value to a product or service in order to achieve specific sales and marketing objectives”.(ref 3)

The store offers a wide range of promotional offers in various times, if they open a store they would give away vouchers having a 2 pound discount on every six pounds spent for every passerby, clubcards, computer tokens for schools. Below are the examples of new year sales promotion.

E.g

Examples of the New Year promotions include:
•Danepak Maple Cure Back Bacon 220g, was £3.00, now £1.50
•Ripen at Home Nectarines, was £2.99, now £1.49
•Extra Large Pineapple, was £3.00, now £1.50
•Baking Potatoes 2.5kg, was £1.92, now £1
•Dolmio Original Bolognese Pasta Sauce 750g, was £2.12, now £1.06
•Princes Tuna Chunks In Brine 4X185g, was £5.39, now £2.69
•Maryland Choc Chip & Hazelnut Cookies 150g, was 86p, now 43p.
•Kellogg's Special K Oats and Honey 425g, was £2.87, now £1.40
•New Covent Garden Plum Tomato & Sweet Basil Soup 600g, was £1.97, now 98p
•Pampers Baby Wipes Sensitive Refill 63, Buy One Get One Free, £2.29
•Gillette Fusion Sensitive Skin Hydra Gel 200ml, Buy One Get One Free, £3.89
•Technika 24" Full HD TV with Free View & Dvd, was £279.97, now £229.97
•Acer 4GB, 15.6" Laptop, was £497, now £397
•Garmin Sat Nav, 215W, was £149.97, now £99.97

*The average basket was made up as follows:

This year

Last year

Bananas loose 1kg

£0.98

£0.99

Tesco luxury soft toilet tissue white 12 roll

£5.03

£5.04

Beck's bier 18x275ml

£10.00

£14.15

Hovis soft white medium 800g

£1.14

£1.24

Tesco 2 salmon fillets 240g

£2.98

£3.23

Gala apples pk class 1

£1.57

£1.58

Nescafe original coffee 200g

£4.44

£4.45

Heinz baked bean in tomato sauce 415g x 4 pack

£2.16

£2.18

Pg Tips pyramid 160 teabags 500g

£3.00

£3.45

Lurpak slightly salted spreadable 500g

£2.00

£2.41

Walkers variety 18pk

£1.70

£3.03

Baking potatoes 2.5kg tray

£1.99

£2.28

Tesco beef mince 900g

£3.50

£3.75

Mccain Homefries 2.25kg

£2.25

£2.52

TOTAL

£42.74

£50.30

(ref 4)http://www.tescoplc.com/plc/media/pr/pr2009/2009-12-31/

Public relations and publicity:

Stanley(1982, p. 40) defined PUBLIC RELATIONS as:

“A management function that determines the attitudes and opinions of the organisation's publics, identifies its policies with the interests of its policies with the interests of its publics, and formulates and executes a programme of action to earn the understanding and goodwill of its publics”.

Tesco is considered as one of those companies which maintain a good relations with the people as per sources they attend to every problem faced by a customer in any of their stores, they do-not compromise in their quality either where they have good relations with their suppliers to maintain their high standards of quality to their customers. Tesco indulges itself in a wide range of charity operations in the country for

e.g(ref 5)

We aim to give at least 1% of pre-tax profits to charity and in 2008 our contribution was £57 million or 1.9% (compared to 1.95% in 2007).

Tesco are committed to being a good neighbour and to acting responsibly for our communities on a local, national and international level.

These are few examples in how they actively involve in public relations through charity and other operations. The public relations of the company are taken care by the following companies

Public relations (ref 6)

Tesco uses a range of Public Relations firms including:

* Weber Shandwick Worldwide;

* 72 Point (part of the SWNS Group - the UK's biggest independent press agency);

* CHA, the workplace communications consultancy;

* Good Relations;142

* GGK Public Relations (Poland);143

* The Maitland Consultancy.

* Lawson Lucas Mendelsohn (LLM)144 .

Marketing communications budget:

Pickton and Broderick (2001, p. 67) define integrated marketing communication as

“....a process which involves the management and organisation of all agents in the analysis, planning, implementation and control of all marketing communications contacts, media, messages and promotional tools focused at selected target audiences in such a way as to derive the greatest economy, efficiency, effectiveness, enhancement and coherence of marketing communications effort in achieving predetermined product and corporate marketing communications objectives”.

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