Why Tesco Can Sell The Products Cheaper Marketing Essay

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A leader should have a good reputation. The leader must be honest, people only will follow them. Example, if the leader is not honest, of course the people is confidence to follow him. They cannot require or force people to trust him in a short period, because they have to do something to make people have confidence in them. A leader should care about the people. If they can feel you are caring them, they might remove some negative message from you. Example, maybe they think you are selfish but after you care about them, they might think actually you are not bad also. So, caring also can make people have confidence in you.

Communication is important between the leader and the other people. Many friends even family, they might misunderstand each others because their communication got problems. A good leader should have a good communication skill, only he can tell others a right message. He also is willing to guide people and list down what they are wrong so they can do well in the future. Leader are focus on the horizon with people, they will not saying something are look like order people. Example of the leader, John is a good leader in the friend, his friends are trust him very much and he treat his friends very good also. His friends always ask him some idea when got trouble. But he is not a good manger in his company, he is no good in manage others because be a good manager have to control the employee to done their work. Because of this reason, he always scolds by his boss and finally he is fired.


Manager is the people who manage the department or a company. A manager is very important for a company because they need manager to manage the department. Manager has to set the objectives. He may set goals for the group or the department, and decide what the job they have to done to complete the objectives. The employees may know the way they are need to do. So, if the manager already set the objectives for them, they got a target and try to complete it.

Manager should know their situation. They have to know what they need to do when they become a manager. Mostly company goals are gain more profit, so the manager know what the company need and how manage the employee to complete the goals of the company. A good manager also should focus on the long term success and not a short term success. If you are the manager in the company, you are cannot expect the employees can learn some skills, change their performance in the short period of time. You should give some time for them to learn, because sometimes they are cannot absorb all the things, they need more time to learn the new things. Manager not same with leader is manager is more control or manage people, and the leader is willing to help people. Managers maybe only tell the employee to achieve the goals with any methods, they maybe do not care what method you use, and maybe either the manager also don't know how to do. Example of the manager, Peter is a manager in the company. He is very clever and gain many profit for the company. The boss is look good for him because he gain many profit for the company. Sometimes he makes the decision for the company is good. Not every employees like him because sometimes his decision is not very good but maybe he is the manager so they have no choice only can follow his decision.

Leader & Manager

Be a leader is not easy, if want to be a leader and a manager is more difficult. They have to make some good decision for the company and also need to manage the employee.

Want to be a good manager and leader, communication skills is an important factor. If they don't have the correct way to communicate, they cannot know what the boss need and what the employee dissatisfied. Although need a good communication skills is important but they also need to keep the distance with the employee. Maybe the managers are close with the employee but they also need to keep the distance with the employee, sometimes if they very close with their employee, employee might not follow their command in the future.

Example, Adam is the manager in the company. For the boss, he is the good manager. For the employee, he is a good leader. The employee are very respect Adam and willing to follow his way to done the job. Adam is not very friendly during the work, he always keep the distance with the employee. Adam will use action to prove he is a good manager, that's why the employee willing to follow him and respect him.

Question 2

What is cost leadership strategy?

A firm pursuing a cost-leadership strategy attempts to gain a competitive advantage primarily by reducing its economic costs below its competitors.

What is mass market?

The mass market is the group of consumers who occupy the overwhelming mass of a bell curve for common household products. This group consists of such a wide variety of people; their desires towards a certain product may be totally different from each other.

What is niche market?

Niche market is a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. You can think of a niche market as a narrowly defined group of potential customers. Example: Ferrari, Hallmark.

Cost leadership strategy- Mass Market

Supermarket is the mass market of the cost leadership strategy that I choose. Then, the company of the supermarket I choose Tesco.

Tesco is a supermarket; they sell many brands of the product. They also sell their own brand product as well. Their competitor is Giant and The Store.

Why Tesco can sell the products cheaper?

I will use marketing mix (4ps) to identify how the Tesco can sell their own brands product cheaper than other market leading brands:

Product- Tesco Choice product is developed with quality, taste and performance on the same level with other market leading brands. During the blind tasting sessions, more than 80% of the customer after try to use the product prefer Tesco choice product than the other market leading brands. This information resource from http://www.tesco.com.my/html/ourbrands.aspx?ID=3&PID=14&LID=1&Repost=True.

Price- Tesco Choice product is cheaper than other brands product because they want to attract customer to buy their product. Example: Tesco Choice Cola and Coca-Cola. The Tesco Choice Cola is sells RM1.99 each, Coca-Cola is sells RM2.78. The information resource from http://www.tesco.com.my/WebLITE/Applications/productcatalog/uploaded/pics/Promotions/WeeklyPressAd/Thisweek/pg4.jpg and http://www.tesco.com.my/WebLITE/Applications/productcatalog/uploaded/pics/Promotions/WeeklyPressAd/Thisweek/pg6.jpg.

Place- Tesco is place the supermarket quite far and not near on the centre city because the loan of the centre city is more expensive. If their loan is cheaper so they also can sell the cheap things because they can cover back the money. Example: Tesco Kampar. Tesco Kampar is not place on the centre of Kampar city; it places on quite far from the Kampar. This resource from http://www.tesco.com.my/html/stores.aspx?ID=165&PID=166&Name=Tesco%20Kampar&LID=1&Repost=True. There got an address in the link.

Promotion- Tesco are confidence their product are suitable for the customer. They can sell the cheaper things because Tesco is less on the advertising. Their packaging is also important for the price because Tesco choice product just have a simple packaging with the best cost so they can sell the cheaper price than other brands product to the customer. This information resource from http://www.tesco.com.my/html/ourbrands.aspx?ID=3&PID=12&LID=1.

Cost leadership strategy- Niche Market

Coffee is the niche market of the cost leadership strategy that I choose. Then, the company of the Coffee I choose Starbucks. Starbucks is a coffee company; they sell many different type of coffee. They also sell their own brand product as well, like the Starbucks bottle, chewing gum or more. Their competitor is Old Town and Coffee Bean.

Starbucks are less advertising but still got many people buy the coffee and the food from Starbucks. Compare with their competitor- Old Town White Coffee, Old Town White Coffee is doing advertisement on radio and television, so they have to take more budget to do the advertisement.

If Starbucks want to buy the coffee bean from the supplier, they just use the outright prices to negotiate with the supplier. Compare with other coffee shop, Starbucks can help them to provide stability for the supplier. Starbucks is able to ensure their future coffee bean supply and they will sign contract with the supplier for few years. Of course, the price is cheaper than others.


After done this assignment, I learn what are the cost leadership strategy, mass market and the niche market. I learn how to use the strategy to analysis the cost leadership strategy. The cost leadership strategy is very important for our business.

Look back the question 1; I learn how can be a good leader, manager, leader and the manager too. After done this question, I think it is helpful for my future work. The information resources for this assignment I discuss with my classmate and find from the internet.