P1 Unit 12 Business Analysis

Assignment Title: The role of marketing in organisations

P1: Describe how marketing techniques are used to market products in two organisations.
Task 1 (a)

Tesco
Growth strategy
Tesco has a well established and reliable strategy for growth, which has allowed them to strengthen their business and drive expansion into new markets. The underlying principle for the strategy is to expand the range of business to allow them to deliver strong sustainable long-term growth by following the customers into large expanding markets such as financial services, non –food and telecoms and new markets abroad, initially in central Europe and Asia, and more recently in the United States.
Tesco has grown from selling beans and biscuits to becoming
a major player in almost every area to the retail market, clothing, furnishings, mobile phones, DVD, holidays, financial services, legal advice the list of products Tesco now offers seems endless.
The following link below show how Tesco has grown 2000 to 2010. Tesco launched their website in 2000 this is one of the growth strategies that Tesco has adopted. They launched the website because they wanted to increase their market share, the website has enable Tesco to market their products effectively and thus the company has increased it market share and also promote their products. In 2010 Tesco launched their new zero carbon supermarket due to the fat that now day’s customers are becoming more environmental friendly. So that helped them to get a good reputation and attract more customers within the organisations.
The company is now well on its way to becoming a successful international brand, expanding in Asia by taking over the lotus supermarket chain in Thailand, where customers can now buy scooters (tescooters) and have them delivered to their homes. http://www.tescoplc.com/plc/about-us/tesco-story/# Oxfam
Introduction
Oxfam opened one of the world’s first charity shop chains starting with a shop in Oxford in 1948.
It roots are with a famine relief committee, for Greek victims of war, based in Oxford in 1942.
Current Organisation
Oxfam is an international business, with a consolidated group of 13 organisations, around the world, who all joined together to form Oxfam International.
The fundamental idea of people donating things for free, still keeps the group functioning.
Oxfam GB work with over 20,000 volunteers across the UK, in their shops & outlets.
They raise together £17.1 million towards helping Oxfam.
Oxfam Mission
Oxfam initially was concern with the provision of food to help relieve famine.
Oxfam strategies to help people has expanded to specifically giving people of developing countries, the tools they need to expand their own efforts in food production, and medicine.
They also work with the poorer regions of the world to create fair trade agreements, so that the goods from those regions can be sold at fair prices, and the producers can keep more profit, rather than the exploitation that currently happens.
They also campaign heavily to expand their messages & ideas throughout the world, and deploy people & resources in areas of natural disasters, and conflicts.
Some of the other categories that Oxfam deal with are
Trade justice
Education
Debt aid
Health
Hiv/Aids
Climate change
Animal cruelty.

Definition one
Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Definition two
Marketing is the management process that identifies anticipates and satisfies customer requirements profitably.

The Marketing Concept
The marketing concept holds that the key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets. The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and profitability.

Target market
No company can operate in every market and satisfy every need. Nor can it always do a good job within one broad market. Customer needs
Marketing is about meeting needs of target markets profitably.
The key to professional marketing is to understand their customers’ real needs and meet them better than any competitor can. Some marketers draw a distinction between responsive marketing and creative marketing. A responsive marketer finds a stated need and fills it. A creative marketer discovers and produces solutions that customer did not ask for but to which they enthusiastically respond.
Integrated Marketing
When all the company’s department’s work together to serve the customer’s interests, the result is integrated marketing.
Integrated marketing takes on two levels. First, the various marketing functions-sales force, advertising, product management, marketing research, and so on – must work together. Second must be well coordinated with other company departments.
The company is doing proper marketing only when all employees appreciate their impact on customer satisfaction. To foster teamwork among all departments, the company carries out internal marketing as well as external marketing. External marketing is marketing directed at people outside the company. Internal marketing is the task of successfully hiring, training, and motivating employees who want to serve the customers well. In fact internal marketing must precede external marketing. It makes no sense to promise excellent service before the company’s staff is ready to provide excellent service.
Profitability
The ultimate purpose of the marketing concept is to help organizations achieve their goals. In the case of private firms, the major goal is profit. Marketing managers have to provide value to the customer and profits to the organization. Marketing managers have to evaluate the profitability of all alternative marketing strategies and decisions and choose most profitable decisions for long-term survival and growth of the firm.
Broad business objectives
People often use the words goals and objectives interchangeably. When it comes to drafting a business plan, it is important to understand that the two have very different meanings. Goals are what you would like to happen - they are general intentions with broad outcomes. Objectives on the other hand are precise statements relating to specific outcomes. Objectives can be validated - most of the time goals cannot. For instance, you might set the goal of becoming the leading retailer of green widgets in the United States. This is a broad statement, which you may or may not be able to corroborate. An example of an objective would be: to sell 10,000 green widgets Year One, 25,000 Year Two and 40,000 Year Three. This is a narrow statement that can be substantiated by reviewing your company 's sales reports. In business planning, larger goals often help to define specific objectives, so make sure you set these first.

Smart objective
All businesses need to set objectives for themselves or for the products or services they are launching.
There are a number of business objectives, which an organisation can set:
Market share objectives: Objectives can be set to achieve a certain level of market share within a specified time. For example obtain 3% market share of the mobile phone industry by 2004.
To increase profit: An objective maybe to increase sales 10% from 2003 – 2004.
To survive: The hard times the business is currently in.
To grow: The business may set an objective to grow by 15% year on year for the next five years.
To increase brand awareness over a specified period of time.

Broad business objectives

In February 2006 Tesco announced record profits of over £2.2 billion. These were achieved not only through supplying customers with quality. Variety and value in its core food business, but also through impressive growth in non-food items such as clothes and electrical goods, combined with expansion overseas. The company has also diversified into financial services, gas and electricity supplies, is an internet service provider and estate agent. The next plane is to challenge Marks and Spencer for leadership of the high street clothing market.
Tesco originally achieved success through fast turnover of stock at low prices- a small profit on a lot of items equals a lot of profit. Tesco recent growth now means that it can now benefit from economies of scale by placing huge orders. This enables it to buy direct from producers (such as farmers) on very favorable terms. Tesco can then pass on these low prices to the customer

Figure 1.7 Tesco plc
-profit for 2006
£39,454m
£37,219m
£2,235m

Sales revenue (earned by selling
Goods and services
Business costs
Buying stocks,
Wages, salaries
Transport, light,
Heat, advertising
Profit Taxation shareholders’
Dividends
Ploughed back into the business

Despite the need to make profits there may be occasions when a profit-seeking business is prepared to sell at, or even below cost. In March 2006. For example. 3 percent of sales by the big four supermarkets were below cost, these are a number of reasons why business log on to the Tesco website. www.tesco.com

What are Tesco main aims?

To compare prices with other leading supermarkets to make sure they have a competing chance with prices
1. To maximize sales
2. To grow and maintain the number one retail company in the U.K
3. Tesco wants to outshine their competitors and remain the market leader
4. The main aim of Tesco is to maximize profit
5. To provide goods/services that is cheap and affordable to consumers or the public.
Tesco want to be able to keep their carbon emissions down by making new buildings, they also want to make their business objects which have to follow this method Specific - this means that the business can make some specific objectives that the business wants to achieve, so if they want to hit a certain target of profit within a year they have to make a business plan or model to follow to achieve their goal.
Measurable - this means that if a business wants to make some money, they can measure it in a certain amount of time, so if a business can make £1000 pound in a month, then maybe next month they could forecast making an increase of that amount by studying the business activities throughout that month.
Achievable - this means that a goal that the business can achieve with in a time period, so if a business wants to make £1000 pound of profit in a month, then they could make it happen with the products that they might have to sell.
Realistic - this means that a business has to make realistic goals which that they can achieve, so things like making £1,500 pounds in a week, this is a realistic goal because it could be made depending on the sales in the week.
Time related - this means that each objective is set with in certain time, so it is like a dead line, if a business sets out to make and sell 5 computers in two weeks, then they now have time to create the product and then sell it within the time set.

What are Oxfam Aims?

To Aid third world countries in any way they can
· to relieve poverty, distress and suffering
· to educate people about the nature, causes and effects if poverty
· to campaign for a fairer world
· to encourage western nations to supply aid to third world countries.

Marketing objectives

marketing objectives should be based on understanding your strengths and weaknesses, and the business environment you operate in. They should also be linked to your overall business strategy.
For example, suppose your business objectives include increasing sales by 10 per cent over the next year. Your marketing objectives might include targeting a promising new market segment to help achieve this growth.
Objectives should always be SMART:
Specific - for example, you might set an objective of getting ten new customers.
Measurable - whatever your objective is, you need to be able to check whether you have reached it or not when you review your plan.
Achievable - you must have the resources you need to achieve the objective. The key resources are usually people and money.
Realistic - targets should stretch you, not demotivate you because they are unreasonable and seem to be out of reach.
Time-bound - you should set a deadline for achieving the objective. For example, you might aim to get ten new customers within the next 12 months

What are Oxfam’s objectives?

Oxfam 's aim is to help the poor in developing countries. They try and make a difference in people’s life.
To relieve poverty there several aims and objectives of Oxfam organisation which is quite famous at supporting the people who are in need in around the world whether is Asia or Africa and so on.
One of this organisation 's aim is
“to support children ( children ) who are in need whether is providing food to them or education"
And "to work with others to find lasting solutions to poverty and suffering

Tesco marketing objectives

Their core purpose is to create value for customers to earn their lifetime loyalty. Tesco’s objectives are to increase sales, increase market share, to maximise sale, to grow and maintain the number on Retail Company in the UK, and to kill off small businesses

Task 1(b)
Five Successful Marketing Techniques
1. Keep Adding Something New
Every time you add something new to your business you create an opportunity to get more sales. For example, something as simple as adding new information on your web site creates another selling opportunity when prospects and customers visit your site to see the new information.
Adding a new product or service to the list of those you already offer usually produces a big increase in sales.
The added product increases your sales in 3 different ways:
It attracts new customers who were not interested in your current products and services.
It generates repeat sales from existing customers who also want to have your new product.
It enables you to get bigger sales by combining 2 or more items into special package offers.
2. Become a Valuable Resource
Look for ways you can be a resource for your prospects and customers. Supply them with free information. Help them do things faster, easier, less expensively. You get another opportunity to sell something every time they come back to you for help.
3. Separate Yourself from Your Competition
Find or create a reason for customers to do business with you instead of with someone else offering the same or similar products. For example, do you provide faster results, easier procedures, personal attention or a better guarantee?
Determine the unique advantage you offer to customers that your competitors do not offer. Promote that advantage in all of your advertising. Give your prospects a reason to do business with you instead of with your competition and you 'll automatically get more sales.
4. Promote the End
Result
Your customers don 't really want your product or service. They want the benefit produced by using it.
For example, car buyers want convenient transportation with a certain image. Dental patients want healthy and good-looking teeth without suffering any pain. Business opportunity seekers want personal and financial freedom for themselves and their family.
5. Anticipate Change
Change is the biggest challenge to your business success. The days are gone when a business could constantly grow by simply repeating what it did successfully in the past ...or even recently. Aggressive, innovative competitors and rapidly changing technology make it impossible.
Expect change and prepare for it. Don 't wait until your income declines to take action. Develop the habit of looking for early signs that something is changing. Then confront it before you start to lose business.
Tesco growth strategies
Tesco opened its first store in Edgware, North London in 1929. It gets its name from the combination of the founder of Tesco, Sir Jack Cohen and a partner in a firm of tea suppliers who Cohen worked with, T.E. Stockwell. Since that time, the company has grown and has reflected the changes in retailing. Prior to the Second World War, most grocery stores served customers but self service stores were on their way and, once introduced, allowed stores to grow bigger to become the superstores we know today.
The company floated on the stock exchange in 1947 with an initial share price of 25p. Tesco became a familiar name on the high streets of the UK and whilst it was able to take advantage of commercial economies of scale through bulk purchase of supplies, the existence of resale price maintenance restricted the ability of Tesco to be as competitive as trading conditions now allow. The system allowed suppliers to insist that retailers sold their products for a set price. Tesco used other strategies to build customer loyalty including the use of stamps that could be exchanged for cash or goods.

The Tesco strategy up to this time was encapsulated by the title of Cohen 's autobiography, 'Pile it high and sell it cheap ', but the increasing affluence of customers and the changing needs meant that Tesco altered its approach and moved into opening out of town stores with more attractive interiors. Such refurbishment was also carried out in the existing stores and with the onset of selling petrol at some of its stores it broke the £1 billion turnover level in 1979.
The 1980s saw a continuation in the growth of new stores and also the development of new initiatives. In 1985, Tesco announced its Healthy Eating options with nutritional information and advice on some of its own branded foods. By the 1990s, the move to overtake the other major supermarkets was well under way. The emphasis was on finding new ways of satisfying consumer needs and building customer loyalty. A range of new services and facilities were introduced, including Tesco Metro, a store concept aimed at the high street customer but offering the benefits of a large supermarket. In some respects, this was Tesco returning to the high street after selling off many stores in the 1960s and '70s in the move to join the out-of-town shopping trend.
Strategy
"We have continued to make strong progress with all four parts of our strategy - a strong UK core business, non-food, retailing services and international - by keeping our focus on trying to improve what we do for customers: making their shopping trip as easy as possible constantly seeking to reduce our prices to help them spend less offering the convenience of either large or small stores bringing simplicity and value to complicated markets"
Source: Tesco Preliminary Results 2004/5 (http://tesco.grouptree.co.uk/page.aspx?pointerid=401CA512F5314805AC6456FA62FD1D21)
A similar move saw the advent of Tesco Express, a petrol station with a supermarket providing local shoppers not only with petrol at competitive prices but also a range of essential grocery items. This type of approach also extended to the Tesco Extra stores where both food and non-food items were sold. This proved a direct challenge to some of the larger Asda supermarkets that had sold non-food items like white goods (washing machines, fridges, etc.), gardening equipment, kitchenware, clothing, CDs and so on for some time. Sainsbury 's meanwhile kept its food and non-food services separate with the development of the Homebase chain.
Tesco 's Turnover, Number of Stores and Selling Space, 2001-2005

2001
2002
2003
2004
2005
Turnover (£m)
20,800
23,400
26,004
30,814
33,974
Number of stores
907
979
2,291
2,318
2,365
Selling space (000 sq ft)
28,362
32,491
39,944
45,402
51,772
Source: Tesco Annual Review, 2005 p. 2 [PDF, 3.2 MB] (http://www.tescocorporate.com/images/Tesco_review_1.pdf)
In 1995, Tesco introduced the Clubcard, a loyalty card for customers who were able to collect points from purchases and use them to exchange for goods. It also gave Tesco a massive amount of information about the customers who visited its stores, what they bought, the regularity with which they bought them and how they responded to the in-store promotions and special offers. Sainsbury 's dismissed the card as a gimmick but were soon to lose out on sales to Tesco and in the latter part of 1995, Tesco became the market leader with a market share of 17%.
Throughout the 1990s, Tesco introduced further measures to improve its service and the range of goods and services it offered its customers. This included such things as making staff available to help customers pack bags and take them to the car, having a policy of opening checkouts if there was more than one person in a queue, linking in with the Airmiles group in relation to its Clubcard and the provision of facilities such as baby changing units, restaurants and coffee bars.
Apart from the basic services it was providing, it was building on the range of products it was offering. It opened pharmacies in some stores, developed a range of financial services including a Visa card, mortgages, insurance and a bank account all in conjunction with the Royal Bank of Scotland. The expansion of the non-food side included offering entertainment goods such as TVs, DVD players and home entertainment systems as well as white goods, household products, clothing and so on. Its well-publicised battle with Levi 's over the selling of jeans at prices considerably below that of Levi 's outlets was lost but not before Tesco had presented itself as a champion of the customer in its battle to bring quality and value for money to the retail supermarket scene.
In the new century, further developments pushed Tesco 's profits higher still; it introduced shopping via the Internet and home delivery, Internet service provision, and a range of foods reflecting different qualities from the 'Value ' range which had been introduced in 1993 through to its 'Finest ' products as well as a brand called 'Free from ' for customers with special dietary needs.
Tesco 's Summary Profit and Loss Account, 2005 2005 (£m)
2004 (£m)
Sales at net selling prices
37,070
33,557
Turnover including share of joint ventures
34,353
31,050
Less: share of joint ventures ' turnover
(379)
(236)
Group turnover excluding value added tax
33,974
30,814
Normal operating expenses
(31,845)
(28,925)
Employee profit-sharing
(65)
(57)
Integration costs
(53)
(45)
Goodwill amortisation
(62)
(52)
Operating profit/(loss)
1,949
1,735
Share of operating profit/(loss) of joint ventures and associates
130
97
Net profit/(loss) on disposal of fixed assets
53
(9)
Profit/(loss) on ordinary activities before interest and taxation
2,132
1,823
Net interest payable
(170)
(223)
Profit on ordinary activities before taxation
1,962
1,600
Underlying profit before net profit/(loss) on disposal of fixed assets, integration costs and goodwill amortisation
2,029
1,708
Source: Tesco Annual Review, 2005 p. 42 [PDF, 3.2 MB] (http://www.tescocorporate.com/images/Tesco_review_1.pdf)
Tesco has also taken steps to expand abroad. It has acquired stores in Japan, China, Taiwan, Poland, Slovakia, Ireland, Turkey, South Korea and Malaysia amongst others and has links with Safeway Inc in the United States. It continues to try to improve the quality of its customer service provision and the range of goods and services it is offering. It did make a bid to takeover the Safeway group when Morrisons initially put in a bid. However, it was unlikely to ever succeed in this given the market share it now has in the supermarket business.
Given this massive growth, Tesco announced a profit of over £2 billion for 2004 - the first UK supermarket to break this barrier. The fall in the share price reflects what analysts expect to happen in the future rather than what has happened in the past. So where does Tesco go from here? Have they reached a peak from which there is now only a downward trend or are there strategies that Tesco can put in place to cement their position in the market and continue to expand in the future?
Tesco 's Summary Five Year Record
Year ended February
2001 (£m)
2002 (£m)
2003 (£m)
2004 (£m)
2005 (£m)
Group sales
22,585
25,401
28,280
33,557
37,070
Turnover excluding VAT UK
18,203
19,821
21,309
24,760
27,146
Rest of Europe
1,737
2,181
2,664
3,385
3,818
Asia
860
1,398
2,031
2,669
3,010

20,800
23,400
26,004
30,814
33,974
Underlying operating profit UK
1,100
1,213
1,297
1,526
1,694
Rest of Europe
70
90
141
184
218
Asia
4
29
71
122
152

1,174
1,332
1,509
1,832
2,064
Return on capital employed
11.0%
10.8%
10.2%
10.4%
11.5%
Retail statistics UK Number of stores
692
729
1,982
1,878
1,780
Total sales area (000 sq ft)
17,965
18,822
21,829
23,291
24,207
Turnover per full-time equivalent employee (£)
159,678
163,443
160,157
162,459
166,534
Weekly sales per sq ft (£)
21.75
22.43
21.86
22.48
23.89
International Number of stores
215
250
309
440
554
Number of hypermarkets
68
102
152
194
273
Total sales area (000 sq ft)
10,397
13,669
18,115
22,111
24,928
Source: Tesco Annual Review, 2005 p. 44 [PDF, 3.2 MB] (http://www.tescocorporate.com/images/Tesco_review_1.pdf)
Market Share of the Top Four Supermarkets (%) 1998
1999
2000
2001
Sep 2003
Apr 2005
Feb 2006
Tesco
22.9
23.4
24.2
22.8
29.8
26
30.6
Sainsbury 's
19.8
19.1
18.6
15.8
16.2
15.9
16.3
Asda
14.1
14.8
16.2
12.4
17
16.5
16.6
Safeway
10.2
10.0
10.1
9.3
10
-
-
Morrisons
-
-
-
-
6
12.2*
11.1*
* Follows Morrisons ' takeover of Safeway
Sources: BBC News (http://news.bbc.co.uk/1/hi/business/4694974.stm) and Yahoo UK (http://uk.yahoo.com/)
Tesco 's Share Price (July 2004 - May 2006)

Price (pence)
Jul 04
262.5
Aug 04
255
Sep 04
265.5
Oct 04
289
Nov 04
290.25
Dec 04
310
Jan 05
321.75
Feb 05
309
Mar 05
308.5
Apr 05
317.25
12 Apr 05
318.5
14 Apr 05
328
20 Apr 05
312.75
27 Apr 05
306
21 May 05
311.75
24 May 06
316.93

Oxfam growth strategies
On Wednesday 27th March, just a few days before the G7 Job Summit, an Oxfam UKI policy advisor and Chilean NGO activist researcher met with World Bank officials to challenge the Bank 's labour intensive export led growth strategy. Presenting indepth research on Chile 's flexible labour market they argued that labour market deregulation should not should not be considered a magic recipe for job creation.
Widely touted as a free market success story, Chile has been a laboratory for labour market deregulation. Yet the research conducted for Oxfam UK/I by Chilean, Fernando Leiva, contains a warning for countries wishing to pursue a similar route. Contrary to the predictions of orthodox economists, Chile 's flexible labour market has failed to deliver growth with equity. Employment expansion has taken place in low paid, low quality, precarious jobs creating a new class of working poor, many of whom are women. The report notes that:
Between 1990 and 1992 the number of workers in small firms employing between 2 to 5 people increased by 143,000 of which 59,000 worked inside dwellings
In 1964-65 there were 208,000 permanent wage workers in the agricultural sector, one of the main engines of Chile 's export industry, and 147,000 seasonal workers. By 1991-1992, the number of permanent wage workers had decreased to 100,000 and the numbers of temporary/seasonal workers had increased to 400,000.
In the fruit exporting sector where more than half the workforce are women, 83% are now employed on a temporary basis and between 40-50% have no contract.
While unemployment has fallen significantly in recent years this masks widespread under-employment which is not captured by official figures:
A supplementary survey by the National Institute of Statistics showed that 873,514 women officially classified as "inactive" in fact worked an average of three and a half months per year. These women represented more than half the "official" labour force.
The spread of "flexible" working practices has allowed companies to bypass government legislation and collective bargaining agreements leaving workers vulnerable to exploitation. Temporary and home-based workers are effectively denied the right to collective bargaining. Most have no job security and are not entitled to social security benefits such as sickness and maternity payments.
The increase in jobs and wages helped reduce poverty from a high of 40% of households in 1990 to nearly a third in 1994, finally reaching the 1970 level before the free market experiment began. However, despite this recent achievement many Chileans believe that poverty is unacceptably high for a comparatively wealthy country which grew at an average of 11% between 1992-1994.
Low pay and the sporadic nature of work mean that many people are still unable to earn an adequate monthly income in 1992 43 per cent of salaried workers earned less than the minimum required to cover basic necessities, a factor underlying the increasing numbers of women and children entering the workforce.
Overall inequality increased between 1992-1994 as workers wages have been unable to keep up with productivity rises while the rich increased their share of income. The richest 541,000 Chileans earns the equivalent of the bottom 10 million.
Between 1987 and 1990 rural Chile experienced one of the most dramatic increases in inequality on record, alongside a rapid expansion of natural resource based exports.
These trends are contributing to a new generation of social problems, such as stress, depression, drug abuse, and crime which psychologists have linked to economic stress.
Tesco survival strategies
Survival strategies in a depression
Article Date: Mar 11 2009

Tough decisions need to be made
Times of economic turmoil require businesses to adapt quickly. Sometimes that requires radical, even painful action, This is no ordinary recession: it is now generally agreed it will be the worst since the 1930s. Businesses need to be thinking about a long-term survival plan, one that will insulate them against a potential five-year profit squeeze. Cutting costs, accepting low profitability and focusing on retention of customers and staff might work for 18 months, but these are short-term fixes. Business owners must look further ahead and consider more radical changes such as business restructuring, forging deep partnerships or even merging with another company.

Business restructuring
Think big, like a revision of product specification, a change of operational location or a different distribution method. An even more extreme strategy could be to withdraw from the current line of business completely and consider investing in an alternative more suited to the times. Such profound changes can be unsettling, but they can be remarkably successful if proper research is undertaken beforehand. Take Apple: there was a time when its iPod was playing second-best to the MP3 players on the market. In 2000 Apple acquired SoundJam MP and nine months later entered the digital music distribution market with the launch of iTunes. Not only did this bolster the bottom line but also changed the way in which the music industry operated. As a testament to the success of this business strategy, over 5 billion items have been downloaded from iTunes and it is now worth an estimated $8.4 billion.
It might have felt different for Jack Cohen when he founded Tesco in 1919. Back then he simply sold surplus groceries from a stall in the East End of London. It wasn’t until 1973 when Leslie Porter, Cohen’s son-in-law, took on the role of chairman and revolutionised the business strategy that the familiar retail giant was truly born.
Both Apple and Tesco fully understood the needs, decisions and attitudes of their customers and their success speaks for itself. But what about those companies where the risks were too great and it didn’t work?
Entellium, a supplier of customer relationship management software, redesigned its product to make it feel more like a video game. The new product enabled salespeople to win points on the system for performing relevant operations like entering data, all based on the stereotype that salespeople are competitive and an ongoing consumer trend of computer game consumption.
This ‘all in’ bet proved fatal as sales quickly dwindled and the situation at Entellium worsened. Last year CEO Paul Thomas Johnson and CFO Parrish Jones were arrested by the FBI and charged with grossly inflating their sales figures. Working partnerships
There have always been strategic partnerships: take the example of automotive companies and parts suppliers. However, a different type of partnership can aid survival by sharing costs and resources and developing synergies. Economies of scale can be achieved as service providers pool resources such as buildings, equipment, specialist staff and back office functions. New products can be developed on the back of the companies’ combined expertise.
Of course, a working partnership presents its own set of hurdles. Firstly and most obviously, the companies have to work together. It’s vital that all staff involved in partnership working have the necessary authority to take decisions, or decision making will be slowed and progress frustrated.
The media industry has been leading the way with working partnerships, with the Daily Mail group granting office space to the Independent titles and the Telegraph media group titles being published by News International. However in the US competing newspapers have taken steps not only to share the costs of distribution but also editorial content.
The Dallas Morning News and the Fort Worth Star Telegram, two daily newspapers in Texas, have been sharing picture resources and feature content since November last year. These are not small papers by any means, but advertising has fallen dramatically in recent months, impacting their revenues.
These businesses don’t view each other as competitors anymore; they have a common goal in addressing the challenges present by an ever fragmenting media landscape that has affected readership figures.

Mergers
Most fundamentally, a business may come to the conclusion that it does not constitute an viable independent entity in the long term. If other companies are in the same position, a merger may be the most feasible option, minimising competition and increasing market share.
In November 2008 the shareholders at Lloyds TSB voted overwhelmingly for a merger with ailing HBOS. The rationale was that this could create an ‘unrivalled’ network of heavy-hitting brands (Lloyds TSB, Bank of Scotland, Halifax, Clerical Medical and Scottish Widows) and provide much needed strength in such turbulent times for banks. With the group now in government ownership its ultimate success is not guaranteed, but the decision to merge the two banking institutions was expected to reduce overall running costs by as much as £1.5 billion a year, an attractive prospect in the cash-strapped financial sector.

Oxfam survival strategies
In addition to helping people to hold on to livelihoods, food aid can play a key role in assisting people in rebuilding livelihoods, after a period in which these have been partially or completely destroyed. Whilst relief may help to preserve livelihoods, in Mozambique, food aid to the displaced has very often been given to people whose livelihoods have been wrecked. Indeed, one of the chief characteristics of the emergency in Mozambique is that people have been brought together at places where there is virtually no economy.
Wilson notes that in Mozambique food aid can allow people in this position to spend maximum time clearing the limited new fields that they have, rather than trying to secure subsistence by other means. Food aid could also provide people with the time to make things, and the cash to buy them. Clearly, displaced people in newly-accessible areas of Mozambique need agricultural inputs as well as emergency food aid.
The use of food aid by Oxfam for restocking after drought in Red Sea Hills in the mid1980s offers another example of food aid being used to revive an economy.

Task 2

Limitations and constraints on marketing activities

Consumer law
Marketing managers are encouraged to act responsible therefore there are laws which have to be observed.

The markers and suppliers of products owe a duty of care to consumers.

The consumer protection from unfair trading regulations 2008
Entitles to fair treatment and honesty targeted at business that have not always treated their customers well they can not use aggressive tactics or put on dishonest promotion

Consumer credits act 1974 and 2006
1974 and 2006 consumer credit act apply to business offering goods/service on credit
Licensed by the office of fair trading requires regular updates to customers i.e. statements
Financials ombudsmen service involved to extend payment period helps prevent predatory lending.

Sales of good act 1979

Goods sold by a trader should be:
-of satisfactory
-fit for its purpose
As described

1998 data protection
The information stored by marketers on electronic databases must be: obtained fairly and lawfully used only for the purposes stated not kept for longer then necessary protect from unauthorized use available for inspection and correction by the individual.

Consumer protection (distance selling) regulations
Requires business to provide clear information so that customers can make purchasing decisions, business goods or services being sold payment arrangement or delivery arrangement, consumer have the right to cancel their orders when appropriate.

Voluntary codes of advertising practice
Voluntary codes of advertising practice are statements by a committee or organistion about methods of working which are recommended as good practice for firms.

Advertising standard authority
Responsible for policing all advertisement and promotions across all media
ASA agree to approve an advertisement before broadcasting and maintains the British code of advertising. The ASA protects consumers by helping advertising, not mislead or offend consumer

Basic principles are that advertising should be:
Legal decent, honest and truthful prepared with a sense of responsibility to the consumer (society in line with the principles of fair customer. if breached the ASA can insist that the approves any advertising before it is published or broadcasting

Refer the advertiser to the OFT office of fair trading. They can ask people to withdraw the advert

Pressure groups
Formed by people with common interest who want to further their interest. They watch organizations and influence how they act.
Amnesty international
Drinkaware
Brithis roads fecletions

Consumerism
A social movement to augment the right of buyers in relation to sellers
The right to choose safe and be heard and be informed

Watchdog is an organistion which exposes on national TV traders which use unacceptable trading practices

Acceptable language
Rules that tend govern whether certain words are acceptable are based on the target audience for the marketing activity for example adverts which use text

ASA has identified key areas where some people find the use of language unacceptable.
Strong language or swear words mock religion or peoples beliefs, demeaning people on grounds of race, gender, religions sexuality, age or disability.

(This provides evidence for p2)

Forms evidence for p1 and p2

Marketing techniques
Category: Marketing

A marketing strategy is an overall marketing plan designed to meet the needs and requirements of customers. The plan should be based on clear objectives. A number of techniques will then be employed to make sure that the marketing plan is effectively delivered. Marketing techniques are the tools used by the marketing department. The marketing department will set out to identify the most appropriate techniques to employ in order to make profits. These marketing techniques include public relations, trade and consumer promotions, point-of-sale materials, editorial, publicity and sales literature.
Marketing techniques are employed at three stages of marketing:

Market research enables the organisation to identify the most appropriate marketing mix. The mix should consist of: the right product sold at the right price in the right place using the most suitable promotional techniques.

To create the right marketing mix, marketers have to ensure the following:
The product has to have the right features - for example, it must look good and work well.
The price must be right. Consumers will need to buy in large numbers to produce a healthy profit.
The goods must be in 'the right place at the right time '. Making sure that the goods arrive when and where they are wanted is an important operation.
The target group needs to be aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.

Finally techniques need to be applied to monitor the success of marketing activity. For example when carrying out advertising it is helpful to track consumer awareness of the adverts and their messages. Evaluation can also take the place of other aspects of the marketing mix e.g. which distribution channels were most effective? Was the chosen price the right one? etc.
Business behaviour: marketing

Today businesses have an increasing market focus. If organisations are to serve the needs of their customers they need to be structured in such a way as to identify and meet customer requirements.

Businesses therefore need to behave in such a way that they recognise the needs of the customer.

A company prospers best when everyone in it believes that success depends on the excellence of his or her contribution.
Short-term decisions made many times a day by individuals determine the quality of that day 's work.

The governing principle should be that everybody has a customer - either outside the company (the traditional 'customer ') or inside the company (the internal customer). Both kinds of customer expect to be supplied with the product or service they need, on time and as specified.

The principle holds good for everyone in the company, whatever their level of skill and experience, whether their 'product ' is answering a telephone in a helpful way or masterminding a major new project. It works to everyone 's benefit. It gives the individual genuine responsibility and scope for initiative and it virtually guarantees that the company 's performance will be improved.

However, individual behaviours will only match the organisation objective of being customer focused if the right sorts of structures are created. Hence the importance of developing structures such as team working and empowering employees to make decisions rather than be told what to
do.

Modern companies like Travis Perkins (builders merchants), and Argos (catalogue retailer) have recognised the importance of team working in motivating employees and in providing close links to the consumer. By encouraging staff to listen to consumers these organisations are best placed to provide the products and the services that ensure ongoing business success.

Empowerment is the process of giving increased power and responsibility to employees at all levels within an organisation. It involves placing more trust in them.

Decentralisation is the process of handing down power from the corporate centre (e.g. Head Office) to the various parts of the organisation.
Advertising, promotion, packaging and branding

Advertising, promotion, packaging and branding are important marketing tools which are used to make products and services more desirable and hence increase sales and profits.

Any form of publicity is advertising. There are two main forms of advertising although in practice the two are inter-related.

The informational aspect of advertising involves providing information about products, services, or about important issues. For example, the government provides information about the dangers of cigarette smoking, which is an example of informative advertising.

Persuasive advertising goes further and uses a persuasive message, for example by: showing a famous personality (e.g. Gary Lineker) using the product comparing the advantages of one product with another using sex appeal.

There are a number of processes involved in producing effective advertising, including: identifying the most appropriate market segments to target the advertising choosing the best possible media, e.g. television, radio, posters etc projecting the right message in the adverts getting the timing of the advertisements right tracking the effectiveness of the advertising, e.g. checking to see how many people can recall the advert and its message.

Advertising is just one way of promoting a product. Promotion is the business of communicating with customers. There are a number of ways of promoting products and services, including: in-store promotion e.g. giving away free samples in a supermarket publicity in the media, competitions, and sponsorship
PR - public relations activities - i.e. presenting the public image of a company to a wide audience presenting products in attractive packaging creating an attractive brand for a product.

Sponsorship

Packaging typically refers to the material in which a product is packed - or more specifically, the surface design on the material. However, a wider definition includes all the various aspects of presenting a product - e.g. the shape size and appearance of the packaging, colour and design, the convenience of using the packaging etc.

A brand is a product with a unique, consistent and well recognised character. The branding of the product therefore involves projecting and developing this character. The uniqueness can come either from an actual product or from its image - usually created by its manufacturer through advertising and packaging. The consistency comes mainly from the consistence of its quality and performance, but it also reflects the consistency of the advertising and packaging. A brand is well-recognised because it has been around for a long time. It takes years to develop a brand.

Shell has spent over a hundred years developing its brand image through the well known Shell pecten. Audi is associated with its easily recognised four rings logo. McDonald 's is associated with its twin arches. Sponsorship is an important way of promoting the name of an organisation. Many sports and arts organisations rely on support from sponsors. For example Vodafone is a major sponsor of Manchester United Football Club, and Bic sponsored Martin Johnson the England World Cup rugby captain.

In return for sponsorship of a sports club or arts event the name of the sponsor will be mentioned prominently on advertising hordings, publicity materials, programmes and other literature associated with the club or event.

The term 'above-the-line ' advertising and promotion refers to media such as TV, radio and press, for which commission is paid to an advertising agency. 'Below-the-line ' comprises all media and promotional techniques for which fees are paid in preference to commissions - these might include exhibitions, sales literature and direct mail.

Limitations and Constraints on Marketing

Common Law - developed through the courts based on previous decisions (precedent).

Statutory Law – New legislation passed through Act of Parliament.

Legislation – makers and suppliers owe a ‘Duty of Care’ to consumers. Different Acts of Parliament have been passed which strengthen consumer protection:
Sale of Goods Act 1979 – of satisfactory quality, fit for purpose and as described.
Trade Descriptions Act 1968 – prohibits false or misleading statements about products.
Consumer Credit Act 2006 – protects the rights of consumers when they purchase goods on credit.
Data Protection Act 1998 – concerning the use and storage of information on electronic databases

Voluntary Constraints
Voluntary Codes of Practice are statements by a committee or organisation about methods of working recommended as “good practice” within an industry
Advertising Standards Authority Code of Practice. ASA is responsible for all adverts and promotions across all media.
Top 10 most controversial ads as reported by ASA(BBC)

Direct Marketing Association (DMA)
DMA are concerned with all forms of direct response marketing (e.g. email marketing and direct mailshots).
Protects consumers from inappropriate, unethical behaviour by unscrupulous or ignorant businesses and promotes best practice through codes of conduct.

Pressure Groups and Consumerism
Pressure groups can be extremely effective in changing organisational behaviour. Formed by people with a common interest who join together in order to further that interest for example Greenpeace, Drinkaware, Amnesty International
Consumerism defined as ‘social movement seeking to augment the rights of buyers in relation to sellers’.
For example Watchdog, Rogue Traders,
Consumer Association www.which.co.uk),
Office of Fair Trading.

Task 3

Marketing techniques
Similarities that exist between these techniques in relation to the two products/services
Difference that exist between these techniques in relation to the two product/services
Ansoff matrix
The Ansoff Growth matrix is a tool that helps businesses decides their product and market growth strategy.
Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.

Successful business people spend a lot of time thinking about how they can increase profits. They will typically have hundreds of ideas about things they could do, including developing new products, opening up new markets and channels, and launching new marketing.
Branding
We develop brands that will change the reality of your consumers.
We are working with the worlds most admired branding and marketing professionals to develop sustainable brands that will stand the test of time and inspire positive change.
Together with our network of branding gurus we have developed our unique branding concept called Brand Experience. This revolutionary concept focuses on the need of creating a brand experience that will help you retain your consumers but at the same time gain new ones.

Synonymous with its unique selling proposition (USP) although not interchangeable, and are critical in defining its competitive advantage and branding strategy. They must be attributes or benefits that consumers strongly, uniquely, and positively associate with the company 's brand; and not with any competing brand. Once points of difference have been clearly communicated to consumers, the company and its brand are set apart from its competitors. Brand loyalty depends upon the ability of the company to establish and maintain clarity of communication with the consumer regarding their brand; and to maintain and expand the points of difference that defines the brand.

Brand extension
A brand can take many
Forms, including a name, sign, symbol, color combination or slogan. For example, Coca Cola is the name of a brand make by a particular company. The word branding began simply as a way to tell one person 's cattle from another by means of a hot iron stamp. The word brand has continued to evolve to encompass identity — it affects the personality of a product, company or service. It is defined by a perception, good or bad, that your customers or prospects have about you. [

A concept brand is a brand that is associated with an abstract concept, like breast cancer awareness or environmentalism, rather than a specific product, service, or business. A commodity brand is a brand associated with a commodity. Got milk? Is an example of a commodity brand?

Relationship marketing
Marketing is the process planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
Public relations is a strategy management function that adds value to an organisation by helping it to manage it reputation

Task 4
TESCO.
As TESCO is currently using a store (or e-commerce) “loyalty scheme”, you should ask how successful this retailer has been in its use of relationship marketing (RM) techniques, in appealing to its supposed target consumer segments. Would the retailer have been as (relatively) successful if it did not run such a scheme?
Marketing Strategy is now moving from the 4Ps- Product, Place, Price, Promotion of traditional marketing management to the 30 Rest- the Thirty Relationships of a new marketing paradigm” - (Evert Gummesson, Total Relationship Marketing). This concept that looks at Marketing in terms of different relationships between the organisation and its publics is gaining more attention and importance from organisations these days. This is because in today’s highly competitive market-place, getting new customers is becoming increasingly difficult and costly. Organisations are therefore now putting greater emphasis on maintaining their existing customers and prefer following a “Zero Defection Strategy”. In this essay we will look at the relationship marketing techniques and loyalty schemes being used by Tesco to develop and maintain existing relationships with the different customer segments. Throughout the essay, the objective will be to critically evaluate the strategies used by Tesco and to provide reasonable conclusions on how effective these strategies have been.
In the last decade, Tesco brought about a lot of changes in its marketing strategies and has grown to become UK’s number one retailer. “Today in the UK, the retailer has been the dominant force for more than 10 years” - (Seth, A. & Randall, G., The Grocers: The Rise and Rise of the Supermarket Chains). It is also considered to be one of Europe’s fastest growing financial company and probably the most successful internet supermarket in the world. Interestingly, Tesco’s almost entire relationship marketing strategy is based on its “Clubcard” scheme. It has been able to use the Clubcard very effectively in addressing different customer segments and in attracting and retaining customers of all types. With its Clubcard scheme it not only has been able to overtake Sainsbury’s as the number one retailer but also has strengthened its market share year on year in UK.

Tesco’s clubcard and how it work?
Clubcard is Tesco’s membership scheme which allows customers to save money on shopping by providing them price-off vouchers. Customers get a point on every pound they spend shopping at any stores of Tesco group of companies as well as at stores of their partner companies. Once a customer accumulates 150 points, these are then converted into Clubcard vouchers which enable the customer to save money on shopping. One can argue that other retailers also have similar loyalty programs. However it is interesting to note that while most loyalty schemes and relationship marketing strategies similar to Clubcard have often failed for other retailers, Tesco’s Clubcard has worked well and managed to succeed. ASDA ran a similar pilot scheme in its stores but it did not work. Safeway tried the loyalty program by way of its ABC card but gave it up in about four years. Even the more popular Nectar card from Sainsbury’s has not been able to match the success of Clubcard.
Probably a reason behind Tesco’s success with Clubcard can be attributed to the fact that Tesco has also established relationships and partnerships with popular companies like Powergen that supplies electricity and gas, Beefeater restaurants, Avis car-hire, Marriott Hotels, National Tyres, Johnsons dry cleaners, mfi etc. Therefore customers can earn points using Clubcard not only at Tesco, but at stores of any of these companies. Further the points can also be earned by purchasing fuel at Tesco petrol stations and by using their online shopping to buy music, books, flowers and electrical goods. Even the points can be earned by paying with Tesco Credit Card or by using Tesco Mobile, Tesco Home Phone and selected Tesco Financial Products. This means that customers can easily and frequently accumulate the minimum 150 points and get price-off vouchers. Other loyalty cards have also failed in the past because the retailers did not had sufficient partnerships with other popular companies and so for a customer it took many months to collect minimum points and get vouchers. Thus slowly customers lost their interest in such schemes. Tesco’s Clubcard in contrast has managed to maintain interest in the customers.
For getting a Tesco Clubcard, customers have to register by filling in a form and sending it by post or they can also register online as well as over the phone. This means that Clubcard also acts as a tool for Tesco for collecting useful marketing data related to the buying habits of individual customers. Thus there have been concerns on issues such as invasion of privacy and dissemination of information related to the customers to third parties or other companies for marketing purposes. Tesco however promises that the information is used only by the Tesco group of companies to help them develop better services and products for the customers. “Because they understand their customers, they hope they can serve them better, and so what we’ve done, right from the beginning, is not look at this program as a marketing sales promotion program, but we’ve looked at the program as a way of learning about how consumers shop, and what they want from their retailer, and therefore, not just changing the one to one communication with the customer, but changing the physical retail offer” - (Clive Humby, Scoring Points). This however shows that Clubcard has definitely helped Tesco in developing better understanding of the needs of the customers and at least in that sense has been a very useful tool.

Effective targeting of different customer segments
Probably the biggest challenge that retailers face is how they can make the loyalty scheme appealing to their different customer segments. “The most successful examples of innovation and evolution in retail formats are retailers that respond accurately and profitably to previously unsatisfied needs. In an increasing competitive trading environment, the best rewards go to retailers who can attune to the requirements of clearly defined customer segments” - (Peter McGoldrick, Retail Marketing). For a retailer like Tesco the customers can be anyone from a ten year old boy to an 80 years old woman. Thus the loyalty program needs to have elements that can appeal to people of all age groups. Tesco has tried to do this with the Clubcard by offering something for every member of a family. They have introduced different clubs such as Tesco Kids Club, Tesco Baby and Toddler Club, Tesco Healthy living Club, World of Wine Club etc. Membership to these clubs is free to all Clubcard holders and customers can register for the membership online.
The Tesco kids club:
This has been designed keeping in mind the needs of children in age group of five to eight years. Concerns can be raised that, is this not marketing to children and therefore unethical. However Tesco maintains that it will not advertise prices to children and also assures that all material produced by it is approved by members of its parents panel. The club is for kids but it is actually up to the parents to become members and get information and gifts for their children. Tesco offers the members a quarterly Disney Clubzone Magazine for kids, a Parents Pack that contains information on issues such as healthy eating habits for kids and children safety, and price-off coupons that can be used for buying food, toys and clothes for kids. Tesco thus by using the Kids Club has probably been able to establish credibility and soft corner in the heart of parents by providing free information on issues such as safety and health tips for children. Thus parents are more likely to prefer Tesco stores for doing shopping for their children.
Tesco baby and toddler club:
This is for people who have become parents recently or women who are pregnant. The members get free magazines offering advice from experts on childcare issues and safety tips for pregnancy period. They also get entries into free prize draws and also permit to be able to park their cars nearer to the store. By using this club Tesco has tried to appeal to the people who if addressed properly can very well turn out to be its customers for many years. These are the customers who are about to start or have just started a family. By showing concern for them and providing extra benefits to them like closer parking facility near the store Tesco has tried to build strong bonds with these customers. These customers therefore will be more likely to shop at Tesco in the future as well.
Tesco healthy living club:
Members get a free “40 Steps to a Healthier Life” booklet and also regular magazines offering useful tips on diet, exercise and health issues. They also get price-off coupons on food products such as dairy items and organic foods. Tesco is using this club as a tool to establish its credibility as a health conscious retailer and also for promoting its range of Healthy Living and Organic Foods. The focus is also more on customers in the middle and old age groups who want to maintain a healthier lifestyle.
Tesco world of wine club:
This club provides information to members who like drinking wine about the different range of wines available all over the world as well as information such as which wine goes with what kind of food etc. Members also get price-off coupons for purchasing wine at Tesco. This club also helps Tesco in promoting the new range of wines available at their stores.
Tesco airmiles travel company:
Tesco also entered into relationship with AirMiles Travel Company in 2002 and so customers can also convert their Clubcard vouchers into AirMiles for their flight trips. For example £2.50 of Clubcard vouchers can be exchanged for 60 AirMiles. The fact that AirMiles Travel Company switched over from Sainsbury’s with which they were since 1996 to Tesco also reflects on the supremacy of Tesco in the UK retail market-place.
However it hasn’t been success all the way for Tesco and some of their initiatives such as the Student Card and the Clubcard Plus Payment Card failed. It can also be argued that Clubcard has not been a success in the student customer segment. Also even though Clubcard has contributed a lot in helping Tesco set up a successful financial services company, it has not been able to properly integrate the financial products and services in its loyalty program. Another weakness of the Clubcard as compared to other loyalty cards is related to the redemption of vouchers. The system is slow and lacks flexibility with customers getting their statements after every three months along with their price-off coupons. To redeem the deals, customers have to send the Clubcard vouchers by post to the Clubcard Deals Department which then does the formalities and sends back the vouchers entitling the customers to the deals they have chosen. Customers cannot redeem their vouchers online or at stores which if was possible would have made the whole process much simpler and faster.
Can texco been as successful without clubcard?
The change in fortune for Tesco started with the introduction of its Clubcard but does that justify that all the success for Tesco has come with this single loyalty scheme. If the answer is yes then why similar loyalty programs have failed for other retailers. Thus definitely there has been some element of luck involved that has favoured Tesco. Still the credit cannot be taken away from Tesco for being able to run the program so effectively. Customers using other loyalty cards have often faced problems such as points not appearing in the Nectar account when using the card at BP but Tesco has managed to run the scheme in a more reliable and user friendly way then any other retailer. Also the reason why Tesco has been so successful is because it was able to use the Clubcard and the information provided by it, not only for developing new products and services for their existing stores but also to diversify in other new businesses. So it can be said that without the Clubcard Tesco might have struggled to become as successful as it is now.
Conclusion
In conclusion it can be said that what has made Clubcard work so wonderfully for Tesco is the fact that with this simple single loyalty scheme, Tesco has been able to address to the customer segments of different age groups. Also more then anything else, it is probably the simplicity with which the scheme runs that has made it so successful and acceptable among its customers. “Retailers are looking to expand to the international marketplace, and are making significant investments in Internet customer service. Both large and small store-based and catalogue retailers are using the convenience of the Internet to better serve their customers” - (Michael Levy, Retailing Management). Similarly Tesco’s online marketing strategy has also been very simple. Information on products and services of all the groups companies are available on a single website presented in a well integrated way. A customer can jump from the groceries store to the Finance and Insurance division on the same web page unlike most other companies websites which open up a completely new website for the other companies of the same group. Further Tesco has been able to use its loyalty program very well to establish mutually beneficial relationships with its customers. Thus the main reason behind the success of Tesco’s relationship marketing strategy and loyalty program has been the way it has managed to establish Clubcard not as a marketing tool but as a product of relevance and value for the customers.

Bibliography (1). Humby, C., Hunt, T. & Philips, T. (2003) Scoring Points: How Tesco is winning customer loyalty - 1st Edition: Kogan Page Limited.
(2). McGoldrick, P (2002) Retail Marketing - 2nd Edition, Maidenhead: McGraw-Hill.
(3). Gilbert, D (2002) Retail Marketing Management - FT Prentice Hall.
(4). Seth, A. & Randall, G. (2001) The Grocers: The Rise and Rise of the Supermarket
Chains - Kogan Page Limited.
(5). Levy, M. & Weitz, B. (2003) Retailing Management - McGraw-Hill Education (ISE
Editions).
(6). Powell, D. (1991) Counter Revolution: Tesco Story - Grafton Books.

Websites http://www.tesco.com/ http://www.planningaboveandbeyond.com/Intheirownwords/ScoringPoints/
This provides evidence for D1