The Analysis on the success of Tesco Assignment

The Analysis on the success of Tesco - Assignment Example The success of an organization as argued by Philip Kotler and Kevin Lane Keller (2005) is mainly through the deployment of the 7Ps of marketing. In this section a critical analysis on the Price, product, Promotion and Place elements of the 7Ps is presented as these are identified as the critical elements in reaching the customer. Frances Brassington and Stephen Pettit (2003) argue that although the marketing mix can be explained using the 7Ps, the four critical elements that form the marketing mix are the four identified above. The authors further argue that the Marketing Mix plays a vital role in the overall marketing communication strategy of an organization, as it is the marketing mix that provides input to the marketing communication. The TESCO Finest and TESCO Value of the own brand range of products sold by the organization along with the leading brands in the retail industry is a classical example for the organization's success in the target market through extensive range of products as argued by Sandrine Mac and Scott A. Neslin (2004). The fact that TESCO Plc presents a wide range of choice in every category of its products is the major element fuelling its success in the UK and global retail market. 1.1.2: Price: The company pioneers in selling its products at competitive prices mainly lower than its supermarket competitors in the UK as well as in its global locations as argued by Isla Gower (2004) who says that 'the low price strategy of the organization without compromising the quality of its products is the key for its success in the UK retail market as the market leader'. Furthermore, the increasing awareness among the customers that quality need not be compromised with low price (Oliver Hupp and Ken Powaga, 2004) is the driving force for the organization in its continuous low price strategy. 1.1.3: Promotion: Promotion as argued by Philip Kotler and Kevin Lane Keller (2005) is 'the key for increasing the sales in the retail industry and retaining the customers in the target market'. The fact that TESCO Plc has established itself as a brand in the retail industry through pioneering in promotions like combination sales, event focused promotion of products and above all market focused promotion by its stores targeting the local markets is the major element for its growth in the UK retail market along with its pricing strategy. 1.1.4: Place: Place or the location for an organization in the retail sector is a critical element for its success as argued by Frances Brassington and Stephen Pettit (2003). This is naturally because of the need for local knowledge in the target market that serves for the promotion of its products and above all the choice of products presented in the shop floor (David Olson et al, 1982). The fact that the local knowledge is the key for increasing sales in the target demography as an organization can increase its sales only through the process of identifying the customer needs and understanding the behaviour of its target demography justifies that place or the location is a key element for the success of a retailer. The location of