It has its own brands and believes in delivering value to its customers. Thus customer reluctance could be won over. Because of such customer backing, it could not only achieve the market leader position against its competitors like Walmart and Sainsbury but also challenged majors in many non-food and finance-related sectors (Anon, 2009).This year, the company’s supermarket chain is on a profitable scenario of a 9.2% increase in its revenues to 27.8%. It has reduced around 22% of its prices on a range of 12,500 items of its products by integrating its 4,300 shops in 14 countries. (Lombarde. G. 2009).The company has also introduced club card loyalty program points to its existing customers which, in the eyes of many analysts, are proving to be a factor for this robust growth this year. After the peak of 2007, the chain experienced a slight downturn from which it is again able to recoup due to such innovative promotional concepts. But then, its competitors are also not leaving any chance to grab the supreme position from its hands. As such, it should be on a continuous run up with no place for complacency. (Startz. S. 2009).It is common that every successful business has to face certain controversies from its competitors. The same holds true even in the case of this supermarket giant. In response to its price-cutting program, some of its rivals have started negative propagations that are has increased the prices of certain products (especially turkeys) one month ago. Now, the original prices are being set as a discount strategy just to attract customers during this Christmas time. (Poulter. S. 2009).Though the accusations may look to be quite unbelievable, they may strategically hit the company’s goodwill in the long run. Hence, a detailed study about its marketing mix plans is required to come to a conclusion regarding the allegations and their effect on its brand image.
Tesco’s Marketing Mix Plans