Market Share Essay Example For Free At Magic Help - Free Essay Example

Sample details Pages: 8 Words: 2540 Downloads: 10 Date added: 2017/06/26 Category Marketing Essay Type Case study Did you like this example? The objective of this essay is to examine the current marketing strategy and marketing activities of one of the big 4 supermarkets in the United Kingdom with particular reference to the adverse effect produced by low cost competitors entering the market. For this purpose, Tesco has been selected. Tesco represents one of Britains largest and most profitable supermarket, which overtook ASDA in 1995 and continued to increase its market share through the years (Corporate Watch, 2004; Ruddick, 2015). Don’t waste time! Our writers will create an original "Market Share Essay Example For Free At Magic Help" essay for you Create order In addition, Tesco was the first supermarket to (1) introduce value lines and cost effective price range of its own-label products and (2) present the first company loyalty card on the market (Corporate Watch, 2004). Therefore, it becomes plausible to suggest that the company is an excellent choice for a marketing strategy analysis in the current declining grocery retail environment of British brands. The structure of this essay is as follows: (1) a brief overview of Tescos generic marketing strategy, (2) an in-depth evaluation of the supermarkets existent marketing actions and tactics with the aid of the its marketing mix, (3) the impact of low cost competitors, (4) recommendations and suggestions for improvement, and (5) a summary of the main findings. The supermarkets broad market strategy can be categorised as market penetration and cost leadership. Firstly, market penetration has been defined by Ansoff (1957) to explain one of four business growth strategies. The strategy ref ers to involves attracting new customers, often achieved by gaining competitors customer base(s), in order to increase sales. Furthermore, Farris et al. (2010) identify two important metrics of market penetration penetration rate and penetration share. On the one hand, the penetration rate refers to the proportion of the relevant study population that has purchased the examined product category. On the other hand, the comparison between the brands customer shares with the markets overall customer population relates to penetration share. In relation to this, a key aspect in Tescos market strategy is attracting competitors customers (e.g. ASDA, Sainsbury, Morrisons), which is evidenced by its increased market penetration rate and share from 7.2% in 1971 to its peak in 2007 when Tesco accounted for 31.1% of the total UK grocery market share (Economics Help, 2014). In addition, according to data from March the current market share of Tesco is 28.7%, which positions the company as a mar ket share leader in the British groceries industry, however, this figure has decreased from the previous financial years (Kantar, 2015). Secondly, before the introduction of discount supermarkets, the company focused on cost leadership, which represents one of the three generic strategies devised by Porter (1980). Cost leadership relates to increasing ones market share through attracting price sensitive customers and implementing an effective price strategy that enables the company to offer the lowest cost product offerings. Tesco successfully managed to maintain cost leadership through three actions before supermarkets like Aldi and Lidl entered the British grocery retail market. These actions were as follow: (1) high utilisation of assets, meaning that large outputs are produced and the fixed costs are spread over high quantities allowing the company to manufacture single units at lower costs; (2) minimal direct and indirect costs in the production and distribution stages; and (3) strict control over the supply chain to ensure low costs (Gamble et al., 2010). Thus, the cost leadership strategy was an appropriate approach for Tesco, because it represents a large company that is able to take advantage of the economies of scale in the market. Nevertheless, presently the company is unsuccessful in maintaining its cost leadership due to the strong presence of budget supermarkets. The following part of the essay will specifically focus on the Marketing mix of Tesco product, place, price, promotion, which provides a better understanding of the companys present marketing strategy. Firstly, Tesco offers its target segments a wide range of high quality products at affordable prices. The balance between affordability and quality as well as Tescos Clubcard helped the company attain a relatively high level of competitive advantage (Winterman, 2013). Some of its various product categories consist of food, consumer electronics, financial services and clothing. This is in consistency with the findings from a study on customer perceived value, where four separate dimensions emerged explaining customer attitudes and behaviours emotional, social, quality and value for money (Sweeney and Soutar, 2001). Similarly, FernÃÆ' ¡ndez and Iniesta-Bonillo (2007) found that customers evaluate relevant benefits and costs involved in a purchase based on economic and cognitive reasoning. Secondly, the place element of the marketing mix refers to the distribution of products in locations where customers purchase products and services. In relation to this, Tesco emphasises product and service distribution in two main locations online and offline. On the one hand, the online sales channel is directly linked to Tescos website Tesco Direct, which suits the specific needs of the online shoppers presenting them with various delivery options (Tesco Direct, 2015). On the other hand, the offline channel of distribution involves four different store formats Tesc o Express, Tesco Metro, Tesco Compact and Tesco Superstore (Tesco Official website, 2015). Furthermore, Tescos initial pricing strategy can be characterised as price leadership, which represented an oligopolistic business behaviour, where there are a few companies that dominate the market and determine the price range (Kotler and Armstrong, 2010). The reason behind this price strategy adoption was the intense competition and other economic and behavioural factors in the British households i.e. cost conscious buyers (Business CafÃÆ' ©, 2009). Nonetheless, the company is no longer a price leader, but its pricing approach is still based on the marketing message Every Little Helps. In addition, Tesco is able to implement this strategy and remain to influence the retail market to a certain extent, because it evaluates and utilises the lowest cost materials for supply to achieve higher efficiency rates in the production processes. Fourthly, Tescos promotion comprises of a wide ra nge of media advertisements, regular announcements of promotions and discounts, point-of-sale marketing tactics, and sponsorships. These marketing activities are aligned with the companys generic strategy of cost leadership and support Tescos price advantage through profit maximisation in the long run as well as enhance the value of the brand. Hence, Tescos marketing communications are integrated to enable the company to better coordinate its mission, vision, objectives and interactivity with customers. With the aid of information technology advances (Zabkar et al., 2015). Integrated Marketing Communications were also found to generate a synergy effect through the integration of marketing activities, which also tremendously influences customers through different channels of communications reinforcing the same message (Ewing et al. 2015) Tesco has successfully managed to build loyalty in its customer segments through its most effective customer loyalty mechanism the Tesco Clubcard ( Tesco Clubcard, 2015). In relation to this, Hallowell (1996) found a direct correlation between customer satisfaction, loyalty and company profitability. Likewise, Lee-Kelley et al. (2003) suggest that customer retention tools not only aim to increase the companys profitability, but also establish long term relationships between sellers and buyers, which are fundamental to customer loyalty and also result in decreased levels of price sensitivity. Tescos marketing strategy, which comprises of cost leadership and market penetration, has been increasingly impacted by the presence of the foreign grocery store chains Aldi and Lidl as well as food commodity prices and the outcome of this has been continuous price cuts by Tesco to meet the customer demand for low cost product offerings (Butler and Wood, 2014). Furthermore, the authors suggest that further intensification of the market dynamics is caused by the growth of high street convenience stores and the rise of discounters (e.g. Po undland and BM), which is directly correlated to the altered consumer behaviour habits during the recession. In addition, business analysis of the current grocery retail market conditions suggest that Aldi and Lidls combined market share will increase to 12%-15% by 2020 (Allison, 2015). Nevertheless, according to a press release by KPMG (2014), it will be difficult for discount brands to fully challenge and erode the market of the big four, because grocery retail chains like Tesco command the store network market penetration and their market shares have existed for nearly 10 years. In relation to Tescos marketing mix and the intense price competition and dynamics in the market, two main recommendations can be made for Tesco to regain its lost market ground increased customer retention and an optimisation of its supply chain management to successfully recover its price leadership status. Due to the current intense competitiveness in the retail and food industry and the emergence of competitively low cost foreign supermarket chains, Tesco should firstly focus on increased levels of customer retention through the incorporation of effective customer relationship management systems. Numerous studies have demonstrated the importance of customer satisfaction in relationship marketing and customer retention. Specifically, Hennig-Thurau and Klee (1998) conceptualise relationship quality which refers to the extent of appropriateness of a relationship to fulfil the needs and requirements of a customer with regards to the relationship. One way to do this is further integrate the Tesco Clubcard to present loyal customers with various financial product offerings besides current accounts, mortgages and home insurance (Tesco Clubcard Perks, 2015). This will form relationships based on two factors quality and value-for-money, which will translate into loyalty and protect the company from switching customers. In order to adequately target and foster loyalty in the right cu stomer base(s), Tesco should understand which customer satisfaction elements have the greatest impact, and the amount of investments required to improve particular customer satisfaction elements (Rust and Zahorik, 1993). The second recommendation for marketing strategy enhancement is directly related to Tescos supply chain management, which will enable the company to regain its lost market share through becoming a cost leader. Fearne (2009) suggests that in the current business context, companies must pursue a value chain as opposed to a supply chain, which represents a chain of activities performed, in order to deliver valuable products and services to customers. There are two elements that are emphasised in value chains: (1) focus on demand pull, which places customers first and everything else subordinate to their needs and (2) concentration on the formation of collaborative relationships with suppliers. According to the author, these two actions enable corporations and large organisations to achieve competitive edge and sustain it over time. For Tesco this would mean careful selection of suppliers and establishment of collaboration opportunities with these suppliers and stakeholders to increase the value added to the processes and/or production. For example, in Wales the company can form relationships with local farms to purchase the highest quality meat and, once supplier loyalty takes place, discount prices can be demanded from the meat producers in exchange for continuous bulk buying. This will allow Tesco to present its customers with quality local meat at low prices, which will positively influence its lost cost leadership presence in the market. To conclude, the present work established that Tescos generic marketing strategy is dual regular market penetration to attract competitions customers and cost leadership to retain price sensitive and cost conscious customers. In terms of its extended marketing mix, notable actions are: (1) offering a w ide range of product categories, from which groceries remain the most popular category, tremendously contributing to the Tescos market leadership position, (2) alignment of marketing messages, communication and relative pricing, (3) various marketing and advertising activities, but the integral one remaining the loyalty card, and (4) simplicity and convenience with regards to shopping alternatives and store design. Following the discussion of Tescos extended marketing mix, two areas for improvement were recommended an increased emphasis on customer retention and loyalty through novel customer relationship management mechanisms and the development of a supply chain that adds value to the manufacturing processes through collaborative relationships. It is important that Tesco understands its customers needs and suppliers requirements, because the competition in the grocery retail industry has never been more severe due to business environments being dictated by the customers and the s uppliers. In other words, market orientation is no longer dominated by supply push exchanges and transactions, but by devising marketing strategies and promotions based on customer research and feedback. References Allison, I. (2015), Aldi and Lidl to consume 4% more of Tesco, Morrison, Asda and Sainsburys marketshare by 2020, [Online], Available at: https://www.ibtimes.co.uk/aldi-lidl-consume-4-more-tesco-morrison-asda-sainsburys-marketshare-by-2020-1505572?bcsi_scan_F872AB84FAA8A40E=3KZ+wD5+BA0QaUGyNZBt2R7iyyFnAAAAAe/zaw== Ansoff, I. H. (1957), Strategies for diversification, Harvard Business Review, Vol. 35, No. 2, p. 113-124. Business CafÃÆ' © (2009), Tesco pricing strategy The big price drop, [Online], Available at: https://www.tutor2u.net/assets/cafe/1011-tescopricing.pdf Butler, S. and Wood, Z. (2014), UK grocery sales in decline for first time in 20 years, [Online], Available at: https://www.theguardian.com/business/2014/nov/18/uk-grocery-sales-decline-price-war-asda-sainsburys-morrisons-tesco Corporate Watch, (2004), Tesco: Overview, [Online], Available at: https://www.corporatewatch.org.uk/company-profiles/tesco-overview Economics Help (2014), UK Grocery Market Sh are, [Online], Available at: https://www.economicshelp.org/blog/6288/economics/uk-grocery-market-share/ Ewing, M., deBussy, N. and Ramaseshan, B. (2015), Integrated Marketing Communications: Conflicts of Interest, Politics and Performance, Proceedings of the 1998 Academy of Marketing Science (AMS) Annual Conference, pp. 265-272. Farris, P., Bendle, N., Pfeifer, P. and Reibstein, D. (2010), Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education Fearne, A. (2009), Sustainable Food and Wine Value Chain, Adelaide Thinker in Residence Report, [Online], Available at: https://www.thinkers.sa.gov.au/lib/pdf/Fearne_Final_ReportCopyforWeb.pdf FernÃÆ' ¡ndez, R. and Iniesta-Bonillo, M. (2007), The Concept of Perceived Value: A Systematic Review of the Research, Marketing Theory, Vol. 7, No. 4, pp. 427-451. Gamble, A., Thompson, Jr., A.J. Strickland III, John E. (2010). Crafting and executing strategy: the q uest for competitive advantage: concepts and cases (17th ed.). Boston: McGraw-Hill/Irwin. Hallowell, R. (1996), The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study, International Journal of Service Industry Management, Vol. 7, No. 4, pp.27 42 Hennig-Thurau, T. and Klee, A. (1998), The Impact of Customer Satisfaction and Relationship Quality on Customer Retention: A Critical Reassessment and Model Development, Psychology Marketing, Vol. 14, No. 8, pp. 737-764. Kantar (2015), Tesco posts strongest performance in 18 months, [Online], Available at: https://uk.kantar.com/consumer/shoppers/2015/march-kantar-worldpanel-uk-grocery-share/ KPMG (2014), The future of the grocery sector in the UK, [Online], Available at: https://www.kpmg.com/uk/en/issuesandinsights/articlespublications/newsreleases/pages/the-future-of-the-grocery-sector-in-the-uk.aspx Leeà ¢Ã¢â€š ¬?Kelley, L., Gilbert, D. and Mannicom, R. (2003), How eà ¢Ã¢â€š ¬ ?CRM can enhance customer loyalty, Marketing Intelligence Planning, Vol. 21, No. 4, pp.239 248 Kotler, P. and Armstrong, G. (2010), Principles of Marketing, 13ed, Oxford: Pearson Prentice Hall. Porter, Michael E. (1980). Competitive Strategy. Cambridge: Free Press. Ruddick, G. (2015), Tesco leads the way as supermarket sales turned on their head, [Online], Available at: https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11460945/Tesco-leads-the-way-as-supermarket-sales-turned-on-their-head.html Rust, R. and Zahorik, A. (1993), Customer Satisfaction, Customer Retention and Market Share, Journal of Retailing, Vol. 69, No. 2, pp. 193-215. Sweeney, J. and Soutar, G. (2001), Consumer Perceived Value: The Development of a Multi-item Scale, Journal of Retailing, Vol. 77, No. 2, pp. 203-220. Tesco Clubcard (2015), [Online], Available at: https://www.tesco.com/clubcard/ Tesco Clubcard Perks (2015), [Online], Available at: https://www.tesco.com/clubcard/ financial-deals/ Tesco Direct, (2015), [Online], Available at: https://www.tesco.com/direct/click-and-collect/?icid=Floor%20Lamps_Click+Collect_186900029 Tesco Official website (2015), [Online], Available at: https://www.tesco.com/ Winterman, D. (2013), Tesco: How One Supermarket Came to Dominate, [Online], Available at: https://www.bbc.co.uk/news/magazine-23988795 Zabkar, V., Mumel, D. and Vanita, N. (2015), Is Management Involvement in Integrated Marketing Communications Reasonable?, Advances in Advertising Research, Vol. 5, No. 3, pp. 283-294.

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The Great Wall Of China - 1641 Words

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Dance Essay Example For Students

Dance Essay The lights dim, the orchestra begins to warm up, the rustling of paper can be heard, and then the curtain rises. The performance begins with an overture, a prelude to what will happen. Suddenly, the star ballerina appears on stage. She is beautiful and the audience claps vigorously for her. At the end of the show, she receives flowers and massive amounts of applause. Every little girl in the audience wants to be the ballerina on stage that was just seen. How does a little girl fulfill her dream of becoming a professional ballerina? What are the steps she must take in order to be on a stage gaining recognition one day? First, a dancer must be classically trained. Normally dancers study for at least five years before going on stage in even the smallest role. All of the steps and rules must be learned from the persons teacher. Many girls begin at the age of three or four whereas boys generally start lessons at the age of nine or ten. Ballet is a very strict form of dance, and provides the child with a great amount of discipline and dedication. Dedication to ballet, or dance in general, is required to become a professional dancer. The dancer must practice every day with the attitude of professionalism in mind. During the awkward teenage years, only the people who are meant to be dancers will pull through. The middle years are difficult to maintain the dedication with the other temptations available to the youth. Depending on the girls dancing ability, a girl may receive a minor role in a large ballet production around the age of fifteen. Performing makes a dancer realize whether or not she wants to continue with dance for the remainder of her life. Being on a stage either gives the dancer a love or a hatred for the art. When the dancer has a hatred for dance, she normally quits dance altogether. The first role a dancer receives in a professional ballet company is that of an apprentice. An apprentice makes minimal pay in comparison to the other dancers. The apprenticeship usually lasts for at least two years or until the company feels the dancer is ready to progress. The apprentice gets paid approximately fifty to one hundred dollars a week. Most apprentices are forced to take other jobs because of their financial situations. The next promotion after apprentice is a member of the corps de ballet. The corps performs in the back of the stage. There are between twenty and thirty members of the corps de ballet. Corps members receive a pay increase in addition to a portion of expenses. Ballet shoes are included in expenses. A member of the corps is then advanced to a soloist. A soloist receives the same benefits as a corps member, but has a slight increase in pay. Soloists perform small solo roles during a major production such as Swan Lake or Sleeping Beauty. The soloist might have more than one role in a ballet. A principal dancer is the last classification. A principal receives a generous amount of pay. Principals attain health benefits in the case of injuries. The company pays for all shoes and dance supplies. Principals sign a two-year contract and they are required to uphold their contract. Dance is like any other job. Promotions must be earned like in any other business. Dancers usually retire around the age of thirty. Most former dancers are currently teachers, so the classical training can continue.

Social Learning Theory in Relation to Gender Development free essay sample

Describe SLT explanations for gender (You MUST focus on gender, not just SLT in general)Social learning theorists such as Bandura believe that all behaviour is learnt. In regards to gender development, SL theorists believe society trains individuals how to act in accordance with societys expectations of males and females. The reason boys and girls behave differently is because they are treated differently. Other peoples expectations of how the child should behave is dependent on their sex, shapes the behaviour of the child. SLT emphasises the importance of observation and reinforcement in the development of behaviour and attitudes. An individual seeks to determine what behaviour and beliefs are appropriate to display. Through observing role models and imitating their behaviour, followed by reinforcement by significant individuals in the childs life, the child will learn a new behaviour or attitude considered sex appropriate, If that behaviour is not reinforced, or is punished, the behaviour will not be learnt. We will write a custom essay sample on Social Learning Theory in Relation to Gender Development or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page For example, a boy may identify with a group of boys of the same age playing football. The boy will imitate that behaviour and also play football. The behaviour will be reinforced through acceptance by his peers. This football playing behaviour will be learnt. By observing reinforcement in others, behaviour can also be learned. For example, if Carol sees Julie display a certain behaviour, and also sees Julie reinforced for that behaviour, Carol is more likely to imitate and therefore learn that behaviour. Summarise a piece of evidence to support SLTUsing the experimental method, Bandura arranged for boys and girls to witness a short television programme in which children of a similar age behaved aggressively towards a toy doll called a Bobo doll. There were three films, each with a different outcome. A- positive outcome. B- An adult made a critical comment to the aggressive behaviour. C- Nothing happened about the behaviour. The results showed that even though the children were exposed to the same behaviour, boys showed high levels of imitation and girls showed low levels of imitation and were particularly influenced by negative comments. | Explain why it is evidenceThis is evidence because it shows that boys were influenced by gender stereotypes and were more aggressive than the girls as they were more violent towards the Bobo doll where as girls were much less aggressive and were much more reserved, they were better behaved and this matched female stereotypes of being timid and less aggressive then males. | However.. .We dont know if there was anything previous to the experiment which could have affected the way that the children behaved towards the Bobo doll such as watching a violent act before the experiment or parental influences which could have caused them to already have internalised an aggressive or passive behaviour. This would mean that environmental situations have affected the experiment making it less reliable. | Summarise a piece of evidence to support SLTMartin and Halverson 1983 Using the experimental method, the researchers showed five and six year old children pictures of carrying out activities.Sometimes these activities were schema consistent (for example a girl playing with a doll) and sometimes the they were schema inconsistent (for example a girl playing with a gun). The results found that when the pictures were tested a week late the children were able to remember schema consistent images better and then when schema inconsistent images were recalled they were often distor ted so that the expected sex was remembered as carrying out the activity (for example, children recalled a boy playing with a gun rather than a girl). Explain why it is evidenceIt shows that children do use schemas to help them make sense of their world. They will sometimes use schemas to reorganise information so that it is consistent with their view of gender even if it is not accurate. | However It may be that the students have generalised the activitys specifically shown to be either male and female and if other activities were shown then the results may have differed. They also had the week in between so it also shows more of a memory test and some students could have paid more attention than other which could have influenced what they remembered.It was only done in one classroom meaning that it is a biased piece of information limited only to the pupils in the classroom they were tested in. this is a problem as the pupils cant be used to generalise the behaviours of other people. The social learning theory suggests that if a child is punished for doing something wrong then the behaviour in not internalised, however this is not always the case and sometimes children still repeat the same behaviours even after being punished for doing so. This shows that the social learning theory cant be used as a concrete method. |