Marketing Strategy and Plan Tesco Plc and Woolworths

Question: Discuss about theMarketing Strategy and Planfor Tesco Plc and Woolworths. Answer: Introduction This study is helpful to identify the marketing strategies and the marketing processes of Tesco Plc and Woolworths of Australia. Both these organisations are belonging from the retailing industry. In this connection, this study has tried to provide the competitive advantage of both the organisations. In order to identify the competitive advantage of both the organisations, the business objectives of both the organisations have mentioned. In addition, in this study the importance of Ansoff matrix would be discussed, which would be benefitted to identify the growth strategy of the organisation. On the other hand, Ansoff matrix can also identify the risk for the growth strategy of the organisation. Moreover, this study is also important to identify the reasons of theoretical analysis for the achievement of the competitive advantage of both of the organisations. Competitive Advantage in the Marketing Process of Tesco Plc Business Objective: In order to identify the competitive advantage of an organisation, it is necessary to discuss the business objectives of the company. If the organisation can achieve the proposed business objectives, then it can be stated that the organisation will be able to meet the business goal. As a result, it can be mentioned that the organisation has the competitive advantage to meet the business objectives. As per the statement of Barbera et al. (2012), it can be mentioned that Tesco plc aims to increase the sale of the organic products by the amount of 1 billion to the coming five years. Moreover, it can be mentioned that Tesco Plc has the market share of 6.5% in case of the non food business. In this context, it can be added that their target is to hold a stronger position in case of the non food production. On the other hand, it can be mentioned that Tesco Plc has tried to provide a greater organisation culture, so that the employees would like to maintain long run relationship with the or ganisation and the productivity of the organisation can be improved. According to Basili et al. (2013), it can be mentioned that the human resource management can develop a team as well as individual business objectives, personal improvement planning career planning and the performance appraisal for improving the employees commitment. Competitive Advantage: According to Bentley, Omer and Sharp (2013), it can be mentioned that economies of scale is the competitive advantage of Tesco Plc. On the other hand, Tesco Plc has the competitive advantage in case of retail lower price, higher quality and the experienced consumer service. This would be helpful for developing the profitability and the growth of the organisation. Therefore, it can be mentioned that the promotion of the Tescos corporate image is depending upon the trustworthiness and the quality (Bharadwaj et al. 2013). In addition, it can be stated that another competitive advantage of Tesco is to maintain the market leadership. Therefore, the market scope of the organisation has increased. Ansoff Matrix: Market Product Existing New Existing Market penetration Enhance the business share of grocery compared to the other retailing stores expenditure. Market development Move to the store market Expand the business in the global market New New product development Financial services development Enhance the sales of the petrol Diversification Higher risk From the above table, it can be mentioned that market penetration is required to enhance the consumer loyalty. On the other hand, it can be noticed that market development is helpful to identify the business performance in case of business expansion in the global market. Therefore, Connor and Lande (2012) mentioned that these four strategies can effectively determine the relevant strategies and the sales will be increased. As a result, it can be stated that the business risk will be reduced. Competitive Advantage in the Marketing Process of Woolworths Business objectives: In the point of Haley and Haley (2013), it can be mentioned that the objectives of Woolworths is to increase the stock returns and can optimise network effectively. The strategic objectives of Woolworths are to be a consumer centric business, to be a brand value driven organisation. In addition, it can be mentioned that Woolworths also aimed to maintain a greater profitable consumer relationship as well as also aims to lower the cost structure of the products (Iacob, Quartel and Jonkers 2012). Competitive Advantage of Woolworths: As per the statement of Klettner, Clarke and Boersma (2014), it can be mentioned that the organisation has optimised the value chain across the business in order to make higher margins. In addition, it can be mentioned that the organisation has the efficient sourcing capability (PLC, 2016). Therefore, the business performance of the organisation would be improved. In addition, to increase the profitability of the business, Woolworths has aimed to set the price of the product affordable, so that the consumers are willing to purchase the products from this organisation. Ansoff Matrix: Market Product Existing New Existing Market penetration Promoting of new products Repositioning the brands Increase the market share Market development New distribution channels Woolworths has followed several pricing policies to follow new marketing segments. New New product development Develop new and innovative techniques, which can replace the existing strategy. Diversification The horizontal diversification is important for the production programme. The vertical horizontal diversification is benefitted for the sales stage storage programme (Woolworths Online. 2016). Theoretical Analysis Tesco Plc has followed a specific strategy, which can be discussed in terms of cost leadership approach and has followed every little helps strategy to achieve the competitive advantage of the organisation. In the short run, Tesco Plc has aimed to regain the stakeholders trust as well as the consumers trust. As opined by Oestreicher-Singer and Zalmanson (2012), it can be stated that Tesco Plc. has framed a significant programming for the financial development. On the other hand, it can be mentioned that in order to achieve the competitive advantage of Tesco Plc, the organisation has launched a renewal program for restoring the trust. On the other hand, it can be added that with the help of value chain analysis, the value of the organisation would be increased and the cost would be minimised (Reich and Benbasat 2013). These key factors would be helpful to achieve the competitive advantage of the organisation. On the other hand, it can be mentioned that Woolworths has followed and launched Fresh food people campaign and Loyalty scheme for the employees. Therefore, it can be stated that the subordinates of the organisation wanted to maintain a long term relationship with the organisation (Woodard et al. 2012). The performance of the workers also increased effectively. As a result, it can be stated that the overall productivity of the organisation has also improved from the previous. On the other hand, it can be added that the business objectives can be achieved. Moreover, it can be mentioned that Woolworths has started an employee reward program, which would be helpful to enhance the employee engagement of the organisation. Hence, Verbeke (2013) mentioned that the employee loyalty would be increased and this would also significantly enhance the performance of the organisation. In this context, it can be mentioned that the raw material suppliers also willing to supply as they expect they wou ld return back their share from the business. This is how, the Woolworths has achieved the business competitive advantage by following these strategies. Conclusion This study is important to identify the marketing strategy and planning of Tesco Plc and Woolworths. In this purpose, this study has tried to highlight the business objectives of both the organisations. Therefore, based on the business objectives, both the organisations have planned to follow some specific marketing strategies to achieve the business goal. On the other hand, the competitive advantages of the organisations have been discussed in this connection. Moreover, it can be stated that in this study the Ansoff matrix of each of the organisation have mentioned in order to identify the marketing growth strategy in long run. Therefore, by following this matrix, the organisation can enhance the profitability statement to reach to the new consumers. This is also helpful for the consumer segmentation. Lastly, this study has also described the process how the organisations can achieve the competitive advantage. The organisations have followed some specific strategies to achieve this. Recommendation After analyse the business objectives and the competitive advantages of the organisations, this study can follow the SWOT analysis. In this purpose, it can be recommended that SWOT analysis will be helpful to identify the weakness and threats of the organisations. Based on these, the organisations can try to improve the performance of the business more effectively. In addition, it can be mentioned that to improve the performance, the organisations require to follow the PESTLE analysis, which can identify the political, economic, social, technological, legal and the environmental factors of the organisation. These factors are important to understand as these factors have a greater influence on the performance of an organisation. References Barbera, L., Crespo, A., Viveros, P. and Stegmaier, R., 2012. Advanced model for maintenance management in a continuous improvement cycle: integration into the business strategy.International Journal of System Assurance Engineering and Management,3(1), pp.47-63. Basili, V.R., Heidrich, J., Lindvall, M., Mnch, J., Regardie, M., Rombach, D., Seaman, C. and Trendowicz, A., 2013. Linking software development and business strategy through measurement.arXiv preprint arXiv:1311.6224. 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