TESCO
Introduction to Business
There are two different types of research; primary and secondary. There are differences between them; this is where their research is original towards the organization conducting the study. They gathered their data or, on the other hand, if it has come from another source (data has already gathered, and they have second-hand data).
Tesco’s British multinational groceries and general merchandise retailer, founded in 1919. During the 1950s and 1960s, Tesco grew organically and through acquisitions until it owned more than 800 shops. With such a big company that sells goods and mostly food, they must follow the marketing rules which do have limitations and constraints towards them. They also have different corporations such as Tesco Banks, Tesco express, Tesco PLC, Tesco Homes, and online Tesco such as Tesco entertainment. (Armstrong, 2018).
Primary Research
Primary research is seen as first-hand Information, where the business is the first to know the data they have collected and has not gathered before. Internal primary research data sources would be examples such as sales figures for the business’s product; the data of customers held in the central database (Armstrong, 2018. Whereas there are external primary research methods examples are questionnaires, surveys, focus groups, test marketing, interviews and customer reviews. It is handy for the company to get first-hand Information since no one will have seen this Information where it is beneficial to them so that they can take action to satisfy their customers.
Survey
A survey is where it is similar to a questionnaire are this is a type of primary research this is where Tesco can get both quantitative and qualitative data and one that Tesco uses so that they can monitor their customer’s satisfaction, which allows them to reflect on how their shopping was so that if there is a good response Tesco will know what they are doing well and if there is an inadequate response will be able to understand what they need to improve to satisfy their customers (.Donnelly, 2015)
By looking at the questions in the survey, looking at this one, “what time was your visit to the store?” since accessing this survey would need the receipt for the answers. The review on the day they have purchased items so that asking the time would be the most reasonable question. These are most likely quantitative data is also able to help Tesco to understand at what time do people go to Tesco, so would know when the rush hour of their stores is so that they can know when to have more staff at that time. It can speed up the speed of their cashiers and stock ups on racks (Donnelly, 2015).
Limitations of Survey
As Tesco uses a survey to collect feedback from its customers, there are always limitations towards market research, in this case. The customers that answered their questions might not be truthful as to access this survey. They would need to have a receipt with a code on it. The system in Tescos might be able to track down the customer who has commented on the survey, which can lead to their customers not being truthful (Donnelly, 2015). At the same time, the question in the study is a limitation towards the answer they can collect, limiting the quantitative data they are receiving. The time putting together a survey and also the time where they analyze the result and the usefulness of the Information where if the data at the end is unable to help Tesco improve their marketing plans, this would be a waste of time for them to carry out a survey.
Tesco Clubcard; Membership
With the Tesco Clubcard, they are a type of membership with each person that has it where personal data placed inside such as gender and age, with the Information inside Tesco can know what each person has purchased with the data inside they can sort it into age and with the purchase history they would be able to understand what people in that age range like to buy, this would be quantitative research since they can know people’s preferences, they would know what is selling well and what isn’t this allows them to understand what to purchase more and what not to (Donnelly, 2015)
As Tesco decided to improve their marketing techniques, they have presented a new membership. The Clubcard plus this is where they are offering A five percent interest rate is being provided on money put into Clubcard Plus for grocery spending this is to encourage people to be able to join the membership. At the same time, purchase more items, this can allow Tesco to gain more customers.
Limitations of Membership
Product review
On the Tesco online store, they have product review sections, such as a comment section on social media where people who have purchased the item and if they have good or bad comments towards this can help Tescos to carry out changes from these comments, where these products review can help to improve and change their marketing strategies so that they can satisfy their customers.
Limitations of Product Review
Secondary Research
Customer reviews
On Trustpilot.uk, they have areas where people can accurately review specific companies, in this case, Tesco. They can get the access of this Information online anytime which allows them to know what their customers want and dislike, and this is quantitative data where their customer where their customers are not limited to tell what they feel about the products and services they got from Tesco, and there is a higher chance of getting an honest review where this isn’t Tesco’s website.
Limitations of Customer Reviews
Taste-testing from other businesses
Where Gregs PLC, one of the UK’s leading companies, carried out a taste-testing marketing strategy to know what their customers would like to see in their products to sell their products better. In this case, Tesco can take their data to market their pastries products better, as Tesco has a section just for cakes and bread (Evans, 2018). This market research activity includes gathering Information for markets and consumers where can understand the requirements of making the right products to sell to the consumers. This usually involves getting Information for a potential new product. Where this includes with Greg’s PCL using a range of marketing research techniques like surveys, interviewing, this is to be able to discover other aspects of new developments like name, appearance, location, and service.
Limitations of Taste-testing from other businesses
Government Statistics
Government Statistics includes quantitative and qualitative Information for different aspects of Information.
Research that Tesco would view at is Government Statics is where they track Tescos’ brand value worldwide and in the UK at the same time they track the amount of Tesco’s online edible grocery sales. This helps Tesco view how their business is doing overall; this can help Tesco by looking at their brand value; they can make sure their marketing plans are working well. For Tesco, this can help Tesco understand its Brand Values around the world; this can let them know they are how they are growing around the world (Evans, 2018).
Limitations of Government Statistics
- Failed Operations- in the US and Japan-Tesco had to exist from the America and Japanese markets in 2012. The reason behind this was the failed exports forced from operations of the company to close stores after nine years and the United States after five years.
- Fraud Trial and Accounting Scandal- In the year 2017, Tesco again charged with violating fines due to the false declaration accounts and profit misrepresentation.
- Operation profit decrease-As of October 2018, shared prices of Tesco fell with 9% due to the declined operation profits as it proved to be the worst performed company since Brexit Referendum.
- Financial errors-The high debts and card liability. Tesco’s economic profit is affected profoundly.
- Low-cost strategy-Tesco on the price leader in the UK market. The low-cost strategy can lead to reduced margins on the profits made by Tesco.
- Poor operational performance in specific markets- the few stores and grocery outlets of Tesco are not good performers in certain countries.
- Club card controversy-In January 2018, Tesco switched up its club card scheme doubling up without giving customers facing a massive backlash from angry customers.
Qualitative or quantitative; opinions or feelings, numerical data
Marketing activities attempted by Tesco indicate that the business is successful, and the industry is doing well in the current global markets. Therefore, to maintain this position, the company frequently examines its market, the trends that happen in the market, and the needs of the customer, among other practical factors. Therefore the analysis involved in activities concerning the market can take several forms, such as quantitative research. Through marketing activities, Tesco is also able to examine great details concerning businesses, allowing the company to develop competitive intelligence, which is vital in the competitive market (Evans, 2018). An example of quantitative research from Tesco is the data holds from the collected club card. All this numerical data is analyzed and stored within a secure database due to the Data Protection Act. The staff members from Tesco then investigate the data before making decisions. Qualitative research can understand people’s beliefs, experiences, attitudes, behavior, and interactions. The results are given by Tesco’s questionnaire identified as shopping dissatisfaction, which hinders the main aim of gaining lifetime customers. Therefore Tesco can afford the money spent on research learning specialists through the Information received.
Conclusion
At times the Information given is inaccurate, and the necessary confirmations should be done to gain valid Information. Secondary research can take many forms including: Mintel published reports Government statics Chamber of commerce reports Information published on the internet Mintel Published Reports Mintel is a privately owned London based Market Research Company. Most of these companies have offices all over the world, and they work both from themselves through market identification, and their reports are rated as high standards. Their stories contain Information related to a specific market and include Information such as Issues in the market Strengths and Weaknesses in market Industry Insights Retail competitor analysis. The consumer, Market forecasts, the study of the market is well structured with most areas covered it the report with in-depth factual Information. For instance, Tesco may purchase a report on the sales from the electrical goods and the pre-expansion of their electrical stock range. In the long run, Tesco can make the right decisions which could be spent on their ventures. Therefore the government statistics refer to official data published by the government of a particular country.
References
Armstrong, G. M., Kotler, P., Harker, M., & Brennan, R. (2018). Marketing: an introduction. Pearson UK.
Donnelly, C., Simmons, G., Armstrong, G., & Fearne, A. (2015). Digital loyalty card ‘big data and small business marketing: Formal versus informal or complementary?. International Small Business Journal, 33(4), 422-442.
Evans, B., & Mason, R. (2018). The lean supply chain: managing the challenge at Tesco. Kogan Page Publishers.
Palmer, M., Simmons, G., & Mason, K. (2014). Web-based social movements contesting marketing strategy: The mobilization of multiple actors and rhetorical strategy. Journal of Marketing Management, 30(3-4), 383-408.
Peeroo, S., Samy, M., & Jones, B. (2015, December). Customer engagement manifestations on Facebook pages of Tesco and Walmart. In the 2015 International conference on computing, communication, and security (ICCCS) (pp. 1-8). IEEE.
Wood, S., Coe, N. M., & Wrigley, N. (2016). Multi-scalar localization and capability transference: exploring embeddedness in the Asian retail expansion of Tesco. Regional Studies, 50(3), 475-495.