Assignment on STRATEGIC RETAIL MANAGEMENT

Introduction:

            We live in modern era and everyone is busy here. People have to do a lot of work every day like office, shopping, travelling, spending time with families and so on. Everybody likes to do shopping and there is various kind of shopping mall. There is different kind of retail shops which contains various kind of product like grocery, supermarket, bakery, drugstore, liquor store, and news-stand and so on. Tesco one of the leading retailer in UK and they are doing good business by providing all kind of groceries, bakeries, drugstores, news-stands and so on.
They also provide online shopping and home delivery service. Retailing is a comfortable, convincing and convenient method of selling services and goods. Retailing is selling and buying goods and services. Retail marketing is now in great demand for increasing of GDP, per capita income, purchasing power and changing preferences and taste. The entry of ATMs, plastic money, debit cards and credit cards and other kind of customer finances augment the retail shopping practice. Retail marketing is the second biggest employment area after the agriculture. Here I will describe the retailing concept of Tesco which will describe customer orientation, coordination effort, value-driven and goal orientation. The retailing concept will focus on the characteristics and needs of the customers, developing an integrated strategy for providing value-driven services.    

Retailing concept:

            Retailing is one of the largest sectors of global economy which is very much popular in urban areas and getting popularity in rural areas. There are various kind of retail market like hyper marts, large supermarkets, mini supermarkets, convenience stores and discount. Previously there are only traditional grocers but now there are value-added services like credit and home delivery service. Retail sector is not saturated in rural areas. Retail stores depend on different lifestyle like M&S for higher class people and Tesco for higher middle class, ASDA, Morrison for middle class people. Retail store has store administration and management, managing of receipts, inventory and stock management, theft management, employee morale, customer services and sales operation tasks. Retailer provides good and standard products with satisfactory price. There are some characteristics in retailing which is mandatory for smooth running like interaction with the end customers which increase the sales, good customer service with automatic sales promotion, location and layout. Retail marketing normally depends on three things: value, variety and volume. The product quality is improving day by day for immense competition and product varies with size, quality and customer test. The retail sector’s demand is increasing everyday all over the world. Retail sector provide a huge employment opportunity for the unemployed people which help to boost the economy of a country. Online shopping and home delivery service have a great demand among the customers as they don’t need to go market places which save money and time.  [1]

Customer orientation:

            Customer orientation is an important factor which provides value added products. Normally there are 4 stages like develop, manufacture, market and deliver. Tesco has good and developed customer orientation which attracting more and more customers. They focus on customer demand according with time, place and test. They produce products which are customer oriented and have minimal time cycle. Tesco manufacture quality of products with reasonable price. Tesco always identify right customers for their product and services with quick succession and they customise their product among the clients. Tesco deliver their product to their target customer with minimal time frame.       

Value driven:

            Value driven relates on development, procurement, planning, design, maintenance, construction and deconstruction. Activity relates on value driven directly or indirectly has an interconnection among economy, management, technology, socio-economics, and medicine or behaviour science. Tesco has great impact on economy, society and politics. Tesco always try to improve their service, product quality which increase the value. Tesco contribute to increase economic growth and competitiveness within the retail sector. They are the leading retailer in UK and their position is far away from the second competitor. Value driven program has five subprograms like requirements, industrialisation, business models, management information and holistic process. Requirements cover health, behaviour science, sustainability, and socio economics. On the other hand industrialisation covers design, materials technology, operation and production, logistics, maintenance monitoring and planning. Business models cover e-commerce, management, economy and organisation. [2]     

Goal orientation:

            The goals of Tesco are mentioning below:

·         To make the most of sales

·         To raise and continue the number of retail company in the UK

·         Want to held the leading market condition in retail sector

·         To maximise their profit

·         To supply services/goods that is affordable and cheap to public or consumers.

They set up their goals which are measurable, achievable, and realistic and time related. They determine their goal with achievable time frame. All of Tesco’s aims and objectives are merge each other. They change their objective with time and situation and depending on market condition. Online service of Tesco makes the whole country as a local market for customers as they can order anything and get it at home for a minimum service charge.

 

References:

1.      http://www.fibre2fashion.com/industry-article/27/2661/retailing-concepts-introduction4.asp

2.      http://www.eracobuild.eu/index.php?id=29

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