THE IMPACT OF GROWTH OR RETRENCHMENT MARKETING Flashcards
What are marketing measures of performnace (how to measure the performance)
Sale value / sales growth
Market share
Market size / market growth
Brand image (do consumers have a positive image in their minds of the business)
Brand awareness - do you know the brand?
Tesco retrenched from different markets with their other businesses (dobbies, giraffe etc) by selling those business (they didn’t have to sell them to retrench, they could of just shut them down), so that they could focus all of their attention back to the UK groceries
market.
Tesco has also grown in various areas. Tesco have acquired the company Booker, which is a wholesaler that sells food to restaurants like Wagamamas, pret etc. It’s a slightly different industry, but it’s still related to what Tescos are still doing, as they are still selling food, but as well as selling it to consumers, they are also selling it to businesses. In summary, Tesco have retrenched in certain areas, but they’ve grown in others.
How will this affect marketing at Tesco?
Decision about markets to compete in (how will it affect their market size and market share)
Impact on product portfolio (Tesco cut back their product portfolio, so that they could focus on what they are good at)
Decision about marketing mix (Not necessarily for tesco, but if an organisation is heading into new markets they’re going to have to decide the price of the product, the product that they’ll sell, the distribution channel etc)
The need for market research - Identify what competitors are doing, identify what consumers need - Tesco would have done this when entering the wholesale food market.
Global responsiveness vs standardised strategies (The reason for Tescos not performing well in the USA might be down to them trying to implement a UK model in the USA - not saying that’s the reason, but it could be)
