Tesco's Strategies To Remain Competitive Advantage

3.1. Explain how products in Tesco are developed to sustain competitive advantage:

To remain and have competitive advantage edge over other competitors Tesco has developed its product in response to customers’ needs and requirements, and research and development has been done in the field to develop the service to improve services and products all time. As other competitors always imitate the success of a company Tesco strives for betterment. Kotler suggested the product should be viewed in three levels:

Level 1: the core product (rather than physical product) is the benefit of the product to customers, for example, Huddle product, which Tesco has produced, the ability to process videos, access of internet and watching live streams.

Level

So pricing a product too high and too low can cause a serious loss for the sale of the organisation. So there are several pricing strategies that Tesco has adopted to meet its organisational objectives as well as be in competition market.

Penetration pricing
This is happen when product is sold into a market at a low initial price in order to generate sales before the price is hiked. This type of price strategy is used to break down any barriers but not necessary designed to generate profit. And sometime this pricing strategy is used a short-term to again market share so once Tesco has captured the market price is slowly increased.

Skim pricing
Skim price is normally used to a new product because the product is new to the market and there is no competition at so the initial price is reasonably high in order to high initial returns from the consumer willing to grab to the new product. Once similar products enter into market the price is gradually lowered to remain competitive. Tesco use this type of price strategy for technology like Tesco mobile, huddle and other technology

4.5. Analyse the additional elements of Tesco’s extended marketing mix

Over years, the concept of marketing has been evolved and extended, and even the definition of product also has grown more complex idea. In 19981 Boom and Bitner proposed the additional marketing mix that directly relate to the business and these are physical evidence, people and process

People: this refers to the people that have direct contact to customers. According to Bitner this vitally important component in the marketing mixing as it concerns the people who are delivering the business should be professional show the culture of the company. In general, people refer to staff that have direct contact with customers. Therefore, staff should have the appropriate skills, attitude and knowledge of the products and be able to communicate customers with professional and respectful manner. That is why Tesco invest in defining the right kind of staff to fill the service role and be professional.

Physical