Marketing Strategies Between Amway And Tesco Marketing Essay

Published Date: 23 Mar 2015

In this days and age, business world become extremely competitive and complicated, to facing such a rapid change environment company and management team should get well prepared to handle in every kind of situation that may happen to affect the operation or profitability of the company. In the business world every single decision could make a huge different to the company no matter in the future or in the present, company should have to evaluate each decision they made in order to avoid any unwanted outcome. No doubt that using which marketing strategy to approach the market would definitely an important decision that has to consider with carefully and professionally.

There are countless marketing strategies adopted by the companies, companies adopted different strategies on different market in order to generate the most efficient outcome. There are many elements need to be consider to adopting different marketing strategies to different countries, for instance cultural differences. Tesco selling different product in different country because of the differentiation of the cultural, for an example Tesco in Malaysia selling pork in a specific room space because they concern about the religion cultural of Malaysia.

Just like others did, Amway formerly known as Alticor also adopted several different marketing strategies to approach its market in different countries. In the year 2010 Amway had a total sales $9.2billion and its increase of 9.5% compare to previous year. Based on research, it show that more than one third of the sales year 2009 were come from China, and only 10% come from its original place where Amway start the business USA. Amway is growth rapidly in China market and now China became the largest market of Amway. Recently Amway had put its concentrate to one of its old market but also known new market that is United Kingdom. Amway officially launched its new flagship experience centre at the centre of London on 13th may 2009 and situated at Victoria House, in Southampton Row. Amway is using its marketing strategies to approach the market of United Kingdom; the most significant strategy adopted by Amway is Multi Level Marketing and Direct Selling Marketing. Amway adopted these strategies in over 80 countries and all of them are generating a good profit.

In the year of 2010 Amway was ranked the top 32 largest companies in US. There is a 13,000 employees work with the company in 2010, and millions of ABOs working with the company over the worlds, the amount of ABOs were shown growth rapidly in China and others countries. Amway's top-selling brands are NUTRILITE® vitamin, mineral and dietary supplements, ARTISTRY® skincare and color cosmetics, and eSpring water treatment systems. The company provides product development, manufacturing and logistics services through its Access Business Group and Alticor Corporate Enterprises divisions.

Tesco is the UK's biggest food retailer offering a variety of services for food and nonfood products to include insurance, entertainment, electrical goods and many more. It employs over 440,000 people around the world with over 280,000 in the UK. It has over 2,000 stores in the UK and a growing number of stores abroad in countries such as Thailand, China, Hungary and the United States. Tesco has a well-established and consistent strategy for growth and that leads Tesco in year 2010 generating a sales £62,537m including Vat and it's slightly increase compared to the previous year sales that is £59,426m.

Tesco had revealed a fourth-quarter sales slump on 19th April 2011 as it admitted it missed UK growth targets. The group said British like-for-like sales excluding VAT and fuel fell 0.7 per cent in the three months to February 26 - leaving overall sales flat over the financial year as it struggled to combat tough consumer spending conditions.

But a better performance overseas helped the group notch up another year of record annual underlying profits, up 12.3 per cent to £3.8billion.

Tesco is adopting several marketing strategies such as 4P's (Place, Price, Promotion, Product) like club cards, advertisement, and slogan e.g. Every Little Helps. The rationale for the strategy is to broaden the scope of the business to enable it to deliver strong sustainable long-term growth by following the customer into large expanding markets at home - such as financial services, non-food and telecoms - and new markets abroad, initially in Central Europe and Asia, and more recently in the United States.

Obviously decision in adopting which marketing strategies would affect to the company operation and profitability, both companies state above were adopting different marketing strategies and they both generates excellent sales figure. In this report will cover the uniqueness of the both companies marketing strategies and how they apply the strategies go side by side with the consumer trends, and the importance of adopting an appropriate marketing strategy to the market and how it can gains competitive advantage over other companies. Nevertheless from this report it will prove that a well planned marketing strategy will brought what kind of result neither to the company in the future nor in the present.

Aim and objective

Title:

A investigate into the marketing strategies between Amway and Tesco in United Kingdom.

Aims:

To examine the marketing strategies differences between Amway and Tesco and to identify which marketing strategy they had adopted will be more efficient in the future of consumer trends.

Objective:

To identified the differences of Amway marketing strategies and Tesco marketing strategies.

To investigate the effectiveness of the marketing strategies comparing between Amway and Tesco on product sales and market share.

To ascertain how Amway and Tesco cooperate management decision would affect by the marketing strategies.

To determined what is the relationship between marketing strategies and consumer behaviour.

To examine how Amway and Tesco strategies could affect consumer behaviour.

To ascertain how Amway and Tesco utilize the marketing strategies on those products to their advantage and become more competitive in their industry.

Literature Review

Nowadays organizations are in the era marked by the challenges of rapidly changing technologies, consumer needs that change often, and the extremely competitive environment, development of the strategic marketing skills is essential for an organization to stay competitive with others instead of survive. A well plan marketing strategy is unique but it will not often transparent to competitors and are nearly always difficult to copy by others in short time, so a focus on marketing strategy often yields significantly advantage to the company.

In today's global society, marketing activities touch and influence people's lives, as individuals and business attempt to sell, buy, or exchange goods and services. Companies tends to use marketing as a mean to approach the consumer pool and chase down the consumer demand and the way to satisfied the consumers in order to receive the best outcome.

As you can see there are several ways to consider the subject of marketing, so there are a number of ways to define the term itself. The definition of marketing is shifting rapidly from the traditional, transaction-based view of microeconomics and productive efficiency to marketing as a mutually beneficial exchange process built on long term relationship between buyers and sellers. Marketing is a philosophy that leads to the process by which organizations, groups and individuals obtain what they need and want by identifying value, providing it, communicating it and delivering it to others. At a broadest level marketing is to bring buyer and seller together. Marketing, as the term implies, is focused on the market place.

A full understanding of marketing requires recognition of the fact that product development activities and product modifications are planned in response to the public's changing needs and wants. A major marketing activity, then is paying continuous attention to customer's needs, identifying and interpreting those needs before undertaking others activities, including production. As in common many marketing activities are intended to direct the flow of goods and services from producer to consumer, but the marketing process begin with customer analysis actually starts even before the product is produced.

Marketing strategy is one of the elements of marketing, Marketing strategy is the method that a company uses to create brand awareness and persuade consumers to purchase their products or services. Planning and developing marketing strategy may consume lots of time and resources as to gain knowledge of the customers. Organization trying to target and better enhance the marketing message so it resonates with those customers. Marketing strategy is the way to make sure the organization is getting the maximum impact from it limited marketing budget and time.

For the organization wanted to compete in this extremely competitive environment developing a marketing strategy is vital and essential. The company will successfully attract the customer and satisfied the customer by adopting a well planned marketing strategy.

The focus of marketing strategy should be making sure that the products and services offer by the organization meet the consumer needs and the organization develop a profitable and long-term relationships with those customers. To stay competitive, company need to keep their offerings constantly fresh and new. Nevertheless the company must keep up with the current trends in the market, any emerging technologies and competitor's new strategies need to be aware and handle it in no time.

However organization should never forget to create a flexible strategy that can perform a quick respond to the changes of customer perceptions and demand. It may help when the organization try to identify a whole new markets and to ensure that the organization can successfully target the new market demand.

The purpose of creating marketing strategy should be identify and then communicate the benefits of what the organization can offers to target market in the most efficient ways. Once organization have created and implemented the best suit strategy for the target market, they should monitor its effectiveness and make any adjustments required to maintain its success in the future.