During the recent economic crisis, big businesses such as supermarkets are under pressure to develop marketing in order to attract customers Most successful businesses depend on outstanding marketing strategies to win the market share and to ensure their products and services satisfy the needs of consumers. Marketing can also have a significant effect on a company's performance in terms of influencing the customers’ buying behavior. This essay will discuss different types of marketing strategies used by supermarket companies focusing on four main aspects: products placement, own brand, pricing strategies and activities, as well as comparing how Tescos, Morrisons and Aldi used them in marketing.
According to NerdyLaura (Jun, 12th,
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With respect to pricing activity, Tescos’ strategy to earn loyalty through prices has kept shoppers at Tescos. The CEO of Tescos said: ‘we do well when people aren’t feeling wealthy as we offer food value.’ However, according to Zeo Wood (4th, October 2011), Tescos’ market share has declined from 30.8% to 30.4% in the past year and combined market share of Aldi and Lidi increased from 5.3% to 6%. It is claimed that Aldi’s price is the lowest compared to Morrisons and Tescos in vegetables and fruits, but the quality of the products is not as good as Tescos’ and Morrisons’ according to most consumers’ response. Tescos’ discount policy is clear by setting the discount time at 4pm and 6pm during the day. Most common approaches are ‘half price’ and ‘buy one get one free’, or’ price drop’. Morrisons usually adopted the same method to carry out the price activity, such as ‘3for2’ and ‘2for4 ponds’, but it does not have fixed time for discounts, while Aldi seldom cut prices since the prices of their products are already low, as Aldi promised. It is worth mentioning that Aldi’s day-to-day items cost less because they buy them in great volume and buy them from the same, hand-picked suppliers (whose products are sold under their own labels) they are able to negotiate substantial discounts.
‘Central to achieving a company’s corporate vision is the need to build up a loyal customer base of satisfied customers.’ (Fifield.P, 2007:153) Some marketing strategies such as