Thursday, December 6, 2012

Stakeholder Conflict - Tesco


       Article 1:
  • The conflict is between the employers and the the worker.
  • The nature of the conflict is they want the job but the pay and condition are under threatening because of plans to transfer them from Wincanton to another firm.
  • The negative result is the worker, they are gonna strike and also the TESCO supplies will be affected.
  • My advice is to transfer the employees to another firm and raise their paid.



  • Article 2:

  • The conflict is between Tesco and its shareholders, who are all over the place.
  • The nature of the conflict is Tesco wishes to change the conditions for fired board members, so that they are settled with more money even though they lose their job.
  • The negative result is the investors have jumped off and not reelected members, but then pressure from media about Tesco's growth caused the rest of the investors to stay with Tesco. 
  • My advice is Tesco should give board members not as much money as originally planned, but a bit more than what they got before, this way, everyone should be satisfied.


  • Article 3:

  • The conflict is between Tesco and its customers
  • The nature of the conflict is Tescopoly goes against Tesco, adapting their name from the company's name, which refers to the dominance of one firm over the whole market.
  • The negative result is Retailers therefore try to get the customers away from Tesco and give the company a bad image to the consumers, but Tesco still believes in its customers because they are still making profits for Tesco. 
  • My advice for this case is they can set standard prices for items and only allow certain items for each firm to be on sale at a time, this would eliminate most competition and promise profits for both sides.



















    Article 4:

  • The conflict here is between Tesco and the local community, which already has 3 Tesco markets.
  • The nature of the conflict is 130 citizen representatives got together in a community council meeting and voted against the development of yet another Tesco. 
  • The negative result is Tesco wanted another store in that particular location was because there is a lot of traffic in that area.
  • My advice for this situation is Tesco is allowed to build this new store of theirs, but would then need to close down one of the three existing stores as soon as the new one is able to operate.

















    Article 5:

  • The conflict here is between Tesco and its suppliers, a bakery in Manchester.
  • The nature of the conflict is they are planing to close the bakery because Tesco wants to increase its supplies from other bakeries instead. 210 jobs would then be lost. 
  • The negative result is the workers of the bakery are very unhappy. When they asked if they couldn't just relocate or produce different products, they were told that there wasn't the capacity to do that. 
  • My advice for this case is Tesco could make a deal with another retailer of baked goods, so that the bakery would then supply them instead of being closed. 

















Tuesday, December 4, 2012

The Promotional mix

Promotional Mix: the combination of promotional techniques that a firm uses to communicate the benifits of its product to comsumers.

Produc life cycle is the succession of strategies used by business management as a product goes through its life-cycle. The conditions in which a product is sold (advertising, saturation) changes over time and must be managed as it moves through its succession of stages

  • Introduction
  • Growth
  • Maturity
  • Decline
Before get in the market, it needs to developed. During the development and then the introduction of a product, marketing costs are the highest because no one knows about the product yet. A certain budget of how much is to be spent on promotion needs to be determined as well. If they want have the consumers base they need to try to impress the consumers that their products are good, are attract not only the consumer in that country but also to foreign. Now marketers need to make sure that people know the product is better than its competitors, so they have to create new advertisements for this cause, but they don't necessarily need to create an entire new promotional strategy. As soon as you have a customer base, it can only build, and you need to work on this build, you don't necessarily need to lower prices by doing so though. When the product enters the maturity stage of its life cycle, marketing experts need to work on keeping their new customers with them, that is create a customer loyalty. They can do so by giving long-time customers special rewards, bonuses or discounts. They could also offer special sales for consumers who just switched to the product when buying one of the competing products before. 
                                                                                                                                                                                     

Distribution Arrangement

What are their advantages? What types of products are most likely to effectively be distributed in each way?What issues must be considered when choosing a distribution channel? What are some of the things you must consider about selecting a channel partner?

Intensive
Intensive distribution is when suppliers or producers try to sell their product through as many as possible. That way, they get their product out to a much larger audience and consumers base and therefore have higher sales than if they would just distribute their product through selected retailers. This is also beneficial to most retailers because that way they get to offer a greater variety of products and have more consumers. 

Selective
Selective distribution is when producers only sell their product through a few, obviously selected, retailers. They limit the number of places where their product can be sold. Often, producers need to pick the sort of retailers they want depending on certain criteria, which must not go above the edge otherwise they will never find a retailer that meets all criteria. 

Exclusive
Exclusive distribution is when just a single type of retailer has the rights to sell a product. This way the product seems very "luxurious", which may make it very attractive to its target consumers. Another advantage of exclusive distribution is that customers may get especially good service and attention as they may come to the retailer to buy that one specific product that is only sold there.

Integrated
Integrated distribution is when producers directly sell their product without selling it to a retailer first. This way, the producer can make much more money off their product because retailers will not need to raise prices to make a profit themselves.