Session 2
Tesco
- What’s next for Tesco? Where and how can it grow? Who will it target?
The next growth I see for Tesco is branching into the automobile/gas sector. This sector promises growth since the consumer always looks for ways and means to save money, especially in the context of frequently rising price of fuel. This will target anyone who owns or operates a vehicle that needs or requires gas (Fletcher, 2006).
- How can Tesco take its customer loyalty programs to the next level?
Tesco can take its customer loyalty program to the next level by giving them incentives instead of loyalty points. Tesco, being the second largest giant, can adopt the Walmart’s approach and give gift cards to customers so that the customers can actually use the money back in the store.
IKEA
- What are some of things IKEA is doing right to reach consumers in different markets? What else could it be doing?
Some of the things that IKEA is doing right are as follows: (a) diligently researching each market to see what its consumers’ interests are, rather than offering the same items in all stores; (b) ensuring that items in a store in a region target the demand in that region; (c) having presence all over the world, thus increasing its visibility; (d) providing customers easy access to IKEA stores, which are located around 50 miles from the center of cities; and (e) offering its products at affordable prices (Capell, 2005).
IKEA could consider online sales/retail, use social media to increase awareness, offer coupons, and expand to new markets that have not been touched yet.
- IKEA has essentially changed the way people shop furniture. Discuss the pros and cons of this strategy.
The Pros: The layout of the store and the arrangement of a wide range of items are designed in such a way that customers see what is available with ease. IKEA also offers convenience for the customers; since everything is boxed, it is easier to transport and assemble items (“The IKEA Concept”).
The Cons: The size and scale of IKEA is mind-boggling. Since IKEA has a large wide variety of products, it can create a negative effect on the way customers perceive the company. Since everything is stored on the floor of the store, it can be a bit overwhelming to the customers who try to figure out where to begin when they visit the store to purchase furniture.
Accenture
- What has Accenture done well to target its B-to-B audience?
Accenture has done very well in targeting B-to-B audience by creating brand awareness in professional services through global marketing campaigns and by being a part of Anderson consulting (“Annual Reports”).
- Has Accenture done the right thing by dropping Tiger Woods as its spokesperson? Discuss the pros and cons of its decision.
Accenture has done the right thing by dropping Tiger Woods because when he was the spokesperson of the company, he was at the top of his career had a good reputation, clean image, and was overall known as a family man.
The Pros: His name is a advantage; since Tiger Woods is considered a household name, his brand added value to the products he endorsed. Since he had a large following, there was also a possibility of more people trying out the product.
BMW
- What are the pros and cons of BMW’s selective target marketing? What has the firm done well over the years and where could it improve?
The Pros: The brand and its reputation. The company stands 100 percent for its product. Another advantage is its making of affordable series for individuals who cannot afford the three series and up.
The Cons: The price can be a bit overwhelming for an average consumer. The upkeep/maintenance can get very pricey due to the expensive parts, and running on gas also makes its use premium. Its targeted market, according to me, could hinder potential buyers since they may feel that they cannot afford it.
The firm has done well by branching off into different products other than cars. It offers motor cycles, kids’ cars, and race cars. It has also ensured that its cars run less on petrol.
- BMW’s sales slipped during the worldwide recession in 2008 and 2009. Is its segmentation strategy too selective? Why or why not?
Yes, BMW’s segmentation strategy is too selective. Prior to recession, the consumers whom BMW targeted were the “upper yuppies” such as CEOs, bankers, and people who made over six figures a year or close to it. When recession hit, the bankers and CEOs of companies were the first to be affected by the financial struggle (Edmondson, 2004).
References
Annual Reports. Retrieved from http://www.accenture.com/us-en/company/annual-report/Pages/index.aspx
Gail Edmondson (2004, June 28). BMW: Crashing the Compact Market. Business Week.
Kerry Capell (2005, November 13). IKEA: How the Swedish Retailer Became a Global Cult Brand. Business Week.
Richard Fletcher (2006, January 29). Leahy Shrugs off Talk of a “Brain Drain.” Sunday Times (London).
The IKEA Concept. Retrieved from IKEA.com
