CONCLUSION AND RECOMMENDATIONS

Conclusion

The thorough analysis of the primary and secondary sources in the previous chapters has enabled the researcher to arrive at a valid and logical conclusion to the research while answering the research questions and accepting or rejecting the research hypothesis. Thus it can be said that through the analysis of secondary and primary sources the hypothesis can easily be accepted that Tesco is affecting the small retailers of United Kingdom and the marketing strategies of this brand is directly and indirectly affecting the small retail brands in the United Kingdom. Therefore, it can be said that small retailers should adopt different and non-conventional strategies to attract customers.

Marketing strategies plays a very important role in the development of an organisation whether large or small and customers usually prefer organisations especially in the retail businesses that offer best quality with reasonable prices. The marketing strategy is applied within an organisation to gain a competitive advantage in the industry through increased sale of goods and services. In industries where competition is very high and industry giants are present smaller organisations need to implement effective marketing strategies in order to survive. The strategy of Tesco is based on the conventional marketing strategies and in order to attract new customers local retailers should go out of the box and adapt modernised marketing strategies.

Recommendations

There are certain recommendations that are associated with this research these recommendations are listed below:

1.      Small retailers should develop their own niche through relationship building with the customers and through this approach they can improve their sales trends.

2.      Retailers can adopt out of the box thinking by offering certain discounts and packages to customers in order to build their loyalty.

In the similar manner another important strategy in this scenario is that they can merge with other retailers and enhance their market share.

So far this manuscript has reflected on the major concerns facing small retailers. This segment considers a variety of actions that may assist small retailers to contend more successfully in the retail sector.

Buying groups/franchises

One of the major problems for small retailers pointed out in this paper is the buyer clout of large retailers. One strategy that small retailers have is to offset the buyer clout of large retailers is to form buyer groups to discuss with suppliers. For example, one of the small retailer associations told this researcher about a group it had developed, which was able to bargain prices on insurance as well as prices with wholesalers.

One type of buying group that a number of retailers form is called a symbol group. With symbol groups members disburse a fee and are usually required to acquire a specified quantity of their goods from the symbol groups wholesaler. In reply retailers obtain benefits from being associated with the symbol group including group buyer clout and so better prices and in a number of cases loans and financial support to make bigger or renovate retail units.

Another method small retailers can get into the benefits of a large buyer group, without the difficulty of setting one up, is to become a member of a franchise. There are a variety of types of franchise but the most commonly linked with franchising is the business format franchise where the franchisor gives authorization for the franchisee to sell the franchisors products or services. The franchisor offers a demonstrated method of trading in addition support and advice in setting up and operating the business.  While there is a price involved, if small retailers turn out to be part of a franchise they obtain the benefits of being part of a large association such as bigger buyer clout and brand identity (which was also a matter pointed out previously in this paper).

Franchises can also put forward potentially additional benefits over a simple buying group, these benefits might include:

•           A common store frontage

•           Common prices on certain goods

•           Deals with delivery companies

•           Brand identity.

So it is significant, for example, that business backing agencies are conscious, in their business support agenda and services, of franchising/buyer groups as a way of easing some of the issues faced by small retailers in comparison to their competition with large retailers.