Budget Allocation For Internal Communication Marketing Essay

Budget Allocation For Internal Communication Marketing Essay 1. Introduction Jack Cohen founded Tesco in 1919 when he began to sell surplus groceries form a stall in the East End of London. The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from T.E. Stockwell. He made new labels using the first three letters of the supplier’s names (TES), and the first two letters of his surname (CO), forming the word TESCO. The first Tesco store was opened in 1992 in Burnt Oak, Edgware, Middlesex. Tesco was floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited. The first self service store opened in St Albans in 1951 and the first supermarket in Maldon in 1956. Tesco is Britain’s leading retailer. It is one of the top three retailers in the world, operating over 3,700 stores globally and employing over 440,000 people. Tesco operates in 13 countries outside the UK- Republic of Ireland, Hungary, Czech Republic, and Slovakia etc. It has its headquarter in Chesnutt, It ha s many types of stores and include Tesco Extra (24 hour), Tesco Metro (located in +town centres) and Tesco Express (attached to garages). It sells many things including food and non food items. These item include food, drinks, toiletry, CDs, DVD, books, medicine, clothes, organic food. The type of ownership that my company has is public limited company. This means it is a large company with many employees. It has shares on the stock exchange and anyone over 18 can invest in a share. Currently it is estimated that 88%of all UK food is sold through a small handful of supermarkets with Tesco being the market leaders. This equals to market sales of over  £62bn per annum clearly highlighting the buying power the supermarkets have over the supply chain. The mail players are Tesco, Sainsbury, ASDA and Morrison who compete on price and quality. Tesco has recognized that their customers are motivated primarily on price and have positioned them self’s in the market as a value added s upermarket. 3. Budget: A budget is generally a list of all planned expenses and revenues. It is a plan for saving and spending. A budget is an important concept in microelectronics, which uses a budget line to illustrate the trade-offs between two or more goods. In other word budget is an organizational plan stated in monetary terms. The purpose of budget is to provide a forecast of revenues and expenditures and enable actual financial operation of the business to be measured against the forecast. So for this communication plan we have allocated a budget according to the category and nature of the communication. The budget allocation shows that more amount of money will be spend on advertising in TV/ Radio, Newspaper, Outdoor add. It is clearly sheen form the table that more amount of money will be spend on external communication than in internal communication with the help of which the company will communicate with its costumer more time to lunch its product and gives information a nd different offer to its costumer. 4. Target Market