Marketing Plan for Tesco: Enhancing Growth and Profits

This marketing plan focuses on Tesco's strategy to enhance growth and profits by analyzing the current situation, developing a marketing strategy, and implementing the marketing mix. It includes segmentation, targeting, and positioning strategies, as well as the 7 Ps of marketing mix. The plan also discusses the use of PESTLE and SWOT analysis to evaluate the external and internal factors affecting Tesco's business.

MARKETING PLAN

Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................3
INTRODUCTION.......................................................................................................................................3
SUMMARIZE ORGANISATION CURRENT SITUATION.....................................................................3
DEVELOP MARKETING STRATEGY.....................................................................................................5
MARKETING MIX....................................................................................................................................6
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................8

EXECUTIVE SUMMARY
Marketing plan is a strategic tool that provides an outline to advertising and promoting
the efforts with the goods and services in the coming year. This report includes Tesco that is one
of the largest retail superstore in the UK that deals in foods, home ware, baby products etc. In
recent years manager thinks to increase the growth of the business by using some modification in
their food so that they can enhance their market share and earns a high amount of profits. In this
the manager can analyse the current situation and than make a marketing strategy at last apply
the elements of the marketing mix that will helps in improves the growth(Hollensen, 2019).
INTRODUCTION
In today’s business environment growth and expansion of the business is the main
objectives of every enterprise. Marketing plan helps in this by providing the blueprint to
advertising the efforts in the coming year. It includes the situation analysis, marketing strategy
on the basis of which firm can perform their activities and achieves the targets. This report is
based on the Tesco that is one of the largest British multinational groceries and general store in
the UK. The main purpose of this organisation is to enhance the growth and earns a high amount
of profits in the coming year. It involves the analysis of current situation that helps in growing
the markets. it also includes segmentation, targeting, positioning in market strategy. Further it
includes the elements of marketing mix that helps in improves the growth and earns a
revenues(Kotler and et. al., 2017).
SUMMARIZE ORGANISATION CURRENT SITUATION
Situation analysis refers to evaluating the factors based on the internal and external
environment. In this manager of a Tesco can analyze the current situation of the market by using
PESTLE and SWOT analysis. This can be shown below(Dib, 2018).
PESTLE Analysis
It is a strategic tool that helps in analyzing the external factors that is helpful in
generating the profits and enhances the growth. in context of Tesco it can be explained
below(Perreault, 2018).

 Political factor – It includes the tax rates, tax regulation, and government stability in the
country. Tesco operates their business worldwide due to this many countries tax rates,
financial conditions is influence the company. Because of financial instability in the
world government of UK encourage food retailers to provide the jobs to the domestic
people. Due to this Tesco creates the employment opportunity due to this demand of their
products on worldwide also increases.
 Economical factor – This factor includes the GDP, inflation rate, demand and supply of
the products, spending power of the people in UK. The growth of the UK is high and
people are very aware about their spending on the products. Due to which Tesco can
create the opportunity of offering the new and modified foods that attracts the customers
top buy this and retain with the company(De Pelsmacker, Van Tilburg and Holthof,
2018).
 Social factor – This factor involves the attitude, opinion, and behavior of the people in
the society. In this UK people are very open minded and conscious about their health due
to this people prefer those products that is beneficial for their health. This will impact
negatively as they do not offer the products that are healthy and save the people from
obesity. For this they need to produce organic food range to attract the customers.
 Technological factor – This factor shows that the UK is advanced in context of
technology due to this people in this country are very active in the use of digital
technology and use of internet on their daily life. In this Tesco need to update their
technology in manufacturing the foods and also modified their supply chain so that they
will attract large base of customers.
 Legal factor – This factor shows the legal laws that are follows the company. In this
Tesco can follow the safety law that can safe the employees on the working place. In this
they also think to the welfare of the customers so that they can maintain their image in
the marketplace.
 Environmental factor – It is that factor that linked with protecting the ecology and
country environment from the hazardous activity. In Tesco they can use those machines
that reduce the waste in making the foods and follow environment laws so that they will
sustain in the market for a long period of time.
SWOT Analysis

Strength Weaknesses
The main strength of the Tesco is that it has
biggest grocery retail store in the UK and it has
geographical diversified in many countries like
European, North America and also in Asia. It
also offers the maximum employment
opportunity to the number of people who wants
the jobs.
Due to credit card liability and high debts
Tesco financial profits impacted it the major
weakness of the firm and it does not offers the
healthy food and some of their stores are not
performing well. due to this their growth
affected.
Opportunities Threats
The main opportunity is that they offer the
online shopping of the food with home
delivery services that the customers can enjoy.
The biggest threats it’s the competitors that
was present in the market like Sainsbury’s,
ASDA etc.
DEVELOP MARKETING STRATEGY
Marketing strategy refers to that strategy in which company can plan to reach their
customers and turning them into consumers of the product offerings that the organization
provides. In context of Tesco manager need to enhance their market growth and sales due to this
they need to analyse the market. From there they know the people of the society like to buy the
healthy food that helps in reducing the weight and make them healthy. So that manager can offer
the organic food range to their customers as per the demands in the market. For this they need to
segment, target and position the market that helps in earning the growth and sales(Brohi and et.
al., 2016).
Segmentation – It refers to a framework of splitting the whole market into smaller
groups and sections according to the needs and their homogeneous products. This helps in
selecting the suitable the target market to enhance the sales and profits without wasting the lots
of time. In context of the Tesco, manager needs to segment the market as per their needs and
desire and purchasing power. in this they segments the market as per customers attitude towards
the company and their addiction related to their health. so that they can earn high amount of
profits by focusing on that.

Targeting – It refers to the proactive selection of the market segments as per the
intention of focusing the firm’s marketing offers according to the group of related peoples. With
the reference of the Tesco manager need to target the market by use of market segmentation so
that they can deliver the products and services according to their needs and desires. In this they
target those people who are very much conscious about their health and spend more money on it.
This helps in earning higher profits and sales and also enhances the market share.
Positioning – It is the last step of the STP model that is based on gaining the competitive
advantage by position their products as per the customer demands and their needs. In context of
the Tesco, the brand image is very good due to this it helps in gaining the competitive advantage
and attracts the large base of the customers for their new food range. In this they need to promote
their products and communicate with the customers for the products so that it helps in position
the products(Langston and Loreto, 2017).
MARKETING MIX
Product – It refers to that good that a company can offers to its customers. In context of
Tesco they offer the organic food range to their customers so that they will purchase that and
firm earns high amount of profits. It can introduce the product as per the customers demands that
helps in enhancing the high amount of profits.
Price – In this element Tesco can set the price of their product in this they can choose the
premium pricing strategy because organic food production is costly and it is new in the market
and also fulfills the demands of the customers. so that company can use the premium pricing. In
this Tesco can use the club card system to their customers so that the customer gather the points
and enjoys the purchasing due to this they earns more profits(Fursov, 2017).
Place – It shows the presence of the company so that customers can reach it easily. in this
Tesco can spread their presence internationally and offers the products form their retail outlets.
in this they also use the online website to sale their products, like official website, Amazon.com
etc.
Promotion – in these elements of the marketing mix company can show the promotion
toll that they will use to attracts the large customer base and earns a high amount of profits. in

this manager of Tesco can promote their goods and services via traditional and modern tools like
radio, newspaper and social media. in today’s world social media tool is very trending where
people spends more of their time so it is the best platform for the company to enhance the sales.
This will also increase the growth and market share of the organisation.
People – In this Tesco can hire the employees for attending the customers and for
providing the customer satisfaction. in this employees are trained on solving and listening the
customers problems related to the company and its products and than they provide the effective
solution to them. This helps in retaining the customers for a long period of time and enhances the
growth of the business venture.
Process – In this element of the marketing mix Tesco manager can focus on the keep
customers happy for this they provide speedy billing services so that they cannot wait for long.
here, the manager focus on managing the grievance in the company so that everyone perform
their task with an effective way and achieve the goal of customer satisfaction and market growth
will be fulfilled(Tomcik, 2015).
Physical evidence – In this Tesco can sell their product with different and unique
packaging so that customers can easily identify the products and they are friendlier with the
company’s products. In this employees of Tesco can encourage the customers to purchase the
product offering and enjoys the benefits.
CONCLUSION
From the above report it is to be concluded that marketing plan is a prominent term to
increase the sales and enhances the revenues. In this company need to analyse the situation by
using PESTLE analysis and than make a marketing strategy that includes segmentation, targeting
and positioning so that they can manage and maintain their resources and products according to
this. It helps in enhancing the growth of the market. it also suggest the 7 Ps of marketing mix that
helps in managing all the activities to improve the growth and earns a high amount of revenues it
also focus on attracting the large customer base(Dib, 2018).

REFERENCES
Books & Journal
Brohi, H. and et. al., 2016. Strategic Marketing Plan of Nike.
De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online reviews and
hotel performance. International Journal of Hospitality Management. 72. pp.47-55.
Dib, A., 2018. The 1-Page Marketing Plan. Page Two Books.
Fursov, V.A., 2017. Marketing planning in industrial enterprises in the context of import substitution
strategy.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Kotler, P., and et. al., 2017. Marketing for hospitality and tourism.
Langston, R. and Loreto, D., 2017. Seamless integration of predictive analytics and CRM within an
undergraduate admissions recruitment and marketing plan. Strategic Enrollment Management
Quarterly. 4(4). pp.161-172.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Tomcik, L., 2015. Tying it all together: utilizing market research to inform a marketing plan and further
library branding. Public Services Quarterly. 11(1). pp.59-65.