Developing a Marketing Strategy for Tesco

This report analyzes the current situation of Tesco and develops a strong marketing strategy for the company. It explores different models for analyzing the external environment and evaluates the marketing mix for increasing market share. The report also discusses the importance of segmentation, targeting, and positioning in marketing strategy. The marketing mix elements of product, price, place, promotion, people, process, and physical evidence are examined in detail.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organisations current situation....................................................................................................1
Develop the marketing strategy...................................................................................................3
Marketing mix.............................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

EXECUTIVE SUMMARY
Marketing planning is a very complex process which include various activities. It is crucial
for organisation to analyse and evaluate market area in order to create effective marketing
strategy. It is recommended to use different model for identifying internal and external business
environment and create strong marketing strategy. Marketing mix in plan should be correctly
evaluated that this will support in enhancing market share as well as develop business.
INTRODUCTION
It is very important for a company to determine and analyse its current situation as this will
support in better decision for organisational growth. Marketing strategy of company will assist in
determine targeted customers for large market areas in order to increase sales of company
products (Hollensen, 2019). There are different elements that is includes in marketing of
products for improving growth and marker share of organisation. This report is based in Tesco
organisation. This organisation is dealing in retailing sector and headquarter of Tesco is located
in London, England, UK. In this report current situation of organisation is analysed along with
this strong marketing strategy is developed. Apart from this marketing mix is evaluated for
increasing market share of organisation.
MAIN BODY
Organisations current situation
Current situation of respective company refer as the market area in which organisation is
conducting its business activities. There are different ways that will support Tesco to analyse it
current market area and take better decision for increasing its performance. Different models that
can be used for analysing current situation is mention below.
PESTEL analysis
This model will help in determining external factors and its impact on business performance.
Factor Impact
Political factor Government rules regarding retail sector will
lead to influence over Tesco company. High
taxation policy of UK government will impact
in overall profits of Tesco.
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Economical factor High economic rate and strong GDP will have
positive impact on Tesco (Wood and Jobber,
2016). This will influence purchasing power of
customer and increase Tesco sales.
Social factor Tesco organisation is creating and
manufacturing its products by identifying
customer preference and requirement.
Technological factor High and innovative technology in market area
will influencing functioning and productivity
of Tesco organisations. Online mobile payment
is supportive in effective business
performance.
Environmental factor Climate and weather conduction will lead to
affect supply chain system of organisation
Legal factor Laws and legislation related to heath and safety
of customers and employees will affect
organisation.
SWOT analysis
This will assist Tesco company in determining its strength and weakness to create strong
strategies.
Strength Weakness
It is one of the leading company which is
offering different types of products to
customers.
Low cost strategy and poor performance of
company in some market area is its weakness
Opportunity Threat
Tesco has opportunity to expand business into
new market area. It should consider effective
marketing strategy to increase it sales and
value in market.
Strong rival company and changes in
government rule is threat to organisation.
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Porters five force
This is very effective framework in order to determine different force of industry and its
impact on Tesco performance.
Force Impact
Bargaining power of suppliers There are many suppliers in market area that
lead to lower bargaining power of supplier
force.
Bargaining power of buyers Tesco organisation is providing its products to
larger market area and force of bargaining
power of buyers is low.
Threat of substitution This company is offering variety of products to
customer and there are many organisation
which is offering same type of products. this
force will have moderate impact.
Threat of new entrant Due to less barriers in new entrant in retail
sector, this force will have moderate impact on
Tesco.
Threat of rival competitors. Respective organisation is conducting business
activities in highly competitive market. Threat
of rival competitors will have high impact.
Develop the marketing strategy
Marketing strategy can be describe as the framework that is develop by company in order
to increase marketing and promotional activities of organisation. This will include STP model
that is significant in identifying potential customer of company and creating strategy.
Segmentation – This can be describe as the process of classifying large number of
customers into different parts which is according to needs and wants of customers. Tesco
company segment is on the base of geographic, demographic, psychographic and behavioural.
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Segmentation of large market area will assist Tesco to determine potential customer who are
capable to purchase products of company.
Targeting – In this step Tesco company marketing professional will identify potential
customers from marketing segment (Kotler and et.al., 2017). This will assist in analysing all
those customers segment which have potential to purchase products and services offered by
Tesco. This organisation is targeting every one as this is offering variety of products which is
required by different age group people. Larger targeted market area will help in increase sales of
Tesco.
Positioning – This is the process of positioning company products is customer mind in
such as manner that they purchase products of Tesco. Positioning is very important for creating
positive impact on organisation and its customer for customers. Respective company is
positioning its products as high quality products which is able to meet with the need of
customers.
Marketing mix
This is significant tool that is very effective for creating strong marketing plan in order to
successfully attain objective of organisation. Marketing mix includes 7 P’s of business such as
products, price, place, promotion, people, process and physical evidence. This will lead to have
major impact in marketing strategies of Tesco.
 Product – This refer to the commodity and goods that is offered by company to its
customers. Tesco organisation is offering huge range of product which is developed by
considering the needs and requirement of customers. Diversity in products of Tesco is
very helpful in full filling need and requirement of customers.
 Price – This can be describe as the amount the is charged by organisation in exchange of
products offering. It is crucial for respective organisation to set appropriate price which is
according to the worth and value of products (Berestova, 2015). Tesco organisation is
based in cost leadership strategy which is significant in attracting customer and offering
high quality products at lower rates.
 Place – Tesco organisation is offering its products to different market area. This
organisation is selling its products through physical store that is located in several
countries. Respective organisation have more them 6000 store in all over the global
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market area. Tesco metro, Tesco extra, Tesco express and Tesco superstore are different
types of store.
 Promotion – This refer to the adverting strategy of organisation which will assist in
communicating feature of products to market area. there are different ways through
which organisation can promote its products such as new paper adverting, TV ads, online
promotion, social networking platforms and many more. Tesco organisation is consider
both traditional and modern methods to promote products and services.
 People – This includes employee and staff member of organisation that is conducting
different activities of organisation (De Pelsmacker, Van Tilburg and Holthof, 2018).
Tesco company is providing timely training to its employees which is support in
enhancing capability and potential of workers to conduct business task.
 Process – Process of Tesco can be describe as the number of activities that is required by
organisation in order to conduct business task. This organisation is considering high
quality of raw material in operational process which result into high quality products that
is able to meet with different needs of customers.
 Physical evidence - This includes all those elements that is supportive in enhancing
experience of customers to company. Tesco organisation have strong brand image in
market area that can be consider as the physical evidence of company. Logo, colour label
and other equipment are evidence of Tesco.
CONCLUSION
From the above report it can be concluded that there are it is essential for organisation to
consider effective and strong marketing strategy as this is beneficial in increasing sales and
profits of organisation. There are different approaches that will assist in determining current
situation of organisation in which company is performing its activities. Marketing strategies is a
blue print and according to this all marketing activities of organisation should be perform for
increase sales of company. Apart from this marketing mix is a very significant tool that will
assist organisation to develop strong marketing plan for accomplishing set objective of
organisation.
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REFERENCES
Books and Journals
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Wood, M.B. and Jobber, L., 2016. The marketing plan handbook. Pearson.
Kotler, P and et.al., 2017. Marketing for hospitality and tourism.
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.
Berestova, A., 2015. Marketing plan for a High-Tech Product.
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