Marketing Strategy of TESCO: STP, Marketing Mix, and Relationship Marketing

Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Analysing the STP strategy of organisation that including segmentation, targetting and
positioning...................................................................................................................................3
Elements of marketing mix.........................................................................................................5
Relationship marketing strategy with the current tactics............................................................7
Recommendations for organisation that use marketing strategy................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12
Books and Journals:..................................................................................................................12

INTRODUCTION
Marketing is the process that involves selling, promoting, distributing and researching. It
focus on mainly study of consumer behaviour and market environment that helps to increase the
sales and revenues (Čorak and Šnajder, 2016). It analyse the current market trend that help to
identify and analyse the taste and preferences of customers. This report covers the marketing
strategy that adopted by companies for target the market. Market strategy is used for target the
market, positioning and segmentation. In this context, TESCO is undertaken for the analysing of
market strategy adopted by the companies for accomplishment of their goals and objectives.
TESCO is the British retailer that produces groceries, books, clothing, food products, etc. This
report undertakes models and concepts that help to analyse the market situation such as
marketing mix, STP model. These concepts giving the ideas of practical applicability of concepts
and model in the market. This report also covers the recommendations that help to TESCO to
undertake suggestions for their benefits.
MAIN BODY
TASK 1
Analysing the STP strategy of organisation that including segmentation, targetting and
positioning.
There are many factors that influence the marketing management decisions that are
macro and micro factors. Macro factors include political, social, economical, technical,
environmental and legal that are external factors which beyond on control. Micro factors are
internal factors that can be control by the organisation by improvising the internal factors. All the
products and services that offered by the TESCO, doesn't necessary that all of them are attractive
at equal terms. So it is necessary for TESCO that they should focus on targeting and positioning
on market. For that reason TESCO follow STP strategy that gives the ideas to the organisation
for targeting, segmentation and positioning. It can be explained well in the given following
points:
Market Segmentation: Market segmentation is basically division of population according
to their needs and wants. It can be divided people into the groups according to their needs and
wants that give the basic ideas of products and services required in the market. It can be

classified on the basis of demographic, behavioural, geographic and psychographic (Dagdee and
Philip, 2019).
 Geographic: TESCO have stores in approximate 14 countries that cover both the sector
urban and rural.
 Demographic: TESCO divided groups on the basis of age, gender, education, income,
occupation, size of the family, etc. They cover all age group, both gender, lower and
middle level people, children and students, etc.
 Psycho-graphic: TESCO bifurcated their products and services after the analysis of
psychology of customers. They choose lifestyle and personality of customers, including
traditionalist lifestyle.
 Behavioural: TESCO analyse the needs and wants of the customers according to
occasions, attitude and status.
Positioning: It is the element that determines the position of TESCO products and
services in the market. It involves the element of marketing mix that helps to attract their
customers for targeting the market. TESCO use many types of positioning strategies because of
their wide range of products and services (Diamond, 2016). Detail of positioning strategies are
explained below:
 Functional positioning: TESCO used this positioning strategy through selling the
TESCO finest products and services. For effective application of functional strategy
TESCO focus on the functions that provided in their products and services. It can be done
through increasing in the equality of products and services that they render.
 Symbolic positioning: TESCO try to analysing the values and aims of customers that
helps to decide their taste and preferences. TESCO sell one of the important products that
cover very narrow segment but they adopt because of satisfying their values and
aspiration i.e. Fair Trade.
 Price positioning: It is already known by the customers that TESCO sell their products
at low prices, because they have the aim of minimum prices. So that they cover the larger
segment of population. Experiential positioning: It is the strategic process that determines the needs and wants
of customers which helps to create and develop the products for serving the experience.