Tesco Marketing Plan and Strategy

The report provides information on the importance of marketing in Tesco, the marketing mix, SWOT analysis, and the need for a new marketing plan to achieve business objectives. It also discusses the role of marketing managers and employees in performing marketing activities and emphasizes the significance of marketing plans in big organizations like Tesco.

Higher Nationals
Assignment Brief – BTEC (RQF)
Higher National Diploma in Business
Student Name Bejenari Marcel ID Marcel.HE10016
Unit Number and Title Unit 2 Marketing Essentials
Academic Year 2019/2020 Cohort April 20 Term 1
Unit Leader Assessor Luigi Borrello
Assignment Title The importance of the marketing function and marketing
Issue Date 27/04/20
Submission Start Date (Formative) 15/06/20
Submission Summative 27/06/20
IV Name Syed Ahmed
IV Date 27/04/2020
Learners Declaration: I certify that the work submitted for this unit is my own and the research
sources are fully acknowledged.
Learners Name: Bejenari Marcel Date: 27/06/2020

Contents
Introduction......................................................................................................................................3
LO-1.................................................................................................................................................4
Explain the key roles and tasks of the marketing function..........................................................4
How roles and tasks of marketing relate to the wider organisation.............................................6
The roles and tasks of marketing in the marketing environment.................................................8
The implication of interrelationships between marketing and other functional units.................9
LO-2...............................................................................................................................................10
Comparison of two companies marketing mix to the marketing planning process to achieve
business objectives.....................................................................................................................10
Different tactics applied by Tesco to demonstrate how business objectives can be achieved. .15
LO-3...............................................................................................................................................16
a basic marketing plan for Tesco...............................................................................................16
Coherent evidence-based marketing plan for Tesco..................................................................21
Conclusion.....................................................................................................................................22
Reference:......................................................................................................................................23

Introduction
Marketing is very essential for all kind of venture in the market. This is the most dynamic and
effective function in the organization. This function deals with customer service and satisfaction.
Marketing is the function of making a profitable relationship with the customer and build a
sustainable association. This report illustrates the function of marketing in the Tesco super shop.
As per the report, my role is the junior marketing manager of Tesco limited. This report will
cover the significant responsibility of marketing in Tesco Limited along with the marketing plan
and the impact of the marketing mix in the growth of business and customer satisfaction.

LO-1
Explain the key roles and tasks of the marketing function
The status of Marketing
Marketing means establish a profitable relationship with the customer and make a sustainable
association (Armstrong et al., 2016). It helps Tesco to continue its selling and operation. In every
function, marketing performs some roles and responsibilities. Without the contribution of the
marketing department, Tesco cannot sales its products and increase its brand value.
The prime role and obligation of the marketing department of Tesco are illustrated below:
Carry on market research: The marketing department of Tesco mainly do marketing research
in the UK market. The department will find out the market demand and gather information for
expanding the market in new regions. These are the most significant information of the Tesco.
Make Marketing strategy: It is the most significant responsibility which is done by the
marketing manager. The marketing department set the best and appropriate marketing strategy
for the organisation which will help Tesco to increase their sales in the market. The manager has
to change the strategy by coping with the change of technology.
Pricing: The marketing department set the price of the product according to the market
demand and supply and by monitoring the rivals of the market. Setting price is the core task of
the marketing department. The manger analyses the financial condition of the consumers in the
region, the economic condition of the country and the competitor price. After that, the team of
marketing set the price of the product.
Relation with the customer: The marketing department directly communicate with the
consumers. This department maintains a good customer relationship and it becomes the most
valuable resource of the Tesco. Good relation helps to increase the brand value and make the
temporary customer to a loyal customer.
Risk-taking: The marketing department assess the market condition and can give forecasting
about the risk of Tesco. The marketing department helps to take an adequate risk in the market
(Armstrong et al., 2016). High risk can destroy the Tesco business. Marketing department help
by analysing the risk in the market.

Standardization and grading: The marketing department set the standard and grade of the
product. The standardization is a competitive advantage and this specification make the product
prominent in the global market (Winer and Dhar, 2014). It helps Tesco to increase the brand
image in the market and the position of the brand name of Tesco would be in everyone’s mouth.
This is the best marketing strategy which is used by Tesco.

How roles and tasks of marketing relate to the wider organisation
The marketing department cannot alone help Tesco to achieve success. For success, it needs
collaboration among the function of Tesco. To achieve the organisational goals and objective all
the function of Tesco must work in harmony and with collaboration like the team. The marketing
department needs aid from another department of Tesco. The relation of marketing with another
department of Tesco is stated below:
Financial Aid: Finance department works as the money source of Tesco. The marketing
department needs support from the finance department for conducting a marketing campaign and
survey. The marketing department does many kinds of task like the promotional campaign,
advertisement of the new product, sponsoring and many more (Ouwersloot and Duncan, 2018).
If the marketing department gets financial support and aid from the finance department of Tesco,
it will help the marketing team to do its task more efficiently. Without support, financial aid and
financial advice from the finance department the marketing department cannot operate its
functional task efficiently. Both need collaboration and support from each other.
HRM: HRM department of Tesco maintain all the human resource and employees in the
company. Marketing function needs qualified and talented employees in the department.HR
department recruits the best and talented employees for the marketing function. The talented
Roles and
functions
of
Marketing
Financial
Human
resource
functions
Production
Operational
Sales
Distributi
on

employees of Tesco help marketing to do their task properly and efficiently. It increases the
productivity of marketing employees. The HR department provide training to the employees of
marketing and make them expert in marketing task. The skilled employees bring change in the
marketing function and increase its efficiency and effectivity.
Sales and service department: The marketing department need help from the sales and service
department. The strategy of marketing help to boost the sales of the Tesco. The information from
the sales department is very significant for the marketing department. Based on the sales quantity
the marketing department set their strategy.
Production department: The production department must need information about consumer
choice and demand. This information is given by the marketing department by analysing the
market (Cravens and Piercy, 2019). Both production and marketing department need harmony
between each other. It helps both the function to help the Tesco to reach its goals and objectives.
Distribution department: Distribution function needs support and help from the marketing
department. As distribution is part of marketing. Marketing establishes the most effective supply
chain system which helps distribution to distribute the product of Tesco in every outlet. Efficient
and effective supply chain help Tesco to reduce the cost of the product.
Operation: The operation department works as the hub of all department. The operation
department monitors the work of the marketing department and merges with another department
(Ouwersloot and Duncan, 2018). The operation department helps the marketing department of
Tesco by giving guidelines and direction from the top management.

The roles and tasks of marketing in the marketing environment
Marketing becomes the game-changing function of any organisation. The new concept and
tactics of marketing can boost sales of any organisation up to the peak. The efficiency and
effectiveness of marketing can be the competitive advantage of Tesco. The marketing manager
and the fellows must perform the duties properly. The marketing manager does the most
significant task of preparing the marketing plan the marketing mix for the Tesco. To sustain in
the market the marketing manager must analyse the market properly, assess the competitor and
analyse the consumer demand (Kotler and Keller, 2020). This information is very significant for
the growth of the Tesco. Based on the information the organisation prepares the annual plan of
the Tesco.
These roles of the marketing functions help Tesco to build good customer relation and build
positive brand image in the UK market.

The implication of interrelationships between marketing and other functional
units
Interrelation among the function is very crucial for the Tesco. It will not possible for Tesco
marketing to achieve the organisational goal and objectives alone. Good communication and the
collaboration among the function help Tesco to keep good doing in the market. The R&D,
finance, HRM, production must need help from the marketing department and vice versa. All the
department work as a team and achieve common goals.
HRM department helps marketing by recruiting the best and talented employees. Finance
department help by giving the right budget for the marketing department (Kotler and Keller,
2020). Finance department allocates the estimated budget of the marketing department in time so
that the marketing department can run their campaign and promotion activities in the crowning
time. Like this, all other departments help marketing to achieve organisational goals.

LO-2
Comparison of two companies marketing mix to the marketing planning
process to achieve business objectives
A marketing mix is a tool that helps to evaluate the external factor of the business and especially
the customer demand which helps Tesco to decide on the organisation. The marketing mix has
seven components. This marketing mix helps the marketing department to achieve its functional
goals. The comparison of the marketing mix between Tesco and Sainsburys is given below;
Source: Marketing Mix (Pulido Polo, 2018)
Company profile of Tesco:
Tesco is a British multinational company of grocery product. Tesco is a super shop. The
headquarter of Tesco is in Hertfordshire England. Tesco is the third-largest super shop by its
earning of the globe. Tesco operated its business in seven countries of the globe including Asia
and Europe. It was founded in 1919. According to 2019, Tesco has 6800 shops all around the
Marketing
Mix
Product
Price
Place
Promotionpeople
Process
Physcial
Evidence

world. In Tesco total of 480000 employees are working throughout the world. Tesco has many
brands and portfolios. Tesco Bank, Tesco Mobile, Booker group are the brand of Tesco. Tesco
becomes the 28Th largest company according to the list of UK stock exchange
Company profile of Sainsbury:
Sainsbury is the second-largest super shop of UK. It was founded in 1869 by John James
Sainsbury. Sainsbury holding has three segments in the company. They are Sainsbury
supermarket, Sainsbury Bank and Sainsbury. The headquarter of Sainsbury is in London,
England. Total 11688 employees are working in Sainsbury all round the world. Sainsbury has
many subsidiaries like Salisbury Bank, Sainsbury supermarket and Salisbury Argos.
Component Tesco Sainsbury
Product Tesco sells a wide range of
product in the UK market. It
includes food, clothing,
electronics and bank service.
Tesco has 40000 products
including grocery products.
Tesco has international level
cuisine in the UK. Tesco has
home appliance product, baby
product, beauty and saloon
products and grocery item in
their outlets.
In Sainsbury supermarket, there
have more than 30000 products.
It has fruits and vegetables,
Dairy, Chills, Bakery, bear and
Wine. It has more sector like,
Beauty and saloon, baby
product, household product.
People of the UK get any kind
of product in Sainsbury which is
related to their life. Sainsbury
provide quality full product to
its customers. Sainsbury has a
coffee shop along with a petrol
station in the UK (Buzzell,
2018).
Price Tesco strategy is to charge very
less price than the competitors.
It is the main step that helps
Tesco to become the leading
market leader in the UK
(Bhasin, 2020). Tesco provides
club card system to its member.
Sainsbury charges a moderate
price to its customers. The main
target customer of Sainsbury is
household and families.
Sainsbury uses the strategic
value for money and charges a
different price for its products.

Points of the card help customer
to buy the item with less price.
Sainsbury tries to establish good
customer relation by charging a
low price with high quality.
Sainsbury offers competitive
pricing in the market as it has
very strong competition in the
market.
Place Tesco operated its business in
seven countries of the globe
including Asia and Europe. It
was founded in 1919. According
to 2019, Tesco has 6800 shops
all around the world. Tesco two
main channel of distributing its
products. One is online and
another one is offline.
Sainsbury has 608 supermarkets
and 423 shops all over the
world. Sainsbury has strong
domination in the UK.
Supermarkets of Sainsbury has
Kiosk and self-service facility
for the customers. Sainsbury has
a coffee shop and petrol station
in the UK (Buzzell, 2018).
Customer can order their
product through online and
offline. The product will deliver
their home within 1 hour.
Promotion The low price of the product is
the main marketing campaign
for Tesco. True words of charge
low price become the brand
image of Tesco in the UK
market. It advertises on the
television, newspaper and also
in social media. The online
Facebook page and the website
work as the promotion platform
the Tesco. Tesco also offers to
buy one get one, buy two pay
half promotion for increasing
the selling in the UK market
Sainsbury takes both the BTL
and ATL strategy for promotion.
It used online, newspaper and
television marketing and
promotional campaign of the
products. Sainsbury used
incentive and database system
marketing policy for promoting
the brand name and its product.
Sainsbury has done CSR work
in the UK and it is working as
the promotional tactics for
Sainsbury.

(Sood, 2019).
Process Tesco also follows the specific
process and it helps the Tesco to
minimize their cost. Specific
process means a definite step
which is following to complete
any task. Through the customer
card, every consumer pays their
bill and it needs less time to the
checkout from the shop. Online
service and the application of
the shop make it easy for the
customer to buy Tesco Product.
Sainsbury follows a specific
process and supply chain. It
helps Sainsbury to reduce its
cost. In the shop, every
customer buys products and go
check out point for payment. In
that Sainsbury provides two
facilities one is Kiosk and self-
service facility for the
customers. Customer needs less
time for purchasing the product
from Sainsbury (Sood, 2019).
Online service is also available
in Salisbury. The delivery boy
of Sainsbury delivers the
product within one hour in the
UK.
People In Tesco total of 480000
employees are working
throughout the world. Tesco has
many brands and portfolios. The
top management provides
authentic information to its
stakeholders and makes good
relation with suppliers and the
investor. The Tesco team pay
well facility and good
remuneration to all of its
employees
Total 11688 employees are
working in Sainsbury all round
the world. Many suppliers and
investor and stakeholder are
related to Sainsbury. The HR
team and top management look
after them carefully with respect
and honour.
Physical Evidence Tesco outlets are well designed
and remain clean always. The
environment of the outlets is
hygienic and healthy. It was
All the outlet of Sainsbury is
well prepared and the design is
the same for brand recognition.
Sainsbury has 608 supermarkets

founded in 1919. According to
2019, Tesco has 6800 shops all
around the world. Tesco two
main channel of distributing its
products.
and 423 shops all over the
world. Sainsbury has strong
domination in the UK.
Supermarkets of Sainsbury has
Kiosk and self-service facility
for the customers (Bowman and
Gatignon, 2018).

Different tactics applied by Tesco to demonstrate how business objectives can
be achieved
The marketing mix is the most significant tools that are used by the marketing department of
Tesco. It includes the product, price, place, process, physical evidence, promotion and people.
All these factors are very significant for the marketing department to achieve organisational
goals (Bowman and Gatignon, 2018). This marketing mix helps Tesco to cope with the change
of the market and face the challenges. The product and promotion attract the customer to
purchase the products from the Tesco. The place increases the brand value and price help to
increase the product. People manage the organisation and process reduce the cost. All these
factors are very significant to achieve organisational goals and objectives.
All these factors must be analysed by the marketing manager and the Tesco team. After that, the
price should be introduced. The promotion and marketing must be based on the demography and
the behaviour of the people of the UK region. So, it can be said that marketing tactics help Tesco
to achieve its organisational objectives.

LO-3
A basic marketing plan for Tesco
To achieve the goals and objective of the marketing function as well the organisation Tesco
marketing need to develop a marketing plan for the organisation. The marketing plan of Tesco is
illustrated below:
Company profile of Tesco:
Tesco is a British multinational company of grocery product. Tesco is a super shop. The
headquarter of Tesco is in Hertfordshire England. Tesco is the third larger super shop by its
earning of the globe. Tesco operated its business in seven countries of the globe including Asia
and Europe. It was founded in 1919. According to 2019, Tesco has 6800 shops all around the
world. In Tesco total of 480000 employees are working throughout the world. Tesco has many
brands and portfolios. Tesco Bank, Tesco Mobile, Booker group are the brand of Tesco. Tesco
becomes the 28Th largest company according to the list of UK stock exchange.
1. Market research:
To become successful marketer the first thing is Tesco should do market research properly.
Market research helps to know the market condition, consumer preference, the economic
condition of the country, competitor weakness and many more. This information works as the
sword for the organisation on the battlefield (McDaniel and Gates, 2019). Based on the
information the production department will produce the product and the R&D department try to
create a new product to satisfy the potential customers. To stay in the market Tesco has to
compete with the competitor. As in this industry, there have more giant organisation. The market
research helps Tesco to understand the competitor weakness and consumer demand. So that
Tesco can capture the market and achieve the brand value in the market. The marketing function
does the more significant task in the organisation. Based on the research data all the function of
Tesco run their operation and Tesco top management can make their plan based on the
information of the market.

2. Competitive analysis:
Strength
 Tesco is the biggest retailer of UK and
it is the strength of Tesco.
 Tesco has a 27% market share in the
retail industry of the UK.
 It has 6800 retail stores in 14 countries
and more shops in different regions.
 Tesco has many products in the store
and it covers almost all the people of
the country. More people are engaged
with the business of Tesco (ventral et
al., 2020).
 Tesco uses the technology in the
Weakness
 Tesco failed to capture the market of
USA and Japan.
 Tesco trapped in 2017 in the false
accounting scandal.
 The profit of Tesco is going down in
the market.
 Tesco has a very low-cost strategy
which is the main weaknesses of
Tesco.

organisation and it is one their strength.
Opportunity
 “Jack” business of Tesco has in growth
and this is another opportunity for
Tesco to expand its business.
 Tesco should do a joint venture to other
companies to enter new territories.
 Tesco should strong their online store
and this is the new market place of the
future.
 Tesco should enter the emerging
market like South Korea, Indonesia and
Turkey.
Threat
 Christmas controversy is the threat
that created a huge loss for the Tesco.
 Brexit becomes one of the threats to
Tesco.
 The high competition in the market is
one of the threats to Tesco.
 Economic crisis and the credit
increase are in Tesco is the threat for
Tesco (ventral et al., 2020).
3. STP of Tesco:
Segmentation Targeting Positioning
Market segmentation means
dividing the market based-on
demography, age, race and
religion.
Targeting means select the best
segment among all segments of
the Tesco. For the specific
segment, the marketing
department of Tesco will
prepare the strategy.
Positioning is a psychological
aspect and it means to make a
mark in the mind of the
consumer. If Tesco can do
positioning consumer only think
about Tesco if they feel any
necessity.
Tesco has many kinds of
product for all kind of segment.
Tesco has a product for men,
women and kids. Based on price
Tesco has high price product for
the upper-class people and low-
price product for the middle-
Among all segments, Tesco
gives their focus on the family
segment and grocery items for
the women. Tesco charges a
very low price for the middle-
class families. So, among the all
segment Tesco target the
The European and UK market
people are very fond of Tesco. If
they any product they first think
about Tesco.

class people. middle-class families and people
in the UK.
4. Goals and Objectives:
Tesco marketing department has some goals and objectives. The marketing department tries to
achieve these goals and objectives. These are given below:
 Increase sales by 10%.
 Improve customer relationship management.
 Develop a new strategy for a new trend and demand.
 Implement Technology in the marketing department.
 Enter the new country and territory.
 Design a new portfolio and enter join venter in the emerging market.
5. Tactic and strategies:
To achieve the above goals and objectives the marketing department of Tesco have to prepare
new strategies. The new marketing mix of Tesco is given below:
Product: Tesco should develop a new product to increase sales. Tesco can enter the equipment
and software market. This is one of the emerging markets in the world. It will help them to
increase their sales.
Price: Tesco should take a low pricing strategy in the organisation. It will help them to reach
many people in the Tesco company. Most of the people in the UK are from a middle-class family
(Ouwersloot and Duncan, 2018). So, to increase the sales and engagement with the customer
Tesco should charge less price to the customers.
place: Tesco should enter new emerging countries and territories for expanding the business. It
will help Tesco to increase the brand name all over the world and become a global company.
More territory means more sales and it helps to increase the number of sales (Du Plessis, 2012).

Tesco should enter Asian and African market. These two markets are the most emerging position
in the globe for business.
Promotion: Tesco should change its promotional strategy. Before, everyone does promotion and
marketing in offline by spending huge money. But now everyone does the promotional campaign
in online, as the online market becomes the most emerging market for every business company
(Ouwersloot and Duncan, 2018). To achieve the goals and objectives Tesco should use this new
marketing mix.
6. Innovation has taken by Tesco:
Tesco has developed a new robot which starts doing the delivery. The robot can deliver within
the 3 km of the store and the robot is controlled by the smartphone. Tesco has also developed a
Tesco app for the consumer. The consumers can search any grocery item in the app and the app
will show is it available in the store or not. The Tesco lab tries to innovate one tough shopping
system in Tesco. The innovation is one of the ways of tasting. These innovations increase the
sales of Tesco and the traffic of the consumers will increase in the stores. The consumer feels
easy and the shop becomes more convenient for the consumers.
7. Sales analysis:
The sales analysis of Tesco 2016, 2017,2018 and 2019 are given below:

In this chart, we can see that the sales of Tesco are rising in the market. In 2016 the sales of
Tesco were 47869 million dollars and in 2019 it rises by 9024 million dollars. It is indicated that
sales are rising in the market each year. Tesco gradually rises its sales by adopting a new strategy
in the market.
This chart shows the amount of revenue which is increased for the increase in sales. In 2016 the
revenue was 53933 million dollars and in 2019 the revenue was 63911. The revenue was an
increase of 9978 million dollars. So, it can conclude that Tesco is on the right track and able to
fulfil the demand of the consumers.

8. Budget allocation:
The hypothetical budget for the new marketing plan is given for Tesco. This budget will help
Tesco achieve the goals and objectives
Coherent evidence-based marketing plan for Tesco
The marketing plan helps Tesco to operate the marketing department. A plan starts with the aim
and objectives and the implementation of the plan help to achieve the objectives. An evidence-
based marketing plan includes a new product, new strategy, new promotional campaign and new
pricing strategy (Du Plessis, 2012). The plan reduces the cost and helps Tesco to change the
strategy and to cope with the environment.
The new marketing mix and the plan are necessary to achieve new goals. As Tesco wants to
expand its territory and the revenue it should need a new marketing plan. As the existing plan
may not work in other country and continent. So, to achieve the new goals and objectives Tesco
should introduce new marketing mix and plan in the organisation.

Conclusion
This report gives in details information about the essence of the marketing function of Tesco
organisation. Marketing is one of the most significant functions of any organisation. The
marketing manager and the employees perform all the activity of the department. The efficiency
and visionary power of the manager can bring success for the Tesco. This report gives
information about the marketing strategy like marketing mix and swot analysis. Besides students
understands the importance of a marketing plan in the big organisations.

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