Introduction to Marketing Assessment

This document provides an introduction to marketing and focuses on a case study of Tesco plc. It covers the current marketing strategy and position of the business, market segmentation criteria, and marketing strategies for Tesco. The document also includes a PESTEL analysis and SWOT analysis of Tesco's business performance.

Introduction to Marketing
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Current marketing strategy and position of the business.............................................................3
Market segmentation criteria which could be successfully targeted by the Tesco......................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is one of the essential part of an organisation, it helps to identify desired
customers for the company so they can sell their products and services to them and earn
probability. It is the activity, and process for creating, delivering coma communicating and
exchanging offering that have value for the customers, partners and society at large.
This report has been covered case study of Tesco plc. Which is a British retail
multinational company, selling varieties of product to the customers. They are operating 6800
shops in various locations and having collaboration with brands like one stop, Booker, Makro
etc.
This report will undertake the marketing audit of the Tesco business performance through
the PESTEL analysis and SWOT analysis. What the tool will help to identify strength and
weakness of the company, that will indicate the performance within the market. it will also
include set of Marketing segmentation criteria which could be successful targeted by the
business. This report will undertake this suitable market research to explain how this chosen
customer group can help Tesco company too grow within the retail marketplace. In the end of
this report provide a marketing strategy for the Tesco company so they can take competitive
advantages and show their presence as a emerging brand.
MAIN BODY
Current marketing strategy and position of the business
Tesco as one of the top leading company within the retail industry who are operating their
business all over the world (Fatricia., 2017). They're having a good reputation in the market and
continuously improving their business by using the effective strategies. to identify the strategies
used by Tesco, PESTEL analysis and SWOT analysis can we useful tools and it will also help to
analyse the performance, strength and weaknesses Of the company.
PESTEL analysis
Political factors

Tesco is operating their business within 12 countries that include Europe pan Asia. They are
exposed with many political factors that have direct impact on their operations. some of the
factors such as political instability, unemployment rates, text rates affect the strategies and
performance of the company. Attacks on the large supermarket that is known as Tesco tax was
introduced by a local councils but the government of UK deny are they refuse to avoid the price
hike. And similar initiative in the future can affect Tesco negatively. on the other side Tesco also
have good political support that helped them to get some relief from the government.
Economical factors
One of the most important economic factor is liberate that is affecting The UK supermarket
(Tirawatnapong and Fernando., 2018). In year 2018 minimum wages rates increased by 4.4%
which create negative impact on the Tesco becausr increasing Labour rate means they have to
pay more to the employees for their work. To overcome from this issue Tesco company bring the
Labour from the countries where they have to payless salaries. this strategy is helping them get
Labour in lower wages and big and spend money on they are training and Development. Another
important economical factor is raw material prices, the prices of the raw material is increasing
day by day which is affecting the profitability of the Tesco. to overcome from this problem this
company has created good relation with their suppliers that helped him to get discount.
Social factor
The customers shopping trend it’s continuously changing over the time. most of the
people have busy schedule and they always demand for the fast delivery with flexible gods
written policies. The Tesco company is relying on the customer within the UK and they should
understand what customer actually want and what kind of services they are looking for. The
another issue that is creating threat for this company is obesity and customers are more often
concerned about their health. It is forcing Tesco to shift their product from the fast food to
Organic food. It will help them to satisfy the needs and demand of the customers and they were
able to take competitive advantages.
Technology
From the fewer year back this company was facing the issues like poor experience for the
customers and horsemeat scandal. Advancement in the technology growth and create the new

opportunity for this company to regain the customers trust. Tesco imbalance advancement in
technology as opportunity by adopting available label retail technologies. it helped them too take
competitive advantages within the market where they are operating their business unable to gain
the loyalty of the customers again. they have introduced technologies like RFID to increase the
good experience for the customers within their stores. this technology is useful to identify the
stock and it automatically remove after the sales. This information is also helpful for supplies
suppliers of the stores and replenish when it is required.
Environmental issues
Most of the retail companies are facing emancipation from the governmental bodies to address
the issues related to the environment. companies are liable to respond to those issues to provide a
benefit to the local society (Peng., 2018). Tesco is one of them and they take this issue seriously
and now Tesco encourage ING their customers to shop from the side call Tesco.com. Tesco
drivers who deliver product to the customers are not only taking the Fuel saving roots but they’re
also collecting the plastic bags from the road add and recycling it for reuse. not only this but this
company has also committed to use the renewable resources and generate 100% of their
electricity by the end of year 2030. And their promises to maximise more than 50% carbon
footprint till the end of 2020 which isn’t good promises and helping them to create good image
in the society and helping them to take competitive advantages within the market where they are
operating their business.
Legal factors
There are many legal factors that has created threat for the Tesco. In the year 2016, around 17
workers of the Tesco took the legal action against employer on the basis of gender and age
discrimination (Oh, And et.al., 2017). employees were extremely frustrated after the notice that
they are getting very low pace at the night duties and also their bank Holidays and weekends
what shifted. this was the reason they take a legal action against the company and take their
guess booty court.
This company is also faced legal action for accounting frauds and misleading there investors but
they were agreed to pay around 12 million to settle this legal action. The Tesco company must
conduct their operation in accordance with the food retailing Commission strict code of practises.

The unethical behaviour why did Tesco companies creating a threat for and this company was
also kicked out by the US government because of their illegal work and unethical behaviour. It is
necessary for the company to look at their reputation because it's take time to create a reputation
within the market but a single mistake can run full reputation and goodwill of the company
within the market. Leaders and managers should take care and perform ethical practices.
SWOT analysis
Strength
 Biggest grocery store in UK- Tesco companies is the leading grocery a number one
supermarket and United Kingdom. this company has higher sales and revenue as
compared to the others companies within the Britain. according to the and will report
2018, this company has created annual profit around 28% which is way bigger and
higher than any other form within the retail industry (ZHAO and et.al., 2018).
 Leading market shares- Among the biggest four supermarkets, the Tesco company
dominate the grocery retail of Great Britain with the share around 27% and recently it is
most popular supermarket in Ireland as well.
 Superior technology usage - Tesco companies using best possible technology in a way to
enhance the good shopping experience for the customers. this company has also
introduced a technology called RFID that is helpful to count the product automatically
and it is also has am Commerce facility and mobile payment apps both.
Weakness
 Failed operation in Japan and US- This company had exited from the markets like Japan
and America in the year 2012. Tesco voice failed too export operations forced the
company to close their stores in Japan after the nine years they also shutdown their
business in US which was an biggest fail for this company.
 Fraud and accounting scandal- this company is facing many lawsuits for fraud an
accounting scandal. one of them is In the year 2016, around 17 workers of the Tesco took
the legal action against employer on the basis of gender and age discrimination
(Matovic., 2020). employees were extremely frustrated after the notice that they are

getting very low pace at the night duties and also their bank Holidays and weekends what
shifted.
 Financial errors- To the credit card liability and high debts, Tesco financial profits are
profoundly affected and they have to pay higher charges on their financial errors.
Opportunities
 Expanding jacks business- This company has introduced new format called jacks which
is showing huge growth. it can be a good growth opportunity for the Tesco and can
successfully complete as a low cost rival with LidL and Aldi.
 Joint venture- There are some opportunity for the Tesco company related to the joint
venture in the regions where Tesco stores are not performing well. they can approach the
local retail stores 2 work jointly that will help them too our come from the losses and
they will able to perform effectively within the market where they are operating their
business.
 Online shopping- Retail business are converting their focus from the offline business to
the online business (Yusop., 2018). it is and future trend that can be a good opportunity
for the Tesco company, If they started selling their product and services online or the
Homebase delivery.
 Emerging markets- Although Tesco has stores in many developing countries but
expanding their business to emerging countries like Torquay, Indonesia and South Korea
can be profitable opportunity for the Tesco and they can expand there business
effectively within the new economies
Threats
 The Christmas controversy- A Christmas controversy has created huge threat upon the
Tesco company. When the company launches there Christmas add in year 2017. people
started by quoting the store and claiming a disrespectful act from the Tesco against the
Christmas faith.
 Brexit- After the Brexit memorandum the trade deals and cost matters have posed over
the issue in 2017. It is creating tread upon the company and they are not able to generate
high probability in their business due to the Brexit memorandum.

 Competition- Tesco company is facing huge competition within the retail industry
becausr knew discount stores and Existing brands are selling their product and services
in lower prices and it is creating tread upon Tesco to decrease their probability and
product prices.
 Economic crisis and credit crunches- Government regulations, credit crunches, text
matters and economic appeals can affect the operational efficiency and performance of
the Tesco company and it can took them toward the critical condition within their
business (Thompson and McLarney., 2017). It will be not easy for the Tesco to overcome
from this situation and show their presence affectively.
Market segmentation criteria which could be successfully targeted by the Tesco
There are different marketing segments that Tesco can target. Market segment refers to
customer groups that can be differentiated on the basis of demographic, geographic,
psychographic and behavioural characteristics (Ernst and Dolnicar, 2018). Two sets of market
segmentation that Tesco can target involves-
On the basis of demographic characteristics Tesco can target Millennial Generation.
Millennial Generation- Millennial generation involves people who are born in between 1981
and 1996 are considered as millennial. The reason that this customer group will grow business of
Tesco within retail marketplace is that millennial generation is growing and by 2019 millennial
are projected to increase to 73 million and have become largest living generation. This is only
fact that suggests that Tesco can get significant benefits by targeting this customer group. Other
than this fact, spending and disposable income of millennial customer is also high and this
suggests that accurately targeting millennial generation Tesco can make significant impact on its
growth in retail marketplace.
Buying behaviour of millennial customers-
 Millennial customers are wants to purchase what makes them feel good. This means they
are willing to buy products that reflect their personality.
 Millennial customers’ has strong emphasis on value of experience (Thao, 2020). This
means that experience and good experience are very important for customers.

 Millennial customers highly value feedback and reviews for the product that they are
buying.
 Online shopping, for basic things like groceries and general merchandise millennial
customers prefer shopping online rather than going out for shopping.
Marketing strategy Tesco can utilise for the purpose of targeting this market and meet their
requirement is-
Product development marketing strategy- This is a strategy that is concerned with creating
new products. This is one of the most suitable strategies for attracting and fulfilling needs of
millennial customers. This is because millennial customers are looking for products that are new
and they can give a try to and this is also suitable because millennial customers are looking for
product on the basis of relevancy. This means creating new products will allow Tesco to offer
new and relevant products to millennial customers. This is very important specifically offering
these through different channels through which Tesco can connect with its target market. This
can be more than website of the company and its store (Chen and et.al., 2018). This means that
social media and digital media and linking products with promotional campaigns can bring
highly effective results for Tesco in targeting this customer segment.
Focus on experience- This is another important strategy in which Tesco should focus on
enhancing in-store experience for customers. This is concerned with layout, design and
technology of store which contribute in creating experience for the customers. This is because
having right experience is a priority of the millennial customers.
On the basis of geographic set of segmentation Tesco can target BRIC countries.
BRIC countries- BRIC countries involve acronym of Brazil, Russia, India and china. These are
the countries that are at a similar stage of newly advanced economic system and are on their way
to become developed countries. In other words, these are four emerging economies and these are
providing different benefits to international businesses. These countries are offering several
opportunities for international organisations. These are in form of increasing disposable income
and increasing middle class people, developing infrastructure and lower cost compared to
developed countries. This means that targeting BRIC nations can make significant impact on
growth of business within retail marketplace (Thoman, Lloyd and Milstead, 2020). Tesco is a

organisation that operates with cost leadership strategy and in realising its objectives developing
countries can be very beneficial because cost of operations in such countries is comparatively
low than developed nations. Other than this, increasing middle class customers and customers
looking for better and more options is another opportunity for Tesco to grow its business in retail
marketplace.
Buying behaviour of customers from BRIC nations-
 Focus on different elements of shopping along with price and experience
 Looking for different product choices for buying right and suitable products
 Increasing income leading them to buy high quality and premium products
These are certain elements of buying behaviour of customers in emerging nations. In order to
satisfy requirements of these customers, Tesco can adopt market development strategy-
Market development strategy- This means that Tesco can utilise its existing products for the
purpose of offering and satisfying requirements of customers in BRIC countries. This is because
customers are looking for options that they can consider while shopping and are also moving
toward buying good quality products and in situation it is very important that they are offered
more products and Tesco having variety of products will not require developing any additional
product for the purpose of satisfying requirements of these customers. However, in order to
ensure its long term success Tesco can adapt to local culture and offer what customers will like
to purchase and adding traditional and local elements in product and services of Tesco. This
means that when Tesco offers its product in china it is important to consider local element in
their offerings and Tesco also have experience from its failed operations in China.
Focusing on Online Marketing- This is another strategy that Tesco can utilise because these are
nations that are on their way to technological development (Alkasim, Abdullah and Bohari,
2017). This is why online customers are increasing in emerging nations and this is an opportunity
for Tesco to utilise in order to expand its operations in BRIC countries and also to fulfil
requirements of customers in this segment.
This means that both these two sets of market segmentation can be successfully targeted
by Tesco and targeting these segments can provide significant benefit to Tesco in terms of its

growth in retail marketplace. Tesco can utilise opportunities by utilising and implementing right
strategy for marketing in these segments.
CONCLUSION
As per the report has been undertaken the marketing audit of the Tesco business
performance through the PESTEL analysis and SWOT analysis. Those tools have been Helpful
to identify strength and weakness of the company, that has been indicated the performance
within the market. it also Has been included the set of Marketing segmentation criteria which
could be successful targeted by the business. this report has been undertaken this suitable market
research to explain how this chosen customer group can help Tesco company too grow within
the retail marketplace. In the end of this report has been Provided a marketing strategy for the
Tesco company so they can take competitive advantages and show their presence as a emerging
brand.

REFERENCES
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