Introduction to Marketing: Tesco Case Study

This report discusses the marketing mix, SWOT analysis, Ansoff's growth matrix, and digital marketing strategies for Tesco. It includes a case study of Tesco, a global grocery and retailer company, and how it utilizes marketing to improve its performance and growth.

Introduction to
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
1) i. Marketing........................................................................................................................3
ii. Marketing mix....................................................................................................................3
2) i. SWOT analysis...............................................................................................................4
3) i. Ansoff’s growth matrix...................................................................................................5
ii. How Ansoff’s matrix could be utilised by firm to analyse its development strategies......5
4) i. How company could utilise digital marketing to advance its performance and
development...........................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCE...................................................................................................................................7
INTRODUCTION
Marketing describes the actions of business that are involved with the purchase and sale of a
product or service. Tesco is used as the base business. Tesco is a global grocery and retailer

company is specialist in selling of numerous items from different sectors such as apparel,
software, financial services and so on. This group was formed by Jack Cohen in 1919, UK. This
report discusses the marketing mix, how marketing benefits businesses, and how to overcome
difficulties in competitive marketplaces. It also covers marketing solutions to meet specific
company issues as well as the influence of globalisation on the competitive market.
1) i. Marketing
Marketing is the procedure of getting potential customers concerned in goods and
services. Marking attempts to provide stand alone value for prospect and customers using content
with long term goal of demonstrating product value, strengthening brand loyalty and eventually
sales. It is broad and includes all strategies which assist an organisation, brand or individual in
achieving their goals and objectives (Davis, 2017).
ii. Marketing mix
Product: Product depicts as tangible commodities which is created by organisation for
satisfying the customer's desires. Tesco has been providing with wide range of products which is
able to satisfy large number of audience.
Price: Price is a strategy which is needs to concentrate for gaining competitive edge in
market. Tesco always attempt to maintain its price as possible without reducing the quality of
their products or running itself in loss.
Promotion: Promotion is the way which is utilised by organisation for creating awareness
about the product. The selected organisation uses various medium to advertise such as
newspaper, television and other media for creating awareness (Tesco is UK’s biggest traditional
advertising spender in grocery retail, 2020).
Place: Place means location at which the commodities will be provided to customers
(Matthyssens and et. al., 2016). Tesco uses two main channels of distribution namely online and
offline and they having more than 7000 stores across the globe.
People: People comprise the employees of organisation who are working for achieving
the goals of organisation. In Tesco, there is around 420,000 people work and firm invest huge
amount of money and time for train their employees.
Process: Process encompasses the way by which commodities are being delivered to the
consumers (Palmatier and Sridhar, 2017). The process of Tesco is to keep their consumers

pleased by providing quick billing services and effortless gaining of product in their offline
stores and online platforms.
Physical evidence: The physical evidence involves all those things that could be seen or
listened by the consumers. Physical evidence includes tangible representation such brochures,
reports, menu and so on. Tesco's website is also work as physical evidence.
2) i. SWOT analysis
SWOT analysis of Tesco is mentioned below:
STRENGTH WEAKNESSES
 Tesco is a multinational and leading
firm which has its presence in various
countries. They have more than 400
stores in UK and Republic of Ireland
(Tesco PLC, About Us, 2021).
 Tesco is having different formats such
as Metro, Extra and many more so that
they are able serve different kinds of
customers (Tesco PLC, About Us,
2021).
 One of the major weakness is that, they
failed to cater in Japan and USA. The
organisation was closed in Japan after
trading for 9 years in 2012.
 Tesco was penalised £7.5 million for
selling food with expiration dates in the
UK (Tesco fined £7.5 million for out-
of-date food sales, 2021).
OPPORTUNITIES THREATS
 It is a huge opportunity for Tesco to
penetrate into those countries where
they are not operating such as Mexico,
Brazil, Turkey and many more.
 Strategic alliance with other firm is an
opportunity for Tesco to captivate the
attention of more number of people.
The firm has already tie up with fashion
giant Next to develop efficient usage of
excess store area.
 The organisation is facing threats in its
grocery market as its rival organisations
such as ASDA and Sainsbury's are
operating in the same market and tries
to close the gaps.
 One more threat is the price war from
firms such as Lidl and Aldi. These
firms are providing numerous discounts
and thus, it is difficult for the
organisation to compete with them. The

pricing strategy of both the
organisations has created impact on the
profitability of Tesco.
3) i. Ansoff’s growth matrix
Ansoff's growth matrix is a tool which is utilised by companies to analyse and plan its
strategies for development (Qutteina and et. al., 2019). It is used to assess all potential
opportunities for firm to raise its sales by demonstrating diverse combinations for new markets in
opposition to goods and services providing four strategies which is described below.
ii. How Ansoff’s matrix could be utilised by firm to analyse its development strategies
Market penetration: In this technique, organisation utilises their products in the existing
market to increase its market share. Tesco has been able to expand its business and if continue to
use this strategy, this would assists in elevating their market share and utilisation of products by
existing customers.
Market development: In market development strategy, the organisation enters a new
market with its existing products. Tesco has expanded into many countries across the globe. If
they uses this strategy, they would able to expand into more countries and owing to this, it will
elevates their market share.
Product development: In this strategy, the organisation creates a new commodity to serve
to the current market which requires extensive research and development and expansion of firm
(Sahaf, 2019). The selected organisation has created own label products to sell into existing
market. If they continue to use this strategy, they would be able to gain more reputation into the
market and also able to have an increased sales.
Diversification: In diversification strategy, the organisation enters new market with new
product. Tesco has diversified its operations into many industries such as insurance products,
mortgages and so on. If they use this strategy, they would be able to serve products from
different industries.
Recommendation: Tesco can use market development strategy as it would be easy for
them to enter into new market with existing product. The reason is that, Tesco has already know
which product is successful and then they would sell the same product into new market which
would eventually increase their sales.

4) i. How company could utilise digital marketing to advance its performance and development
Digital marketing is an online marketing in which firm used different tools for creating
awareness about the product and services such as by social media, e-mail, mobile marketing and
so on. There are various ways in which Tesco could use digital marketing which is mentioned
below:
Establishing strong social media presence: Social media is influential tool which is used
by almost every organisation for growing their customer base such as by using Facebook,
Instagram and so on. Tesco has also use social media for developing and improving the
performance of its products by working in negative feedbacks of customers (Valenzuela and et.
al., 2017). This helps Tesco in getting to know about those areas where they lack. Social media
influencer has a vital role in growing their image. The influencers give their feedback regarding
the product and services so that his or her large number of followers to get to know about their
experience.
Online advertising is cost effective than traditional: It has been observed that online
marketing is cost effective as the firm only needed knowledgable individuals and a good internet
so that all the things could be done accordingly. Tesco have utilized different strategy for making
the promotion of their products which has minimised their cost and make beneficial for them
(Wooliscroft and Ganglmair-Wooliscroft, 2018).
CONCLUSION
From the above discussion, it can be concluded that marketing plays an essential role in
an organisation for increasing their sales as well as probability. In this report, it includes
marketing mix and SWOT analyses for analysing the internal and external environment of
organisation. It also includes Ansoff's growth matrix for addressing business challenge.
Moreover, how firm could use digital marketing to improve its performance and growth.

REFERENCE
Book and journal
Davis, J., 2017. Measuring marketing. De Gruyter.
Matthyssens, P. and et. al., 2016. Aligning marketing and purchasing for new value creation.
Industrial Marketing Management, 52, pp.60-73.
Palmatier, R. W. and Sridhar, S., 2017. Marketing strategy: Based on first principles and data
analytics. Macmillan International Higher Education.
Qutteina, Y. and et. al., 2019. What do adolescents see on social media? A diary study of food
marketing images on social media. Frontiers in psychology, 10, p.2637.
Sahaf, M. A., 2019. Strategic marketing: making decisions for strategic advantage. PHI
Learning Pvt. Ltd..
Valenzuela, L. M. and et. al., 2017. Thirty years of the Journal of Business & Industrial
Marketing: A bibliometric analysis. Journal of Business & Industrial Marketing.
Wooliscroft, B. and Ganglmair-Wooliscroft, A., 2018. Growth, excess and opportunities:
Marketing systems’ contributions to society. Journal of Macromarketing, 38(4), pp.355-
363.
Online
(Tesco is UK’s biggest traditional advertising spender in grocery retail, 2020) [Online]
Available through; <https://www.retailtimes.co.uk/tesco-is-uks-biggest-traditional-advertising-
spender-in-grocery-retail/>
(Tesco PLC, About Us, 2021) [Online] Available through; <https://www.tescoplc.com/about/>
(Tesco fined £7.5 million for out-of-date food sales, 2021) [Online] Available through;
<https://www.foodsafetynews.com/2021/04/tesco-fined-7-5-million-for-out-of-date-food-sales/>