Introduction to Marketing - Elements of Marketing Mix, SWOT Analysis of Tesco Plc, Ansoff’s Growth Matrix, Use of Digital Marketing

This report covers the elements of marketing mix, SWOT analysis of Tesco Plc, Ansoff’s growth matrix, and the use of digital marketing to improve the performance and growth of the company. It also recommends market development and product development strategies for Tesco Plc. The report is based on the study of Tesco Plc.

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
What is meant by marketing?............................................................................................................3
Elements of marketing mix................................................................................................................3
SWOT analysis of Tesco Plc.............................................................................................................4
Ansoff’s growth matrix.....................................................................................................................5
Use of digital marketing to improve the performance and growth of the company...........................6
CONCLUSION................................................................................................................................7
REFERENCES....................................................................................................................................8

INTRODUCTION
Marketing refers to the process through which a company develops interest in the minds and
hearts of the customers with respect to the product and services of the company. The present
report is based on the study of Tesco Plc in order to gain an understanding of the elements of
the marketing mix. The current report aims to cover SWOT analysis of the company. In order
to identify the growth strategies for the company, there will be implementation of Ansoff
matrix for the same. The report also intents to cover the use of digital marketing in order to
enhance the growth and performance of the company.
MAIN BODY
What is meant by marketing?
The activities through which a company markets and promotes its goods and services to
consumers in order to increase the sales can be referred to as marketing (Aliekperov, 2020).
Marketing includes advertising the goods and services by way of newspapers, billboards,
radios, televisions, posters, social media, magazines, etc in order to attract new customers and
retain the existing ones.
Elements of marketing mix
There are 7 elements of marketing which helps a business to create a brand position in the
market. They are as follows:
Product
The product strategy and the product and services offered by a company plays the
most important role in creating a brand image in the market. Tesco Plc provides a range of
products and services to its customers which includes food, clothing, petrol,
telecommunication and internet services, toys, electronics and furniture. Tesco Plc offers
around 40,000 product lines in its retail stores. Everyday Value, Tesco Value, Tesco Lotus
and F&F clothing are few of the Tesco’s own lines.
Price
The pricing strategy of a company can either make a brand reach great heights or
break it. Therefore, it is important for an organization to use right pricing strategy for its
product and services. Tesco Plc. uses cost leadership strategy of pricing in order to attract the

customers. It tries to keep the cost as low as possible without affecting the quality of the
product and services offered.
Place
In order to maintain smooth and effective flow of goods, it is important for an
organization to avail the product or service at the right place and at the right time. Tesco Plc.
is an England based brand. It serves its products offline as well as online. Tesco Plc has 6
different types of offline stores, most of which are small scale stores as the company believes
that not every consumer is comfortable in buying from huge stores.
Promotion
Tesco Plc. makes use of promotional strategies including online as well as offline
channels. But the majority of promotions are conducted by way of offline channels only
(Benzaghta, and et.al 2021.). The company promotes its products and services by providing
advertisements in newspapers, billboards, televisions. The company also provides exclusive
offers such as buy one get one in order to increase the sales.
People
An organization achieves success and growth because of its people. Tesco Plc. is a
source of employment for around 420,000 people. Tesco Plc. organises training and
development programs to their employees for improving the profitability of the company. It
provides its employees with rewards on working efficiently however, Tesco Plc needs to
work on the benefits provided to the employees in order to improve their performance.
Physical Evidence
Physical evidence refers to brand image in the minds of the consumers. Tesco Plc. has
amazing logo, great graphics on the website, friendly and helpful environment within the
stores.
Process
Within the stores of the Tesco Plc. customers carry the selected products to the cash
counter in order to pay for the same.
SWOT analysis of Tesco Plc.
Strengths

Tesco Plc. has a number of features that adds to its list of strengths and help the
company in holding a leading position in the market. Tesco Plc. holds one of the highest
market shares in United Kingdom with a consumer base of around 27%. It is the source of
employment for around 4,20,000 people across the world (Efanny, and et.al., 2018). It offers
a variety of stores to its consumers as it believes that not everyone feels comfortable in
shopping from big stores.
Weaknesses
There are certain weak points of Tesco Plc. in which the company needs to improve.
Though Tesco Plc. is one of the leading brands in Europe but it is not as famous in other parts
of the world. In 2012, Tesco Plc tried to expand its business in Japan and USA, but the
company was and unable to succeed and had to shut down because of its own operating
inefficiencies. The company has committed financial errors and fraud scandals in the past that
affects the brand image of the company. The low-price strategy of the company is hampering
the operating profit of the company.
Opportunity
Although Tesco Plc is already present in about 14 countries, but it has an opportunity
to avail its products in the emerging countries such as Turkey, Indonesia and South Korea.
Tesco plc can collaborate with different brands in order to provide its customers with a
variety of new products containing trendy and unique features in order to gain customer
engagement.
Threats
Tesco Plc.is prone to threats from the leading supermarket competitors which includes
Walmart, Carrefour and Aldi. The UK- EU relations are also a threat to the company.
Ansoff’s growth matrix
The Ansoff’s growth matrix is a planning tactic that helps the company to formulate
different sorts of strategies for enhancing the growth of the company. There are four different
types of growth strategies under the Ansoff’s growth matrix which includes market
penetration, market development, product development and diversification.
Market penetration

It is a growth strategy used by company in order to extend its market reach by
enhancing its current product offerings within the existing market (Teoli, Sanvictores, and
An, 2019.). This can be done achieved by decreasing the price of existing offerings,
increasing the promotional activities and enhancing the quality of the products. This strategy
helps a company in gaining market popularity, goodwill, giving tough competition to its
competitors.
Market development
Market development strategy is used by brands in order to gain popularity within new
market with little or minimal product refinements. This can be obtaining by targeting a
variety of customer segments and targeting within new areas within the country and foreign
markets. With the help of this strategy, an organization can expand its base of customers and
similarly increase the revenue of the company.
Product Development
Under this strategy, an organization tries to develop and introduce new products
within the existing market in order to increase the growth opportunities. This can be done by
conducting research and development within the market or acquiring a new product launched
by another company. This helps a company to enhance the consumer satisfaction and brand
image of the company.
Diversification
Diversification strategy refers to introducing new products within new markets for the
purpose of enhancing the growth of the company. It involves two types of diversification
namely, related diversification and unrelated diversification. It is one of the riskiest strategies
of growth as it involves expansion of business to new regions with introducing new products.
Recommendations
The best strategies of growth that should be implemented by Tesco Plc. are market
development and product development strategies. Though, Tesco Plc. has its presence in 14
countries across the world, but there is a scope for the company to target new and emerging
countries for the growth of the company (Rosnizam, and et.al 2020). Moreover, in order to
enhance the customer satisfaction, the company should aim to introduce new products within
the existing markets.

Use of digital marketing to improve the performance and growth of the company
Digital marketing refers to the process of promoting and marketing of products and services
of a company with use of digital communications such as social media, email marketing,
digital marketing campaigns etc.
The use of digital marketing can help Tesco Plc. in improving the performance and growth in
the following ways:
The launching of advertisements by way of social media networks such as Facebook,
Instagram, twitter, YouTube and Pinterest can help Tesco plc. to extend its reach across the
globe. The social media platforms can be accessed by anyone all over the world. Therefore, it
will help the company in engaging new customers towards the company.
Digital marketing is one most cost-effective strategy used by companies in order to market its
products. With the help digital marketing, the company can create advertisements to target
different customer segments and influence them in order to purchase the products. The tools
and analysis metric that the digital media offers helps the company in tracking its own reach
and performance of the company. The analysis metrics gives the details about how many
people liked the product, who saved the product for future reference, the target audience, the
reach of the product through the advertisements. These features can the help the company in
measuring its own performance and taking necessary steps and bring change if required.
Tesco plc. can make use of email marketing. It involves sending personalised emails to the
existing customers of the company. It develops a sense of importance among the customers
and indulge them with the company (Khanta, and Srinuan, 2019.). The brand visibility on the
website of the company also helps the company in attracting new customers and generating
revenue for the organization.
CONCLUSION
From the above report, it can be concluded that digital marketing strategies play an
important role in improving the brand performance of an organization. The elements of
marketing mix also help a company to create its brand position. The recommended strategies
of growth for Tesco Plc are product development and market development strategies. It will
help the company to reach and target new markets across the world and also help in gaining
customers with the help of launching new products within the current market.

REFERENCES
(Books and Journal)
Aliekperov, A., 2020. The customer experience model. Routledge.
Benzaghta, M.A., and et.al 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1).pp.55-73.
Efanny, W., and et.al., 2018. The relationship between marketing mix and retailer-perceived
brand equity. IMP Journal.
Khanta, F. and Srinuan, A.P.D.C., 2019. The relationships between marketing mix, brand
equity, lifestyle and attitude on a consumer’s private product brand purchasing
decision. African Journal of Hospitality, Tourism and Leisure. 8(5). pp.1-14.
Rosnizam, M.R.A.B and et.al 2020. Market opportunities and challenges: A case study of
Tesco. Journal of the Community Development in Asia (JCDA). 3(2). pp.18-27.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.