Develop and Evaluate a Basic Marketing Plan for Tesco Company

This document provides a comprehensive guide on how to develop and evaluate a basic marketing plan for Tesco Company. It covers topics such as SWOT analysis, 4 P's of marketing, mission and vision of Tesco, objectives, and STP of Tesco. The document also includes references for further reading.

DEVELOP AND
EVALUATE A BASIC
MARKETING PLAN
FOR TESCO
COMPANY

Table of Contents
INTRODUCTION...........................................................................................................................3
SWOT Analysis......................................................................................................................3
4 P's of Marketing...................................................................................................................4
Mission and Vision of Tesco..................................................................................................4
Objectives...............................................................................................................................5
STP of TESCO.......................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
A marketing plan is a report that outlines your marketing strategy for the coming year, quarter or
month. Typically, a marketing plan will include these elements: An overview of your
business's marketing and advertising goals. Tesco is a British multinational groceries and general
merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire, England, United
Kingdom It is the third largest retailer in the world measured by gross revenues and the ninth-
largest retailer in the world measured by revenues.
SWOT Analysis
Strength-
The company has the biggest market share among their competitors as they own 27 per
cent of the share in the market. After UK the company has also gained popularity in UK. The
company is well diversified according to the different regions they have more than 6800 stores
which covers 14 countries after the European and American markets they have established their
market in Asian countries as well. (Hollensen, 2018)
Weakness-
The company has suffered a loss of around 9 per cent on the basis of annual sales after
the issue of Brexit. The company is the leader in the market but they need to change their low
pricing strategy as the profits of the company is reducing because of that.
Opportunities-
The company has the opportunity to grow and make their market on the online platform
and start the service of delivery. The company has a wide scope to to come into joint venture
with local companies as there stores are not performing up to the mark and local companies will
help them to improve their results in there areas.
Threats-
The company is facing a tough competition from walmart, ASDA, Aldi and Carrefour
which are trying to take the position that Tesco has in the market. After the exit of European
Union from Britain the cost of the materials has increased and change their measures suddenly
and become a threat for the company. (Shields, 2017)

4 P's of Marketing
Product-
Tesco provides a variety of products to their consumers through different stores. They
satisfies the need of the consumer by segmenting the market on the basis of their taste and
preferences. The company offers products such as Food, Pet Care, Beverages, products which
are related to gaming, beauty and health products, baby care, electricals for home, frozen food,
bakery, jewellery, clothing and books. The company also has some of their own brands which
are named as every day value, finest, Tesco loves baby, Tesco lotus, bank of Tesco, F & F
clothing and value of Tesco. (Haider and et.al.,2019)
Price-
The pricing strategy that the company use is the cost leadership strategy. This allows the
company to offer them quality goods at the least price available in the market. To maintain low
prices company also takes the help of economies of scale. To reduce their prices company has to
keep a check on their suppliers on a regular basis.
Place-
Company has more than 6800 stores which are situated in over 14 countries. They have
stores such as Tesco Express, Tesco Extra, Tesco Metro. Tesco also have superstores which
offer groceries and small non food items it is opened up on a large area. Their metro stores are
opened up on a land around 1000 square meters which are situated in cities and towns. Stores of
Tesco express are opened up on a smaller area which offers them a high amount of margin of
profit as the rate of products are higher than other stores of the company.
Promotion-
Tesco use the strategies of promotion which are related to their strategy of pricing. They
take the help of mediums such as television, hoardings and above that they offer discounted rates
and put up offers for the people such as buy one get one. (McDONALD, 2016)
Mission and Vision of Tesco
The mission of the company is to make what matters better, together. The vision and
mission of the company is same and they operate for it in a joint manner so that they can achieve
it.

Objectives
To increase profitability by 10% till the end of year.
To increase market share by 20% in upcoming 6 months.
To increase customer experience by 5% till the end of 2021.
STP of TESCO
Segmentation-
The company segments their market on the basis of geographic and demographic factors.
They have segmented their market over 13 countries in areas where they are rural and urban and
according to the areas and they have segmented the market on the basis of gender, income,
education and social status.
Targeting-
They target their consumers irrespective of their gender as they have products for both
males and females. The pricing strategy of the company helps to reduce them there prices in the
market that is why they target the consumers who comes under low or middle class level of
income. They target people who are loyal to them and are helping them to increase the no. of
repeated sales. They target families and single individuals.
Positioning-
Company uses many strategies to position themselves according to the target audience.
For the expensive product they use functional positioning. Company uses symbolic positioning
for the clothing products. For the brands that are owned by the company they use price
positioning to attract more people and for the cosmetic products they use experiential positioning
and last they use multi segment positioning for the people who are willing to pay more for their
products. (Cooke, 2015)
CONCLUSION
From the above studies it has been concluded that Tesco needs to change their strategy of pricing
so that they can increase their profitability. Company has set up different stores for different
types of products and where they use different prices for the different type of target audience the
company has targeted.

REFERENCES
Books and Journal
Cooke, E.F., 2015. An Update on the Concept of the Marketing Mix. In Proceedings of the 1983
Academy of Marketing Science (AMS) Annual Conference (pp. 266-268). Springer,
Cham.
Haider, A.A and et.al.,2019. Marketing Management.
Hollensen, S., 2018. Marketing-Strategie und Marketing-Mix. In Einführung in das Bildungs-
und Kulturmanagement (pp. 31-44). Ziel-Zentrum für interdisziplinäres
erfarungsorientiertes Lernen GmbH.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Shields, J., 2017. Business to Business Marketing.