Marketing Essentials: A Study on Tesco's Marketing Strategies

This document provides an in-depth analysis of Tesco's marketing strategies, including the application of the marketing mix to achieve business objectives. It also includes a marketing plan for Tesco, highlighting its mission, vision, marketing objectives, STP approach, strengths, weaknesses, opportunities, threats, marketing budget, and monitoring and controlling techniques.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2............................................................................................................................................3
Ways in which marketing mix is applied in an organisation to achieve business objectives3
TASK 3............................................................................................................................................5
Marketing Plan for TESCO....................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing includes various activities all of which are undertaken by an organisation to
communicate their goods and services to their target consumer in market place. Marketing
includes a number of functions such as selling, advertising as well as delivering goods to their
consumers. Organisations are also required to manage their relationship with their consumers
which will help them in long term (HR and Aithal, 2020). The following report is conducted on
TESCO which is a retailer dealing in groceries and merchandise. The discussions in report are
based upon various roles of marketing as well as their their relationships with other functions of
an organisation. 7 P's of marketing are also discussed and then a marketing plan is created based
on all the analysis.
TASK 1
Covered in PPT
TASK 2
Ways in which marketing mix is applied in an organisation to achieve business objectives
Marketing Mix 7P's
Marketing mix is a combination of 7 different elements of marketing that re to work
together in order to achieve various objectives related to marketing strategy. Below mentioned is
marketing mix conducted on TESCO and one of its competitors ALDI:
Elements TESCO ALDI
Product There is a large range of products in
which TESCO is dealing. They
include clothing ,electronics, food,
financial services and so on. This
helps them to fulfil all the needs and
wants of their customers with
providing necessities under a single
roof (Blythe and Martin, 2019).
They are majorly linked with retail
products. Their major aim is
providing good quality products and
various luxury items to their
customers as well, they are also
dealing in alcohols and non-
vegetarian food.

Price There are a number of cost
advantages that are to be gained by
TESCO in order to provide their
customers with low price products
with good quality as well (Proctor,
2020).
They focus on cheap pricing and also
provide average quality products as
per their cheap prices. They focus on
market penetration, unit pricing
strategy, loss leader pricing,
competitive pricing, psychological
pricing and so on.
Place Headquarter of TESCO is situated
in England. There are wide stores
created for TESCO to accommodate
large number of customers. Various
services of TESCO include TESCO
Metro, TESCO Extra etc.
There are approximately 8000 stores
of company in 18 different countries.
They believe in keeping well
organised stores. There are a number
of stores of ALDI that are present
online and this allows customers to
keep a check on stock available in
nearest stores.
Promotion TESCO is using various online as
well as offline tools to promote
their products and services. They
use online services to reach a
number of customers at a time.
They are using good communication
methods in their outlets so that they
can effectively promote their goods
as well as services. They are focusing
on a number of campaigns in order to
build brand value such as SWAP and
so on.
Physical evidence TESCO focuses on keeping all their
stores hygienic and maintain
positive and happy environment in
it.
Stores contain products from various
renowned brands and their own home
brand. They also focus on
maintaining similar prices in their
stores worldwide (Arendt and Allain,
2019).
People TESCO provides great sales
assistants at stores to meet
They are paying all their employees
higher then other competitors in order

consumer requirements. The also
provide various programmes like
colleague privileged card to retain
talent in organisation.
to retain them and also regularly
provide them training. They focus on
their layout to accommodate
customers and employees as well.
Process Their major aim is to maintain a
process in order to keep their
consumers happy. They provide
them product and services so that
they achieve satisfaction and their
goals could be achieved.
The layout of stores make it easy for
their customers to get product and
this also reduces requirement of
employees. Billing is made easy sue
to larger barcodes.
The above comparison between marketing mix of Tesco and ALDI specifies how can
companies apply same factors in their organisation in different manner. There are a number of
elements such as people and physical evidence which are similar for both of these. The
processes, pricing strategy as well as products for both of these companies however vary. These
factors are a result of marketing strategy that is used by company (Jolliffe, 2016 ).
TASK 3
Marketing Plan for TESCO
Marketing plan is a blueprint of a company's course of actions for a particular time period
which consist of company's marketing strategies like how company is going to attract the
customers and its clients. It is a future oriented document which helps companies to achieve their
short term goals and then ultimately leads to achievement of company's long term goals. A
marketing plan is a competitive strategy for an organisation which helps in competing into the
targeted market. There are a number of factors that are included in a marketing plan these factors
provides the organisation with proper strategies they need to follow in order to acieve all the
objectives they are to achieve.
Overview of Firm
Tesco is a multinational brand which deals in retail industry and its a largest private
employer in the Europe. It is a one of the leading brand of UK in retail industry which was
founded by Jack Cohen in year 1919 as a grocery selling business in the east of London

(Kuntonbutr, 2019). This firm is listed in London Stock Exchange as Tesco Stores Limited and it
has the largest supermarket in the UK. It was initially started as a small stall of grocery business
and now it’s one of the largest food retailer across the world with having almost 2,318 stores.
Mission
To provide high quality and sustainable products or services to the consumers in a way
that none of their beliefs aren't compromised.
Vision
The main vision of Tesco is to be highly valued business in the eyes of their customers,
communities, colleagues and shareholders.
Marketing Objectives:
 To provide benefits of stakeholders and gain their trust towards various brands.
 TO focus on market demands and develop new products to achieve market shares. To increase sales and profits of organisation by 15% and 7% in next 8 months.
STP Approach:
Segmentation, targeting and positioning is a marketing strategical tool which helps in
identifying the potential customers for the companies and it also helps in guiding the firms so
that firm can develop and implement the appropriate strateguies. Tesco's STP strategies are
discussed below:
Segmentation: Tesco uses the geographical segmentation they have their presence in 12
countries and they sell their products in semi urban and urban areas of the various countries it
depends on the population of that particular country. Segmentation helps in sub grouping the
overall marketplace (Géczi, 2019).
Targeting: This strategy determines that who will be the company's targeted customers.
It helps in identifying the overall companies target market group. Tesco uses the strategy named
as mass marketing where they don't differentiate its customers and their targeted customers are
every citizen of that particular country where they are operating.
Positioning: Positioning is a strategy which helps in create your brand or products
picture into your customer's heart and minds and with that Tesco has been very effective in
building the key relationship with its customers or clients and providing them the high quality
products which fulfil their needs and wants.

Strength Weakness
 When comparing with other
supermarket chains in Great Britain
TESCO attains high sales and
revenues.
 The market share of company is
dominating other grocery stores in
UK. It have also achieved the position
of most famous retail store in Ireland.
 There are also a number of different
form stores such as Tesco metro,
Tesco extra and so on (Haywood,
2019).
 TESCO saw a downfall in their shares
in 2018. this was a weakness of
TESCO as it could not face the after
effects of BREXIT.
 Financial performance of TESCO is
also effected due to its debit and credit
cards.
 Due to its low price policy TESCO is
facing problems of lower profits
margin.
Opportunities Threats
 TESCO have came up with new
discounted stores with Jack's which is
efficiently growing. They have
opportunities to grow better than low
cost competitors such as ALDI and
LIDL
 TESCO could adopt opportunities like
joint venture through providing market
knowledge and also improve its
performance in various local sectors.
 Legal as well as tax matters that might
occur due to economic crisis is one of
the threat for TESCO.
 There are also a number of competitors
for TESCO in market such as ALDI,
Walmart etc.
Successfully understanding the strengths of organisation the managers can play with the
strengths they can successfully use these strengths in order to develop profits for the business. It
is necessary to focus upon weaknesses and threats as they might lead to incompletion of task.

Risk assessment will help in identification of all the threats and the managers can beforehand
prepare themselves in order to deal with any threat that is arriving their way.
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year
Investment 10000 10000 6000 5000
Initial money 10000 5000 5000 5000
Total 20000 15000 11000 10000
Marketing
outlay
15000 1000 3000 5000
Sales
publicity
2000 2000 1000 1000
Direct selling 4000 3000 1000 1000
Promotion 4000 1000 5000 2000
Total 25000 7000 10000 9000
The budget that is provided in the marketing plan will help Tesco to understand the
requirements of funds in future. It is necessary for Tesco to make sure that they are considering
various factors in order to arrange for the capital this required by them in order to successfully
apply the plan achieving all the objectives that are to be fulfilled by them. They can use their
capital, reserves, sell shares or even take loan from a bank.
Monitoring and Controlling
Marketing manager of the Tesco has the responsibility to monitor and control the overall
marketing plan which has been created and given budget has to be followed by the manager so
that the maximum benefit can be made out of this plan (Cerviño Ortiz and del Hoyo, 2020). Each
and every task has to be monitored by the manager as per the schedule and for success of this
plan every member of marketing department should work as per the task given to them.
Marketing reaction: it is related with the competitor actions that are also a barometer for the
purpose of measuring the failure or success of a particular marketing plan. In present scenario
this tool can be used by having a constantly monitoring of the way competitors strategies are
constantly changing. TESCO has to work towards evaluating whether the present basic strategy
is able to provide a competitive advantage by application of present marketing strategies.

Establishing of key performance indicators: there are certain traffic metrics that can be used in
case of digital marketing sources that are used as a part of marketing plan by measuring the total
site visits, number of new visitors, number of retuning ones, bounce rates, exit are. Further there
is also a need to keep a track on conversion metrics t hat includes conversion funnel rates, cost
per conversion, click through rats. Revenue metrics, ROI are also factors that have to be
considered in order to determine the value per visit.
Cost per acquisition: it is criteria that are based on determine the marketing cost per acquisition.
It is a quite essential metric that is used for the objective of determination of the real returns on
investment. At the end of every marketing plan in relation with TESCO, the main objective is to
generate higher rates that can be done by analysing the cost of acquisition of each customer.
Return on investment: It is also a method or a technique that can be used to analyse the
marketing expense the laid goals is to make a check whether the marketing investment is
resulting profits or not. It is one of the indicators In TESCO that can assist in evaluating of
effectiveness to assess overall efficiency as business has to make profits for their survival.
Sales performance: after there has been completion of marketing plan the objectives are gnarly
related with achievement of higher sales and nacres in the market share for this purpose if the
sales figures are not going up it may lead to an indication in TESCO, that there are some of the
loopholes that have resulted into non achievement of the laid objectives. Marketing managers in
TESCO have to work by analysing the various variables that includes analysing the rising of
prices, sales strategies along with timely assessment of all the external factors.
From the above discussed techniques it can be said that evaluation is a very important aspect
of marketing that is assisting organisations in elimination of ineffective strategies and further
development of overall plan according to specific business requirements. There has to be proper
scheduling of regular evaluations according to a marketing plan so that overall resources can be
manage and properly utilised by modifications of campaign according to the required
mechanisms.
CONCLUSION
The above report concludes that marketing is an essential function which includes a
number of different activities. Also there are a number of different elements considered under
marketing mix which helps in analysing and differentiating between different products from
that of its competitors. Marketing department is also have responsibilities to deal with a

number of other functional departments in organisation. They need to effectively work in
coordination with them in order to bring success and growth for business. While analysing a
marketing plan organisation can gain competitive advantage in the market as well.

REFERENCES
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