Marketing Essentials: Tesco Company

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Key responsibilities and roles of the marketing functions...............................................3
P 2 Relation of marketing to the wider organizational context..............................................4
LO 2.................................................................................................................................................5
P 3 Application of marketing mix on the marketing planning in order to achieve business
objective.................................................................................................................................5
LO 3 ................................................................................................................................................8
P 4 Marketing plan.................................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The term marketing refers to the process through which company makes efforts and
adopt several practices which involves promoting products and services which are produced by
the company in order to increase its sales and revenue. The marketing is such a function without
which company cannot run successfully (Chang, Yu and Lu, 2015). The present study is based
on the company Tesco. This company deals in merchandising and the groceries retail and
supermarket stores. This company was founded in Hackney, London by Jack Cohen in the year
1919, around 100 years ago.
The report will start by outlining the important and crucial roles and responsibilities of
the marketing function within the company. Further, it will discuss about the relationship that
marketing function has with the other functions and departments of the company. Furthermore
the report will highlight that how the marketing mix that is the 7 P' s are applied by the Tesco
with intention of accomplishing the business objectives and goals.
LO 1
P 1 Key responsibilities and roles of the marketing functions
Marketing is the major function which is performed in any company. Marketing refers to
as an activity or a process through which the company market its products and services in the
external market in order to increase its sales and revenues. In today's cut throat competitive
world it is very necessary for the companies to have a very strong marketing department in their
companies to face the tough competition because marketing is only function which provides a
competitive edge to Tesco. The marketing in organization plays a very important and crucial role
and is also responsible for the success of the company and its working. The various roles of the
marketing function within Tesco is discussed in the adjoining points-
Analysing the consumer needs- It is the responsibility of the marketing function of
Tesco to study and analyse the needs and requirements of the consumers. The business
environment is very dynamic and ever changing so tastes and preferences of the consumers also
keeps on changing with these changes (Erevelles, Fukawa and Swayne, 2016). So it is duty of
the marketing function or the marketing manager of company Tesco to constantly study the
requirements of consumers and convey it to the production department of company.
Innovation and creativity- This is yet another major role of the marketing function. In
this marketing function of Tesco keeps on doing new and latest innovations and creativity in

order to attract new and potential customers towards products and services of our company (Fan,
Lau and Zhao, 2015). The customers because of the changing standard of living and increase in
income level prefers new and innovative products. So the marketing function keeps on bringing
new innovation in its products and services.
Communication with other departments- This is yet another important role of the
marketing function. Under this role the marketing function of Tesco is responsible for
communication with other departments also. This is of utmost importance because of the reason
that all the other function are based on the marketing function. For example the marketing
function of Tesco gathers information relating to the feedbacks of the customers after they use
the product or the services, the marketing function then passes on this information to production
functions which then makes necessary changes in the products according to the requirements of
the customers.
Improves the sales- This is also a role of the marketing function because the marketing
function basically works for the customers only and they tries to understand the preferences and
the requirements of the consumers. The information collected by marketing manager of Tesco is
helpful for production department in producing the goods or services according to the needs of
consumers. If products produced by Tesco will be according to the requirements of consumers
then they will buy the products in large numbers and hence the sales will be increased and
fostered (Sheikh, Shahzad and Ishak, 2016).
P 2 Relation of marketing to the wider organizational context
The marketing is a crucial and the most important function within company. This is
because of the reason that marketing function is responsible for successfulness of company. It is
due to the reason that marketing is a function or a process through which company markets its
products and services of company into market in order to increase sales of company. The
marketing function of company Tesco is also linked and interrelated with other functions and
departments of the company. The interrelation of these different functions with marketing
function within Tesco are as follows-
Marketing with finance- The marketing function of Tesco is closely linked with the
finance department. The finance refers to money which is required for every work which is done
within company (Bradford, Harden and Yen, 2018). Without money or finance not a single work
can be done within organization. The marketing is a department which requires most of the

money. This is because of the reason that marketing uses many different types of techniques like
advertising, sales promotion, social media marketing and many more different types of
techniques for which company requires more funds (Cifci, Cetin and Dincer, 2018). So for all
this and for meeting marketing requirement Tesco needs is money and this money is provided
by finance department. So the marketing function requires to work coordinated with finance
function.
Marketing with production- Production is a function through which company produces
its products and services in order to satisfy the needs and requirements of consumers. It is the
duty of marketing department of Tesco to do a research of whole market and study what are the
requirements, needs and preferences of consumers. Also it is the duty of marketing function and
manager of Tesco to take feedback of consumers that how they liked products or services and
what are there for improvement of product or services. The marketing employees studies and
gathers all these information form market and pass on to production function so that they can
make necessary changes within products and services according to the requirement and
suggestions of consumers.
Marketing with human resource- The human resource department performs function of
recruiting and selecting new employees. It is the duty of human resource management of Tesco
to assess the vacancies and requirements of all departments within organization. On the other
hand, marketing is a function which is responsible for promotion of products and services
produces by company. So the marketing requires a lot of manpower because it also includes
sales promotion which requires many person. So the marketing people after assessing total
requirement of manpower conveys it to human resource manager. Then human resource manager
tries to find new candidates according to the requirements given by marketing manager of Tesco.
LO 2
P3 Application of marketing mix on the marketing planning in order to achieve business
objective
Marketing mix refers to combination of different sets of activities and practices which
are undertaken by company in order to promote its products and services into market (Blythe
and Martin, 2019). The marketing mix includes all the 7 P's of marketing which are as follows-
7 P's Tesco Sainsburry

Product Tesco provides a wide variety
of products at its stores. It
provides a range of products
including frozen foods,
different bakery products,
gaming products, electrical
products, sports and leisure
products and many more. Bit
also has its own brand stores
like Tesco Value, Tesco Lotus,
Tesco Kipa and many more.
Sainsbury deals in a wide
variety of products and
services for its customers. It
includes food, organic foods,
clothing lines, furnishing and
kitchen products, home
collection range, stationery,
toiletries and many other type
of products.
Price The price strategy used by
Tesco is cost leadership
pricing strategy. This is a
method under which the
company provides low priced
goods and also maintains the
quality of goods (Diez -
Martin, Blanco - Gonzalez and
Prado - Roman, 2019).
The Sainsbury uses the pricing
strategy of price discrimination
method. It is a type of pricing
strategy within which
company charges different
prices for same product from
different types of consumers.
Place The company has a wide
variety of stores for its
distribution of goods and
services. It has more than 6900
stores in more than 11
countries in its own brand
name like Tesco Express,
Tesco Superstores, Tesco
Metro and many more.
Sainsburry has around 598
supermarkets and
approximately 714
convenience stores out of
which 45 stores works for
24*7. For delivery of products
store also provides facility of
home delivery. It also has a
system of online business

where consumers can place
order through website or via
phone call.
Promotion It is method of promoting
product and services of
company in market. Tesco
uses television ads, hoardings,
charitable events as channel
for promotion of products and
services.
Sainsburry has an intact
system of marketing and
promoting its products and
services. This company
follows method of Above the
line (ATL) and Below the line
(BTL) promotional strategy.
Under this strategy, the
company uses ATL for mass
penetration of consumers, BTL
for specific consumer segment.
Process The process of Tesco focuses
on completing marketing task
and is designed in such a way
that if there are any deviation
of company from its policies
and rules and regulations then
specific measures can be
taken.
This company follows the
process of online shopping and
also follows principle of click
and collect. The company is
also planning to come with a
new format of stores in order
to address the changing
consumers requirements
(Hanlon, 2019).
People Tesco is a large scale
organization employing a lot
of people. More focus is laid
on quality of manpower
because the success of
company depends on it only.
Tesco employs around
The company has a variety of
well trained and
knowledgeable employees.
Sainsbury employs around
148,000 employees in all the
stores of the company.

480,000 employees in all
Tesco stores all over the globe.
Physical evidence Tesco uses a variety of
evidence or proof for the
company like the labels, logos,
equipments as a proof for its
customers (Muller, 2019).
This company uses a good
strategy to market the
company's product. It has a
variety of different types of
stores all with different types
of layouts and design which
are made keeping in mind the
needs and the requirements of
the customers.
LO 3
Tesco can applied SOSTAC marketing model for the critical analysis and evaluation of
elements of marketing functions and there interrelation with other functional units of. PR Smith
is the founder of this model and it was founded in 1990. With the help of this model Tesco can
check the plans of company.
There are six stages of this model which are as follows-
Situational Analysis- This is first stage of this model that shows that company should
actuality knows where they are standing. Tesco can use the tool like SWOT analysis, PESTLE
analysis to track the position of company in the market.
Objectives- This is the next step which defined that explains that what company wants to
achieve in the future. The objectives of company can be active with the help of setting the
SMART goals.
Strategy- Strategy means how plan to achieve the goals and objectives of company.
There are various strategy of Tesco that management plan to achieve the desired goals and
objectives of company like acquisition, merger, engagement, team working and many other
strategies are set according to the needs of attaining aim and objectives.

Tactics- Tactic covers the particular instruments of the marketing that are utilized to
execute the goals and objectives. The most common tools that Tesco used is KPI as itis one of
best tool to check the performance of company in the market. Furthermore, affiliate marketing,
email marketing, pay per click etc. are also the tactics of marketing.
Action- This is the stage where plan is implemented within organisation. After planning
all the strategies, tactics, company decide to put the plan into work.
Control- This is the last stage of this model where the managers of Tesco used to control
on the activities to achieve the expected gaol like measurement, reviewing, monitoring, updating
etc.
P 4 Marketing plan
The marketing plan refers to document which outlines all the aspects relating to
marketing of product or service into market. It is a document which outlines the steps in
sequences that are taken to market and promote the product.
Executive Summary
The following marketing plan is made for company Tesco. This started with internal
analysis of company with help of SWOT analysis along with external analysis with help of
PESTLE analysis. Further it discussed about the 4 P' s of marketing and a brief description of
segmenting, targeting and positioning of products of Tesco. Lastly it discussed about budgets
and cost. The plan is made to develop the new product of 2 minute cook food which is made
keeping in mind the working women.
Aim
“To become a prominent global leader in retail chain stores”
Objectives
 To increase the profits by 20 % till 2020.
 To increase the number of stores more by 40 % till 2021. To increase the customer base by 25 % till 2020.
SWOT Analysis
The SWOT analysis is a type of framework which is used in analysing the internal and
the external environment (Malik, 2019). The SWOT of Tesco is discussed in the following
points-

Strengths- These are the positive and the stronger side of the company. The strengths of
Tesco are as follows-
 This is one of the largest company in UK and is also listed on London Stock Exchange
and also has a leader in the market share with 28.1 % market share. It has a diversified range of products and services like furniture, clothing, telecom and
internet services, electronics, financial services and many more variety of product range.
Weaknesses- These are the drawbacks or the limitations which hampers the company
from growing and expanding. The weaknesses of the Tesco are as follows-
 Some of the subsidiaries are not working and operating properly so it led to decrease in
the profits of company. For example Tesco finance profit levels decreased and it
adversely impacted the working of the company. Because of the cut throat competition, there is a lot of pressure and to handle it the
company has to lower down its prices to face the competition.
Opportunities- These are the ways through which the company can have an option to
grow. The opportunities of Tesco are as follows- The greatest opportunity for the company is strategic alliance with other brands in order
to reduce the competition.
Threats- These are the variables which hampers or restricts the company from growing.
The Threats of Tesco are as follows- The major threat for Tesco is the economic instability and the increasing competition
within the market.
PESTLE analysis
It is an analytical tool with help of which the company can examine the impact of
external forces on business (Tyson, 2019). The elements of PESTLE analysis are as follows-
Political factors- These includes all the political instability and the changes which the
company faces due to the changes in the political environment and the effects of it on Tesco.
Since the company will launch this in many countries so it will have many restrictions because of
political instability.
Economic factors- These factors includes the economic factors like the tax, interest rates,
inflation and deflation rates, economic growth rate and other such factors which affects the

working of the Tesco. If the product will be launched in new country then the labour cost
applicable in that country will pose a problem because the labour rates there are high.
Social factors- These actors includes factors such as age distribution, population growth,
attitude and beliefs of the consumers all affects the operations of Tesco (Afifi and Amini, 2019).
This concept is not much favoured by the society because mostly the people are of conservative
mind so they will not accept this new product.
Technological factors- These are the latest and the updated technologies which the
company Tesco must adopt to in order to get a competitive advantage. Launching a new product
will be beneficial because it will bring in new advancements in technology for the company.
Legal factors- These includes all the laws and legal regulations which the company has
to follow while working in different countries and places. All the countries have their own rules
so the Tesco has to follow all the rules and regulation of that particular country where it is
operating.
Environmental factor- These are the latest trends which the company needs to focus on
the because it is the most emerging factor that the corporate social responsibility towards the
society.
Marketing mix
Product- These are the products and services within which the company deals in. Tesco
deals in a wide variety of range like frozen foods, different bakery products, gaming products,
electrical products, sports and leisure products and many more. The new product launched is 2
minute cook food which is made keeping in mind the working women.
Price- It refers to the cost that company charges from the consumers in exchange of the
products and the services. Tesco uses cost leadership pricing strategy for charging the price from
the consumers. The price of the product will be $20.
Place- For distribution of product, the company uses format of supermarkets and stores.
It has more than 6900 stores in more than 11 countries. The major distribution place for this
product will be UK.
Promotion- It is the most essential part of the marketing mix. Tesco uses a combination
of different types of promotional techniques like hoardings, charitable events, television ads for
promoting its product (Caliskan, 2019).
Segmenting, targeting and positioning

Element Description
Segmenting Under this the Tesco tries to segment or divide
the population into different strata according to
some common characteristics. Here Tesco
segments the group according to income level
and status of women whether working or non
working.
Targeting In this strategy the company out of the above
different segments tries to target or focus on
any of the segment which is profitable for the
company (Thomas, 2019). The major target for
Tesco is the working women.
Positioning This is a stage wherein Tesco tries to find out
that whether the target consumer liked the
product or the services or not. If not liked then
what additions they want are noted. For
positioning Tesco uses positioning according to
product benefit strategy.
Budgets
Particulars Initial investment 1st year 2nd year
number of consumers 5000 6000
average selling cost of product 200 250
Total revenue (cash inflows) 1000000 1500000
Operating expenses
packaging 250 250
advertisement 375 250
machinery 4000 0 1700

equipment 2000 750 0
salaries 1000 1200
Total operating expenses (cash
outflows) 6000 2375 3400
Net cash flow -6000 997625 1496600
Capital invested 200000
Opening balance of cash 200000 194000 1191625
Closing balance of cash 194000 1191625 2688225
Sales budget- It is made in order to estimate the sales for that period of time. With help
of this budget, Tesco can estimate that in future how much sales can be made.
Cost budget- These are a type of budget which is prepared in order to estimate the cost
that can be incurred in the whole financial year (Postel, 2019). Tesco can use this budget to
beforehand know the cost that can be incurred in the future.
Implementation
The plan will be implemented by focusing on working women who are busy with their
jobs. This 2 minute cook food are ready made food which will be prepared in just 2 minutes
which will save time of women who also needs to go to job and also has to look after their
families and home
Monitoring and control
This is last stage of marketing plan where company will monitor the working of plan and
ensure that the product launched is successful and accepted by consumers.
CONCLUSION
With help of the thorough study of the above report, it can be concluded that the
marketing function is the essence of success of the company. The marketing function is the
function which helps the company in promoting its products and the services into the market.
Also it analysed that the efficient marketing function within the company helps them to face the
cut throat competition present in the market. Also, the report summarized that marketing
function is also responsible for doing a complete marketing research and to study the consumer
behaviour.

The report firstly analysed the meaning and the important and key roles and
responsibilities of the marketing function which it has within the company. Next it discussed
about the interrelation of the marketing functions with the rest of the functions of the
organization. Further it discussed about the application of marketing mix and developed a
marketing plan for the company to launch a new product..