Marketing Strategy Analysis of Tesco

The assignment provided is a detailed analysis of Tesco's marketing strategy, incorporating the marketing mix (4Ps) and PESTLE analysis. It cites relevant sources from books and journals, including 'International Journal of Contemporary Hospitality Management', 'Media Essentials', and 'Operating System Concepts Essentials'. The document also references online resources, such as Marketing Mix and MARKETING THEORIES – PESTEL ANALYSIS. This comprehensive analysis is suitable for students seeking to understand marketing strategies in a real-world context.

MARKETING ESSENTIALS
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P1 Explain the key roles and responsibilities of the marketing function ..............................3
P2. Roles and responsibilities of the marketing manager. .....................................................5
How marketing influences and interrelates with different departments of the organisation..5
The value and importance of the marketing ..........................................................................6
P3. Compare marketing mix of Aldi and other competitor....................................................1
P4 Basic marketing plan for the chosen business...................................................................4
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................9
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INTRODUCTION
Marketing can be defines as function that play significant role to assess organisational
objectives. It includes several activities that is related with selling and distribution of goods. It is
not only consider for consumer needs but also assess the latest trends and demand of the market.
Therefore, it assists to fulfil consumer requirements which increase standard of living. Moreover,
it consists positive impact on standard of living that helps to communicate goals and objectives.
Aldi is commonly known as the brand of discounted supermarket with more than 10,000 stores
in 20 different nations. It is founded in 10 July 1946 and diversified into two parts Aldi Nord and
Aldi Sud in headquartered in Essen, Germany by Karl Albrecht and Theo Albrecht. It deals with
the food, beverages sanitary articles and so on. In this regard, the present study focus to provide
concept of marketing and future development with using different process. It also covers rules
and responsibilities of marketing managers which includes value and importance with basic
marketing plan. As a result, it communicates several benefits within the business environment.
P1 Explain the key roles and responsibilities of the marketing function
Overview of marketing process
Situation analysis
 Situation analysis consisted of identifying the opportunities to satisfy needs of
customers.
 Before deciding the necessarily of the customers Aldi needs to understand its own
capabilities (Purvis, 2015).
 The Aldi examine both internal as well as external environmental factors. (micro
and macro environment)
 Situational analysis consists of both present past and future aspects.
 5 C analysis –Customers, Company, Competitors, climate,
Marketing Strategy
After Aldi has taken decision of satisfying it's their customer’s requirements, to develop
significant marketing strategy with strategic plan.
Marketing strategy includes-
Marketing segmentation
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 Identifying market and its strategy which vary from other market (Cavusgil and et.al.,
2014).
 It is important to create segment With customers requirements that need to fulfil demand
of consumers have distinct set of needs and requirements that makes it impossible for the
company to serve.
Need of segmentation of market
The following aspect of the segment should be-
 Accessible: Approachable in which communication successful develop.
 Identifiable: must me consider in measurable context which identified
 Substantial: In this regard, largely people justify resources to target them
Target market strategies
Single segment
 Consider concentrated strategy
 With limited resource's application in small business
 When market segment consider with marketing mix
Selective specialization
 Identified as differentiated strategy
 Various marketing mix are offered to different strategies
Product specialization
 Specializes with particular product
Market specialization
 The chosen enterprise can develop in particular segment of target with various product.
Full market coverage
 Deal with the larger market to accomplish objectives with its market (Malhotra, 2015).
 Marketing mix consider undifferentiated strategy to develop significant advantages in
market.
Marketing mix decisions
Four elements
 Product – There are several elements consider such as brand name, quality, safety, etc.
 Price – This strategy successfully develop with different aspects such as pricing strategy,
flexibility, etc.
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 Place – distribution channel, centres, members (Pappas, 2017).
 Promotion – Different promotional activities such as advertisement, promotional
campaign development and sales promotion consider in this aspect.
Implementation and control
 In this way, it is essential to look upon creative marketing plan which developed
to launch successful product.
 In the market changes, marketing mix can be accommodate and changes can be
take place with advertisement message.
 New program must be successfully implemented to accommodate changes and
continual monitoring.
In order to fulfil roles and responsibilities, it can be stated that there are different
marketing functions considered that assists to communicate benefits in Aldi. In this regard,
advertising, promotion, distribution, customer service, etc. develop in the selected enterprise to
gain more desired results at workplace.
P2. Roles and responsibilities of the marketing manager.
In this context, above are certain roles and responsibilities of marketing manager
 They are responsible to take the decision and control the quantity and production and
gathers the outcomes of market place research (Naresh, Malhotra, 2015).
 Sales estimating merchandising planning price and fix.
 Marketing manager of the Aldi make a roadmap of advertisements and sales elevation
and specific channels and distribution for product and services.
 With the help of control credit policy, marketing activities successful deliver in the
market.
 Marketing managers can consider great responsibilities for society.
 With the help of great opportunities, new goods and services can be successfully deliver
in market.
How marketing influences and interrelates with different departments of the organisation.
All the departments of the organization are interrelated with each. To perform effectively
marketing functions are required the support of other operational departments. The need of
financial department, sales department and human resource department occurs when the
marketing manager of the Aldi is going to launch a new product or the services. They require the
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appropriate amount of budget which is being financed by the finance department. Therefore, for
that they will require the skilled manpower which is to be brought up by the human resource
management. However, it can be said that all the organization is being interconnected from each
other.
The value and importance of the marketing
In order to make effective services, it can be stated that needs and wants of customers
must be fulfil. As a result, marketing assists to Aldi for development of needs and wants of
consumers with conduct market research. It helps to promote development of distribution
channels where marketing play an important role at workplace in Aldi. Furthermore, different
researches identify distribution channels with apply appropriate strategy.
In respect to increase profitability, it can be stated that accountable develop with more
growth in income. Therefore, extension also increases in the selected business to develop its
productivity. Along with this, purpose also accomplish with mounting customers needs and
requirement by Aldi (Baker, and Magnini, 2016). This is particularly so when the association to
deal with corporate customers. Hence, they are involve to take appropriate decisions in desired
manner.
With the help of marketing activities, it can be stated that branding of the organisation
continuously develop in successful manner. Therefore, participation in publicity activities,
advertisement and customer interaction develop through feedback collection.
If there will be no marketing Aldi will not be illuminated and it would be lifeless. The
Success of the organization is depending upon the various application of the fund to the different
various portfolios of investment which is the main function of the marketing as well.
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P3. Compare marketing mix of Aldi and other competitor
Marketing mix consist important part in order to accomplish desired level results. In this
consideration, following perspectives of marketing mix develop to gain more effectiveness in
Aldi:
Basis Aldi's marketing mix Tesco's marketing mix
Product Aldi consider affordable food products
that are offered as same quality as other
branded products. Products that are sold
in the organisation have full control
over the production and ultimate cost as
well. There are different kinds of food
products develop by company such as
food, beverages, health and beauty,
stationery, etc. Apart from items, they
are also focuses on the non-food items
which must be successfully develop in
the selected business.
As critical evaluation, Tesco
offering huge range of products in
their different stores. Therefore,
they are able to cater every person
need and preference of customers
with different segments of the
market (Campbell, Martin and
Fabos, 2018). Furthermore, they
are also dealing in large scale in
different areas of the world to
target several customers in it.
Therefore, different kinds of
products are developed such as
food, pet care products, beverages,
frozen food, sports, etc. Tesco also
deals with their own brand that
assists to capture high value of the
own brands such as Finest,
everyday value, Tesco Loves
Baby, etc. AT different types of
stores products develop
successfully with variety so that it
available and depends on type of
the store.
Price Due to cheap price and quality, Aldi As critical discussion, Tesco

consider strong customer base for their
own brand products that are not
available with competitors. Hence, they
possess different kinds of pricing such
as unit pricing strategy for groceries
which helps to compare. Furthermore,
market penetration also implemented
which charges low prices for the new
products to enter in market and gain
more share. Competitive pricing also
followed as high competition in which
prices of products below the
competitors. Use of economies of scale
purchase where it buys in bulk at
bargained price that enabling to create
benefits to customers (Nguyen, Simkin
and Canhoto, 2015).
follow strategy of cost leadership
in their pricing. It provides lowest
priced goods to maintain quality.
In addition to this, competitive
pricing also follow in the selected
business so that they can attract
several customers in the
organisation. They are generally
using economies of scale and best
channels for procurement and
maintain low prices. Unique
programme is also implemented
that assists to attract several
customers to get lower price for
any branded products. New
products of Tesco generally
launched at low price so that it can
be restructured to get better things
with best offers. For customers, it
assists to improve performances
and reduce prices in effective
manner.
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Place Aldi mainly consider operations in
more than 8000 stores in 18 countries.
They are generally procuring all
products in bulk from various suppliers
and stores them at local warehouse.
Along with this, they are also
considered online presence that assists
to allow customers to check detail and
locate at nearest store.
However, there are more than 6900
stores in more than 11 nations
where Tesco operate their
functions. Supermarkets are also
large which sell groceries and
small range of non-food items. It
carries wide range of products
which includes groceries and
general merchandise. Tesco also
deals with online selling of
products and services that helps to
communicate several advantages at
workplace.
Promotion Aldi also consider promotional
activities in marketing mix strategy
which is comprehensive. With the help
of cost saving strategy, they are
generally investing negligible amount
for promotion so that marketing
department will get several benefits. It
helps to build appropriate customer
trust for products to develop significant
advantages. In addition to this, Aldi
also consider extensive use of print,
electronic and display media to promote
their stores. Email marketing inform all
customers to buy special products with
promotional strategy.
On the other hand, Tesco has also
strong brand image that relies on
low prices. Promotional activities
are centred on the theme. It
includes television advertisement,
charitable events, etc. as
promotional channels. Club card
also offers by the organisation to
attract several numbers of
customers. In addition to this, there
are several tools can be used such
as advertisement, promotion, etc.
These cards show loyalty card of
different customers which assists
to accomplish personalised
discount and offers. It is the best
perspective to promote products
online (Silberschatz, Galvin and
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Gagne, 2014).
People Aldi has lower customer services than
the competitors so that employees not
helps customers in products selection.
In order to divide all work in proper
section, scanning of products can be
develop successfully. Hence, job
training also requires for new
employees at workplace (Nguyen,
Simkin and Canhoto, 2015).
Furthermore, it is essential to pay more
to their competitors so that they are
encourages doing appropriate work.
However, Tesco is one of the
leading retail brands employing a
lot of people. They undergo
selection process held by the
company. Job and policy selection
are also required to get correct
people for the enterprise. There are
around 480,000 employees in 11
market operate their functions.
Physical evidence Aldi is globally renowned for simple
business process, standardisation, etc.
There are more than 85% stock stores
to recognise brands. They also provide
30% cheaper products that keeps low
prices to deal at global market. In
addition to this, they are only store
products that are maintains same prices
for groceries in all over the world
(Campbell, Martin and Fabos, 2018).
Physical evidence stands as proof
of authentic provided to the
customers. Therefore, Tesco
consider logos, colours, labels and
equipment that are used by Tesco
as a proof of its consumers.
Physical evidence of the brand also
places of truth with customers.
Process Aldi consider sheer layout which makes
products finding very easy. As a result,
customer have limited number of high
qualities with nominally priced brands
to prevent customers from getting
confused to reduce selection time.
Along with this, the company has larger
Process followed by Tesco to
attain market task that are
successfully kept in mind. It was
also designed with several
deviations from company policies
that were kept minimum (Tesco
Marketing Mix (4Ps) Strategy.
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barcodes for quick identification and
broader conveyor belt for fast billing.
2018). Other factors are also
considered accessibility, service
features and capacity level of
production.
P4 Basic marketing plan for the chosen business
Marketing plan consider most important activity for Aldi to operate in different areas of
the world. In this regard, quality of products also successfully develop that assists to lead with
innovative functions and operations at workplace. It includes following elements: Executive summary: Mission: Aldi has mission to increase number of customers from different country.
Therefore, they enhance number of products and brand in different areas of the world. It
assists to develop more significant advantages in several places (Kim, Hallsworth and
Kim, 2018). Vision: Furthermore, Aldi has vision to reach towards more effective consideration of
target market. In this context, they are generally developed more creative operations and
functions which successfully build to follow several rules and regulations as well.
 SWOT analysis:
Strength Weaknesses
 Aldi provides top quality products at
cheaper and affordable price.
 They offer wide variety of products
portfolio at their stores.
 They consider operations in more than
15 nations in all over the world.
 Relatively small as compared to other
brands.
 Few chain stores of Aldi is among its
major weaknesses.
 Allegedly regarded store for cheap and
low-quality items.
Opportunities Threats
 Need to invest more in advertisement to
beat with competition.
 Expanding into growing economies.
 Aldi cannot cater complete shopping
experience.
 Government policies and taxation
create impact on organisation's profit
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 Re-positioning with affordable brands
(Steenkamp, 2017).
margin.
 High competition of the market.
 PESTLE analysis: In respect to consider PESTLE analysis, it can be stated that there are
different elements create impact on the outcomes of Aldi.
Factor Impact
Political factor This factors create high level of conflicts in the country so that
currently threaten sustainability for Aldi. However, majority of the
firms situated in Europe, USA, Australia, etc. that are present relatively
free from conflict.
Economic factor Inflation on grocery products in continuously increasing which create
major impact on the chosen business. It is favourable as customers who
seeking to find cheaper products (Haleem and Jehangir, 2017).
Social factor Aldi currently determines the highest paying in supermarket of UK to
deal with 3000 staff members. Therefore, higher wage creates results
with better standard of living.
Technological factor Supermarket also increasingly turning for technology that assists to
promote different services that increases number of customers in
business. They are generally expecting more services from grocery
providers (Tse, Zhang and Garnett, 2016).
Environmental factor Aldi also increasing stock of different products which provided by
British producers and farmers. It helps to attract and support local
producers with ensure sustainability in local areas where company
operated.
Legal factor In the supermarket industry, UK also affected with scandals that
concerning content of food products which impact on the Aldi.
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 STP: Segment of Aldi enterprise based on competitive price that assists to meet with
innovative functions and operations at workplace. In this regard, effectiveness also
generally increases to promote more desired level results. Furthermore, target group of
the business also based on household and individual. Positioning can be created with
more private labels so that they are strongly placed in UK easily. Now they are trying to
firmly place itself in international market (Jenkins and Williamson, 2015). Marketing budget: It is one of the successful marketing plan which consider in term of
cost. Budget is also important which is estimated and will be required to promote
products and services in different areas of the world. It is important to focus on
promotional activities that assists to promote different products with using advertisement,
public relations, employing staff in marketing process.
 Marketing mix: marketing mix includes the seven P's of marketing-mix that includes
product price place and promotion. The explanation of product price place and promotion
is discussed under.
PRODUCT
Aldi consider different types of products that are offered with same quality of other brands in the
organisation. In addition to this, they have full control over the production and ultimate cost as
well.
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Illustration 1: PESTLE analysis
(Source: MARKETING THEORIES – PESTEL
ANALYSIS, 2018)

PRICE
Due to cheap price and quality, Aldi consider strong customer base for their own brand products
that are not available with competitors. Hence, they possess different kinds of pricing such as
unit pricing strategy for groceries which helps to compare.
PLACE
Aldi mainly consider operations in more than 8000 stores in 18 countries. They are generally
procuring different products in bulk which distributed among several suppliers and stores for
local warehouse.
PROMOTION
Aldi also consider promotional activities in marketing mix strategy which is comprehensive.
With the help of cost saving strategy, they are generally investing negligible amount for
promotion so that marketing department will get several benefits.
Implementation of plan:
Marketing control is the basic requirement of the marketing plan. It should be performed
by keeping and matching the objectives with the results. In order to produce detailed, coherent,
evidence based products, it is essential to applies different elements of marketing to accomplish
objectives. In retail enterprise, it helps to communicate several benefits at workplace.
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Illustration 2: Marketing mix
(Source: The Marketing Mix, 2018)

CONCLUSION
From the above report it can be concluded that marketing plays a very important role in
the organization. Marketing depicts the essential role with interrelating with the other functional
department. Every department in the organization is link with the marketing department.
Assignment has provided the brief overview of concept of marketing with future goals.
Therefore, trends are along with marketing that assists to produce detail analysis of different
products in the business. With this regard, value and importance of marketing develop
successfully in the market that assists to provide comparison with different enterprise. At last,
marketing plan produced to increase more effective results at workplace.
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REFERENCES
Books and Journals
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management. 28(8). pp.1510-1534.
Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction.
Bedford/St. Martin's.
Cavusgil, S.T., and et.al., 2014. International business. Pearson Australia.
Haleem, F. and Jehangir, M., 2017. Strategic Management Practices by Morrison PLC, UK.
Analysis, Lessons and Implications. Middle East Journal of Business. 12(3).
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Kim, W., Hallsworth, A. and Kim, H., 2018. On being local and being successful in Korea:
Tesco and E‐mart. Area.
Malhotra, N.K., 2015. Essentials of marketing research: A hands-on orientation. Essex: Pearson.
Naresh, K., and Malhotra, 2015. Essentials of Marketing Research: A Hands-On Orientation.
Pearson Education Limited.
Nguyen, B., Simkin, L. and Canhoto, A.I. eds., 2015. The Dark Side of CRM: Customers,
Relationships and Management. Routledge.
Pappas, N., 2017. Effect of marketing activities, benefits, risks, confusion due to over-choice,
price, quality and consumer trust on online tourism purchasing. Journal of Marketing
Communications. 23(2). pp.195-218.
Purvis, J., 2015. Human resources marketing and recruiting: Essentials of digital recruiting.
Handbook of Human Resources Management, pp.1-19.
Silberschatz, A., Galvin, P.B. and Gagne, G., 2014. Operating system concepts essentials. John
Wiley & Sons, Inc.
Steenkamp, J.B., 2017. Global brand strategy: World-wise marketing in the age of branding.
Springer.
Tse, Y.K., Zhang, M. and Garnett, P., 2016. Insight from the horsemeat scandal: Exploring the
consumers’ opinion of tweets toward Tesco. Industrial Management & Data Systems.
116(6). pp.1178-1200.
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Online
Tesco Marketing Mix (4Ps) Strategy. 2018. [Online] Available through:
<https://www.mbaskool.com/marketing-mix/services/16731-tesco.html>.
MARKETING THEORIES – PESTEL ANALYSIS. 2018. [Online] Available through:
<https://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-
analysis>.
The Marketing Mix. 2018. [Online] Available through: <https://marketingmix.co.uk/>.
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