Marketing Plan Development for Tesco's New Product Launch

This report presents a comprehensive marketing plan developed for a new product launched by Tesco. It begins with an overview of the marketing plan and its importance, followed by defining the goal and objectives of the plan, which include introducing the new product in the UK market and increasing sales. The report then conducts a SWOT and PEST analysis to assess the internal strengths and weaknesses, and external opportunities and threats, along with political, economic, social, and technological factors influencing Tesco's operations. Furthermore, the report delves into the 4Ps of marketing (Product, Price, Place, and Promotion) and elaborates on Tesco's strategies for each. The STP model, including segmentation, targeting, and positioning, is also examined, highlighting Tesco's approach to customer segmentation and market positioning. Finally, the report discusses the importance of monitoring and control in the marketing plan, suggesting methods to track performance and evaluate the success of the new product launch. The references used are also included at the end of the report.

MARKETING ESSENTIALS
TASK 3

TABLE OF CONTENTS
■Marketing plan and its importance
■Goal
■Objectives
■SWOT
■PEST
■4 P's of Marketing
■Segmentation, Targetting and Positioning
■Monitoring and control
■REFERENCES

Marketing plan and its importance
■ Marketing plan can be defined as a business operation document which helps the
organization to reach their customers and advertise their products and services in order
to reach their target audience and reach their customers easily.
■ It undertakes all the campaigns in order to monitor and measure required information.
One of the greatest advantage of marketing plan is that it helps in focusing on an
organizations current resources as well as on growth of the business.
■ This plan helps in understanding all the factors that can affect the overall success of an
organization's product or services in various ways.
■ In other words it outlines the overall value proposition of the company.

CONTI..
Goal
■ To develop a marketing plan for the new product launched by Tesco and
to understand all the factors that might affect success of their new
product.
Objectives
■ To introduce new product in UK markets.
■ To increase the sale of new products.
■ To generate awareness about the new product.

CONTI..
■ SWOT Strength
• One of the top most leading retailers present in UK
• Financial condition is very strong
• Has won various awards in retail excellence, customer shopping
experience, customer services.
Weakness
• They need to continuously fight for market share with their
competitors such as Sainsbury.
• Competitive pressure leads them to lower their price due to which
their profit margin is affected.
Opportunity
• Can introduce their products and services in developing countries as
well to increase their customer base.
• Can try to expand their business in order to reach untapped countries.
• There are many other opportunities in private label market.
Threat
• Due to strong competition given be their competitors such as
Sainsbury their overall market share can reduce.
• instability and slowdown in economy can be a major threat for the
company. Not only this due to economic recession their profitability
can be reduced drastically.

CONTI..
PEST
■ Political Factor: Tesco products need to meet all the rules and regulations given by the
government in order to sell their products internationally. Any changes in laws, rules
and regulations like change in labour wages, working hours, marketing changes etc. can
prevent or stop them to distribute their products internationally.
■ Economical Factor: Tesco products distributed globally and is consumed
internationally in many countries. This has helped them to gain economic stability.
However due to slow and low economic growth is affecting their economic stability and
growth. As a result there are trying to bring innovation within their products in order to
move forwards and increase their market share.

CONTI..
■ Social Factor: They sell their products in different cultured countries and meet their
customers demand. They sell more than 30 alternate flavours as per their customers
demand. Today many consumers are switching to healthier products which as a result is
creating a need for Tesco to product healthier and socially acceptable products.
■ Technological Factor: Tesco uses the latest technology in order to product and
manufacture better and high quality products within specified time period in desired
quantity. They also use social media as a technology to connect with their consumers in
order to know their needs, desires. So that they can bring changes within themselves
and encourage sales of their products.

CONTI..
4 P's of Marketing
■ Product: The product strategy of Tesco is that it offers the wide range of products
across the world like Super market, hyper markets, convenience shop etc. Tesco sells its
products in various categories like food and beverages, clothing etc.
■ Price: Tesco has adopted second degree pricing strategy so, they charge different prices
for different product segments. It has also adopted competitive pricing within the
markets and has priced its products same as of Sainsbury.

CONTI..
■ Place: Tesco has been in the markets in more than 100 years and is operating in more
than 6,569 locations across the world. Tesco has been able to develop quality
distribution network and this wide distribution network of the company highlights the
placing strategy of marketing mix.
■ Promotion: Tesco has set bench marks for their advertising campaigns, it mainly
focuses on the aggressive marketing by using media like T.V, print media, social media,
sponsorships, etc.

CONTI..
Segmentation, Targetting and Positioning
■ STP can be defined as model which helps to analyse the product, its price and how to
communicate its benefits to customers in order to position the effectively.
■ Segmentation: Tesco has segmented its customers on the basis of following:
■ Geographic segmentation- There are various divisions created by Tesco for major regions of
world as well as heads of each division to report the organisation.
■ Place of consumption-It has segmented the market on the basis of place of consumption of it
products.

CONTI..
■ Product type-It has also segmented the market on the basis of type of product purchased
by customers
■ Targeting: Tesco targets different segments with various adds but their focus are the
people of every age group.
■ Positioning: It has been able to push their products in within the mind of every segment
of customers.

CONTI..
Monitoring and control
■ It is important for Marketing Manager to monitor and control the marketing plan, it
should track down the performance of the plan, its advancements and shortcomings.
When ever a Manager analyses that the project is deviating from the plan it should
bring in to control immediately in order to make plan effective and successful. The
performance of marketing plan can be evaluated by analysing the sales of the new
products introduced in the market.