Marketing Essentials

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
PART 2............................................................................................................................................4
a) 7P's of marketing.....................................................................................................................4
b) Strategic marketing plan of company.....................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is defined as a procedure of getting potential customers who are interested in
goods and services offered by the company. It consist of various activities such as researching,
selling, promoting as well as distributing products and services. It is important for marketing
manager and senior authorities of an organisation to focus on analysing customer requirements
and market so that they can fulfilled it and satisfy customer with their brand (Campbell, Martin
and Fabos, 2018). Marketing plays an important role in every organisation as it aid in enhancing
sales of company which has positive impact on the profits and revenue level of company. In the
present report, Tesco is chosen as a base company. It is a British multinational retail organisation
which offer quality home essentials and grocery at marketplace. The company was developed in
the year 1919 by Jack Cohen and its head office is located in United Kingdom. Tesco has around
7,000 shops worldwide which shows company has high market presence and market share as
well. The report will discuss about roles as well as responsibilities of marketing function along
with how it relate to wider context of company. In addition to this, marketing mix of respective
company with its major competitor is described in order to attain business objectives. Later, a
marketing plan is developed for the company in an appropriate manner.
PART 1
(Covered In PPT)
PART 2
a) 7P's of marketing
Marketing mix is defined as a set of actions and tactics which an organisation used for
promoting products and services at marketplace. In addition to this, marketing mix assist an
entity to gain insight about what products and service offer to the customers (Chernev, 2019).
Further, it help in effective planning, developing and implementing of marketing strategies in an
effective manner. In relation to Tesco, its major competitor is Sainsbury's, which is the second
largest supermarket chain in UK. Marketing mix consist of 7P's that is given below of Tesco and
Sainsbury's:
Marketing Mix Tesco Sainsbury's

Product It is defined as a commodity
that is offered in market by an
organisation. Tesco offer wide
range of products such as
clothing, food, financial
services, electronics and so on.
In addition to this, it offer
delivery service of grocery &
free music downloads that is
other than 40,000 or more
commodity line which Tesco
stores exhibit.
Sainsburys is dealing in wide
range of products such as
vegetables, fruits, grocery
items, dairy products, baker
products, health & beauty
products, pet care items that
can satisfy the requirements of
their large variety of
customers.
Price The company focuses on
maintaining low price of its
products as well as services
without compromising the
quality. Tesco follows low
pricing strategy that help in
attracting large number of
people and also assist in
attaining competitive
advantage at marketplace
(Eletxigerra, Barrutia and
Echebarria, 2018). In addition
to this, it has Club card system
which allow customer to
collect points for their
purchase of goods and services
that can be converted into
Sainsbury's is not having cost
leadership position as
compared to Tesco but they
have been able to satisfy their
customers according to their
prices by targetting families
shopping and household
customer. They are providing a
stiff competition by using a
competitive pricing strategy as
they are offering prices lower
as compared to other
competitors such as Morrisons.

money. It is consider as a
price-promotional strategy that
aid in developing loyal
customers.
Place Tesco's head office is located
in England and it has presence
in more than 11 congeries
globally. In addition to this,
Tesco has more than 5,000
shops worldwide that directly
state that company has high
market presence. It is analysed
that Tesco have two main
channels of distribution that is
offline and online. Moreover,
its offline business involve six
stores and have more small
stores for easier customer
accessibility. It has its own
website that involve all the
goods and services offered by
company. This assist Tesco to
capture large market and
enhance its sales and
profitability level as well.
Sainsbury's is having its
functions in London since year
1922 it has been one of the
largest grocery retailers of UK.
They have 608 supermarket
and 806 convenience shops
that is leading to a total of
1423 shops in total (Fill and
Turnbull, 2019). They are
having presence in South east
London, Guildford, Torquay,
Swindon, Redhill,
Wolverhampton etc.
Promotion One of the main benefit to
Tesco is low price that attract
large number of people. In
addition to this, the company
advertise its products through
Sainsbury is using incentive
and a database promotional
strategy. They are also using
online sources by offering
discount vouchers to their

social media that is on
YouTube, Facebook and so on
(Hanlon, 2019). This help
company to attract large
number of people and increase
their sales and profitability. In
addition to this, the company
also conduct marketing
campaign in order to aware
large number of people about
its brand. All this assist
company to sustain in market
for longer time period and
attain growth and higher
development at marketplace.
regular customers.
Physical evidence The stores of Tesco is not big
as its higher authorities does
not seem any relevancy in
spending high amount on
furbishing the stores. The
stores of Tesco are clean and
attractive wherein customers
can easily categorise and find
products as well. In addition to
this, its offers are place in such
a manner that attract customer
to purchase more than their
requirements. Further, its
website is easy as well as
simple to operate.
Sainsburys is having both
physical outlet and online
stores that is helping them in
providing a multiple options to
their customers according to
their convenience (Hanzaee,
Sadeghian and Jalalian, 2019).
Also they are offering digital
offers to ensure easy shopping
to their customers.

Process This factor of Marketing mix
in relation to Tesco's refers to
the procedure of making
customer happy by rapid
billing service along with
using of easy acquirement of
goods in its both online and
offline stores. It is analysed
that Tesco attain this by its
competent employees and
focus on resolving customer
grievances in a rapid and
timely manner.
It is analysed that company has
made online shopping easy for
its customers that is “Click and
collect” service. In addition to
this, the company has changed
its pricing as well as allocation
of service delivery slots that
assist company to increase
their number of orders and
gain loyalty of customer. It is
determine that company is
looking for the location of its
new stores in order to address
the changing requirements of
customer.
People One of the major reason of its
success is its effective and
talented employees that
perform all the activities in a
best manner. In addition to
this, it has a programmes that
is save as you earn and
colleague privilege card that
assist in gaining the loyalty of
customers (Holbrook, 2018).
Moreover, the company
emphasis on maintaining good
relationship with employees
and fulfil their requirements so
that they can work with full
potential that directly leads to
The company has a mix ofd
professionals and well-trained
experts who have the
knowledge of consumer
behaviour. In addition to this,
Sainsbury's provide training to
the new employees so that they
can give on time and quality
service to customers that
develop positive image in
mind set of customers towards
brand.

higher growth and success as
well.
b) Strategic marketing plan of company
Marketing plan is basically a blueprint of marketing activities of an organisation. In
addition to this, it consist of analysis of mission, vision, market objectives, target market of a
company that help in attaining objectives within given time period (Lu, Poon and Weng, 2018).
Executive Summary: It is a multinational retail organisation that offers high quality
grocery at marketplace. The company as more than 4800 stores globally and has presence in
more than 11 countries.The company is planning to bring a new system of online payment that is
Tesco card which allow customer to pay on a single click for the products and services they
purchase. The marketing plan of Tesco is given below:
Mission: The mission statement of company is “To develop value for customers and to
earn lifetime loyalty of customers”.
Vision: “To be the most highly valued company by serving quality products and services
to customers” is the vision statement of company.
Objectives:
 To provide rapid and quick billing service to customers that help in gaining customer
loyalty.
 To Increase the level of sales by providing quality and on-time service to customers.
 To enhance market share and performance of Tesco that can take place by offering
products at affordable price to customers.
STP strategy: It is defined as a strategy that help company to develop as well as deliver
relevant information to the potential and target audiences (Nirschl and Steinberg, 2018). It
consist of three factors that is segmentation, targeting and positioning as well. This are described
below in relation to chosen organisation:
Segmentation: It is basically categorising the whole market into small segments as per
the requirements, wants and any other criteria. In relation to Tesco, it segment market on the
basis of demographics that involve income, occupation, education, family size and so on.
Targetting: This take place after the segmentation process, herein company target their
potential customers by offering them attractive offers. In relation to Tesco, it target people who

belong from the low and middle income category and also all types of families that is nuclear &
extended families.
Positioning: It is defined as developing a positive mind set of people towards the brand.
With reference to Tesco, the company offer quality goods and service to customer at reasonable
price. In addition to this, the company ensure that the requirements of its customer is fulfilled as
it help them to gain loyalty of customer and retain them for longer time period.
SWOT analysis:
Strength weaknesses
 One of the major strength of Tesco is
its market presence as it offer products
and services in more than 12 countries.
 The company offer products at low
prices that attract large number of
people and has positive impact on sales
and profitability of Tesco.
 It is determine that company is failed
its operations in Japan and US that
impact negatively on its performance
level.
 The company follow low cost strategy
that decline the profit margin level of
Tesco.
Opportunities Threats
 Tesco has the opportunity to enter into
new markets and earn higher profits.
 In addition to this, the company can
bring new product and service in
market as it is a renowned organisation
that has high number of loyal
customers.
 One of the major threat of company is
its competitors such as Sainsbury's,
Aldi, Walmart and many more
(Perreault, 2018). It impact on the
overall performance of Tesco in a
negative manner.
 Due to Brexit, the trade deals & cost
matters have posed a threat for
respective organisation.
MARKETING BUDGET
PARTICULARS Ist Year IInd Year IIIrd Year IVth Year Vth Year

Initial amount 3000 6300 12200 14160 19970
Investment 9300 10500 23830 31630 13550
TOTAL 11300 16800 36030 45790 33520
MARKETING OUTLAY
Promotion 4746 1459 4593 1875 1211
Sales publicity 1365 800 2452 1492 1050
Direct selling 2235 1900 4651 1000 4434
TOTAL 8146 4159 11896 4467 6405
Monitoring and Controlling: It is important for the higher authorities of Tesco to check
and monitor the performance of employees with the set standards as it help in making
improvements and assist in achieving objectives within given time period.
It is analysed that developing of marketing plan will help company to bring new service
in an effective way at marketplace (Uncles, 2018). In addition to this, it also help organisation to
achieve their desired goals and marketing objectives in the given time period.
CONCLUSION
From the above study, it is determine that marketing department plays an important role
in every organisation as it help company to gain higher profits and achieve objectives within
stipulated time period. In addition to this, it is analysed that interrelationship among marketing
and other department help company to implement all the activities in a better way and improve
their market position as well. Moreover, marketing mix is consider as a tool that help company to
gain insight about its competitors strategy and also assist in targeting right market. Further,
development of strategic marketing plan assist an entity to attain organisation objectives within
stipulated time frame.

REFERENCES
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