Comparison of Marketing Mix: Tesco vs Asda

This article compares the marketing mix of Tesco and Asda, evaluates the tactics implemented by both organizations to achieve their objectives, and provides a detailed and coherent marketing plan for Tesco's new range of professional beauty products.

MARKETING ESSENTIAL

Contents
P3 Comparison between marketing mix of two organisation.............................................................3
M3 Evaluation of different tactics implement by organisation to achieve organisational objectives. 6
P4 Produce and evaluate marketing plan...........................................................................................6
M4 A detailed and coherent evidenced-based marketing plan.........................................................10
REFERENCES....................................................................................................................................11

P3 Comparison between marketing mix of two organisation
The term marketing mix refers to the set of action, activities and tactics that provides
an organisation to promote all products and services through adopting steps of marketing
mix. Usually, there are four different steps that are traditionally related with marketing mix
and adhere with aspects of product, price, place and promotion. But in the present scenario,
marketing mix also considers people, process and physical evidence. So overall there are
seven different aspects of marketing mix are utilised by organisation for promoting company
products and services (Hwang and Thomadsen, 2016). In context of Tesco management is
also operating their business at global level. Therefore, by implementing all steps of
marketing mix it is easy for management to promote company product in order to gain
competitive edge in market. Comparison between marketing mix of Tesco and Asda is
mention as follow:
Particular Tesco ASDA
Product Tesco is offering large
variety of products which
includes clothing, food,
electronics and many more
items. Along with this
product line of Tesco cater to
match with every possible
need of customers through
offering wide range of
products.
ASDA is a public limited
organisation which is based
on British origin. Along with
this ASDA maintain top
position in retail industry of
UK. Drinks, Frozen food,
bakery items and many more
are essential aspect that
support product portfolio of
ASDA.
Price Tesco attempt to maintain the
low prices of its products
without impacting on the
quality of products. It is
because there is intense
competition exists in market.
This also results due to low
price strategy of Tesco
management is obtaining top
position in Britain retail
ASDA is operating there
revenue and operations
income with 21,666 million
UK pounds by targeting all
types of customers. This
leads management to reach at
a reasonable market
destination. Further, ASDA
also charge low price for
selling its products at large

brand. level.
Place The headquarter of Tesco is
situated in Chestnut, England
from where management is
operating all of its stores for
managing its products and
services in an appropriate
manner (Balasescu, 2014).
Online and offline are two
different methods which help
Tesco to distribute its
products effectively.
ASDA is one of the largest
retailer of UK which
headquarter is situated in
Leeds, West Yorkshire.
Along with this it is also
identified by management
that through simple outlets
expansion into different
places of UK and world. It is
also easy for ASDA to target
more number of customers.
Promotion One of the major advantage
that stand Tesco different
from other supermarket chain
is its promotion techniques
and price methods. From
point view of promotional
methods Tesco is promoting
its products through social
and digital marketing
strategy which leads
organisation to obtain top
position through promoting
company products at large
level with minimum amount
of cost.
From the point of ASDA,
authorities and management
believe that aggressive
marketing policy is one of
the most effective method for
promoting company
products. Newspaper,
hoardings, billboards etc. are
some places where ASDA
promote their products.
Along with this celebrity
endorsement and promotion
of products through famous
personalities also help
organisation to develop
positive perception about
company products.
People Tesco team members and
employees are one of the
most important asset for
organisation that is
promoting company products
On the other side, ASDA
also manage all individuals
through offering better
training programs that leads
company to enhance

at different places. It refers to
gain loyalty Tesco offer
monetary benefits to
employees.
employee skill. Along with
this Seminars are also
arranged by management to
motivate workforce for retain
longer period.
Process According to the process
marketing mix of Tesco
management refer that the
main process of Tesco is to
keep all buyers or customers
happy such as by providing
speedy bill services. Along
with this by employing
competent staff it is also easy
to address all issue that
generates complexity in
implement of company
process.
Similarly, ASDA is also
operating their business at
global level. So by
implement of simple process
it is easy for management to
achieve better position in
market. Use of easy
equipment among all process
is one of the effective
methods that leads ASDA to
implement simple process in
the market.
Physical evidence From the point view of Tesco
management is not spending
unnecessary amounts on
furnishing its different stores
but management ensure that
internal environment of
Tesco must be clean and
attractive.
ASDA manage the physical
evidence of market mix
through managing all stores
in a similar way. This refers
ASDA also placed all
products through similar
shell. Example- to divide
each store that offer similar
requirements.
In the last, by compare marketing mix of both organisation it is monitored that each
organisation implement process of marketing mix with its own method. This results all task
are completed through managing each aspect according to organisation requirements.
Moreover, each aspect of marketing mix is already divided for their section or requirements
that support specific activity of market to promote company products. Therefore, Tesco
follow all seven steps or P’s of marketing for obtaining better position in market as well as in
retail industry also.

M3 Evaluation of different tactics implement by organisation to achieve organisational
objectives
With the analysis of all organisational task and objectives it is identified that
marketing mix generates positive and negative results for organisation that helps to attain
better position in market (Verma and Singh, 2017). Along with this it is also identified by
management business product and price aspects of Tesco manage advantage for organisation
to accomplish better position in market. In the last, due to challenge in place and promotion
management face complexity to work properly because competition generates challenge to
implement them in proper manner.
P4 Produce and evaluate marketing plan
Marketing plan defines as a process to organize a company's marketing goal and
objectives as well as to gather strategies or tactics to achieve them (Da Silva and Mazzon,
2016). These plan can be short-term or long-term that assist in which organization related
teams will adhere to the marketing strategy. In this report, the introduced marketing plan is of
Tesco in which organisation planning to initiate some new objectives that can assist them to
gain maximum competitive advantages from target market. The marketing plan of Tesco is
determined below:
Smart objective
 To introduce Professional range of beauty products within 1 year in order to enhance
business profitability 35% more.
STP
 Segmentation: Tesco has segmented its market on the basis of demographic factors
as their target segment is middle class, upper-middle and upper class customers who
wearing beauty as identity. On the other hand, another target segment is professional
customers and the offering goods for enhancing their service user’s look.
 Targeting: The target customer of Tesco will be mostly women but they are also
focusing on men. In order to reach differently segmented consumers, Tesco multiple
product categories by built a differentiation strategy for lower, upper middle and
upper-income class customers, most of them are working in beauty professions. Using
this brand brings a touch of class and sophistication to them.
 Positioning: Tesco has positioned itself as a global brand that focusing on
universalization strategy (Hollensen, 2019). In this context Tesco will choosing the

countries in which they can sell their goods and developing a way of implementing
them for each country, Furthermore, identifying marketing strategies for those
countries in which they existing located. In this regard Tesco preparing themselves
with systems and organizational methods to achieve their new targets easily.
SWOT analysis of Asda
 Strength: Tesco is a one of the largest supermarket chain that has a strong customer
base thus it will assist organisation to introduce their new products that can be
acceptable for customers. Furthermore, throughout its operations, Tesco has improved
the use of technology that assist them in creating greater cost-efficiencies as well as
improved service experiences.
 Weaknesses: Level of competition have led to price war that can affect negatively
upon organisation’s pricing strategy in the target market. On the other hand, new
product range of organisation will be not affordable for those who have less
disposable income.
 Opportunity: An excellence of product quality rage will assist organisation to
introduce their new products effectively in the market.
 Threat: Some economic recessions and credit crunches will threaten market share of
Tesco and affect negatively upon organisation’s sustainability options.
Ansoff Matrix
 Market penetration: This is a marketing strategy in which organisation sell their
existing products with the help of new ideas in the existing market (Perreault, 2018).
In this process, organisation requires to make timely changes in their existing product
range in order to serve effective services to existing customer base.
 Product development: This is an effective business strategy in which organisation
introduce their new product range in the existing market.
 Market development: This element stands for new market development practices in
which existing products are announced in another country and its market. In this
regard, firm needs to analyse potential market in which demand of organisational
products are high.
 Diversification: According to this strategy, organisation move into new market with
the new products or services. It assist in increase product sale with existing customer
base.

According to above analysis, it has been summarised that Tesco will going to implement
product development strategy in which they will introduce professional range of beauty
products for their existing and new customers.
Marketing Mix
7 P’s of marketing mix Asda
Product Tesco is a leading organisation that provide quality product and
services to their customer by analysing their requirement and
need. On the basis of new marketing objective, Tesco will
going to deal cosmetics, hair care, skin care and make-up,
perfume as well as sun protection professional range products.
Price The new professional beauty range product of Tesco will be
available for customer on moderate and premium prices for
middle, upper-middle and upper class customers.
Place The new product range of Tesco will going to be available for
customer on its own stores as well as on other professional
range stores at worldwide.
Promotion Tesco has a strong customer base that works for them as a key
promotional tool. Thus, the loyalty of customer will assist them
to promote their products to new customers. On the other hand,
Tesco also implement social media and paper media
promotional strategy that will help them in advertising their
new services easily.
Process The process of distributing new beauty product will be based
on online and offline technique in which customers can easily
purchase their products. Firm can also distribute their products
on professional beauty stores on which customer visits rapidly.
People Tesco pay their maximum attention to satisfy needs of their
customers. In this regard, firm hire skilled and capable
employees who provide desired services to their customers. On
the basis of new strategy of organisation, Tesco will going to
hire those who provide products with quality advices to their
customers.
Physical evidences Tesco pay their maximum attention to make a unique section in

their own stores for such beauty products. Furthermore, other
facility will also going to available for as parking, Wi-Fi and so
on.
Marketing budget
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 58000 25000 19000 30000 20500
Investment 30000 12000 10000 12000
Total 58000 55000 31000 40000 32500
Marketing
expenditures
Advertisement 20000 7000 6100 6000 6100
Sales promotion 2800 6000 3000 2000 9000
Direct marketing 6000 5500 1500 7000 1000
Total 28800 18500 10600 16000 16100
Available balance 29200 36500 20400 24000 16400
Monitoring and evaluation

In order to implement new strategy in the current business practices, Tesco requires to
implement effective monitoring and evaluation practices that will assist them to gain long
term opportunities (Wood and Jobber, 2016). Evaluation approaches for firm could be sales
analysis, efficiency ratio, market-share analysis and so on that will assist in determining how
much growth organisation have earn after introducing their new products in the market.
M4 A detailed and coherent evidenced-based marketing plan
Marketing plan is an effective business process that assist an organisation to
implement new strategies in order to attain desired growth opportunities. The marketing plan
in this report is of Tesco, in which organisation will going to introduce new range of
professional beauty products. This a product development strategy of organisation in which
they will introduce new services in existing market. All these strategies will assist them to
gain opportunity to earn desired profit with the help of new strategic directions. The
evaluation of this process will be based on sales growth, market share and profit share
analysis through which firm can compare their past and present business profitability.

REFERENCES
Books and Journals
Hwang, M. and Thomadsen, R., 2016. How point-of-sale marketing mix impacts national-
brand purchase shares. Management Science, 62(2), pp.571-590.
Balasescu, S., 2014. Contributions to the foundation of the marketing mix for retail
companies. Bulletin of the Transilvania University of Brasov. Economic Sciences.
Series V, 7(1), p.17.
Verma, Y. and Singh, M.R., 2017. Marketing mix, customer satisfaction and loyalty: an
empirical study of telecom sector in Bhutan. Indian Journal of Commerce and
Management Studies, 8(2), p.121.
Da Silva, E.C. and Mazzon, J.A., 2016. Developing social marketing plan for health
promotion. International Journal of Public Administration. 39(8). pp.577-586.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Wood, M.B. and Jobber, L., 2016. The marketing plan handbook. Pearson.