Marketing Strategies of Tesco and Walmart

The assignment analyzes the marketing strategies of Tesco and Walmart, comparing their approaches to achieving business objectives. It discusses the importance of marketing essentials and the marketing mix in business strategy development. The report presents a strategic marketing plan that tactically applies the use of 7P's to achieve overall marketing objectives for Tesco. It also examines the use of STP (segmentation, targeting, and positioning) as a marketing strategy to achieve overall marketing objectives for both companies.

Marketing
Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
P3. Comparison of different organisations apply the marketing mix to achieve business
objectives................................................................................................................................1
M3 Evaluate different tactics applied by organisations to demonstrate how business objectives
can be achieved.......................................................................................................................4
D2 Strategic marketing plan that tactically applies the use of 7P's to achieve overall marketing
objectives................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing essentials is a basic concept of marketing. It is a wide term, includes all the
steps which are related to creating, promoting and providing goods and services to the customers
(Clow and James, 2013). To understand the importance of marketing essential “Tesco plc” has
been selected. Tesco plc is a British company which deals in groceries and merchandise retailer
services. Its headquarter is in UK. In this report there is comparison of “Tesco plc and Asda
stores limited on the basis of their marketing mix.
TASK 2
P3. Comparison of different organisations apply the marketing mix to achieve business
objectives.
Marketing mix is the combination of factors which companies uses to increase the selling
of their products and services (Marketing mix 2018).
(Source: Marketing mix. 2018)
Basis TESCO PLC ASDA LIMITED
Product Tesco plc has a wide range of
products. Company produce products
according to the customer’s need and
according to different market
In comparison Asda limited provides
products of groceries and as well as
financial products. This company
provides products like fresh foods,
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segments. Products of company are
bakery products, food, beverage, toys,
pet products, baby and toddler
products etc. One best part of Tesco's
products that its products are available
online also so customers can purchase
products online.
clothing, health and beauty products.
One thing that make this company
different that it provides financial
products like credit card, travel
money, personal loans etc.
Price This company use the strategy of cost
leadership in pricing. It provides goods
and services to the customers at lower
price with maintaining quality in its
products. Company use different
policies to keep prices low like
economies of scale and best channel
for distribution of products which
result in lower cost.
They use different pricing strategies
according to the occasion like
allowing discount on price in
Christmas, new year etc. Company
try to make full use of customer’s
money by satisfying them with
products and services. They give
guarantee to their customers that if
their price is high than other
competitive companies than they will
return the amount of difference.
Place They have many stores in 11
countries. Its stores are named
differently in different places like
Tesco metro, Tesco extra, Tesco
superstores etc. All stores have
different range of products and
established at various location. Like
metros are located on those areas
whose area is 1000 square. Tesco
extras have a wide range of products
and services under one roof.
This company provides its products
and services in two ways, online and
offline. Offline distribution includes
all the stores which are located in
different places. This company have
about 525 stores all around the world.
Company provides online services on
www.asda.com, where customers can
buy products online by visiting this
website and also Asda have stores
like superclusters, supermarket and
superstores etc.
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Promotion Company uses various strategies in the
promotion of its products and services.
Although company's products have a
brand image but company is doing
continuous efforts to promote the
products and services. Company uses
advertisement through hoardings,
television ads etc. They has started
various offers like “buy one get one
free”. Company also provides various
consumer cards like Tesco club card
for the targeted customers.
They promote their products and
services by various strategies like
price reduction on occasion, various
discounting offers to regular
customers. Company is under
ownership of wall-mart that is why
customers believe that price will be
low with good quality. So they try to
keep the cost of products low so that
price can be kept low.
People In the company there are many
employees who are from different
countries. Employees are selected
through company's process of
selection. There are different culture's
people in the organisation so company
manage the cultural diversity. People
work as an unit that benefit company
more without any conflict. Employees
of company are motivated to help and
support each other. Company gives
promotional opportunities to the
employees which helps in efficiency in
work.
This company is also have lot of
employees but in comparison
company provides training to new
employees by on the job and off the
job training method. They give extra
salary to those employees who works
during 10pm to 6am and also to those
who works on holidays. This gives
motivation to the employees to work
effectively and with efficiency.
Process This company follow the process of its
operations by keeping market tasks in
the mind. Process of company is
designed in way in which possibility
They provide services to the
customers through a specific process
system. Company use self service
machines which gives products
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of errors in policies are low. Some
other factors are also included in this
like capacity of production,
accessibility etc.
directly by putting money. In addition
there are various stores which opens
for customers 24 hours.
Physical
evidence
Physical evidence means way of
layout, packaging and branding.
Tesco's different stores at different
locations are physical evidence of
brand. In addition their product's logo,
colour and labelling are also
This company divides its stores and
supermarkets on the basis of location,
size of stores and availability of
products. Company use these all as
physical strategies.
M3 Evaluate different tactics applied by organisations to demonstrate how business objectives
can be achieved.
Tactics means a plan or strategy that is used by organisation to achieve the goals and
objectives (Silver and et. Al, 2012). Main objective of Tesco is to become market leader in super
market and retail industry. Therefore, its marketing tactics are centralised around presenting new
products and services to meet specific objective of organisation. There are many tactics, which
are implemented by organisations like bargaining, pressure, advertising and sales promotion etc.
Tesco uses following tactics in its business, which are following
 Advertising – Advertising is a type of tactic, which is used by companies to promote the
products and services. such as Asda proves customer oriented home appliance products
to attain customer value and satisfaction which is prime business goal of company.
Same as, Walmart uses sustainable supplychain tactics to maintain supplies interest and
satisfaction level. As Tesco uses this tactic to promote products and services but
company is now using this method wisely, they reduced budget of advertisement. Now
company use this approach occasionally like in the time of Christmas. They uses this
strategy in a way which helps in achieving business objectives.
 Sales promotion- organisations like Lidl, Asda and Walmart uses different promotional
activities to meet their sales targets. Tesco promotes their products by using various
methods like
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*Free gifts- Company gives gifts to customers for increasing sales. They start various
offers like get one by one free.
*Club cards- Company provides club cards to those customers who are targeted
customers of the company. Club cardholder gets lot of benefits, which increase and promote
selling of company.
D2 Strategic marketing plan that tactically applies the use of 7P's to achieve overall marketing
objectives.
Tesco use STP (segmentation, targeting and pricing) as a marketing strategy to achieve
overall marketing objectives.
Segmentation- Segmentation means dividing the market according need and demand of
customers (Pike, 2015). Tesco will make strategy to achieve marketing goals. It is required to use
club cards data to identify need and demand of customers, because customers fill details during
apply for club card.
Targeting- Targeting means choosing a particular market segment and deciding products
which will be offered in that segment. Tesco will create a marketing plan to achieve marketing
goals. It is decided that a particular target market will be initiated with target oriented products
and services.
Positioning- Positioning refers to designing company's brand image in customer’s mind
(Malhotra, Birks and Wills, 2013). Tesco has to apply this strategy by keeping the price of
products low everyday because customers remember those products which are low in price with
good quality. This will help company in achieving marketing goals. A proper supply chain
management is to be introduced while making marketing plan.
CONCLUSION
From above report it can be concluded that marketing essentials and marketing mix both
are important for the company. In this report comparison of two different companies is discussed
and strategic marketing plan is prepared to achieve marketing objectives. Each company should
plan their strategies according to the marketing mix. Companies should also understand the value
of segmentation, targeting and positioning and try to distribute products in those segments which
are profitable for company. In addition, company should understand the value of different tactics
because tactics are the way to do business.
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REFERENCES
Books and journal
Blythe, J., 2012.CIM Coursebook Marketing Essentials. Routledge.
Clow, K .E. and James, K .E., 2013.Essentials of marketing research: Putting research into
practice. Sage.
Malhotra, N. K., Birks, D. F. and Wills, P., 2013 Essentials of marketing research. Pearson.
Pike, S., 2015. Destination marketing: essentials. Routledge.
Silver, L. and et. Al, 2012.The Essentials of Marketing Research: Text and Cases. Routledge.
Online
Marketing mix. 2018. [Online].
Availablethrough:<https://www.tutor2u.net/business/reference/the-extended-marketing-
mix-7ps>
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