Marketing Plan for Tesco

This marketing plan for Tesco covers various strategies and tactics to achieve business objectives. It includes components of the marketing mix, roles and responsibilities of marketing, and interrelation with other departments.

Marketing Essentials

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
P1 Various roles of marketing function.......................................................................................1
P2 Roles and responsibilities of marketing in according to your chosen company....................3
P3 Components of marketing mix in order to attain objective...................................................5
P4 Demonstrate a marketing plan for a chosen company............................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is better understood as a process of planning the conception and its execution
that provide assistance in fulfilment of task within limited time period (Abedi and Abedini,
2017). In other words, it involves interaction between buyer and seller that create exchange of
merchandise in replace of money. This report is on Tesco that is a well-established brand,
situated its head office in UK. The respective firm deal with wide range of products or services
such as clothes, food, groceries and different household appliances. This report covers several
responsibilities and the interrelation of marketing with several departments like human resource,
finance, research and development and many more. This report includes several elements of
marketing mix like promotion, product, etc. At last, this cover a marketing plan which assist firm
in achievement of task and ensure proper coordination.
P1 Various roles of marketing function
Marketing is understood as the process of acquiring and selling of merchandise that
create exchange and satisfy the taste and preferences of customer across the globe (Andaleeb,
2016). In other words, its involver interaction between two parties that is buyer and seller which
create exchange of merchandise in return for money. Each department has its own roles and
responsibilities which assist the firm in attainment of task in a short span of time. The major aim
of marketing is to understand the wants of customers so as to fulfil their requirements by
providing fruitful goods or services that gain maximum customer satisfaction. It is a broad term
that covers segmentation, targeting, positioning, brand equity and so on each has its own
objectives and requirements. With reference to Tesco, the various philosophies of marketing are
explained as follows:
Selling concept: This concept focusses on sell of more and more merchandise in the
marker which in turn generates greater revenue and help in achievement of business objectives in
a limited period. The manager of firm emphasises on providing excellent offerings which gain
large access of customers and increase the productivity.
Societal concept: This philosophy focuses on well being of society as making optimum
utilisation of resources and elimination of waste so as to provide protection towards an
environment (Armstrong and et.al., 2018). Also, making use of natural resources by firm help in
generating positive reputation and also help to achieve sustainable development in a long run.
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Production concept: In this, the producer emphasises on selling products or services in a
bulk quantity and ensure that delivery of goods is taken at proper time in appropriate place. The
manager of company makes advanced products and purchase in large quantity that minimise the
cost of production and generate greater sales within the market.
Marketing concept: this philosophy emphasises on satisfying the preferences of
customers as marketers develop product in such a manner that makes them feel delighted and
thus generates greater profits and boost the sales in a marketplace (Banerjee, 2017).
Product concept: This concept provide direction to the company that as quality is more
crucial to any organisation and price is considered as secondary. In today’s era, companies
devote most of their time in making good quality products at an affordable price which ensure
maximum satisfaction and make them habitual of using particular brand.
Responsibilities of marketing function are given beneath:
Conduct market research: The manager of Tesco would conduct extensive market
research so that it could get better and innovative ideas and also get information about the latest
trends and fashion which ensure greater satisfaction of customer at a global level (Rowley,
2016).
Brand management: this is one of the important functions of marketing as it contains
logo, symbol, coloured image which help in easy identification of product. The manager of
Tesco provides quality specifications which ensure maximum customer satisfaction and this
switching cost is low.
Identify the nature of competitors: It is essential for the marketing manager of respective
firm to identify the nature of competitors so that it could prepare an appropriate strategy and
planning that help in decision regarding proper set of action that help in achievement of business
goals in a short span of time.
Product design as well as its development: the manager of Tesco would make an
appropriate designed product with beat packaging that is made of carboard box that gain
maximum number of customers from different parts of the country. The product characteristics
such as durability, reliability and many more that are vary in nature.
Responsibility of marketing in accordance to marketing environment:
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Marketing department play a different role in a workplace as each has to perform
different duties so that goal is accomplished in a limited time period (Calinao and Lin, 2018). In
the context of Tesco, several roles and responsibilities are given beneath:
Towards customers: The marketing manager of Tesco ensure quality specifications and
provide good quality of merchandise at an affordable price that create customer loyalty and aids
in attainment of business goals. This increase the sales and also accelerates the profitability in a
marketplace.
Towards government: The manager of Tesco presents information that depicts a true
picture and also it deposits the tax in a proper time period to government which generate a
positive image and also ensure greater transparency and accountability across the globe.
Towards suppliers: The manager of respective create mutual relation with suppliers so
that they could provide product of excellent quality and at any time in according to requirements.
Also, it emphasises on generating efficient distribution of network and assist in attainment of
goal in a desired time period.
Towards competitors: The manager of Tesco prepares an appropriate strategy and
planning by providing excelling offerings of reasonable cost which provide assistance to beat
competitors and enable customer to make habitual of buying offerings from a respective firm.
This accelerates the sales and maximise the revenue within the retailing sector.
P2 Roles and responsibilities of marketing in according to your chosen company
There are different department in a workplace like marketing, information technology
etc. as they are assigned with different purposes which in turn work towards the accomplishment
of business objectives (Chuang and Hu, 2017). The manager of Tesco divides the work among
the subordinates in according to their specialisation which ensure greater productivity and
efficiency in a workplace and also aids in avoiding confusion and misunderstanding among
them. In the context of Tesco, the interrelation of marketing with other departments are
prescribed as below:
Marketing and human resources: The major function of human resources is crucial in a
organisation which includes recruitment and selection, performance management, training and
development and many more which aids in achieving objectives in a limited time period. The
manager of Tesco combines marketing department with human resource department so as to
bring smooth flow of activities as the former provide information regarding the vacancy and job
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position to latter so that a potential candidate could be chosen which increase the efficiency and
effectiveness in a fair and efficient manner.
Marketing and finance: the main function of marketing is to provide excellent product
and services so as to meet the expectations of buyers at a global level. In the context of Tesco,
the manager integrates both department as finance is most important part of business entity while
marketing is considered as the backbone in an organisation. The role of finance manager
involves preparation of financial statements, budget as well as cash flows which determine the
financial position of company so the manager of firm present these in a proper manner that
depict a true picture of a company and ensure transparency and accountability. The manager of
Tesco integrates these departments which help in preparation of budget and also aids in making
decision regarding investments on promotional activities and marketing campaign.
Marketing and production department: The role of production management is to
supply the product at proper time in an appropriate place and also help in attainment of a task in
proper time period (Crutchfield, 2017). Also, this is a wider term that covers warehousing,
packaging, labelling, grading and standardisation of merchandise which determine the quality of
product. The manager of Tesco integrates operation department with marketing department so
that that timely demand and supply of product can be met and also provide a way to gain
sustainable competitive advantage as the volume of order could be met in accordance with the
time schedule that is required for delivery. Also, the marketing manager promote the interest of
health and safety of workers and remove defects and errors by continuous checking the quality of
products as it ensures greater quality specifications.
Marketing and information technology: During an era of online platforms, digital
economy has contribute an important place which ensure fast recording of transaction and
simplify the overall working procedures. The manager of Tesco makes use of new and
innovative technology in their manufacturing operations that help in conducting transaction in an
efficient manner. The marketing department combines with information technology which help
in meeting the targets within limited period of time which in turn increase productivity and
effectiveness.
Marketing and research and development: The role of research and development is to
determine the nature of market, identify the competitors, latest trends and lifestyles of consumers
which provide information to the marketer regarding taste and preferences, demand and supply
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and many more so that they could prepare an appropriate strategy which assist the manager of
Tesco to boost the sales and profitability within retail sector (Paesbrugghe, and et.al., 2017). this
generate brand image at an international level and generate customer loyalty.
P3 Components of marketing mix in order to attain objective
Marketing mix is a significant part of marketing which includes several components like
merchandise, money, distribution and promotion as each has different aspect in case of
marketing (Hisrich, and Ramadani, 2017). The components of marketing mix are related to one
another and the senior authority of a firm resist to change in every aspect of business which help
in achievement of objectives successfully. The seven elements of marketing mix are presented as
follows in reference to both firms:
Elements Definition Tesco Aldi
Product It refers to physical
merchandise or
service that create
exchange between
two parties in return
for money.
Tesco provide wide
offerings like food
articles and home
essentials, insurances
as well as other
financial services
across the globe.
Aldi provide giant
varieties of food
products and
beverages such as
fruits, vegetables and
groceries at an
affordable price to
giant group of buyers
at a global level.
Price It is similar to cost
which is incurred by
buyer so as to acquire
merchandise or
services.
The respective firm
follow the low-price
strategy so as to
maintain large base of
customers and provide
a way to gain
competitive advantage
across the globe.
The respective firm
follows market
penetration strategy
which emphasise
customers to purchase
product at low cost
and increase the large
market share.
Place This involve the
distribution of product
from one place to
The stores of Tesco
are spread at an
international level
The respective firm
has more than 80000
stores that are
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another in the form of
finished goods
through several
intermediaries like
producers,
wholesalers, retailers
and consumers.
which deal with
several stores which
deal related to
financial services like
Tesco bank and many
more that provide a
best experience to
their users.
currently operating in
18 countries and also
the marketing
manager purchase in
bulk from suppliers so
as to decease the cost
of production.
Promotion This involve several
tactics and marketing
campaigns which
persuade customers to
buy the product and
ensure maximum
satisfaction.
The respective firm
focus on promotional
campaigns and
advertising on online
platforms like
Facebook, Instagram
and many more that
save cost and increase
the profit margin.
The concerned firm
spent negligent
amount of money on
promotional activities
so as to save cost. The
firm provide several
offers and use print
media and electronic
media that influence
customers to buy a
product.
People This involve the
subordinates who are
working in an
organisation as they
have several roles like
production
department,
marketing,
information
technology etc.
The employees of
respective firm are
highly competitive in
nature and also, they
are provided with
compensation benefits
which ensure greater
success in future.
The subordinates of
Aldi are highly
trained that provide a
greater growth and
success of the
company and help in
increasing
productivity and
efficiency within
retailing industry.
Physical evidence This involve the
physical appearance
The stores of Tesco
are proper cleaned
Aldi is a well known
brand provide
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of product in the form
of visual
merchandising, layout
design and so on.
and hygienic and has
attractive packaging
that grab the attention
of customers from
different locations.
simplest and
standardised products
in order to ensure
greater customer
satisfaction across the
globe.
Process This involve the
systematic process
and series of activities
that bring smooth
flow of activities of
business and ensure
greater transparency
and accountability.
The major emphasise
of Tesco is to deliver
excellent and fast
services by speeding
the procedure of
billing and maintain
proper systematic
procedure by
assigning the task
which ensure
completion of task
within limited time
period.
The layout in case of
Aldi is sheer layout
that provide easy
accessibility of
products among
customers as they
could find products
easily and thus saves
time.
P4 Demonstrate a marketing plan for a chosen company
Marketing plan is a written document which assist in making planning in advance for
achievement of predetermined goal in a respective time period (Kotler, Bowen, Makens, and
Baloglu, 2017). In other words, it provides direction of action by evaluating the outcomes which
ensure maximum exposure of customers. The marketing plan of Tesco is detailed below:
Overview of an organisation: Tesco is popular brand in UK which provide greater
varieties of offerings like groceries, food, home essentials as well as other financial services such
as insurances and many more. This is one the largest retailing store in UK with an around
4,50,000 employees across worldwide (Lamb, Hair and McDaniel, 2011). The respective firm
provide excellent offering in order to grab the attention of buyer from different locations.
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Executive summary: The respective firm has make an appropriate strategy to invent a
chemical free soap which is going to be chemical free at an affordable cost in order to gain large
access of customers. This also gain competitive edge as well as boost the sale and increase the
revenue within retailing sector.
Vision: The vision of Tesco is to be loyal towards the customers, employees which
increase the productivity and efficiency in the marketplace. This provide an opportunity to the
respective firm to enjoy greater access of capital and boost the effectiveness of company.
Mission: This is described as that the concerned firm would render creative and advanced
merchandise at a reasonable cost so as to achieve maximum exposure and also help in generating
positive reputation across the globe.
SMART objectives
 To accelerates the sales by 8% within one year as it maximises more revenue within the
retailing industry.
 To advanced great communication skills that assist the firm in making proper planning
and also eliminates misunderstanding as there is proper clarity among the subordinates.
SWOT analysis: This framework determine both favourable and unfavourable position of a
firm by eliminating external threats and grab each and every opportunity in a marketplace. With
reference to Tesco, the SWOT matrix is given below:
Strength Weakness
 Tesco is renowned brand that is
planning to launch an organic soap that
would gain maximum number of
customers easily due to its strong
presence of brand.
 Its mutual relation with suppliers and
strong distribution of network would
maximise the productivity and increase
the sales in case of retailing sector.
 There is some specific market in
various region that are underperformed
as it minimises the sales operations and
decline the overall performance.
 Tesco would launch product at a low
cost which reduce the overall profit
margin and hamper the growth of a
firm.
Opportunities Threats
 The concerned firm focus its
advertising more on social platforms
 There are large number of players
available in a market which create a
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such as Facebook, Instagram and other
respective websites that increase the
large base of customers from several
locations.
 Its fast and efficient services in delivery
of newly launched product and also
customers are very conscious of health
products as they prefer chemical free
soap that is likely to contribute a
significant position at a global level.
major threat for a firm like Tesco.
 Additionally, it could emphasise on
reducing the prices due to cut throat
competition which decline the
profitability of a firm.
STP Approaches: It involve three crucial aspects in marketing a physical item in a
market which takes place in an organisation. In the context of Tesco, the same is presented
below:
Segmentation This involve of dividing the market on the
basis of similar characteristics that includes
several segments such as geographical,
behavioural and psychographic segmentation
(Larson and Draper, 2015). The manager of
Tesco understands the taste and preferences of
customer as they are more conscious of beauty
product so it plan to launch organic soap that
would capture the large share of market.
Targeting The senior authority of Tesco target to all age
group of individuals as it is chemical free
product for men, women and children. this
increase the sale and enhance the productivity
in a marketplace.
Positioning Tesco is one of the popular brand that has
strong brand image in different countries that
would help to launch new product like soap so
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as to contribute an important position at a
global level (Mishra and Modi,2016).
Budget of a company:
Particulars 1st year 2nd year 3rd year 4th year
Initial
money
10000 5000 5000 5000
Investment 10000 10000 7000 5000
Total 20000 15000 12000 10000
Marketing
outlay
15000 2000 3000 5000
Promotion 4000 1000 5000 2000
Sales
publicity
2000 2000 1000 1000
Direct
selling
4000 3000 2000 1000
Total 25000 8000 11000 9000
The above budget depicts that total capital outlay incurred by a firm in first year is
20000£ as it is reduced till fourth year that is 10000£. The total promotional and marketing
campaigns is increased in first year that is 25000£ through several means such as publicity, direct
selling and marketing outlay but it is decreased in fourth year that is 9000£.
Evaluation: The marketing department would conduct sales analysis in this aspect and
prepare an appropriate plan so that it could generate maximum revenue. This analysis is very
important as it provide assistance in determining the needs of customers and provide an
opportunity so as to check the current market trends while launching a new product in a
marketplace.
Sales analysis help the firm in determining the total sales and profitability of a company
and its interpretation would assist the firm in comparing the performance of business against
standards that provide a proper accountability in a corporation such as Tesco.
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Figure 1 Sales analysis
Tesco is well established retailing brand in United Kingdom that generates greater
revenue approximately 66% and employs 5,20,000 staff has around 3 million customers around
the globe. Also, There are several competitors such as Sainsbury, Morrisons and ASDA which
account for market share such as 16.3% for Sainsbury and 12% in case of Morrisons and 16% for
ASDA while Tesco cover the maximum share of market that is around 30% which is greater than
its rivalries.
Profitability ratio determine the ability of Tesco to generate return on the basis of
financial performance which have a great impact on overall performance. A greater return on
investment determine the ability of company to get good return as it generates positive reputation
of a company and help in gaining rivalry edge over a marketplace. Currently the ratio is between
10% to 14% which depict that it has excellent management that provide an enormous growth
towards the company.
CONCLUSION
From the above information, it can be comprehended that marketing is a crucial element as it
involves in daily activities of a firm and also assist the firm in accomplishment of objectives.
Various roles and responsibilities such as research of marketing, design of product and its
development is included in report. Also, the relationship between marketing and other
departments is also covered as it consists of marketing mix element which are dependent on each
other. At last. marketing plan is also included in this report that provide a greater exposure across
the globe.
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REFERENCES
Books and Journals
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