Marketing Essentials: Tesco's Marketing Functions and Strategies

This report explores the marketing essentials and strategies used by Tesco, a leading British multinational retail superstore. It covers the roles and responsibilities of marketing functions, compares marketing mix elements with other organizations, and develops a basic marketing plan for a new product offering. The report also includes a situational analysis, objectives, strategies, and an action plan.

Marketing Essentials

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
COVERED IN PPT.................................................................................................................................3
LO2.............................................................................................................................................................3
P3 Compare ways in which different organization apply marketing mix to the marketing planning
process.....................................................................................................................................................3
LO3.............................................................................................................................................................6
P4 Produce and evaluate a basic marketing plan.....................................................................................6
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
Marketing essentials refers to the process of identifying the goods and services that a
company need to grow their profits and growth within a competitive market place. Marketing is
designing to promote and sell the product offering involving market research and advertising of
offered goods and services so that they attracts large number of customer base and earns a high
revenues. This report ois based on the Tesco that is one of the largest British multinational retail
superstore in UK, headquartered in Hertfordshire, England. It includes the various roles and
responsibilities that is needed to perform a marketing functions. It also includes the current and
future trends of marketing that is helpful in earning higher profits. It also involves the roles and
responsibilities to other functional departments and their relation with marketing function this
helps in managing the work and also longer sustainability in the market place. This report also
includes the comparison of marketing elements to understand the competitive strategy. At last it
develops the marketing plan for a newly developed product offering of Tesco.
LO1
COVERED IN PPT
LO2
P3 Compare ways in which different organization apply marketing mix to the marketing
planning process
Marketing mix – It refers to the combination of varieties of elements related to the marketing
i.e. product, price, place, promotion, people, process and physical evidence. It integrated all the
factors that is helpful in satisfying the customer demand, attracting the large number of people,
gaining the high profits and enhancing the brand image. In this marketing manager of Tesco can
developed a table that shows the comparative study related to marketing mix with other firm in
the same industry with Tesco. It can be shown below(Pike, 2015).
Basis Tesco Sainsbury’s
Product In this firm offers a variety of
products and they especially
Sainsbury’s is one of the
largest superstore in UK that

deals in the food and groceries
products including home
electrical, baby products,
technology and gaming,
health, beauty products,
accessories, books and
clothing.
sales variety of products to
their customers like fruits,
dairy products, health, beauty,
baby products, pet care,
households products.
Price It is the largest superstore in
the UK to attracts the large
customer base they adopts the
cost leadership and
competitive pricing strategy
and its pricing strategy is
depends on its massage “
Every Little Helps”.
In this Sainsbury use the
competitive based pricing to
target the customers and retain
them for a longer time. To
positions their product they
use price discrimination
policy.
Place It refers to the location where
the customer can buy the
products very easily and this
Tesco has 7817 stores in all
over the world from where
consumers can buy the
products. it presence also
shows online where large
number of shop their products.
Sainsbury’s is the UK
superstore that has around 700
supermarkets and 1000 around
connivance shops and their
dominant market are Swindon,
Torquay, South east London,
Redchill etc.
Promotion Tesco is the strong brand
image to maintain the image
of the company they use social
media, television and radio so
that number of people is
attracted. It also includes the
Face Book, You-tube,
Sainsbury’s use number of
advertising media to promote
their products offerings it
includes social media that is a
cheaper source of advertising
at the same time attracting
large customer base.

Snapchat etc. to promote their
goods and services.
People In Tesco, there are many
employees who research the
market and work with the
supplier’s team to get the raw
material according to the
market and customer needs.
Because of this firm appoints
the expert to research the
whole market(Puddle, 2015).
In this Sainsbury has number
of sales people who can sales
their product to the customers
for this company can provide
the proper training and
development program to train
their workers so that they
gives the effective results to
the company.
Process Tesco is using online service
in which customers can buy
the products and pay by using
the online mode. This retain
and attracts the new customers
and at this time company
ensure that the goods are
available when needed.
In this Sainsbury can using
feedback program to
understand the demand of the
customers regarding the
products and services and this
can be done on their official
website that is installed in the
store and every customers go
through it to give their
reviews.
Physical evidence In this Physical evidence
Tesco use the distinct color
and packaging that is differ
from their competitors so that
customers can easily identified
the organisation goods and
they earns a high profits.
In this Sainsbury’s use their
website that is user and
environment friendly and
allows the customers to see
their outlets by seeing the
quality pictures and get
attracted towards this.

LO3
P4 Produce and evaluate a basic marketing plan
Marketing plan – It is a comprehensive document that gives the structure relating to promoting
and marketing the efforts in the coming year. It involves objectives, company overview,
situational analysis, marketing mix and evaluation of plan. In context of Tesco it can be
described below (Rowley, 2016).
Overview of company
Tesco is one of the British multinational groceries superstore in the UK that is
headquarter in Hertfordshire, England and founded in 1919. It deals in varieties of products like
Books, clothing, furniture, toys, internet services, food and telecoms. It has around 7000 stores in
all over the world. Now company is planning to invest in organic food because people in UK are
highly conscious about their health and due to this they invest their money in organic foods and
drinks so they attracts high customers and enhance their returns(Purvis, 2016).
Situational analysis
SWOT ANALYSIS
Strength Weakness
It is the biggest superstore in the UK and
contains high sales and profits and leads the
large market share. It deals in variety of
product range that attracts many peoples. It
gives the favorable response from the customer
side about their products(Gregory, 2015).
The major weakness that a Tesco face is fraud
trial and accounting scandal that misrepresent
the profits and loss due to this market image is
also down.
Opportunities Threats
The major opportunity is that they research the
market in an appropriate manner and also
provide online shopping facility to the
customers. it is a good opportunity to expand
their market with an innovative product. this
Brexit in the country is the major threat that is
face by the Tesco and due to this they decrease
their global presence and high the cost of their
products.

will impact in an positive manner on their new
product.
Objectives
The main objective of the Tesco is that provides the services and products to the
customers through online source and increases the sales by 20% and profits by 15%. The
essential purpose of the Tesco is to create a value to the customers so that they earn a lifetime
loyalty of the company. to achieve the goals company need 6 months to enhance their profits and
growth(Baker and Magnini, 2016).
Strategies
Segmenting – In this manager of Tesco can segment their customers on the basis of their
age, sex, gender and their spending power. These segments help in promoting the products and
capture the large customer’s base(Kreutzer, 2015).
Targeting - In this Tesco is targeting the number of customers who are very much
conscious about their health and life and they only prefer organic products. It is done after the
proper research and after that they expand their market the different locations where are people
are conscious about the health.
Positioning – Tesco is one of the multinational superstore in the UK and contains a good
brand image and market value for their service and product that offers. In this they maintain their
image in the eye of the customers and generate more revenues and profits(Piñeiro-Otero and
Martínez-Rolán, 2016).
Marketing mix
Product – In this firm wants to plan the organic foods and drinks and their presence in
offline and online stores to save the health of the customers with no more added colors and
preservatives.
Price – They set the high price for their organic products as they are very healthy and
every customer are attracted towards it. And in this people are ready to spend high cost and buy a

organic products this will create a great experience in the people life(Rancati, Gordini and
Capatina, 2016).
Place - the place of the business is the England in this people are more aware about their
health and it is easy to attract the large customer base.
Promotion – In this they could choose the social media as people are more addicted of
using the social media such as You-tube, Faceboof etc. This will helps in attracting the large
number of customers and earns high profits.
People- In this Tesco provide the proper training to their marketing and sales department
so that they can perform tier work in an effective manner and gives the effective results to the
company.
Process – In this company can provide the online feedback option so that customers tell
their reviews by using official website this will helps in retaining the customers for a long period
of time.
Physical evidence - In this they differentiate their packaging from their competitors so
that people can easily identify the products of Tesco and buy them.
Action plan
Budget allocation- In this Tesco manager can make a estimated budget so it is easy to evaluate
the plan and their success level. This shows how much they spend on training, recruiting,
installing the system, promoting the goods etc. all these can be shown in the below table.
Particulars Amount (£)
Marketing 20000
Promotional activity 30000
Software installation 10000
Print media 10000
New hiring 50000

Training and development 10000
Total 110000
Monitoring and control
It is the last step where Tesco use the key performance plan so that they evaluate the
performance very easily and set the benchmark to make marketing standards to monitor the
product reviews from the customer side. So that they can make changes if possible and for future
is very helpful(Akbar, Omar and Wadood, 2017).
CONCLUSION
By using above research data it is to be concluded that marketing essential is an
important term to identify the market in which company can promote and sell their goods and
services and earns a high amount of profits. The main aim of this project is to fulfill the
customer’s needs and wants and according to that provide the goods and services so that firm
will take advantage of earning profits. In this manger of the company can interrelate the various
departments’ functions to the marketing functions and solve the problem and issues to the
customers so that they will be satisfied to the organization and its products. It can alos present
the roles and responsibilities of the marketing function to enhance the knowledge about the
market and its demands. Further it shows the comparison with other firms related to marketing
elements to know the competitive strategy and at last make a business plan to launch a new
products as per the customer demand and grow their market share of Tesco(Stephens, 2016).

REFERENCES
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