Marketing Essentials: Tesco's Marketing Plan and Strategies

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 3.............................................................................................................................................3
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

LO 3
EXECUTIVE SUMMARY
Tesco plc is a multinational retailer of general merchandise and groceries headquartered
in Hertfordshire, England and a leader of supermarket chains and grocery retailer around the
world. The marketing plan of Tesco demonstrates the strategic marketing objectives, situational
and market analysis using Pestle analysis which determined possible external factors that can
impact its marketing plan, strategies and tactics on the basis on market segmentation in context
of &Ps of marketing mix, budgeting in context of financial performance of the company and
various measurement and control methods.
OBJECTIVES
The marketing objectives of Tesco are aimed towards international expansion and
product diversification along with gathering a huge customer base and creating of brand equity
and leadership in the retail segment. The objectives can be classified as specific, measurable,
attainable, reliable and target oriented as follows:
 To boost up the market share by 25 %
 To increase the profit and revenue up to 10 % within 12 months.
 To diversify the non-food segment of product line
 To expand into other countries of Europe
SITUATIONAL ANALYSIS
The market analysis for attaining the marketing objectives has been done using PESTLE
and SWOT analysis to determine the external and internal market situation Tesco can face:
POLITICAL FACTORS
In order to expand business operations in other parts of Europe as well as increasing
revenue in the present annual year, Tesco may have to face political hurdles such as impact of
post Brexit referendum. Huge tariffs are being imposed on imported goods such as finished
products and foods and drinks. The supply chain of the supermarket has been disrupted and the

logistics infrastructure has weakened which has led to higher costs, lower quality products and
less choices for consumers (Bloom and et.al., 2019). For employment legislation government
promote to retailer in providing jobs for employee in making more opportunities with flexible,
local based jobs with high skilled. Tesco also interpret that their business will have great striking
on jobs and in different countries when they open new stores in retail aspect such as traditional
stores and other stores become more competitors in market.
ECONOMIC FACTORS
The major economic problems that Tesco can face in its marketing objectives are low
level of income, changes in demand and supply, high inflation and rising unemployment level.
All these directly and indirectly affect consumer behaviour and their response towards
advertisements. Increasing labour costs can cost millions of pounds to Tesco and expansion
issues as the company is majorly dependent on UK market.
SOCIAL FACTORS
Socio-cultural factors like underlying values, beliefs as well as changing trends,
perceptions, tastes and preferences along with dynamic lifestyle choices directly impact
consumer behaviour. There is a rise of organic products and healthy items which have to be
marketed by Tesco. Tesco has high number of loyal shoppers of Tesco can be provide with
relevant options to penetrate the market by increased discounts and loyalty cards and
memberships.
TECHNOLOGICAL FACTORS
RFID technology that has been installed in the UK stores can be used for increased
customer convenience. It is used for stock management and enhancing in-store experience.
Digital payment systems like PayQuid can be further improved and integrated. The company can
increase its digital presence and go forward with social media marketing (Aggarwal and Sharma,
2017). Tesco has important performance from advance technology which helps them in
developing Club card for their customer and also self services check outs points provided for
customer and help in company for reducing costs.