Marketing Management Solved Assignment

MARKETING MANAGEMENT

Table of Contents
Executive summary..........................................................................................................................1
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................2
1 Background statement of industry in the context of market positioning and present unique
selling propositions ....................................................................................................................2
2 Marketing audit .......................................................................................................................5
3 Competitor analysis .................................................................................................................7
4 Evaluating marketing mix to attain gaps between marketing strategy and external
environment.................................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

Executive summary
In the present report, Tesco company has been selected on which marketing management
considered. With this regard, analysis of the business develop through focus on the resource
based activities and tasks. Apart from this, it also considers analysis of major competitors which
create impact on the chosen enterprise. Hence, fluctuation in the enterprise consider with focuses
on rapidly development which depends on the investors perception and outcomes.
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INTRODUCTION
Marketing management consider important role in the business to set activities and tasks
in systematic manner. In this regard, several activities has been determines with resources which
develop and implement the best possible strategy (Zakaria, Rahman and Osman, 2014). In this
regard, organisation get directing for particular goals and activities that help to perform different
activities and tasks in significant manner. Moreover, planning of new products and services has
been developed to set long term strategy with different operations and functions. Present report
based on Tesco which is retail sector business and develop their activities to attain desired
results. Beside this, the company face tough competition in the market that create impact to
launch new products and services. For gaining insight information of present report, it covers
background statement of the industry in context to make market position and present unique
selling propositions. Furthermore, it include market audit that assists to develop systematic and
effective functioning to maintain effectiveness.
MAIN BODY
1 Background statement of industry in the context of market positioning and present unique
selling propositions
BACKGROUND STATEMENT
Case study is based on Tesco organisation. This is a global grocery retailer which is
situated in UK. It is world's number third largest retailer according to revenues and the second
largest according to the profit margin. There are various branches of Tesco which are expanded
in 14 countries across Europe and north America (Zakaria, Rahman and Osman, 2014). It is
generally specialized in food and beverages but there are different diversifications such as
clothing, health care, music downloads and electronics. It also provides shopping from home as
well as online financial services and telecommunications. Its profile can be understood by
following table :
COMPANY PROFILE
Forms It is a public Ltd. industry
Commercial enterprise retailing
Listed as LSE : Tesco
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founded In 1920
founders Jack cohen
headquarter Hertfordshire U.K.
Location number 5380
Primal people David Reid
Philip Clarke
Net income 2.67 billion
Creations Consumer products, telecoms, groceries and
financial services
Operating income 3.81 billion
Workers 472000
Website Tesco. com
MISSION
The mission of a company is to create more values for the people who are using their
products and to gain their loyalty for lifetime.
VISION
Vision is to be most highly valued in the view of customers whom they serve products
and services, communities in which they trade, committed staff and shareholders for growth of
the industry and winning locally as well as globally and applying skills internationally.
OTHER ENTERPRISES
 Tesco extra
 Tesco metro
 Tesco home plus
 Tesco superstores
 Tesco one stop
Swot analysis of the company :
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 STRENGTH : this is one of the largest supermarket chain and the brand name is
strongest with financial power. This is third largest retailer and second largest profit
gainer across the world. The structure of this company is expanded across 13 countries.
Tesco is using technological advancement in marketing, promoting and distributing
(Çifci, Ekinci and Siala, 2016).
 WEAKNESSES : as we all know that the structure of this company is very broad and
expanded in different countries so it has to be faced more marketing complexities and
issues. Employees of this industry do not have knowledge of insurance market and
communication skills. It basically based and dependents on only U.K. Markets. The
transportation cost is high as well because of the expanded.
 OPPORTUNITIES : there is higher opportunity to open new stores and enters in new
markets of ASIA. It can alliance with other companies for selling and marketing of their
goods and services. Tesco can increase its potential customers by using more technical
advancement.
 THREATS : the main competitors of this company are WAL-MART AND
CARREFOUR which gives tough competition to this company. This is the most threats
factors to Tesco organisation. Other aspects such as fluctuation in tax rates, increasing
raw material cost and creations by other market are also threats for this company.
MARKETING POSITION OF Tesco LTD.
To understand the position of this business in the grocery industry is very complex due to
wide structure across the world. The company is foremost in buying and selling process. The
focus of this company is to invest in those factors which are matters for the people. Present chief
executive contribute to maintain the position of this industry and this is the cause that is why it
has spent 13 years in the competitive market (Çifci, Ekinci and Siala, 2016). Position can be
understand by analysed the company in the term of different factors which influenced the process
and strategy of this company such as environmental, political, social and technical factors. These
all factors can be evaluated by PEST model.
ENVIRONMENTAL ANALYSIS :
The plan of action of Tesco should be oriented at exploiting the environmental
opportunities and to block environmental threats in a way that is pursuant with the internal
capabilities. The environmental synthesis of Tesco will assist one realize what is happening both
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at the internal and external of the company and to increase the chances that the structural plan of
actions will suitably indicate the environment.
POLITICAL ANALYSIS :
There are different factors regarding to politics which affect the business in strong
manner such as increase and decrease in tax, education law, environmental law, trade control,
employment law, discrimination law, health and safety law, regulation and deregulation,
intellectual property law, consumer protection, data protection law and tariffs. But the main 4
effects of political factors are the impact on economy, political stability, changes in regulations
and mitigation of risk. These all factors are necessary to be analysed because these affect the
appeal of a particular local market.
ECONOMIC ANALYSIS :
It includes different factors such as interest rates, inflation, recession, taxes and exchange
rates. Recession is the factor which affected a lot of sectors globally. Tesco overcome the
negative impacts of economic factors by analysed all the factors of economic. After analysis, it
improves their strategy by modify the prices of their products and services suitable to every
classes without alteration in the quality of a product. Inflation is another substantial factor that
could affect the market of grocery by leading changes in the purchasing power and behaviours
of customers (Fernie and Sparks, 2014).
SOCIAL ANALYSIS :
This analysis is important because the human beings are the most important factor for any
organisation. They deal with customers and operate in the society. So, these factors affect the
business in strong manner. Tesco consider the preferences and requirements of the customer by
giving them better quality and services. The factors included such as population inhabitants and
living standard.
TECHNOLOGICAL ANALYSIS
This factor contributes in the success of the company. It helps by reading and knowing
the importance of information technology. IT has contributed toward the effective management
of inventory logistics and by decreasing the cost down. It includes different factors such as
online operations, supply chain management online and so on (Çifci, Ekinci and Siala, 2016).
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At the last, it can be resulted that Tesco company analysed all these factors to maintain its
position in the market. This company successfully analysed factors and gaining higher rate of
profitability margin in the competitive market.
2 Marketing audit
Marketing Audit is important element that assists to determine feasibility and ascertain
effective results in the business. Following are certain elements has been considered in marketing
audit: Introduction to Tesco: Tesco is one of the famous brand of retail business in UK. They
consider important role in the market to produce qualitative results. In addition to this,
they are also focuses on Metro and Express so that sales and nourishment of goods
introduced in more than 40000 supermarkets. The company deals in clothing and other
kind of non food lines (Zakaria, Rahman and Osman, 2014). Retailing services in the UK
encompasses with investment and effective functioning. The company produce their
operations and functions in different areas of the world such as Europe, Ireland, Poland,
etc. Hence, it is international retailer which produce to make effective functioning in the
company. Although, in the UK the company consider international grocery and general
merchandising chain which employing for 440000 staff members in all over the world. Discussion to Tesco brand and segmentation: The chosen company selling their
functions and operations in more areas of the world. The company also using different
brands factors which assists to maintain its market position which give organisational
edge. With the help of different categories of choice of customers in the segment
(Donnelly, Simmons and Fearne, 2015). They also create separate brand which enable to
make first choice in the segment. The company selling around 19% the finest food in the
market. They are mainly considered their segmentation with healthy and cater to
customers who are healthy conscious. The company also selling organic and healthy food
products so that they can deal with the effective results in the country. There is one
another segment which constitute and termed to deal with kids and play important role in
the company. Hence, price sensitive customers easily meet with needs of such customers
(Beitelspacher and Rodgers, 2018). SWOT analysis: The company has strength that is maximum number of customers
attracted towards the products and services. The company deal with innovative activities
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that help to maintain more significant results in the business. Furthermore, high
competition is one of the major threat to Tesco which create negative impact on business.
Employees of the company has weaknesses that is lack of training which impact
negatively on business outcomes and results. The chosen business has opportunities to
increase their products and services with diversify enterprise in new areas (DaSilva and
Trkman, 2014).
 Sources of data: In respect to carry marketing audit in Tesco, data has been gathered
from primary and secondary sources. In this regard, different books, journals, magazines,
publications, etc. tools has been assessed which assists to focus on desired results and
outcomes in systematic manner at workplace. On the basis of assessment, it has been seen
that company has effective promotional tools that assists to capture large areas of the
market (Zakaria, Rahman and Osman, 2014). It is the best way to focus on increasing
revenue and profitability as well. As results, effectiveness also developed with different
advantages in the world.
3 Competitor analysis
Tesco is one of the largest UK retailer who compete with different kinds of supermarket
such as Asda, Sainsbury, Morrison, etc. The chosen business compete with convenience stores
which assists to gain popularity with consumer taste and shift with more trips. Tesco consider as
the market leader among all the businesses. Its price reflect that how it influenced in the whole
grocery market. The company consider market leader position from last 25 years (Laudon and
Laudon, 2016). Hence, it taken 28% share of the whole market. It also delivers different grocery
services in respect to reach with different demand which includes such as convenience stores,
supermarket, superstores, etc. There are mainly 9 competitors exist for the chosen business that
are explained under here: Sainsbury: This enterprise consider their own operations in context of retail sector. It is
2nd largest retail sector business in UK. This company constantly struggle with Asda and
behind Tesco. It is known as the experimentation with effective layouts and being
customer friendly to charge premium price (Çifci, Ekinci and Siala, 2016). Sainsbury
mainly consider operations with online booming so that online selling in the market
continually developed.
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 Asda: Asda also consider their operations as third largest retailer in the UK. This
company has around 15.7% market share in 2017. The company has subsidiary and they
use penetration pricing to deal with huge number of people (Abosag, Baker and Zheng,
2017). The company increase their revenue through increase more number of stores in the
world so that it help to develop more significant advantages in the world. Morrison: Morrison is the highest Tesco competitor which take around 10% of market
share. They tie up with maximum farmers and grocery suppliers so that cost of
distribution reduced easily. In addition to this, they can also provide products and
services qualitative to maintain customer loyalty (So, King and Wang, 2016). As results,
cost will be saving in systematic manner. The Cooperative: The Cooperative business consider different kinds of operations and
functions in food and grocery market which consider as the Tesco competitor. This
enterprise consider their operations and functions in different perspective of segments
that help to attain more desired results and outcomes in the market. Therefore, they
consider operations in Electrical retail, financial retail, food retail, etc. (Verhoef, Kannan
and Inman, 2015). Furthermore, they consider the largest division in the cooperative
group so that many convenience stores and mid size supermarket develop in the
supermarket. This enterprise is not direct competitor of Tesco because they have not
profited focus rather than cooperation focus. Aldi: Aldi is one of the major retail enterprise consider operations as competitor in the
UK. It is Germany oriented retail enterprise that determines massive presence in more
than 10000 stores in all over the 18 nations. It is different from the other traditional retail
companies. Traditional retail companies focus on maintain their effectiveness (Baek and
Wang, 2018). Therefore, Aldi consider their focus on huge range of private label brand.
They keep low cost for staff training and recruitment so that it is one of the major
competitor factor in the UK. Waitrose: This enterprise consider 6th highest position in term of retail business. In this
regard, they consider royal warrant which help to bring effective results in the company.
It is reputable company that supply different kinds of products and services in the
country. They possess premium brand image so that price of the company is competitive.
The company has effective UK retail and grocery products to produce effective
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consideration in the offline stores (Yu, Ramanathan and Nath, 2014). Online stores work
tandem with the order so that produce delivery consider important role in the successful
results. Waitrose consider operations and functions with innovative ideas so that brand
image of the company increases systematic work performances in the market. Lidl: Lidl is similar to Aldi which consider and originate functions with similar content.
There are major features determines with different brand that are sold in the market. Aldi
mainly sells private label brand which sourced in the different nations. It controls over
the sourcing from local to manufacturers (Hair Jr, Wolfinbarger and Page, 2015). Hence,
they attract customers with low price consideration. The company has around 4.5%
market share in UK which ranked 7th amongst all Tesco competitors. Iceland foods: Iceland food store also consider their operations and functions with many
competitors that supply packaged and frozen foods. It is specially focused on the selling
frozen goods with develop effective results in the country (Kotabe and Helsen, 2014).
The company also regularly operate and run systematic promotion activities that help to
sell products in the market. One of the most common form of promotion is offer large
portion at same price. They consider operations and functions to compete with the
international market.
 Small retail and other franchise: This is another major competitor of Tesco. They
consider small kinds of operations and functions that are present in market. It is generally
convenience store which exist in the supermarket. They are most used due to ease of
access rather than price advantage (Fernie and Sparks, 2014). In the UK, small retail and
other franchise occupy 4% in the market so that it consider small operations in the
business. With the help of systematic outcomes and results, they are also increasing
customers in the enterprise.
In respect to take the above discussion regarding competitors analysis, it can be stated
that Tesco face tough competition in the market. It creates major impact on the company
performances and outcomes. Therefore, it is important to analysis effectiveness to concentrate on
unique selling price (Ayers and Odegaard, 2017).
4 Evaluating marketing mix to attain gaps between marketing strategy and external environment
Marketing mix plays an important role for creating value of organisational products and
services. The changes in factors of marketing mix are done after analysing marketing strategy
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and external business environment of firm. Evaluating business and business environment plays
an important role for Tesco because it helps in establishing changes in activities of firm as per
the requirement of changes. The current marketing strategy of retailer is focused on regaining
stakeholders and to attain competitive advantage (Breton and Martín, 2011). Further, the firm is
focused on advertising as per different occasion in order to emotionally connecting with buyers.
Apart from this the firm has started offering products on online platform for boosting sales and to
stand out in competition. In addition, the retailer has started using renewable packaging and
production resources to preserve environmental conditions. Similarly, the marketing strategy of
Tesco was to offer free gifts in schemes like buy one get one free. It can be said that analysis
over external environment is the strategy which helps the business in analysing needs of changes
and setting improvement measures in order to establishing strong marketing image. These are
business environment changes of retailer which were implemented to attain competitive
advantage a to boost sales. Thus, in accordance to present marketing strategy and mix of
organisation there are various changes which can be made to fill the gap in order to overlap
weakness of current strategies. The new marketing mix action of Tesco are as follows:
Product: The firm offers wide range of products which are of daily needs of consumers
such as food grocery, home appliance, baby products etc. In addition, the organisation offers
various choices to buyers which are related to quality, price, goods etc. The range of products if
retailer helps the firm in gaining consumers but on the other hand, as per analysis now the Tesco
will offer own branded apparels and prep meals online (Kennedy, 2017). This Strategy of
organisation will assist management in gaining customers. Examining and branding products is
the strategy which hill helps the company in filling gap of marketing mix in comparison to
external factor. Branding products is the tactic to gain loyalty of stakeholders.
Price: The focus of Tesco is offer products at lowest possible prices with the motive of
increasing sales and consumer base. Cost advantages over products assist the firm in overcoming
loss and making buyers happy. Apparently, as the situation increasing competition the focus of
firm is to implement use of unit pricing and competitive pricing strategy. In unit pricing strategy
the management will set price of specific products according to their quantity (Noel, 2017).
However, the prices of substitute products will be set in accordance to competitive pricing
method. Both the pricing plans will help the organization in attaining competitive advantage and
setting different standard of product pricing for buyers. Apart from this, the firm will ofer loyalty
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card system in which the buyers will get loyalty points with every shopping according to their
bill. Further, the consumer will have the right to redeem their points according to their
convenience on shopping.
Place: Tesco has two major distribution channels that is online and offline. Apparently,
there are six different types of stores of retailer that is Tesco Homeplus, Tesco Superstore, Tesco
Compact, Tesco Extra, Tesco Metro and Tesco Express. In accordance, to attain advantage over
placement of products, the management keeps a check on sales on different platform as per
consumer response. Further, place is the factors which determines accessibility to companies
products and service. Therefore, with changing business environment the firm has planed to
increase its stores at prime locations. Further, the management has also planned to increase
online distribution channels in order to make convenient buyers and to increase brand visibility.
Promotion: It is the key factor of marketing mix which derives the values of company
and its services. For promotion Tesco implements use of various promotional strategies such as,
Bags, on which name of firm is printed. It is the tactic which helps in making people
acknowledge about brand. Apart from this, the enterprises' organisation various promotional
events and offers promotional discounts, sponsors charitable events. Thus, it can be said that
promotional strategies are of Tesco are its sale strategies which helps the organisation in gaining
consumers and increasing sales. However, to cope with changing external factor the organisation
will, now implement the use of social media advertising which is the best tool of reaching large
number of population with less investment. In addition, the organisation has paned to make use
of renewable resources of business activities in order to prevent environment conditions from
harmful emission ad increasing waste. Promotion of this plan will again assist retailer in
attracting buyers and developing trust.
Physical evidence: Tesco shares strong presence across UK but still per increasing
competition, it has been analysed that Salisbury and Asda are growing their presence in order to
attain advantage and create easy access to buyers for their products and services. Thus, in
accordance to increasing competition, the retailer ha is planning to increase physical presence by
establishing stores at global level at majority prime location of international cities (Wang, 2017).
People: The employees in every store of Tesco are adequate and skilled. The
management of stores is arranged in order to fulfil every requirement of consumers like sale
manager, customer care representative, helping boys, stock manger, cash manager, marketing
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person etc. However, to manage strict control over staff of every store the firm has implemented
cameras at every store in every location. The enterprise will organise training for employees
which will help the firm in developing skills of staff according to changing business work and
increasing competition.
Process: It is related to consumer services of organisation where Tesco is focused on
providing convenient billing services regardless of any additional specification with regards to
sales. Apparently to make process simpler, the firm has planned to recruit more staff who will
assist consumer in shopping which will helps in managing their time which gets wasted in
finding goods. Further there will staff who will deal with consumer grievances and will address
issue which will make buying process simpler.
Thus, in accordance to new marketing mix, it has been analysed that the changes will
assist retailer in overcoming competition and establishing easy management of services. These
chase in factors of marketing mix factors will assist Tesco in gaining trust of stakeholders and
increasing business function successfully (Yu, Ramanathan and Nath, 2014). Hence, the changes
in factors of marketing mix will assist retailer in filling gaps between the company’s present
marketing strategy and external environment like prevent environment and natural resources,
increasing brand visibility, changing price strategy and developing physical presence.
CONCLUSION
From the above report, it can be concluded that Tesco is one of the largest supermarket
industry which deals in different kinds of products and services to cope up with several activities
and tasks. They consider their systematic operations and functions that assists to meet with
desired goals and objectives as well. With the help of innovative characteristic and outcomes, it
can be stated that marketing activities help to the business to focus on advance results and
outcomes as well. Different events has been considered to focus on attain systematic work
performances. In the supermarket, retailer increasing their activities that assists to help with
different consideration in the company. Furthermore, report articulated about marketing audit
that help to focus on the new opportunities which helps to maintain more significant advantages
at workplace.
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