Marketing Management: Analyzing STP Tactic of Tesco

This assignment analyzes the STP tactic of Tesco, examines its marketing mix using the 4Ps and 7Ps, assesses Tesco's relationship marketing strategy, and provides suggestions for improvement.

MARKETING MANAGEMENT

Table of Contents
INTRODUCTION.....................................................................................................................................2
TASK..........................................................................................................................................................2
Analyzing STP tactic of Tesco................................................................................................................2
Examining organization marketing mix by focusing on 4ps for goods and 7ps for services....................3
Assessing their relationship marketing tactic within an emphasis on their current strategies..................7
Providing suggestions on how TESCO can improve its marketing strategy............................................8
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................11

INTRODUCTION
Marketing management is one of those practices that defines organizational discipline
which concentrate on specific application of advertising orientation, methods and techniques
insides organizations and on the administration of organizational promotion activities and key
assets. It encompasses varied elements such as market research, advertising, etc. It also defined
as procedure of effective decision making, planning and controlling. The current assignment will
be based on TESCO, which falls under category of leading supermarkets in the United Kingdom.
Its aim is to sell top quality and excellent satisfactory products to customers according to their
needs and more than expectations. The main reason behind organization success is its efforts and
initiatives that they made to make each consumer happy. The study will explain segmentation,
targeting, and positioning strategies of company and application of 4 & 7Ps of marketing mix.
Furthermore, lastly the report will justify relationship marketing tactic with an emphasis on
current strategies and appropriate recommendations for improving advertising tactic.
TASK
Analyzing STP tactic of Tesco
STP is a strategic model that helps a firm to position their product or service to target
specific group of buyers appropriately (Ing, Osman and Tze-Yin, 2020). This concept
encompasses three step methods that support marketer to identify potential customers and gain
their attention towards products purchasing. In the world of business, there are many companies
existed that has been utilized this framework in effective manner and apply each approach
systematically. TESCO may also apply this model in term of choosing appropriate tactic that are;
Segmentation-
This method helps to determine customer needs and allow marketer to segment market
appropriately (Agi and Yan, 2020). Currently, supermarket may apply market segmentation
technique by selecting beneficial strategy, which it encompasses to provide benefits in term of
identifying buyer’s needs. It may use multi-segmentation strategies that covers behavioral,
demographic, psychographic and geographic tactics. For example, by using Behaviorist
segmentation tactic based on consumers utilize rate firm may group wide spending market. It
may drive their attention towards determining needs and expectations of customers, which made

them capable to develop plan and tactic relate to product and service offerings. It may enable
them to obtain a lot of benefits.
Targeting-
Just like above strategy implication, TESCO may take initiative to choose and utilize
particular targeting tactic (Khandpur and et.al., 2020). It may use differentiation strategy,
because it has varied category of products and services for which management may have to
target specific group of customers. For instance, organization may target middle to high income
buyers between 20 to 50 ages who are able and interested to buy grocery items and financial
service offer by firm. Company may take action with chosen strategies to target individual who
may want something reasonable and valuable in term of quality, quantity and price as well. It
allows management to efforts gaining their attention.
Positioning-
It is quite important for marketer to set strong and influencing brand image in mind of
customers. TESCO may use experiential positioning strategy to mainly target its each customer
in the context of beauty and health range of items. Furthermore, marketer may take initiative to
use digital marketing tools such as social media that enable them to create a positive image in
buyer’s mind that is essential to do so for them. It makes them stronger to meet expectations of
customers and successfully promote their goodwill as well as loyalty.
Examining organization marketing mix by focusing on 4ps for goods and 7ps for services
Marketing mix is one of those strategic frameworks that help marketers to comprehend
what service or item they offer and how to plan for a successful and beneficial product offering,
which in return provide unexpected benefits to them as well as company for which they perform
their duty (Išoraitė, 2020). Here, 4 and 7ps of marketing mix elements use in the context of
services and products offer by TESCO to its target customers.
4Ps of marketing mix-
Product-
In term of products, TESCO and its management may take action to offer top quality and
quantity products in varied category, which permit them to build strong brand image in market

and allow them to reach at international level, where potential consumers are accessible and tend
to obtain top quality items (Anh and Huong, 2020). Organization has a wide range of goods
offering that it may offer to its target market. Firm may take initiatives to consider the needs and
preferences of each customer that belongs to varied segments of market. It focusses on offering
beverages, bakery items, frozen food, gaming, technology, home, garden, home electrical and
other types of goods.
Price-
TESCO in order to sell its products may take decision to tag each in term of prices that
help customers to take judgment regarding buy, which in return increase profits margin and sales
of business. It may use low pricing strategy to make purchase of any item much easier for middle
class people who are unable to buy needed product due to high cost. By choosing this tactic
management may successfully keep its target customer with products purchase from brand for
longer, which contribute to maximize profitability and generate revenue even more than key
rivals that also have strong market image and good popularity.
People-
Just like above initiatives, organization may also drive their attention to enhance
customers service standards by hiring local people at own outlets who are able to better provide
each product as they already aware about what individual prefer to buy and what they tend to
purchase from its supermarket (Panjaitan and et.al., 2021). By recruiting and selection skilled as
well as talented employees firm may contribute to strengthen its workforce which enable
management to gain competitive edge and give tough competitive to other top brands that existed
in retain industry and operated successfully with key assets. New individual with their skills and
experience may contribute to make shopping easy and comfortable for existing and new
consumers.
Promotion-
For purpose of products promotion, TESCO may efforts to offer club carb through which
consumers may obtain benefits in term of rewards that they may use as discount in their further
purchase. It may be an amazing idea to advertise business and products that frim may adopt.
Furthermore, along with this kind of attempts, organization may also promote venture through

hoardings, charitable events and television ads that help management to gain the attention of
profitable customers that seek to buy expected products from top most brands. It may use
traditional marketing methods that permit to build wide customer base that have high
expectations towards company and its offerings.
7Ps of marketing mix-
Product-
In term of services, organization may take initiatives to offer financial, internet, telecoms,
home delivery, petrol, and furniture services to local people or customers, in appropriate quality
without compromising within it (Understanding the 7Ps of a Marketing Mix, 2018). These kind
of things may allow firm to retain profitable consumers who are capable to promote venture
services as well as offers by conducting word of mouth promotion activity after obtaining proper
satisfaction. TESCO through its banks in term of financial provider may help to make financial
base of poor and needy people much stronger than ever. They may take initiative to offer range
of insurance items, personal banking and other services.
Price-
Customers may retain with a company when management offer the best and top services
to them with affordable cost. TESCO may do so by adopting cost leadership pricing strategy,
which is quite beneficial for its business growth and success within whole world where key
opportunities related to venture progress may available in bulk. Cost leadership tactic enable firm
to enjoy the benefits of each chance and economies of scale. It allows them to retain potential
customers and give them reason behind it. Price is the main element that help gaining attention
of local people. It helps to increase business sustainability and market size even better than
rivals.
People-
TESCO may enhance customer satisfaction, in term of taking decision to train existing
people at workplace such as its bank, where they may efforts to provide appropriate information
about personal loans and other financial services (The Marketing Mix: Boost Your Business with
the 4Ps & 7Ps of Marketing, 2020). Firm may believe in workforce strengthening and according

to that it may develop effective and beneficial plan to improve skills and develop competencies
among current employees who are capable to contribute in reaching brand at international level,
which is quite important to reach for management as it help to increase customer base and
profitability. This strategy may provide benefits of human resource manager in term of saving
money.
Place-
Along with above strategies and actions, TESCO may develop and apply new as well in
term of establishing own place or distribution location where talented and knowledgeable
candidates are available to make their customers happy and feel free from stress. Organization
may take initiative to offer its all services via own stores without making any compromise on
customer’s satisfaction and comfort zone. It may take initiatives to open and maintain office or
bank in the UK, in middle market where people may reach easily and share their personal feeling
with employees who may understand it better and offer everything accordingly.
Promotion-
Without promotion and development of marketing strategy, a company may not be
capable to success. TESCO may promote its venture services through usage of traditional as well
as digital marketing platforms which is quite useful idea. Along with using club card service,
firm may take decision to organize or sponsor events that is quite trending way to promote what
management tend to advertise. It may grab the attention of millions of customers towards
organizational offerings and allow them to take decision to use each on the basis of their needs or
requirements, which matters a lot as people take decision accordingly.
Process-
It drives the attention of management to develop appropriate strategy in term of using
technologies to make billion service as fast as possible. They may take initiatives and conduct
efforts to keep customer happy and it is the best way to do so in effective manner. Bank manager
may use payment transaction and billion machines that make payment easier for everyone about
what they buy in exchange of money like petrol, pay EMI, etc. Organization may attempt to
make loan approval procedure also simple via mobile application through which loan applier
may apply for it online and visit outlet to complete legal procedure that’s it.

Physical evidence-
The most effective way to attract customers is techniques and methods that firm may
chose in term of physical evidence such as website, logo, or any kind of symbol that define
authenticity of brand and gain trust of each consumer, which is quite important for company to
do so in ethical and trustable manner. Marketer within TESCO may take effort to create a web
site where they mention everything about what management tend to offer and how. It allows
users to read information about bank loan and other services of firm and then take decision to
visit its outlet in the United Kingdom.
Assessing their relationship marketing tactic within an emphasis on their current strategies
Relationship advertising is a kind of strategy that marketer or marketing team may design
to foster consumer loyalty, long term engagement and interaction with a brand, which is capable
to offer quality products and services (Caliskan and Esmer, 2020). TESCO is one of the best
popular supermarket brands in the whole world that also attempt to develop and use effective
relationship marketing strategy, just like other companies do. It may efforts to achieve
competitive edge through it in term of developing and using plan to advertise its current deals or
offer to new as well as existing consumers online. For instance, it may promote an offer to
customers in term of saving twenty pounds on Nokia phones. It may help company to gain high
profitability and sales in its phone outlet, which is an amazing thing. On the other hand, it may
not be beneficial for long term success and growth of its venture, because along with this people
also expect to obtain benefits while purchasing other products from this brand under and exciting
offering or discounts, which may contribute to gain the attention of new customers and enhance
the satisfaction of existing and new as well.
In order to retain potential consumers and gain the attention of more like them who are
able to turn into a loyal target buyer group, currently TESCO may efforts to offer club card
services as relationship marketing strategy, which is quite beneficial for its business growth and
success within retail industry where, competitive level may increase continually (Alshurideh and
et.al., 2020). Through this offer firm promote their motive behind it and that is “Save and earn
more benefits when customers shop with club card”. It gives them point at each duration of their
purchase at TESCO and its selected partners that may be transformed into cash vouchers for next
purchase trips. This form of relationship marketing tactic may provide unexpected benefits to the

organization, in term of building strong and wide loyal customer base, who may retain with
brand and enable it to give touch competition to its key competitors by conducting repeat
purchase from it (Durmaz, Güvenç and Kaymaz, 2020). It helps to enhance consumer’s
satisfaction and profitability of company, which is quite important and beneficial. While it may
affect negatively, in term of decreasing number of individual people visit when some technical
issues arise when customer use club card as per needs.
Providing suggestions on how TESCO can improve its marketing strategy
Marketing is one of those beneficial and important components that contribute to make a
brand more successful than its competitors. Chosen supermarket may take varied initiatives to
enhance their marketing strategy in term of following useful methods, as suggestion that are:
 TESCO can improve its advertising tactic by creating account and using Instagram,
which is a trending social media channel in recent time. Millions of people have already
created their accounts on this source where firm may take decision to promote its venture
offerings in term of services and products effectively and successfully. Instagram users
tend to get information about latest things such as cosmetic items, grocery, and other
forms of goods that make their purchase worth it. This kind of decision may chance the
overall performance of brand in form of increasing its productivity, profitability,
customer base and creating business image which is quite impossible to create effectively
by any other company in retail industry. It is the best way to engage wide customer base
and retain them with purchase of TESCO products and services which is beneficial and
helpful for its business progress in unexpected manner.
 Marketing strategy improvement may provide many benefits to supermarket in term of
reaching it at global level where potential investors seek to invest money in profitable
projects or companies like chosen one who may capable to pay in return more
advantages. With chosen tool, firm may take feedbacks or reviews from customers
directly and communicate with them to known them better. They may ask questions to
them about their needs, expectations and in the future demands from company, which
they may efforts to fulfill completely.
 It can be said that successful advertising is not only about heavy as many new sales as
possible, more than developing long term relationship based on faith that earn company

preference and owners. Marketer can take initiative to improve their marketing strategy
by adding value within it. They may add local media sources like billboard, templates and
other as well, which made them capable to reach at target market without conducting too
much efforts and awaken them about what firm tend to offer them. Local media sources
are the best techniques to achieve strategic goals and objectives of business, which in turn
leads to maximize web traffic and generate revenue more than other companies like
Sainsbury’s ASDA, Morrison’s, etc.
 Another suggestion that TESCO may take into its consideration and that is running
campaigns which gain the attention of people in bulk that is important to attract. They
may utilize campaign that is quite beneficial and profitable as well. It gives them chance
to interact with people and build trust worthy relationship with them and allow marketer
to retain each customer for longer as they want to stay with company.
 Marketer along with above can add more things in their marketing strategy to make it
better in term of playing a quiz with target customers online, which allow them to obtain
unexpected benefits like build better understanding between them and know each other
totally. Each suggestion give opportunity to management and marketing team to do their
best and get better.
CONCLUSION
By summing up above discussion, it has been concluded that by choosing suitable and
useful segmentation, targeting & positioning strategies, organization has targeted profitable
group of customers that contributed to increase the productivity and profitability of its business
even better than rivals that have operated in retail industry. Along with this success, management
had also gained competitive advantages by applying 4ps of marketing mix in the context of
financial and other forms of services that they have planned to offer to target market.
Furthermore, from above study, it has been determined that by using 7 effective and valuable
elements firm has increased its profits margin and built strong brand image in the current
national as well as international market. Marketing manager has achieved strategic aims and
objectives of organization by developing effective plans and marketing strategies. It has
successfully improved promotion strategy by following and conducting above suggestions into
practical manner.

REFERENCES
Book and Journals
Agi, M.A. and Yan, X., 2020. Greening products in a supply chain under market segmentation
and different channel power structures. International Journal of Production Economics.
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Alshurideh, M. and et.al., 2020. Loyalty program effectiveness: Theoretical reviews and
practical proofs. Uncertain Supply Chain Management. 8(3). pp.599-612.
Anh, N.T.M. and Huong, P.T.T., 2020. GREEN MARKETING MIX: A SYSTEMATIC
REVIEW OF LITERATURE. CONTEMPORARY ISSUES IN INNOVATION AND
MANAGEMENT. p.543.
Caliskan, A. and Esmer, S., 2020. An assessment of port and shipping line relationships: the
value of relationship marketing. Maritime Policy & Management. 47(2). pp.240-257.
Durmaz, Y., Güvenç, H. and Kaymaz, S., 2020. The Importance and Benefits of Relationship
Marketing Concept. European Journal of Business and Management Research. 5(4).
Ing, P., Osman, Z. and Tze-Yin, L., 2020. Marketing Mix and STP Strategies: An Exploratory
Study into Grocery Retailers in Malaysia. Asian Journal of Entrepreneurship. 1(4).
pp.129-143.
Išoraitė, M., 2020. Marketing Mix Features. Ecoforum Journal. 9(1).
Khandpur, N. and et.al., 2020. Supermarkets in cyberspace: A conceptual framework to capture
the influence of online food retail environments on consumer behavior. International
journal of environmental research and public health. 17(22). p.8639.
Panjaitan, R. and et.al., 2021. Investigating Business Drives: Intellectual Capital to Marketing
Mix. International Journal of Science, Technology & Management. 2(1). pp.313-332.
Online
The Marketing Mix: Boost Your Business with the 4Ps & 7Ps of Marketing. 2020. [Online].
Available Through: < https://www.meltwater.com/en/blog/the-marketing-mix-4ps--7ps-of-
marketing>
Understanding the 7Ps of a Marketing Mix. 2018. [Online]. Available Through: <
https://focus7international.com/2018/05/29/understanding-the-7ps-of-a-marketing-mix/>