Tesco Marketing Management Strategy

Marketing Management EXECUTIVE SUMMARY1 SUMMARY2 Brief introduction about Tesco 2 Marketing research, attractiveness of external market and potential for market progress 3 Marketing Mix carried out for organization10 New marketing mix actions to achieve gaps between Tesco existing external environment and marketing strategy12 INTRODUCTION 3 REFERENCES 1 EXECUTIVE SUMMARY Marketing is an activity which is conducted by business associates in order to sell their product to the customers which helps to satisfied their needs. Action plan is designed by the business associates to fill the present

Marketing Management

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................2
Brief introduction about Tesco ..............................................................................................2
Marketing research, attractiveness of external market and potential for market progress.....3
Marketing Mix carried out for organization.........................................................................10
New marketing mix actions to achieve gaps between Tesco existing external environment and
marketing strategy................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

EXECUTIVE SUMMARY
Marketing is an activity which is conducted by business associates in order to sell their
product to the customers which helps to satisfied their needs. It is the most essential part of
business in order to survive in the market place. Tesco is a British international groceries
provider in United Kingdom, they provide its best services to consumers. Firm has prepared a
marketing research in order to examine overall possible for market growth in the competitive
world. Here, 7ps of marketing mix are used for product and services to evaluate the present
market scenario so that tactics are designed accordingly. Action plan is designed by the business
associates to fill the present gap between existing strategy of marketing and external
environment to search out potential growth and success in the UK market.
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INTRODUCTION
Marketing is the most essential activity within business, it is promotion of business goods
to target consumers. It is done to meet emerging requirement of clients in cut throat competitive
world. This is important because it assist the organization to sell out their product to the end user
in order to gain profitability ratio at a large scale. Tesco is one of the largest, British
multinational general merchandise supplier. It's established in Welwyn Garden City, UK.
Organization was founded by Jack Cohen and the current CEO of the firm is Dave Lewis
(Midgley, 2014). This report covers brief introduction about Tesco so that complete information
about the company can be gained accordingly. Moreover, a marketing audit is prepared to
examine the potential growth for the business in the market place. Moreover 7 Ps of marketing
mix are used for product and services in order to examine the market scenario effectively and
efficiently. Additionally, a marketing plan is framed to make effective connection between
external environment and marketing strategy.
Brief introduction about Tesco
Tesco is one of the British multinational retailer in United Kingdom . This organization
is one of the largest food retailer across the globe who is satisfying the emerging needs of the
customers on continuous basis. It was founded by Jack Cohen in the year 1919. Firm is having
6,569 stores across the globe and around 460, 000 staff members are working according to the
2017 data. The main product of Tesco are, hypermarket, supermarket, superstore and
convenience shop. The present plans of the enterprise is to come up with diversified products
like bio- products and advocating of healthy lifestyle (Grewal, Roggeveen and Nordfält, 2017).
In UK there are 1,500 stores of Tesco which are successfully serving their innovative
product to the end users. Around 1,700 staff members were affected last winter when firm
stripped out layer of middle management. According to a report it has been said that Tesco has
confirmed that 9000 jobs are at risk because it is decided to close fresh food counters. By using
this tactics in the competitive world firm is able to build goodwill in the eyes of the customers
for longer time duration (Verhoef, Kannan and Inman, 2015). It also uses various ways to attract
customers towards their product such as, by-one-get-one, Loyalty card or Tesco club-card.
Company also adopts 7ps of marketing mix so that deep analysis of the market can be done
regarding, place, product, promotion, people, price, process and physical evidence. The potential
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or targeted customers of the company are “Everyday people” who purchases their product on
regular basis.
Tesco uses positioning strategies so that potential customers can be attracted at a large
scale. Whereas, functional positioning is used to improve quality functionalities of product. For
distinguished product different pricing policies are adopted to set up top standards for the other
rivals in the marketplace. By adopting several pricing policies business concern can survive in
high competitive environment. The main reason why Tesco is so successful across the globe
because of it's powerful brand image in the consumers eyes.
Marketing research, attractiveness of external market and potential for market progress
It is defines as the strategy though which evaluation and analysis can be done in effective
manner in context of external and internal elements. Marketing audit is necessary because it
helps to enhance day to day activity of any of the organisation through which goals can be
accomplished easily. It is helpful for TESCO because they are able to deliver their best in many
of the cases. It has been helping organisation to analyse in detail about different micro and macro
factors.
There are number of services which is being delivered by the TESCO to their customer
and that is the main reason that they are able to sustain in the market. In current scenario they are
engaged in the sector of electronics, furniture etc. they have been giving number of online
services to the customer which has been helpful the customer for example: they provide wallet
service due to which customers are not required to carry cash whenever they do shopping with
TESCO PLC. Even they provide other services also which is have makes work easier and faster.
Detail information about PESTLE on Company have been explained below:
 Political factors: This is the factors which is affected by the ruling government where
they changes lots of regulation which are helpful for some of the organisation to enhance
there business and even it do have negative effect on some of the company.
 Tesco is one of biggest retail company of UK which operates its stores in various
countries which determine large number of daily operations that help organisation to
become the leader of company. In today era Tesco cover all UK market by providing
inferior quality of groceries and general merchandise products to its customers. As
organisation is working in different business which help to manage different activities in
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market. Now company has the vision to lead overall world in the retail industry. For this
case company create their broad vision which help to capture all market this is done by
company be opening more new stores in rural areas also. Along with this Tesco provide
several benefits to their stakeholders this include payment facility such as payment with
card or payment through digital way.
 Tesco provide or offer all types of product that come under retail sector in this
large number of products provided by them to define their products under different sector
with this they cover all aspect that help to satisfy need of customer. To evaluate the
market seven P are mention which help to monitor and perform company activities
easily. The 7 P's of marketing mix are mixed of seven P's, that following below.
 Product- Tesco operate large number of stores in overall world. In this stores
food, clothes, electronics and many more products are offered by company to different
customers. Organisation is operating their business from several past years. As now
company deliver their all grocery items to its customers. Their is large number of option
are present to buy single product which has different range, in food, clothes etc. which
determine that customer does not face lack of option to chose product.
 Price- The economic of each country is not same there is always up and down in
income and expenses of individuals as well as country . While price of product is always
depend on its manufacturing cost so it is essential that organisation decide the price
which create bridge between as it help to overcome from loophole of company. So
management adopt price incursion strategy through which they can enter into new market
with low price and slowly they increase price for its products.
 Place- Head-office of Tesco is situated in Chestnut England. As Tesco is British
company which is operating their business overall in UK which determine that their
customers are loyal for company and its products. While as demand of market Tesco
improve its distribution channel which help to increased revenue and also deliver its
products in rural area.
 Promotion- Tesco is well known brand of UK and now it is recognise among all
world. For this it is easy to sell different products under the brand name of Tesco. The
major tool to attract customers towards product is aggressive marketing which determine
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that to sell several products company execute all technique which increase raise the sale
of company.
 Physical evidence- Tesco invest only required money to develop the
infrastructure of company. As management of company has different approach by which
they thought by spending necessary amount company furnish their stores. While now to
overcome from this loop hole company develop user friendly application and website
which govern that management formulate easy way to interact with customers.
 People- Tesco is operating their business in retail sector in which people or
human resource play an essential role in buying or selling of products.Management
provide effective training to them it signify that company and employ both combine their
efforts to achieve company goal and targets.
 Process- The word process refer to different activities that has to perform by
company on regular basis. With the marketing mix of process, Tesco complete its daily
operations. In case of Tesco process refer to clear the bills of customer quickly, to place
products in stores at regular place and solve issue of customers, employees etc. As now in
competitive market different approaches is developed by which they develop different
needs such as to solve issue and satisfy customer that is far from company. Like company
develop suitable path by which its outlets attract more and new customers for its
business.
 Economical factors: In this factor TESCO is required to focus on some of the major
policies like taxation, finance, inflation rate and many more because that might doesn't
allow them to expand their business at greater level.
 Social factors: It is one of the most important factor which is need to be focus by any of
the organisation. In context of TESCO, they are required to deal with the trends so that
company can easily influence clients for long time period. Also, company need to see
what are those product through which customers can be influenced and what is there
main attitude towards the product which they supply within the marketplace.
 Technological factors: It has been found in recent period of time that technologies have
been changing every day and because of that it is not that easy for any of the organisation
to adopt all those technologies as it might be expensive also (Lee and et.al., 2016). In
context of TESCO, it has been found that they are trying to adopt changes on regular
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basis where they have the main focus improving the technology of online service that
how they can deliver the product to customer as soon as possible.
 Legal factors: There are number of acts which are being enforced on regular basis which
is required to be focus by any of the organisation. It do create lots of problem for the
organisation because they are required to adopt changes in quick interval according to
law and policies. In context of TESCO, some of the laws like Food Retailing
Commission, 2004 do impact on performance of the company.
 Environmental Factors: It is necessary for any of the organisation that they should
manufacture and sell only those produce which do not have any kind of effect on society.
In terms of TESCO, they takes this factor positively because to connected more number
of customer they focuses that how they can reduce carbon footprints in upcoming period.
They are also focusing that how they can minimise the waste product from there all store.
It will help them to connect more number of customers.
These factors do have positive as well as negative impact for TESCO but they are
required to focus more in there planning for providing qualitative services to the customer. Also,
they believe in distributing those product which are not harmful for the health.
Market Segmentation: In this case customers are divided into various categories settled
on general traits. Here, homogeneous market are fallen into assorted segments aid the enterprise
to examine the market preferences and accordingly make strategies to meet them (Mahmood and
Khan, 2014). It is directly assisting Tesco to pull potential customers towards their product in
the market. Through this company is able to gain competitive advantages in the cut throat
competitive world. As it deals in diversified products like, food, beverages, home appliances,
sports etc. market segmentation is necessary to capture huge market ratio for longer time
duration. The are several basis of segmentation such as , geographic segmentation, situation
factor segmentation, etc. all this helps the company to segment their product or services
accordingly for the potential customers.
Example: Tesco is dealing in diversified product so they need to make market segmentation
respectively. By doing so firm will be able to capture huge market ratio in the competitive world.
It helps the enterprise to categorised the targeted customers according to the product. Which aid
the business concern to meet the emerging needs of customers.
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Market targeting: In market targeting, those segments are targeted which will directly
or indirectly bring huge profits to the business concern on the basis of attractive ones. Moreover,
potential growth should be examined to understand that it is worth addressing that particular
group and weather growth is possible or not in the market (Jin and et.al., 2015). For
distinguished product different potential customers are there in the cut throat competitive world.
Market targeting is necessary so that product can be designed accordingly and profits can be
maximized at a large scale.
Competitive positioning: It is the last stage in marketing procedure. In context of this
case it focuses more on how services are provided to potential or targeted segments in the cut
throat competitive world. It basically focuses on presentation and marketing channels in the
market place. Here, Tesco has to consider that why consumers should chose their product in the
market rather than other competitors product prevailing in the market. By doing so competitive
advantages can be gained in the market and profitability ratio can be raised respectively.
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Marketing Mix carried out for organization
Marketing Mix is a allocation of elements like price, Products, promotion, place, people
etc. by examining all this a marketing tactics for an enterprise is made. It is framed so that
business concern can easily enter in to the new market and can easily run their business in the
competitive world (Dragnić, 2014). The 7ps of marketing mix are explained as follows:
Product: Product refers to as any tangible things which can be touched physically while
purchasing it from the market. Tesco is dealing in huge product offerings at it's several stores
across the globe. Enterprise is dealing in various segments like, toys, garden products, sports,
bakery products etc. Tesco come up with innovative product in the market in order to meet the
emerging preferences of en-users on continuous basis.
Price: Every organization has their own pricing policy in order to attract customers
towards the product. Tesco is using cost leadership pricing, psychological, product line and
geographic pricing policies as they are dealing in diversified product across the globe. Here,
organization is using the lowest pricing pattern with quality product in the market so that every
section of the customers can purchase it.
Place: Tesco uses both platform in order to sell the product to the end users. They uses
online and offline place to reach out to their potential customers as well as to increase sales
volume at a rapid scale. Organization serves it's product offline and has around 6,809 stores
across the globe so that those who are not technology friendly can meet the demands easily.
Through this channels of distribution customers can meet their emerging requirements
respectively and conveniently.
Promotion: Promotion are done by organization in order to attract potential customers
towards their product. Promotional tools helps the enterprise raise sales volume indirectly as
well as raise profitability ratio in the market place. Tesco uses various promotional tools like,
television, newspapers, social media platforms etc. to raise sales volume.
Processes: Every organization has their own way of processes. Here, Tesco uses
standardized processes in which staff members pick up the product and go to the customers
assistants to pay. This the process which is used in the organization in order have smooth
functioning of business activities.

People:Business associates Tesco invest huge funds in their employees training and
development sessions so that they can be motivated to work effectively and efficiently.
Moreover, for firm it's workers are people and enterprise provide them rewards, benefits,
incentives etc. to boost their efficiency to meet the set goals on time.
Physical evidence: It refers to as tangible assets which can be touched physically. When
customers purchase their product from offline then they can physically touch them before
purchasing it as well can negotiate with the prices as well. But the website of Tesco is also
fantastic in it's look as well as easy to operate.
Yes, there are different brands for different markets which are discussed as follows:
Tesco's product Targeted customers
Home appliances (furniture, electronic items,
bedsheets, utensils etc.)
Women specially
Food and beverages Young Generation
Sports items Athletic
Tesco banking Both male and female
Tesco Direct For online users
For different brands there are several product as well as distinguished targeted customers
are there. Tesco is dealing in various products and services for their customers are are working
on continuous basis to meet the emerging needs of the customers.
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New marketing mix actions to achieve gaps between Tesco existing external environment and
marketing strategy
Tesco is retail company of UK which operates its stores in various countries which
determine large number of daily operations that help organisation to become the leader of
company. (Tirunillai and Tellis, 2014). As organisation is working in different business which
help to manage different activities in market. . For this case company create their broad vision
which help to capture all market this is done by company be opening more new stores in rural
areas also. Products that are provide by Tesco has inferior quality to satisfy the demand of
customer. In their store are large number of products are available which help to target customer
in all segments. Along with this Tesco provide several benefits to their stakeholders this include
payment facility such as payment with card or payment through digital way.
Tesco provide or offer all types of product that come under retail sector in this large
number of products provided by them to define their products under different sector with this
they cover all aspect that help to satisfy need of customer. To evaluate the market seven P are
mention which help to monitor and perform company activities easily.
Product- Tesco operate large number of stores in overall world. In this stores food,
clothes, electronics and many more products are offered by company to different customers.
Organisation is operating their business from several past years. As now company deliver their
all grocery items to its customers. Their is large number of option are present to buy single
product which has different range, in food, clothes etc. which determine that customer does not
face lack of option to chose product.
Price- The economic of each country is not same there is always up and down in income
and expenses of individuals as well as country. (Balakrishnan, Dahnil and Yi, 2014). While price
of product is always depend on its manufacturing cost so it is essential that organisation decide
the price which create bridge between as it help to overcome from loophole of company. In
initial stage of Tesco they decide their price for different products as cost leadership which help
to generate more income (Anderson and Xie, 2014). While in present scenario market or industry
is very competitive. So management adopt price penetration strategy which is beneficial for
them.
Place- Head-office of Tesco is situated in Chestnut England. As Tesco is British
company which is operating their business overall in UK which determine that their customers
10

are loyal for company and its products. So approach and deliver products to large number of
customer company decided two place. In which first is offline while other is online it help
management to target customer easily. Like they launch different stores to match with needs of
particular customer that include Tesco Express, Tesco Metro and Tesco superstore from past
years. While as demand of market Tesco improve its distribution channel which help to gain its
market share and also deliver products in rural area.
Promotion- Tesco is well known brand of UK and now it is recognise among all world.
For this it is easy to sell different products under the brand name of Tesco. For this management
implement different strategy to enhance their goodwill by reducing price of products and provide
good quality products. In case Tesco company implement unique advertisement technique to
promote company products (Dolnicar and et.al., 2014). The major tool to attract customers
towards product is aggressive marketing which determine that to sell several products company
execute all technique which increase raise the sale of company .
Physical evidence- Tesco invest only required money to develop the infrastructure of
company. As management of company has different approach by which they thought by
spending necessary amount company furnish their stores. They do essential things which help to
attract customer such as cleanliness, air-flow etc. that attract customer. While now to overcome
from this loop hole company develop user friendly application and website which govern that
management formulate easy way to interact with customers.
People- Tesco is operating their business in retail sector in which people or human
resource play an essential role in buying or selling of products. Like in case of general
merchandise product buyer want to know about product to remove unnecessary doubts. As to
retain their employee's for lone time (Sisakhtnezhad, Alimoradi and Akrami, 2017). Management
provide effective training to them it signify that company and employ both combine their efforts
to achieve company goal and targets.
Process- The word process refer to different activities that has to perform by company on
regular basis. With the marketing mix of process, Tesco complete its daily operations. In case of
Tesco process refer to clear the bills of customer quickly, to place products in stores at regular
place and solve issue of customers, employees etc. As now in competitive market different
approaches is developed by which they develop different needs such as to solve issue and satisfy
11

customer that is far from company. Like company develop suitable path by which its outlets
attract more and new customers for its business.
CONCLUSION
From the above it can be summarized that Tesco is dealing in diversified product across
the globe as well as on continuous basis fulfilling the emerging needs of the customers.
Marketing audit is framed by organization so that present market scenario can be easily
examined and potential customers can be attracted towards the product. Business associates
should use 7ps of marketing mix which are in many elements. so that every sector can be
examined properly and accordingly strategies can be made. It also helps the enterprise to search
out opportunities prevailing in the market. Moreover, a marketing plan is planned by business
concern to fill the gap related to strategy of marketing as well as external environment.
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REFERENCES
Books and journals
Online
How TESCO uses strategy to attract customers against its rivals. 2018. [Online]. Available
through: <https://artscolumbia.org/essays/how-tesco-uses-strategy-to-attract-customers-
against-its-rivals-2817-59260/>

TESCO PLC. 2019. [Online]. Available through: <https://www.tescoplc.com/about-us/our-
businesses/>
PESTLE Analysis for TESCO discusses its Business Environment. 2014. [Online]. Available
through: <https://pestleanalysis.com/pestle-analysis-tesco/>
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