Marketing Management: Strategies, STP, and Environmental Analysis of Tesco

This report discusses marketing management strategies, STP, and environmental analysis of Tesco. It covers the meaning and role of marketing, elements of the marketing process, and marketing mix. The report also includes a SWOT analysis of Tesco.

Marketing
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Meaning of marketing:................................................................................................................3
Role of marketing........................................................................................................................4
Elements of the marketing process.............................................................................................5
Marketing strategies....................................................................................................................5
STP..............................................................................................................................................7
Marketing Mix:.........................................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The marketing management is all about determining the wants and needs of the
customers and providing the top quality goods and services to them. The process of marketing is
based on the several managerial departments such as marketing mix, marketing strategy. In
addition to this, method of marketing includes targeting, segmentation and positioning, for like,
7P's of marketing method of marketing which involves segmentation, positioning and targeting.
The following report is based on the company Tesco which is is British multinational brand that
socialises in selling groceries as well as other retailing products . Company is having their
headquarters in Welwyn Garden City, United Kingdom (Alamsyah, and et.al., 2021). The
following report will cover about the effectualness of the marketing technique, business
environment by applying environmental evaluating tools, identifying several threats and
opportunities, it will also include evaluation of STP which is segmentation, targeting and
positioning strategy. Moreover to this, marketing mix will focus on the 7 P's and it will also
include the recommendations on how management can increase their strategies of marketing in
the market area.
TASK
Meaning of marketing:
Marketing refers to the activity of the company that are related to the selling and
purchasing of the goods and other offerings of the company. It involve buying selling,
advertising as well as brand awareness of the goods and services that are offered by the firm. It
is the method in which the management and people will concentrate on their needs and wants
and work on their dealings in evolution and exchange of the ethics in the regards to attain the
needs and desires of the consumers. Marketing is also linked to the managerial process for
understanding, examining and accomplishing the demands of the loyal consumers in accordance
to increase their profitability as well as performance (Alonso-Garcia, and et.al., 2021). It is the
way of evolution and dealing as well as supplying offerings which is worth to the consumers,
society and stakeholders. The basic goals of the marketing is to understand the needs and want of
the general people . The several components which are effectually evaluated in the field of the
marketing is mentioned below briefly:

 Creating – It is the basic method of the marketing as this process is the way of
coordination among clients, consumers, suppliers, wholesalers for making the goods and
maintaining their services which value for all of them.
 Delivering – It is the method of providing goods and services which are given to the
customers in several ways which increases their worth (Bradford, and Perry, 2021). The
effectual process of marketing is commonly depends on the providing products with
effectively and with good quality at the targetted market area to the appropriate
consumers.
 Communicating – It includes the area in which the suppliers and purchaser need to have
a conversation in order to negotiate about the products as well as services which are
given by the company.
 Exchanging – It refers to the developing worth for supplying products and other offering
in the kind of trading in the market area.
Role of marketing
Marketing has an efficient as well as effective role in the non profit company, all the
company to marketing for developing consciousness about the company, products and services.
Non profit company are commonly follows the products and services suppliers which provides
facilities for the benefit of the consumers (Ding, Yuan, and Hu, 2021). Marketing will display
the essential area which will focuses on examining and understanding the nature and features of
the consumers, purchasers and users as well. It is the process of gathering the way of a person as
well as of the group of individual which needs their preferences together, which can satisfy them
at the same area in an effectual as well as efficient kind of way. NGO (non profit organisation) ,
agencies, government hospitals, stores and various more. Some of the crucial role of the
marketing in non profit organisation are mentioned below briefly:
 Creating consciousness regarding the reason and the problems.
 Enhancing the value of the management.
 Making appropriate goals, mission of the company of management.
 Marketing of the company's brand in context to their offerings as well as about their
values.
 Marketing with the support of the social media platforms and digital marketing methods.

Elements of the marketing process
The main goal of all the all the company is to examining needs and wants of the
customers and then satisfying them by providing top quality offerings in regards to address their
long term goals and objectives. Marketing methods in the management of the company Tesco
which is mentioned below briefly -
 Situation analysis – It is the basic as well as crucial element of marketing process in the
company of Tesco, it need to examining the market condition by which company can
focus on their market area and examination the opportunities as well as scope in order to
meet respective needs and wants of the consumers (Dubey, and et.al., 2021). For
analysing and understanding the needs and requirements of the customers which the
company need to evaluate their own weaknesses as well as strengths.
 Marketing Strategy – The company is basically focuses in regards selecting appropriate
marketing techniques in order to satisfy their needs and wants of the customers.
Organisation works on the research of the marketing techniques and it will provide
authentic information regarding the area of the market. Such information and data
supports the company to select their market segment area for supplying their offering to
the consumers in order to generate more profit and sales revenue.
 Marketing mix decisions – In this type of management it needs to make such decisions
in accordance to the area of marketing mix. Effectual utilisation of the marketing mix
element is a crucial part for all the business organisation. It includes price, product, place,
promotion, people, process and physical evidence as well.
 Implementation and control – It is the last part of the marketing method. In this section,
appropriate plan need to be made in accordance to promote them (Fami, and et.al.,
2021). Company need to utilise the lower condition of resources for generating more
revenues.
Marketing strategies
Marketing strategies refers to the model which are related to the advertising that assist in
understanding the appropriate way to launch the business effectively by understanding the need
and wants of the consumers. Ansoff Matrix assist the business management of the company
Tesco in following and implementation of their several techniques as well as methods. It is the

area which alter to manage the evolution and development for the longer time period. It assist
associates, leaders, marketers and senior associates which are mentioned below :
 Market Penetration Strategy – It is one of the less risky method in comparison to other
different strategies, As the products are same which are being sold are in the existing
market area. It states that enhancement of the sale of the goods and services in the current
market place of the company. With the help of this method, company Tesco can gain new
consumer base in their existing market area and also it helps in saving cost and expenses
on the research and development.
 Market Development – It refers to the tapping into the new market area with selling or
offering the existing goods and services. Moreover to this, it also increase the market area
geographically and demographically as well (Halberstadt, and et.al., 2021). This type of
strategy needs lots of capital investment in order to expand the business in different
market place. It requires company to conduct proper research in order to understand the
needs and wants of the people at the new market area. It also contains bit of risk as
tapping into the new market and gaining the trust of the consumers can take time as well
as it does not give surety about it. In context to the company Tesco, management is
having the major goodwill around the world so it can be beneficial for them to target new
market area with their existing goods.
 Product development – It refers to the development or innovation of the new products in
order to sell in the market area or it can also refers to the modification of the existing
product and selling it to the current market area of the company (Lewis, 2021).
Development of the product is an crucial way to increase the consumer base in the
current market area. In case of the Tesco, management is planning to launch the sport
assessors in their current market place of the United Kingdom, it can be beneficial for
them in gaining more consumer base which can be beneficial for their long term growth
and success.
 Diversification – It means to the tapping into the new market area with offering new
products and goods . This strategy is very much risky for the firm as entering the new
market segment with new products can increase the chances of the failure if the new
consumer base does not prefers the good which are sold by the company. In context to

the Tesco, management need to invest lots of capital in the research of the new product as
well as of the new market area. Moreover, management is following several strategies in
order to attain more consumer base with their several needs and wants in comparison to
the existing customer base (Li, Larimo, and Leonidou, 2021).
From the above marketing strategies, it is recommended that the business need to adapt
the market development strategies which is bit of less risky technique to implement
STP
Marketing is effectual way which supports the company in regards to suit the targets and
the goals of the company. It includes such kinds of the process of the marketing which includes
segmentation, targeting as well as positioning of the product. It is the method which includes
three step marketing technique which evaluates and analyses offering of the firm which shares
the perks with the consumers in accordance to achieve the organisational goals and objectives. A
brief process of marketing of STP in case of Tesco which is mentioned below:
 Segmentation – It is the method of understanding the requirements and behaviours of the
major consumer base which is called market segmentation. In relation to the Tesco
company, management utilises the information with the aid of its loyalty card in order to
identify the shopping behaviour and habits of the consumers that are used in the
segmentation of the consumers in accordance to their needs and wants (Madhavaram,
Hunt, and Bicen, 2021). Consumer base of the respective company are majorly consist of
the budget friendly people who value the categories and also expects the various rewards
and discounts. Many times behaviour of the people purchasing has known to effect on the
organisational functions.
 Targeting – In relations to the Tesco, management targets its consumers with the support
of the wide marketing efforts. It supports in reaching the total market area with avoiding
the marketing several variations of the segmentation. Instead of focusing on what the
people have similar and it concentrates on what they don't have. Respective firm makes
zero differentiation among the several kinds of the consumers. Many clients approaches
to the company taking the similar thing as a low rate goods which gives an outcome as a
low price offering in order to provide it more consumer base.
 Positioning – In relation to the company Tesco, management advertises a strategies in
which they offers several goods or products in lowest rates every day in their store in

accordance to the promote themselves as the cost effective retailer. This strategy is one of
the most preferred ion the market and supports organisation in gaining more consumer
base towards the firm which leads to the long term success as well as growth of the
business (Mohan, Nyadzayo, and Casidy, 2021). Company will gain more rewards on
their expenditure in the scheme of rewards, then the company will send the customers a
rewards coupon for the accumulated points in order to make them use it in their next
shopping.
Organisational environment by applying environmental analysis tools
SWOT analysis:
It is the framework which is used in strategic planning which is used by the companies to
understand and analyse its internal elements. In context to the company Tesco its SWOT analysis
is mentioned below:
STRENGTHS
 Utilisation of technology – Tesco take
appropriate utilisation of the technology
is their strength as it is supporting the
company in bettering shopping
experiences of the consumers as well as
permitting them to satisfy their desires
efficiently.
 Various Stores – Tesco has a major
number of the stores in the country that
has given the firm the benefit in context
to the negotiating as well as distribution
strength (Ozanne, and et.al., 2021). It
has supported the company to negotiate
with the suppliers and manages high
range of efficiency.
WEAKNESS
 Highly rely on British market-
Growth of the company Tesco in the global
level has given the outcome in a majorly
dependence on the market of the UK which
can act as the weakness of the company.
 Rise in fiscal mistakes- The fiscal
profitability of the company has been
impacted negatively because of the increase
in the fiscal errors. and giving the outcome
of the more debts as well as credit issues.

OPPORTUNITIES
 Growth of online mediums- The
firm has invetsed lots of capital on
their several online platforms which
can shows the opportunities for the
company in accordance to the supply
chain. With the support of the Big
Data analytics, management of
Tesco can appropriately understand
its consumers which fitted their
needs.
 Executing policies which are
environmentally friendly – Tesco
initiated new environmental policies that
permitted the firm to perk on its
technological benefit and gain market
share in the industry.
THREATS
 Economic downswing- It is one of the
major threat to the company which has
resulted in the decrease in the buying
power of the consumers (Purcarea,
2021).
 Competitive market- High competition
is the threat to the company's long term
growth as well as profitability and
success. As the respective firm is in the
retail organisation, there are several
various companies which arew the
threats to the company.
PESTLE analysis
PESTLE analysis is the framework which assist in the evaluation of the external factors of
the business environment which can effect on the working of the company. This method is
usually utilised as a analysing the outside threats of the firm (Saura, 2021). A brief PESTLE
Analysis of the company Tesco is mentioned below :
 Political Factor – Tesco is working in several nations so this element makes the firm to
obey all the rule as well as norms which are made by the government. If the company
violates or does not follow these rules, so it can make the negative impact on the
operations of the company. Political stability is one of the essential element that can gain
more better opportunities for the firm in order to expand as well as grow in the sector.

Hence, the fluctuation in the tax polices in the several nations can have the major threat
in the long terms sustainability as well as profitability.
 Economic Factor – Company Tesco offering large range of goods as well as services so
this element of the PESTLE analysis plays an essential role in the utilisation of the
products. Any fluctuation in the interest rates or foreign exchange rates in the country
which can impact the delivery model of the firm that can impact the costing of the goods
as well as services (Shah, and Murthi, 2021). So, because of this pricing of the goods is
also effected by the economic element which can impact the declining of the sales of the
company. Hence, increment in the rates with the lower income will also minimise the sale
of the products that offered by the firm.
 Social Factor – Tesco provides several food items as well as products that assist the
company in meeting wants and needs of the consumers. Apart from this, social factor
social influence has an crucial role in the impact the demand of the offerings of the
company. This factor also includes community influence, culture, alteration in the
demnad and behaviour of the consumers which are accountable to make an effect on the
profit making of the firm.
 Technological Factor – The adaptation of the latest tech. Automation as well as
innovation refers to this element. In context to the Tesco, management need to adapt
several modern tech and implement in their operations by which they can get an edge
over their competitors in the same industry. With the help of this factor firm is selling
their goods on several online portals as well as from their website which can help them in
saving more cost as well as it will increase their consumer base.
 Legal Factor – The alteration in the policies and laws of the government can make a
direct effect on the functions of the firm. The organisation requires to obey all the
domestic as well global norms and laws that assist in making sire that company's is
operating smoothly (VidhyaLakshmi, and Karthik, Wierenga, 2021). This factor also
includes safety of the employees as well as consumers, ethical business dealing and
many more.
 Environmental Factor – Company is working on the various recycling plan that will
assist them in declining the utilisation of the non recyclable plastic waste. It will assist the
company in minimising the waste and also operating in making the sustainable

atmosphere of the as a large number of customer base which is more concentrated
towards sustainability of the atmosphere. As due to the frequent increment of the
consumer towards the betterment of the environment, management of the Tesco, is
adapting several measures in order to reduce or eliminate carbon footprints, indusrtrial
waste which can harm the environment.
Marketing Mix:
It is the framework which consist of series of activities or strategies that are adapted by
the company to promote their offering in the sector (Yuriy, 2021). In simple words, it is the set
of the marketing method which a firm utilises to accomplish its marketing goals in their targetted
market area in accordance to optimum gain and accomplishment of the business. In context to
the Tesco its marketing mix is mentioned below briefly:
 Price – Pricing strategy of the Tesco is the cost leadership in which the firm maintains
the low priced goods with maintaining the quality of their products. Company utilises this
strategy in order to manage their sales and also collaborate with their suppliers on the
consistent base in order to guarantee effectual distribution management, which gives
outcomes in the reduction of their prices. As because of the major competition in the
industry, several sources mught have an effect on the pricing strategy of the respective
firm and in accordance to overcome the difficulties, company is conducting major price
conflicts with the discounters. Moreover to this, cost plus pricing is the technique which
includes the standard lucre to the prices of the goods.
 Place - Company is supplying their goods by both online as well as offline platforms.
Company is having more than 7000 offline outlets around the world which operates by
several mediums (Lewis, 2021). Tesco's online platform for operates business online
with the utilisation of both the mediums and channels, the firm is capable to reach out
consumers and attain their requirements on the consistent basis.
 Product- In context to the Tesco, is the main retailer which sells in a broad range of the
goods that involves household items and food. Company focuses stationary, apparel,
cosmetics, food, financial services as well as gadgets and many more. Company is also
offering their value added services for like free parking for their consumers, a baby play
area, efficient consumer services and fully air conditioned outlets in accordance to tempt
a large consumer base and gain more consumer loyalty. Apart from the commodities as

well as groceries, it also focuses on selling a many variety of other goods, involving food,
electronics, furniture, home products.
 Promotion – Company has brawny brand value that assist in its marketing practices. The
company utilises newspapers, television and other kinds of media to communicate with
its consumers. Company focuses on a variety of marketing techniques in referring to the
marketing. Consumer get customized rewards point and they offers on the consistent
basis. Tesco utilises some of the components of the marketing mix to retain their
consumers, involving sales advertisements as well as public relation to keep the image of
their firm better in the eyes of the consumers.
 People – Company Tesco is having more than 4,00,000 employees in their firm and are
operating at several store of the company (Li, Larimo, and Leonidou, 2021). The firm
have a brwany consumer base that has been the major source of their success as well as
growth for the long period time. The firm invest greater level of capital as well as time in
their training and development campaigns that be very supportive in increasing their
productivity by which they can make sure effectual and quality consumer service can be
done.
 Process – This element is the standard collection of the several practices that assist in
achieving particular goals and methods the order of their consumers, In relation to the
company Tesco, the firm provides offline as well as online system of checkouts in which
consumers can visit to the consumer assistance also and pay. In addition to this, they can
also utilise the self service check out machines in order to avoid delays.
 Physical Evidence – Tesco company is having their logo and makes the effectual
utilisation of colours that is supportive in making brand better in comparison to other
companies. The goods in the offline outlets of the firm are also conveniently addressed
by which consumers can be retained.
CONCLUSION
From the above report it is concluded that marketing it one of the best technique for the
businesses which supports them in positioning as well as advertisement of their offering in
accordance to gain an edge over their consumers also assist in the long term success and
sustainability of the company. It can be declared that marketing is the business practices that is
operated by the company in accordance to promote their goods and services by which they can

gain more consumer and generate higher revenues. It might also be known that major
competition and legal consequences which need to be overcome by the firm at the time of
working in the industry. The organisation focuses on adapting competitive, fair pricing method
as well as cost cutting strategy that supports the firm in gaining more revenues from their
practices while concentrating on the betterment of the efficiency of the firm. Respective firm
utilises several techniques of marketing in accordance to gain more number of the people and a
targetted consumers from the broad geographic area that permits them to accomplish long term
success as well growth.

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