Marketing Management for Tesco: SWOT Analysis, PESTLE Analysis, and Marketing Mix

This article discusses the marketing management strategies of Tesco, including SWOT analysis, PESTLE analysis, and marketing mix. It explores how Tesco can improve its marketing mix and branding to enhance its image and reputation. The article also covers the organization's rebranding exercise, its focus on price penetration strategy, and its use of offline and online channels for product distribution.

Marketing
Management

Table of Contents
Introduction......................................................................................................................................3
Brief description of the organization and the product (or product line) or service................3
Marketing mix, focusing on the 4Ps (if it is a product) or the 7Ps (if it is a service) that your
chosen organization is currently applying. Provide recommendations on how your chosen
organisation can improve its marketing mix..........................................................................8
Evaluate how the organisation can improve the branding and enhance the image and
reputation of the product or service. Analyse how this can impact the positioning of the brand.
..............................................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Introduction
The main focus is to develop and improve the new everyday vale range that is to
modernise the own label by improvement of its quality for the purpose of dealing with its poor
performance in recent times. The brand is now willing to focus on changing is packaging of
many products. Such as for instance there will be shift from blue & white striped packaging that
will be replaced with “more colourful and softer” design (Perera, 2017). There will be
improvement of quality in the value range with no hydrogenated fats, no artificial colours or
flavours, no modified ingredients that will lead to content of less fat and less sugar.
Brief description of the organization and the product (or product line) or service
Tesco is working towards rebranding of the value range. They are willing to dropping of their
blue & white stripe product range with a new brand range of “everyday value”. The main focus
of this brand is now to have 550 products so that there can be rebranding that is not simply the
packaging of products but also working towards promotion and branding in order to maximise its
present value.
competitive organization environment by applying environmental analysis tools
There are many different types of external events and scenario which may possess an impact on
the present strategy formulation, implementation and execution for TESCO. It becomes very
important to identify such factors so that if there is any type of negative impact of such factors it
can be managed. For the intent of analysing the external environment there is needed to apply
certain frameworks that is pestle analysis:
Political factors: TESCO is operating in various different countries across world in which they
are having its headquarters in UK. The organisation is affected by various political scenarios that
are taking place across such countries (Khan, Hossain and Rabbi, 2018). Such as present Brexit
scenario is leading to dilemma of new regulations that are to be properly implemented and
adhered by TESCO. In case of present strategy formulation TESCO will be affected by the US
china trade war between two countries have become intense.
Economic factors: There are many economic changes that are taking place in the external
environment such as it is related with inflation, deflation, impact on the personal disposable
income of people. TESCO has to take into consideration that present COVID 19 scenario has
lead to a reduction in the personal disposable income of people that has affected their present

purchasing behaviour. So, it becomes important to focus on the prices that have to keep
affordable in order to manage it as per changing customer preferences only. For this there will be
use of price penetration strategy by TESCO for the purpose of achievement of required
transformation of their present value range of products.
Social factors: There are some of the social factors that is related with the changing social
preferences of people that depends on their social and societal influence, the choice of products
among the target segment of customers is also based on different cultural factors. In TESCO for
the purpose of transforming the present value range the overall societal influence for upcoming
generations that is going to lead towards shifting attitude of customers to products that can lead
towards higher satisfaction (Mohamad and Asfour, 2020).
Technological factors: There are some of the technological factors that posses a direct impact on
the present range of products, such as TESCO is experimenting with different types of retailing
and also achieved success in some of its endeavours. They are working towards more focus on
online shopping as in the covid scenario there is shift if people preference to use of online
channels for satisfaction of their purchasing requirement. So, in TESCO for the purpose of
transformational of their value range of products it is necessary that there is complete launching
that has to take place on online website along with offline in their physical stores.
Legal factors: There are many legal regulations that have to be adhered by TESCO. It includes
following of food retailing commission that have to be adhered in the process of transformation
of the present value range of products (Radifan. and Suhaimi, 2019). TESCO is working towards
ensuring that there is proper adherence of all such legal rules.
Environmental factors: There are some of the environment factors that have to be taken into
consideration by TESCO. Such as, it is related with use of non recyclable product so that there
can be use of less plastic. In this ways there will be higher contribution towards preservation of
environment. In case of transformation of the present value range products and its packaging the
organisation can focus on use of recyclable materials so that there can be prevention of and
conservation of environment.
From the above mentioned aspects it can be said that there are several factors that are
contributing towards complementation of suitable strategy. Be sad from the above analysis that
there are several issues that are posing an impact on the present expansion and product
transformation strategies of this retail sector brand. In order to minimise the overall negative

impact TESCPO has to ensure that they are able to utilise the existing competence and strength
so that they are able to reduce the negative impact of such factors in long run. Apart from this it
becomes also important to understand the long term impact of such factors o the present
functioning of brand. The covid 19 situation is one of the most important threats that are
affecting the long term success of this brand. It has also resulted into high amount of competition
in the changing environmental scenario (Mohamed, 2017). Apart from this the changing
preferences of the existing loyal customer base has also to be taken into consideration so that
their preferences can be meet up in this highly dynamic external environment. For instance with
the new transformed value range of tesco products the brand has to focus more on its online
availability because people are willing to make their purchases more from online sites as
compared to offline physical stores because of the covid 19 scenario.

SWOT analysis:
SWOT analysis is related with analysing the present strengths that can assist TESCO in the
process of successful strategy formulation. Apart from this framework is going to help in the
process of minimization of the negative impact of threats so that overall opportunities can be
achieved in long run.
Strength:
 TESCO is having a high share in the grocery market across different parts of the world.
They are having continuous innovation programs that is leading to long term association
with their present loyal base of customers'
 During the pandemic situation TESCO used its supply chain networks for the purpose of
managing high amount of efficiency (Gao and 2020).
 There were development of e commerce marketing channels that can lead towards higher
convince for the purpose of ensuring that there is proper customer reach.
Weakness:
 Tesco has failed in expansion and US markets. TECO changed its club card scheme
without informing its customers. These are some of the instances that have resulted into
negative impact on its present brand image.
 TESCO has also been suffering from fraud scandal that is leading to difficulties and
damage to its reputation.
 Three have been many financial errors that have affected the high credit card debt.
 The present Brexit scenario is leading to negative impact on the present policy
formulation. The market share price has fallen by 9 percent that is leading to difficulty in
the process of attracting of new investors.
 Apart from these low cost techniques of TESCO is affecting the functioning of TESCO.
Opportunities:
 Expansion of their present jack store that can help TESCO in the process of insisting its
as it poses potential to grow (Akhtar and Sushil, 2018). There are new emerging markets
that can be focussed in various other emerging markets that include Indonesian, turkey
and South Korea.

 In the presents situation of COVID 19 tesco can focus on transformation of their value
range that can further result into enhancement of market opportunists in long run.
 While working transformational it is very important for TESCO to focus on using their
strength for the purpose of coming up with better range of products it can lead towards
future potential growth in long run.
Threats:
 In year 2017 the various scandals that has been suffered by TESCO is leading towards
difficulty in the process of managing their brand image.
 The present covid 19 situation is resulting into high amount of threats for TESCO as it is
going to affect the present growth & performance in long run (Sebikari, 2019).
 TESCO is also affected by the fake farm brand name which is leading to difficulty in
managing the customers demand.
 The Brexit scenario is leading to serious impact on the business of tesco. TECSO is
operating its business in many European countries. But they are also affected by many
supermarket competitors that includes Wal-Mart, aldi and careefour which may affect the
future brand image of TESCO.
From the above SWOT analysis it can be summaries that for TESCO presently the main focus of
the brand has to be towards using its existing loyal customer base, cost leadership position,
market share for the purpose of achieving the required transformation of its products. TESCO
historically has been very recognizable. Stale and they can focus on their present corporate
marketing strategies to expand their market share in order to achieve the required business
objectives.
Porters five forces:
Porters five forces model is adopted for the purpose of using it in order to analyse the present
competitive market position.
Bargaining power of customer: In present scenario the bargaining power of customers is
associated with the availability of options in the market. Such as in present scenario TESCO is
working towards enhancing the present target base of customers (Kabakova and Plaksenkov,
2018). For this purpose, TESCO is using its present cost leadership position and
Bargaining power of suppliers: TESCO is working with a supplier base that is enhancing long
term relationships. Suppliers are in the dominant position and can posses a impact on the present

competitive position. So, it can be said that there is high bargaining power of suppliers that can
lead towards impact on the present strategy formulation that is associated with changing the
value range product and the product packaging. The overall bargaining power of supplier can be
handled with using of efficient supply chain with multiple suppliers, experimenting with
products design by use of different materials and creation a scenario of third party manufactures
which can help in the process of managing its present competitive position and implementation
of new marketing strategy.
Threat of new entrants: There is a threat of new entrants that may affect the present competitive
position of TESCO. TESCO is facing threat of new entrants because new brands cannot enter the
same industry and affect the present competitive position of TESCO (Brotspiesand Weinstein,
2019).
Threat of new substitution: There is low threat of new substitution for TESCO because of the
present range of products and the cost leadership position of TESCO. So it can be said that this is
a advantageous position of TESCO as they will be able to transform their present product range
without
Industrial rivalry: In case of TESCO the brand is willing to use its cost leadership that is based
on availability, variety & the overall customer services. TESCO is a well known brand of UK
and international is focussing on comfort and value. The club card is critical to super market
chains that are leading to its continuous success as it helps in coming back of customers for more
sales. TESCO has also built up loyal customers that are leading to emergence of global brand
based on customer centric approach.
From the above made analysis it can be said that the cost leadership position of TESCO is very
helpful in the process of creating of campaigns. Such as, it is going to provide them with
required competitive advantage. The brand will be able to minimize the negative impact of such
forces and they will be having proper strength which can help them in the process of long term
success.
Marketing mix, focusing on the 4Ps (if it is a product) or the 7Ps (if it is a service) that your
chosen organization is currently applying. Provide recommendations on how your chosen
organisation can improve its marketing mix.
Product: The main focus of TESCO will be on re branding exercise that is an extension Strategy
which is designed to elongate the overall length of product range. For this purpose there is focus

on altering the specification of products and also making alterations to the present packaging of
products.
Price: For the objective of attracting large base of customers it becomes important for TESCO to
use price penetration strategy that is mainly focussed on having lower prices it is going to hep n
the process of attracting large segment of customers.
Place: TESCO is having its headquarters in England. The spread is far & wide they are
employing channels of distribution for offering its product and services offline and online
channels. There are various store formats that includes TESCO extra, TESCO metro, TESCO
superstore and TESCO express.
Promotion: For the purpose of promoting the product TESCO is now willing to focus on
acquisition of regaining stakeholders and loyal customer base. For this purpose TESCO is
working towards using of the club card scheme as a membership card for maintain the customer
loyalty. Customisation is also the main focus for development of new marketing strategy of
TESCO where the brand is can use discounts & campaigning for the purpose of attracting the
target customer base (Basak and et.al, 2020). There will be partial shift in digital marketing
activities so that there can be promotion to achieve higher competitive advantage.
From the above made analysis it can be said that there are some of the recommendations that are
to be developed so that TESCO is able to deal with the present declining market share. Further
this recommendation can also help in the course of achieving the required business
transformation as mentioned below:
 Overhauling of product packaging: In present scenario for TESCO it becomes important
for the brand that focus on the packaging of products. The shift towards better packaging
of the newly transformed value range of product is going to help TESCO in achievement
of required market share. It is suggested that in context of promotional aspect of
marketing mix TESCO can focus on using of some effective social media marketing
campaigns that can lead towards attracting of more number of customers.

Evaluate how the organisation can improve the branding and enhance the image and reputation
of the product or service. Analyse how this can impact the positioning of the brand.
For the purpose of improving the branding TESCO will be launching a new marketing campaign
for the purpose of supporting new range of new products. The main focus will be on value range
that is supermarket own label budget products.
Impact the positioning of brand:
Branding is related with creation of a positive perception of customers by differentiating the
business offering as compared to competitors alternatives, branding strategies are the pans that
have to be developed for the purpose of guiding the journey for creation of change and further
change perception of the brand. There are approx 75 percent of customers who are willing to
select products and services as per the brand they are trusting to deliver the promising and build
up the emotional connection with their visual identify, stories and experiences.
Selecting the brand emotional connection: In TESCO for the purpose of achieving the required
business transformation it becomes important to asses the customer buying behaviour that is
based on development of emotional preferences as per products prices and quality. For this
purpose it becomes crucial for TESCO.
Developing the brand identify: It becomes important for TESCO to develop the required brand
identify be focussing on the desired perception so that there can be creation of future effective
branding strategies. It is a process that involves the production and design of the professional bra
It is recommended that TESCO has to focus on enhancing its market share by making a shift
towards digital marketing strategy that is a true, the business that can help them in achievement
of their laid business objectives. TESCO can focus on the new branding campaigns and
packaging designs that can help them in their branding strategies to revolve around their
connections to ranches, farms and other elements so that they are able to make their customers
enhance their present home grown atmosphere. Apart from it is also suggested for the marketing
department of TESCO that they are able to understand the perceive the exact value that is being
offered in the value range of their present product range that is going to help the in the process of
maximization of their present market share.

Conclusion
It is concluded from the above mentioned scenario that with the changing external environment it
becomes very important to transform the present business strategies in order to achieve the laid
business objectives so that they are able to modify the present requirements apart from this in the
present phase where the macro environment factors are affecting the business policies it is
relevant to use frameworks such as SWOT, PESTLE analysis to identify the internal and external
elements affecting the business functioning in long run

References
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Online:
What Workplace Transformation Means Now: Two Experts Discuss the Opportunities, 2020
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