Marketing Mix Product Lifecycle and Growth Strategies

This report discusses consumer segmentation, marketing mix, Ansoff matrix and growth strategies for Tesco. It includes a detailed description of the consumer segment and two important bases of segmentation. The report also identifies the marketing mix of Tesco and creates a positioning for its product. Lastly, the Ansoff matrix of Tesco is used to sustain the market share in the respective sector.

Marketing Mix,
Product Lifecycle
and Growth
Strategies

Contents
INTRODUCTION.........................................................................................................................1
Main Body......................................................................................................................................1
Consumer segment of Tesco.....................................................................................................1
Base of segmentation.................................................................................................................2
Marketing Mix of Tesco............................................................................................................3
Ansoff Matrix of Tesco.............................................................................................................4
Conclusion......................................................................................................................................5
REFERENCES..............................................................................................................................6

INTRODUCTION
Consumer segmentation is referring to the process of dividing the consumer into different
groups according to their gender, taste and preferences which is based on similar characteristics,
this information helps the companies to promote their new brand according to the consumer
segmentation, along with it allows the companies to understand that which consumer exist, who
is the target and what is the most effective way to reach their goal. In this report include that
choose any two segments which helps the company to justify the target segment, then give a
brief description of Tesco company which is related to the marketing mix and create the
positioning of its product (Acaroğlu,and Baykul, 2018). Lastly we discuss the Ansoff matrix of
Tesco which recommend strategies for the growth of the company and their future marketing
growth strategies. This theories and strategies helps the Tesco company to promote their product
and achieve their target effectively and efficiently.
Main Body
Consumer segment is the process which helps the company to distribute their consumer
according to their taste and preferences. Segment allows the marketers to communicant with
their target customers and select the best communication channel for the segment such as Emails,
T.V, radio, social media and further more. Consumer segment helps the company to find the best
way to improve their product and make a new strategy to promote their brand and services along
with it also support to build a good relationship between consumer and producer.
Consumer segment of Tesco
Tesco is a multinational retailer company which was established in 1919 and their
headquarters are in Welwyn Garden city, England (Mahadevan,2020). It is one of the top
leading companies in the world which ruins their business in many different countries.
The full form of STP model is segmentation, targeting and positioning and it is a three
step model that explores the company's products or services and also tells the best way to
communicate their benefits to a particular customer section. This model means segmentation of
market, Target selection of customer segment with marketing operation and regulate the changes
according to their desire and assumptions.
1

Segmentation - Segmentation is the process of dividing a company's market target into a group
of customers with similar needs and taste and it also helps the company to sell their products to
different customer groups by using this strategy. Associated Tesco plc company also use this
model to make their strategies and divide diverse segment into five part like grocery, sugar,
agriculture, ingredient and retail (Risius, Hamm,and Janssen2019). This segment is a strength of
the company because its helps to know the customer demand. The segment supports the
company to connect with their audience and helps in communication and product development
which are listed below:
 Helps to focus on the most profitable customers
 Improve and develop the products and services
 Support to maintain good relationship between the consumer and company
 Having a opportunities to identify the new ways to improve their product
 Test pricing choices
Base of segmentation
Demographics Segmentation- This segmentation helps the Tesco company to divided the
market into groups on the basis of age taste, size, gender, income, nationality, generation and so
on and these variables are used which is listed below:
Gender and Sexual orientation- This gender segment helps the Tesco company to divide the
group according to the different needs of male and females.
Marital status- Now a day’s marital status is the symbol of lifestyle every people want to so
luxuries life style so, Tesco use this knowledge to divide their consumer according to their status
which helps to earn more profit in Future.
Geographical Segmentation- This segmentation helps the market to divided the group on the
basis of the regions such as States, Cities, towns etc. Tesco is the top retailer company in the
world and it runs the business operation in 14 countries in Asia and Europe. It has been around
7000 retail stores across the world. So Tesco segment their consumer according to the countries
and regions. For example – different countries having a different culture and festivals.
2

Marketing Mix of Tesco
It refers to the set of action that a company use to promote their products and services to the
target customer and they also promote its brand and products in the market. Market mix analyse
the 7Ps is product, price, place, promotion, process, people and physical evidence.
Product- Tesco sells a wide variety of products including food, clothing, stationary etc. Its refers
to the items actually being sold and This company sells their products from great brand in almost
every product line' it has its own products too.
Price – Its refers the value that is put for a product' it depends on cost of production ‘cost
leadership is Tesco's pricing strategy. This company maintain his low price as possible for its
products and services without any compromise with their product quality and they enjoy the
economic scale and work contentiously with it supplier without any problem.
Place- It refers to the point of sale' every company keep the eye to the consumer and try to
making it easy to purchase their products (Robson,and Pitt,2018). Tesco uses two main channels
of distribution online and offline' they use different channel available to reach out to its
customer.
Promotion- It refers to all the activity undertaken to make the product known to the consumer
and trade. Tesco has a strong brand image which helps its promotional activity for example –
Tesco provide buy one get one free offers for some of its products and it also provide loyalty
card to their customer.
Process- They refers to the set of activity performed in order to achieve something. It is process
of delivering the product to the customer and they set activity that accomplish a specific task,
such as processing a customer's order. Tesco use self-service machines to make payment.
People- Tesco has a great number of customer and they play a major role in the success of the
company and they invest lots of money and time in employees training and development. This
3

company always try to motivate their employees' recently they start reward scheme to their
employees.
Physical evidence- It also known as material evidence and any object that play some important
role in the matter. The Tesco website a easy to operate and offline stores also manage properly
all product are well categories which make it easy for the consumers to find their products.
Ansoff Matrix of Tesco
Ansoff matrix is an important statistical tool which helps the company to make a strategies and
plan to achieve the target of the company and it helps the Tesco company to increase their
revenue and growth (Tuten, 2019). The Ansoff Matrix having a four features which are listed
below:
Market penetration-This concept helps the company to increase their sales of the product into
the existing market. It helps to measure that how much product and services are purchase by the
consumer and this information helps the Tesco company to expand their business in the market
by doing some changes in their product which is beneficial to compete in market. Tesco
company can use this competitive strategy to implement the market penetration strategies in
proper manner.
4

Market Development strategies- This concept focus on selling the products into the new
market, it is less risky concept because it does not require the high investment. Tesco company
use marketing development strategies to selling their product into the new markets but
sometimes this strategy are fail for example Tesco company stores are closed in U.S, china and
Japan the people are not like their product. However, some countries giving a positive feedback
of this development strategies.
Product development strategies -This strategy use to promote a new product in the existing
market (Vavrušková). Tesco is popular brand in the market so, product development strategies is
very useful for the company to launch their product, they can easily introduce their new product
in the market because people are already familiar with the company.
Diversification strategies- This concept is referring to enter the new market with a new product.
This strategy usually hard to implement along with selling the new product with the new
consumer it’s difficult to build the trust.
Conclusion
In the above report went into detail regarding the topic of Marketing Mix, Product Lifecycle and
Growth Strategies which is related to the Tesco company. In this report we give a detailed
description of the consumer segment and along with give the two important base part of the
segmentation and this base helps to justify the target of the segment. We identify the market mix
of Tesco and created a positioning its product which helps the Tesco company to make a proper
strategies plan to promote their product in the existing market. Lastly using the Ansoff matrix of
Tesco to sustain the market share in the respective sector.
5

REFERENCES
Books and Journals:
Acaroğlu, H. and Baykul, M.C., 2018. Economic guideline about financial utilization of flat-
plate solar collectors (FPSCs) for the consumer segment in the city of Eskisehir. Renewable and
Sustainable Energy Reviews, 81, pp.2045-2058.
Mahadevan, K., 2020. TLP for Strategic Management 2020-2021.
Risius, A., Hamm, U. and Janssen, M., 2019. Target groups for fish from aquaculture: Consumer
segmentation based on sustainability attributes and country of origin. Aquaculture, 499, pp.341-
347.
Robson, K. and Pitt, L., 2018. Tesco in South Korea: Strategic Localization. In SAGE Business
Cases. SAGE Publications: SAGE Business Cases Originals.
Tuten, T.L., 2019. Principles of Marketing for a Digital Age. SAGE.
Vavrušková, R.B.L., Changes in Online Grocery Shopping: The New Normal for Generation Z?.
6