Marketing Plan for Tesco: Business Idea, External Environment, SWOT Analysis, Marketing Mix, Target Market

This marketing plan discusses the business idea of Tesco, assesses its external environment, conducts a SWOT analysis, elaborates on the marketing mix of 4Ps, and suggests a target market for the company. It focuses on Tesco's new nutrition healthcare product and its competitive advantages.

Marketing
Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Discuss business idea of selected organisation.......................................................................1
2.. Assessing external environment.............................................................................................1
3. Swot Analysation....................................................................................................................3
4. Elaborates marketing Mix of 4ps ...........................................................................................4
5. Discuss the term competition and what is competitive advantages........................................5
6. Suggestion for target market to selected company.................................................................7
CONCLUSION:...............................................................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
Marketing is process of distributing, selling, manufacturing and advertising of product
and services in marketplace to aware customer about their needs and wants (Belliure., 2019). The
term marketing plan is report which derives about strategy of marketing or it involves overall
business plan. It also design well structure business related plan to achieving goals purpose.
In this report, the company is taken Tesco Plc, it is British multinational leading retail
organisation in United kingdom. They generally deals with merchandise groceries product and
services in Welwyn Garden City, Hertfordshire, England (Caetano, 2019). As topics are covers,
by discuss Pestle analysation for company's external environment, to assorting Porter Five forces
for measuring competitive advantages and business plan for company marketing plan.
MAIN BODY.
1. Discuss business idea of selected organisation.
Tesco is one of leading retailer business organisation in United Kingdom where many
other top retailer venture existed like Burberry, Walmart and Asda Stores. These companies not
have introduced nutrition products as well as some of health care product is too expensive where
middle range of buyer could not able to buy. Tesco can introduce their authentic Nutrition
health care product in lower price to reduces the customer gap.
2.. Assessing external environment.
External environment is designed to measure all external factors which can make impact
on business operations. Through act of business having react for maintaining flow of business
activities. For Tesco, External environment commence important role to generates optimum
information related competitive market which create impact on operations (Fernando and et . al.,
2020). By opting Pestle assessment as it support to using techniques for assessing macro
environment which may profound to impact in organisation performance. Political: This factor implies about overall corporate governance activity related with
norms, rules and regulation with business operations. As political situation of United
Kingdom is in steady form, where Tesco having influence of UK government its
policies, rules and regulation on the industry basis. This factors includes labour laws,
taxation, policies and restriction through which government opposed. There is huge
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implication from European Union as Brexit market where it derives that outsider
companies can eligible to trade with European countries. Economical: It is factor which defines about performance of country's economic growth
in terms of GDP( Gross Domestic Product), inflation rates, recession, employment rates
etc. Through these elements can create an impact on Tesco venture faces hard
competition from other telecommunication firms like Vodafone makes high competition
in marketplace. By heavy competition Tesco company need to cut down their product
prices for sustain in competitive marketplace (Firmansyah and et . al., 2020). Further
more, other factors can enhance UK economic background increased through
globalisation, market high cost, impact of inflation where consumer exceeds its buying
power, due to unemployment of high cost production such as land, labour and capital
venture supplies negatively impact in business group. Social: To determine and scrutinize social environment of market to highlights like
cultural trends, demographics, populations assessment in terms of geographic as well as
demographic trends. As in social environment of United kingdom is very vast where
Tesco company can approach their customer through age, gender, caste and culture
basis. By practising of customer selection through this procedure create an impact on
business. Technological: These factors prevails to innovation in technology background that
creates an impact the operation of business related industry and influence to market
positive and negative side for business related benefits. It refers about automation or
advanced technology as resources to assort by company where they can increase their
mobility. Tesco venture has huge advantages of this factor because in United Kingdom
there is high influence of Technology factor as well as company utilise many artificial
traits of resources which provides benefits. Environment: In this factor involves all those factor which influence and determine by
surrounding environment. Aspects which involve in business related environment
society development, Environmental issues for Tesco company perspective
(Ghahnavieh., 2018). It can also influence for CSR activities but there is huge challenge
that company faces at the time of weather or climate changes that having direct impact
on business performance.
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 Legal: According to this factor comprises more external and internal sides, as many
laws is involve in United Kingdom which affect business in certain country while there
is policies that companies maintain for themselves (Jimenez., 2020). In Tesco company,
they need to consider more legal issues and challenges that can change business growth.
Some of laws helps to create better infrastructure related with employment rights.
3. Swot Analysation.
A concept Swot Analysation is strategic technique which is assort to examine by
individual person about particular company's internal environmental capability. It applies an
entire organisation as well as task related through single department. In below there is evaluation
of Swot for Tesco plc:
STRENGTH WEAKNESS
 Tesco company is one of leading
retailer grocery supermarket in United
Kingdom. As they have high amount of
revenue and sales as per compared with
other supermarket chain in Great
Britain.
 They are one of the leading market
share in terms of groceries market with
25%-27% of market share (McGowan
and Branche., 2020). In many
international countries having huge
impact of their presence such as
Ireland.
 Tesco having increase amount of stores
as above 3000 street shops with 6,000
more retail stores in worldwide.
 They have effective and most influence
Marketing promotion team in globally
which they promote Tesco's product all
 From American and Japanese countries
Tesco need to exit from there because
they failed to exports their product
from store in Japan and USA.
 Low Cost strategy can reduces profit
margin through which other retailer
business get high advantages.
 By having high amount of debts and
credit card liability through which
Tesco's financial profit are profoundly
affected (Mononen and et . al., 2019).
 Share price of Tesco faces diminishes
due to less operating income as this
provide worst performance for all
company by presence of Brexit market.
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over internationally.
OPPORTUNITIES THREATS
 The Developing strategic partnerships
with reputed companies that provides
excellence offer to Tesco opportunity.
By enable to offer more quality of
products to attract customers.
 As Tesco having vast market captured
joint venture can brings regions with
Tesco stores who are underrated
performers in competitive advantages
(Mudigere Keshava., 2020).
 Tesco prevails opportunity by
upgrading its online shopping along
with home delivery services
 By expanding emerging markets in
other developing countries such as
South Korea, Turkey and Indonesia to
increase high profits opportunity
towards company.
 High competition in retail business in
International market which increase
more issues and challenges from
Burberry, Asda Stores, Sainsbury and
IKEA etc.
 Brexit market can reduces business
growth for Tesco by not allowing to
trade in European countries that matters
for high threats involve.
 Due to economic crises of government
regulation legal tax matters and
economic uplifted can arise the
operational efficiency of Tesco
performance stores in critical regions.
4. Elaborates marketing Mix of 4ps .
Marketing mix is term that comprise about foundation model or structure for business
related to effectively examine of product, price, place and promotion. It defines as tools which
has assess by organisation to gaining marketing objectives in target marketplace.
In following below explantation of marketing mix for new business idea of Tesco product:
Elements of
Marketing mix.
Tesco new Nutrition Health care product.
Product The product of Tesco nutrition based healthcare product is derives about
people inner ability increase in terms of immunity. Tesco ensures that
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product is authentic as well as high quality which can provide benefits to
customer.
Price By imposing the prices for new product is economic range where customer
can easily afford and it is more cheaper than competitors health products
(Nguyen., 2019). As always they provides lower price of goods while at
the time of maintaining quality.
Place The availability of Tesco product has 6,900 above stores in more than 11
countries. In fact they tend to make new product in international market as
their motive to attain more and more customer.
Promotion Tesco has effective promotional strategy by utilising different digital type
of channels as electronic holding, banners, digital marketing, online
platform, social media and television to providing advertisement with
offering basic discounts as in buy one get one free (Pike., 2018). Customer
of Tesco is having loyalty card which helps to highlight for their target
market as well as customers.
5. Discuss the term competition and what is competitive advantages.
Competition: In marketing terminology when rivalry between companies selling similar
products and services then clashes happens through prices, product differentiation and other
aspects.
Competitive advantages: According to this marketing term having attributes that enables
of company which outperforms its competitors. It tend to allows for company towards
accomplish targets that enhance to increase competitions as well as generates goodwill along
with shareholders.
Strategies of Competitive advantages for Tesco plc:
There is utilisation of competitive advantages strategies to Tesco plc:
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 Differentiation: It occurs when a company seeking for unique trait of market and focuses
on different dimension through which customer creates more values. This strategy insists
to adopt new concept of market trends. In perspective of Tesco company, differentiation
can influence for their new product to approach for new trend of market.
 Cost leadership: As in cost leadership depicts when firms works to selling product
within lower range or less cost maker product in market (Smilansky., 2017). In
perspective of Tesco, to scrutinize market through different sources and cutting down
price to gaining more customer from competitive marketplace.
 Focus: According to this factor, it mainly focus towards the segmentation of group to
consider each other product. For Tesco perspective, there is two types of focus strategy
Cost focus which will only determine in costing of product range and another is
Differentiation Focus procedure that enhance to consider different sort of strategy which
helps to gain competitive advantages.
From above three competitive advantages for Tesco company is suitable for their new product
venture is Cost focus and Differentiation Focus, these two can help to manager by implies new
product pricing as well as Focus differentiation supports to making planning to create product
different from other competitor brand.
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Illustration
1: Competitive advantages strategies, 2018.
Source: Competitive advantages strategies, 2018.

6. Suggestion for target market to selected company.
A Target market is a collective customer in which specific business organisation
approach their people to selling and distributing of product and services through which business
objective marketing efforts and resources (Taskila, 2019). Tesco target market is group middle
range customer who having low affordability of buying goods and services.
New Product for Tesco Business plan:
Mission: Tesco having their mission that stats “We make what matters better together”
which defines ensuring of manufacturing quality of product having positive outcomes.
Vision: Their vision statement “ to be the most highly valued business by those customer
whom they serve or community through which they operate and to loyal customers along with
their shareholders”. It makes sense that satisfaction to all stake holder is their first priority in
aspect of assessment vision progress in context of company.
Objective: The Tesco company purpose of optimising new business ideas to gaining
more competitive advantages along with high market share.
Marketing STP of Tesco new product
Segmentation: This factor helps to indicates by divided market in two traits demographic
, Geographic, behaviour and psychological factor. It guides to Tesco new nutrition product for
approaching customer through age, gender, ethnicity, education aspects. As per this practise it
easily to identify right marketplace.
Targeting: It is second step which helps to seeing for target customer after selecting
market through identifying best opportunities for assorting customer data (Nguyen., 2019). As
Tesco has identify to selects middle class and moderate premium peoples where their nutrition
health care product is also comprising economic range of price.
Positioning: It refers to target market's point of view that defines product related major
benefits and specification which allows offering of competitive product. Tesco is the only retail
company where customers are get highly engaged to purchase their suitable product (Smilansky.,
2017). Therefore, Tesco successfully fulfilled its people's needs and wants effectively, in which
Nutrition Health product can easily perform better in United kingdom as well as other markets
too.
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CONCLUSION:
From above report of marketing plan is concluded by explaining business ideas from
company perspective and assessing Pestle analysis to measure overall external environment
business activities. To opting for Swot analysation as measure internal environment as well as
company strength, weakness, opportunities and threats which reflects scopes and challenges. By
designing of marketing mix highlight with four Ps product, price, place and promotion towards
new business idea. Apart from it mapping of competitive advantages to framing of strategies
such as Differentiation, cost focus, cost leadership and focus differentiation. At last preparing
marketing business plan for measuring opportunities and challenges in competitive retail market
and STP of marketing helps to identifying segmentation, positioning and targeting.
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REFERENCES
Books and Journals
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Accounting: Intervention on the Difficulties in Research Writing. Southeast Asian Journal
of Science and Technology. 5(1). pp.24-27.
Firmansyah and et . al., 2020. Marketing Plan Implementation over Business Start-up: Food
Combining at PT. BERAS JAGUNG NUSANTARA. Journal of Multidisciplinary
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Ghahnavieh, A.E., 2018. The Influence of Marketing Factors on the Marketing Strategic
Planning in SNOWA Corporation. Business and Management Studies. 4(4). pp.51-60.
Jimenez, I., 2020. Developing Marketing Plan for IT Company (Doctoral dissertation, California
State University, Northridge).
McGowan, M.M. and Branche, D.D., 2020. Developing a Social Marketing Plan to Address
Wicked Problems: A Tool for Transforming Learning. The Journal of Health
Administration Education. 36(4). p.373.
Mononen and et . al., 2019. Digital marketing plan for small and medium sized companies.
Mudigere Keshava, S.K., 2020. Developing a Marketing Plan for LNGTainer Oy.
Nguyen, V.Q.A., 2019. Digital Marketing Plan for an International Event. Case: Guinness Sauna
event.
Pike, S., 2018. Destination marketing organisations. The SAGE handbook of tourism
management: Applications of theories and concepts to tourism. pp.129-153.
Smilansky, S., 2017. Experiential marketing: A practical guide to interactive brand experiences.
Kogan Page Publishers.
Taskila, M., 2019. Developing a Social Media Marketing Plan for a Construction Company in
Japan.
Online
Tesco SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP. [Online]
Available Through: <https://www.mbaskool.com/brandguide/lifestyle-and-retail/4969-
tesco.html>.
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