Analyzing Tesco's Marketing Strategies

This assignment explores the role of marketing in Tesco PLC, focusing on its various techniques such as advertising, promotions, sponsorships, and point-of-sale strategies. It also discusses the limitations and constraints faced by Tesco's marketing efforts, emphasizing the importance of market research and an appropriate marketing plan to achieve long-term targets.

Introduction to Marketing

Table of Contents
Introduction.........................................................................................................................................3
Task 1...................................................................................................................................................3
P1 Use of marketing techniques in two companies............................................................................3
P2 Limitation and constraints of marketing.......................................................................................5
Task 2...................................................................................................................................................5
P3 Use of marketing research in the marketing plan..........................................................................5
P4 Use of marketing research for marketing planning.......................................................................7
Task 3.................................................................................................................................................12
P5 Target customer for product and service.....................................................................................12
Task 4.................................................................................................................................................13
P6 Development of marketing mix new product development........................................................13
Conclusion..........................................................................................................................................14
REFERENCES..................................................................................................................................14

Introduction
It is essential for a business entity to use marketing essential which provide competitive
advantage. Marketing is a systematic process of creating, communication and delivery of
goods and services in an appropriate manner (Shepherd, 2015). A company required to
identify customer needs, develop products and maintain relationship with their stakeholders.
The present report is based on Tesco PLC which is grocery and retail firm and operating their
business in United Kingdom. The main aim of this study is to determine significance of
marketing in a business in order to attain competitive position in the market.
Task 1
P1 Use of marketing techniques in two companies
For a business unit consistent growth is required to sustain in the current market. For this the
role of Ansoff matrix is too significant which provide long term profitability to their business.
Ansoff matrix for Tesco and British Airways:
Marketing strategies Tesco PLC British Airways
Market penetration In this strategy marketing
manager are required to use
various tactics which helps
increase market share in
existing market (Whitlow
2012). For this, TESCO can
design an attractive
marketing mix in an
effective manner. for
example, the cited firm can
use competitive pricing
strategies and offer their
product and services at the
lower price. The main aim
of such tactics is to increase
market share and sales
which is the common goal
On the other hand, higher
authorities of cited company
are to design their products
according to customer
choice. For example, they
can provide special offers to
their business class target
customer helps in maintain
their position in the UK
market.

for every business
organization.
Product development This is another strategy
where a company try to
develop new product and
services. For example,
Tesco can design and
develop a new product range
for their existing market for
those product who already
achieve saturation level.
British Airways required
that to develop new product
which satisfy customer
needs in an appropriate
manner. for example, they
can provide customized
product to its customer
which helps in maximize
customer satisfaction level
(Wu, Kirkole and Huang,
2016).
Market development UK is one of the most
competitive market which
having adverse impact on
revenue and profit.
Therefore, they required that
to expand their business in
to other emerging market
like India and China.
British Airways also need to
expand their operations in to
other Asia market which
provide long term growth to
their business.
Diversification In this strategy Tesco PLC
need to diversify their
business which helps to
maintain market share. for
example, the firm can open
restaurant chain in selected
places.
Airways line one of the
complex competitive
business which need a
supportive sector to
maintain consistency in their
business (Banerjee, 2013).
the cited company can also
start operation in to travel
and tourism which help is
developing new
opportunities for them.

P2 Limitation and constraints of marketing
Limitation and constraints of marketing for the Tesco Organisation is defined by the law.
These limitations could be implemented because of improving the quality of service and this
could affect marketing and their product establishment. These constraints help in protecting
customers while buying product or availing any service from any kind of fraud activities
(Beatty and Samuelson2014). There can be many limitations and conditions in marketing of
Tesco company for helping customer to understand their rights and protect them. And
according to the changes in the business strategies of the environment they are well updated
so that no customer that is left with not availing advantages provided by the company.
Budgetary Constraints: At times the processing of data becomes very expensive, and many
companies could not afford to conduct surveys to gather primary functions.
Time Constraints: The major factor that is required in an organisation to balance the time
management according to the customer need. This should be at the highest priority.
Legal and ethical constraints: There are number of restrictions proposed by government for
collecting and holding personal data (Berens, 2007). In such cases, researchers ensure that the
data that is been observed should be quite secure and only by allowed law permission can be
accessed.
Task 2
P3 Use of marketing research in the marketing plan
Marketing research is a function of market activities which helps to indentifying new
business opportunities and customer needs in an effective manner. for this there are two types
of approaches can be used by the company such as qualitative and quantitative. Qualitative
research is a method of inquiry that to develops understanding on human and social sciences,
to find the way people think and feel (Black, Clemmensen, and Skov, 2010). On the other
hand, quantitative research is a research method that is used to generate numerical data and
hard facts, by employing statistical, logical and mathematical techniques.
Primary data is related to those where a researcher can get the fresh data from the market by
using questionnaire, observation and interview method. On the other secondary data are those
which already collected from newspapers, articles, journals research studies etc. In the
context of current case study, Tesco can be used both primary and secondary data for their

marker research. In primary approach they can conduct questionnaire methods which is more
appropriate.
Questionnaire
Name:
Age:
Gender:
Email:
Q.1 Are you visit Tesco Store on regular basis?
A) Yes
B) No
Q.2 Do you satisfy with product quality offered by Tesco
A) Satisfied
B) Highly satisficed
C) Dissatisfied
D) Highly Dissatisfied
Q.3 Do you satisfy with product range offered by Tesco
A) Satisfied
B) Highly satisficed
C) Dissatisfied
D) Highly Dissatisfied
Q.4 Do you agree with product price offered by Tesco
A) Agree
B) Highly Agree
C) Disagree
D) Highly disagree
Q.5 Do you need more product range in existing product range.
A) Yes
B) No
Q.6 Which product you like the most of Tesco.
A) Grocery product
B) Fashionable clothing
C) Electronic product

D) Others
Q.7 Are you satisfied with customer service of Tesco?
A) Satisfied
B) Highly satisficed
C) Dissatisfied
D) Highly Dissatisfied
Q.8 Please give your remark for Tesco?
Ans……………………………………………………………………………………………
P4 Use of marketing research for marketing planning
Most of the research survey are conducted to gain insight the target audience and ways to
expand marker reach. In the context of Tesco PLC, the marketing manager is required that to
conduct an effective marker research so that they can make an appropriate plan. It helps to
provide short and long term objectives in an effective manner (Braslow, 2015). In the context
of given case study, the cited firm required that to analyses collected data which help in
designing and developing marketing plan.
Q.1 Are you visit Tesco Store on regular basis?
Interpretation:

This question is related with the customer visit in Tesco store, there are most of the
respondents approx. 18 out of 20 agrees that they regularly visit in the store. On the other
hand, only 2 respondents not agree with this. It shows that, the range of loyal customer at
Tesco is quite good which is good for the company.
Q.2 Do you satisfy with product quality offered by Tesco
Interpretation:
As per the above discussion it has been concluded that 12 respondents are strongly agree with
that product quality is satisfactory. And 4 are simply agree with that and 3 people are strongly
disagreeing out of 20 with product quality. And 1 person is simply disagree with that.
Q.3 Do you satisfy with product range offered by Tesco

Interpretation:
As per the above discussion it has been concluded that 6 people are strongly agree that the
product range is enough. And 7 people agree with this question and 1 person is not satisfying
the product range offered by the customer.
Q.4 Do you agree with product price offered by Tesco
Interpretation:

As per the above discussion it has been concluded that 6 respondents highly satisfy product
pricing. And 4 respondents sometime check the detail and 5 people satisfy with pricing and 5
persons out of 20 respondents are often search about the product detail.
Q.5 Do you need more product range in existing product range.
Yes No
Interpretation: On the basis of above diagram, there are 15 respondents are agreeing that they
need more product range in existing line. Whereas, only 5 respondents do not want to a new
product range.
Q.6 Which product you like the most of Tesco.

Interpretation:
As per the above discussion it has been concluded that most of the respondents provide mix
response. In the respondents 6 customer are like grocery product, 4 respondents in favour for
fashionable clothing, 5 respondents chose electronic product. Rest of customer out of 20 in
like other product which needs to focused on various aspects of product in order to meet their
long term target.
Q.7 Are you satisfied with customer service of Tesco?
Interpretation:
This question is related with the customer satisfaction provided by the Tesco PLC. As per the
above described diagram almost half customer satisfied with the after sale services and half
are dissatisfied.
On the basis of these analyses data, marketing manager is required that to create their market
plan and also develop various support strategies in order to attain their targets in an effective
manner.

Task 3
P5 Target customer for product and service
It is essential for a company to using a variety of products and services to explain how market
segmentation works and target variety of customers in an effective manner (Chahal, and
Sharma, 2016). for an effective to target and approach their customer they required to use an
appropriate market segmentation and then offer these goods.
Market segmenting: Market segmentation is a marketing concept which divides the complete
market set up into smaller subsets comprising of consumers with a similar taste, demand and
preference.
 A market segment is a small unit within a large market comprising of like minded
individuals.
 One market segment is totally distinct from the other segment.
 A market segment comprises of individuals who think on the same lines and have
similar interests.
 The individuals from the same segment respond in a similar way to the fluctuations in
the market.
Cited firm can divide their market on the basis of following submarket:
Gender: The marketers divide the market into smaller segments based on gender. Both men
and women have different interests and preferences, and thus the need for segmentation.
Organizations need to have different marketing strategies for men which would obviously not
work in case of females. A woman would not purchase a product meant for males and vice a
versa (Chamorro-Mera,
Miranda and Rubio, 2014). The segmentation of the market as per the gender is important in
many industries like cosmetics, footwear, jewellery and apparel industries.
Age Group: Division on the basis of age group of the target audience is also one of the ways
of market segmentation. The products and marketing strategies for teenagers would obviously
be different than kids (Chin, 2011).
 Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams
 Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags

 Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines,
apparels and so on.
Income: Marketers divide the consumers into small segments as per their income. Individuals
are classified into segments according to their monthly earnings. The three categories are:
 High income Group
 Mid Income Group
 Low Income Group
Stores catering to the higher income group would have different range of products and
strategies as compared to stores which target the lower income group.
Task 4
P6 Development of marketing mix new product development
Tesco PLC is the leading brand of Supermarkets in Britain. It has managed to garner so much
consumer popularity that its stores have crossed the boundaries of the United Kingdom and
reached twelve other countries across Europe and Asia! Founded by Jack Cohen, Tesco
started out as a mean bunch of market stalls (Shepherd, 2015). From there it has grown into
one of the leading supermarket chains of the world with the help of one’s man dream and
ardour to fulfil those dreams.
Product: Tesco provides a wide range of products that include food, clothing, electronics,
financial services etc. This ever expanding, product line caters to every possible need of its
consumers and has thus expanded into the online marketing sector too! It offers grocery
delivery service and free music downloads besides the other 40,000 or more product lines
that its retail stores exhibit.
Price: Tesco attempts to maintain as low prices as possible without reducing the quality of its
products or running itself in loss. In order to pass all cost advantages to its customers and
keep them happy, it uses a number of measures which includes the economies of scale it
enjoys.
Place: It is headquartered in Chestnut, Hertfordshire, England. Its stores are spread far and
wide in the world. It employs two main channels of distribution for its products and services
– online and offline. Its offline forum has stores of six different kinds – Tesco Express, Tesco
Extra, Tesco Metro, Tesco Compact, Tesco Home plus and Tesco Superstore (Whitlow,

2012). Tesco’s studies show that all customers are not comfortable with big stores like Tesco
extras nor is it possible to set up so many of them. Thus, it makes use of smaller stores for
easier accessibility. Its online forum Tesco Direct comprises of its official website
www.tesco.com.
Promotion: Tesco’s biggest advantage is its low prices. This is what sets it apart from other
supermarket chains. And this is what it uses to enhance its brand image. Its major objective
has always been to improve its brand image by reducing costs and being true to its words,
while maximizing its profit. To this end, it makes use of television advertisements, offers
promotional discounts, sponsors charitable events, uses point of sale strategies and so on.
Conclusion
As per the above mentioned report it has been concluded that the role of marketing in the
business and how a company. In report also discussed about the use of marketing techniques
in order to attain long term targets. Limitations and constraints of marketing in the context of
Tesco PLC. The report also explained about the conducting marketing research and develop
an appropriate market plan. Use of various strategies in order to target their customer so that
they can meet their long term goals.
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