Marketing Strategy Analysis: Tesco's Past, Present, and Future

This report provides a comprehensive analysis of Tesco's marketing strategy. It begins with a literature review, examining traditional, value-based, and postmodern marketing perspectives, comparing and contrasting these approaches, and identifying key themes. The report then delves into Tesco's history, heritage, and strategic perspectives, evaluating its core values, products, and services. It assesses the current marketing strategy, performance indicators, and market and competitive analysis. The report concludes with recommendations for future strategies, emphasizing the importance of adapting to technological advancements, targeting different market segments, and maintaining a competitive edge in the global retail market. The report uses academic journal articles and books with Harvard referencing.

Running head: MARKETING STRATEGY
MARKETING STRATEGY
Name of the Student
Name of the University
Author Note

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PART 1
Literature Review
The selected retail organization which has been selected to be discussed in this
paper is Tesco, which is the largest retail chain in the region of the United Kingdom.
This section will mainly focus on the marketing strategy of this branded organization,
where major perspectives on the strategies related to marketing like traditional, value
based and postmodern context will be discussed (Wood, Wrigley and Coe 2016). All
these perspectives will be compared and contrasted in this section, along with
identification of the key or major themes that will emerge from this review section.
Implications of the themes will be recommended for the strategy makers of this
business house.

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From the above picture, the total sales of Tesco are given, and this will be
studied in the remaining of this paper.
About the Organization
Tesco is a multinational general and grocery retailer chain from Britain, which
was founded in the year of 1919. It belongs from the retail industry and headquarter
of this multinational organization is situated in Hertfordshire. In terms of gross
revenues, this retail chain lies in the 3rd position in the world and 9th largest retailer in
terms of revenues. The business houses possess the highest market share in the region
of Britain, which is almost 25%, and the company has its presence in 7 countries
across the region of Asia and Europe. At present, there are 6,800 outlets among the 7
nations where the business house has its presence.

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Marketing Strategies
In this context, it can be said that Tesco has followed different types of
marketing strategies that has been followed by the management according to the
marketing conditions and needs and wants of the people present I the market places
where the organization serves the people. The traditional form of marketing strategy
that has been followed by this organization included providing the circulation of the
promotional offers and other related things through direct mails, providing
advertisements in newspapers and magazines, in between programmes that was aired
in radio and television platforms. Another form was also followed at that time, and
that was word-of-mouth publicity. Advancement of technology was not so much
aggressive at earlier times and the management had to design or structure the
marketing strategies according to the technology that used to prevail in those days.

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From the viewpoint of value based, marketing strategies, it can be said that the
main aim of this retain chain is to engage the most number of people possible with the
wide array of products that is sold from their outlets. Thus, customer-centric approach
is used by the management of this organization, so that unique offers and discounts
along with other related things can be offered to the ultimate customers by innovative
ways. It can be stated in this context that social responsibilities is also another part
that plays an integral role in the business operations of an organization. Development

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of value-based strategies is done by the management of Tesco, where the value of the
customers is given the highest priority.
Coming to the postmodern time, the most common form of marketing strategy
that has been followed by the management of this organization is usage of social
media platforms. It can be said in this context that advancement in the field of
technology has increase the usage of internet in smartphones and tablets, which has
helped Tesco to target new set of customers through various social media platforms.
Circulation of different promotional offers along with other offers in the context of
new or fresh arrivals needs to be performed, so that more footfalls can be invited to
the stores that are located in 7 nations globally.
Compare and Contrast
From the above discussion, it can be stated that retail sector is one of the most
competitive sector among all other business sector in the world. Customers possess
the power to shift from one company to the other according to the alterations in the
requirement and desire of the customers towards the products that are sold in the
retail outlets. It has been seen that Tesco uses a healthy amount of money in

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providing advertisements. The marketing strategy that is used by the management of
this British retail chain uses an extensive usage of media as well as print advertising
in order to send the messages related to marketing communicate the potential and
current customers. Different types of sales promotion are used by this multinational
organization, which includes free gifts, clubcard and point of sale materials, which
helps to attract the people pre4sent in the global market places and turn them from
prospects to customers of this brand.
Major Themes from the Review
From all of the above discussion, it can be concluded that advancement in the
field of technology has helped a lot to the retail giants like Tesco to compete in this
global competitive retail market, which has created lots of opportunities to the people
or customers who are present in this global market place. But, one thing has been
identified from the strategy must include providing advertisements in all the media
channels that are available in this modern world. There are segments of people who
are not tech-savvy and in order to attract them towards the organization of Tesco,
traditional form of marketing strategies need to be used (Martínez-Ruiz et al 2016).
Overall marketing plans need to be structured accordingly, which will target the

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entire market segment that has been identified by the management of this
organization. To enjoy the maximum market share in the regions where they operate,
unique and innovative ways need to be used in communication of the marketing
messages to the targeted segment of Tesco.
Implications of the Themes
The themes which has been discussed need to be implemented according to
the requirements and needs of the people along with the segment of market to whom
Tesco is going to approach in order to sale the wide array of products that are sold
from the retail outlets of this organization. This will help to increase the market share
along with the revenue earning of the organization in the regions where it serves. As
it has been already stated that retail sector is one of the most competitive sector, so
fierce competition are faced by this organization. In order to gain the competitive
advantage over the rival institutions like ASDA, Morrison’s and Sainsbury’s, unique
and innovative approaches need to be used by the management of this organization to
enjoy sustainable competitive advantage.

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The Past & Present
Heritage & History of Tesco
In this context, it can be said that the heritage and the history enriches the
overall business operations of this organization. As discussed, Tesco can be termed as
a multinational general and grocery retailer chain from Britain, which was founded in
the year of 1919 (Martínez-Ruiz et al 2016). So, it can be seen that this business
house is 100 years old and competing in one of the most competitive business sectors
globally, which is the retail industry.

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In terms of gross revenues, this retail chain lies in the 3rd position in the world,
just after Wal-Mart from America and Carrefour from France, and 9th largest retailer
in terms of revenues. The business houses possess the highest market share in the
region of Britain, which is almost 25%, and the company has its presence in 7
countries across the region of Asia and Europe. At present, there are 6,800 outlets
among the 7 nations where the business house has its presence, carrying the rich
heritage in the food retail business sector among the world.

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The above picture depicts the alterations in the name of the organization of
Tesco.
Strategic Perspectives
It has been already discussed earlier in this paper that the strategies that are
followed by the management of this organization ranges from usage of traditional

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strategies to involvement of social media platforms. Advancement of technology is
utilized efficiently and effectively by the management of Tesco.
Core Values
The core value that is followed by this business house is designing the
business approach which is fully customer-centric. This has successfully placed them
in the leading position in the global market places where they operates, mainly in the
United Kingdom (Nurwidayat et al 2019). This is probably the most suitable
approach that a retail organization like Tesco needs to follow to attract new people
from this global competitive market place along with retaining their old customers.
Core Products and Services
The core products that are sold by this organization are different range of
product line that are sold from their stores, and the services that are sold by them in
the supermarket, hypermarket, superstore and convenience shop that are located in
the 7 Nations that has been stated earlier in this paper (Shaw 2015). Thus, it can be
said that Tesco successfully caters the retail business and serves the people where the
organization is present.