Introduction to Marketing: Tesco plc Case Study

This report provides an overview of marketing strategies and their importance in reaching a larger customer base. It includes a case study on Tesco plc, discussing the extended marketing mix, SWOT analysis, and Ansoff's growth matrix. The report also highlights the use of digital marketing to improve organizational performance and growth.

Introduction to Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Marketing...............................................................................................................................1
Extended marketing mix.........................................................................................................1
TASK 2............................................................................................................................................3
SWOT Analysis......................................................................................................................3
TASK 3............................................................................................................................................4
Define Ansoff's growth Matrix...............................................................................................4
Application of Ansoff's matrix to analyse growth startegies.................................................4
TASK 4............................................................................................................................................4
Use of digital marketing to improve organisation's performance and growth.......................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
Books and Journal..................................................................................................................6
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INTRODUCTION
In the contemporary business environment, there is dynamic competition for the organisations
operating in this environment. In order to stay competitive it is important to reach the large
number of customers in which marketing strategies play crucial role in reaching out to customers
(Zastempowski, Ignasiak-Szulc and Cyfert, 2020). Marketing is the business tactics that aims to
reach and meet the needs of the customers by promoting and selling the products and services. In
the modern business environment businesses are investing huge sum of money into the
marketing of its products, services and brand. The present report is based on the British
multinational organisation Tesco plc. The company is leading supermarket chain of the UK
headquartered in Welwyn Garden City, England. The company is the third largest grocery
retailer in the worldwide by the gross revenues. The report will outline the brief discussion of the
extended marketing mix, SWOT analysis and Ansoff’s growth matrix. In the end report outlines
the use of digital marketing to analyse the growth strategies.
MAIN BODY
TASK 1
Marketing
Marketing is the key business practice that undertake course of actions to promote the
business and to sell the products and services to the customers through promotion and
advertisement. The main motive of the marketing is to attract the customers towards the products
and service s of the company for the better sales in order to earn higher revenue. The marketing
the effective tool that help the business in to increase the brand recognition and to reach the
consumers to pursue to buy the product or to influence their purchasing decision.
Extended marketing mix
The marketing mix is the marketing strategy that has aims to promote the brand and its
product in the right market. The marketing mix is the complete framework with the 7 P’s of
marketing which includes product, price, place, promotion, process, people and physical
evidence. The extended marketing mix of Sainsbury is discussed below:
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Product
Sainsbury’s have a broad product range for its consumers as it always seeks for quality
management in innovation. The product range of respective company consists of ready to eat
meals, clothing line, household collections and many more (Fahy and Jobber, 2019).
Price
In order to gain large market share Sainsbury implement competitive pricing as it helps them in
pricing its product according to other companies present in same marketing sector. The basic
range of products and kids commodities is priced very low.
Place
The respective company has approximately 500 supermarkets and 700 convenience stores which
are operated 24/7. The company also offers home deliveries and customers could also place their
orders on its online website.
Promotion
The respective company utilise both above the line and below the line promotional strategies in
order to grab attention of large customer base. In ATL it utilise broadcast media like radio and
television in order to communicate its corporate strategies. Under BTL the company utilizes
sales promotion, packaging and database marketing.
People
Sainsbury is a customer preference brand where employees are trained in order to meet demands
of customers. The respective company has recently launched level to craft skills Apprenticeship
for fishmongers and bakers.
Process
Sainsbury has both online and offline channels for customers. The company has also made
modification in its pricing and allocation of delivery slots which has increased its order numbers
and has instilled customer loyalty.
Physical evidence
The company has diversified store designs and layout which address different demands of
customers. The quality of trolleys in basket make sure excellent shopping experience for
customers (Borders and Lester, 2020). The shelves in its stores are also impressive which make
shopping experience of customers convenient
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TASK 2
SWOT Analysis
Strengths Weaknesses
 The key strength of the company is its
innovation and promotional strategies
that help the company effectively
compete with the other leading
organisations (Foltean, 2019).
 In modern era, the customer engaging
content and presence on the social
media and online platforms is the also
major strength of the company that
helps the company to reach larger
audience.
 Lower profits margins of the company
on the significant product line are huge
disadvantage that company holds. This
reduces the company power of earning
higher profitability and revenue.
 The shortage of supplies due to the
impact of Covid-19 is also a weakness
of company as due to this company has
to increase the prices and also company
is not able to meet the customer needs.
Opportunities Threats
 The self checkout automated
technology is the huge opportunity for
the Sainsbury to undergo its selling
process for 24*7 hours, this will
increase the sales and also the company
will be most accessible brand.
 The latest trend of witness is huge
opportunity for the company to
introduce its new product line of
organic, vegan and high protein and
healthy food products in the
supermarket to meet the customer
needs.
 Increasing competition in the retail
industry and the threat of new entrants
is very risk oriented for the company to
expand and flourish in the market
(Barna and Semak, 2020).
 Covid-19 pandemic is huge threat for
the company as it has reduced the
disposable income of the people,
caused layoff of employees which is
very bad for the company’s sustainable
growth and development.
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TASK 3
Define Ansoff's growth Matrix
Ansoff growth matrix is the analytical framework that focuses on the growth of the organisation
by application of the four different growth strategies. The Ansoff growth matrix also referred as
Product/ Market expansion because the tool is used by the organisations and plan growth
strategies (Chalise, 2021). The Ansoff growth matrix is a strategic marketing tool used by the
organisation to understand the factors that has a potential of growth opportunities on the basis of
business development.
Application of Ansoff's matrix to analyse growth startegies
TASK 4
Use of digital marketing to improve organisation's performance and growth
Digital marketing is consist of using those technological tools and machines to promote the
products and services which help the company to aware more customers and offerings and gain
their attention to buy the products. The digital marketing plays an important role in improving
organisational performance and help them to grow high. For example, Morrison supposed to use
their website to gain attention of customers. There are many visitors which visit to the Morrison's
website and clear their doubts regarding quality, quantity and prices of the product. Customers
are also allowed to use the website to file complaint against any defective product or services.
With the help of digital marketing companies get to know about needs and preference of
customers more clearly by feedback forms. Here, companies send their feedback forms to their
customers through social media platforms such as Instagram, Facebook and many others and
they also use e-mails, text messages and many other digital medium to send their feedback to
their targeted customers (Pickton, Phillips and Masterson, 2021). When customers resend their
feedback forms then they review the forms and analyse the factors which is satisfying their
customers more as well as they are supposed to focus on those factors which are dissatisfying
their customers. Making changing within the products and services for satisfying more customers
help the company to grow well within their market
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CONCLUSION
From the above report it is concluded that for an organisation there is huge importance of
effective marketing into order to reach larger customer base. In the organisation the marketing
mix is the effective marketing strategy that helps the organisation to analyse and develop the
effective strategies for the particular product to reach right customer base with effective
promotional tactics. Also the company must derive appropriate pricing for the new or existing
product in order to stay in competitive market. The SWOT analysis is the prominent strategic
frame work to depict key strengths of the company that leads to competitive advantage and also
help in mitigating the threats and gain some opportunities. From the Ansoff matrix the product
development is the effective strategy that company must utilize as an opportunity to meet the
new customer demands. Also the company must utilize the digital technology as it helps the
business organisations to gain higher ROI, effective leads and most importantly it help in
reaching the customer all across the globe.
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REFERENCES
Books and Journal
Zastempowski, M., Ignasiak-Szulc, A. and Cyfert, S., 2020. Conditions of marketing and
organizational innovation of small and medium-sized enterprises.
Fahy, J. and Jobber, D., 2019. EBOOK: Foundations of Marketing, 6e. McGraw Hill.
Barna, M. and Semak, B., 2020. Main trends of marketing innovations development of
international tour operating. Baltic Journal of Economic Studies, 6(5), pp.33-41.
Chalise, D.R., 2021. Relationship Marketing: Tools for Ensuring Return on Equity. Nepal
Journal of Multidisciplinary Research, 4(4), pp.81-87.
Pickton, D., Phillips, N. and Masterson, R., 2021. Marketing: An introduction. Marketing, pp.1-
552.
Foltean, F.S., 2019. Bridging marketing theory-practice gap to enhance firm performance:
Introduction to the special issue. Journal of Business Research, 104, pp.520-528.
Borders, A.L. and Lester, D.H., 2020. Sustainability challenges in marketing, sales, and other
business practices: Introduction to a Journal of Global Scholars of Marketing Science
special issue. Journal of Global Scholars of Marketing Science, 30(3), pp.211-228.
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