Marketing Assessment 1

Running Head: MBA7003
Marketing & Management
Student’s ID:

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Marketing Assessment 1
Table of Contents
Introduction.................................................................................................................................................2
Macro-environment Analysis......................................................................................................................2
Growth Opportunity....................................................................................................................................5
Segmentation, Targeting, Positioning and Long-Term Strategic Direction..................................................6
Marketing Mix.............................................................................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

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Marketing Assessment 1
Introduction
The report will select an organization and develop a new market offering for the organisation. It
will target the UK market and design and deliver a new product offering in the cluttered market.
It will create a specific market space for the new product with a clear target audience and
strategies. It will research the macro-environment factors to determine the current trends in the
market of UK. It will develop the strategy of targeting and positioning of the organization.
Moreover, it will recommend some suggestion under the marketing mix which will analyze the
strategies that will be adopted by the organization to attract its customers and to develop the
customer experiences.
Macro-environment Analysis
PESTEL Analysis
Political Factors Economic Factors
 The government of UK is taking actions
to address the declining economy that
consists of a combination of economic
and financial initiatives. It has declared
several measures to revive the ailing
banks and control the increasing
unemployment in UK. In the Budget of
2018, income tax rates has been revised
up to 45% (Assimakopoulos et al., 2017).
This is estimated to revive the economy of
UK. The current corporation tax rate for
company profits is 19%. The UK
government has declared a reduction in
the business tax at the Budget. The
business rate will be 17% from 1st April,
2020
 Although Brexit has built uncertainties
and political arguments in the UK, but the
 The rate of economic growth was
confirmed to be 0.2% in December 2018.
Government investment and domestic
consumption has supported the growth,
whereas total capital and trade growth has
added negatively to the growth of the
GDP rate. The GEP rate in 2018 has
increased to 1.4% which was slower than
the GDP rate in 2017. The GDP rate in
2017 was 1.8% (Bahl and Chandra, 2018)
 The GDP in the year 2018 was
$2,822,817 million, which has positioned
UK 5th place in the ranks of GDP among
the 196 nations. The total value of GDP in
UK has increased to $194,407 million
than 2017 which was $39,800 (Datta,
Ailawadi and van Heerde, 2017). The
growth rate of economy in UK is high. At

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Marketing Assessment 1
greatest strength of UK is the political
stability of the nation. Tesco completely
enjoys the advantage of UK’s political
stability. The primary aim of any firm is
to increase its revenues and maximize its
profit margins. The political stability of
the UK permits Tesco to enjoy the
advantages from its stability in several
taxes, duties and charges (Bahadir,
Bharadwaj and Srivastava, 2015). This
will help the firm to launch its new
product in the UK
present, Tesco has 30% shares in the retail
market of UK. As the per capita income of
the people of UK is high, it will help the
firm to increase its product’s sales
Social Factors Technological Factors
 The age of the working population is
between 15 and 64 in UK which sums up
for 67% of the overall population of the
nation, where 17.2% of the people are
between 0 to14 years and 15.8% are
above 65 years (Diallo, Burt and Sparks,
2015). This issue will worsened by the
fast growing ageing population. As the
ratio of dependency will increase, it will
become more challenging to maintain the
living standard of the dependent people as
the relatively declining workforce is under
stress
 The government of UK faces the issue of
balancing the social wellbeing for these
future growths. Improvements need to
occur as soon as possible and are
necessary particularly in healthcare
 It is estimated that in the UK broadcasting
and telecoms services had made almost
£54.7 billion in 2018 and on an average an
individual spends nearly more than eight-
nine hours each day in internet browsing
in the UK. The total number of broadband
internet subscribers are increasing
dramatically, with the subscribers have
rose to 26.2 million in UK, which makes
38.2% of UK’s broadband subscribers in
UK, a 7.6% increase from 2017 (Hood,
Clarke and Clarke, 2016)
 UK is a nation that depends mostly on
digitalization. But, Tesco is always up-to-
date with new technologies and thus the
firm has launched advanced systems such
as RFID Technology to improve
experiences of the consumers within the