POM Report on Marketing Principles, Decisions and Concepts of Segmentation, Targeting and Positioning for Tesco

This POM report discusses the key marketing principles and their application in Tesco, the rationale of marketing decisions taken by the organization, and the concepts of segmentation, targeting and positioning. It also includes an assessment of Tesco's marketing strategies and future goals.

POM report

TABLE OF CONTENT
INTRODUCTION..........................................................................................................................4
TASK..............................................................................................................................................4
Explaining key marketing principles and their application in the organization.........................4
Explaining the rationale of marketing decisions taken by organization.....................................7
Assessing the concepts of segmentation, targeting and positioning...........................................9
CONCLUSION.............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Project Object Model report is a fundamental unit work which contains information
about the project including project vision, description, developers. TESCO is public limited
company founded which was founded in 1919 by Jack Cohen. Company is framing new
marketing strategies as current time required to make changes through innovation and new ideas
which enhance the sales.
This multinational groceries and general merchandise retailer is serving its product and
services in United Kingdom, Ireland, Hungary Slovakia and Czech Republic, dealing with
various brands. The retail company serve its products and services through supermarkets,
hypermarkets, superstores and convenience shops.
This report will explain key marketing principles and how these apply in organization.
Furthermore, the report will describe rationale of marketing decisions taken by organization. In
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the end, report will elaborate the concepts of segmentation, targeting and positioning specific to
a product or service of the organization.
TASK
Explaining key marketing principles and their application in the organization.
Tesco's mission is to build value added product which will help company to earn more
revenue by keeping long-run factors for its customers and employees. In order to achieve more
profits Tesco is planning to diverse the business by improving sales of its product to increase
market share and profit. With the help of new strategies and tactics company will set new goals
which will help business to grow and achieve the target. These strategies will be applicable on
the 7p's which will contribute in the success of Tesco.
Marketing Mix Product: Tesco deal with retailing books, clothes, furniture, software and financial
services in the market. Company is making continue changes in its product and services
to retain potential customers and attract new customer. These changes are made on the
current demand of the market such as different packaging of its product. Tesco is serving
high quality products and services such as groceries and dairy products to fulfil the
requirements of customers. Company proving one stop services where all products are
available under one roof. Tesco offering every great brand products in almost every
product line and it has its own product too. Tesco Lotus, Everyday Value, F&F Clothing
are some Tesco's own product brand. Price: Tesco is setting cost-effective strategies to improve the sales of its product and
services in the competitive market around the world. It's strategy based on what
customers are ready to pay for the product and services by maintaining cost through
applying reducing wastage methods in the business. Company provides membership
discounting programs to attract customers, these methods ultimately helps company to
generate high profits. Effective pricing will lead Tesco towards effective operation
management which will help to earn good revenues. To gain more potential customers
Tesco will set economy pricing strategy which will help company to raise market share.
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 Place: Tesco is planning to increase market share by providing the services and product
worldwide for which company is using strategies to spread networks. Company offering
its services and product at both offline and online platforms by focusing on purchasing
patterns. Tesco increasing its product supply by analysing the buying cycle of its
customers which helps company to ensure that where to sell and promote the product.
Customer will find company's product in the supermarkets, these superstores are
designed by focusing upon customer's requirement. Tesco have smart stores with
numerous facility such as automatic scanners so that customers can experience better
services.
 Promotion: Tesco's successful marketing strategies includes key promotional activities
such as advertising, direct marketing and in-store promotional activities which helps to
effectively raise the sales. These promotional strategies of company will enhance overall
sales of product and services which increase market share with potential customers.
Tesco is using effective promotional strategies such as promotion through television and
newspaper to attract targeted audience. Tesco is shifting towards digital marketing as
these strategies will help attract new customers and untapped market. Company will gain
brand awareness by new promotional strategies to attract right audience which will
increase sale of its product and services.
Extended Marketing Mix
 People: People are they key essentials for the company who helps to achieve business's
overall goals. Company needs to gain trust of the employees who are involved in the
business. Tesco increase the numbers of potential employees, by setting strategies of
retaining such as reward schemes. Employee of Tesco are involved in selling product,
designing it, marketing and managing team. Effective tactics of recruiting and training
increasing the number of effective teams in Tesco as it helps to keep motivated the
employees. For the organization Tesco will apply tactics of employee engagement for
long-lasting positive effects. Tesco is having talented group of employee as a team,
helping is improving the product and services. Tesco is assigns professional marking
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teams and IT members in the organization who helps to achieve target goals in retail
industry.. Process: Tesco designed effective delivering services for its product and services for the
customers. Effective line helps brand to rapidly grow in the market as customer need to
be satisfied with the processes. These processes must be designs to maximum efficiency
and reliabilities because it affects the demand for product and services in the market.
Tesco using environmental friendly processes by focusing on the sustainability. Tesco
also offering online services for shopping and digital partnerships by app and improving
its logistics. By improving product cycle Tesco will determine the efficiency of process
and this analysis will help company to set new approaches which will be required such as
mass customization and product focus.
 Physical Evidence: Tesco considering all the things which customers can see and hears
in relation to the product and services. Company is working on building strong strategies
in the packaging and branding of its product and services such as eco-friendly methods
of packaging and reducing waste. Tesco is ensuring to all the benchmarks of serving
quality in its product and services for maintain goodwill in the market. Company need
focus on the physical outlets to be designed with good interior and location, this Physical
Evidence strategy will help company to become strong brand in the competitive market.
Tangible representation of Tesco such as furniture, menu, brochures, business cards and
apron are well maintained by the company so that customers can eastily navigate or find
their products in offline stores.
Marketing mix in retail industry, involving in shaping and informing management which
ensuring the success of businesses. Tesco is retail firm which is shaping the product and services
according to the market demand.
Explaining the rationale of marketing decisions taken by organization
Tesco is focusing upon expanding the market share and generation high revenue,
company is using marketing strategies which will help to achieve its goal. These marketing
strategy will help Tesco to discover areas where company need to improve and obtain better
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understandings of market. To satisfy market needs and setting better understanding Tesco will
develop new strategies which will be effective.
Tesco creates organizational plan to fulfil customer needs which will be based on the
information collected by marketing research and these decisions will help company to achieve
overall goal of expansions. General marketing decisions are made by marketing manager which
influence the development of a marking program in which different type of marketing
communication included. Marketing decision's purpose is to achieve the per-determined
marketing objectives. High sales volumes and desired profit margins it will majorly focus on
framing marketing decisions: Speak directly to the target audience- The main rationale of marketing decisions of
Tesco is that the company knows the factor's importance of specking directly to its
customer and targeted audience. Marketing is a medium for communication between
company and people which is playing important role. As Tesco is a leading retail firm it
already knows to convey the information about product and services in the market to
attract new customers by providing them information about benefits. Company's product
and services can solve problems and make their life easier. Analysing the current
marketing demand is contained within the marketing strategies, because accurate buyer
personas are the important feature within marketing. With the help of new strategies
Tesco will pin down its audience by establishing effective communication with
customers directly to increase sales of the product and services such as advertising, email
campaigns and personal selling. Strategic investments in marketing- Clear plan for achieving the targeted goal will help
company to improve its overall performance as it saves lot of money, time and effort.
Tesco has been successful in marketing-decisions, which helps it to stop from creating
unnecessary expenses. Tesco is establishing new strategies for consistent and regular
communication which will improve understanding and analysing the marketing-decisions
with accurate information’s. Tesco is preventing wasted efforts by defined marketing
strategies which will be depended on market surveys. Budget are pre-planned by Tesco
to ensure productive decisions which benefits the company rather than causing losses. It
helps company to secure a lot of funds investing in unnecessary marketing-decisions.
Through allocating this plan effectively Tesco expanding its business which is a smart
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move for the company. Also, company holding campaign which are aligned with specific
requirements of the plan, these designed campaign will help to get results in short and
long -term. Keeping marketing activities consistent and relevant- Tesco create customers and
prospects by outlined the audience and what concerns them as company set strategies to
engage with its customers. Company create an email aimed at a particular buyer which
are reasonable and relevant and interesting to the customers to keep activities consistent.
This method helps Tesco to attract customers and engage with them on different
platforms as outlined audience attract by their interest in specific product or services.
Market survey might help company to figure out these activities are useful or not for the
company and it can frame strategies accordingly. Marketing-decisions helps to identify
required activities which are consistent enough and relevant to the customers so that any
action company take, it must bring positive outcomes to the company. Activities which
are not relevant, waste the time, effort and money of the company which can be managed
strategically such as well-structured plans. As these plans help company to follow
accurate pathway which directly leads toward goals.
 Setting objectives and measure ROI- Defining objective gives clear direction to achieve
organizational goal effectively which the company can set on the basis of marketing-
decisions. Company's set objectives are measured on the basis of collected information
survey and these marketing-decisions are established on reliable informations. Focused
activities helps to attain the process of achieving goal very effective and efficient.
Effective marketing strategies to develop strategies to achieve high sales volumes as
these marketing-decisions helps to set these objectives and discover the areas affecting
on the basis of plan.
Importance of marketing in strategic planning
Tesco is further planning to expand its market and generate more revenues for which
company is framing new strategic planning as it is very important factor of business. Rationale
of marketing decisions taken by organization helps in discovering new ideas based on
information by marketing research. Good decisions improve performance of Tesco by creating
demand, promote sales and helps to create customer loyalty.
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Marketing professionals and team execute of strategies through digital activities that
drives traffic, sales. Taking leads by sales team helps company to achieve goal. All different
department functional together to achieve overall goal of Tesco. Company mainly focus on the
functions of all department such as operational, IT, and human resources as their overall
objective is to improve performance and achieve the organizational goal.
Future goals of the company is to generate more sales and profits, will be based on the
marketing-decisions of Tesco which will lead company towards structured diversification in
new growth parameters. Company will adopt new strategies and tactics to give tough
competition in the market.
Assessing the concepts of segmentation, targeting and positioning
Tesco is offering wide product range for every age group of men women and kids. These
offerings will help company to expand its market. Company will expand market by focusing
upon right audience. Targeting audience will be selected on the basis of segmentation, targeting
and positioning to improving sales of the services and product of Tesco: Segmentation- This process helps Tesco to divide its customers into identifiable groups
based which are based on the requirements of product and services. Market
segmentations is useful for marketing forces of the retail businesses as it creates custom
competitive marketing for specific groups. Tesco identify its market, select and apply
through developing of profiles based on Behavioural segmentation. In this method,
customers and business market are divided as organization focuses on occasions, benefits
sought, user status and attitude. These factors are based on different behaviours which
helps Tesco to focus on new targeted audience. Here, Tesco aims the attitude of
customers and improve its strategies accordingly. Target- Tesco is targeting customers who are middle-income group with youngsters.
Other segments of Tesco are based on the buyers of quality product with reasonable
price. The process of identifying the most attractive segments which helps to generate
most profits for Tesco are based on segmentation stage, usually company target people
who want to purchase reasonable in terms of quality in compare of cheap cost products.
Tesco aims to regain the trust of stakeholders to the brand in which Tesco have the core
traditional competitive advantage in market place of 'lowest cost', which helps company
to grow. This developed retail company have low prices and high quality products to
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offer to gain potential customers. Potential customers experience excellence customer
services which led profit growth.
 Positioning- Position is final and the business-oriented stage, where business assess its
competitive advantages and position itself in the mind of customers. Tesco is using
strategy of multi-segments within products and services, to target several segments at the
same moment with different range of product. Tesco has been focusing upon high
positioning, to present attractive options for customers among its competitions. Currently
time, Tesco is using experiential positioning to focus on its customers for their health and
beauty. Organization’s extensive use of the multi-segment positioning helps to grow fast
in the competitive market.
Tesco is reinforcing and strengthen by 'Ever Little help' which will help company
to gain more trust of its customers which will help company to achieve its goal.
Exploring service excellence Tesco ruling the competitive market by satisfying customer
needs and continuously improving quality of its retail products and services. This method
help to identify and improve customer services as customers play essential role in the
positioning the brand.
Innovation in product and service design in meeting the needs of customers Launching Application- Tesco will launch application to fulfil new requirements of
potential customers and gain wider segments of customers, for which company will
develop new app online. This service design will retain its potential customers within
company and make them experience new facilities. Personalized customer experience- Tesco will also improve services for existing
products to serve its customers in the supermarket, and other physical outlets by offering
unique experience such as personalized customer experience. Company will make the
store kid-friendly and improve speed of services.
 Sustainability methods- Tesco will add sustainability methods in the services to attract
more customers and fulfil needs to existing ones. By improving versions of packaging of
the product which are eco-friendly and can be re-use such as jars containers, company
will be able to enhance it's sales.
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Process to generate repeat customer purchases
Tesco is framing new techniques to enhance relationship with its customers by allowing
incentivize with points which will make them shop frequently. Company is growing customer
base through the referral programs to improve customer retentions. Using exclusivity discount
offers to the loyal customers, Tesco has strengthened brand goodwill for itself. Loyalty
programs are most effective ways which company is using recently to generate repeat purchases.
Company is improving communication process to generate repeat customer purchases of
the product and services by providing clear details on them. To enhance market share from
repetitive purchase, communication is helping company to fulfil the customer's demand by
identifying them through feedbacks. Tesco is taking feedbacks on regular basis to make
improvements in the product and services which is also generating repeat purchases.
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CONCLUSION
From the above report it has been summarized that marketing mix is key essential for the
business to achieve success which are based to 7p's. These elements help company to generate
high revenues and potential customers as Tesco is dealing with retailing grocery products al
wide range and continuously making improvements to deal with competitive market. Report also
concluded Tesco usage of high innovative automatic scanners in the physical outlets in order to
improve place elements among services.
Further company explained, speak directly to the target audience and keeping the
activities consistent and relevant which are major rationale of marketing decisions taken by
Tesco. In the end report shed light one market segmentation of which is based on demographic
factor and innovation in product and service design such as launching application and
sustainability methods. Report explained techniques to enhance relationship with its customers
by incentivize and taking feedbacks to identifying and improve its product and services to
generate repeat customer purchases.
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Tesco. 2021. [Online]. Available through: <https://www.tesco.com/>.
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