Tesco's Marketing Strategy Analysis

RUNNING HEAD: Principles and Practice of Marketing
Principles and Practice of
Marketing

Principles and Practice of Marketing 1
Contents
Background of Tesco.......................................................................................................................2
Theory of Marketing Planning Gap.................................................................................................2
Marketing Mix of Tesco..................................................................................................................3
Marketing Tactics of Tesco over the last 5 years............................................................................5
Evaluation of success of the Marketing Tactics..............................................................................7
Recommendations for Future Marketing Tactics............................................................................8
Digital Marketing by Tesco.............................................................................................................9
Analysis of website of the company..............................................................................................10
Application of 5Ss in Tesco’s digital marketing plan...................................................................11
Range of additional Digital Marketing Techniques.......................................................................13
References......................................................................................................................................14

Principles and Practice of Marketing 2
As the Marketing Consultant for Business Consultants Ltd. I would like to through some light on
the background of the marketing tactics adopted by your organization Tesco along with some
suggestions for more progressive results.
Background of Tesco
Tesco PLC is a multinational retailer for groceries and general merchandise having its
headquarters situated in United Kingdom. It was founded by Jack Cohen as a group of market
stalls in the year 1919. Tesco store was first opened in 1929 and later on expanded rapidly all
over the word with around 6,553 stores in the year 2017 (Tesco, 2017). It is a company listed on
the London Stock Exchange engaged in the retailing of books, apparels, furniture, toys,
electronic products, petrol, internet facilities, financial facilities, telecommunication and
software. It has now become one of the largest retailers in the world in terms of profits. The basic
purpose of Tesco is to provide its Britain’s customers a little better experience every time with a
view to make their lives easier by providing them great products at great prices.
Theory of Marketing Planning Gap
Marketing planning can be simply defined as formulation of a strategy involving the advertising
and marketing efforts along with marketing objectives regarding upcoming year. The marketing
planning gap occurs when the actual results are not equivalent to the desired results (Dibb and
Simkin, 2008).

Principles and Practice of Marketing 3
For the purpose of overcoming this gap, there are several ways like intensive growth (further
possible development opportunities are recognized within the prevailing businesses, Integrative
growth (acquisition or development of businesses having connection with the current businesses)
and diversification growth (addition of businesses that are completely unrelated with the current
businesses) (Kowalik, 2011).
The key marketing objectives of Tesco include achieving a foremost position in its respective
field i.e. retail industry in each and every market it functions in. Secondly, Tesco wants to be
recognized by everyone as a brand with highest quality and lowest prices. Another purpose of
marketing by Tesco is the promotion of their flexibility as a multi- channel retailer along with the
aim of keeping their Britain customer’s satisfaction as the prime focus. Somewhere and
somehow some deviation occurred from the set objectives but Tesco took steps to get back to its
desired position.
Marketing Mix of Tesco
Marketing mix consists of factors that have ability the influence the users of the product to
purchase it and is under the control of an organization (Richter, 2012). This strategy is popular
among new ventures, small, medium and large scale business firms (Lamb, Hair and McDaniel,
2011). There are 4 factors involved in the Marketing mix also known as 4Ps of marketing-
product, price, place and promotion of a product (Pearson, 2013).
Product- a large range of products is provided by Tesco with a view to satisfy each and every
probable requirement of its buyers. Its product range includes food, electronics, clothing, etc.
Within every category, a variety of choice is provided in terms of brand, type, local produce,
intercontinental cuisines in food and various other choices such that the ultimate satisfaction of
the consumers can be achieved.
Price- Tesco aims to provide highest quality of products at the lowest possible prices. It is the
Tesco’s strategy of keeping the low prices which has made it popular among the consumers and
helped it in attaining the leading position in the market leaving all old brands behind. The
economies of scale enjoyed by the organization are passed on to the customers in the form of
cost advantages which keeps the customers satisfied. Club card system is also used by the