Principles of Marketing: Tesco's Herbal Rose Soap

This report discusses the principles of marketing and their application in the case of Tesco's newly developed product, the herbal rose soap. It covers market analysis, key trends, competitors, customer attitudes, segmentation, targeting, positioning, and the marketing mix for the soap.

PRINCIPLES OF
MARKETING

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Product/Service Description............................................................................................................3
Brief description of the new product of service...........................................................................3
Outline Market Analysis..................................................................................................................4
Brief analysis of market...............................................................................................................4
Key market trends........................................................................................................................4
Main competitors and current cosition........................................................................................4
Customer's current attitude..........................................................................................................5
Main issues and opportunities.....................................................................................................6
Segmentation, Targeting and Positioning........................................................................................6
Marketing Mix.................................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

Introduction
Principles of marketing always plays very appropriate role for different companies of
businesses. Currently no business can achieve its business objectives without using different
principles of marketing. Basically, these principles of marketing give opportunity to a venture for
conducting its various marketing functions in very specific and productive manner. When a
company adopt and implement principles of marketing within its marketing operations, then it
will get a proper channel to conduct its different activities of marketing. According to these
principles, every business has required to use such marketing strategies within its marketing plan
which are trending in the market. This report discusses use of principles of marketing within the
Tesco. It is the most popular UK’s retail brand which currently has the largest market share
within its home country the United Kingdom. This report discusses promotional strategy also for
that product which recently has developed by the Tesco. Some models of marketing also have
used in this report for perfectly promoting company’s new product within the market.
Main Body
Product/Service Description
Brief description of the new product of service
Top-level management of Tesco has decided to launch its newly developed product
named “herbal rose soap”. Basically, it is a bathing soap which has developed by this retail
company after lots of research and developed (Vakil and Kasmi, 2016). This new soap is
completely similar as other soaps, but this company has included the flavour of rose, and this
thing made this soap very exclusive and specific. According to top-level management of this
company, this soap will give the great experience to different customers or people within the
market when they will be used this new rose soap. The company has claimed that, this herbal
rose soap will not harm customers physically, because this soap product has not been
manufactured through involving different harmful chemicals. This is the main reason that, this
retail company has aimed to achieve very appropriate profit margins through this new product.

Outline Market Analysis
Brief analysis of market
Currently each and every market segment is growing in very fast manner in this dynamic
manner. People or customers has wide r5amge of products and services within the market, so
that a business has always required to put its huge efforts for gaining excellent profit. There are
thousands of businesses successfully run within the market. According to current market
situation, there are Tesco has great opportunity to raise excellent profit in the market, because
this is a retail company and most people in all around the world are completely depends on the
retail businesses for fulfilling prime. Of course, a retail firm has always efficient to fulfil all
prime or basis needs to customers, like; food, clothes and many more other items etc. (Lee and
Lee, 2017). This is the main reason that, currently this company has great opportunity to generate
huge profit in the existing market conditions.
Key market trends
In this modern and dynamic, most customers or people within the market are like to buy
quality products and services, so that this factor has highly affect different businesses within the
market for making or developing only quality products and services. However, from
establishment to date, Tesco’s upper management believes in providing quality products and
services within various segments. On the other side, currently most people within the market like
to purchase products from those companies which maintains excellent relationship with all
customers. This market trend is completely favourable to Tesco, because the management of this
retail company has succeeded in maintaining excellent relations with all customers, and that’s
why most people within the market like to visit in the supermarkets and stores of the company.
In the currently market, there are digital marketing tool also effectively trending within the
market, so that the marketing team of Tesco should take appropriate step towards using digital
marketing tool within its different marketing campaigns. This is task is very necessary to this
company for highly influencing people within the market. These all some key market trends
which are affecting to business operations of Tesco.
Main competitors and current cosition
Currently there are very high market competition within the retail industry of the United
Kingdom (Coker, Flight and Valle, 2017). Of course, Tesco is the leading retail brand within the

country, but many other leading retail companies of the UK are giving very tough competition to
Tesco in the existing industry. Currently Tesco works within the many other countries as well, so
many international retail companies also gives very tough competition to this company. In the
home country UK, there are ASDA (subsidiary of Walmart), Marks and Spencer, Morrisons,
Iceland foods ltd., etc. some leading companies here which gives very competition to Tesco in
this country. At the international level, there are Walmart and Metro group gives very tough
competition to Tesco.
There are Tesco has a very effective position in the world. This retail brand has counted
as one of the most trusted retail brands within the whole world. Top-level management of this
business has succeeded in making Tesco is a very reputed brand within the market. Currently it
has the biggest distribution channel within its home country the United Kingdom (Balova,
Firsova and Osipova, 2019). On the other side, Tesco believes in providing quality products and
services within the market so that it has great opportunity to affect different customers within the
market in very positive manner.
Customer's current attitude
According to the porter’s five forces, currently there are customers’ bargaining power is
very high, because there are number of customers within the is higher than number of businesses
or ventures. This is the main reason that, nowadays a business or company need to put its huge
efforts for changing the customers’ attitude. Most customers within the are now become
completely literate, they deeply understand the policies and business models of different
companies within the market. In this situation, no businesses can conduct fraud and unethical
attempts for gaining profit. Nowadays, most customers within the market are ready to pay any
cost for buying quality products and services within the market. On the other side, most
customers expect that, companies or businesses provide them very excellent discount offers to
influence them to buy own products and services. Customers within the market avoid to purchase
things from such businesses which not maintains excellent relationship within the market
(Algaber, 2020). There are top-level management of Tesco has required to adopt and implement
some theories and strategies of human behaviour for positively changing the customers’ attitude
within the market. At the end, this retail firm will be able to gain effective return from its newly
developed product called herbal rose soap.

Main issues and opportunities
There are different issues faces by the management of Tesco within its business
environment. In the series of issues, the political uncertainty is one of the key issues for this
retail company. Basically, Tesco run its business operations within lots of countries, in which it
has always required to make good relations within local political parties for smoothly running its
business operations within the market. Then, existing pandemic coronavirus (COVID 19) is also
very issue for this company, because it has decreased the sales ratio of Tesco in the last few
months.
On the other side, when we talk about the opportunities, currently the first opportunity to
this company is positively influence people within the market by using various digital marketing
tools (Charter, 2017). Then, company has a great opportunity to company for getting an effective
workforce by providing different productive training and development sessions to its employees.
Segmentation, Targeting and Positioning
Segmentation, targeting, positioning, these are three main STP model’s stages. This
model is too helpful to different companies for achieving the large base of customer in the
market place. There are lots of ventures in the market takes many of advantage by this model, in
which there are marketing department of Tesco also has required for taking many advantages
through STP model by adopting this in its daily operations of business. Generally, STP model
indicates these three marketing stages called; segmentation, targeting, positioning. The
marketing team need to properly use these all STP stages within its daily marketing functions.
Segmentation
Segmentation is the STP model’s first stage. According to segmentation stage, the
marketing team at Tesco need to turn its whole market into small market segments according to
psychographic and geo-demographical situations. This is too necessary task for marketing
department to systematically know the real demands, needs and wants of customers.
Psychographic and Geo-demographical situations of the market mostly influence to Tesco to
develop its services or products accordingly (Marshall, Desborde and Thach, 2017). Marketing
team at Tesco can turned its whole market according to many other bases as well. For example;

customers’ religion, ethnicity, caste interest & attitude. After turning whole market into mini
segments of market, the company can be capable to systematically fulfil the real demand of
many customers in different segments of market.
Targeting
Targeting is another most useful stage in the STP model in which marketing department
of Tesco has required to target many markets and customers on the basis of different modes, like;
customers’ attitude & interest, ethnicity, religion, caste, etc. In this stage of targeting, the
marketing department at Tesco need to personally interact with different customers for building
effective relationship with them in the market. On the other hand, department of marketing need
to run many attractive and informative ads of new product of company on various channel of
marketing, like; TV, newspapers, radio, banner, social media, and billboards etc. It is too
important task for the marketing department of Tesco for targeting lots of customers specifically.
Positioning
Positioning is the final stage in STP model, in which department of marketing at Tesco
has required to set the specific position for its new herbal rose soap product within the selected
segments of market (Ghods, 2019). After selecting proper segments of market, this retail
company can be able for proceeding own newly innovated soap to sale in the market place. In the
stage of positioning, top-level management at Tesco need to enhance its functions of marketing
also to run different effective campaigns of marketing in the selected segments of market. The
Tesco needs to be focused on making own supply or distribution chain much productive for
simply delivering new soap product in the lots of selected segments of market. At the end, Tesco
can be capable to gain very excellent profit margins by selling own new herbal rose soap product
in the market place.
Segmentation, targeting & positioning stages of STP model can play excellent role for the
Tesco, so that department of marketing at company is required to systematically consider all
three stages in its daily marketing operations to gain appropriate outcomes within the selected
segments of market.

Marketing Mix
Marketing mix is very useful strategy of marketing that is efficient for providing the best
outcomes to every company in the market place (Imiru, 2018). So that, most ventures or
companies within the market highly uses this strategy in their respective operations of business.
Marketing mix tactic mainly involves 4Ps which department of marketing at Tesco has to
consider to promote its new product in productive manner in different segments of market. These
4Ps of marketing mix has been described below;
Product
Upper management of this retail business has decided for offering its new herbal rose
soap product to various customers in the market place. Branding of this developed item is
“Tesco’s herbal rose soap”, so business use this brand name during providing this new product in
the market place. Tesco has decided to offer an effective packaging also with this product.
Reason is, it is important to protect soap from dirt, water and dust, etc. This retail business is
fully aware about fact that, most customers are purchasing soap product only through those
ventures which offers soaps in an effective packaging. This is the main reason that, Tesco also
give an effective packaging to own new product herbal rose soap.
Price
The management of Tesco has used strategy of competitive pricing to offer its newly
developed soap product on appropriate price than competitors (Rahmawaty and Rokhman,
2018). Nowadays this strategy of pricing has used by thousands of ventures or businesses in the
market place. There are Tesco has another option for using strategy value-based pricing as well,
but the existing management not has agreed to use this strategy of pricing. To set price of new
product, company uses just strategy of competitive pricing. Reason is, this strategy of pricing
will able to business for achieving great competitive advantage in the selected segments of
market. In the starting stage of this new soap product, the business needs to be offered very
favourable or appropriate price to many of customers.
Place

In the starting stage, the European retail segment is the only chosen place of market by
Tesco to launch its newly developed soap product. The management of company has said that, if
this soap product will be achieved proper attention in the European retail market, then this rose
soap product can more extend within other continents. Before choosing this place of market,
Tesco’s marketing department has completed total market research in productive way (Tapp and
Rundle-Thiele, 2016). This was really important to this business for deeply knowing the main
demand of European retail market place, then Tesco was able to analysed that, if company offer
herbal rose soap in Europe, as result company will capable to gain excellent profit in this
European retail market. Tesco need to use the strategy of distribution also to systematically
deliver newly innovated soap product. Generally, this tactic affects company to make its supply
chain or distribution channel very effective, because when Tesco will be has effective channel of
distribution, then company can be simply delivered its rose soap in different selected segments of
market.
Promotion
Promotion is main task to Tesco to promote its newly innovated soap product in effective
manner within the market place. The marketing department at Tesco should be active in its
present job role to attract many customers towards Tesco through running various productive
campaigns of marketing. During promoting herbal rose soap, marketing department of company
need to involve marketing strategy of digital media in its daily marketing functions (Shaw and
Whitney, 2016). Digital media strategy is too useful to this retail company to effectively
attracting the large number of people towards its brand, because currently many of customers in
the market place has adopted many digital tools, in which Tesco can simply affect various
customers to purchase its rose soap through running many campaigns of marketing on different
tools of digital media.
Conclusion
It can be concluded that upper management at Tesco highly need to operate many of
operations and functions for achieving excellent outcomes through newly innovated product,
named herbal rose soap. There are many of effective strategies and techniques has included
above within report which existing retail business can adopt and employ in its daily functions of

business to achieve better results (Kim, Jeon and Lee, 2020). On the basis of present conditions
of market, currently very tough competition in the international retail market, in which company
should be launched its exclusive rose soap product for gaining many new customers in the
market place. There are Tesco needs to be maintained the best quality of this soap product for
affecting various customers in market for purchasing this new herbal rose soap product.

References
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