Tesco PLC Marketing Strategies Analysis

This assignment analyzes the marketing strategies employed by Tesco PLC, a leading global retailer. It examines both macro-environmental (PESTLE) and micro-environmental (Porter's Five Forces) factors that influence Tesco's operations. The analysis delves into the company's strengths, weaknesses, opportunities, and threats (SWOT), as well as its value chain. It concludes by recommending strategies for Tesco to enhance its market position and achieve its business objectives.

Principles of Marketing
Management

Executive Summery:
In this report, I have covered the principles of marketing management that are been
essential for the organisation like Tesco PLC . I have held the various analysis to assess the
internal and external factors i.e. the macro and micro environmental factors that affect the
performance of the company. Besides this, I have also conducted an analysis to compare the
strategic position of the company as compare to its competitors and also recommended the
strategic priorities of the company.

Table of Contents
INTRODUCTION...........................................................................................................................1
Company Background.................................................................................................................1
Macro Analysis of Tesco PLC....................................................................................................1
Micro Analysis............................................................................................................................4
Competitive analysis of Tesco PLC............................................................................................5
SWOT of Tesco PLC..................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Tesco Value Chain Analysis, Dudovskiy, J. Online Available through<https://research-
methodology.net/tesco-value-chain-analysis/>................................................................................9

INTRODUCTION
Marketing is the blood and soul of the organisation or a business. The marketing helps
the company to gain a better market share. Apart from this, it also helps the business firm
or organisation to develop a better strategy and make the customers aware about the
product or services. This will help the company to meet the customers requirements and
help it to get in a better market share as compared to its competitors. An efficient
marketing plan or strategy helps the company of meet the requirements of the customers
and plan a better strategical goals (Rinallo, Bathelt and Golfetto, 2017). The company or
the organisation that has been taken into consideration is Tesco PLC. It is a multinational
retail firm which is operational in many countries along with UK. This report covers the
importance of the marketing for an organisation. The report will focus on the internal as
well as the external environment of the company that can affect its marketing strategy.
Along with this, the report will also focus on the market condition and position of Tesco
in compare to its competitors.
Company Background
The company chosen for the research is Tesco PLC. It is a UK based multinational
company which act in the retail sector and is operational in many countries all around the world.
Besides the retail sector, the company also operate in telecommunication and banking sector. It is
a multinational corporation that provides its customers with a wide variety of products and
services includes grocery, clothings and retail products. It is one of the market leader in field of
retail sector and has the largest number of retail outlets in and abroad UK. The services are very
efficient and effective which grants the company a better customer base and satisfaction level. In
a whole it is a one stop shop for many of its customers I UK as well as on the worldwide level
and provide a great range of services to its customers.
Macro Analysis of Tesco PLC
The PESTLE analysis helps the company to identify the external or macro factors that
can affect the overall functionality and profitability. It includes the factors of the external
environment of the company like economy, social conditions and political factors that can affect
the operational functionality of the company (Pasquier and Villeneuve, 2017). The PESTLE

analysis helps the company to gain a brief idea about these factors and how to tackle any adverse
condition caused by them. The Tesco PLC will conduct the PESTLE analysis to develop a better
idea about the overall functionality and what measures it can take to handle this conditions. The
PESTLE analysis of Tesco PLC is as follows:
 Political factors: the political factors plays a crucial role in the overall functionality of
the company (Kotler and et.al., 2017). The political factors affect the functioning of the
company. Being a global brand and spread in many countries, Tesco PLC is very
susceptible to the changes that can occur on the political platform of the countries of its
operation. The political factors or the government decides and draft the essential rules
and laws to mandate the correct and lawful practices of the trade in that nation and to
ensure the rights of the customers and suppliers. In order to meet the political factors, the
Tesco PLC can get the knowledge about the latest trade practices and plan accordingly to
meet the requirements of the local as well as the national government so that it can
perform effectively and efficiently. Failing in the in biding of laws and regulations can
have a negative effect on the functionality, productivity and profitability of the company.
 Economic factors: The Economic factors are the most crucial and important factors that
are been taken into consideration for the operational capability and profitability of the
company. It can help the Tesco PLC to decide and determine the efficient and effective
planning to run its business accordingly to the economic conditions of the nation it is
operating. The Tesco PLC will look after the positive growth in the economy of the
company to expand its business as it will ensure the company about the good market
growth. A good economy will improve the purchase power of the customers, causing a
rise in the demands and requirements for the products and services of Tesco PLC. On the
other hand, the depressed and negative economy will reduce the customers craze towards
the services and products and this can adversely affect the sells and profitability of the
company.
 Social factors: the social factors are also taken into the consideration while operating a
business. The Tesco PLC will look after all the possible social factors that can affect the
functionality of the company (Rinallo, Bathelt and Golfetto, 2017). The social factors are
needed to be take into consideration by Tesco PLC to ensure that its business is operated

in a better and efficient manner as the customers and the employees at the outlets of
Tesco PLC in a country will be the part of the society. And considering their social
requirements and demands is very important for the company to carry on its business in
that country. Besides this, as Tesco PLC is operational in many countries, it has to be
exposed to the social practices and beliefs of various nations and has to plan its
marketing strategy accordingly to meet the market requirements and policies that govern
the operations of the company (Rinallo, Bathelt and Golfetto, 2017). Any negative effect
on the social conditions of a country will have a bad impact on the operations of the
Tesco PLC which may cause a decrease in its market share and profitability.
 Technological factors: With the advancement of the technology, there have been a new
scope of operations and successful business for the Tesco PLC. The usage of the latest
ad appropriate technology at the outlets as well as the operational system of the Tesco
PLC will help the company to gain a better market share and will also help the company
to meet the customers and suppliers requirements and demands more efficiently and in
less time. The usage of the latest and advance technology that is bee under the practice in
the market will help the Tesco PLC to meet the customers problems and demands in a
very efficient manner. Also, it will attract the technology loving people and help them to
meet their requirements. Besides this, the technological advancement will help the Tesco
PLC to meet the operational requirements and take the effective measures to make its
services more effective and efficient. The company has to look after maintaining the
technological requirements of the company.
 Legal factors: The Laws or rules and regulations that are been decided by the trade
unions and the government of the country will play a very crucial role. The legal factors
such as trade laws and practices are been taken into the consideration in order to
determine a better functioning of the company. The laws and regulations will help the
company to carry out their functionality in a more appropriate manner (Pasquier and
Villeneuve, 2017). The legal factors will not only determine that the consumer rights are
been maintained but also see through it that Tesco PLC is practising the business in a
legal and correct way without cheating in the competition.

 Environmental factors: the environmental conditions too plays a very important role in
the conduction of the business of Tesco PLC in an international market scenario. The
environmental conditions will determine that the company is operating in very efficient
way and with ease. Any change in the environmental condition can affect the overall
functionality of the company. The Tesco PLC has to take into consideration the
environmental factors like earthquake, floods and volcanic eruption to regulate its
business in very efficient way.
Micro Analysis
The micro analysis is conducted to identify the essential internal factors that can affect
the overall functionality of the company like Tesco PLC. The micro analysis will help the
company to determine its inner traits that will help the company to tackle any sort of disturbance
and performance affecting factors that can put an impact on the profitability and market share of
the company (Kotler and et.al., 2017). This will help the Tesco PLC to manage its resources and
handle any sort of problems that occurs while operating the business. The Micro analysis of the
Teso PLC is as follows according to Value chain model:
Illustration 1: Value Chain model
Source: Tesco Value Chain Analysis

 Inbound logistics: The overall management of the Tesco PLC is based on the lean and
agile method which helps the company to manage its resources and processes in a very
efficient and precise manner (Hsiao and Ma, 2017). This has improved the internal
logistics of the company.
 Operations: Tesco PLC has opted for a better operational management in order to
improve the number of its supply chain management and has effectively used IT
approaches and measures that are been taken into consideration for improving the
quality of services.
 Outbound logistics: Being one of the market leader in the retail sector, Tesco PLC
helps the customers with the online and offline deliveries of the products and services.
Besides this, the retail outlets of the company are strategically placed in order to gain a
better logistic and reach to its customers.
 Marketing and Sales: Tesco PLC uses the latest and efficient methods of marketing
that are been implemented in the company in order to promote its services and goods
and get a better sales ratio. The use of IT for the marketing and selling of goods act as a
competitive advantage for the company. Also, the usage of Greener living scheme has
helped the company to produce and promote a better ad environment friendly products.
 Services: The Tesco PLC practises the dual approaches of cost leadership along with
the product differentiation that has helped the company to gain a better market share. It
is based on the efficient practising of self service centre, financial services and directly
focused marketing.
Competitive analysis of Tesco PLC
Competitive analysis helps the company to identify its competency as compared to its
market competitor and take the preventive measures that are been taken into consideration to get
a sustainable development and growth. The two major competitors of Tesco PLC are Asda and
Sainsbury's, which are active in the retail sector (Gummesson and Gummesson, 2017). These
two company gives a stiff competition to the Tesco PLC and are a major threat to its market
share. To identify the threat factor, the BCG matrix approach can be used which is as follows:

 Cash Cows: They are the conditions where a company has a high market share in the
slow growing industry. The Tesco PLC is one of the largest retail company and is
operating in many countries (Dineva, Breitsohl and Garrod, 2017). Likewise, Asda and
Sainsbury's are also operating in the retail sector but there scope is not as bigger than the
Tesco PLC. Thus, they will be in less effect to the change in the economic conditions, but
Tesco PLC will be highly susceptible to the effect of changes in economy. It is very
important for the analysis of the value and revenue generation.
 Dogs: This are the conditions when a slow growth industry with low market share
practised in the market. Being one of the largest retail sector company, Tesco PLC will
have a better market share and growth as compared to its competitors, Asda and
Sainsbury's. Although Asda is emerging as a major company in retail sector, its growth
rate is lower than as compared to that of Tesco PLC.
 Question mark: It is a condition when the organisation is having a low market share in
the high economic growth. The market share of Tesco PLC is high in the retail sector but
its competitors are still struggling to get a better market share to meet Tesco PLC in
competition. Such condition gives rise to the gradual decrease in the compitition for
Tesco PLC as the competitors will be unable to meet the growth rate of the company.
 Stars: It is marked as a condition with high market share in high growing economy. This
condition in the market will prove as an ideal condition for the growth of the Tesco PLC
along with its competitors (Campelo, 2017). The Tesco PLC will try to increase its
market share while the competitors like Asda and Sainsbury's will try to increase their
market share. It will be a win-win situation for all the companies plying in the market.
SWOT of Tesco PLC
The SWOT of the Tesco PLC will help the company to gain a better market share. It will
provide the company with the information of its strengths and weaknesses that are been held by
the company (Atwal and Williams, 2017). Also, it will give the company a positive idea about its
potential threats and opportunities so that they can act accordingly. The SWOT of Tesco PLC is:
SWOT Analysis
Strength Weaknesses

 Tesco PLC is one of the largest retail
operator with outlets in many countries.
 Its products provide a true value for
money, convenience of use and a wide
variety of options.
 Utilization of the modern techniques
and business ideas like Tesco express
and Tesco metro has been proved a
great success.
 It also provides the facility of online
shopping and home delivery which
makes it more popular than its
competitors.
 Also the capability to bulk buy the
goods help the company to gain a better
market share as compare to its
competitors.
 The providence of wide variety of
products and services and online
purchasing has increased the debt count
on the company as the customers are
now purchasing the goods on credit.
Threats Opportunities
 With the rise in the competition and
many companies entering in the retail
business, Tesco PLC faces a deep threat
of getting outnumbered in customers
count and it may lead to the lose of its
loyal customers base.
 Besides this, the changes in the
political, environmental and economic
conditions and change in customers
taste can also arise as a threat factor.
 With the technological advancements,
Tesco PLC can use the approach to
develop a better market share. It can
enter into the market of electronics
goods and services to attract large
number of customers.
 Also providing the new goods and
services to the customers will increase
their creditability towards brand.

CONCLUSION
Thus from the report it can be concluded that marketing strategies are very essential and
important for the company like Tesco PLC. It will provide the company with essential strategic
and decision making idea which helps the company to tackle the situations that can occur in
future. Based on the macro and micro analysis, this can be suggested that company should make
the appropriate policies and plans to achieve its targeted goals and prioritize their targets. Apart
from this, the company can work upon the opportunities that are been identified in the analysis to
gain a better market share.

REFERENCES
Books and journal
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!.
In Advances in Luxury Brand Management. pp. 43-57.
Campelo, A. ed., 2017. Handbook on Place Branding and Marketing. Edward Elgar Publishing.
Dineva, D.P., Breitsohl, J.C. and Garrod, B., 2017. Corporate conflict management on social
media brand fan pages. Journal of Marketing Management. pp.1-20.
Gummesson, E. and Gummesson, E., 2017. From relationship marketing to total relationship
marketing and beyond. Journal of services marketing. 31(1). pp.16-19.
Hsiao, A. and Ma, E., 2017. Internal marketing. Routledge Handbook of Hospitality Marketing.
Jaworski, B.J., 2017. Commentary: advancing marketing strategy in the marketing discipline and
beyond. Journal of Marketing Management. pp.1-8.
Kotler, P.and et.al., 2017. Principles of Marketing, an Asian Perspective.
Lindgreen, A. and Di Benedetto, C.A., 2017. The future of Industrial Marketing Management.
Pasquier, M. and Villeneuve, J.P., 2017. Marketing management and communications in the
public sector.
Rinallo, D., Bathelt, H. and Golfetto, F., 2017. Economic geography and industrial marketing
views on trade shows: Collective marketing and knowledge circulation. Industrial
Marketing Management. 61. pp.93-103.
Online references
Tesco Value Chain Analysis, Dudovskiy, J. Online Available through<https://research-
methodology.net/tesco-value-chain-analysis/>