Principles of Marketing: Tesco's Market Strategy and Marketing Mix

This report analyzes Tesco's current situation through SWOT analysis and evaluates its market strategy, including segmentation, targeting, and positioning. It also covers Tesco's marketing mix, including product, price, place, and promotion. The report concludes with suggestions for future improvements.

PRINCIPLES OF
MARKETING

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organization current situation .....................................................................................................3
Market strategy of Tesco.............................................................................................................4
Marketing mix of Tesco...............................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

EXECUTIVE SUMMARY
The research is aimed to carry out research of various aspects of Tesco plc, with this
regard key aspects such as organization's current situation, here SWOT analysis has been
executed. A market strategy was also presented, where elements such as segmentation, targetting
and positioning were evaluated. At the end, seven Ps were also taken into consideration.
INTRODUCTION
Tesco plc is one of the biggest retail giant, it is UK based organization which is operating
its business in more than 11 nations. The organization is well-known for its wide range of
products in the market. Tesco is providing its products through online stores, at present the entity
is having around 31% market share in the retail market (Tuten, 2019) Tesco is having more than
four thousand stores in only UK, at the same time the entity is also operating its online stores too
in order to hike market share. The report is aimed to discussed various dimensions such as
internal performance and seven Ps of marketing. All key elements such as price, products,
promotion will be broadly evaluated in the report.
MAIN BODY
Organization current situation
With the help of SWOT analysis the current situation of Tesco can be identified which discusses
strengths, weaknesses, opportunities and threats.
Strengths
Tesco is positioned at top retail grocery store in the market of UK. It has efficient
supplier network with simple model of decreasing cost with efficient waste management system.
The company has grown to high level as having 3751 stores in 2008 and having the 6800 stores
in 2019, with this the annual income has also increased. It has also updated to in field of M-
commerce with app feature to online shoppers and RFID barcode system for counting the
product of shoppers (Bonaparte, 2019).
Weakness
The operational performance of some stores in certain countries is always been low,
which reflects marketing department is not performing well research before opening up with new
stores. There is Low cost technique of company which allows product to the customer at
minimum price to customers, but the costing of this strategy is costing the organization in lower
terms.

Opportunities
Emerging to new market and expanding the business operations to in several countries
with growth potential. In present situation the opportunity for Tesco is to reinforce the
appearance in online space. Now the market is experiencing recovery so Tesco is having a good
chance to hike its sales and revenues, further it can offer tough challenge to the competitors.
Threat
The major threat could be Brexit will affect 80 percent of imported food which is sold in
supermarkets. The restriction at a point will position flow of imported goods from EU to UK
have the negative impact on supply chain of Tesco (PHILIP and KOTLER, 2020). Key
competitors such as M&S, Sainsbury are also expanding their operations which may create
bigger threats to the entity.
Market strategy of Tesco
The macro marketing decisions of Tesco are described by the process of environment
scanning which includes political, social, economic, technological and legal factors. Micro
environment factors refer to impact of internal and external stakeholders of the organization as
well as the level of competition in industry (DeLong and Vander Schee, 2020). The product and
service are offered by the company where the other organizations cannot be attractive to the
people in equal terms due to different kind of requirement among people. So Tesco follows the
Segmentation, targeting and positioning. Tesco marketing strategy is to target the ideal
customers taking the help of its well positioned brand image. It offers the broad variety range of
products and services indifferent terms where the segmentation, targeting and positioning is
implemented in relation to brand as well the individual products.
Market segmentation is based true concept to which the market products are not
homogenous to the need and wants. It is division of population member in groups as per the
requirements and criteria of enhancing products and services which aims to fulfil needs and
wants. Buying behaviour has direct impact on the marketing activity in huge range of buying
circumstances. Positioning of product includes facing the individuals elements of marketing mix
in the process of attracting the targeting customer in the effective manner.
Tesco Target market are the people who are conscious about cost and make dealing
with bargaining. With applying the pricing strategy it will attract their target audience to make
their more interest in buying Tesco products so this will increase their relation to new people as

well. For the people affordable products are also available which gains the attention of cost
conscious people which helps the company to succeed as well maintaining the range for such
people. Many people came in target with digital marketing strategy of Tesco where people were
offered with reward point which can be used as discounts while making purchase by online
sources. Many of the digital marketing tools such as social media, online advertisement etc.
promoted the marketing of company. Another change was adopted by the company where
packaging of product is converted into attractive high quality (Vatandost, Namamian and
Ghobadilemoki, 2021). New packaging and designs efforts increases the attention of consumers
and make them to take interest in buying the products.
Positioning of company is also reflected by the low cost strategy and affordable range of
products. The company has good image and it provides the services across the country and the
quality of products are provided in affordable range with its competitor which add values.
Marketing mix of Tesco
Marketing mix of Tesco covers the 4ps and it helps the company for positioning itself
competitively in the market to achieve the goals and objectives.
Product
Tesco has variety range of products offerings at several stores and it is vast to provide
need and preference of customer with different sections of markets. The various range of
category of products is food, frozen food, beverages, bakery products etc. the stores and variety
of products which is available according to the depends upon the type of store. Some products
are available throaty e-commerce platforms, whereas 30+ food categories are revised and it has
decreased the product lines for focusing in essential products. In the service sector, there are
banking service of Tesco which provides the financials service like loans, credit cards and
insurance. Such service used by many of the customers in UK (Swanson and Davis, 2020).
Price
Price pays the key role in attracting the attention of customers and following the proper
pricing strategy will bring more customer relation to the company. Tesco provides the low price
goods with maintain the quality of their product. For this Tesco adopt the economics sale and
best channels for acquisition to hold up with lower prices. For its supply chain the company
work on continuous basis with their suppliers for enhancing their supply chain more efficient for
decreasing the prices. Apart from this it has unique program namely Brand Guarantee where the

customer will get branded products at lower prices at another place where Tesco will match
prices when customer will buy more than 10 or more products. Recently it has introduced the
new food brand at affordable prices.
Place
There are more than 7000 stores of Tesco in several countries, as with depending on the
size and similar step there are various types of stores. They are broad and classified as Tesco
Express, Metro, Extra, Superstore (Putsenteilo, Nyanko and Karpenko, 2018). Tesco Superstores
are the huge supermarkets where groceries and small variety of food items are sold. On the other
hand Tesco Express is the small store which carry essential need and high margin products and
those products are higher priced compare to pother stores. Tesco Extra are the large stores where
variety range of products are hold under single roof such as groceries and general goods, it
allows making everyday shopping in one roof. There are small stores which charge high price as
compare to all other stores.
Promotion
Tesco promoting activities are centres of theme and it has build the own brand identity
which relies on lower p[rices. Tesco uses hoarding, advertisement and charity events as
promotive channels. Also, there are large level promotional disco9unts and offers like buy one
get one which company provides for their marketing strategy. There is Tesco loyalty card which
is known as Tesco Clubbed in which segment and target customer s are attracted. The owner of
the card gets points which can be redeemed by individual in the form of discount while they
make purchase at store (Damayanti, Koeswo and Sarwiyata, 2018). There is digital marketing
technology which interact with people through online ads, promoting campaigns in social media.
CONCLUSION
Form the report above it can be concluded that the current situation of the entity is very
dynamic in nature. The report broadly discussed various aspects of current situation, with this
regard SWOT model has been used. Further, a marketing strategy was also developed where
different points such as segmentation, targeting and positioning were executed. At the end of the
report marketing mix of Tesco plc was articulated where various elements such as product, price,
promotion etc. had been deciphered, covering its current strategies and how it could have gone
better for achieving higher in the future was articulated.

REFERENCES
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