Revamping Marketing Strategies for TESCO Company

The report covers discussion about TESCO company which is a UK based company. It focuses on revamping the marketing strategies for the products and services that company would like to focus on. It covers description of an organisation, competitive organisational environment, marketing mix, improvement in branding, and impact of positioning of the brand.

Marketing Management

Executive Summary
The overall report covers discussion about TESCO company which is a UK based company.
TESCO is a multinational general merchandise retailer and multinational groceries which is
headquartered in Welwyn Garden City, England. It is basically third largest retailer in all over
the world measured according to gross revenues. This report basically focused towards
revamping the marketing strategies for that products and services that company would like to
focus on. The report will cover discussion about the description of an organisation and its
competitive organisational environment. This can be analysed with support of environmental
analysis tools in order to identify threats and opportunities that impact the particular
organisation. The report will also cover discussion about marketing mix that covers either four
P'S or seven P'S for the particular organisation. It is also required to provide recommendations
for the particular organisation that supports in terms of improving marketing mix. The report will
also cover analysis about improvement in terms of branding of an organisation and also enhance
the image and reputation of the products and services. The report also consist of analysis about
the impact of positioning of the brand.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................5
Provide brief description about the organisation and the products and services that have
chosen for revamping..................................................................................................................5
Evaluating the competitive organizational environment of TESCO...........................................7
Marketing mix(Four P's).............................................................................................................9
Evaluate how TESCO can improve its branding and enhance the reputation of its product. . .11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing management refers to the organisational discipline that focuses on the
practical application of marketing techniques, orientation and methods inside enterprises and
organisations. Marketing management is important because as it helps in terms of standing
competently in highly thriving competition into the market. In the present report, TESCO is
taken into consideration(Albattat., 2020). TESCO is a British multinational groceries and general
merchandise which s headquartered in Welwyn garden city, England. The present report will
cover discussion about description of products and services offered by the company for purpose
of revamping. In addition to this, the report will also cover discussion about its competitive
organisational environment and also about marketing mix that covers either four P'S or seven
P'S for the particular organisation. Moreover, the report will cover analysis about
recommendations for the particular organisation that supports in terms of improving marketing
mix and also about improvement in terms of branding of an organisation and also enhance the
image and reputation of the products and services. The report also consist of analysis about the
impact of positioning of the brand.
MAIN BODY
Provide brief description about the organisation and the products and services that have chosen
for revamping
TESCO is a leading multinational retailer that has more than 360,000 colleagues and
aims to serve customers on daily basis with affordable, healthy and sustainable food. They
support their consumers in terms of enjoying a better quality of life and an easier way of living.
The company was founded in the year of 1919 by Jack Cohen as the group of market stalls in
Hackney, London(Bodlaj and Čater., 2022). Company has expanded itself on the global basis
since the early 1990swhich has its operations in eleven countries. The company has diversified
itself into many areas such as retailing of books, electronics, furniture petrol, software, financial
services, telecoms and internet services.

As per the year of 2020, TESCO has 7005 shops in all over the world and in the year of
1990s its has repositioned itself from being a downmarket high volume low cost retailer which
attempts to attract range of social groups with its low cost TESCO value range and premium
TESCO finest range(Cheah. and Low., 2021). The company has diversified its services in
different formats such as TESCO extra, superstore, express, metro, one stop, Dot-com and
Dobbies. In order to hold the customers for longer period of time, they have attracted customers
through giving benefits of loyalty cards through which certain percentage of discounts can be
given to their prominent customers.
Company has to focus towards their non-vegeterain products, customer services and
technologies improvements as well for purpose of revamping. It has been observed that their
horse meat scandal also contribute towards in degrading the image of TESCO company. There
are lots of complaints that has not been resolved within a set period of time so that they can
enjoy better services from future perspective. Customers have different kinds of complaints
which include their refund procedure, their scanned machines, quality of services and products
as well. They have to use latest technologies in order to enhance the attraction of customers for
buying their products and services. For purpose of revamping they have to improve their website
and app so that they can deliver their services within a set period of time. There are majorly three
sectors which has been used for revamping purpose which include customer services, technology
improvements, quality of non-vegeterain food products.
TESCO has to focus on these sectors if they really want improve their standard into the
market. By focusing on customer complaints they can also make more strong brand image into
the market(Chernev., 2020). When they focus towards technology then they can deliver services
into innovative manner and can also contribute in terms of changing the structure of offline
stores of the company. When they focus on quality of food products then they can build strong
faith and can win trust of their customers into positive manner. When customers receive good
feedback of the quality of food products then they can't switch to other options because company
has build a very strong image in the eyes of customers into positive manner.

Evaluating the competitive organizational environment of TESCO
For evaluating the competitive organisational environment, it can be identified through
environmental tools with support of SWOT analysis and porter's five forces.
SWOT Analysis
Strengths: TESCO has its biggest strength in terms of largest store in Britain and also it has
efficient network of suppliers(Clark., 2020). It has also highest market share in the UK country
and also it has dominate the market through holding maximum market share of around 27%.
TESCO is also multiple award holders and it has awarded for 25 times. It is also the largest
private employer in Europe continent.
Weakness: Its weakness is that they have faced failure in the Japanese and US market and they
have to shut down all of its stores years later as well. They have also changed their club card
without informing to their customers. It has been observed that in a particular year they have
shown less profits in their accounting ledgers for purpose of avoiding taxes.
Opportunities: TESCO company has expanded their store through the name of Jack and it has
been performing into well mannered way(Ekici and Toksoz., 2021). They have also expanded
their operations of business in fourteen countries but there are some emerging markets such as
Turkey, Indonesia and South Korea. So these market have potential to grow. From the
perspective of growth they have partnering up with other brands as well.
Threats: TESCO has to face national economic crisis in the face of national economic factors
such as credit, taxations, government rules and regulations are the serious threat for the
performance of company in some parts of the country. There are some tough competitors of
TESCO company like Walmart, Aldi and Carrefour and they act as threat for the TESCO
company.
TESCO has opportunities in terms of exploring into new markets and by partnering up
with new brands they can support the company in terms of increasing sales and revenue for the
company. TESCO have to work smartly and deal with competitors into smarter manner so that
they can't affect in terms of their performance. When strong competitors and options are
available for customers then they can easily switch to another option and this will act as threat
for the company.

Porter's five force:
This theory is an essential tool for an organization and its management to determine the
primary origin of their competition in the industry or sector. The theory enables a business to
make appropriate changes to their business strategy and improve on areas in which the
management may be lacking (Hannin and Foued., 2021). The basic concept of this theory is
based upon 5 forces that determine the competitive strength and overall quality of a market. The
5 forces of this theory in context to TESCO are mentioned below:
Supplier power (High):
It refers to the overall power and control a supplier of raw material has on the buyer. This
powers can translate into their ability to fluctuate the price of goods and modify their quality. In
context to TESCO, the company has been able to build valuable relations with their suppliers
during its years of establishment. This has enabled them to maintain a constant price for their
raw materials as well and keep the quality stands static for the production of products. This has
been an opportunity for them as they have gained a competitive advantage in the market by
having reliable suppliers of raw material for their products.
Buyer power(Low):
This refers to the power of bargaining a buyers posses and affects the overall competitive
environment of a seller(Migdadi., 2020).This power can force a seller to decrease their prices
and offer enhanced services. In context to TESCO, bargaining power of buyers is low in the UK
country as they are not organised into proper way. It is unlikely that they can be better off if they
switched to competitors such as Asda and Sainsburry's.
Competitive rivalry(High):
This force of the theory refers to exiting competition among established businesses. This
force can impact the overall operations of a business as rival competitors can use various tactics
such as price cutting and increase their expenditure on marketing to gain competitive advantage.
In context to TESCO, as they have lots of competitors into the market of UK. These competitors
spend lavishly on advertising and on other marketing techniques as well. As TESCO is the
market leader and they to face intense pressure from their competitors. Tesco's profit margins are
also affected by the price wars launched by the Aldi and Lidl.

Threats of substitution(Low):
This refers to availability of similar goods and services that customers can purchase for
other sellers. This disrupts the competitive pricing of a business as it increases the concern
regarding their products being substituted by others (Monteiro., Correia and Braga., 2020). In
context to TESCO, the company sells wide range of products into the market and it also sells
substitutes of majority of their products. It can be observed through an example they have sold
out both butter and margarine. In the similar manner, they also sells fresh milk, condensed milk
and powder milk as well. It has been easy to argue that threat of substitute products are mostly
irrelevant.
Threats of new entry(Low):
This force refers to the threat of new competition entering the market and threatening
established businesses. This can affect the position of a business and result in decreased profits
and market share if new entrance do not encounter any barriers to entrance. In context to
TESCO, threat of new entrants into the UK supermarket is very low because of its capital
requirements. They need not to worry about any new entrants as they enjoyed economies of scale
and it has their own core competencies. It has been observed that competitors does not have
enough money in order to access to distribution networks and expertise to explore the
supermarket industry in the UK either.
Marketing mix(Four P's)
Marketing mix is a model that helps in improving the components related to the
marketing strategy of an organization. It assist a business to introduce or enhance any exiting
product in the market. This model utilizes marketing factors such as price, place, product and
promotion to help a company develop a effective marketing strategy(Ourahmoune., 2020). The
factors of their model in context to the chosen business are elaborated below:
Products: TESCO provides products in various kinds of categories which include food, pet care
products, beverages, frozen food, bakery products, technology, gaming products etc. They have
also provided services in various fields such as loans, saving accounts, credit cards, mortgages
and insurance. These services are basically used on wide basis in the UK country. It has also
different kinds of stores and also have product variety which is available and also depends on the
type of store. They have also sold out their products on e commerce platforms.

Price: TESCO basically follows strategy of cost leadership in their pricing strategy. They
provide products at low cost into the market while maintaining the quality of their products.
Company has used economies of scale and also the best channels for procurement in order to
maintain their low prices(Rather., 2020). They are continuously working with their suppliers in
order to improve and make the supply chain efficient for purpose of reducing prices. They also
provide low and stable prices after receiving feedback from their customers and also they have
cut down the promotional expense in order to further lowering prices as well. They have also
restructured their team of product sector in order to get best offers for their customers
Place: The company has more than 7000 stores in many countries and depending on the size of
their store so it has different types of stores. They are basically classified as metro, express, tesco
extra and superstore as well. These stores which are mentioned are very small stores and also
charge higher rates than any other TESCO store. TESCO has majorly distributed its products
through its offline and online medium where customers can access their products in a very easier
form. In the pandemic situation they have completely switched towards their online stores and in
that way they tried to attract customers on large scale.
Promotion: TESCO has its strong brand image in the market which totally relies onj their low
prices. Their promotional activities totally relies on the theme. They have used hoardings,
television ads and charitable events as their promotional channels. They have also used up to a
large extent promotional discounts and offered in the way of buy one get one(Shirmohammadi.,
Nikmanesh and Hasannejad., 2020). They have also loyalty card known as TESCO club card
that allows company to segment and target its customers. They have also promote and sell their
products on online basis. The company also has strong digital marketing strategy and engages
the customers through online ads , campaigns on social media.
TESCO company can improve the marketing mix through introducing new range of
products and new product line. They can also improve their distribution channel through
maintaining good relationship with their suppliers. They can set new pricing strategy in order to
attract large number of customers. They can also use social media platforms and take support of
new technologies in order to promote their products and services into innovative manner.

Evaluate how TESCO can improve its branding and enhance the reputation of its product.
The concept of brand is intangible in nature and helps a business to create a unique
identity in the minds of customers about their particular products. It is difficult for TESCO to
portray its brand into a positive manner to their customers in order to be competitive in the
market and maintain brand awareness(Stone, Mooney and Laughlin., 2021). In order to
understand its customers the company should use Keller's brand equity model as it will help
them revamp the down fall of customer services and quality of food products as well. The model
in context to TESCO is elaborated below:
Keller's brand equity model:
This model consist of various levels that help an organization to establish brand equity by
understanding their customer base. It helps in correct implementation of marketing strategies in
order to build a enhance brand equity and increase chances of expanding customer base. The
various levels of this model are mentioned below:
Identify:
This level states that for a company to bring effectiveness in its branding it must know
who they are and how they are perceived by their customers(Williams Davey and Johnstone.,
2021). In context to TESCO company, they are famous for their brand image and provide wide
range of products at lower prices so its difficult for the company to recreate its image into
positive manner in the minds of their customers with respect to quality of their products.
Meaning:
This level of the model refers to how a company is able to communicate the meaning of
their brand to its customers in an effective manner(Woo., Kim and Wang., 2021). I n
context to TESCO company, the management must focus on communication and promoting their
wide range of products and services and health products as well into positive manner. This will
help the company to boost its sales and performance as well.

Response:
This level refers to the kind of response a company expects from its customers in relation
to their products. In context to TESCO company, they have to respond politely and on immediate
basis so that they can give satisfactory answers of their customers issues and problems as well.
The company has been able to receive positive response when they are to the point and listen the
problems of their customers with patience level. In this manner, they can revamp the customer
services into positive manner.
Relationships:
This level of the model refers to understanding of a company on the relation between its
brand and how it interacts with its customers(Zimmer., Salonen and Wangenheim., 2020). In
context to TESCO company, they have to take step towards maintaining a positive relationship
between their brand and interaction with customers. For this purpose company has to deeply
analyse their customers and need to understand their preferences and choices as well. When
customer complaints have been resolved into positive manner then its is easy to build trust with
the brand and revamp this context into positive manner.
CONCLUSION
The above stated report concludes that marketing management plays a very important
role at organisational level. It has been concluded that for understanding market environment it is
necessary to use certain tools. Marketing tools and their P'S are also helpful in terms of
understanding the organisation into positive manner. The model is helpful in terms of altering the
brand image into positive spectrum. The organization will be able to gain a competitive
advantage position in the market which will result in securing larger market share with increased
profitability.

REFERENCES
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