Strategic Marketing Planning for Tesco: Impact of Brexit and Pandemic

This report analyzes the impact of Brexit and the pandemic on Tesco, one of the largest departmental supermarkets in the UK. It discusses the organization structure, environmental analysis, and corporate and marketing objectives. The report also presents a strategic marketing plan for Tesco to regain market share and boost sales. The plan includes segmentation, targeting, and positioning strategies.

Strategic Marketing
Planning

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
TASK...............................................................................................................................................4
Organization structure.................................................................................................................4
Impact of Brexit and Pandemic...................................................................................................5
Environmental analysis:...............................................................................................................6
Corporate and Marketing objectives of the organization............................................................8
Marketing Strategy selection.......................................................................................................9
STP approach...............................................................................................................................9
Assessment of the 7P’s;.............................................................................................................10
Implementation, control and evaluation....................................................................................12
CONCLUSION..............................................................................................................................12
References......................................................................................................................................14
Books and journals:...................................................................................................................14

INTRODUCTION
The report aims to present critical conditions of the retail industry with the effect of covid-19 and
the government regulations of lockdown. The businesses are facing use losses and going down
the sales percentage into the period as people are become conscious and not allow going
anywhere. Therefore, this has a major impact on retail organisations in UK. For that instance, the
business required an effective marketing plan for the period of lockdown over 2 to enable their
competencies into market and re-grow at initial basis. This report is going to present the covid-19
impact on one of the largest departmental Supermarket Tesco; it is the most popular and ranked
under 3rd Supermarket of UK (Chomba, 2018). Required plan which demonstrate goal of
environment and marketing strategy that would be effective once the covid-19 impact lowest
down and they could Reform and regain the market by boosting sales, attracting large customers
and providing product and services at an effective price and quantity. Therefore the report will
analyse the competition and economic social and political interferences to plan marketing
strategies effectively followed by 7 P's of marketing.
MAIN BODY
TASK
Organization structure
The organisational structure shows how organisation performs their business practices. This
structure is depending on the size of the business. It goes large effect of large business practices.
The organisation structure of Tesco shows that follow a hierarchy between the levels of
departments that are finance marketing human resource and IT Department. In order to
accomplish their aims and objective, Tesco require resources like staff and financial funding at a
huge Manner (Chummun, 2019). There are 4, 23,092 employees engaged into the company and
they follow the roles and authorities which define into their organisational structure.
The departments flow from regional manager to store manager and they follow the chain of
command of food trading manager, non-food trading manager and personal manager. Under

these departments heads, there comes fresh food manager ambient food section manager and in
non food section. There are electrical and clothing managers. Then there comes an assistant.
Impact of Brexit and Pandemic
The impact of the pandemic has seriously been rising into negative way for the Retail Industry.
As, the industry is affected with the covid-19 and as well as brexit. The main impact of pending
make is put on Retail Industry as the customers have shift their purchasing demand to online
sectors. Majorly the Retail Industry has not much impact on Retail Industry as the brexit Policy
was came before the pandemic and retailers are being habitual of dealing with the situation . the
UK consumer shopping habits to the online channels that much impact on Retail Industry who
do not have online shops which many retailers are going into negative cash flows. The issue of
brexit come into the labour force which work from the European Union that require right of
families and people is there come to UK as an EU citizens (de Mello Freire, 2017). Also the
brexit impact on financial funding in terms of foreign exchange as the UK will charge high
interest rate. Good impact on additional cost which may come in Retail Industry by European
Union market. The impact of pandemic and lower down all the sales performance of Retail
Industry as people are jobless and do not have much purchasing power also they avoid to shop
through retail outlets. The positive impact of pandemic on Retail Industry of UK like Tesco has

seen growth into their online channels through websites and collaboration. Therefore, retail
online shop arising the revenue by operating more business practices and improving their
strategies to attract large customers during the time of pandemic.
Environmental analysis:
Environment analysis is important part for strategic marketing planning as in order to
plan a market for targeting and positioning, there is need to identify and analyse the situation
around the business which has impact significantly. So that the environment analysis include all
the aspirants and legal constraints that a business need to consider while taking any decisions.
These environmental analysis help in making the strategic plan more successful by identify what
does the environment and Society wants from the business.
Pestle analysis: it is the most required tool to analyse the local environment of a
business bye evaluating factors which are influencing most on business practices. It is helpful to
better understand the political social environmental and economic factors due to which
organisations facing obstacles in performing well in to markets. The analysis of major factors is
described below:
Political: this factor is majorly influence about the political interference is such as Texas duty
charges to export and import and other terrorism involve into the country. As the retail industry
use impact of brexit to the European Union as they are not effectively export their goods in to
European countries. Therefore this has impact negatively on that go, as they are lower down their
growth due to the Taxes and political interference which needs to be resolve by making changes
in production and selling cost so that they could not get affected by brexit. Also, the pandemic
impact on Retail Industry in terms of export and import (Fitri, Nasukah, and Tayeb, 2019). Due
to government regulations no retail outlets will allow to deliver their goods which are not
essential. Tesco facing financial rates due to large export duties on delivering goods from one
country to another.
Environmental: The environmental impact on Retail Industry by rising sustainable social
responsibilities on supply management, transportation and create much influence on Retail
Industry to not harm environmental condition as there is already the situation of pandemic.
During the pandemic, Tesco has perform the duty to perform CSR and provide the PP kids

across the UK and other countries. This has medium impact on the organisation. Also, the
company e provide funding and donations to the required health Institutions to support the
society which has positive impact on the organisation.
Social: Social impact generally include the customer Trends, lifestyle consumer behaviour and
their beliefs regarding culture values and ethics. So that the organisation need to fulfil the entire
requirement as per society in order to gain success. During the crisis of pandemic and brexit,
Tesco has negative impact due to brexit as they could not export their goods at a low price
category which lower down customer satisfaction (Hermelin, and Gustafsson, 2021). But during
the pandemic, Tesco have managed to deliver and supply most demanded goods at the door steps
of their customers. But still there is the requirement of more investment in order to move into
labour market and provide minimum wage to the society.
Technological: Technological up gradation is highly required in in Retail Industry in order to
provide effective services across the globe. These Technologies include artificial intelligence,
social media marketing and other mechanism for manufacturing and production for staff. The
pandemic has reported positive impact on Tesco by undertaking the technological advancement
in terms of giving customers the opportunity to order food through online websites and this
secure the Private data of customer. Therefore technological factor has a low impact on
organisation due to having strong financial condition and stronger connectivity to the users that
they choose just as food product through online sites. Also the company have opportunities to
conduct many surveys and campaign during the time of crisis in order to support local people by
making people aware through social Technologies.
Legal: In UK, There are several laws which needs to undertaken by Retail Industry in terms of
employee ride customer exploitation and health and safety. This does impact through pandemic
on the Retail Industry as businesses have not growing the revenue so they do not have wage for
paying to their workers. As the brexit impacted into UK , it enables the law of family-friendly
implications. So that the industry have negative impact of legal sector but it has medium impact
on Tesco as the company have good financial position and large market integration by fulfilling
all the legal requirements and provide the rights of their employees even during the time of
pandemic.

Economical: This factor includes the impact of economy in terms of inflation exchange rate,
frequency fluctuation demand and supply. With the effect of brexit and pandemic the Retail
Industry widely affected by the pen the make as the economy has lower down its growth rapidly.
Due to covid-19, the market performance leads to poor and people are mainly depend on online
shopping. There were many changes seen in to consumer buying behaviour (Khorasani, Hatami,.
and Kiakojoori, 2017). This has lead to negative impact on Cost factors as businesses need to
hire their cost knowledge to survive into market. Tesco also came under the impact of economic
crisis due to high inflation and low economic growth and the decision regarding leaving
European Union has impacted serial Lee on the organisation field staff
Corporate and Marketing objectives of the organization
The objective set the criteria for the organisation which shows there in and target into the market.
As the Tesco also working into global level and aims to capture the market during the time of
pandemic and living the European in union. They are in serious need to stable their corporate and
marketing objectives so that they could League in the market growth and make the company best
out of all. These objectives are focused on smart plan which are specific measurable attainable
reliable and targeted. These objectives are on the basis of both customer and company point of
view which are described below:
Corporate objective Marketing objective
 Tesco aims to improve the performance
of their staff and employees by
motivating them to work for society.
 To improve the level of productivity,
staff will be getting trained through
online platforms by conducting meeting
regularly.
 To make the employees more superior
for delivering customer satisfaction
(Schellenberg, Harker, and Jafari,
2018).
 Up gradation of more categories into
 The foremost aim is to capture the
whole retail market into the globe.
 After the pandemic, the market share
needs to be boost up to 40%.
 To regain market share and be most
active retailer within the period of 3
months.
 To increase the sales capacity by 20%.
 To increase the customer base by being
available for 24 / 7. Also create
awareness about fair trade policies.

online websites for customer
convenience even after the pandemic.
 International expansion.
Marketing Strategy selection
The marketing stages include importance of marketing strategy is a path to get success into the
market. The marketing strategy will discover all the areas which include objective in the
marketing channels and the plan which describe the timing. This will make the business practice
is easy for Tesco order to achieve their objective.
In order to get success in the competitive market which is raising due to pandemic crisis ,
the Tesco needs to more focus on customers and their demands extensively. As people will look
for the better products that do not harm their health and will be safe for children and young age
people. Therefore, the strategy will include targeting the market by making segmentation which
divides the customer as per their demands customer behaviour income level and demographic
factors. By positioning the market, the company will take competitive advantage by taking first
mover stand on customer preferences. As the company objective to increase their sales by 20% it
is essential to target the market by making potential customers and their existing loyal customer's
retain toward the organisation. By making targets, Tesco amplify their marketing plan and
strategy according to their set objective and criteria (Toke, and Kalpande, 2021). So that, it will
ensure success and generating customer base which could not affect customer loyalty even into
the crisis.
STP approach
The marketing strategy chosen by Tesco is STP approach. This marketing strategy is a whole
sum of all the marketing factors that are required to complete their objective and globalise the
product by increasing sales customer satisfaction and brand awareness and lowered down the rest
of harm customer loyalty. Therefore, STP approach is the best suitable strategy which covers the
mass area and carries out the maximum opportunity for the Tesco.
Segmentation: strategy includes target the customer as per the demographical cycle
logical needs to stop the basic criteria of every organisation into retail sector is to attract more

number of customers by eliminating competition. So that the marketing planning includes
customer's taste their income factor, demand and culture they follow. Therefore Tesco needs to
attract customers by providing health facilities and products by cutting down the prices. The
segmentation strategy , divides the customer in two segments which become easy for Tesco to
reach their potential targets and increase the sales as per their objective.
Targeting strategy: target the market as per their demands and suitability is the most
crucial part for every organisation. After making segmentation of the people who are the most
potential individuals that would contribute in organisation success, the Tesco needs to target the
most of suitable individual into every segments as per their age income and preferences. This
could only be done by knowing the customer behaviour appropriately(Ungerman, Dedkova, and
Gurinova, 2018). Once the pandemic will get over, people will still focus on online shopping due
to the effect of covid-19 stop so that the Tesco needs to much more focus on building online
channel strong and provide what their customers want.
Positioning strategy: After making the segments and targeting the market as per
costumer behaviour and their choices, there comes a requirement of positioning the brand when
the market was very low and customer's are not focusing on purchase. So that Tesco aims to
increase their productivity, Tesco needs to rebuild their brand name into the market by serving
the population which is the most required during the time of pandemic and brexit. This could
only be possible by supporting other Institutions and corporate sectors so that they would take
advantage of customer base and evaluate their attention to the fair trade product policies.
Assessment of the 7P’s;
Marketing mix is one of the most popular Marketing concepts. The element of marketing mix is
used by every Organisation in order to fulfil their requirement of customer and increase sales
revenue. This shows company's marketing strategy in terms of new product development and
targeting the potential customers. At the time of crisis which impact on Retail Industry due to
brexit and pandemic, the retail sector is significantly need appropriate marketing strategies and
plan their production prize place and people according to the market requirement. In this tough
time Tesco fulfil their responsibilities bye marketing their product through social media in order
to serve people globally (Vieira Jr, 2019). This could be only possible by adopting the elements

of marketing mix which shows 7 principles of making their service is more effective. These
elements are described below:
Product: In marketing mix, product is the most essential element on which all the productivity
and profitability of business is depend upon. Product needs to be significant as per customer
needs and fulfil market demand. Tesco is known for its wide variety of product in clothing food
sector banking services consumer goods and many more. Therefore people are highly satisfied
with their product range as the target people starting from below age to higher age. All the
products are available under one roof of supermarket with a wide variety and features. After the
lock down, Tesco need to include a product range of organic and healthy goods which have good
supplements for rising the immunity power so that it could fulfil the demand of people who have
health concerns both in retail outlet and online shop.
Price: Pricing strategy must include organisation cost in manufacturing the product and
sufficient level of property that could be bothered by customers. Tesco is making their price
subsequently lo as compared to their competitors. Which shows that Tesco standing upon the
customer expectation why not increasing the price and maintaining the quality as well? Test for
deals in low price and high quality product which is most liked by their customers. Also the
company have many sustainable activities that support society by launching scheme card and
“every little count” that help poor people in fulfilling their basic needs (Vitali, 2018). For that
instance, after the period of lockdown Tesco make amendments in their strategies of king card in
order to support covid suffering people by donating value which leads to high the price at
minimum level. The organic and immunity booster products must be selling at low prices in
order to support economy as well.
Place: The concept of marketing mix is also put focus on plate and location where organisation
running its business. The Tesco is mainly perform all the operations in UK but has served its
product worldwide. Tesco has many branches and locations which are convenient for people
whether offline retail outlet online website both are effective in reaching to customers. The
company could take advantage these places by serving essential requirements into hospital and
people who are boring team after the lockdown in order to maintain their sustainable at and
provide customers what they are desire for.

Promotion: It is also an integral part of marketing mix , promotional activities keep the
organisation into the eyes of customers and stakeholders so that they get aware timely about new
product, price and offers applied into the organisation. Tesco advertise their products by
launching event advertisement , table funding and social media content. So that, Tesco has an
advantage to make people aware about covid-19 and support them by providing products that is
immunity booster.
People: This factor of marketing mix influence on the people and individuals who contribute
their efforts in making organisation success. Tesco have professional employees and workers
who have gain expertise knowledge and training in order to accomplish business objectives. As
due to the pending make many workers do their job and does not in situation of working the
organisation could fulfil their requirements by giving them work from home and create
opportunities to earn money so that they could fulfil their basic necessity.
Process: The process refers to all the activities and actions organisation take to provide their
customer a convenient service in terms of billing, , guiding and supporting through online
website. Tesco achieve all the process in an effective way as people find the supermarket is
really helpful to fulfil their demand at an ease.
Physical evidence: This factor shows the physical feature of the organisation so that customers
could easily trust on it. Tesco already have attractive super market and a brand name which
customers found it useful and easy to access any product. the more you could do after the period
of lockdown is that they provide all the more you could do after the period of lockdown is that
they provide all the product at a distance and regular sanitizing the store to maintain hygiene.
Implementation, control and evaluation
The country is facing many crisis and the impact of covid-19 in the form of complete
lockdown till June 2021 coma the organisations need to control their all the activities in an
appropriate manner so that they would not like to fulfil demands of customers in an hygienic
way. Nowadays people will not look for attractiveness of product but will majorly focus on the
health concerns and low price strategy. The success could only measure and control as the way
actions according to the plan and procedure. The implementation of marketing strategy could
only possible by a conducting proper market research and eliminating the negative impact of

brexit by involving natural resources and lower down other additional cost from the organisation.
As it is evaluated that, business could maintain its profitability and market competitiveness
again, just by focusing on effective strategies to attract number of people by fulfilling their
concerns and demand at reasonable price level. Also the organisation could support the economy
through sustainable practices which also beneficial to regain market share.
CONCLUSION
The report has concluded that, the pandemic has much impacted on Retail Industry slowing
down their sales and customer base. As, the customer's are seen to change their mind behaviour
by shifting the demand to online shopping. The Retail Industry could take this as a advantage as
well as disadvantage by not operating their online outlet. So that it could also deal with the
opportunity to adopt effective marketing strategy in order to target the market which is the most
suitable for fair trade products. Also the brexit impact on the industry but not on Rapid level as
the retail organisation are become habitual to pay the impact of brexit by stabling their financial
position.

References
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