Strategic Marketing for Tesco: Market Analysis, Campaign Strategy, and Roll-out Plan

This report discusses Tesco's strategic marketing objectives, including market analysis, SWOT and PESTLE analysis, RACE model, target audience, campaign strategy, roll-out plan, budget, and KPIs/metrics. Tesco aims to promote their organic products and increase sales by targeting health-conscious customers.

Strategic Marketing

Contents
INTRODUCTION...............................................................................................................1
TASK 1...............................................................................................................................1
Market Analysis .................................................................................................................1
Market Size....................................................................................................................1
Competitors analysis......................................................................................................1
Macro & Micro economic forces affecting the organisation (using relevant models)
market size and trend data,............................................................................................2
Customer analysis/person..............................................................................................3
Stakeholder analysis......................................................................................................4
Identification of the organisation key strategic marketing objectives for the campaign.4
Campaign strategy.............................................................................................................4
Strategic goal of the campaign.......................................................................................4
Market opportunity..........................................................................................................5
Target audience.............................................................................................................5
General campaign messaging.......................................................................................5
RACE model...................................................................................................................5
Marketing roll-out plan....................................................................................................6
GANTT chart activity .....................................................................................................6
Budget............................................................................................................................7
Key Performance Indicators (KPIs)/Metrics...................................................................8
Recommendations.........................................................................................................9
CONCLUSION...................................................................................................................9
REFERENCES................................................................................................................10

INTRODUCTION
Strategic marketing can be defied as the use of the principles of marketing in
order to promote the goods and services of the company. For this report, Tesco has
been undertaken into the account (Ellis and Derera, 2019). Tesco is a British
multinational consumer goods company which was founded in the year 1919 by the
Jack Cohen. Company's headquartered is in London, England. It is one of the leading
grocery stores across the UK. In this report, there will be the discussion on the market
size of the company. Along with that competitor analysis, SWOT analysis and Pestle
analysis will be evaluated. These models helps the organisation to find out the internal
as well as external factors that affects the operational activities at the workplace. After
that customer analysis and stakeholder analysis will also be undertaken into the
account. Campaign strategy will also be evaluated of the organisation. RACE model will
be undertaken into the account. At the end of the report, GANTT chart will be prepared.
TASK 1
Market Analysis
Market Size
Tesco company is one of the bigrgest retail organisation that is present in the
country of UK. They have captures a huge share in the market of the country and
producing grocery products into the market. They are approximately operating their
operations in approximately eleven countries which makes them more competitive in the
marketplace. It is the leading brand that is carrying out their operations in the grocery
segment. They have captures almost twenty seven percent of the market share in the
country of the UK. They are one of the most established brand which has set up
valuable brand image in the eyes of the customers.
Competitors analysis
Porter's five forces model can be undertaken in order to analyse the level of
competition in the marketplace. It is mentioned below in relation to the Tesco:
Competition in the industry: There is a very huge competition in the market of
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the UK related to the grocery business. Tesco faces so many competition from major
companies such as Unilever, Sainsbury's etc. There is a high degree of risk of this
factor.
Supplier power: Power of suppliers are not so high because there are large
number of sellers that are present in the market (Guercini, 2020). There are various
companies present in the market which are offering consumer goods to the market.
Buyer's power: There is a high power with the customers in the marker because
they have various options present in the market of the UK related to the grocery and
consumer goods. Tesco has less power in order to manipulate the prices of the
products.
Threat of substitute: There is a high threat of this factors because substitute of
the Tesco products are easily available in the market.
Threat of new entry: New business can easily comes in the market. Grocery
market is the example of perfect competition and new companies can easily come and
start their business as a grocery business.
Macro & Micro economic forces affecting the organisation (using relevant models)
market size and trend data,
SWOT analysis
Strengths
One of the main strength of the Tesco is
that they have captured strong market
share in the country of UK. They are well
established which are busy in providing
consumer goods to the consumers in the
market.
Another is that they offer innovation in the
products to the customers. It helps them in
attracting large number of customers.
Weaknesses
Tesco do not have skilled employees
through which they can execute effective
technologies at the workplace.
Another main weakness that organisation
faces is of the quality control in the
products.
Opportunities Threats
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One of the main opportunities that Tesco
can grab is that they can move their
business into the international boundaries.
Another main opportunity that they can
implement new techniques of production in
order to generate more productivity at the
workplace.
One of the main threat the organisation
faces is of the level of competition that is
present in the market. It affects the
profitability level of he business.
Another main threat that the company
faces is use of effective technology at the
workplace.
Pestle Analysis
Political factors: This means that to which extent government of the country
affects the operational activities of the business. In relation to Tesco, they easily carry
put the operations as there are no such kind of pressure from the government.
Economic factors: Tesco company always focus on to generate more job
opportunities in the marketplace. Management departments of the company ensures
that they contributes to the GDP of the country.
Social factors: Tesco critically analyses the needs and wants of the customers
in the marketplace (Mills and John, 2022). They consider the values of the society.
Technological factors: They always focus on to use effective technologies at
the workplace so that they can generate more productivity at the workplace.
Legal factors: This means all the laws and legislations in order to regulate the
operational activities of the business.
Environmental factors: Tesco carries out their operational activities by
considering that they should not harm the environment.
Customer analysis/person
Customer analysis cam be defined as analysing the behaviour of the customers
in order to attract them towards the products and the services of the company. In
relation to the Tesco, managers and leaders of the company effectively analyses the
target audience which can prove to be much beneficial for them. Marketing
departments of the company effectively analyses the group of customers and target
them in the marketplace. They mainly identify the target group of customers on the
basis of their wants and demands. Managers of the company critically analyses the
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needs and wants of the customers in the market and according they provide them
goods and services.
Stakeholder analysis
This analysis is mentioned below in relation to the Tesco:
High interest, high power: It consists of the owners and the investors of the company.
In regards to the Tesco, they stakeholders have high power as well as high interest.
High power, Low interest: Society and government comes under this factor
(Murugiah, 2019). They have high power but low power in the Tesco operations.
Low power, High interest: Employees of the organisation comes under this factor.
They have low power but high interest with the company.
Low power, low interest: In this factor, customers comes under this as they have low
power and low interest with the company.
Identification of the organisation key strategic marketing objectives for the campaign.
There are several marketing objectives of the campaign that are described below:
One of the main objectives in relation to the marketing is that they want to promote the
awareness of the campaign in the public.
Another main objective of the campaign is that they want to increase their sales by
introducing organic products into the market. They want to launch variety of organic
products into the market through which they can increase their sales into the market.
Campaign strategy
Strategic goal of the campaign
Managers of the organisation wanted to introduce range of organic products into
the market so that they can increase the standard of living of the customers. They have
started to put more nutritional values in the products especially for the health-conscious
customers in the market of the UK. It is one of the main goal of the campaign that they
wanted to promote the healthy products into the market through which they can attract
those group of customers which are more health conscious (Yeh, 2019). With this they
wanted to increase the sales of the business by promoting healthy products into the
market.
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Market opportunity
Tesco has the opportunities in order to capture large market area by introducing
healthy product into the market. It will facilitates them to attract those customers who
are more healthy conscious. They are planning to introduce range of healthy products
into the market so that they can increase their sales in the marketplace.
Target audience
Management department of the Tesco will effectively analyses the market and he
audience to whom they want to offer their organic products. As these products are
related to all the health conscious customers in the market (Pierce, 2021). So in order to
make this campaign successful in the market they will target that group of customers
which are more conscious towards their health and who wants to take enough
nutritional values in their bodies. Through the medium of the campaign, they will
effectively target that market which can give them more opportunities to generate more
revenues as well as profits in the market.
General campaign messaging
Main message of the campaign is that they wanted to increase the awareness about
their organic products into the market. They wanted to teach about the nutritional values
that they have introduced in the products (Sahaf, 2019). It will ultimately help them to
attract large number of customers when they effectively conveys the message to the
customers in the market.
RACE model
It is effective model that used in order to engage the customers with the brands
or the products and the services. This model is described below in relation to the
campaign of the Tesco:
Reach: It is one of the main factor of the model in which organisation focuses on to
promote the awareness of the brand into the market. In regards to the campaign of he
social media, they should use social media through which they can attract large number
of customers towards their organic products which they are launching in the market.
Act: It is the another step of this model which emphasis on the leading the actions of
the specific campaign or plan that organisation wanted to carry out. In regards to the
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Tesco company, they will carry out the campaign by executing into the market
(Schiavone and Simoni, 2019). It will help them to promote the awareness of the
products into the market.
Convert: It is the beneficial stage for the organisation as they convert the audience to
the customers of the company. Managers of the Tesco company effectively influence
their customers to pay for their organic products.
Engage: In this part of the model, Tesco company will build good relations with their
customers. It will help them to engage them towards the organisation in the long-term.
Marketing roll-out plan
Channels to be used
In order to launch the campaign, Tesco company will use various kinds of
channels through they can promote the organic products in the market (Phillipov, 2019).
Some of the channels that the organisation will use are mentioned below:
Social media: It is the main channel that marketing department of the company will use
in order to promote the values of their products in the market. They wanted to launch
organic products in the market and for that reason they should use social media
channels like Instagram. Facebook, Twitter etc. through they become able to target
large number of customers in the market.
Build website: In order to make the campaign more successful in the market, they will
also used websites in order to advertise their new launches in the market. It will help
them to effectively carry out the marketing of the campaign as it can facilitates them to
engage large number of customers towards their campaign.
GANTT chart
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Budget
Following is the budget for the campaign of the Tesco company:
Particulars Amount (In £ )
Event venue 10000
Stage formation 1500
Publicity 8000
Decorations 5000
Section formation 2200
Help desk formation 3800
Stationery supplies 5000
Speakers 7000
Food and Beverage 12000
Light and water 8000
Security 3900
Refreshments 6000
Other services 5600
Total 78000
Project cost baseline:The cost base line for campaign are as follows:
Particulars I II III Total
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Event venue 5000 3000 200 10000
Stage
formation
500 500 500 1500
Publicity 2000 4000 2000 8000
Decorations 1500 1200 2300 5000
Section
formation
600 600 1000 2200
Help desk
formation
800 1000 2000 3800
Stationery
supplies
1000 2000 2000 5000
Speakers 3000 2000 2000 7000
Food and
Beverage
5000 5000 2000 12000
Light and
water
3000 2000 3000 8000
Security 1400 1200 1300 3900
Refreshments 2000 2000 4000 8000
Other
services
0 0 5600 5600
Total 25800 24500 27700 78000
Key Performance Indicators (KPIs)/Metrics
There are various key performance indicators that can be used by the
organisation in order to analyse the performance of the campaign that they are planning
to launch in the market. Some of the KPI's that Tesco can use are as follows:
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Customers: It is one of the effective KPI's that can be used by the organisation through
which they can analyse the performance of their campaign (Mills and John, 2022). This
metrics will help them to analyse the number of customer that are coming towards their
campaign. Through this also get to know about the customer retention towards the
organic products of the company that they are launching through campaign.
Revenues: It can be the other most effective metrics that can be undertaken by the
organisation in order to analyse the performance of the campaign in the market. It will
help them to analyse the revenues that they will generate after launching of the organic
products into the market (Hanlon, 2019). Through this they get to know about the level
of incomes they are generating by selling out their organic products into the market.
Recommendations
There are various that can helps them in engaging the customers towards the
organisation. Some of the points that Tesco should always consider in order to engage
their customers are:
Marketing department of the company can regularly post on their social media channels
about the new launchings (Varadarajan, 2018). It will help them to engage the
customers with the organisation values.
They can launch online campaigns through which they can promote various aspects of
the society.
Another main element that the organisation should consider is that they should regularly
takes the feedbacks from the customers. It will help them to create effective brand
image in the eyes of the customers.
CONCLUSION
Form the above report, it has been analysed that strategic marketing helps the
organisation to use effective channels through which they can promote goods and
services in the market. In the above report, there has been the discussion on the market
size of the chosen organisation. After that competitor analysis has also been
undertaken into the account. Pestle asn SWOT analysis has also been undertaken into
the account. These facilitate the organisation to analyse their strengths and
weaknesses and also the factors that can affects the operational activities of the
organisation. Customer and stakeholder analysis has also been evaluated. At the last
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stage of the report, there RACE model and GANTT chart has been analysed in relation
to the campaign.
REFERENCES
Books and Journals:
Ellis, D. and Derera, E., 2019. Strategic marketing for social enterprises: nexus of the
two domains. In Strategic Marketing for Social Enterprises in Developing
Nations (pp. 1-30). IGI Global.
Guercini, S., 2020. Editoriale: The actor or the machine? The strategic marketing
decision-maker facing digitalization. Micro & Macro Marketing, 29(1). pp.3-7.
Hanlon, A., 2019. Digital marketing: strategic planning & integration. Sage.
Mills, A.J. and John, J., 2022. Revisiting brand origin: expanding the strategic portfolio
of brand-level attributes. Journal of Strategic Marketing, pp.1-18.
Mills, A.J. and John, J., 2022. Revisiting brand origin: expanding the strategic portfolio
of brand-level attributes. Journal of Strategic Marketing. pp.1-18.
Murugiah, S., 2019. Astro and Maxis ink strategic marketing partnership to offer bundled
broadband with content. The Edge Markets. pp.1-1.
Phillipov, M., 2019. Supermarkets, television cooking shows, and integrated advertising:
New approaches to strategic marketing and consumer engagement. In Case
Studies in Food Retailing and Distribution (pp. 255-265). Woodhead Publishing.
Pierce, D., 2021. Attracting Enrollment: How to Use Strategic Marketing to Boost
Enrollment. Community College Journal, 91(5). pp.22-27.
Sahaf, M.A., 2019. Strategic marketing: Making decisions for strategic advantage. PHI
Learning Pvt. Ltd..
Schiavone, F. and Simoni, M., 2019. Strategic marketing approaches for the diffusion of
innovation in highly regulated industrial markets: the value of market access.
Journal of Business & Industrial Marketing, 34(7). pp.1606-1618.
Varadarajan, R., 2018. Innovation, innovation strategy, and strategic innovation. In
Innovation and strategy. Emerald Publishing Limited.
Yeh, H.Y., 2019. A Study of Strategic Marketing Analysis on Entertainment Complex-A
Case of E7PLAY.
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