Strategic Marketing Plan for Tesco's Health Food Launch in Australia

This report provides a comprehensive analysis of Tesco's strategic marketing plan for launching its new organic health food line in the Australian market. It evaluates the marketing mix (Product, Price, Place, Promotion) and its adaptation to the current pandemic situation, emphasizing the importance of health guidelines and online delivery. The report also explores the Customer-Based Brand Equity (CBBE) model, detailing how Tesco can build a strong brand identity and customer loyalty through various levels. Furthermore, it examines the integration of marketing communication methods, such as advertising, social media marketing, and sponsorships, to effectively reach the target audience. Finally, the report discusses key metrics for measuring the success of the marketing strategy, including sales targets, market share, and profitability. This detailed overview provides insights into how Tesco can strategically position its new product line for success in the Australian market.

Strategic Marketing

EXECUTIVE SUMMARY
Strategic marketing is the management of the involvement of the strategic decisions
which helps the business with a current plan that helps the current marketing plan for getting the
maximum results for the organization. Understanding the analysis of the current and the future
internal and external environment and their impacts of the marketing strategy. Strategic
marketing plan is developed for realizing the organizational objectives. Managing the resources
for delivering the strategic marketing plan is helpful for an organization. Continuous
improvement can be improved in marketing through measurement, monitoring and adaptation of
the marketing plan.
Strategic management is becoming the most essential and as well as fundamental concept
in now a days. In this section, it is found that the complex and as well as dynamic behaviour of
managerial environment are maximising that directly create problems for the business of
management. In respect to deal with all such complexities, it is important for the management
that they should use strategical management in order to overcome them in an effective and
efficient manner. The following report is evaluating and examining marketing mix with the use
of effective structure and then use strategic managerial tactics or plan of actions. As on the other
hand, it also covers significance for launching the new goods for selecting to market
communication as their effective and suitable profitable returns to investment.

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Marketing mix, its standardization and adaptation......................................................................4
CBBE model................................................................................................................................5
Integration of communication mix and methods.........................................................................7
Success measurement...................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic marketing is the tool which is used for the marketing disciplines which helps an
organization in achieving organizational goals for developing and maintaining a sustainable
competitive advantage. In this project the chosen organization is Tesco which was founded in
1919 by Jack Cohen at England, UK. For this project the new product line Tesco is introducing
after the global pandemic is organic health food in the Australian market. This project the main
aim is understood the marketing through the 4Ps of marketing mix. This project will also help in
finding the CBBE model which has different components that will be discussed. In this project
the true meaning of IMC and its importance for launching the new products for choosing to
market communication as their best and most profitable returns to investment.
MAIN BODY
Marketing mix, its standardization and adaptation
Marketing mix includes the different areas which the organization needs to
comprehensively focus on marketing plan. It can be said as the term which refers to the common
classification of the 4Ps of the marketing mix which are as follows,
Product :
The product of this organization needs to keep a standard which all the other products of
this company maintains. These standards will include the best quality, proper and promised
quality as per marketing and packaging and other health relation rules and regulations which are
maintained by Tesco in its other products (Budiyono, Muliasari and Putri, 2021). The launch of
this product is during the pandemic which will mean that it will need to adapt to the health guide
lines which are present for pandemic regarding product positioning, quality and also packaging.
This product of the organization will be aiming to target the customers which have become more
concerned about their health since the start of the pandemic.
Price :
The organization Tesco is known for providing the public with affordable rates with most
of its products in its supermarket. There are generally discounts on bulk purchases and other
attractive offers on the products of the company (Nurendah and Rainanto, 2019). Thus, Tesco
needs to keep the price of this product reasonable in order to ensure the business to maintain a
standard. As this product is based on the health of the consumers, specially in Covid-19

pandemic period the price of the product needs to be very reasonable such that even the people
of low income level can use it for their health benefits.
Place :
The success this organization has got is mostly due its large supermarkets. These
products need to be sold in the super markets such a position that the customers can gain access
to its information immediately. As the product is launching in the pandemic period it will be
important for the organization to also have online delivering facility which will help the
customers be able to get the products without getting contact with each other. This is how the
company will adapt to the situation with its organic health food.
Promotion :
For ensuring the success of the new product Tesco needs to keep the standards of the
marketing practices of the business (Su and Chang, 2018). This organization needs to ensure that
this organic health food concept which is planned due to the pandemic is going to reach the
costumers which would allow the products in the management. This new product needs to be
promoted in the place where there are customers which are more concerned about their health.
For this the organization can use digital marketing practices strategically such that the products
can reach the targeted customers of this product.
CBBE model
CBBE is the Keller's brand equity model which is also known as customer based brand
equity model that is utilized for showing the brand success and also be directly attributed to the
customers for being attracted towards the brand. With the help of this model a pyramid is formed
that shows how the business can be able to build strong foundation of its product/brands identity
and how it can form positive relations with customers through the different levels (Liu and et.al.,
2017). For the organic health food product of Tesco the following levels of CBBE model can be
used for showing its success.

Source : What is customer-based brand equity, 2021
Brand Identity :
Customers of Tesco will look at this new product as a health benefit product which will
help them to gain nutritious values for boosting their immunity in the pandemic. Generally the
products of the Tesco are daily groceries products however, due to the pandemic this product
will be way of attracting customers. In order to be more effective in this stage the customers
would need to ensure that more and more customers are aware of this product.
Brand Meaning :
Once the customers of Tesco are aware of the new product it will be the duty of the
organization to educate them more about the product related to its feature, looks, style, durability
and other customers experiences (Mohtasham, Sarollahi and Hamirazavi, 2017). Explaining the
product's performance is considered to be a very effective method in the level. Creating a strong
image of the product in front of the targeted customers would help Tesco to gain more customers
and their trust.
Brand Response :
It will be very beneficial for this organization to understand the response of the customers
their brand. Both types of responses positive or negative will be very useful for this company.
Positive response can be used for promotional purpose and negative response can be used for
understanding the issues in the marketing and the reputation of the product so that it can be
improved.
Brand Resonance :
For this level when the customers are loyal to the product Tesco needs to make more
efforts for improving the customers experience. This will be related to the brand response stage

in which the measurement of the performance is indicated. For this new product coming up with
new strategies and will help the organization in the development of the product's performance to
another level.
The simplicity of this model towards building the customer-based brand equity is a very
effective and great strategy which can be used by Tesco to manage the brand identity of its new
product and also grow with the levels discussed.
Integration of communication mix and methods
Integrated marketing communication is the process which helps in defining the process
which is utilized for the unification of marketing communication. It can be said as the elements
which have public relations, social media, audience analytics and also business development
principles. It is process which allows organization like Tesco to deliver an engaging and endless
consumer experience for their new product. This is helpful for creating clarity and consistency
across all the platforms of this product (Krizanova and et.al., 2019). It is helpful for this new
product because it helps with making strong communication with the customers. Three most
common methods which can help the organic health food of Tesco to communicate better with
the Australian customers are,
Advertising :
This activity of productivity commercial, advertisings for the product is a great way of
communicating with the targeted customers. This become effective due to the content which it
has that influence the customers for purchasing the product. For this product advertising about
the products use for the health benefits against the fight for the pandemic will be a very useful
method for increasing the productivity of the new product. The platforms used for advertising
could be through television, films billboard and other ways of gaining public attention. The
advertisement for this product needs to be very effective and related to the benefits which it
provides to the health.
Social media marketing :
In the current times it is perhaps the most used and popular method of establishing
communication with the customers for the business. This method will be very effective because
since the global pandemic the use of social media has increased effectively (Kumpu, Pesonen
and Heinonen, 2021). This can be considered as the low cost method of promoting the product to
its target customers. The number of users in this platform is very high thus, Tesco will easily be

able to successfully analyse the impacts of the new product one the customers. Tesco needs to
use this platform for spreading the awareness about the product on how to medically effective
this product is going to be for this business.
Sponsorships :
Utilization of sponsorship method will be a very effective way through which the
business will be able to create a strong sense of bond with the Australian customers. In this
method the organization can sponsor events, influencers or health organizations. In order to gain
the observation of the company and also be effective towards the different cost related activities.
This is going to be a very strategic way through which Tesco can target a particular customers
segment for this product. This can help the organization to send a clear message to what is
required.
Success measurement
Different ways in which the success of the marketing strategy of Tesco new product
Organic health food can be measured with the help of the following ways,
Sales Target :
The importance of the marketing of this organization would be to have targeted of sales
for their product which will be the goal. Thus, comparing the results of the sales to the target
which has been established will be a very effective way in which the performance of the
marketing for organic health product can be measured (Mohtasham, Sarollahi and Hamirazavi,
2017). The success of the organization will be to have their sales higher than the target and
difference between this target would be true measurement of success.
Market Share :
The market share of the new product in comparison to its competition is also needed to be
evaluated as it would help the business understand the importance of marketing activities
towards gaining competitive advantage in the Australian Market. In case the market share of the
product is higher than the other substitute product of organic health food of Tesco this, would
show a strong and effective marketing campaign. Having a lower market share would mean the
business would need to improve in the marketing competition (Mohtasham, Sarollahi and
Hamirazavi, 2017).
Profitability :

Increase in the sales would directly increase the profit of the organization. However, it is
essential for the company to study the amount of investments in the marketing it made for
increasing its profitability. This would be the case for the organization when its marketing
strategies would work effectively in the organization.
Return on investments :
The investments made by the organization for the product of this new product can be
considered to be a measuring unit if compared with the ratio of return it provides in the business.
For the business it would be very positive information to measure the return on investment to be
more than the investment amount. It will show the effectiveness and efficiency of the marketing
campaign (Krizanova and et.al., 2019).
If the results of the measurement of success for Tesco is not up to the point or shows a
negative results it would be very useful for the company to improve the marketing techniques.
These measurements are very important for the organization as they provide effective practices.
New marketing techniques would help the company to set a new target meeting which would be
actual achievement of success.
CONCLUSION
With the help of this project it can be concluded that Tesco needs to follow the different
methods of strategical marketing for improving the business for the new product in Australia. In
this project the marketing mix model has been used for discussing the different factors of the mix
and how they can be standardization and adaptation. This project discusses the CBBE model for
analysing the different components which can help them in converting a strong bond of client.
This project helped with the integration of communication mix and methods. In this project
methods like sales target, market share and profitability has been used for the measurement of
the organizational success.
Strategic management plays an essential role in success of the business of management. It
is effective to form efficient tactics that can be utilise by management in respect to extend the
managerial functions and as well as operations. It is important to note that there are several
market situations that should be examine by the management at the time of extending the
managerial operations in an effective and as well as in efficient manner. There is CBBE model
that are also done in the following report by which the business will be capable to prepare

themselves. At last, it cover effective success measurement that are examined so that they are
capable to accomplish the success in the field of the market place by which the business of
management can sustain in the market place for longer period of time.

REFERENCES
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from a destination marketing organization perspective. In Information and
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Mohtasham, S.S., Sarollahi, S.K. and Hamirazavi, D., 2017. The effect of service quality and
innovation on word of mouth marketing success. Eurasian Business Review. 7(2).
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What is customer-based brand equity, 2021. [Online]. Available through:
<https://www.qualtrics.com/experience-management/brand/customer-based-brand-
equity/>