Market Analysis and Strategy Implementation for Tesco

This report covers the market analysis of Tesco, including market size, competitor analysis, macro and micro factors, customer analysis, and stakeholder analysis. It also outlines the key strategic marketing objectives for the campaign and covers the key areas of the marketing and communications mix by using the RACE model.

MG529 STRATEGIC
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1. Market analysis.......................................................................................................................3
2- Strategy implementation covering key areas of communication & marketing mix and
RACE model for digital campaign planning...............................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic marketing refers to the process that uses in order to have the marketing
principles in order to achieve the company’s gaol by maintaining and developing the competitive
advantage. This report is based on the Tesco which is the British multinational company based
on selling the groceries item and having its headquartered in Welwyn Garden City, England. The
report will outline the market analysis of the company which includes market size, competitor’s
analysis, macro and micro factors, customers analysis and stakeholders analysis. Further it will
organization key strategic marketing objectives for the campaign which includes reason for
campaign, market opportunity, target audience and general message. At last this report will cover
the key areas of the marketing and communications mix by using the RACE model.
TASK
1. Market analysis
a) Market size: Market size is the area of the market that used to specify the number of
potential customers that the company used to sell its products or services in the market
(Cheng and et.al., 2019). The market size is determined by having the potential target
audience in the market. As Tesco is the leading grocery store in the United Kingdom it
has over 25 per cent of the market share. The organization holds 28.4% of the overall
market in the UK. By having the biggest retail store it used to have big market size which
helps the organization to have earned the good profits.
b) Competitors’ analysis: The competitive analysis is basically the strategy which involves
the major competitors of the company in order to have good marketing tactics
(Verasophon, 2019). This analysis will help the company to know about its negative and
positive aspect that used to provide them an opportunity to grow in the market. The
competitors of Tesco are Sainsbury’s, Asda and Morrison’s. These are the four main
supermarkets in the UK. The organization also competes with the convenience stores
which used to gain the reputation as customers tastes are changing on the continuous
basis. Tesco used to compete with the competitor’s by applying the different marketing
strategies as it used to provide the quality products, affordable prices and best store
locations.

c) Macro and micro factors affecting organization: the micro factors includes the SWOT
analysis and the macro factors includes the PESTLE analysis of the company which are
as follows:
Micro factors
Strengths: The strength of the company is that it used to have the cost-based and
differentiation- based approach according the range of customers. It used to attract the
price based and high- income customers (Soekapdjo and et.al., 2018).
Weaknesses: Having diversification in the many areas it used to face many challenges in
the market. The rules and procedures of the company towards the employees has been
changed which may affect the profitability of the company.
Opportunity: The organization can start the online market and make their products
available online which increases the profits of the company.
Threats: With the happening of the Brexit the organization has no more sales with the
European countries which decrease the profitability of the company.
Macro factors
Political factors: With the happening of the Brexit the government of the UK has
imposes the various new laws and policies. These new policies may affect the
profitability of the company (Hajizadeh, 2019). As increase in the tax rules will increases
the prices of products of the company.
Economic factors: The organization should focus on the prices as a price has a great
impact on the sales. The prices of the products should be decided by having the inflation
or deflation in the market. As it used to sale the food items it has increased its profits in
the years of pandemic.
Social factors: These factors are related with the customers in the market. The
organization should prepare the health and diet conscious food and other products which
are safe for the customers (Christodoulou and Cullinane, 2019). The organization got
success in order to sell and produce the organic food products. This has attracted the
customers and customers are now shifted to have the organic products. The company is
adopting the changes in order to adopt the demand for the organic products.
Technological factors: The organization is experimenting with the various types of
factors which help the company to have the success. The company has done the

partnership with the amazon in order to sell their products online. The company has
invested in the amount of technologies in order to produce faster products in the market.
Legal factors: Tesco was accused in order to have the age and gender discrimination in
the organization. This has decreased the profitability of the company in the year 2016.
But now the company used to follow the rules and regulations and does not discriminate
the customers. By following the legal policies it has maintained the profitability of the
company.
Environmental factors: The Company has taken the various environmental factors in
order to have improvement in the market. The organization has announced the second
part of its doing the Remove, Reduce, Reuse and recycle programme in order to have the
cleanliness in the market.
d) Customer’s analysis/ personas: Customers analysis is the crucial and important part in
the business or in marketing plan. It sued to identify the target customers, find the needs
of the customers and then see that the products satisfy the wants of the customers or not.
It includes the income of the customers, age range, lifestyle, geographic location,
purchase history (Goldberg, Jansen van Rensburg and Van Staden, 2019). The
organization must focus on these factors in order to launch new product or services in the
market. As the company used to provide best quality of products and having the best
location in the market which makes the customers to buy products easily.
e) Stakeholder analysis: Stakeholder’s analysis is the process of having the systematic
gathering and used to analyses the qualitative information about the stakeholders in the
organization (What is stakeholder analysis?, 2022).
Stakeholders Analysis
High Power, Low Interest
 Customers
 Sponsors
High power, High interest
 Executive of company
 Owner of company
 Stakeholders
Low power, Low interest
 System Admin
 Customers
High interest, Low Power
 Supplier
 Developer
 Internal users

Key Strategic marketing objectives campaign: The key strategic marketing objectives
campaign of the Tesco used to focus on achieving the customer satisfaction and used to
maximise the profits. The primary objective of company is to have the customer
satisfaction and ensures the profitability.
f) Reason of Campaign: The marketing campaign use to promote the products by using the
different types of media by using television, radio, online platform and many more. The
reason f having the marketing campaign is to have the customer attention and increases
the awareness in the market and attracts the new customers. By having the customer
focus, the company used to do marketing which increases the profits of the company. The
company uses hoardings, ads and charitable events in order to promote their products and
services.
g) Market opportunity: The market opportunity refers to the opportunity that is adopted by
the company in order to accept the sales that has been qualified in order to produce the
goods and services. It used to define and analyses the kind of business planning which
used to emphasize on the future opportunities by evaluating the technological changes,
financial situations, competitive advantages, etc. The company has the big market
opportunity in order to sell their products. Due to happening of the COVID the company
can sell its products online which use to maintain or increase the profits of the company.
h) Target audience: The target audience is the group of people which are identified in the
market which used to purchase the products in the market on the regular basis (Gallagher
and et.al., 2020). The target audience used to share the similar demographics which are
not limited to age, gender, location. Education, etc. The company has the target audience
as all age groups people are used focus on their diet so the company can earn the good
amount of profit as they have good target audience.
i) General campaign messaging: The marketing campaign message used to define that how
the company communicates with its target audience and about their new ideas in order to
make the campaign. In order to make this campaign it used to convey the message that it
used to make the customers attract in by having the new and innovative products in the
market. In this common used to tell the unique selling proposition and also tell about the
benefits in order to purchase the products and avail services.

2- Strategy implementation covering key areas of communication & marketing mix and RACE
model for digital campaign planning
Race Model-
It is quite essential for leaders and managers in chosen company to consider the key
stages of this concepts, because it may aid to develop or design the best digital campaign, in term
of driving their concentration toward considering varied terms (A New Season Brings New Pr
Opportunities, 2022). These terms are research, action planning, communication and evaluation.
Channels-
By referring to Race Model, it is important for management to conduct specific research
based on methods and approaches that they may utilize to grow rapidly with wide consumer base
(Marzuki, 2021). For example, under the research term, they may focus on finding and
determining the effectiveness of appropriate marketing models. It may enable them to
concentrate on identifying market trends that individual buyer prefers to follow and recommend
others to do so.
Marketing mix is one of those strategic models that encompasses different types of
elements or key areas such as product, price, people, place, promotion, process and physical
evidence. These components may management cover under their strategy, for example, they may
consider the quality of products, and hire skilled applicants who are able to add more value in
that. Furthermore, they may also consider appropriate and specific pricing tactic that aid to gain
the attention of target audience. For purpose of using other elements, management may take
approach to select particular location in the UK, through which they may provide satisfactory
items and services to customers according to their needs.
Action planning-
It can be said that Instagram is the best digital social media channel in the recent time
that they may utilize along with Facebook and YouTube. It is one of those social media
channels that varied people has been utilize for multiple reasons as some used that to generate
awareness about product or services, and to collect information about new or innovative item
that a firm attempt to offer in the market (Varma, Dhakane and Pawar, 2020). Along with this
channel, it may utilize Facebook as well, which play significant role in organizational success
context. It can be said that under action planning concept, marketer may take decision to utilize

above three channels, because each channel allow them to take pleasure of interacting with and
retaining profitable customers.
Communication mix is another effective model that manager and other stakeholders in the
TSCO may take into their consideration, for purpose of consumer’s engagement and their
retention with supermarket. In current tactic, they may add key elements of this framework, such
advertising, direct marketing, personal selling and public relation as well as sales promotion. By
referring to this concept, management may take action to utilize advertising and sales
promotion methods. These approaches may drive their attention toward using the best marketing
or advertising tools that help to gain the attention of those who are able to promote venture
globally and gain the attention of more potential consumers.
Communication-
With utilization of all three elements, or approaches, they may successfully interact with
each buyer who tends to ask some questions and collect information about new exciting offers of
TESCO. It is one of those opportunities that supermarket may grab in effective manner and take
pleasure of gaining benefits from it in bulk.
Timing/when-
It may implement current strategy within 6 months that in turn provide desire outcomes
to management in TESCO.
Text/copy to be utilized-
They may utilize patent and other IP tools to protect venture strategy and other things
from those who may utilize that without taking approval.
Budget-
Resources Cost £
Market research 2000
Recruitment 15000
Digital and traditional marketing 25000
Training and development 2000
Technology implementation 3200
Online registration 1600
Total 48,800

Evaluation as utilization of Key performance indicators-
In the world of business, there are different forms of KPIs and approaches related to that
accessible, that organizations utilized to measure their businesses performance and effectiveness
as compare to rivalry brands. In case of TESCO, management may consider benchmarking and
ROI key performance metrics that aid to determine success factors and loopholes, which may put
direct impact on its performance and profitability (Gräve, 2019). For example, with
Benchmarking tool, manager may make a clear comparison between their brand and other
supermarket strategies and plans, which may give them key information about what they can do
better than rivals. They may take right action to measure the success of their new strategy by
using ROI in term of analysing the gap between previous and recent years’ profitability. It may
drive their attention, toward developing effective tactics and approaches utilization that help to
obtain desire outcomes in of the efforts they put.
Recommendations-
 TESCO can continually engage with its target customers in an always on digital
environment by using strategic advanced digital communication technology. For
example, its marketer can take approach to utilize Instagram to communicate and engage
with all the customers, who are capable to gain the attention of more toward purchasing
brand products via conducting word of mouth promotion.
 It will give marketer chance to ask and resolve consumers queries related to products,
which play vital role in success of supermarket in term of increasing customer base,
profitability and productivity. With currently discuss channel TESCO can achieve its
mission and aim in effective and appropriate manner.
CONCLUSION
From above analysis, it has been concluded that by developing strategic plans and strategies,
organization has gained competitive advantages. It has utilized its strengths that enabled
management to overcome the negative impact of certain external an internal factor. Along with
these benefits, firm has gained more advantages while running venture into retail industry. It has
retained and gained the attention of potential consumers, by using the best and most effective
digital marketing tools as well as channels. Furthermore, by summing up above discussion, it has
been summarized by utilizing benchmarking and other KPIs metrics; firm has improved its
organizational performance and increased productivity.

REFERENCES
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Online
A New Season Brings New Pr Opportunities. 2022. [Online]. Available Through: <
https://ecallis.com/insights/pr/new-season-brings-new-pr-opportunities/>
What is stakeholder analysis?. 2022. [Online]. Available through: < https://project-
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