Marketing Analysis of TESCO: SWOT, BCG, Ansoff Matrix and Customer Driven Strategy

This report analyses the strengths, weaknesses, opportunities and threats of TESCO, and provides SMART objectives for the company's marketing plans. It also discusses the marketing mix, BCG matrix, Ansoff matrix and customer driven strategy used by the company. The report concludes with recommendations for TESCO's growth.

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Contents
Executive Summary.................................................................................................................3
Introduction..............................................................................................................................3
Marketing Mix..........................................................................................................................3
Marketing analysis BCG.........................................................................................................4
Marketing developing Strategies............................................................................................5
Customer Driven Strategy.......................................................................................................6
Conclusion and recommendations..........................................................................................7
References.................................................................................................................................7

Executive Summary
The report states the SWOT analysis of TESCO, a United Kingdom based retail company.
Also, the report states the smart objectives the company can opt for their marketing plans in
order to get success and grow in the market. The report below analyses the company’s current
products using the BCG matrix and suggestions for which strategies should be followed to
market their products and services. The report also explains the Ansoff matrix and how its
used in the company for the betterment. The report briefly explains the Segmentation,
Targeting, Positioning and Differentiation (STPD) of the respective company TESCO.
Introduction
Each and every organization need different types of analysis in order to grow and survive in
the market. This is what a United Kingdom based retail company, which is internationally
spread; TESCO is doing. As a result, the company is the top retail business in UK market.
The company offers a huge range of retail products and services to their customers globally.
The SWOT analysis of the company, TESCO states that the strength of the company is that it
is having the best brand image in the international retail market. Also, because of constant
innovation and upgrading in the provided products and services, TESCO is a leading
company. The company is providing a nice customer experience. The analysis also states the
weaknesses of the company. The company does not pay attention towards the food safety
measures. The company is also having inadequate management of their retail inventories.
Along with this the company has some opportunities in the retail market industry. It has the
opportunity to hire more skilled people to manage their inventory due to the market value.
But the biggest threats to the company is its competitors in the market. Also, due to the
pandemic hit the company is not being able to grow its network (Blut, 2018). The company
should be having SMART marketing objectives in order to grow and survive in the market.
The SMART objectives are Specific, measurable, actionable, relevant, and time-bound. All
the objectives the company decide should be very specific, measurable, actionable, relevant
to the business and time bounded. The SMART objectives will help TESCO in expanding its
business and staying the top retail company in the respective industry.
Marketing Mix
The marketing mix refers to focus on the different parts of comprehensive marketing plan. It
helps an organization to analyse and find the best measures to market their product and
services in order to grow more. The four Ps of marketing mix are: -
Product: these are the products and services given by the company. The company should
focus on what kind of products and services are demanded by their target audience and how
and where they would be used by the customers (Lindgreen, 2003). This factor of marketing
mix will help TESCO in identifying the demand of their products and services in market, the
value of their product and services in the competition market and also, what should be the
name, size, colour, etc. and the positioning of the product and services.
Price: this factor helps the organization to finalize the price of the commodity. It
helps TESCO to know the value of their product in the market among the consumers.
Through this factor the company can identify that if the price is affordable for the consumers

or not, also, should there be discounts and offers given at the decided price. It helps in
examining how the company’s price would be compared to the other competitors.
Placement: this factor of the marketing mix is helping TESCO in identifying where
their products and services are demanded. It helps the company in knowing where the
consumers look for the products and services the company is providing. It shows which type
of channels of sales should be used by the company.
Promotion: this is the main factor in marketing mix which if used well can profit the
marketing of the company. It tells where and how should be the promotion of the product and
services should be done in order to reach the target consumers (Stead, 2018). It helps the
company in examining how the competitors are promoting their commodities. It is to identify
what will be the best time to promote their goods and services.
Marketing analysis BCG
The BCG matrix which stands for Boston Consulting Group matrix, is a tool which help the
organizations to analyse the future profitability and prospects of the organization. There are
four quadrants of the respective matrix.
Below is the BCG matrix analysis of TESCO retail company explaining all four quadrants:
Cash cow: these include those business units and products which have high market
share and low growth prospects. These are the market leaders as the generate more of the
cash than they consume. Fresh meat sections are considered cash cow to TESCO as these are
in high demand all across TESCO stores. Also, the fruits and vegetables have a huge share in
the respective company’s revenue. The cash cow is advised to be give more attention and to
be grown more in order to earn more profits.
Dogs: it is considered as a pet. It is the units and products which have low market share and
low growth rates. They are generally considered as cash traps as they have the organization’s
money tied up in them, even if the bring back no money. For TESCO, it is the mobile
segment presenting the dog quadrant as it has an uncertain future (Schawel, 2018). It needs
more investments from TESCO. However, due to the debts in the company, TESCO is

reconsidering the investments for mobile segment as there is no return back coming from this
segment.
Question mark: this is the part of business which has high growth prospects but a
low market share. This is the part of business which consumes more cash but brings back less
in return. TESCO lard can be considered as a part of question mark segment as it is
generating a little cash for the company but do not have any scope for demand in the
consumers(Soegoto, 2021). It is questioning the management whether to continue selling the
commodity or not.
Star: these are the neutral part of the business as they are the units and products which are
generating and producing almost same amount of cash to the organization. One of the parts
for TESCO can be considered as a star which is TESCO bank. The company has not worked
much on the TESCO bank so it is playing the role of star in the company but as the banking
sector holds the power to expand well the company can invest more on this part of the
business. Another star for the respective company is the TESCO finest range as it provides
the premium products to the elite consumers (Martinelli, 2018). It is neither causing losses in
the company nor any profits in the company.
Marketing developing Strategies
Each business requires to grow their goodwill and profits in the market. To do so there should
be the knowledge of the steps to be take and the possible risks in doing so. The Ansoff matrix
helps the business experts to analyse the possible risks in the business and other alternative to
opportunities.
Just like the BCG matrix this matrix, Ansoff matrix also has four quadrants, namely called
Market Penetration (lower left quadrant), Product Development (lower right quadrant),
Market Development (upper left quadrant) and Diversification (upper right quadrant).
Below are the four quadrants of Ansoff matrix explained in context of the TESCO company:
Market penetration: it is important for every business to penetrate the market to grab
opportunities at the time of start. The company, TESCO did the same. The company at first
was a retail business then later on discovered the other related markets and opportunities
there (Alkhatib, 2020). The company later on identified that the consumers needed better and
more of the business’s products and services.

Product development: one of the most important factors supporting the company’s
growth is product development. The company should be developing and upgrading its
products in order to attract more consumers. Tesco has worked and is working towards it by
recognizing the market opportunities and introducing new items. For an instance, the
respective company has begun offering organic food because of the change in the consumers
preferences and taste.
Market development: it is very important to determine the market of a particular
product or service. The company is mainly operating in the UK’s market but as soon as it
grew its business it learnt and managed to identify the scope in Scottish market too. For this
TESCO has undergone many stages of changing its policies, upgrading its strategies and
many more.
Diversification: it deals with a new product or service introduced in a new market. For each
and every commodity offered the company needs to attract a new customer base. The
concerned company which is TESCO was a grocery and retail company initially but it
diversified its offerings later on. Now the company has more to offer to its consumers. It has
two food brands of its own namely known as ‘finest’ and ‘value’ providing good quality food
products (Martinelli, 2018). The company has also diversified itself in the field of beauty and
health products. It helps the company in reducing the collective losses as due to the
diversification, if a product or service fails the company has others to help.
Customer Driven Strategy
Customer Driven strategy may be defined as those strategies which are related to the various
activities of the marketing that assist the company management in fulfilling all the needs and
wants of the customers in a very effective manner. This comprises of specific, precise,
guideline and objectives which company wants to attain. It is very important for the
management of the company to segment their customers in a very effective manner and target
the appropriate segment. In relation to the TESCO, the management of the company examine
the whole market in proper manner and bifurcate the target segment, develop the priority,
take the feedback from customers and meet the need of the consumer by offering the best
quality of product. All these actions assist the company management in increasing the loyalty
of the consumer towards the brand, enhance the firm goodwill and make them more
competitive. Following are the elements of the customer-driven approach which has been
discussed below: -
Segmentation: this aspect is referred to divide the entire market into small segment on the
basis of similarity and related aspects. In relation to the TESCO PLC, the market
segmentation is done by the company management on the basis of age, earning capacity,
educational background, profession, lifestyle and choices. The company most focus on the
young generation and the women (Tien, 2022). This helps the company in targeting the
customers potential manner and leads the firm towards the success of the company.
Behavioural, psychological segmentation are used by the respective company to divide the
market.
Targeting: - targeting may be refer as the process of targeting the specific segment of
audience which assist the company in attaining the higher growth and explore the different

development opportunities. In relation to the TESCO plc, the management of the company
paid focus on the 20- to 55-year-old individuals along with the all type of income group
peoples. The excellent quality of the product and availability of different types of products
assist the company to target the specific market group. They also paid focus on the household
women.
Positioning: this comprise of the different types of aspects such as the high quality
and high price, low variety and high price, high variety and low price as well as low variety
and higher price. In relation to the TESCO Plc, high quality and lower the price policy is
follow by the management of the company in order to position themselves in the market. As
the sector in which the company is dealing is very competitive so this policy assists them in
maintaining the strong organisational position (Vlados, 2019). Different types of promotional
activities as well as campaigns are conduct by the management in order to attract customers
Differentiation: - this may be defined as that aspect of the organisation which make
the company different from the other companies and assist them to enjoy the competitive
advantage over them. In relation to the TESCO plc, the management of the firm give
guarantee of the branded product and the own label product of the firm become the point of
differentiation. In addition to this TESCO management also give free merchandise to the
consumer which make them different from others.
Lavazza Coffee also involves in various activities such as merchandise, coffee beans for
home use that differentiate business from other organisations (Kalogiannidis, 2020).
Organisation also conducts various marketing strategies that helps organisation to reach
wider customers and spread awareness organisational products in market.
Conclusion and recommendations
The above report explained the strengths, weaknesses, opportunities and threats the retail
company, TESCO have. Also, the SMART objectives that should be made in marketing mix
by the company which will help the respective company to grow are mentioned in the report.
Further the report discussed the four types of Ps of marketing mix that will help the company
to market their products and services well in order to grow in retail market industry. The
above report then analysed the business of TESCO with the help of BCG matrix and
explained where should the company focus and invest more on either cash cow, dog, star or
question mark. Furthermore, there was a analysis of business with the help of Ansoff matrix.
Where the four different types of quadrants, namely called Market Penetration (lower left
quadrant), Product Development (lower right quadrant), Market Development (upper left
quadrant) and Diversification (upper right quadrant) were discussed. Then there was a
explanation given about the costumer driven strategies used by the respective company,
TESCO, that were segmentation, targeting, positioning and differentiation.

References
(Books and Journals)
Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A
meta-analysis. Journal of retailing, 94(2), pp.113-135.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the
balance right. In Social Marketing (pp. 29-43). Psychology Press.
Schawel, C. and Billing, F., 2018. Ansoff-Matrix. In Top 100 Management Tools (pp. 31-33).
Springer Gabler, Wiesbaden.
Martinelli, E.M. and Tunisini, A., 2018. Customer integration into supply chains: literature
review and research propositions. Journal of Business & Industrial Marketing.
Tien, N.H., 2022. Business analysis for Dat Xanh real estate group based on BCG matrix.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Kalogiannidis, S. and Mavratzas, S., 2020. Impact of marketing mix strategies effective
product development issues in MNCs/Retail. International Journal of Business
Marketing and Management (IJBMM), 5(12), pp.118-125.
Alkhatib, B., Business Strategy-A case Study of TESCO.
Lindgreen, A. and Hingley, M., 2003. The impact of food safety and animal welfare policies
on supply chain management: the case of the Tesco meat supply chain. British Food
Journal.
Soegoto, F.A., 2021. Product Development using SWOT Analysis. International Journal of
Entrepreneurship & Technopreneur (INJETECH), 1, pp.1-10.